Brian Canes sent me a question via Twitter, and I couldn’t quite answer it in 140 characters, so I decided to do a blog post about it since I thought it illustrated some important points. His question was: "How do you calculate a % funded for a 529 account given an account balance and projected college tuition assuming no future contributions?" In essence, Brian is asking “Am I done saving for college?” ...

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I am the one obsessed about finances in our house. Updating our monthly net worth spreadsheet and ensuring we are not paying mindless monthly fees for things we don’t use (i.e., magazines, Netflix, etc.). I allocate our investment portfolios and ensure that we have paid into our IRAs and 529s annually. It is not that my wife is not interested, it is more that I am very interested. So why would ...

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As a personal finance coach, I have learned that the most important aspect to wealth accumulation is having good money habits. Good habits create good results, and good results are what everyone wants. We were not born with any of our habits; we learned them somewhere along the way. That’s good news, because that means we can easily learn new habits. After all, we didn’t have any trouble learning the habits ...

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I truly believe that the business asset class is important in supercharging the race to financial independence.  While many dream of starting their own Google or Amazon, I find myself much more interested in the small, less scalable business.  The kind that spins off some revenue, builds experience and know how, and is fun. Although I have owned multiple small businesses (mostly medical practices and real estate), the one that I ...

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I am so excited to write this post. It’s been a long time coming, but in fact, it’s come years sooner than I had even dared to hope. Now, I can finally say that I am truly financially free from medicine and I wholeheartedly believe that anyone can achieve this. Setting the scene First, a little background. My wife and I are both physicians, and we’re both about six years out of training. We’ve ...

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Money is great.  It provides security, options, and freedom.  If you work hard, practice relative deprivation, and save enough money to become financially independent, you will have reached a commendable milestone. However, financial independence means nothing if you don’t have your health.  It doesn’t matter that you have $5 million if you aren’t around to enjoy it, or if your health is so poor you can’t travel, start a business, teach a class ...

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The primary benefit of municipal bonds compared with other bonds is that the interest earned is typically exempt from federal income taxes. In general, income from municipal bonds is also exempt from state income taxes if you live in the state where the bond is issued. Calculating the equivalent return of municipal bonds Municipal bonds will typically have lower returns than an equally risky corporate or government bond. However, the interest on corporate and ...

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We’re going to address the most common question I see. Should you pay off debt or use your money to invest? Over and over again it is asked, always with slightly different details. 95% of the time, the answer is a simple “It depends.” So today, we’re going to talk about what it depends on. I’ve written about this topic before, but it has been six years. I ...

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I recently posted a graph of my net worth since I started tracking it in 2014 on Twitter. Despite becoming an attending in 2012, I did not track my net worth early on. As you can see, it has been a slow and steady climb to a positive net worth. I posted this, and the White Coat Investor stated this is a good case to discuss one house, one ...

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I have been helping doctors with their personal finances for a long time. I recently realized that there is a single statement, if doctors would learn to use it, that would change their lives. It is very common for me to encounter doctors who are in over their heads financially, struggling with debt, and living paycheck to paycheck. They have a high income, but never seem to have money left over ...

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