I'm going to preface this post by saying - "I'm no expert in neither cryptography nor currency." But given the recent media hype and the increasing number of people who seek me out specifically to talk about Bitcoin and other cryptocurrencies, I thought I would share my random thoughts on the cryptocurrency craze.Read More
I track my net worth and shares it openly with FPMD readers every 3 months. Honestly it can be a bit embarrassing. Here I am a grown man in his early thirties, yet my net worth has been stuck solidly in the red for as long as I can remember. The reality is we medical trainees are faced with a very unique set of financial challenges that make the early accumulation of wealth very unlikely. Today I want to remind you to check your "White Coat Net Worth".Read More
More than 2 years ago, I shared with you A Simple Step-wise Approach to Retirement Savings, a post which I hoped to offer residents in training an easy tried-and-true method to start building a nest egg. Well, 2 years is a long time. Today I want to revisit these steps and incorporate a few things I've learned along the way...Read More
Here is the thing about Uncle Sam - no matter what you do, he always gets his cut. As I learn more about investing for retirement and tax-minimization strategies, the "pro rata rule" keeps popping up. As an FPMD reader, you probably don't have a lot of extra cash at the end of the month to dig deep into retirement strategies. But you soon will. Today I want to talk about the IRS "pro rata rule," also known as the "cream-in-your-coffee" rule.Read More
In my previous post ROTH IRA - the Cadillac of Retirement Vehicles I talked about why the Roth IRA is the best overall tax-advantaged retirement vehicle. I briefly discussed the income limit required to qualify for Roth IRA contributions. While most medical trainees are unlikely to make a high enough income to be disqualified from direct Roth IRA contributions, those residents/fellows with a lot of moonlighting income or transitioning to their first attending jobs are a different story. Here is how you can continue contributing to a Roth IRA even after you exceed the income limit. Hint: It's called a Backdoor Roth IRA.Read More
If you've been around the personal finance blogosphere, you probably have encountered this term - "Pay Yourself First." Or you may have read WealthyDoc's insightful guest post on Physician on Fire - Pay Yourself First? No, Pay Yourself Last. Since I've talked a lot about PSLF, I thought it's time we pay some attention to PYSF. So what exactly do we mean when we say "Pay Yourself First"? Let me explain.Read More
Technology invites innovation, and sometimes revolution. I sense a revolution coming in the investing space. Robo-advisors like Betterment and Wealthfront, once scrappy technology startups, now commands billions of assets under management. When I first signed up for Betterment in 2013, they managed a paltry $100 million. Today, they manage over $9 Billion in investments! Unfortunately, one of the best benefits of robo-advisors also happen to be their biggest shortcoming - let's talk about "wash sales".Read More
Have you ever heard of someone becoming wealthy by investing in some get rich quick scheme?
Yeah, me either.
Wealth is not only created by how much one can make during the good years; it's also created in how much one can persevere in the down years. That said, avoiding some of the common investing mistakes that many doctors make will help set you up for long term success. Here are five of them:Read More
In my latest net worth update, I asked for advice on finding a better way to invest the extra cash I had from cashing out my individual stock investments. One of my attending physicians suggested that I google something called the "Mega Backdoor Roth IRA." After some research on the topic, I decided to take advantage. I'm definitely not the first person to try the Mega Backdoor Roth IRA, but I may be the first who doesn't need to use the "backdoor" since I make so little income. So I suppose it's really just a Mega Roth IRA for me. Read on to learn more...Read More