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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My mother, the accountant, threw out 10 million.  An I just took it.  Accepted it.  Calculated the number of years, and I was off.  But it didn’t feel right.  So I asked my financial advisor.  A few weeks later and after much information was solicited, I was given 85% chance of my money lasting through retirement.  He went on and on about Monte Carlo and all sorts of other rubbish, and ...

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A few months ago, I hired a contractor for a home improvement project.  He didn’t know that I was a physician at the time, and we came to a mutually agreeable price. Fast forward a few weeks, when we realized that we needed an extra, seemingly small, addition to our project.  By this point, we’d gotten to talking, and he’d learned that my husband and I were both physicians. To my surprise, ...

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Recently, I made the announcement that I am financially independent from medicine. As a quick recap, I’ll just say that I no longer have to rely on my physician’s salary as my primary source of income thanks to my other ventures, and yes, passive sources of income. Since then, the number one question I’ve received is this: “So, when are you going to retire?” Retirement as a way of life Well, the fact is ...

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The other day, I read a proposal about the government (taxpayers) giving newborn babies anywhere from $20,000 to $50,000 to help fund their future.  I am not going to comment on the politics of this proposal, but it did get me thinking about how to set your kids up for financial success. Give your kids a good home If your kids grow up in a safe, stable, supportive home, they are more ...

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Life insurance is one of the key foundations of a good financial plan. In this article, we will discuss the basics of life insurance. Why life insurance? While you might feel invincible and 100% healthy, as physicians we all know patients or colleagues who were diagnosed with terminal cancer or died suddenly because of an accident or health condition. If someone is dependent on your income (usually your spouse or children), then life ...

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Q. Should I get back into the stock market? I am 11 years out of residency and have made many of the mistakes you have listed on the site. The primary one was getting OUT of stocks entirely with the 2008 crash. Oi. Now I have all this cash and some bonds, and I want to reinvest, slowly, and think the market is overvalued.  I hate the thought of getting back ...

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In my last post, I told my story of how I got out of medical school with only $18,000 of debt. By the time I left residency, I had that whittled down to $6,000 at 3% interest. Then during the next three years after starting my practice, I had accumulated almost $500,000 of new debt. Initially, I didn’t think anything of this new large debt, after all, I ...

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I loved my Prius. I’m not a car guy.  I’m really not.  But when my Prius started to fail after 120K miles, I took an active interest in picking my new mode of transportation.  I had a few caveats.  I was driving 100 miles a day.  I wanted either a hybrid or fully electric car.  And I needed something safe for the snow.  Preferably four-wheel drive. My first instinct was to get ...

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I’ve been thinking about mortgages and savings a bit more than usual lately, and with good reason. My father recently retired from his nearly 40-year career as a physician, and in trying to be a good son, I’ve been helping him prepare for the transition financially. This involved taking an account of what he has saved up, his investments, and his expected cash flow. For him, the future that many ...

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