Interest rates are super low right now, so learn how to navigate student loans to take full advantage of unique benefits from the federal government. 

In this episode of the Finance for Physicians Podcast, Daniel Wrenne talks about what you can do—given the low-interest rates—in relation to your student loan debt.  

Topics Discussed:

Federal and Private: Student loan types

10-Year Treasury Yield: What drives federal student loan interest rates

Refinance? Not an option with federal student loans

Private Student Loan Rates: Based on financial requirements; no closing costs

Prime and LIBOR: Interest rate indexes are trending down

Considerations: Refinance from federal to private student loans?

One-time Option: You can’t go back—once you’re out, you’re out

Interest Subsidies:

Unpaid: Federal student loans don’t charge interest on existing interest balance

RePAYE: At least half of monthly accrued interest that is unpaid, is forgiven by the government

20- or 25-Year Forgiveness: Income-based or income-driven repayment plans where the remaining balance is forgiven at end of the time period

COVID Forbearance: 0% interest and zero-required payments on all loans owned by the federal government

Refinance Waterfall: As you pay off the private student loan, consider a new refinance; shorter the term, better the interest rates

Links:

Historical 10-Year Treasury Yield

Current Federal Student Loan Rates

WCI Student Loan Refinancing

Historical Prime Rate

Common Bond Student Loan Refinance Rates

Public Service Loan Forgiveness (PSLF)

Avoid Leaving Money On The Table With Federal Student Loans

Finance For Physicians

Should you aggressively pay off your federal student loans, or consider Public Service Loan Forgiveness (PSLF)?  

In this episode of the Finance For Physicians Podcast, Daniel Wrenne talks about different financial scenarios, opportunities, and strategies to avoid leaving money on the table when it comes to federal student loans.  

Topics Discussed:

Aggressive Payoff: Low payment in-training (under IBR or PAYE) + high payment in-practice = no PSLF value

IBR/PAYE payment cap can lock in PSLF value even for physicians with ultra high in-practice income or with very low debt balances

Verify current and future employer’s PSLF qualification status

Normal PAYE Payments + PSLF: 120 PAYE payments under the payment ceiling = PSLF Value

PSLF value originates from making qualified payments below the payment ceiling (less is more)

Income driven repayment always lags actual return because it’s based on your most recent tax return AGI

Payments Cap In-Practice + PSLF: PSLF value exists even when you hit the payment cap in-practice

COVID Forbearance counts toward PSLF and adds huge value

Strategies to reduce AGI and increase PSLF value

RePAYE + Exceeding PAYE/IBR Payment Cap: Beware no payment cap

In some cases, you can switch from RePAYE to IBR or PAYE (income must be under a certain threshold)

FFEL and Perkins Loans do NOT qualify for PSLF (however, there are steps to work around this)

Very payments by submitting employment certification (and always double check the math)

Links:

Public Service Loan Forgiveness (PSLF)

Federal Student Aid: Income-Driven Repayment Plans

IRS - Tax Exempt Organization Search

Finance For Physicians

Wrenne Financial Planning

Why are so many female physicians dropping out of the profession? It’s extremely challenging to achieve balance as a physician mom. Not only are you a mom who is raising your own children, but a physician taking care of patients—besides having to deal with gender discrimination issues and the global pandemic.   

In this episode of the Finance For Physicians Podcast, Daniel Wrenne talks to Dr. Bonnie Koo, founder of Wealthy Mom MD. Her business is dedicated to helping physician moms have it all without giving it all. Bonnie empowers physician moms by providing financial literacy through her podcast, coaching, and courses. Also, Bonnie is a board-certified dermatologist, certified life coach, mother, step-mother, and fiancée.     

Topics Discussed:

Wealthy Mom MD: Teaches female physicians financial strategies to overcome

Taboos: Don’t talk about money to handle and deal with anxiety, stress, and guilt

Perfectionism and Money: Female physicians are afraid to fail and lose

Promise Land? Money doesn’t mean physicians live happily ever after

Purpose of Money: Helps you live the life you want and do good in the world

Compensation: Females navigating and negotiating in patriarchal society

COVID and Corporate Medicine: Magnified cracks to figure out money, stability

Financial Independence, Retire Early (FIRE): Money is resource to buy back time

Coaching: Download new software updates to your brain when behind financially

Thought Loops: You are what you think—being on auto-pilot vs. becoming aware

Links:

Wealthy Mom MD

Weathy Mom MD’s Podcast on Negotiation

Guest Post on Miss Bonnie MD: A Woman’s Guide to Becoming Financially Independent

How Perfectionism In Medicine Spills Over Into Your Personal Finances

Finance For Physicians

If you drive a car and/or rent or own a home, do you know how to purchase and save money on home and auto insurance while maintaining adequate coverage?   

In this episode of the Finance For Physicians Podcast, Daniel Wrenne talks to Andrew Wethall, an independent home and auto insurance agent for Energy Insurance Company. Andrew lives in Louisville, Kentucky, but works with customers all over the country. He makes clients’ insurance experiences easier all while maintaining adequate coverage at a fair price.  

Topics Discussed:

Most Common Pitfalls: Re-evaluate insurance every 3 years after residency

Cheapest Option: Understanding the bones policy with state minimum coverage

Basic Auto Policy: Physical damage, comprehensive and collision, liability limits

Agent/Client Relationship: Pay attention to policy and continue to grow

Risks: Insurance works great for high cost and very unlikely risks

Umbrella Policy: Additional liability insurance to cover your assets

No-Fault States: Who's at fault for the accident or damage?

Car Rentals: What should you do when they’re pushing the insurance add on?

Insurance Pricing: Depends on credit, driving record, claims history, act of God

Structure: Differences between homeowner’s and renter’s insurance?

Out-of-Control Catastrophes: Earthquakes and floods are not usually covered

Attractive Nuisance: Umbrella policy for fun things—from pools to trampolines

Denied! Seek multiple opinions and work with an agent to get claims paid

Links:

Energy Insurance Company

Andrew Wethall’s Email

Andrew Wethall’s Phone: 859-797-4384

Andrew Wethall on LinkedIn

Finance For Physicians

Should you pay off debt or invest? It’s a straightforward question.  Yet, the answer is often not so straightforward and really depends on your situation.   

In this episode of the Finance For Physicians Podcast, Daniel Wrenne talks to Jeff Wenger about the proper way to think through this question so that you can begin making more educated decisions about debt and investing. 

Topics Discussed:

Assumptions and Assessment Factors:

What’s more important right now—financial independence or flexibility?

Are you saving enough or have enough to invest or pay off debt?

Mitigate Risks: Why consider return rates, interest rates, taxes, cash flow?

Mortgage Myths: Pre-payments can actually create loss of flexibility with funds

Be strategic: Consider refinancing debts to change the variables in your favor

Financial Stress: What makes you happy versus what makes you worry?

Links:

Jeff Wenger on LinkedIn

Wrenne Financial Planning

Finance For Physicians

What does do-it-yourself (DIY) investment management look like? Taking this route isn’t for everyone. It depends on your situation and personal interest. Just because you can do it, doesn’t mean you should do it. If you want to do investment management yourself, learn how to do it right.

In this episode of the Finance For Physicians Podcast, Daniel Wrenne talks to Dr. Kris Roach, a financial planning client who talks about what it’s like to take this on during his first year of practice. Kris has quickly and accurately implemented high-level investment advice. He’s doing it for the right way for the right reasons.

Topics Discussed:

Investing Knowledge and Experience:

Before: Basic but vague understanding of the stock market

After: Create and execute a financial plan to manage investments

Why follow the DIY vs. professional path? Interest, curiosity, and inherent satisfaction

Getting Started: Commit to learning portfolio process and motivated to achieve

Analysis Paralysis? Plenty of options makes picking perfect funds intimidating

Asset Allocation: Stick with active or passively managed funds, not both

Information Overload: So much, so sort and shortcut through invaluable sources

Time Investment: Takes a few months to set up accounts and select securities

Downturn Temptations: Buy and invest in different stocks? Stick to your plan

Ongoing Tasks: Fund accounts, rebalance, tax law harvesting, invest in the market

Suggestions: If not interested in DIY, find a fiduciary to dedicate time to finances

Fiduciary vs. Financial Advisor: Watch out for wine-and-dine opportunities

 Links:

Bogleheads Investing Advice and Info

White Coat Investor

Finance For Physicians

What does do-it-yourself (DIY) investment management look like? Taking this route isn’t for everyone. It depends on your situation and personal interest. Just because you can do it, doesn’t mean you should do it. If you want to do investment management yourself, learn how to do it right.

In this episode of the Finance For Physicians Podcast, Daniel Wrenne talks to Dr. Kris Roach, a financial planning client who talks about what it’s like to take this on during his first year of practice. Kris has quickly and accurately implemented high-level investment advice. He’s doing it for the right way for the right reasons.

Topics Discussed:

Investing Knowledge and Experience:

Before: Basic but vague understanding of the stock market

After: Create and execute a financial plan to manage investments

Why follow the DIY vs. professional path? Interest, curiosity, and inherent satisfaction

Getting Started: Commit to learning portfolio process and motivated to achieve

Analysis Paralysis? Plenty of options makes picking perfect funds intimidating

Asset Allocation: Stick with active or passively managed funds, not both

Information Overload: So much, so sort and shortcut through invaluable sources

Time Investment: Takes a few months to set up accounts and select securities

Downturn Temptations: Buy and invest in different stocks? Stick to your plan

Ongoing Tasks: Fund accounts, rebalance, tax law harvesting, invest in the market

Suggestions: If not interested in DIY, find a fiduciary to dedicate time to finances

Fiduciary vs. Financial Advisor: Watch out for wine-and-dine opportunities

 Links:

Bogleheads Investing Advice and Info

White Coat Investor

Finance For Physicians

Are you a physician tired of getting ripped off and wanting a fair shake on Wall Street? Rather than getting mad, understand how the financial services industry works. Do the right thing by knowing when and why to hire or fire your financial advisor.  

In this episode of the Finance For Physicians Podcast, Daniel Wrenne talks to Dr. Jim Dahle, a practicing emergency room physician and founder of The White Coat Investor, and Alan Moore, co-founder and CEO of the XY Planning Network about DIY financial planning versus hiring a financial advisor to help. 

Topics Discussed:

Making and Managing Money: Decide to hire help or do-it-yourself (DIY)?

Seeking financial advice: Stigma, status symbol, or too busy

Should a good advisor be saving you time and money? Good advice at fair price

Getting stuff done: Do you struggle to get those not so fun financial tasks done?

]Mental energy: Are you fried and dreading financial chores?

Therapy and Financial Advice: Why financial planning often intertwines the two

Best and Worst Advisors: Compensation, commission, fee, CFP®, fiduciary?

Are you working with a broker or insurance agent posing as a “financial advisor”?

Conflict of Interest: Get a second opinion when pitched permanent life insurance

Financial Advice Future: Financial planning as a profession

Links:

Dr. Jim Dahle - The White Coat Investor

Alan Moore’s Blog

XY Planning Network

10 Ways To Know You Are Competent to DIY Your Investments

FFP Podcast on The Financial Planning Process

FFP Podcast on Advisor Conflicts of Interest

Free DIY Guide To Creating Your Own Financial Plan

Example Comprehensive Written Financial Plan

Quantifying The Value of Financial Planning

Wrenne Financial Planning - Financial Planning Process

Financial Industry Regulatory Authority (FINRA)

National Association of Personal Financial Advisors (NAPFA)

SEC Regulation Best Interest

Feedback Questions

Finance For Physicians

During the holiday season, most people think about generosity, taking care of others, and their faith. Money is mentioned quite a bit in the Bible. What can people learn from Jesus about money?

In this episode of the Finance For Physicians Podcast, Daniel Wrenne talks to Dr. Ben Witherington III about valuable financial lessons taught by Jesus in the Bible that are still applicable to daily life. Ben is a world-renowned Biblical scholar, author, and speaker. Currently, he is a professor at Asbury Theological Seminary.

Topics Discussed:

Why was money mentioned in the Bible? World moved from barter to money

Dead Presidents vs. Living Rulers: Money was propaganda; sign of oppression

Critiques about reasonable, just, and fair uses of money/resources with context

Big Picture: God is creator of all things and owner of everything, including money

Implications: What would God have you do with money/resources he blesses you

Serve Money or God? Who, what, where, how to trust use of money, resources

Tax Deductions/Donations: Do’s, don’ts of sacrificial giving vs. financial suicide

John Wesley’s The Use of Money Principles:

Make all the money you can by honest means

Save all you can

Give all you can

Necessities vs. Luxuries: How much is too much? What’s needed to live simply?

Practice What You Preach: Church has obligation to take care of its own, others

Unplug and De-enculturate: Maintain values to live fruitful, helpful, meaningful life

Parable of Talents: Issue of what you do with what you have—be a good steward

What does Jesus want us to do with money? Jesus wants us to invest in others

Why be a methodist? Believe in social holiness and motivated by faith

Links:

Dr. Ben Witherington III

Jesus and Money by Dr. Ben Witherington III

Asbury Theological Seminary

The Use of Money by John Wesley

Rich Christians in an Age of Hunger by Ronald Sider

Heart, Soul, and Money: A Christian View of Possessions by Craig Blomberg

United Methodist Committee on Relief (UMCOR)

Federal Emergency Management Agency (FEMA)

Finance For Physicians

It’s that time of year again where many of you are considering giving generously to help others.  What are some of the best tax strategies for giving? 

In this episode of the Finance For Physicians Podcast, Daniel Wrenne talks to Justin Harvey, a fellow Certified Financial Planner (CFP®) and founder of Anesthesia Success—a planning firm and podcast dedicated to helping anesthesia and pain physicians make successful career and financial decisions.

Topics Discussed:

Charitably inclined? Uncle Sam encourages contributions to help everyone

Science of Giving: Feels good when faith shapes financial plan/philosophy

Giving Forms: Generously invest time, money, emotion for observable impact

Is giving important? When? Giving imperfectly is better than not giving at all

Standard vs. Itemized Deduction(s): Cultivate desire and mechanics of giving

Charitable Contributions: Change from above- to below-the-line tax deduction

Appreciated Securities: Giving a security that has unrealized taxable gains

Taxable Accounts: Investment account type that has no inherent tax advantage

Donor Advised Fund: Pros and cons of using the DAF strategy for giving

Batched Giving: Strategically think about timing of gift based on tax situation

Internal vs. External Factors: How will tax situations, brackets, policies change?

Tax Impact: Qualified Charitable Distribution vs. Required Minimum Distribution

Private Foundations: Give more meaningfully charitably to express generosity

Links:

Justin Harvey’s Email

Anesthesia Success

Anesthesia and Pain Management Success Podcast

CARES Act

Tax Cuts and Jobs Act

Schwab Charitable

Fidelity Charitable

Finance For Physicians