So a new year is upon us! 2017 was a fantastic year for investors in general, so I hope it was a prosperous one for you. I believe that 2018 will be a great year as well and filled with multiple opportunities for everyone. A quick wish: May your 2018 be filled with much joy, great health, and hefty growth of your passive income streams. Now back to the post – One ...

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I was browsing the Bogleheads forum last night, and my eyes naturally gravitated to the thread titled “What is FI if you love your job?” The short answer is that FI is financial independence. Nothing more, nothing less, and it doesn’t look any different if you love, hate, or feel indifferent towards your job. The long answer, after learning that the man asking the question is about ten years ...

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Donald Trump signed the Tax Cuts and Jobs Act of 2017 late last year. Americans and corporations are feverishly reading news summaries of the bill, trying to figure out how the new bill will affect their taxes. In this post, I will summarize the major provisions of the bills as they apply to medical residents and fellows. I’ll then go through three case scenarios to see how the tax bill might ...

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Recently, we learned how lifestyle inflation can be toxic.  In case you’re wondering, there is a time and place to inflate your lifestyle.  However, you can’t just do it whenever you want.  You have to earn it.  Here’s how it works. The basics If your goal is financial independence, I recommend that you live on half your income and save the rest. This means that if you’re making around $50,000 per year, ...

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I am continually running into people who are confused as to what constitutes debt when we are doing a makeover with their spending plans. Wikipedia defines debt as money owed by one party, the borrower or debtor, to a second party, the lender or creditor. I have clients who list out their accounts payable as personal debt. For example, they see the dentist, and he is going to send a $200 ...

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Never was I used to having money to invest; it seemed like I always found a way to make income equal expenses.  Such was the life of the young, naive 20-something-year-old who had no idea how to build assets. Going into my 30s, I began to read more, study more, and inquire more when it came to finances.  This led me to finally figure out what this investing thing was all ...

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The recently passed Tax Cuts and Jobs Act is controversial, to say the least. However you feel about it though, the fact is it’s here to stay, affecting everyone by 2018. However, in looking at our own situation as a two physician couple (purely from the medical income standpoint), at first glance, it seems as though our taxes would actually go up. In addition, if it’s going up for us, it surely ...

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When I described my drawdown strategy in early retirement, I stated we will “sell from the taxable account first.” I also plan to collect quarterly dividends from my index funds, but if Vanguard were Burger King and I could have it my way, I’d hold the dividends and take bites out of my account only as needed. When I discuss the downsides of dividends, note that I am ...

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When you browse finance-related websites, it doesn’t take long for you to see ads that claim that they can help you make money, fast.

“I’VE BEEN ABLE TO WIN ON 90% OF MY TRADES WITH THIS PROVEN STRATEGY.” – TYPICAL AD #1 “LET ME SHOW YOU HOW TO EARN 25% RETURNS, GUARANTEED.” – TYPICAL AD #2 “SIGN UP FOR MY NEWSLETTER AND I’LL SHARE WITH YOU THREE STOCKS THAT ARE READY TO EXPLODE.” ...

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Personal finance isn’t complicated.  In fact, if you do just six things right, you will become financially successful.  Let’s keep it simple and get started. 1. Earn a decent income. If you don’t make any money, you will never get ahead financially.  Forget about winning the lottery, getting an inheritance, or expecting the government to subsidize your lifestyle.  The only way to build wealth is to work. Jobs with a decent income include computer ...

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