Finance for Physicians

You deserve what you want right now, especially when it comes to building or buying your dream home. Immediate gratification - that’s the American way. How do you decide if that makes sense and how do you make it happen financially? In this episode of the Finance for Physicians Podcast, Daniel Wrenne talks about how to finance big or small home projects. There’s always something to do. How do you fund your home projects, renovations, additions, and improvements? Topics Discussed: Typical Thought Process: Be aware to avoid cultural pulls and temptations Reasons for Financing: Low interest rates, good investment, emotional drivers Catalyst: When a reasonable small home project turns into an illogical big one Solution: Create/consult financial plan, priorities, values, goals to be objective Financing Factors: What’s your cash flow situation? How much equity is in your house? What is your debt-to-income ratio? Ways to Finance Home Projects: Hardest: Save up or invest cash Easier: Home equity line of credit or construction loan Easiest: Home equity loan, cash out refinance, personal loan, credit cards Links: DIY Planning Guide Contact Finance for Physicians Finance for Physicians

Are you saving enough for retirement, college, or student loans? What is the best way to accomplish your goal of college/education savings? What are your options? IRA, Roth IRA, or 529 plan. In this episode of the Finance for Physicians Podcast, Daniel Wrenne talks about how to save for your children’s or anyone’s education. The best route to take if you know you’re going to need to save money for education is a 529 plan. Topics Discussed: What is a 529 plan? Tax qualified, tax preferential plan created by the IRS Tax Benefits: Money you’ve already paid tax on can be put in 529 plan Pros: Ability to grow asset/have interest on asset without being taxed on growth Cons: Separate accounts create complexity, cost components, and tax penalties How much is your state’s 529 plan tax deduction worth? Depends on state Two Types: Most states offer advisor-sponsored or direct 529 plans Inflation: Don’t project whether college education costs are going up or down Financial Position: Are you going to actually use funding/income for education? Qualified Expenses: Make educated guesses of what and how much is needed 529 Plan: How much to save and when to withdraw for education goals/priorities Links: How much is your state’s 529 plan tax deduction really worth? How To Help Your Children Maximize Their College Education Contact Finance for Physicians Finance for Physicians

If you don’t do anything or take action by following up on your financial vitals plan, it’s not of any value to you. The purpose is to make progress and improve sooner by staying on track and measuring success. In this episode of the Finance for Physicians Podcast, Daniel Wrenne talks about steps to move forward by planning, checking, and tracking your financial vitals. Happiness is when your values are in alignment with your actions. Topics Discussed: Goal: Come up with a game plan based on an individual’s vitals and customize it Financial Vitals Recap: Part 1: Clarify values Part 2: Save, spend, give ratio Part 3: Net worth Part 4: Safety net check Part 5: Investment plan Annually or As Needed: How often to check if financial vitals are in alignment Other Financial Vitals: Consider education funding and business-related items Key Takeaway: Create plan to take action for checking financial vitals Links: 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 Contact Finance for Physicians Finance for Physicians

Concerns over Public Service Loan Forgiveness (PSLF) continue. Will it pan out or not? Have you thrown in the towel already and refinanced to private student loans? It may be a big mistake to pull the plug on it completely. Do what you need to do to be approved and fully forgiven. In this episode of the Finance for Physicians Podcast, Daniel Wrenne talks to Indranil Sen-Gupta, a physician and faculty member for the University of California at Irvine School of Medicine. Indranil shares how he received PSLF. Now, he is done with PSLF and his balance is zero! Topics Discussed: PSLF vs. FFEL: Be aware of loan programs and requirements PSLF Qualified Payment Plans: Pay-As-You-Earn (PAYE) Revised PAYE (REPAYE) Income-Based Repayment (IBR) Income Contingent Repayment (ICR) COVID and Cash Flow: Admin freeze led to qualified zero-dollar payments PSLF or Job (or Both): What should come first? What’s more important? Qualified Employer: Keep/update form, certify/track payments, match accounts Timeline: Getting forgiveness is happening, just takes time to achieve In Retrospect: Pay little to zero first year and minimize adjusted gross income Links: Indranil Sen-Gupta Public Service Loan Forgiveness (PSLF) PSLF Waiver Federal Family Education Loan (FFEL) Program PSLF Limited Waiver Opportunity Huge Benefit For Physicians Contact Finance for Physicians Finance for Physicians

Do you have an investment plan in place? You may have more than one fund, such as for retirement or charitable giving. Maybe you want to save or invest money for college or a vacation home. In this episode of the Finance for Physicians Podcast, Daniel Wrenne talks about having an investment plan (also known as an investment policy statement) that is organized based on a specific purpose or goal. Topics Discussed: What is an investment plan? High-level but simple summary/outline of goal What’s the benefit of working with a financial planner vs. doing it yourself? What are the key parts of an investment plan? Purpose and Responsibility Investment Philosophy Summary of Review Process Summary of Accounts/Asset Allocation Target Links: 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 Contact Finance for Physicians Finance for Physicians

Life doesn’t always go as planned. It’s full of twists, turns, and curveballs. Cover all your bases in the event of a worst-case scenario because it can come out of left field. You never see it coming or know when something could happen. In this episode of the Finance for Physicians Podcast, Daniel Wrenne talks about performing a safety net check as part of your financial vitals. Topics Discussed: What is a safety net check? Checking coverage for worst-case scenario When to plan for unexpected, unplanned events? Now—before it’s too late What are the odds? Based on large groups of people, not individuals What’s your other financial vitals? Safety net coverage takes more than assets Important Info: What to document/track for life, disability, other insurance policies Who is covered (insured)? You, your spouse, children, or beneficiaries Estate Plan: Who needs it and why? Indicates who handles and gets what What are worst-case scenarios? Unexpected death, disability, or emergency Is your safety net adequate? If not, increase or decrease coverage, reserves Links: What You Need To Know About Estate Planning Financial Vitals Check Part 1: Clarify Values Financial Vitals Check Part 2: Save, Spend, Give Ratio Financial Vitals Check Part 3: Net Worth Contact Finance for Physicians Finance for Physicians

If you have clarified your values and determined your saving, spending, giving ratio, the final financial vital to measure is your net worth. What is your net worth? What do you track with your net worth? How do you track your net worth? What can you use it for and why is it beneficial? In this episode of the Finance for Physicians Podcast, Daniel Wrenne talks about how to calculate, track, and increase your net worth and decrease your debt. Topics Discussed: Net Worth = Total Assets - Total Liabilities Adding to assets or subtracting debt increases net worth Negative Net Worth: Part of the medical career track for physicians Compound Interest: Exponential growth when earning interest on your interest Net Worth: Changes over time, track it to monitor inefficiencies and progression Debt-to-Income Ratio: How high is your debt relative to your earning potential? Values/Goals: Net worth should depend on your plan for what’s most important Links: Monthly Net Worth Tracker Template Contact Finance for Physicians Finance for Physicians

Once you clarify your values, financial vitals are used similarly to health vitals to quickly check if you are making progress toward your goals and what’s most important to live a better life. In this episode of the Finance for Physicians Podcast, Daniel Wrenne talks about how to measure specific financial vitals based on your values. Topics Discussed: Save, Spend, Give Ratio: Percentage-wise, where is your money going? True Spending: Budget is always underestimated; total spending is more realistic Strategy: DIY vs. work with financial planners, others to calculate numbers Key to Success: Quick financial vitals checks measured against your values Links: Contact Finance for Physicians Finance for Physicians  

Physicians and their patients know that vitals are measurements of the body’s most important basic functions. Checking and tracking vitals indicate how your health is now and maybe in the future. Vitals are a progress check to prevent potential problems. In this episode of the Finance for Physicians Podcast, Daniel Wrenne talks about checking your financial vitals. He discusses how medical vitals are similar to financial ones because they tell you how you’re doing and what goals to set to improve your health and well-being. Topics Discussed: Goals, Values, Priorities: Measuring medical/financial vitals depends on individual Why are values so important? Key factors between living a good life or not Clarify Values: What’s most important and what are your goals? Why? Net Worth Vital: How important is building wealth and financial independence? Cultural Norms: Immediate gratification, materialism, perfection, bigger is better Chart Path: Balance what’s most important and what's pulling you in different directions The Three Questions: If you were financially secure, how would you live your life? If time to live is limited, what will you do with the remainder of your life? If you have only one day left to live, what will be left undone and missed? Fourth Question: Years from now, how well have you done financially, and what has to happen for that to occur? Links: George Kinder’s Three Questions Dan Sullivan - The Strategic Coach Contact Finance for Physicians Finance for Physicians

How do you live out your values in day-to-day decision making, especially when you operate on autopilot? What standards and steps can you take to be more intentional? In this episode of the Finance for Physicians Podcast, Daniel Wrenne talks about how to make the right decisions regarding finances and other aspects of your life. Align your values to guide your actions and decisions. Topics Discussed: Values: What is most important? Are you aware of your decisions and actions? Right thing to do? Is this a good decision? Consult values before decisions Good Decisions: Worst part is when you justify it with logic and reason Steps and Processes: Preparation, experience, and expertise are mandatory Step 1: Take time to make a decision Step 2: Sleep on a decision Step 3: Share idea with people you trust and ask for advice/feedback Step 4: Big picture summary - where do you want to go, what’s important? Links: Will Congress End Backdoor Roth Conversions? Contact Finance for Physicians Finance for Physicians