What's Your White Coat Net Worth?

What's Your White Coat Net Worth?

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".

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How Much Can a Resident Save? 6 Steps to $80,900

How Much Can a Resident Save? 6 Steps to $80,900

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...

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Retirement 101: The "Pro-Rata Rule"

Retirement 101: The "Pro-Rata Rule"

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.

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Income Too High for Roth IRA? Don't Forget the Backdoor!

Income Too High for Roth IRA?  Don't Forget the Backdoor!

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.

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Retirement 101: Pay Yourself First (PYSF)

Retirement 101: Pay Yourself First (PYSF)

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.

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Mega Backdoor Roth IRA Without a High Income? Yes I did!

Mega Backdoor Roth IRA Without a High Income? Yes I did!

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...

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Why I Started a 457 Plan

Why I Started a 457 Plan

A while back, I shared with you Why I Opened an SEP IRA.  Recall that part of the reason I went with the SEP IRA was because I was told that my employer had discontinued the 457 plan.  As it turns out, that wasn't the case.  We simply transitioned away from a third party provider who was administering the 457 plan.  Long story short - the 457 plan was still available.  Let me tell you why I signed on...

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Retirement 101: Know Your Tax ______ Plans

Retirement 101: Know Your Tax ______ Plans

In my daily conversations with medical colleagues, I often toss around certain terms without explaining them fully - 401k, 403b, 457, IRA, HSA, 529 etc.  The reason why these particular number-letter combinations come up so often is because tax advantaged investment plans are by definition better than regular old taxed investment plans - unless you really like paying taxes.  But even tax advantaged investment plans are not all created equal.  Let's hit the basics and discuss the differences between tax _______ investment plans.

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PMD: Are You Financially Future Proof?

PMD: Are You Financially Future Proof?

"Future Proofing" is the process of anticipating the future and developing products/services that will withstand the demands of that anticipated future.  We all future proof on a daily basis - we eat in anticipation of being hungry, pay the electric bill in anticipation of darkness, bring an umbrella in anticipation of rain, etc.  In fact, one of the biggest shifts in healthcare recently has been all about future proofing - "preventative care."  Here are 5 steps to answer the difficult question - are you financially future proof?

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PMD: A Simple Stepwise Approach to Retirement Savings

PMD: A Simple Stepwise Approach to Retirement Savings

Welcome to this week's Future Proof post on Physician's Money Digest (PMD).  Today we are featuring a classic from the Future Proof archives, updated for PMD readers.  If you are visiting this site, you probably have thought about retirement, maybe even early retirement.  Let me share with you my method in A Simple Stepwise Approach to Retirement Savings.  An excerpt is provided below. 

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