Binge read all things wealth building, debt reduction, & lifestyle.

Your First $100K

wealth Apr 02, 2023

There are a few money goals every medical professional should be willing to hustle for. One such goal is reaching an investment milestone of $100,000. 

$100K invested means total balance invested across all investment accounts. This could include your 401(k) or 403(b), Roth IRA, brokerage account, etc. 

Although $100,000 is an arbitrary number, it represents something much bigger. Hitting six figures invested allows the beginning of a transition - the point where your money starts working harder to earn more money than you are.  

 

Investing Is A Long Term Game

The beginning of any investment journey is slow. It feels like you're contributing TONS of your income from your W2 job in medicine, but not seeing that beautiful growth of compounding returns that everyone talks about. Here's a visual representation of what a 401(k) portfolio looks like over time, looking at the portion of the total balance that is made up of your...

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The Secret Drag On Your Investments

wealth Apr 01, 2023

 

If you're a consistent investor, CONGRATULATIONS. That alone is a major accomplishment! If you're not there yet, no worries. Click here to learn how. 

Considering the effort you're putting into preserving and growing your funds, it's important to be aware of any hidden factors that may be depleting your investments.

Unfortunately, such a factor does exist.

It's your investing fees.

 

What Fees Are You Paying?

Fees come in several forms. The first is related to the investment itself. Each fund you choose has an expense ratio that represents the fund's internal operating expenses. It is represented as a percentage, and can be interpreted as the percentage of your returns that is taken from your account to pay for the fund's fees. 

Not sure what the expense ratio is for the funds you've invested in? Just google the fund's ticker (collection of capital letters representing the fund name). Click the Morningstar link. The expense ratio will pop right up. 

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How I Became A Millionaire At 31 As A PA-C

debt lifestyle wealth Mar 28, 2023

I became a millionaire at 31.

I didn't sell a business, get a six figure inheritance, or rob a bank. Rather, my husband and I accomplished this feat by being incredibly purposeful and deliberate with our finances over a period of many years.

When I graduated from physician assistant school at the age of 25, I was saddled with an overwhelming student loan debt of $161,000. My husband and I had little savings to speak of, no real knowledge about investing, and the added burden of a mortgage to contend with. The future looked daunting, and at times it felt like we were facing an insurmountable challenge.

At the time, I thought my primary money problem was my student loan debt. (Turns out, it wasn't. More on that later.) Nevertheless, I remained determined to tackle my student loans head-on and focused all my energy on paying them off as rapidly as possible, hoping to achieve financial stability sooner rather than later.

I worked full time as a PA-C, and then...

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Is Your Estate In Order?

lifestyle wealth Nov 15, 2022

Do you have a spouse, dependent(s), or substantial assets?

If you fall into any of those categories, read on...

A basic estate plan is something almost all of us should be thinking about. This starts with a determination of how your assets should be addressed upon your death. This can be accomplished through a will or a trust.

A will is a legal document designating what should become of your assets after your death. It should also designate a guardian for any dependents. A will can request an executor to create a trust after your death to hold assets for a minor (I would have an attorney set this up). A minor should never be directly listed as the beneficiary of a life insurance policy.

If you die with a will, your assets will go through the process of probate. Probate is the process of the legal system reviewing your will and the distribution of assets. This process takes time, involves lawyers, and costs money. Of note, 401(k) plans and IRAs...

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Recession Proof Your Life

wealth Jun 23, 2022
 

What are the key things you need to do to protect yourself financially in the event of a recession? 

1) Keep your emergency reserves in cash. This should be 3-6 months of expenses in a savings account or high yield savings account. If you are nearing retirement, it will need to be more. Don't be tempted to invest your emergency fund. It's a bad idea. 

With current interest rates, a high yield savings account absolutely makes the most sense. Mine is paying 3%!

2) Mind your debt burden. High interest debt needs to go NOW. Make any sacrifice possible to pay off your high interest debt, particularly credit card debt. Low interest student loan debt is different and should find a different place in your money plan, particularly federal loans at the current 0%.

THIS IS THE TIME to get incredibly aggressive with paying off any credit card debt.

3) Stick with your investing strategy. Your stock/bond allocation should make sense for you in general, regardless of the market. You...

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Automate Your Way to Rich

wealth Jun 23, 2022
 

Personal finance is 1000% easier than fitness. You can literally find the motivation one time to set everything up, and then let the process work for you. Turns out, hitting the gym once won’t get you the abs. 

We have 90% of our finances automated. What actually happens is this:

Multiple investments come out before we see our checks. This removes any temptation to spend the money and is one of the best personal finance hacks there is. These include:
- Her Roth 401k
- His traditional 401k
- Solo 401k (for small business owners only, but allows us save taxes on business income)
- His & her HSA *100% of balance is invested
- Dependent care FSA *not an investment, but reduces our income taxes and pays for childcare

After-tax investments are next. These include:
- His & her Roth IRAs
- Taxable brokerage
- Investment real estate
- Kiddo investments *For the full scoop on how to invest for kids, click here

*The Roth IRA always comes before the other...

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Weekend Getaway in Charleston

travel Jun 13, 2022

This post may contain affiliate links. If you make a purchase, I will be compensated at no additional cost to you. For my full disclosure, click here.

Within 24 hours of arriving in Charleston I had decided to move there (but then I got on Zillow to look at the cost of housing, and quickly changed my mind). It's incredible. The glistening water and southern charm are incomparable. You feel like you're walking through history, but with the amenities of a modern dining scene and thriving bar life. 

We recently did a long weekend in Charleston, and left planning our next return. If you have three days to spend in the area, I have the perfect suggestions for you. 

Friday

After arriving, take a stroll through the French Quarter. Make sure you see the iconic pineapple fountain at Joe Riley Waterfront Park.  The Doc Street Theater hosted the first opera performance in America, and is a great photo backdrop. If you're an art fan, gallery row will keep you enthralled...

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Maui - Airbnb vs Hotel

travel Jun 12, 2022

This post may contain affiliate links. If you make a purchase, I will be compensated at no additional cost to you. For my full disclosure, click here.

I've heard Maui described by every person who has ever been as "paradise". I've been a lot of places, so I assumed this was an exaggeration. 

It's not.

Maui is dreamy. The glittering sand, waves crashing over chiseled rocks, swaying palms, and dazzling sun make for the most picturesque vacation. It's also expensive. Accommodations and food are notoriously high. Of course, this is one of the downfalls of being a remote island chain in the Pacific; it costs a lot to get goods to you.  

If you're deciding where to stay on your next Maui vacation, you will be inundated with options. There are seemingly endless hotels and vacation rentals to choose from. Should you opt for a hotel with the large pool, concierge service, and on-site dining? Or what about the quiet, tucked away airbnb with gorgeous views...

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Stocks or Real Estate?

wealth May 30, 2022

Is it better to invest in stocks or real estate?

This is one of my most common questions, so I thought I would share some pros and cons of each. 

Investing in the traditional stock market is easy. It takes almost no effort and very little up front money. Although some index funds have minimum investments, the ETF equivalent often doesn't. You can start investing with less than $100. If you're investing well and using the right accounts, you can get substantial tax benefits for doing so. Of course, there is always the potential for loss of capital. The market may be down, and stay down, for long periods of time. The longer your investment time horizon for stock market investing, the less likely you are to lose money. In fact, if you hold investments for multiple decades the likelihood of losing money drops to almost zero. 

Real estate has the potential to generate positive cash flow, and thus returns, even when the stock market...

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JAAPA Podcast

lifestyle wealth Apr 30, 2022

If you're a PA or future PA, this is a must listen.

Some new data was recently published on the lifetime financial modeling of an average family practice PA. It's really unique for this type of information to come out specific to the PA profession, as most similar projections have been done based on the physician model. I was a guest on the JAAPA Podcast discussing this exciting publication. 

Does the model apply to you? How does your cost of living affect the projections? What about student loan debt, and funding retirement?

Tune in to the podcast to find out more!

https://jaapapodcast.libsyn.com/

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