The Physician Philosopher Podcast
MMM #12: Investing Waterfalls
Should you invest or pay off debt? And, if you invest, what order do you invest your money? While these are common questions, straight forward answers can be hard to find. Let the investing waterfall help you sort it out.
What You’ll Learn:
In the twelfth episode of Money Meets Medicine, “Investing Waterfalls,” you’ll learn whether or not this is the right time for you to invest, and more, including:
- Should your current focus be on your investments or your debt?
- How the financial mistakes of my parents impacted my financial decisions
- Are you “debt immune” or terrified to get into even a little debt
- What is the proper “flow” of the investing waterfall?
- Should you invest in your non-governmental 457 plan?
Resources from the Episode:
How Much Money Should I Be Saving Each Year?
Which Retirement Accounts Should I Use? The Order of Investing
Should I invest in my 457 plan?
This Episode’s Sponsor
This episode’s sponsor is Earnest, a student loan refinancing company. If you refinance through the link provided on this podcast, you will receive a $500 cashback bonus for doing so, and you will also be supporting the Money Meets Medicine podcast when you do that. It is a win-win-win. You can find out more information by visiting earnest.com/moneymeetsmedicine.
Listener Question of the Week:
Today’s listener question comes from Vivek Angandi:
“Is it financially worth it to rent cars for a long trip and preserve your owned rides?”
Each episode, we are going to start including listener questions as they are provided to us. So, if you have a specific question you’d like answered on the podcast reach out to us! Email [email protected] or [email protected]
TPP
You might also be interested in…
Show Me the Money (In the Financial Industry)
The personal finance industry is meant to help you manage your assets, but particularly for doctors, many questions remain around what that kind of support actually means.
Does your financial advisor have your best interest at heart? Do you know how they get paid? Are they transparent in their disclosures about how their company actually works? Where are the conflicts of interest?
Because you can rest assured there are conflicts of interest. It’s just a matter of how they show up. And once you can say “Show me the money” and find them, that’s when you can make intentional, informed decisions regarding your personal finance.
In tackling this topic, we wanted to acknowledge the two main reasons you may be considering your options for charitable giving, especially as a high-earning physician.
One is that you may have religious convictions that make you feel more inclined to give. Even if you don’t hold to the same belief system that we do – specifically around tithing and the historical background of that concept – giving to your community is very valuable. Not just for the recipient, but for you, the giver.
This leads us into reason two, which is that giving money (or other valuable resources) and helping others has been shown to increase long-term satisfaction and fulfillment in your life.
There’s also a practical side of financial charitable giving to consider, which are the tax advantages you can use to create the most bang for your buck – literally.
Charitable Giving for Physicians
Does tithing or charitable giving play a part in your personal finances? Should it? As usual, we’re not shying away from taking a deep dive into a very personal topic. Personal finance is personal, maybe never more so than when it comes to deciding how you want to give back.
In tackling this topic, we wanted to acknowledge the two main reasons you may be considering your options for charitable giving, especially as a high-earning physician.
One is that you may have religious convictions that make you feel more inclined to give. Even if you don’t hold to the same belief system that we do – specifically around tithing and the historical background of that concept – giving to your community is very valuable. Not just for the recipient, but for you, the giver.
This leads us into reason two, which is that giving money (or other valuable resources) and helping others has been shown to increase long-term satisfaction and fulfillment in your life.
There’s also a practical side of financial charitable giving to consider, which are the tax advantages you can use to create the most bang for your buck – literally.
Making the Most of Your Paycheck
You’ve done it – your training is complete and now you’re finally getting a paycheck fit for an attending physician. You think, “I’ve arrived! I’m going to start making so much more money.”
Famous last words. If you’re not prepared, that is.
Seemingly unassuming, everyday expenses still have the potential to wreck your new paycheck and your budget. I’ve seen it many times over the years: you try to be careful, but you (understandably) want to enjoy your hard-earned money. Costs creep up on you, things snowball. Suddenly, your post-tax paycheck is no different than it was in residency.
You thought you knew how to spend money wisely, but now you wonder, “What was the point of all my hard work to get here?”
Don’t worry. You can still enjoy the money you make while being aware of five main money traps that a high-income earner like you could be susceptible to if you’re not paying attention.
Are you ready to live a life you love?
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