Money Checkup with Anjali Jariwala: Recent Episodes
Anjali Jariwala
What’s your financial pulse? Join FIT Advisors for a semi-monthly checkup appointment as we discuss the many facets of financial well-being - from foundational money management to the unique personal finance scenarios of physicians and business owners. CERTIFIED FINANCIAL PLANNER(TM) and CPA Anjali brings you in-depth conversations with field experts that reflect FIT Advisors’ commitment to inclusiveness and fresh voices in the world of finance. Together, Anjali and her guests cover all the areas your money touches - taxes, real estate, long-term savings, entrepreneurship, and much more. Get to know Anjali and the hands-on approach she takes to improving your financial health.
Joe Biden ran on a number of proposed tax law changes during the 2020 campaign. Several of these proposals temporarily took effect as part of the American Rescue Plan, and several others have been introduced in Congress. Note that, historically, major tax reforms seem to pass towards the end of the year, with changes applying to the following year. In this episode, I’ll summarize some of the proposed changes.
Also, Money Checkup will be taking a hiatus after this episode. This summer I’m focusing on renovating our home and working on a lifelong dream of mine: Publishing a children’s book. I’ll be blogging about our renovation all summer, so if you’re interested in following along, sign up for my newsletter here.
While playing professional football, Jedidiah Collins realized that he didn’t know how to manage money. Despite earning a high salary, he’d spend most of his paycheck right after he received it and didn’t know how to plan for the future. With encouragement from his family and mentor, he began to learn about personal finance, eventually studying for the CFP® exam during the offseasons. After a few years of working in wealth management, Jedidiah realized his passion was helping people who were just beginning their financial journeys.
"Rich is having a lot of money today," Jedidiah says. "Wealth is how many tomorrows I don't have to worry about money."
Today, Jedidiah runs Your Money Vehicle, an online certification course in financial literacy. His hope is that students will learn basic principles of personal finance and put them to use throughout their lives. https://fitadvisors.com/financial-literacy-jedidiah-collins
Physician contracts can be very complex, and often physicians turn to attorneys for help reviewing them during the negotiation process. Poonam Lakhani, an employment and business attorney with The Prinz Law Firm, works with physicians to do just that. She reviews contracts to understand compensation structures, non-compete clauses, termination clauses, whether there are specific steps that can lead a physician to become a partner, and more.
“My goal is to make sure that as much is defined as possible, because when there’s vagueness in an agreement, that’s where disputes occur," she says.
Poonam is based in the Chicago area and is a member of the South Asian Bar Association of Chicago. She has been named a Super Lawyers Rising Star every year since 2016. https://fitadvisors.com/contract-review-for-physicians-with-poonam-lakhani
Dasarte Yarnway founded his own wealth management firm at age 24 out of a desire to help people create multi-generational wealth. At Berknell Financial Group, he encourages clients to think deeply about their relationship to and beliefs about money, then works alongside them to create a unique, holistic plan that reflects their values across all aspects of their financial life. Then, he helps clients use their wealth to invest in themselves, their families, and their communities.
“How do you create that better life when no one’s telling you what the rules are to this system?… If they had a compass, how could that change the trajectory of their financial life?”
The child of immigrants from Liberia, Dasarte is passionate about making financial planning more accessible to everyone. https://fitadvisors.com/episode-59-designing-your-wealth-with-dasarte-yarnway/
Tracey Bissett works with business owners to help them understand their financials, manage their cash flow, and set pricing in a way that ensures they earn a fair salary. Though Tracey believes it is essential for business owners to know their numbers, she doesn’t believe anyone should feel shame because they don’t — and she works with her clients to understand where those feelings come from and develop strategies for addressing them.
“I don’t see how you can actually hit your goals for your business without knowing your numbers.” Tracey operates her firm, Bissett Financial Fitness Inc., from Toronto. She is also a professor at Centennial College’s School of Business. https://fitadvisors.com/managing-your-business-cash-flow-with-tracey-bissett
In this episode, US Bank loan officer Christina Razzi (NMLS# 162739) walks us line by line through a loan estimate. She outlines what each number means, which ones vary from bank to bank or from state to state, and which are estimates that will change as you get closer to closing.
Here is a sample loan estimate that you can use to follow along: https://www.consumerfinance.gov/owning-a-home/loan-estimate
For more detail, visit: https://fitadvisors.com/how-to-read-a-loan-estimate
I recently had the opportunity to join former Money Checkup guest Brent Lacey on his podcast, The Scope of Practice. We talked in detail about tax planning for 2021 and beyond. I hope you enjoy this bonus episode!
For more details and to learn more about The Scope of Practice, visit: https://www.thescopeofpractice.com/podcast-episode-40-how-to-maximize-your-tax-savings-in-2021-anjali-jariwala-ceo-of-fit-advisors/
A few years ago, one of Mac Gardner’s clients approached him. She served on the board of a children-serving nonprofit, and she asked if Mac could create some financial literacy materials for the kids the organization served. Mac did — and he learned along the way that many kids have very little exposure to the basics of personal finance. He created The Four Money Bears to help instill in kids those basic principles.
“There are really only four things you can do with money: Spend it, save it, invest it, and give it away. Those are the four building blocks of financial literacy.” Mac also runs a company, FinLit Tech, that focuses on building bridges between financial literacy and financial technology. He lives in Tampa with his family.
Katrina Ubell, MD worked for a decade as a pediatrician. After years of big fluctuations in her weight, she lost 45 pounds in a year and has been able to keep it off since. With her physician husband’s encouragement, she left her practice to launch her own business, where she focuses on helping other physicians understand their food habits so they can make permanent changes to their lifestyles.
“Swapping out different actions will only help for so long, because you’ll still be thinking those thoughts and feeling those feelings that don’t support you.” More: https://fitadvisors.com/weight-loss-katrina-ubell
Less than 2% of global assets under management, across mutual funds, hedge funds and other asset classes, is managed by women and people of color, according to a 2019 Knight Foundation report. After a decades-long career in investing, University of Rochester Senior Investment Officer Rob Rahbari knew statistics like these. So in 2020, when the university’s president challenged every university department to recommit to diversity, equity and inclusion, Rob and his teammates developed an open-source list of funds owned and managed by women and people of color to share with other endowments and foundations.
“It doesn’t mean anything until dollars start moving in the direction of these diverse firms. We haven’t seen a sea change there yet, and we’ll only be satisfied when that happens.” Moving investment dollars is challenging and will likely be a slow process. Rob hopes his team’s list is just the first step.
Financial planners are like pilots, Carl Richards says. We can create flight plans for our clients, showing them a map of the next few decades. But life and the markets both change in ways we don’t expect. Financial planners need to learn to communicate that uncertainty, and to establish themselves as guides who can adjust plans as clients’ lives and goals change.
“You can have the best investment plan in the world, but if you don’t know why you have it, you’re not going to get where you want to go," he says.
As the financial planning industry evolves, Carl hopes advisors will continue listening deeply to clients’ goals, finding productive ways to talk through their emotional responses, and creating plans that align with those goals.
In the first few weeks of the COVID-19 pandemic, the markets were incredibly volatile. But they stabilized fairly quickly, and now, it looks as if the stock market will end 2020 at or near record highs. In March, Trace Tisler reminded us that prudent investors don’t chase returns — that makes investing a game rather than a strategy. Diversification is key to weathering storms. He was largely correct. To prepare for the next crisis, listen to his advice: https://fitadvisors.com/episode-34-navigating-the-market-uncertainty-of-covid-19/
Events during 2020 — the COVID-19 pandemic, social unrest, economic uncertainty — upended our lives in many ways, straining our mental and emotional health. In May, psychologist Amee Dassani joined me on the show to provide insight on managing stress and practicing mindfulness. If you missed this episode in the spring, or if you could benefit from that advice again, it's here!
https://fitadvisors.com/episode-37-coping-with-stress-through-mindfulness
As 2020 draws to a close, it may be difficult to remember every event that affected your finances. In this episode, we'll cover Paycheck Protection Program loans, student loans, and mortgage refinancing. I'll also discuss a few things to keep in mind for your 2020 tax planning, including charitable contributions and retirement plan contributions.
Dr. Brent Lacey coaches physicians in all phases of their careers — whether it's to find the right institution for their goals, to assume leadership roles and advocate for change within those institutions, to launch their own practices, or to master their personal finances.
Though physicians typically work in silos, Brent says, COVID-19 has demonstrated how important it is for physicians to understand the inner workings of their hospitals or practices and to advocate for the changes they wish to see — and if the culture is too entrenched for those changes to occur, he encourages physicians to move on.
“The most effective way to bring about change is to participate in it," Brent says. It takes courage to ask questions of leaders and to have difficult questions with them, but those are hallmarks of leadership too.
Kenji Asakura and Letizia Alto are experienced and passionate real estate investors. They share their knowledge with other physicians and high income earners through their business, Semi-Retired MD, which offers courses, coaching and more.
“Whenever you’re in a challenge, say, ‘how can I?’ Then figure out every possible solution and try them, and never give up and say ‘this is impossible.’ There’s always a possible solution — you’ve just got to figure it out and try to hit it from as many ways as you can and be very, very persistent," Leti says.
Since their last appearance on Money Checkup about a year ago, Kenji and Leti have nearly doubled the size of their real estate portfolio and have begun transitioning out of clinical medicine to focus on their businesses.
https://fitadvisors.com/real-estate-investing-semi-retired-md
You may already know Farnoosh Torabi. She’s a financial journalist and TV and podcast host who appears regularly on The Today Show, NextAdvisor, Bloomberg Opinion, CNBC and more. She is the author of several books, the most recent of which is When She Makes More: 10 Rules for Breadwinning Women.
In addition to running her own business, Farnoosh is a wife and mom to two kids. She and her family live in New Jersey.
https://fitadvisors.com/farnoosh-torabi-personal-finance-female-breadwinners
Geraldine Carter believes CPAs should do more than compliance. A great CPA, she believes, can act as a fractional CFO, offering cash flow forecasting and strategic support to business owners. She founded She Thinks Big Coaching and launched her podcast, Smart Strategy for CPAs, to do just that: Help CPAs establish themselves as key members of business owners’ teams, focusing on specific niches where they can develop expertise.
On the other side of the equation, Geraldine encourages business owners to find the right CPA or fractional CFO as soon as they can afford to do so. Business owners need to understand their financials, but there’s no substitute for expertise.
https://fitadvisors.com/geraldine-carter-cpa-niche-business-owners-cfo
The tech industry can be challenging to navigate. Tech workers tend to change jobs often as startups launch or fail. Many are compensated not only with a traditional salary and benefits package, but with stock options — which, if a company succeeds, can result in “life-changing amounts of money” for employees. Chloé A. Moore, CFP® helps tech workers prepare for those incredible possibilities while protecting themselves and their financial security. https://fitadvisors.com/money-checkup-tech-compensation-chloe-moore
Lauryn Williams became a professional track and field athlete at age 20. Suddenly, she found herself earning six figures and, despite studying finance in college, she ended up working with two financial planners who took advantage of her inexperience. In this episode, Lauryn speaks candidly about her mistakes — especially buying more house than she could afford — and how she now tries to provide frank, accessible advice to her clients as the founder of her own financial planning firm, Worth Winning. https://fitadvisors.com/lauryn-williams-worth-winning-unique-financial-path
Veena Jetti is a real estate investor specializing in multifamily properties. At her firm, Vive Funds, she seeks to develop investment opportunities, primarily in Texas and Florida, then to bring investors together to take advantage of those opportunities. She continually reminds potential investors that they’re investing in the sponsorship team as much as the property itself. A good team can make a good deal into a great deal, she says; the opposite is less likely. https://fitadvisors.com/veena-jetti-multifamily-real-estate
At the beginning of the COVID-19 pandemic, the CARES Act paused interest on federal student loans. Legislators have been discussing additional student loan relief as they work on additional stimulus legislation. Travis Hornsby, founder of Student Loan Planner, says it’s important for borrowers to keep an eye on these changes so they can plan for their futures. https://fitadvisors.com/travis-hornsby-student-loans-pandemic-policy-change/
Amber Romo is a real estate agent in the Los Angeles area. Despite the COVID-19 pandemic, she and her team are busy with home purchases and sales. https://fitadvisors.com/buying-property-during-the-covid-19-pandemic
Brian Thompson is a tax attorney and CFP® who works with LGBTQ+ founders of mission-driven businesses to hone their ideas and maximize their impact. https://fitadvisors.com/episode-42-creating-a-mission-driven-business
A real estate agent can be instrumental in buying or selling your home. Chicago’s Suchi Bhagat explains what agents do and how to identify a partner.
https://fitadvisors.com/episode-41-choosing-the-right-real-estate-agent
Wilma Broering, CFP®, is a financial counselor to military service members. She is dedicated to helping service members navigate the day-to-day challenges of military life, take advantage of their benefits, and save for retirement. She retired from a financial planning practice in 2008, where she served the general population, before narrowing her focus to military members.
Anjali Jariwala and Mary Beth Storjohann are working and parenting full-time from home during the pandemic. They’re both learning to say no more often. Learn how.
https://fitadvisors.com/episode-39-running-a-business-from-home-with-kids
David Lieberman and Sachin Parikh of Palo Alto’s L&P Aesthetics share their tips for a successful partnership in a medical practice.
https://fitadvisors.com/episode-38-launching-a-practice-with-a-partner
The COVID-19 pandemic has upended our lives in many ways, straining our mental and emotional health. I recently had psychologist Amee Dassani on the show to provide insight on how to get through this crisis and manage stress. Join us and listen to the episode now.
https://fitadvisors.com/episode-37-coping-with-stress-through-mindfulness
Kids around the country have been out of school for weeks now and may not return until the fall. Monica Jariwala, a high school teacher, joins us to talk about what teens are experiencing during the COVID-19 pandemic and how families
Read more: https://fitadvisors.com/episode-36-a-high-school-teachers-approach-to-navigating-covid-19
Has your financial situation changed, or do you expect it to change, as a result of the COVID-19 pandemic? Review your emergency fund and make any changes you need to make; review your estate planning documents, and take advantage of expanded unemployment benefits and delayed student loan payments.
Talk to your financial advisor about immediate, specific steps you can take to weather this storm.
Read more: https://fitadvisors.com/episode-35-planning-in-times-of-uncertainty
This show was initially syndicated partially to Apple Podcasts. We're republishing it in an effort to share the full show.
The last two weeks have been full of market volatility, making many people anxious about their finances. The COVID-19 is putting external pressure on our economy. Traditional economic stimulus tools may not work as they have in the past. The next weeks and months are likely going to be rocky, but that doesn’t mean you should pull your investments out of the markets — that’s a risky gamble that, historically, has not paid off.
ABOUT THE GUEST:
Trace Tisler, CFP® is a financial advisor based in Hudson, Ohio, who primarily works with mid-career professionals and clients transitioning into retirement. He founded his firm, Epic Financial, in 2013.
Read more: https://fitadvisors.com/episode-34-navigating-the-market-uncertainty-of-covid-19
The last two weeks have been full of market volatility, making many people anxious about their finances. The COVID-19 is putting external pressure on our economy. Traditional economic stimulus tools may not work as they have in the past. The next weeks and months are likely going to be rocky, but that doesn’t mean you should pull your investments out of the markets — that’s a risky gamble that, historically, has not paid off.
ABOUT THE GUEST: Trace Tisler, CFP® is a financial advisor based in Hudson, Ohio, who primarily works with mid-career professionals and clients transitioning into retirement. He founded his firm, Epic Financial, in 2013.
Read more: https://fitadvisors.com/episode-34-navigating-the-market-uncertainty-of-covid-19
Puneet Cham joins Money Checkup to talk about the nuts and bolts of making your estate plan: Power of attorney for healthcare, power of attorney for property, guardianship for minor children, revocable trusts, a succession plan for your business, and more. Even if you feel like you won’t need your estate plan for many years, putting one in place will ensure that your family and your asset are protected.
Puneet Cham is a partner at Latimer LeVay Fyock who focuses on holistic estate planning and business succession planning.
Read more on www.fitadvisors.com.
Want a financial planner in your corner?! I'd love to connect. You can reach me at anjali@fitadvisors.com.
Kaya Ladejobi is the founder of Earn Into Wealth, a financial planning firm that serves high-earning women and dual-career couples. Kaya holds an MBA in entrepreneurship and is a Certified Financial Planner™.
She works virtually with clients in their 30s and 40s as they navigate student debt, weddings and honeymoons, having children and planning for family obligations.
EPISODE HIGHLIGHTS
- Weddings are often the first big expenses couples assume together. Kaya encourages her clients to understand what’s on the horizon. If couples plan to have kids or purchase a home right away, they may need to spend less money on a wedding to have funds available for a down payment, childcare, or other coming expenses.
- Many high-earning professionals carry high levels of student debt. Kaya encourages clients who have six-figure debt to make it a top financial priority.
- Talking about finances before marriage and creating a detailed cash flow plan can help couples avoid conflict later.
- Kaya estimates that about half of her clients are first- or second-generation Americans who have cultural obligations to their parents or extended family members, so she includes that in their cash flow plans.
For more, check out the show here: https://fitadvisors.com/planning-for-marriage-from-weddings-to-college-funds
David Draghinas is the host of Doctors Unbound, a podcast for and about physicians who are doing extraordinary things inside and outside the medical field. He practices clinical medicine as an anesthesiologist in the Dallas area on top of spending time with his wife and their four children.
David is an anesthesiologist in working private practice with Metropolitan Anesthesia Consultants in the Dallas area. He is a graduate of the USC Keck School of Medicine who started his career as a U.S. Navy physician in San Diego. David and his wife have four young children.
Social, website, book links:
Follow David on Twitter at @ddraghinas.
Learn more about Doctors Unbound at www.doctorsunbound.com.
EPISODE HIGHLIGHTS
- As Dr. Dragahinas met more and more physicians, he found that many of them had fascinating stories outside their work in clinical medicine, from founding companies to running for office. He launched Doctors Unbound to share those stories.
- More physicians than ever are talking about burnout, which gives physicians more power to adjust their practice or their finances to reduce or eliminate the causes of burnout.
- David started in short-term rentals by offering a home they already owned on AirBnB. About nine months in, they felt there was enough demand to purchase another home to market exclusively as a luxury AirBnB. These two homes generate 8 to 10 times as much revenue as standard long-term rentals.
- Initially, David planned to develop a long-term rental business, but he found it would be very difficult to cash flow more than $200 per month per unit. Their AirBnBs can cash flow as much as $2,000 per month per unit. But when he purchases a home, David considers its viability both as a short- and a long-term rental in case local regulations change.
- David and his wife do due diligence on their guests and share their cell phone numbers with their properties’ neighbors. When guests seem like they might be rowdy or upset neighbors, they leave money on the table rather than jeopardize relationships.
- David seeks to practice “work-life harmony” rather than “work-life balance.” He tries to batch his projects by, for example, spending a full day working ahead on Doctors Unbound so he can step away from it for a month.
- David and his wife both aim to spend quality one-on-one time with each of their kids at least once per quarter.
When it comes to financial planning, the default is to think that you’re just dealing with dollars and cents. In reality, it’s so much more than that. financial planning is about figuring out what you value in life, too.
In today’s episode, my guest, Scott Frank, CFA, CFP, of Stone Steps Financial talks about how to connect what you’re doing with your money to what you’re doing with your life. And as financial planners, what we can do to help!
Read more about Scott here: https://fitadvisors.com/episode-30-values-based-financial-life-planning
Anjali Jariwala, CPA, CFP® is the founder of FIT Advisors. She works with physicians and business owners to build stable financial futures and use their money in ways that support their values.
“Give yourself a year-end checkup just to make sure that you’re set for not only this year, but set up appropriately for 2020.”
KEY RESOURCES REFERENCED IN THIS EPISODE * For more about P&C insurance, try Money Checkup Episode 20. * For more on retirement plans for small business owners, try Episode 13. * For more on life insurance, try Episode 16. * To learn more about college savings options, read this blog post. * To better understand your small business’s financials, read this.
EPISODE HIGHLIGHTS
- As soon as possible, revisit your retirement plan contributions. You can contribute up to $19,500 to a 401(k) in 2020, plus an additional $6,500 if you’re 50 or older.
- Revisit your contributions to your HSA and deferred compensation plans. HSA limits for 2020 are $3,550 for individuals and $7,100 for couples, plus an additional $1,000 per person if you’re 55 or older.
- Do a detailed review of your cash flow so you know how much you bring in, how much you spend and how much you save. Start by listing all your fixed expenses. Then prioritize your savings for both short-term and long-term goals.
- However much income is left is how much you have available for discretionary spending. review your recent credit card and bank statements to see how much you spend in various discretionary categories, including eating out, shopping and entertainment. If you’re spending more than you’d like to, put yourself on a budget in 2020.
- If you contribute to a 529 or other college savings plan, revisit your contributions at the start of the year. Find out if your state offers a tax deduction to contributing to their college savings plan. In general, I recommend that my clients invest 50% of the cost of college in a 529 and 50% in a taxable investment account.
- Check your credit report using annualcreditreport.com or a free credit monitoring service.
- Calculate your net worth annually. To do this, list your assets and then subtract your liabilities or debts. If your net worth is growing, is it due to increasing assets, shrinking debt, or both?
- Review your debt. A good rule of thumb, generally, is to carry debt worth less than 28% of your pre-tax income. Work with your financial advisor to eliminate your high-cost, non-tax-deductible consumer debt and gradually pay down your other debts.
- Review your insurance policies. Is your umbrella coverage sufficient for your net worth? Has your income increased such that you need more life or disability insurance?
- Lastly, for individuals: Review your investment portfolio. Revisit your investment allocations to make sure they are consistent with your projected retirement date, and work with your financial advisor to identify tax-efficient investments. Rebalance your investments if necessary.
- Business owners: Use the start of the year to clean up your books. See if your accounting practices are providing the data you need to effectively run your business. If you’re in the service sector, break out your revenue and expenses by service to understand how profitable each revenue stream is. If you have employees, try to understand the revenue generated by each person.
- Compare your 2019 P&L to those of prior years. How much did your revenue, expenses and profit change? Compare the reality to your projections from last year, and use your experience to set goals for 2020. Work with a financial advisor or CPA to make projections for the next 1, 3, 5 and 10 years.
- If you own an S Corp, note that negative equity means you pulled out more than you should have from your business, and you may need to pay tax on your withdrawals.
- Review your tax payments from 2019. If you haven’t yet made sufficient payments, put aside money for the bill that will be due April 15, and update your accounting procedures so you make on-time payments throughout 2020.
- If you own an S Corp, talk to your CPA about revising your salary for 2020. And if you don’t yet have a retirement plan set up for your business, talk to your financial advisor about whether that’s a realistic goal for 2020.
- You don’t need to address every single one of these goals in January. Focus on those that feel most pressing to you and your situation, and work with a financial advisor to prioritize those.
STAY IN THE LOOP WITH US! Follow FIT Advisors on Facebook, LinkedIn, or Twitter, or sign up for our monthly email newsletter at the bottom of the homepage.
Do you like Money Checkup? Please be sure to let me know by rating and reviewing the show!
If you loved this episode, try Episode 23: How Business Owners Can Build Balanced Lives.
In this episode, we will look at the benefits of being an independent contractor and some of the tax challenges you might also run into.
As an added bonus I’ll take a deep dive into the Qualified Business Income deduction (“QBI”) that came out last year with the new tax changes. We will go over the good, bad and what you can do to optimize the QBI for your taxes this year.
Oh look! We've written a companion blog that can be found here: https://fitadvisors.com/tax-and-retirement-planning-for-independent-contractors/
Bonnie Koo is a board-certified dermatologist and the founder of Wealthy Mom MD. As a financial coach, she empowers women physicians to take control of their finances and plan for the lives they want without stress and anxiety. MORE ON BONNIE! Bonnie Koo, MD is a board-certified dermatologist, as well as a business owner, wife, mother, and stepmother. She works as a physician on a locum tenens basis. With Wealthy Mom MD, Bonnie writes about how women physicians can manage money in addition to addressing childcare, elder care, divorce, and other unique concerns faced by breadwinning women. She offers an eight-week online course, Money for Women Physicians, as well as one-on-one financial coaching.
Website:
http://wealthymommd.com
EPISODE HIGHLIGHTS
- Early in her career, Bonnie joined a Facebook group where women physicians talked about money. She was in credit card and student loan debt, but would hear her fellow residents talk about their investments. They recommended The White Coat Investor.
- Later, at a friend’s recommendation, she started a blog.
- Bonnie met Peter Kim of Passive Income MD (a former Money Checkup guest) at a financial planning conference and he encouraged her to “go big or go home.” In late 2018, she began transforming her blog into a business.
- As the business grew and her family life evolved, Bonnie switched from working full-time to locum tenens assignments.
- About a year into running her business, Bonnie has not yet taken a salary. Her backup plan is to return to a full-time schedule as a dermatologist, which would require four days of 9-to-5 work per week.
- Bonnie works with a life coach and would recommend the experience to anyone feeling burnt out or stuck.
- Bonnie recently hired a project manager and a virtual personal assistant so she can delegate some of her business tasks. That helps her free up time to focus on the things that only she can do.
- Many women physicians are the breadwinners in their families, and for now, Bonnie is the primary breadwinner in hers. She and her partner try to evaluate their situation regularly to see whether they are both happy.
STAY IN THE LOOP WITH US! Follow FIT Advisors on Facebook, LinkedIn, or Twitter, or sign up for our monthly email newsletter at the bottom of the homepage.
Do you like Money Checkup? Please be sure to let me know by rating and reviewing the show!
If you loved this episode, try Episode 24: Understanding Physician Burnout with Nisha Mehta, MD.
As the end of the year approaches, make sure you make time to review your finances for 2019 and prepare for 2020. From retirement plan contributions to employee benefits to tax returns, work with your financial advisor and CPA to make sure you’re on track to maximize your tax benefits and save for your future.
After subscribing to the podcast, read more about how to give yourself a year-end financial checkup here.
Letizia Alto and Kenji Asakura are physicians in Seattle. After a few years of full-time work and a transformative vacation to New Zealand, they decided to begin real estate investing so they could embrace the semi-retired lifestyle. Today, they own several dozen residential and mixed-use properties. They blog and lead real estate investing classes at Semi-Retired MD.
Leti continues to work half-time as a family medicine physician and Kenji moonlights as an internal medicine physician. They live in Seattle.
KEY RESOURCES REFERENCED IN THIS EPISODE FB Group for:
Physicians and their spouses
Dentists and their spouses
Lawyers and their spouses
High-Income Professionals and their spouses
Course page:
https://semiretiredmdvip.mykajabi.com/zerotofreedom
Dr. Nisha Mehta identified the symptoms of burnout fairly early in her life as a radiologist.
Instead of pursuing an academic career, she chose to begin writing and speaking about issues surrounding physicians’ demanding lifestyles, including work-life balance, women in medicine, physician finances, healthcare policy and the industry landscape, physician entrepreneurship and more.
EPISODE HIGHLIGHTS
- Fewer and fewer physicians say they would recommend a career in medicine to their children because the profession is so demanding.
- Dr. Mehta thinks most people in medical careers are beginning to realize the seriousness of burnout, including administrators and policymakers who see how that impacts hospital bottom lines and patient outcomes.
- Physicians don’t have to de-prioritize their work to maintain work-life balance. They often just need to be more intentional with their time — including prioritizing family time, wellness and sleep.
- Physicians often do as much as they can until they’re totally overwhelmed, then try to make a drastic change. Dr. Mehta encourages them to think about career longevity instead. How much do you need to slow down if you’re going to finish this marathon?
- It can take physicians a long time to come out of the scarcity mentality of training. At a certain point, if earning more money takes away from your family time or your well-being, it may not be worth it.
- Decide how much money you and your family need to live comfortably and to save for your goals, and then use that as a benchmark for deciding whether you need to put in additional hours or take on additional responsibilities. Often physicians need to work less than they think they do.
- Know your worth and negotiate for the compensation you deserve. Physicians only make up 8% of healthcare costs. Advocate for your share.
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Sophia Bera, CFP®, is the founder of Gen Y Planning and a friend of mine. She does an admirable job of balancing her work with her personal life, and this week on Money Checkup, she shares advice on how to structure your business to align with your goals and values.
To learn more about Gen Y Planning, visit genyplanning.com. Follow Sophia Bera on Twitter at @SophiaBera.
But first! Be sure to read the companion blog here: https://fitadvisors.com/how-business-owners-can-build-balanced-lives
Over 20,000 physicians talk about starting a medical practice, and according to this week’s guest, it’s a fallacy to think that physicians aren’t actually doing it anymore. On the contrary, Debra Phairas, president of Practice & Liability Consultants, LLC, has helped over 500 physicians open their own medical practices in her 34 years as a practice management consultant.
With her technical expertise on how you can open your own, you're bound to sooner than later.
Want more? Find the blog on the FIT Advisors website!
The U.S. sees six to eight medical malpractice claims per 100 doctors per year says Dr. Jason Shah, cofounder of Flagship Healthcare.
If a judge rules in favor of the patient, the average settlement or judgment is about $400,000 — although that can vary widely based on where the claim is filed and the physician’s specialty.
At the most basic level, physicians need to be insured for the potential of a malpractice suit. Check out the show with Jason as he walks us through the basics and nuances when pursuing this type of insurance.
Jason Shah, M.D. is cofounder of Flagship Healthcare, a medical malpractice insurance firm that was acquired by Alera Group in 2017. His business is now known as the Alera Healthcare Professional Liability Division and insures more than 5,000 physicians nationwide. Learn more about their services here. Contact Jason at jason.shah@aleragroup.com.
There are many more risk factors out there than there used to be. Thus, it’s necessary to change your mindset - you’ve worked hard, built wealth, may have a family relying on you - so you want to make sure that you are protected!
Prevention is always the best course of action, you don’t want to be put in a bad situation because you weren’t prepared.
Meaghan Dowd, Personal Risk Advisor, joins me to delve into the importance of insurance and the different coverages you should be sure to have.
Contract agreements will be written to favor the hospital or group over the doctor so take the time to make sure you are protected and know exactly what you are getting into. You often spend more time working than you do with your family so you don’t want to lock yourself in to a career that isn’t what you had in mind when signing the contract. Becoming a partner in a practice is an exciting time, but you need to be careful before signing the partnership agreement and putting in hundreds of thousands of dollars. Join in as Kristen Prinz, employment lawyer, business counselor and founder of the Prinz law firm delves into not only the importance of reviewing employment contracts but understanding the nuances of buying into a medical group.
It’s halfway through the year, summer is coming to an end. It’s the perfect time to do a mid-year money checkup. The purpose of this checkup is to ensure that you are on the right track for your personal financial goals for the year.
Join in on this solo episode where I go in detail about not only what you should be looking at but also the reasons behind each step. Doing a mid-year checkup is sure to save you some sanity and maybe even some money come tax time!
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It’s incredibly important to be proactive and focus on asset protection prior to an incident.
You want to protect those assets during your life so that you can enjoy them and so that there is something to go into estate planning.
Join in as Ike Devji, an attorney who focuses on asset protection, wealth preservation, and risk management as he delves into why asset protection is critical along with ensuring you are appropriately covered.
Ike Devji is an attorney whose practice has focused on asset protection, wealth preservation, and risk management for more than 15 years.
Contact him at http://www.proassetprotection.com/.
Life insurance is such a crucial piece of a financial plan for your life, but it’s not always something that people understand or prioritize. What type of policy do you need? Do you have adequate coverage? Should your spouse have life insurance? In today’s Money Checkup, Mark Maurer gives us some helpful pieces of advice to answer these questions, and others, as we chat about why life insurance is an important component of one’s financial life. We go through term life policies versus permanent policies, how much insurance you should have and even talk about how much is too much insurance. Tune in to learn what type of policy and how much coverage is right for you.
Mark is the President and CEO of LLIS, a comprehensive insurance practice that works with advisors and their clients to find the right solution. As the son of insurance experts, Keith and Judith Maurer, Mark grew up in the insurance industry and has an impressive combination of education and mentoring. He constantly monitors the insurance and financial services industries and, under his leadership, LLIS continues to expand its portfolio of products and services. Mark’s dedication, along with his unique industry perspective, education, and experience, allow him to build upon the LLIS traditions of cutting-edge information and customer service that fee-only financial advisors and their clients have relied upon since 1992.
Mark earned his CFP® designation in 2006, his bachelor’s degree in business and finance from Emory University’s Goizueta Business School in Atlanta, Georgia, and his MBA from University of Florida’s Warrington College of Business. Earlier in his career, he managed market operations for an energy trading company and financial operations for an international shipping company.
What We Will Cover
- How Mark got into the insurance industry
- An explanation of the different types of life insurance
- Two options for term life insurance and the benefits to each option
- A good rule of thumb if you are selecting a term policy
- The different options for permanent life insurance
- How a cash value works on a permanent life insurance policy
- How a variable life policy differs from a whole life policy
- The types of people that could benefit from a variable life policy
- When a variable life policy would be more beneficial than a term policy
- The tax advantages of permanent policies if one is right for your situation
- Why even a non-employed spouse should have life insurance
- Questions to ask yourself before choosing a permanent policy
- General rules of thumb to know how much life insurance you need
- How much is too much life insurance
- How layering life insurance policies could be a better option for some people
- When to look for insurance if you or your spouse are thinking about having a baby
- Why you may not want to solely rely on your employer’s group policy
- How to proceed if you’re ready to obtain life insurance
- The importance of answering health questions honestly
A Financial Goal in the Works
- Save money for an addition for his house
One Piece of Financial Advice
- Open a retirement account as early as possible and put money away each month
Getting Connected With Mark
- LLIS website
- LLIS Twitter
- Mark's email
Click here if you want to read the transcript instead!
Life Insurance with Mark Maurer
Have you ever wondered what is private equity and how to invest in real estate private equity deals? Or what are some of the requirements you need to have to even partake in this type of investment?. In today’s Money Checkup, I’ve invited Rachele Voigt on the show to provide her expertise and insight if you are exploring this asset class to diversify your portfolio. She goes over some of the common terms for you to understand and some things to watch out for when you are doing your due diligence.
Rachele is a Senior Associate at MLG Capital, a national real estate investment and private equity firm. She started her career working for a financial services firm before getting into real estate. At MLG, she mostly works on fundraising efforts from high net worth individuals, RIA’s and Multi-Family Office’s, while helping maintain current investor relations and finding acquisition opportunities in the state of Wisconsin.
What We Will Cover
- How Rachele got into the real estate industry
- How companies are combating against the real estate downside risk
- The importance of doing your due diligence when looking at a real estate private equity deals
- Questions to ask when evaluating the team that managing an equity fund
- An explanation of leverage point
- The different types of debt that you might see in a commercial real estate deal
- A description of a preferred rate and an annualized Internal Rate of Return (IRR)
- Why you should understand your own risk tolerance
- A few examples of the types of fund diversification
- A definition of deal flow and what that looks like
- What is meant by a syndication
- Some of the fees you can expect to pay
- How the commitment based type of investment works
- How returns are divided between managers and investors and when that occurs
- The outcome if the preferred return is not met for the year
- An explanation of equity multiples and what you might see in the industry
- The requirements to be an accredited investor and what it means for these types of deals
- How these types of investments can impact your taxes
- A few tips for you if you’re interested in investing in this asset class
- Some advice for seasoned investor on where to go next in your portfolio
Getting Connected With Rachele
- Rachele's LinkedIn
- MLG Capital's LinkedIn
- MLG Capital's Facebook Page
Links We Mentioned
- SEC’s definition of Accredited Investor
- MLG Website
Click here if you want to read the transcript instead!
The Ins and Outs of Real Estate Private Equity Investments with Rachele Voigt
The world of student loans can be daunting, and one that is challenging to navigate. Should you continue with Federal loans? Should you refinance to private loans? What are the benefits and dangers to both? In today’s Money Checkup, Travis Hornsby joins me on the show to give some insight into how you can navigate some of these questions and more to figure out what is best for your situation and your student loans.
Travis Hornsby founded Student Loan Planner after helping his physician wife navigate ridiculously complex student loan repayment decisions. To date, he’s consulted on over $367 million in student debt personally, more than anyone else in the country. He is a Chartered Financial Analyst and brings his background as a former bond trader, trading billions of dollars.
What We Will Cover
- Some of the repayment options for student loans
- How Congress got involved over the years with student loans
- How Married Filing Separately and Married Filing Jointly affect your taxes when you have student loans
- How the federal repayment plans differ and how they are the same
- An explanation of the breadwinner loophole and the reverse breadwinner loophole and how it might apply to you
- Some of the things to be cautious of when using income-based repayment plans
- When you can recertify your income driven repayment plan and when you should
- Tax filing errors to be aware of if you own your own business and have student loans
- Some of the controversy around the Public Service Loan Forgiveness (PFLS) program and what might happen in the future
- How PFLS effects different occupations
- How the Aim Higher Act and other Congressional proposals could impact PSLF
- Which payment plan makes sense if you’re pursuing PFLS
- The importance of being in a capped plan if you’re not in a partial financial hardship
- How consolidating loans can negatively impact what you can do with your loans
- When private refinancing makes sense for you
- Income Driven Loan forgiveness explained and when you should utilize it
- The protections federal loans offer that aren’t included in private loans
- The best way to tackle student loan debt and keep the burden as small as possible
- A rule of thumb to figure out how much debt you will be in when you finish med school training
Getting Connected With Travis
- Student Loan Planner Website
- Student Loan Planner Blog
- Connect with Student Loan Planner
Click here if you want to read the transcript instead!
What You Should Know About Student Loan Planning with Travis Hornsby
If you’re a business owner, figuring out the right retirement plan for you and your employees can seem like a daunting task. The first decision is to determine if you want a defined contribution plan or a defined benefit plan and then from there the number of options continues to grow. In today’s Money Checkup, I’ve invited Neil Shore to join me on the show to take a deep dive into these options and provide you insight on what may work for you and your business. Tune in to not only find out about the various retirement plan options, but also understanding the tax implications for each type of plan.
Neil Shore, ASA, EA and Kathy Tompkins founded Shore Tompkins in 2004 to be a leading, creative, high-touch retirement consulting firm, exclusively focused on strategic consulting, design and administration for all major types of retirement and pension plans. Neil has 33 years of actuarial and benefit consulting experience, specializing in pension plan design, consulting and actuarial services. Neil is an Associate of the Society of Actuaries, an Enrolled Actuary and a member of the American Academy of Actuaries and holds a bachelor’s degree in Actuarial Science from the University of Illinois.
What We Will Cover
- How Shore Tompkins started and evolved into what it is today
- The different types of plans Shore Tompkins offers
- Learning how to put more money away as a small business owner
- Some of the common retirement plans for small businesses
- The ins and outs of a SIMPLE IRA
- The different contribution limits for a SIMPLE IRA and a SEP IRA
- The two big advantages of a 401k profit sharing plan
- What the 5500 IRS filing is for and how often you need to do it
- Breaking down a defined benefit plan
- Comparing and contrasting the defined benefit and defined contribution plans
- The business owner’s big advantage with a defined benefit plan
- How age plays a part in the amount you can put into a defined benefit plan each year
- A good risk tolerance for business owners with a defined benefit plan
- How control groups can affect retirement plan designs
- How to prove your plan is nondiscriminatory
- How to determine a retirement plan as an owner in multiple companies
- How retirement plans and Qualified Business Income (“QBI”) deductions intertwine
- QBI deduction income limitations
- How to utilize the QBI deduction to your advantage through a retirement plan
A Financial Goal in the Works
- Be financially independent and leave money to his heirs.
One Piece of Financial Advice
- You should always be living well below your means.
Getting Connected With Neil
- Neil's Website
- Phone Number: 312.762.5944
Links We Mentioned
- Money Checkup QBI podcast (episode 4)
Click here if you want to read the transcript instead!
Retirement Plans for Small Businesses with Neil Shore
Many times people see just the dollars and cents side of money, but there is so much more behind each person’s money script. You have certain beliefs and ideas about your money for a variety of different reasons. In today’s Money Checkup, I chat with fellow Certified Financial Planner®, Mary Beth Storjohann on some of the questions we see quite often when it comes to money and hiring a financial planner to navigate money issues. We dive into what to look for in a CFP®, questions you should be asking your potential financial planner and more! Tune in and learn how to determine which financial planner is the right FIT for you.
Mary Beth Storjohann, CFP® works as an author, speaker, and financial coach to apply a fun, albeit no-nonsense approach in working with individuals and couples across the country, helping them make smart, educated choices with their money. She is the Founder of Workable Wealth, a platform that provides financial education and empowerment to those in their 20s – 50s, and is the Chief Marketing Officer at Abacus Wealth Partners, a fee-only, independent firm that is a change-maker in the financial planning world with a focus on diversity and inclusion, impact & socially responsible investing, and making financial planning accessible.
What We Will Cover
- Questions that come up around hiring a financial planner
- Barriers people put up for not hiring a financial planner
- How to address the emotional side of money
- How a financial planner can provide a safe space to talk about your money
- Important items to look for when searching for a financial planner
- Fiduciary explained and why your financial advisor should be in this category
- Fee-only versus fee-based financial planners
- A few things to consider when finding the right fit for your financial planner
- How comfort and the ability to relate can be crucial for picking your financial planner
- Why your financial planner shouldn’t be afraid to have the tough conversations with you
- Why you may not get the sample plan you ask for when interviewing a financial planner
- The questions you SHOULD be asking instead
- The peace of mind a financial planner can bring to your life
- The fees discussed and the value that you get
- Why fees will be different when comparing financial planners
- Different options to pay your financial planner to make it work best for you
- The challenges and pitfalls you might run into down the “do it yourself” route
Getting Connected With Mary Beth
- Mary Beth's Website
- Mary Beth’s Email
Click here if you want to read the transcript instead!
Why You Should Hire a Financial Planner with Mary Beth Storjohann
One of the items that is often overlooked and the least understood in the insurance world is disability insurance. How much coverage should you have? What does the term “any occupation” mean and should that be in your policy? In today’s Money Checkup, I’ve invited Stephanie Pearson, MD to join me on the show to discuss these questions and many others specifically as it relates to physicians and the disability insurance they should have in place. Stephanie has been through her own traumatic injury so knows first hand the specifics to look out for when it comes to disability insurance.
Stephanie Pearson, MD, FACOG, is a Board Certified OB/GYN and an advocate and advisor for physicians’ disability insurance. A resident of Wynnewood, PA, Stephanie grew up in Southern New Jersey, received her B.S. from Emory University and her MD from MCP/Hahnemann (now Drexel University College of Medicine). Before becoming injured, she practiced obstetrics and gynecology at a community hospital in suburban Philadelphia. She now consults with resident and attending physicians about the importance and nuances of disability and life insurance. She’s married with two sons.
What We Will Cover
- The reason behind Stephanie’s transition from OB/GYN to disability insurance broker
- Mistakes around disability insurance that she learned along the way
- The reason disability insurance is so important
- Important features a disability policy should have, especially for physicians
- The difference between any occupation and a physician specialty in disability insurance
- A few benefits Stephanie thinks are crucial to have
- How Cost of Living Allowance (COLA) can play a part in your disability policy
- The biggest difference seen in different carriers as it relates to disabilities
- Knowing if you have the right partial disability rider in place
- How much income can someone insure and how much should someone insure
- The view insurance companies have on pregnancy and delivery
- The number one thing women should take away from this episode
- The right time for someone to obtain disability insurance
- The differences between a private policy and a group policy
- The definition of own occupation against national economy
- Tax nuances for disability insurance
- Special considerations for Californians obtaining disability insurance
- How transitional language could be a benefit to you
A Financial Goal in the Works
- She would like to have her student loans paid off by the end of 2019
One Piece of Financial Advice
- Lean on experts when you need to make financial decisions
- Always have an emergency fund in your back pocket
Getting Connected With Stephanie
- Stephanie's Website
- Stephanie's Blog
- Stephanie’s Email
- Phone Number: 610.658.3251
Click here if you want to read the transcript instead!
What You Should Know About Disability Insurance with Stephanie Pearson
Passive income, especially in recent years, has become a popular way to growth wealth. One platform you can use to benefit from passive income is real estate. In today’s Money Checkup, I’ve invited Peter Kim to join me on the show. Peter has taken this idea of passive income through real estate investing, not only to grow his own wealth, but to educate other physicians on how to do it as well. Join us on today’s episode to hear how he’s gotten to where he is today and the information, tips and tricks he passes on to other physicians through his two companies.
Peter is an anesthesiologist living in Los Angeles with his wife and two children. He is the creator of the website Passive Income MD which helps physicians create financial freedom through passive income. He is also the founder of Curbside Real Estate, a service created to help physicians in the home buying process. Peter runs a Facebook group of nearly 5,000 physicians to discuss issues related to passive income called Passive Income Docs.
What We Will Cover
- How Peter got into blogging and investment real estate
- Why so many people are turning to real estate investing as another income
- The importance of passive income in a balanced lifestyle
- The definition of passive income and the amount of work that goes into it
- How going with the crowd on investments can sometimes hurt your financial future
- Your location might be negatively affecting your ability for financial freedom
- Where Peter gained his knowledge around passive income
- What financial independence means for you
- Where to begin if you want to start generating passive income
- Some of the groups to get involved in to learn more about passive income
- The benefits of collective knowledge when learning something new
- The tale of two dads and the different paths they led
- Different types of real estate investment opportunities
- Crowd funding real estate defined and an example of a syndication
- Understanding what a Real Estate Investment Trust (REIT) is
- How the new tax law affect REIT dividends
- What to look for when vetting a syndication deal
- Questions to ask the syndicator during the vetting process
- The definition of an accredited investor
A Financial Goal in the Works
- Turn his business income to more passive income
- Buy another rental property by the end of the year
One Piece of Financial Advice
- Figure out a way to utilize money to maximize your time
Getting Connected With Peter
- Passive Income MD
- Curbside Real Estate
- Facebook (Passive Income MD)
- Facebook (Curbside Real Estate)
Link’s Mentioned
- Rich Dad, Poor Dad
- I’m Financially Independent if I Move Blog Post
- The List of Physician Side Hustles Blog Post
- 10 Ways to Generate Passive Income Blog Post
- Physician on Fire
- White Coat Investor
- My Rich Dad, My Poor Dad Blog Post
Click here if you want to read the transcript instead!
Creating Streams of Passive Income Through Real Estate Investing with Peter Kim (Passive Income MD)
Buying a home can seem like an impossible task, especially when you start to learn about all of the other costs to consider that might not even relate directly to the home purchase. In today’s Money Checkup you’ll hear Part 2 of Christina Razzi’s episode where I will dive further into some of the costs to think about and consider when you are determining the amount of home you can afford. There are rules of thumb that most lenders tend to follow, but there are also other indirect costs and future costs you need to also be thinking about. I’ll also discuss how to ensure your new home purchase works within your personal cash flow so you can still reach current and future financial goals.
What We Will Cover
- Rules of thumb around home buying and the misconceptions they can present
- The first step in the home purchase price
- How debt-to-income plays into being able to buy a home
- Why you need to understand, in detail, your monthly spending
- Besides the down payment, other expenses you will need additional cash for
- Reserve requirements many lenders will require you to have on hand
- An in depth look at what goes into your monthly mortgage payment
- The additional payment to think about if your down payment is less than 20%
- When you can avoid private mortgage insurance (PMI) with less than 20% down
- The portion of take home pay you want your mortgage payment to be less than
- The importance of evaluating the change in your savings rate when buying a home
- Unexpected costs to think about when you own a home
- Changes in taxes that impact home purchase and property tax deductibility
- Why you might need a little cash left over after all home buying costs are considered
- Pitfalls to be aware of if you’re in the market for a new home
- Future family costs to also think about and factor in
- How to prepare your credit in order to buy a home
- How to know when to walk away from a home
Getting Connected With Anjali
- Website
Links Mentioned
- You Need a Budget
- com
- CreditKarma
- Annual Credit Report
Click here if you want to read the transcript instead!
Part 2 Buying a Home - How Much Home Can You Afford
One of the biggest purchases many of us will make in our lifetime is a home and for some people that might happen more than just once. What usually comes with the purchase of a home is also a mortgage, which means a lot of paperwork and a lot of complicated numbers and so what does it all mean? In today’s Money Checkup, I talk with Christina Razzi (NMLS 162739) about what lenders are looking for, what things to watch out for when working with a lender and some of the unique features physicians can take advantage of when looking for a mortgage.
Christina is the #1 US Bank loan officer in her region with over 20 years of experience. She helps clients across the US obtain mortgages for their first home, second home, investment property and more. She is focused on customer service and works with her clients to help them decide which option is the best for their situation.
What We Will Cover
- First thing to do if you’re thinking about buying a home
- The score you should be above to have a “great credit score”
- How department store credit cards are not your friend
- Documents to have in order before applying for a mortgage
- The differences between fixed, adjustable rate, and interest-only mortgages
- The most common and most conservative type of mortgage
- When an adjustable rate mortgage (ARM) could be beneficial
- How mortgage rates and savings interest rates work in tandem
- When a person should consider an interest-only loan
- Qualifications for an interest-only loan
- Reserve requirements for each type of loan
- Fees to look out for when price shopping mortgages
- When to start asking for the loan estimates
- Other factors to consider when picking a lender besides fees
- How debt plays into mortgage lending
- Doctor loan nuances to be aware of for mortgages
- The ins and outs of private mortgage insurance (PMI)
- The most important thing to do for the bank if you’re self-employed and looking for a loan
Don’t forget to check out Part 2 next time where I do a deep dive into home affordability.
Getting Connected With Christina
- Christina’s Email
- Christina's Website
- Christina’s Phone Number: 312.404.1344
Click here if you want to read the transcript instead!
Part 1 Buying a Home - What to Know About Mortgages with Christina Razzi
It doesn’t matter how much or how little a person makes; finances can be a challenge for all of us. In today’s Money Checkup, I chat with Tarang Patel about how even physicians struggle with finances. Coming right out of medical school or residency, physicians are faced with large amounts of student loan debt and many don’t have the opportunity to start contributing to an employer sponsored retirement plan until they are in their mid-thirties. We discuss these issues and others that our physicians are facing with their finances to try and provide some suggestions and insight as to when and how they should be getting a handle on their finances.
Tarang is a radiologist and host of the Doctor Money Matters podcast where he provides a place for physicians, dentists, and other health physicians to discuss financial topics they are faced with today.
What We Will Cover
- Tarang’s background and where his interest in finance stemmed from
- Tarang’s reason for launching his podcast Doctor Money Matters
- How Tarang’s views on money were shaped
- How to instill good money values with your kids
- Financial mistakes many physicians tend to make
- Why physicians continue to make the same mistakes as previous generations
- How “keeping up with the Joneses” can hurt even physicians
- Financial traps physicians can fall into after finishing up medical school or residency
- The best time for physicians to link up with a financial planner
- Why maxing out a 401K isn’t enough for retirement
- The importance of living below your means (and avoiding lifestyle creep)
- If you haven’t started investing in a taxable account, why you should start today!
- The reason physicians are poor wealth accumulators despite the high income
- The importance of looking at the whole picture when examining a job offer
- Why you should look at establishing a financial plan NOW
- The significance of taking care of your financial health (just like you would your medical health)
A Financial Goal in the Works
- Try to diversify away from the stock market
One Piece of Financial Advice
- Get the right type of insurance as early as you can.
- Invest in yourself and your own financial knowledge.
Getting Connected With Tarang
- Tarang’s Website
Link’s Mentioned
- The Millionaire Next Door
- Bogleheads Blog
- White Coat Investor
- Physician on Fire
Click here if you want to read the transcript instead!
Physicians and Money with Tarang Patel (Dr. Money Matters)
There have been plenty of changes to the 2018 tax returns as a result of the Tax Cuts and Jobs Act. Today we go over some of the big changes that might affect you and your tax return.
Tune in to find out some of the forms that are no longer utilized, how the tax brackets have shifted, the changes to standardized and itemized deductions and more. And if you have a question about the changes made and we don’t cover it today, please feel free to reach out to me and I’d be happy to get you the answers you are looking for. Don’t forget, unless you’re under an extension, your individual taxes must be filed by Monday, April 15th 2019!
What We Will Cover
- Some changes you will see when filing your 2018 tax returns
- Forms that are no longer available
- What the new Schedule 1 is used for
- The adjustments that have been made to the tax brackets (and income thresholds)
- An interesting twist for the new tax brackets for single filers
- What happened to the personal exemption
- Changes to the moving expense deduction and who is still eligible to utilize it
- What’s new with the standard and itemized deductions
- How state income tax is affected by the changes to itemized deductions
- Mortgage interest deduction changes and which mortgages are affected by the change
- Why we can no longer take advantage of the miscellaneous tax deductions (and what falls under this umbrella)
- Medical deduction adjustments that you can take advantage of
- A brief history of the alternative minimum tax (AMT) and the changes made to it this year
- How your child tax credits have changed
- The basics of the Qualified Business Income deduction (but the details can be found in Episode 4)
- Looking ahead and identifying things to watch for in 2019
Getting Connected With Anjali
- Website
Click here if you want to read the transcript instead!
2018 Tax Return Changes Explained
Real Estate investing is popular and can provide for an income stream in retirement as well as diversification in your portfolio. But what are some of the important factors to think about before investing in real estate? What are the tax considerations you should be aware of before investing? And what’s a §1031 exchange? In today’s Money Checkup, Christina Woo and I answer these questions about real estate investing and more to see if this is the right investing path for you. We will talk about the metrics to know and understand when vetting an investment property. We will do a deep dive into what a 1031 one exchange is as well as provide key tax considerations to think about. We’ll also provide you some questions you can ask yourself to see if real estate investing is something you might want to add to your investment portfolio.
Christina is a top realtor in the San Francisco bay area with over 20 years of business experience. She has an MBA from Harvard and worked in management consulting at Bain and was an equity researcher for Morgan Stanley for a number of years before transitioning to real estate. She started investing in real estate in 2005 and now has a real estate portfolio that spans across 9 states. She is passionate about helping clients establish passive income streams through real estate investing.
What We Will Cover
- Why so many people are attracted to real estate investing
- The two benefits of rental real estate
- Understanding what a §1031 exchange is and how to use it
- An explanation of capital gains tax
- How to find that right property to invest in
- The importance of knowing your “why” in real estate investing
- Key metrics to utilize
- How you can benefit from the power of leverage
- Analyzing an investment with cash-on-cash returns and the capitalization (aka “cap”) rate
- Figuring out your debt-to-income ratio (and why that’s important)
- How an interest only mortgage works
- Why interest only loans aren’t for everyone
- How to get creative with financial investing in real estate
- Some thoughts on real estate bubbles
- How to look for opportunities even when the market doesn’t look that great
- Things to focus on when looking at an investment property
- How to look at your investment like your tenant would
- The benefits of getting and having long-term tenants
A Financial Goal in the Works
- Working on having her children learn the value of money
One Piece of Financial Advice
- Pay yourself first. (Set aside money for your future self first, not treat yourself!)
- Live beneath your means.
Getting Connected With Christina
- Christina’s Email
Click here if you want to read the transcript instead!
Real Estate Investing with Christina Woo
Taxes can be a challenge for a lot of people. There’s an added level of complexity if you are or are thinking about becoming an independent contractor. The tax rules and planning differs from a W-2 employee. But what are they?
Today on the episode we will dig into what those differences are. We will look at the benefits of being an independent contractor and some of the tax challenges you might also run into. As an added bonus I’ll take a deep dive into the Qualified Business Income deduction (“QBI”) that came out last year with the new tax changes. We will go over the good, bad and what you can do to optimize the QBI for your taxes this year.
What We Will Cover
- The difference between an independent contractor and an employee
- An explanation of tax withholding
- Who’s required to send in estimated tax payments and how frequently
- What it means to “safe harbor” your estimated taxes
- How Social Security and Medicare differ for employees and contractors
- The tax rates and income thresholds for Social Security and Medicare taxes
- The deduction for paying self-employment tax (and the definition of self-employment tax)
- How a 1099 independent contractor can offset business expenses
- What to expect for health care plans for an independent contractor
- The difference in retirement savings for an employee vs. an independent contractor
- Retirement plans for employees vs. retirement plans for independent contractors
- When and if someone should make the S Corp election
- The main different between and LLC and an C Corp
- The biggest benefit of an S Corp election
- What if you’re an employee AND an independent contractor
- The Qualified Business Income (QBI) deduction explained
- The limitations on the QBI
- The types of businesses that fall into the “specified service trade or business”
- The math behind the QBI deduction
- The phase-in ranges for the QBI deduction
- An explanation of unadjusted basis and it’s role in the QBI deduction
Getting Connected With Anjali
- Website
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Tax Planning for 1099_Independent Contractors
Whether you like it or not, there is an emotional component to how you approach money. In today’s episode Shanta Kanukollu and I discuss why we behave the way we do with our money and how that impacts the financial decisions we make. From the “money script” we’ve developed to the culture we were raised in, each aspect can impact your money decisions.
Shanta Kanukollu, Ph.D is a Licensed Clinical Psychologist in downtown Chicago. She enjoys working with individuals from various cultural backgrounds. Her professional interests include working with clients who struggle with issues related to depression, anxiety, trauma, parenting concerns, tough life transitions, family dynamics and intergenerational conflict. Shanta graduated from University of Michigan with her doctorate in Clinical Psychology and Women’s Studies.
What We Will Cover
- A few reasons money can be an emotional trigger
- How “the money script” affects the way we view money
- Partners often see the same financial activity in completely different lights
- The importance of the money conversations between partners
- The amount of money the happiest people make each year
- The dangers of trying to continue to “keep up with the Joneses”
- How to stay focused on your financial goals
- Start exploring your financial goals through George Kinder’s 3 Questions
- What role culture plays in money and financial decisions
- How to intersect cultural “money roles” with your significant other
- Jean Chatzky’s advice when talking about money (Talking Money)
- Avenues to explore if you and your partner are struggling to have the money conversations
- How to reduce the anxiety and stress around money
- The money conversation takes work and persistency
A Financial Goal in the Works
- Short-term goal is to upgrade her kitchen
- Long-term goal is to grow the practice while still enjoying time with family
One Piece of Financial Advice
- Set up a money date, have the uncomfortable conversations and if it’s still not working, get a third party professional involved.
Getting Connected With Shanta
- Website
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The Psychology of Money with Shanta Kanukollu
Sometimes to get a good understanding of something, we need to start with the basics. In today’s episode Kelly Klingaman and I discuss the investment basics to give you a better understanding of what your money can do for you. We will also provide some tools and tips you can use for your next money checkup.
As a Regional Director with Dimensional Fund Advisors, Kelly Klingaman works with advisors from across the US on investment, messaging, and business strategy issues in order to sustain, improve, and grow their practice. She graduated from the University of Texas at Austin's McCombs School of Business with a degree in
Finance, concentrated in investment management. Kelly has also held the CFP® certification since 2014.
What We Will Cover
- What does “the market” mean when it comes to investing
- Getting back to the basics: Stocks vs. Bonds
- Evaluating the risk profiles of stocks and bonds
- The differences between a mutual fund and an ETF
- Fees to be aware of when choosing investments
- Dimensional Fund Advisors’ (“DFA”) philosophy looking at active v. passive management
- What goes into “evidence-based” investing
- Explaining active and passive management through a trip to the grocery store
- DFA’s focus on research and what it has historically indicated
- The knowledge of the market explained through a jar of jelly beans
- The importance of diversifying your investments
- An explanation of asset allocation and why there’s not a “one-size-fits-all”
- How often and why you should rebalance your investments
- The importance of the “buy low, sell high” mindset
- The silent killer if you’re not investing your money
A Financial Goal in the Works
- Plan a big family vacation to Europe in 2020
One Piece of Financial Advice
- When giving gifts, give them 4 things: Something they want, something they need, something to wear and something to read
Getting Connected With Kelly
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Getting Back to the Investment Basics with Kelly Klingaman
It’s here! I’m really doing this! Money Checkup is live!
If you can’t tell, I am very excited about launching this podcast. For over a year I have wanted to launch a podcast to help educate a wider audience around all the nuances and technical knowledge around money. In the first episode I wanted to put it on the table around the WHY: WHY I launched this podcast; WHY I’m passionate about educating others around money; WHY I got to where I am today in my finance expertise.
I’ll fill you in on just a few of the topics you can expect to hear about each time you tune in and I hope you join me to gain a better understanding on what checkups you need to do with your money. If you have questions, I want to hear them so we can address the concerns you have around your money. Enjoy!
What We Will Cover
- Why Anjali started a podcast
- Guests you can expect and Anjali’s goal for you from the Money Checkup podcast
- Anjali’s journey and how she ended up in the finance industry
- The target audience Anjali enjoys working with
- Some of the topics Anjali has seen in her practice
- How the emotional side of money can have a huge impact on how people approach their money discussions
- How often you’ll be able to tune into Money Checkup
- Anjali wants to hear from you! What questions do you have around money?
Getting Connected With Anjali
- Website
Click here if you want to read the transcript instead!
What To Expect From Money Checkup Transcript