Money Talk For ER Docs™

The IRS is a formidable force that shouldn't be taken lightly. So when you owe what are referred to as "back-taxes," how those are handled is extremely important. Despite the plethora of options that the IRS gives to help taxpayers stay current with their taxes, all too often we find ER Docs are owing significant amounts from prior years. And back-taxes can have this almost quicksand like effect where you never feel like you can get back ahead once you get behind.

On today's episode, we get into the "why" and "how" ER Docs find themselves in this position, what the various options are to get back to current, and how a detailed cash flow plan may be the only way to truly avoid a levy or garnishment situation.

There are tried and true building blocks to a financial plan – areas where if you at least hit those, you can achieve a large percentage of what is needed to reach your goals. The key thing is this: you have to hit all of them… and do so effectively. Because over-concentrating or under-concentrating in one or another will inevitably wreak havoc on the rest of your plan.

On today's episode, we'll present 5 "pillars" for becoming a Financial Wizard.

Retirement looks different for every ER Doc. Many plan to retire early. Others may reduce workload and extend their working years. Aligning retirement with a spouse is another common goal. Regardless of the way you retire, how you access your retirement savings should be a major point of interest, especially if you are being tax and investment allocation conscious.

The traditional way of pulling money out of pre-tax retirement accounts by selling positions then distributing the cash proceeds may not be the optimal strategy for many. Yet, it's the way most people end up handling things. On today's episode, we discuss a different way – one that is often overlooked or unknown.

One of Biden's campaign pledges was to provide student loan relief. Well that day has appeared to come… at least to some degree. Based on the overview of Biden's three-part plan, most ER Docs won't benefit because of income that surpasses the thresholds. While that may be true in some cases, digging into the details presents potentially a different story.

On this episode, we get into how there is actually tremendous opportunity here for many ER Docs, even those with high income. So don't rule yourself out just yet.

If you fail to plan, you plan to fail. That couldn't be truer when it comes to imagining your retirement. ER Docs get so busy and caught up in the day-to-day grind that it can be difficult to find time to envision a reality, perhaps 10, 20, or 30 years away. But thinking about it and discussing it can actually provide comfort and motivation in the present.

On today's episode, we'll evaluate what "retirement" or "financial independence" means for different people and discuss why having a plan, even if that plan changes over time, is the best way to buffer yourself against all future uncertainties.

It's important to remember: The IRS is your partner in everything you do. We know ER Docs already pay a lot in tax. The last thing you want is to get audited and potentially pay even more tax. So will the IRS hiring 87,000 new agents over the next 10 years mean more audits and potentially more tax paid in the coming years for ER Docs?

We'll explore that question and take a look into the current state of the IRS in this episode.

There are several financial "rules of thumb." Take not exceeding 28% of your gross pay on your mortgage payment or maintaining 6 months of spending as cash reserves, as examples. And while these may not be adequate for everyone, they can serve as a general guideline and promote action where otherwise action would not have been taken otherwise. In that sense, these guidelines carry positive influence.

In the same vein, on today's episode we'll discuss a principle that not only applies to personal finance, but bleeds into all aspects of life. It's called the Pareto Effect.

The K-1 is an animal. It's the tax form that reports the earnings, losses, dividends and more in pass-through businesses like S Corporations and partnerships. A large portion of ER Docs receives K-1 income – either issuing their own via S Corp, receiving one as a partner in a small or large group, or even as an investor in a limited partnership venture. In any case, the form itself is highly confusing, not in the least bit cut and dry, and overall not something to be taken for granted.

That's why in this episode, we get into the nitty gritty of what K-1 income is, the different ways to handle and report it, of course, ways to reduce your taxable income when receiving it, and some landmines to watch out for.

It's human nature to want to escape a situation that is worsening. House is on fire? It's probably best to get out. Boat is capsizing? The saying "abandon ship" exists for a reason. Given this reoccurring theme, we as humans are "anti-deterioration", if you will. But when it comes to the stock market, is that the right mentality to have? To answer that, it takes an evidence-based look at things that, once viewed, may paint another picture.

On today's episode, we'll explore this topic and what the evidence says about what you should do with any extra cash you're waiting to invest.

Applying for a residency is stressful. There's the matching process, applications, interviews, and looming questions like "Will I get my first choice?", "Will I get at least somewhere in my top 5?", and inevitably, "Will I get a match at all?" With a looming theory that EM is getting more and more competitive, the landscape for MS4s seems tougher than ever. But is that the reality?

We'll dig deeper into the theory of competitiveness and more on today's episode.