If you are a medical student, resident or young physician, sooner or later you will be approached about disability insurance. In fact, you may have already been bombarded by agents. How do you discern great advice from potential pitfalls? Here are some classic misconceptions when it comes to disability insurance:Read More
Welcome to this week's Future Proof post on Physician's Money Digest (PMD). Today's feature is a selection from the Future Proof archives. Life insurance is an important part of your asset protection and financial planning. Hopefully by the end of this short read, you will learn why you should "just say no to whole life." Read the full post at PMD or visit the original post on Future Proof, MDRead More
We live in an amazing world of constant information, sometimes it can get overwhelming. "Future Proof Shares" is a weekly series with the goal of selecting a few interesting pieces of media on money and medicine from around the Interwebs. They may be old or new but will always be new to me. This series is inspired by "The Sunday Best" by my fellow physician money blogger Physician on FIRE (PoF). Enjoy!Read More
American Medical Association (AMA) is the nation's largest and oldest professional association for physicians. No matter what you may think about the politics of the AMA, if you went through medical education in the US, there is a good chance that you have been a member at some point in your medical training. Heck, I don't remember ever signing up but somehow I still get a membership card in the mail every year! Turns out there are financial benefits to being a member of the AMA.Read More
I had several inquiries from readers regarding which life insurance is the best option for them. Instead of answering each question individually, I opted to write this post. By the end of this short read, you should have the answers to the following 2 questions:
- Do you need life insurance?
- Should you get “term” or “whole” life insurance? Hint: You should ALMOST NEVER buy whole life insurance.
Continuing our series of book reviews, today we take a look at “Doctor’s Eyes Only: Exclusive Financial Strategies for Today’s Doctors and Dentists” by Tom Martin, Paul Larson and Jeff Larson. The authors bill it as “the missing financial guide that physicians need as a supplement to their ongoing professional training. These pages include basic financial wisdom that could end up saving you millions of dollars throughout your medical career.” Let’s see if they succeeded in that claim…Read More
In my previous post Health Savings Account (HSA): Your Secret Retirement Plan, I discussed the many benefits of an HSA plan and why it might be a good tax-advantaged alternative to traditional retirement plans. The biggest benefits are:
- Double tax-advantaged: your deposits and withdrawals (if used for healthcare expenses) are not taxable.
- Potential growth if you invest the funds in your HSA account. Of course, the flip side of that is you can also lose your money on a bad investment.
- Unlike a Flexible Spending Account (FSA), the money in your HSA account is yours to keep even if you don't spend it all in a year.
At the time of the original posting, I personally did not have an HSA plan available through work. Since then, my employer decided to offer an HSA insurance option for 2016. Let's use this opportunity to examine whether it would be in my financial benefit to take advantage of this new option.Read More
Physician trainees are increasingly targeted by financial professionals. There are several reasons why we are an attractive demographic to the financial services industry:
- We have a poor understanding of finances due to lack of time, therefore in need for financial advice.
- We have high future earning potential and presumably will have disposable income for financial products and services.
- We are incredibly loyal - just think of that physician you know who only prescribes one brand of statins.
And unless you have an excessive amount of free time (unlikely) or a burning desire to learn about managing your money (that's me), you can benefit from a personal financial advisor. The real question is - how do you pick one?Read More
Everyone's got bad habits. Unfortunately how we deal with money can have serious implications in life. Below are 5 bad money habits that help explain why some high-income earning white coat professionals never achieve financial independence. They are in no way exclusive to our career choice but we are definitely not immune, myself included.Read More
Insurance has always been a funny concept to me - why am I paying for something I'm hoping NOT to use!? But it's precisely those "god forbid" and "what if" situations that support the behemoth insurance industry. If you have ever been in a car accident, you'll understand. In the next few minutes, I hope to discuss with you and convince you why you should have Disability Insurance (DI) now.Read More