Finance for Physicians

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

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

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

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

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

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

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