Let me share a story about Dr. Sarah Mitchell.
Dr. Mitchell, like many of us, started her career with a resident’s salary, which was around $40,000 per year. After completing her residency, she received an enticing offer as an oncologist with an annual salary of $350,000.
However, instead of succumbing to lifestyle inflation, Dr. Mitchell made a financially savvy decision.
She committed to living on an annual budget of $60,000 for the first …
For most doctors, hiring a financial advisor who understands their needs is important when making investment decisions. We are all busy, and most don’t have the knowledge to make good investment decisions.
However, some have the time, and get educated about investing, and prefer to be more involved in making their investments.
A self-directed brokerage account may be one good option for you if you wish to get more involved in your …
Many of us own our practices and the buildings in which we work. Well, this is one way to understand investing in REITs.
Real estate investment trusts (REITs) are investment vehicles that cover many sectors, including health care and many other industries, such as storage facilities, commercial real estate, and many others. For doctors seeking investments that provide income, REITS may offer one alternative.
Of course, with all investments, discussing this option …
I can’t believe it is the last quarter of 2023 already.
As the end of the year approaches, many doctors are busy with patients trying to get in for procedures as deductibles get met. It’s also a crucial time to consider what’s going to happen when you file your taxes in 2024.
Making strategic investments before the year’s end can significantly reduce your tax liability and potentially increase your wealth in the …
In times of economic uncertainty and recessionary storms, the significance of cash flow becomes an indispensable lesson for experienced investors. While market turbulence may seem daunting, focusing on cash flow can act as a robust financial lifeline, providing stability, resilience, and unparalleled opportunities to weather the storm and emerge stronger on the other side.
Cash flow, simply put, is the lifeblood of any investment. It represents the net income generated from …
Meet the doctors: Dr. Emily Carter and Dr. Carlos Martinez.
Dr. Carter is a primary care doctor, and Dr. Martinez is an allergist. Both doctors are committed to their medical careers. Dr. Carter earns about $180,000 a year, while Dr. Martinez earns about $400,000 a year. However, Dr. Carter is taking a proactive approach to her financial security, thinking early on about taxes, investing, and time. Dr. Martinez is enjoying his …
When it comes to personal finance and wealth-building, the phrase “time in the market beats timing the market” is often touted as an unshakable truth. The concept suggests that consistently staying invested in the stock market, regardless of market fluctuations, is the surest path to long-term financial success. However, as with any financial advice, it’s essential to critically examine its validity and consider the nuances involved. Let’s delve into the …
Are you solely relying on your income as a doctor? You might feel safe operating like this, but what if there’s a way to make your financial future even brighter?
In this fast-paced financial age, having more than one income stream is no longer just a smart move—it’s crucial to securing your financial future.
In this article, I’ll uncover the exciting potential of diversifying your income in today’s medical landscape from a …
Money, a topic often shrouded in secrecy and discomfort, has the power to shape our lives and influence our opportunities. Whether we like it or not, finances play a pivotal role in our personal and professional endeavors. However, our fear of talking about money can become a significant hindrance, limiting our potential for growth and success.
In many ways, discussing finances has become a social taboo. We avoid it at family …
Every business, regardless of type, size, or structure, has one primary reason: to make profits. In economic theory, every business is successful exactly to the extent that it does something others cannot. Business profitability rises to the extent that universal business principles are adopted and integrated into the medical practice business.
Business growth, endurance, and increasing profits over time are possible only when business management principles and marketing strategies are embedded …
During my tenure as a practicing physician, I’ve grasped that each patient necessitates and is entitled to comprehensive and unique follow-up care. Fascinatingly, this rule also relates to us, the contracted physicians. I’ve realized that a physician’s employment contract isn’t static; it is subject to deliberate and incidental alterations.
The involvement of attorneys in contract negotiation is imperative, but their influence tends to recede after the contract …
Did you know that according to research, teachers are more likely than doctors to become millionaires? How is that possible? Well, some of it has to do with the social pressure we face. However, a lot has to do with many of us thinking that because we are highly educated, we can also be effective financial advisors for ourselves. The reality is that for most of us, this is …
As doctors, we all know that when we care for an informed patient, the conversation is more meaningful, and the patient can make a more informed decision about their care.
The same is true in the investing world. We are all very busy, but it is important we understand some basic financial terms so when we are either picking our own stocks or mutual funds or talking with a financial advisor, …
Investing in mutual funds can be a great investment choice for doctors who often have little time to analyze individual stocks. This is especially true for financial planning for early-career physicians. Mutual funds immediately provide diversification. But have you ever wondered what the letters after the mutual fund mean: A, B, C, or I? Well, picking the right class of a mutual fund can have a big impact on …
It was at the very beginning of the fourth year of medical school that Kristen and I had our first kid. So, we decided to get life insurance. I didn’t know who to turn to at first, but then I was directed to an insurance agent at a well-known mutual fund company who happened to be my friend’s brother. As I sat down, he asked if I was healthy. To …
Do your friends assume you are a “rich doctor,” and thus you feel pressure to meet that expectation?
Do you want to reward yourself after all the years of training and stress with some nice luxury toys?
Doctors often find themselves caught between two choices: living a luxury lifestyle and securing their financial future. It’s a delicate balance that requires careful planning and strategic decisions. But it doesn’t have to be an …
Do you know what most financial advisors say about doctors and how they manage their money?
It is not pretty.
I have been in those conversations, and stereotypical doctor stories come out.
Impulsive purchases, lack of knowledge, and easy to manipulate into poor investments are just a few of the things I have heard.
Now, in our defense, we spend ten or more years studying to become a doctor and, one day after residency, …
Feeling burned out is often a function of financial fragility. How is that possible when most doctors earn incomes in the top 1 percent?
I am both a physician and involved in finance. As physicians, we often start our careers under significant debt, start our careers at an older age, and start with less savings than many of our friends who are professionals in other industries. Starting our careers at this …
As the world becomes increasingly digitized and economic realities continually shift, there has been a growing conversation among medical professionals regarding investing, particularly in digital assets like Bitcoin. The appeal of Bitcoin is substantial, especially in an era marked by high inflation rates. Bitcoin is the first “programmed” money that relies on math and code. It has an open public and simple code and has never been hacked. This is …
America’s medical debt problem is out of control, with collection agencies holding around $140 billion in unpaid medical bills.
Some experts think the amount of medical debt may actually reach $1 trillion and affect nearly 1 in 3 Americans. That’s because not all medical debt appears on credit reports. Moreover, many people pay their medical bills with their credit card and then are forced to have those unpaid …
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