Finance for Physicians

By Daniel WrenneBusiness Education Self-Improvement Investing

Finance for Physicians episodes

June 17, 2021Special Needs Planning Basics
How can special needs planning positively change your family’s life when you have a child or children with a disability? It really depends on their needs, so map out the plan for them.
In this episode of the Finance for Physicians Podcast, Daniel Wrenne talks about the basics of special needs planning and available tools.
Topics Discussed:
Worst Case Scenario: Unexpected death or disability
FAQs:
Who is going to take care of my child or adult with a disability?
How will they know how to take care of my child with a disability?
Will my child have enough financial support for lifetime care?
How do I save for my child with a disability?
Tools:
Will is a legal document that names a guardian and outlines care needs
Letter of Intent (LOI): Document that outlines key components of care
Special Needs Trust: Direct funds to child’s care; get government benefits
Change beneficiary designations to reflect the special needs plan
Communicate plan with identified and designated beneficiaries
Create ABLE account to save for qualified expenses for disabled children
Links:
Letter of Intent (LOI) Template
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Finance for Physicians
23 min
June 10, 2021How Laura Yost is Living a Richer Life
How do you plan for a child who has a disability? Overcome the initial fear and concern for the unknown and focus on the positive blessing they are to your family. Learn to live a fuller and richer life by turning lemons into lemonade.
In this episode of the Finance for Physicians Podcast, Daniel Wrenne talks to Laura Yost, who is married to an internal medicine physician. They have four children. The youngest, Scarlett, has Down’s Syndrome.
Topics Discussed:
Lemonade Stand: Where teamwork and kind people give back to the community
Blessing or cross to bear? Biggest challenge is lack of support, misconceptions
Step in the right direction? Only willing to go where Scarlett’s welcomed, wanted
Before and After: Reality of what it means to have a child with Down syndrome
Guilty: Parents blame themselves for allowing their child to have Down syndrome
Healthwise: 50% of babies with Down syndrome have a heart defect, not Scarlett
Learn to Exist: What do I do and how do I do it to help my child live their best life
The Lucky Few: Scarlett is a gift, treat her that way and not as a burden
Growth Mindset: No pressure to be perfect; learn to do your best, make progress
Money doesn’t buy happiness, but makes life better and easier up to a point
Inclusion: Best education for kids with disabilities and their same-age peers
Links:
Down Syndrome Association of Central Kentucky (DSACK)
The Lucky Few
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Finance for Physicians
54 min
June 03, 2021Investing in Digital Gold
Have you heard of digital gold? What is it? How does it work? What should you consider when investing in bitcoin and other cryptocurrencies? Proceed with caution because the excitement over it can be potentially dangerous.
In this episode of the Finance for Physicians Podcast, Daniel Wrenne talks to Chase Branham from Kraken, a big player in the bitcoin industry that buys, sells, and trades cryptocurrencies.
Topics Discussed:
Cryptocurrency Timeline: How, when, what, and why Chase got hooked
Basics of Bitcoin: Created in 2008 via anonymous white paper about Blockchain
Blockchain: Computer network transfers money without a central authority
Supply and Demand: Bitcoin is limited in supply but high in demand - like gold
Price Swings: Value and use drives volatility and speculation of peaks, crashes
Comparison Mistake: Bitcoin is a form of currency, not an investment (stocks)
Profit and Pain: Bitcoin price drops are to be expected and without precedent
Future of Cryptocurrency: Expected to become preservation of purchasing power
Links:
Chase Branham on LinkedIn
Kraken
Coinbase
Blockchain
QBTC: Bitcoin Fund Overview
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Finance for Physicians
47 min
May 27, 2021How to Become a Millionaire
Who doesn’t want to make lots of money and keep up with the Joneses? Build wealth by reading the book, The Millionaire Next Door: The Surprising Secrets of America’s Wealthy.
In this episode of the Finance for Physicians Podcast, Daniel Wrenne talks about what his planning firm clients do to successfully yield results. Then, make your own adjustments accordingly. It’s not all and always about money.
Topics Discussed:
The Book: Based on scientific research of actual and suspected millionaires
The Timeframe: Released in 1996, authors’ definition of millionaire has changed
The Profile: Optimal combination of factors that make millionaires
The Combination: Higher income and frugal habits to play offense and defense
The Facts:
80% are first-generation millionaires
20% are retired
50% own their own business
Common Characteristics and Denominators:
Live well below your means by tracking your cash flow
Manage your money, time, and energy more efficiently
Believe financial or job independence is more important than social status
Avoid economic outpatient care—when parents support/subsidize lifestyle
Choose the right occupation/profession
Links:
The Millionaire Next Door: The Surprising Secrets of America's Wealthy by Thomas J. Stanley and William D. Danko
Monthly Net Worth Tracker
How To Avoid Lifestyle Creep
Why I Drive an 18-Year-Old Car
All the Money in the World Movie
Monthly Cash Flow Tracker
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Finance for Physicians
33 min
May 20, 2021Time to Refinance Your Mortgage… Again
Is it time to refinance your mortgage...again? Why should you think about refinancing, why it’s beneficial, and what recent changes save you money and interest on your mortgage loan?
In this episode of the Finance for Physicians Podcast, Daniel Wrenne talks about refinancing your mortgage. The ultimate goal is to pay your mortgage off and capitalize on paying the lowest amount of interest on such debts.
Topics Discussed:
Why would you want to refinance now? Record low mortgage and interest rates
What has changed recently? Home prices have increased significantly
Why is that linked to refinance? As home price increases, you build equity
Other Changes: More competitive jumbo loan rate alternatives for certain lenders
Life Changes: Credit scores, monthly costs, and available cash flow
Real-Life Examples: What leads to lower interest rates/payments, better deals?
Does refinance make sense? Compare points/credits, terms, closing costs, rates
Key Takeaway: If you have a mortgage rate above 3.5%, think about refinancing
Links:
Better Mortgage Rates
Better Refinance Calculator
Zillow Home Price Changes
Why Jumbo Mortgage Rates Make No Sense Right Now (from August 2020)
Finance for Physicians: How to Capitalize on Record Low Mortgage Rates
Finance for Physicians: What is a Physician Mortgage with Richard Ricci
Finance for Physicians
38 min
May 13, 2021Mo Money, Mo Problems
Do you remember the late Notorious B.I.G.’s song, Mo Money Mo Problems? Physicians can probably relate to it. On the flip side, some people believe that having more money makes you benefit from fewer problems.
In this episode of the Finance For Physicians Podcast, Daniel Wrenne talks to Jeff Wenger, a Certified Financial Planner (CFP®), about how making more money often leads to more problems.
Topics Discussed:
Does money make you happy? Depends on how you define problems
$1 or $1 Million: More money makes simple things complex choices, decisions
More assets means more checking, savings, credit card accounts go unclaimed
Temptation: Easy to add something, but more painful to take something away
What happens to your money? Be responsible and organized; not out of control
Perceived Target: Doctors are rich, even residents with $400,000 in student loans
Moral of the Story: Use money to improve and have less problems, happier life
Slippery Slopes: Choose wisely between buying nice things or being generous
Time: More money can buy time to prioritize and outsource tasks, responsibilities
Links:
Jeff Wenger on LinkedIn
Wrenne Financial Planning
Finance For Physicians
38 min
May 06, 2021Throw Out the Rent Versus Buy Rules of Thumb
Are you buying or renting? What are the perks of being a homeowner? Think through and focus on both financial and non-financial reasons.
In this episode of the Finance For Physicians Podcast, Daniel Wrenne talks about the rules of thumb when deciding whether to buy or rent a home.
Topics Discussed:
Why buy? Live in it 3-5 years to break even and recoup upfront transaction costs
Why rent? The best option if you plan to live there only a couple of months or years
Numbers: Mortgage closing, realtor commissions, improvement costs, and ROI
Taxes: Deduct ownership expenses; can’t deduct property/mortgage insurance
Insurance: Renter’s insurance is less expensive than homeowner’s insurance
Homeowners’ Association (HOA) Fees: Added costs for homeownership
Uncertainty and Overestimation: Bias of living in a home longer than expected
Lifestyle Creep: Living beyond your means and not analyzing home prices
Headache Factor: Rent-not your problem; buy-home ownership increases issues
The joy of Ownership: Cultural and cool factors to owning your own home
Renting: Gets old not being able to do what you want with your place
Rent vs. Buy Examples:
2362 Heather Way, Lexington, KY
8704 Grand Ferry Dr., Austin, TX
Links:
Real Estate Home Price Indexes
Price To Rent Ratio
Austin Rental Example
Lexington Rental Example
Research on Renting vs Buying
Finance For Physicians
34 min
April 29, 2021Why is Permanent Life Insurance Such a Terrible Short Term Investment
Does permanent life insurance make sense or not? Is it the right or wrong short-term investment?
In this episode of the Finance For Physicians Podcast, Daniel Wrenne talks about what you should look for and avoid to navigate the purchase of permanent life insurance.
Topics Discussed:
Permanent Life Insurance Components: Cash value and death benefit
How does buying permanent life insurance compare to term life insurance?
Agents: People who push, play with permanent life insurance costs/commission
Worst Case Scenario: Buying permanent life insurance for one year
Best Case Scenario: Worst year for investment alternative to break even
Buy term, invest the difference for credit card debt and emergency reserves
Buy permanent life insurance when long-term tax savings outweigh cost and time
Key Takeaway: Get a second opinion to understand complexity, conflict of interest
Links:
Dave Ramsey
TIAA-Cref
Tax Shelter
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Finance For Physicians
35 min
April 22, 2021What Type of Life Insurance Should You Own?
Life Insurance: How does it work and do you really need it? Are you worth more or less alive or dead? What you need to know to protect yourself and your loved ones.
In this episode of the Finance For Physicians Podcast, Daniel Wrenne talks about what type of life insurance you should own. When you are young and healthy, cover your life or earning potential because the risk of untimely death happening is extremely low, but the costs of income loss are extremely high.
Topics Discussed:
Life Insurance Recommendations: Understand conflicts, know what to look for
Why get it? Tomorrow isn’t guaranteed, avoid leaving family in a financial pinch
When to get it? Before you urgently need it, when everything is good
How much does it cost? Depends on health and age
How much will you need? Enough, but always told to buy more
How long will you need it? Longer the lock-in period, the more expensive
Insurance Industry: Agents receive a high percentage of premiums for policies
Advisor vs. Agent: What are the differences? Incentives? Disincentives?
Coverage Calculations: Identify the correct amount of death benefits based on goals
Types of Life Insurance Coverage:
Human Life Value: Wrongful death determines lost earnings
Financial Need Analysis: Maintain specific lifestyle, goals, assets, liabilities
Term Life: Temporary death benefits for a set time period
Permanent: Combines cost of term plus investment component
Conditional: Secure coverage immediately before underwriting
Links:
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Finance For Physicians
52 min
April 15, 2021 How to Use Real Estate to Build Wealth
Even with your own home, have you noticed that real estate prices have been a bit hectic? How do you build wealth with real estate? Not with your primary residence.
In this episode of the Finance For Physicians Podcast, Daniel Wrenne talks about real estate as an investment outside of your primary residence. You are building wealth with your home, but it is hard to realize that wealth.
Topics Discussed:
Real Estate Market Prices: Massive increases in short periods of time
Crazy Market: What are the reasons? Nobody really knows underlying causes
Supply and Demand: Low supply and high demand drives up real estate prices
Why is demand high? People still want to buy or invest in real estate
Why is supply low? Cautious builders, lumber costs, lack of skilled labor, rules
Real Estate Investing - Alternative approaches to make money:
Appreciation: Own property that increases in value
Rent: Own property that is rented out to others to generate income
Loan: Charge interest on money loaned for real estate deals
Ways to Own Real Estate: Short- or long-term rentals, flips, multi-units, raw land
Real Estate Responsibilities: Do you want to be an investor or more involved?
Why people write/talk about real estate: Hype, interest, and money to be made
Big Benefits: Diversify, passive income, tax shelters, and better returns
Downsides: Time, dealing with people, risks, returns, complexity, and alternatives
Purpose: Why do you want to invest in real estate and build a portfolio?
Links:
Real Estate Investment Trust (REIT)
VRBO
Airbnb
Finance For Physicians
44 min

About Finance for Physicians

From the publisher's feed

The goal at Finance for Physicians is to help you use money as a tool to live a great life, on your own terms. Daniel Wrenne, podcast host and CEO of Wrenne Financial Planning, has spent the last…