In this new episode, we delve into the nuanced world of financial planning tailored specifically for physicians. We tackle the intricate challenges and opportunities that come with high-performing stocks like Tesla, navigate the complexities of tax implications associated with practice buy-in loans, and explore robust investment strategies perfect for young doctors.

We start with an engaging case study on managing a substantial gain in Tesla stocks, highlighting the importance of diversification and understanding the tax consequences of selling high-gain stocks in states like New York. Moving forward, we demystify the tax intricacies of practice buy-in loans, emphasizing the need for meticulous planning and collaboration with a knowledgeable CPA. Finally, we present tailored investment strategies for young physicians, comparing various options and emphasizing disciplined saving habits and tax-advantaged accounts.

Key Takeaways:

1. Financial Planning for High-Performing Stocks:

- Case Study: A physician's significant gain from Tesla stocks.

- Importance of diversification and strategic reallocation.

- Tax implications of selling high-gain stocks in high-tax states like New York.

- Real-life example involving Apple stocks and strategic moves for tax-free gains in Roth IRAs.

2.Tax Implications of Buy-in Loan Payments:

- Understanding the deductibility of interest payments versus principal payments on practice buy-in loans.

- Potential tax surprises from using practice profits to pay off loans.

- Importance of working with a CPA to ensure accurate tax projections and avoiding phantom income issues.

3.Investment Strategies for Changing Life Circumstances:

- Comparing defined benefit pension plans with other investment options.

- Evaluating risk tolerance and investment horizons for young physicians.

- Importance of disciplined saving habits and making the most of tax-advantaged accounts like HSAs and 401(k)s.

- Case studies on managing significant life events and maintaining financial stability.

5.Investment Strategies for Young Physicians:

- Weighing aggressive investment strategies, such as a static 90-10 asset allocation.

- Benefits and risks of deviating from target date funds.

- Importance of understanding long-term financial goals and maintaining investment discipline.

Call to Action:

If you’re a physician navigating financial complexities, don’t miss this episode packed with valuable insights. Subscribe to the Physician Family Financial Advisors podcast for more expert advice tailored to your unique needs. For full disclosures and additional resources, be sure to check out the show notes.

ARE YOU GETTING ALL THE TAX BREAKS YOU REALLY DESERVE?

To find out, get your copy of The Overtaxed Doctor's Retirement Investing Checklist at https://physicianfamily.com/go

GOT A QUESTION?

Write to us at podcast@physicianfamily.com.

NOTICE

Physician Family Financial Advisors Inc., a registered investment advisor, has reasonable belief that the information and content as a whole does not include any false or materially misleading statements or omissions of facts regarding services, investments, or client experience. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and unless otherwise stated, are not guaranteed. Information expressed does not take into account the specific situation or objectives of individuals and is not intended as recommendations appropriate for all individuals. Listeners are encouraged to seek advice from a qualified tax, legal, or investment adviser to...

In this insightful episode, we delve into the multifaceted world of financial planning for physician families. Hosts Nate Reineke and Ben Utley provide expert advice on navigating home building, real estate transactions, and investment strategies, all tailored to the unique needs of medical professionals. From addressing the emotional and financial aspects of accommodating aging parents to leveraging financial tools for seamless home transitions, this episode is a treasure trove of practical wisdom. Whether you’re planning for college savings or securing disability insurance, tune in to gain the knowledge needed to make well-informed decisions that balance family needs with long-term financial goals.

Key Takeaways:

1.Balancing Home Building and Retirement Plans:

• Consider the emotional and logistical feasibility of accommodating aging parents before deciding to build a larger home.
• Be wary of overbuilding in a neighborhood, which could impact the home's resale value.
• Real-life examples highlight the unexpected costs and challenges of home renovations.

2.Strategic Home Buying and Selling:

• For families relocating, especially those with dual incomes in the medical field, explore financial strategies like HELOCs, bridge loans, and rent back agreements.
• The importance of working with flexible mortgage brokers and knowledgeable real estate agents to navigate complex transactions is emphasized.

3.Investment Strategies and College Savings:

• Individualized investment approaches are crucial for planning significant financial goals like college savings.
• Understand the risks and prepare for worst-case scenarios, especially given the fixed timeline and financial uncertainties of funding education.
• Secure adequate disability insurance with future benefit options to align coverage with income growth and long-term goals.

Call to Action:

If you’re a physician navigating financial complexities, don’t miss this episode packed with valuable insights. Subscribe to the Physician Family Financial Advisors podcast for more expert advice tailored to your unique needs. For full disclosures and additional resources, be sure to check out the show notes.

ARE YOU GETTING ALL THE TAX BREAKS YOU REALLY DESERVE?

To find out, get your copy of The Overtaxed Doctor's Retirement Investing Checklist at https://physicianfamily.com/go

GOT A QUESTION?

Write to us at podcast@physicianfamily.com.

NOTICE

Physician Family Financial Advisors Inc., a registered investment advisor, has reasonable belief that the information and content as a whole does not include any false or materially misleading statements or omissions of facts regarding services, investments, or client experience. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and unless otherwise stated, are not guaranteed. Information expressed does not take into account the specific situation or objectives of individuals and is not intended as recommendations appropriate for all individuals. Listeners are encouraged to seek advice from a qualified tax, legal, or investment adviser to determine whether any information presented may be suitable for their specific situation. Past performance is not indicative of future performance.

In this episode of the Physician Family Financial Advisors podcast, hosts Nate Reineke and Ben Utley, both Certified Financial Planners, delve into a variety of financial strategies tailored specifically for physician families. They explore how to maximize the safety and returns on extra cash by examining different investment options such as U.S. Treasuries, T-bills, ultra-short-term bond funds, ETFs, CDs, and high-yield savings accounts. Through real-life stories, including a cautionary tale from Reddit, they offer practical advice on maintaining liquidity while earning interest without the hassle of trading complexities.

The episode also covers essential tax strategies and financial planning tips. The hosts discuss the pros and cons of private family foundations, the intricacies of 401(k) vesting schedules, and the importance of consulting financial advisors when changing jobs. They provide insights into lump sum investing versus dollar cost averaging, helping you make confident financial decisions.

Join us for an episode packed with expert advice and actionable tips to help physician families achieve financial peace of mind.

Key Takeaways:

1.Financial Safety and Investment Options:

• U.S. Treasuries and T-bills: Safe but complex due to trading requirements.
• Ultra-Short-Term Bond Funds & ETFs: Simplified alternatives with minimal fees.
• CDs & High-Yield Savings Accounts: Easy-to-access options for maintaining liquidity and earning interest.
• Real-Life Example: A Reddit user's mistake highlights the risks of trading T-bills directly.

2.Tax Strategies and Charitable Giving:

• Private Family Foundations: Potential tax benefits but suitable only for those with significant funds and genuine donative intent.
• Tax Avoidance Schemes: Caution against complex strategies requiring tax attorneys; they can be risky and attract IRS scrutiny.
• 401(k) Vesting Schedules: Understand the vesting timelines to avoid forfeiture when changing jobs.
• Consult Financial Advisors: Essential during job transitions to optimize financial opportunities and avoid pitfalls.

3.Investment Planning and Decision-Making:

Importance of a Financial Plan: Serves as a personal compass to prevent emotional and reactionary financial decisions.

4.Lump Sum Investing vs. Dollar Cost Averaging:

• Lump Sum Investing: Generally yields better returns but may not be suitable for risk-averse individuals.
• Dollar Cost Averaging: Provides emotional comfort and is better for those new to investing or concerned about market volatility.

5.Psychological Impact: Regret can be a significant factor; easing into investments is advisable for less experienced investors.

6.Behavioral Finance Insights:

• Emotional Decision-Making: The importance of understanding your comfort level with investing strategies.
• Market Cycles: Experienced investors may handle lump sum investments better, while newer investors might benefit from spreading out investments.

Closing Thought:

Remember, you’re not just making a living, you’re making a life. Join us next time for more insights and tips to help you achieve financial peace of mind.

Thank you for listening to the Physician Family Financial Advisors podcast!

ARE YOU GETTING ALL THE TAX BREAKS YOU REALLY DESERVE?

To find out, get your copy of The Overtaxed Doctor's Retirement Investing Checklist at https://physicianfamily.com/go

GOT A QUESTION?

Write to us at podcast@physicianfamily.com.

NOTICE

Physician Family Financial Advisors Inc., a registered investment advisor, has reasonable belief that the information and content as a whole does not include...

Find the secrets to optimizing your retirement and investment strategies with our latest episode! Discover why solo 401(k) might outshine SEP IRAs for self-employed physicians, especially if backdoor Roth conversions are on your radar. We'll also guide you through the critical decision-making process around contributing to 457(B) plans, dissecting the key differences between governmental and non-governmental options and the potential risks associated with each.

Our conversation doesn’t stop there. Learn from real-life scenarios about the pitfalls of non-governmental 457(B) plans and explore smart alternatives like brokerage accounts. With insights from Chelsea Jones, our Certified Financial Planner and Retirement Planning Specialist, we delve into the advantages of cash balance plans for both older and younger doctors. Whether you’re nearing retirement or just starting out, this episode is packed with expert advice to help you navigate your financial future with confidence. Don’t miss this chance to get ahead on your retirement planning!

Key Takeaways:

1. Solo 401(k) vs. SEP IRA:

• Recommendation: Solo 401(k) is generally better than SEP IRA for self-employed physicians, especially for those considering backdoor Roth conversions.
• Reason: Solo 401(K) allow for higher contribution limits and do not block the backdoor Roth strategy, unlike SEP IRAs.

2. Governmental vs. Non-Governmental 457(B) Plans:

• Governmental 457(B) Plans: Highly recommended due to their tax advantages and flexibility.
• Non-Governmental 457(B) Plans: Generally advised against due to risks of forfeiture and limited flexibility. Instead, consider using brokerage accounts for additional savings.

3. Pitfalls of Non-Governmental 457(B) Plans:

• Risk of Forfeiture: Your money could be at risk if the company offering the plan goes bankrupt.
• Tax Implications: Upon leaving the job, the distribution could lead to a high tax burden if not managed properly.

4. Cash Balance Plans:

For Older Doctors Nearing Retirement:

Advantages: Allows significant pre-tax contributions and potential tax savings upon withdrawal.

• Strategy: Can offer a guaranteed return, typically around 4%, making it a great option for those close to retirement.

For Younger Doctors:

• Considerations: Weigh the benefits against those of a brokerage account. Factors such as time horizon, rate of return, and tax implications are crucial.
• Decision Point: Around age 40, the decision to opt into a cash balance plan becomes more nuanced.

5. Rollover IRA vs. Backdoor Roth:

• Managing Rollover IRAs: A small balance can be converted to open up the possibility for backdoor Roth contributions.
• Alternative Strategy: Consolidate rollover IRAs into an active 401(K) or 403(B) to facilitate backdoor Roth contributions without immediate tax implications.

Transcript Samples From Key Chapters:

Chapter 'Retirement and Investment Planning Advice:

• Discussion on the pros and cons of SEP IRA vs. solo 401(k) for self-employed physicians.
• Examination of governmental vs. non-governmental 457(B) plans and their associated risks.

Chapter 'Rollover IRA Versus Backdoor Roth:

• Real-life scenarios illustrating the challenges with non-governmental 457(B) plans.
• Strategies for managing rollover IRAs to enable backdoor Roth contributions.

Chapter 'Optimizing Cash Balance Plan Contributions:

• Detailed explanation of cash balance plans, their guaranteed return rates, and contribution limits based on age.
• Analysis of the benefits for older doctors nearing retirement and strategic considerations for younger doctors.

ARE YOU GETTING ALL THE TAX BREAKS YOU REALLY DESERVE?

To...

On today’s episode we answer more of your questions!

• Are we on track for retirement?
• My mom and dad need a little help with money - how much can I help?
• Is now the right time to upgrade in house?
• Another physician inheritance: what should I do with my extra money?
• I am looking at hiring a financial advisor, what questions should I ask them?
• I keep getting surprised with big tax bills, what am I doing wrong?

ARE YOU GETTING ALL THE TAX BREAKS YOU REALLY DESERVE?

To find out, get your copy of The Overtaxed Doctor's Retirement Investing Checklist at https://physicianfamily.com/go

GOT A QUESTION?

Write to us at podcast@physicianfamily.com.

NOTICE

Physician Family Financial Advisors Inc., a registered investment advisor, has reasonable belief that the information and content as a whole does not include any false or materially misleading statements or omissions of facts regarding services, investments, or client experience. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and unless otherwise stated, are not guaranteed. Information expressed does not take into account the specific situation or objectives of individuals and is not intended as recommendations appropriate for all individuals. Listeners are encouraged to seek advice from a qualified tax, legal, or investment adviser to determine whether any information presented may be suitable for their specific situation. Past performance is not indicative of future performance.

On today's episode we answer YOUR questions!

• Should I stop contributing to my taxable account and 529s if we are going to move in a year?
• How much can we contribute to our grandchildren's 529 accounts without going over the gift limit?
• How much does college cost?
• If I go with Physician Family and you manage my accounts, how will you invest my money?
• Is term life insurance really the only life insurance I need?
• How much life insurance should I buy?
• 
  

ARE YOU GETTING ALL THE TAX BREAKS YOU REALLY DESERVE?

To find out, get your copy of The Overtaxed Doctor's Retirement Investing Checklist at https://physicianfamily.com/go

GOT A QUESTION?

Write to us at podcast@physicianfamily.com.

NOTICE

Physician Family Financial Advisors Inc., a registered investment advisor, has reasonable belief that the information and content as a whole does not include any false or materially misleading statements or omissions of facts regarding services, investments, or client experience. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and unless otherwise stated, are not guaranteed. Information expressed does not take into account the specific situation or objectives of individuals and is not intended as recommendations appropriate for all individuals. Listeners are encouraged to seek advice from a qualified tax, legal, or investment adviser to determine whether any information presented may be suitable for their specific situation. Past performance is not indicative of future performance.

How do I use my 529 to pay for college?

Should I make regular 529 withdrawals or can I leave the 529 money in the account growing tax free as long as possible?

I received a large inheritance, should I pay off my 2.5% mortgage?

Should I count on merit based scholarships?

Should I let my 1-year CD rollover at Alliant or move it to a cash reserves account at Betterment?

How should we save up the down payment for a $2M home purchase?

ARE YOU GETTING ALL THE TAX BREAKS YOU REALLY DESERVE? To find out, get your copy of The Overtaxed Doctor's Retirement Investing Checklist at https://physicianfamily.com/go

GOT A QUESTION? Write to us at podcast@physicianfamily.com.

NOTICE Physician Family Financial Advisors Inc., a registered investment advisor, has reasonable belief that the information and content as a whole does not include any false or materially misleading statements or omissions of facts regarding services, investments, or client experience. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and unless otherwise stated, are not guaranteed. Information expressed does not take into account the specific situation or objectives of individuals and is not intended as recommendations appropriate for all individuals. Listeners are encouraged to seek advice from a qualified tax, legal, or investment adviser to determine whether any information presented may be suitable for their specific situation. Past performance is not indicative of future performance.

On today’s show…

• Is it finally time to pay off my student loans?

• I make $700,000 a year and I want my spouse to work..am I wrong?

• Should I put my college money in cash or 529s?

• Did my $2M home purchase derail my retirement?

• Am I putting too much in my 529?

• New city, new job. Can I wait a while to start saving for retirement while everything is in flux?

• Should I keep my whole life insurance?

• I am retiring in 5-years, should I invest my extra cash or pay off my mortgage?

ARE YOU GETTING ALL THE TAX BREAKS YOU REALLY DESERVE?

To find out, get your copy of The Overtaxed Doctor's Retirement Investing Checklist at https://physicianfamily.com/go

GOT A QUESTION?

Write to us at podcast@physicianfamily.com.

NOTICE

Physician Family Financial Advisors Inc., a registered investment advisor, has reasonable belief that the information and content as a whole does not include any false or materially misleading statements or omissions of facts regarding services, investments, or client experience. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and unless otherwise stated, are not guaranteed. Information expressed does not take into account the specific situation or objectives of individuals and is not intended as recommendations appropriate for all individuals. Listeners are encouraged to seek advice from a qualified tax, legal, or investment adviser to determine whether any information presented may be suitable for their specific situation. Past performance is not indicative of future performance.