Financial Residency

Buying a home is a big decision. It's one of the biggest purchases that you are ever going to make in your life, and it's the #1 error or issue that causes financial challenges for people. Everyone is susceptible, including physicians. In this episode of the Finance For Physicians Podcast, Daniel Wrenne talks to his colleague, Jennifer DeLorbe Quire, a Certified Financial Planner CFP®, about home-buying decisions. Topics Discussed: • Do's and Don'ts: How to make sure you stay on the right side of the tracks • Wrong Path: Approaching decision without big-picture plan in place • Right Way: Prioritize, plan, and identify purpose of what's most important • Timeline: Don't be pressured or rushed into buying a house; there's other options • Proceed with Caution: How one decision affects absolutely everything else • Need vs. Want: Justifying emotions with logic - spending more than you should • Cash Flow: Home costs add up, calculate budget, and build in a margin • How much should you spend on a house? Plan for what needs to be saved, what's most important, and what's left over Links: How Much Should Physicians Spend on Their Home? The Complete Guide To Physician Mortgage Loans All-In Home Costs Calculator The Key Process Behind Using Money To Live Better Lives with Jennifer Quire Hire or Fire Your Financial Advisor with Dr. Jim Dahle and Alan Moore The White Coat Investor - Should I Sell My House to Pay Off My Student Loans? Jennifer Quire on LinkedIn Contact Finance for Physicians Finance for Physicians https://www.reddit.com/r/whitecoatinvestor/comments/15i7i44/10kmo_mortgage_california_regrets/

In this episode, John from Contract Diagnostics answers a question about the commonality of severance packages in physician contracts. He explains that severance packages are not typically found in standard physician contracts. However, termination clauses are common, allowing either party to terminate the contract without cause, given a certain notice period. If a physician gives a 90-day notice but the employer asks them to stop working after 5 days, the contract may stipulate that the physician should still be paid for the full 90 days. The specifics of how and what they are paid can vary and depend on the contract terms, including aspects like benefits, bonuses, and repayment of any upfront costs like relocation or student loans. John also mentions that severance packages are more likely to be seen in administrative roles that blend clinical and executive duties, but not typically in a purely clinical physician role. In cases of partnership, there may be other forms of compensation related to accounts receivable or payables based on the partnership setup, but these are not necessarily severance packages. Finally, John suggests that while it might be rare, it is possible to request a severance package in certain situations, such as a private equity transition where you're not allowed to be kept on, or if you were promised partnership but it didn't materialize. For any further questions, John invites listeners to reach out to Contract Diagnostics through their website to book a free 15 min call at contractdiagnostics.com

Today Jon talks about the importance of negotiating a contract, even if it's for a short-term. To book a free 15 min call go to contractdiagnostics.com

Many people wonder if it is a good thing to pay a lump sum to pay down their loan. If you do that, your bank may allow you to do two things. You can simply continue to make the previously determined monthly payments, which will allow you to pay off your loan early. Or you can ask the bank to recalculate based on the new owed balance and give you a lower monthly payment for the duration of your loan. To request a free copy of Doug's book Hippocratic House: Do No Harm When Purchasing Your Physician Home, go to www.HippocraticHouse.com.

Dr. Gelerie Stenbakken started investing in real estate in 2010 and has been able to leverage her cash flow to purchase multiple properties since that time. Not only has she been able to replace her income as an anesthesiologist, but she has gained significant equity in each of her properties due to appreciation. She talks about analyzing properties to determine if she wants to add them to her portfolio, managing her STRs from afar and leveraging past purchases for future investments. You can check out Dr. Stenbakken at Instagram.com/WinningWithREI or view her properties at www.RentGrandLake.com or www.RentSmokyMountains.com.

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: https://financeforphysicians.co/ https://financeforphysicians.co/2021/08/12/what-you-need-to-know-about-estate-planning/

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: https://financeforphysicians.co/ https://financeforphysicians.co/2021/08/12/what-you-need-to-know-about-estate-planning/ https://financeforphysicians.co/contact/

Jon talks about group contract negotiations. To book a free 15 min call go to contractdiagnostics.com

Today Jon talks about a question he got on side gigs and if they're permitted. To book a free 15 min call go to contractdiagnostics.com

It's important to do your due diligence and shop before you apply for a loan. Start early to make sure you don't have surprises when you find the home of your dreams. Doug also talks about getting a preapproval to make your offer even stronger and ways to ensure your credit doesn't take a dive by doing things you "think" should help your credit. If you want to learn more about Doug Crouse or get a free copy of his book, check out www.DougCrouse.com.