Living Rich by Spending Smart – A Review

A reader recommended Gregory Karp’s Living Rich by Spending Smart to me. It is a great read and very useful for anyone having trouble saving 20%+ of their gross income. I cannot recommend the introduction and second chapter more highly. Unless your main financial issue is overcoming your cheapskate ways, you need to read those. Here are some gems that explain the book’s philosophy: Spending smart is the only way to get out of debt … Continue reading

Moonlighting vs IBR, PAYE, and PSLF: A Student Loan Showdown

[Editor’s Note: This is a guest blog post written by Ramsey Tate, MD. She is currently a fellow and shares tools on personal finance and productivity for women in medicine at Call Me Dr. We have no financial relationship.] Residency and fellowship are a long slog through penury. The light at the end of the tunnel seems awfully far away when you look at the mismatch between your student loan debt and your resident paycheck. … Continue reading

Backdoor Roth IRA Presentation

Sometimes I wonder if I write too often about the Backdoor Roth IRA. Then I see the results of my recent poll where I asked how many of my readers were actually doing a Backdoor Roth IRA. The results were very encouraging, but there is still room for improvement among physicians in general, especially when you realize these are the numbers for those who are really tuned in to personal finance and investing (i.e. those … Continue reading

Qualified Personal Residence Trusts

My October submission to Physicians Money Digest is all about Qualified Personal Residence Trusts (QPRT). Most of you won’t need one of these, but some of you might find it useful, especially if you live in an expensive part of the country. Some high-net-worth physicians may end up with what I call an “estate tax problem,” although the percentage of physicians likely to have this issue is dramatically lower than it used to be. The … Continue reading

Deducting Mileage vs Actual Expenses

[Editor’s Note: This is a guest post from a physician and regular reader named Alex, who wanted to share some of his insights regarding the deduction of vehicle expenses.  At any rate, it’s a good post and we don’t have any financial relationship.] Have you ever wondered what is the most tax-efficient way to deduct your vehicle for business purposes? Is it more profitable to deduct mileage or actual expenses? The Mileage Method When using … Continue reading

The 6 “Catches” of Section 79 Plans

Doctors hate to pay taxes. Insurance agents love to sell insurance. Combine the two with a tax deduction the IRS offers to encourage employers to offer some life insurance to their employees and you end up with situations like Section 79 plans. The Pitch The basic pitch behind section 79 plans is the opportunity to buy cash value life insurance using pre-tax dollars. The returns on cash value life insurance tend to be low, but … Continue reading

The Medical Entrepreneur – A Review

A reader recommended Dr. Steven Hacker’s book, The Medical Entrepreneur, to me this summer. I contacted Dr. Hacker and he sent me a review copy. I read 3/4 of it over the next few weeks, and then set it down, only to recently pick it back up and finish it. The Medical Entrepreneur is really two books in one. The first is a guide for a graduating resident who wishes to go into solo practice. … Continue reading

Should you make an “all cash” offer?

[Editor’s Note: This is a guest post from Eris Saari, President of AmeriFund Home Mortgage, LLC based out of New Jersey. He has been doing residential mortgage lending for 25 years. We have no financial relationship.] Let’s say you’ve started looking for a home. At some point, your realtor may say, “If you really want the house, you should make an all cash offer!” What does that mean – you come to the closing with … Continue reading

Real Estate as a College Savings Tool

As regular readers may or may not know, my main college savings tool is Utah’s excellent 529 plan, with funds in the plan invested very aggressively (50% international and 50% small value.) There are other, inferior ways to save for college, each of which has their own issues, including taxable accounts (high taxes), UGMAs (loss of control,) Coverdell ESAs (low contribution limits and no state tax break,) and even cash value life insurance (low returns.)  … Continue reading

Not All Target Retirement Plans Are Created Equal

[Editor’s Note: This is my favorite kind of guest post. If I could get enough posts like this I’d quit writing myself. I solicit these all the time, but rarely get them. This is written by a regular WCI reader, well-researched, and well-written. Joshua Lerner, MD, is an emergency physician and a blogger, although he blogs about his dog and photography rather than personal finance and investing. We have no financial relationship. Enjoy the post … Continue reading

I Forgot to Save For Retirement Part 2

This is part 2 of this post. In part 1 I introduced the topic and gave the first three suggestions for those who have undersaved and are nearing retirement with not nearly enough money to support their desired lifestyle. In this post, I continue with solutions # 4-13. Solution # 4 Move! This one seems dramatic, of course, but can be very beneficial, despite the cost of moving, especially if you’re moving to a community … Continue reading

I Forgot to Save For Retirement!

This is the first of a two part series dealing with the high earner who finds himself just a few years away from retirement with not nearly enough money to have the retirement he would like. This could be for many reasons. It could involve a late entry into medicine, a costly personal or professional divorce, making poor investment choices, having your money grow too slowly due to an incompetent or overly costly advisor, poor … Continue reading

Putting All Your Eggs In One Basket

Thanks to a post a Boglehead made, I recently became aware of a company called GT Advanced (ticket symbol GTAT.) I’ve apparently owned a tiny amount of stock in this company for several years (along with stock in thousands of other companies.) This company was apparently making something called Saphire Crystal, which was going to be used in the iPhone 6 and 6 Plus. Except then Apple decided not to use it. GTAT subsequently went … Continue reading

Not All Who Wander Are Lost Part 2

[Editor’s Note: Yesterday, Dr. Mom, a regular WCI reader and commenter who wishes to remain anonymous, shared her family’s financial journey to relative wealth. Today, she continues her post with some tips for readers. We have no financial relationship.] Now that you have had a chance to comment on our financial lives, here are the points that are most important to me.  They are vastly more personal than financial.  Remember that in personal finance, the … Continue reading

Not All Who Wander Are Lost Part 1

[Editor’s Note: This is the first post of a two part guest post from frequent blog commenter “Dr. Mom,” a female physician who wishes to maintain her anonymity for now. The title is hers, and since I like Tolkien at least as much as she does, I kept it. We have no financial relationship.] This guest post is in response to requests from several regular blog readers.  WCI was gracious enough to humor them and … Continue reading