Finance – Page 20 – Physician In Numbers

What I Do Every New Year’s For My Finances

Every year for over a decade, I have taken time around the turn of the year to do the following:

Calculate my net worth
Review and categorize my spending
Write down goals for my money, and decide how I will fund them.

I recommend this as a yearly exercise for those who want to keep an eye on their money.

This year, thanks to my travel plans, I got to this a little later than usual. I thought I would go through the process here for you.

Can I Still Afford to Max Out My Retirement Savings?

I recently received an e-mail from work, reminding me that for 2019, the maximum pre-tax contribution to the 403(b) has gone up. For those under 50, it has increased from $18,500 to $19,000; for those 50 or older (including those who turn 50 in 2019), the maximum has gone from $24,500 to $25,000.

I was reminded–yet again–that turning 50 is a special time. As a PCP, I usually have other issues on the brain when thinking about this landmark year.

A Tale of Two New Cars, Part 2

A few years ago, my extended household saw the purchase of two new cars. The two purchases were very different in many ways, and I thought it might be worthwhile reviewing the experiences, with the hopes the comparison might be entertaining, and maybe educational.

Two weeks ago I wrote I about my step-son’s experience buying his first car on his own. He had a few difficulties, mostly related to his youth, lack of savings, and lack of credit history. My car purchasing experience offers a definite contrast.

A Tale of Two New Cars, Part One

A few years ago, my extended household saw the purchase of two new cars. That’s right: two new cars. Shocking to those who read financial blogs!

The two purchases were very different in many ways, and I thought it might be worthwhile reviewing the experiences, with the hopes the comparison might be entertaining, and maybe educational.

In Search of the Two-Fer

In medicine, I love to sell my patients on the “two-fer,” those lovely medications that have more than one benefit: this medication will help your migraines and help with weight loss! This one will lower your sugar and help regulate your periods! This pill can protect you from a heart attack and lower your risk of colon cancer! I can’t always get them to take their meds, but this always feels like I am getting them a deal.

[As a reminder, please do not construe the above as medical advice. Medication choice is something you should discuss with your own physician, who knows you; not something you do based on what a stranger types on the Internet.]

In life, there are other two-fers.

Get Credit For the Work You Do

Any resident who joins me in clinic will hear me talk about billing. It isn’t the most important thing I can teach them–seeing a variety of medical issues, learning nuances of outpatient medicine, practicing efficiency: these are what they want to learn, and what they should learn. However, I had little education on billing as a resident, which really came back to bite me in my first job, and I would like to help them avoid this in their own practice.

If you know how you get paid (which you should!), you need to make sure you get paid appropriately. I think it’s also important for employees to get credit if they are working hard. My first job became quite unpleasant after a few years, mostly due to my ignorance of proper medical billing practice.

The YOLO Chair

In the corner of my parents’ living room sits a large armchair, Louis XV style. It’s my father’s chair, generally speaking no one else sits in it, unless one of the cats sneaks in. It’s quite handsome, and guests frequently remark on it.

My mother tells the story of how they acquired the chair:

Know How You Get Paid

Something that I see written about frequently–and will likely write more about myself–is saving your money. As attendings, we doctors are paid pretty darned well, and ought to be able to live within our means, while also saving for retirement. However, some of the numbers offered as reasonable physician income are far higher than what an average primary care physician or internist can reasonably be expected to earn.

While it is reasonable to find savings to put away by spending less, another strategy is to make more. Working hard at your job, or negotiating better terms on a contract, are important factors to earning more. What I’d like to write about today is knowing where your money is coming from. That can help you make smarter choices about where you want to put your effort, possibly helping you get paid for work you are already doing.

One Doctor’s Retirement, 20 years later

In my prior post, I wrote about my father’s career and retirement preparations. He retired just over 20 years ago, and from what I can see, had a pretty good time.

Over the years we have talked about finances, and though I haven’t announced firm plans to retire early, I think he can tell I am thinking about it. He has been giving more advice recently, mostly to keep working.

I thought I would share some of his recent advice, and some of my observations of his two-decades-long retirement, which I hope will go another decade more.

One Doctor’s Retirement

My office mate is just starting out, and seems overwhelmed by finances. When I mentioned my father was a retired physician, and had retired well, she was very interested in how he had managed that.

I asked him this weekend, and got a shorter-than-expected answer. In many ways, the answer is very simple: save money and invest it. I will embellish the answer and see if it might be illuminating.