Finance for Physicians

If you are employed and work for a hospital system or plan to work for one in the future, do you have access to a 401(k), 403(b), and/or 457(b) retirement plans?    In this episode of the Finance for Physicians Podcast, Daniel Wrenne talks about how different retirement plans interact collectively. Can you max out both your 403(b) and 457(b) plans? Topics Discussed: Tax shelter limits for 401(k), 403(b), and 457(b) retirement plans Maximum for Employees: 401(k)/403(b) is $20,500 combined per year 457(b) is $20,500 separate limit Retirement plans with mandatory and required contributions 457(b): Governmental or non-governmental plan, which is better and why? Links: Contact Finance for Physicians Finance for Physicians

If you already have or plan to set up or start a health savings account (HSA), how do you make sure it is efficient to build wealth and possibly invest?   In this episode of the Finance for Physicians Podcast, Daniel Wrenne talks about how to best manage HSAs. Topics Discussed: HSA: Best tax shelter that exists as a vehicle to put your money into HSA vs. Flex Spending Account (FSA): What’s the difference? HSA Strategy: Rule #1: It’s best not to spend out of your HSA Rule #2: If using HSA to build wealth, make sure to invest cash Rule #3: As you have healthcare expenses, save the receipts When to start using your HSA? Balance equals future expected healthcare costs HSA Beneficiaries: Make sure to identify spouse or dependents When is the best time to fund HSA? Max out sooner than later Cafeteria Plan: Better to funnel money through employer HSA for matching funds Switching Providers: Keep up with transfers and minimize number of HSAs Links: HSA Bank Lively Why the HSA is a Hidden Gem Contact Finance for Physicians Finance for Physicians  

Burnout is something that occurs in all professions and to all kinds of people, but especially physicians. The burnout statistics are concerning.   In this episode of the Finance for Physicians Podcast, Daniel Wrenne talks about using financial planning to prevent physician burnout. Your finances and having a financial plan at your disposal is one of the best tools to fight burnout. Topics Discussed: What is good financial planning? Goal is to get an ideal life Financial Vitals: Money can and does have a huge effect on how life turns out Burnout Causes: Job issues, professional stress, and personal/financial factors Burnout Symptoms: Depression, overworked, lack of confidence, stress, etc. Self-care Solution: Takes time, confidence, and money to work on burnout issues Links: How to Help Combat Physician Burnout (White Coat Investor) The Key Process Behind Using Money To Live Better Lives with Jennifer Quire Financial Vitals Check Part 1: Clarify Values Financial Vitals Check Part 2: Save, Spend, Give Ratio Financial Vitals Check Part 3: Net Worth Financial Vitals Check Part 4: Safety Net Check Financial Vitals Check Part 5: Investment Plan Financial Vitals Check Part 6: Taking Action The Dangerous Pursuit of Financial Independence Breaking Away From Traditional Primary Care How Perfectionism In Medicine Spills Over Into Your Personal Finances Finding Light In Life’s Darkest Times Improving Medicine With Vulnerability Contact Finance for Physicians Finance for Physicians

How was the U.S. economy before the war between Russia and Ukraine started? How have things changed and what will they look like in the future? Expect a ripple effect! In this episode of the Finance for Physicians Podcast, Daniel Wrenne talks about how the Russian and Ukraine War will affect financial planning and economic adjustments in the United States and other countries. Topics Discussed: 9% Inflation Rate: Changes associated with war do not play a role, yet Work: Inflation should not be too big of a deal for those with a job/income 8% Unemployment Rate: Extremely low—people are working, plenty of jobs Interest Rates: Will continue to be increased to keep inflation under control Vanguard Total Stock Market: Index fund gauge indicates modest downturn Supply and Demand: War sanctions and restrictions result in prices increasing Economic Seasons: Difficult to predict what’s going to happen in the future Reverse Globalization: Economic impact due to isolated sections and countries Actions to Consider: Diversify portfolio, stay the course, take protective measures Links: Contact Finance for Physicians Finance for Physicians

What are the big financial decisions presented in the Bible? Christian or not, it’s important to understand these fundamentals and let them be your guide when it comes to wealth and happiness. In this episode of the Finance for Physicians Podcast, Daniel Wrenne talks about key lessons and takeaways he has observed from the Bible, specifically from Timothy, Matthew, Luke, Malachi, the Corinthians, and Proverbs. Topics Discussed: Lesson #1: Get your priorities in order, but money should not be first on the list Hope in Wealth: Does not equal happiness or sadness, but is temporary Lesson #2: God looks highly upon giving; focus on doing good, being generous Higher or Not: How does giving rank in your financial priorities? Lesson #3: Make plan to give, save, pay off debt for haste to not lead to poverty Bible: Discourages material focus and encourages giving, saving, paying off debt Links: Contact Finance for Physicians Finance for Physicians

Would you rather work for your income or get paid while you sleep? Before you buy into passive income, be aware of what you are getting into and understand the trade-offs. In this episode of the Finance for Physicians Podcast, Daniel Wrenne talks about the pros and cons of passive income for potential clients in medicine. Oftentimes, it can cause more harm than good. Topics Discussed: What is passive income? How is it different from active income? Too Good To Be True: Why doesn’t everyone buy into passive income? Two Forms of Income: Earn income from labor/time or assets/investments Return on Investment (ROI): How you get income without earning it Stocks/Mutual Funds: Most common forms of investing to earn income passively Starting your own business involves higher return potential but greater risks #1 Issue: Decision to pursue passive income with sole reason is to make money Time Commitment: What do you want to do with your time? Live your ideal life Links: Are You Thinking About Investing In Real Estate Syndications How to Use Real Estate to Build Wealth Contact Finance for Physicians Finance for Physicians

Passive Investing: What is it and how can you use what you learn about it to your advantage? Conduct research to gain knowledge, but consider conflicts of interest. In this episode of the Finance for Physicians Podcast, Daniel Wrenne talks about passive versus active investing in the market to own assets. How do they compare and how are they different? Topics Discussed: What is passive investing? Own entire market with minimal expenses What is active investing? Beat the market by picking winners, avoiding losers Time Period Research: Passive strategy works better and yields better results Individual and Work Retirement Plans: Basic foundation of passive investments What to look for? Fund name, expense ratios, and investment timelines How to invest in passive vehicle—buy ETF/mutual fund/direct indexing Links: Contact Finance for Physicians Finance for Physicians

There are quite a few financial things to think about, especially when expecting your first child. Prepare, plan, and make it a priority! In this episode of the Finance for Physicians Podcast, Daniel Wrenne talks to Heather Lovallo, Certified Financial Planner or CFP®, about preparing for having a baby. Heather has two children, Daniel has three kids, and expect more at the Wrenne Financial Planning firm! Topics Discussed: Disclaimer: Having children should not be and is not a financial decision When is the right time financially to have children? Never Common Concerns: Education savings, medical/care expenses, and buying gear Medical Expenses: Know what insurance covers, type of birth (home or hospital) Healthcare Savings: HSA, FSA, and HRA can be used for out-of-pocket costs Ongoing and One-time Expenses: Diapers, food, clothing, and childcare Childcare: Follow tax rules when paying contractors and household employees Education Funding: Kids are expensive and get more expensive as they age Life Insurance/Estate Planning: Get it done to feel secure, have peace of mind Links: Are You Saving Enough For Education How To Help Your Children Maximize Their College Education HSA vs. FSA vs. HRA - Healthcare Account Comparison What is a 529 Plan? LegalZoom Contact Finance for Physicians Finance for Physicians

Do you want to invest in real estate? How do you do it? There are many different ways to invest in the real estate landscape. Have you considered real estate syndications?  In this episode of the Finance for Physicians Podcast, Daniel Wrenne talks to Hugh Baker, a Certified Financial Planner or CFP®, about how to invest in the real estate market. Topics Discussed: What is real estate? Rentals, multifamily complexes, real estate syndications Why invest? Leads to passive income, but it’s not always as easy as expected Do you already own real estate? Average person does via funds and assets Real Estate Exposure: Easy way to buy, rent, and sell with very little expense What is an accredited investor? Someone who meets baseline requirements Risk for Higher Return: Type of person interested in real estate syndications Different Alternatives: Real estate syndications versus private real estate funds Where to find deals? Credible sources (White Coat Investor, physician blogs) How to measure success on deals? Depends on your goal Links: Vanguard Real Estate ETF (VNQ) The White Coat Investor Passive Real Estate Academy Course About Schedule K-1 (Form 1065) Contact Finance for Physicians Finance for Physicians

Are you on track for retirement? Where are you at, what’s most important, and where do you want to go? Are you saving enough income at this point in time to become financially independent?  In this episode of the Finance for Physicians Podcast, Daniel Wrenne talks about how to know if you are saving enough money for retirement. Check your financial vitals against your financial plan. Run the numbers! Topics Discussed: Retirement Rules: Follow percentages of income or gross income before taxes? False Assumptions: Everyone has same tax brackets, goals, values, priorities Starting Line: Create, consult financial plan for values, goals, resources, priorities Ways to calculate and run the numbers: Rules of thumb Linear return projections Monte Carlo analysis When? Run the numbers today and adjust over time to accommodate changes Improve Efficiency: Maximize tax shelters, backdoor Roth IRAs, financial plan Links: Contact Finance for Physicians Finance for Physicians