5 Myths about Doctors Our Society Believes

Doctors are rich.

 

Are you kidding?

 

How rich do you feel when you are 36 years old, just starting your first real doctor’s job, with half a million dollar worth of student loans at 7% interest rate with capitalization of interest accrued over your 7 years of residency training, you just moved for the job, have no house, no money in retirement accounts, and your car is 20 years old?

 

Time value of money is not on a doctor’s side with the delay in critical savings (retirement, college, home, etc.) and the prolongation of carrying high interest debt. Even with one of the highest starting physician income of 350k, the post-tax take home could be as little as 200k. Even if one puts $200k of post tax income towards his/her half million student debt, it will take a few years.

Let alone one needs to save for a house, save for retirement, raise a family, save for kids college, not to mention the catch up component of missing 14 years of 2 doubling time in investment (assuming 10% annualized return).

So when people say, the big debt is no problem since you’ve got big income, I wish they would do some math and put themselves in their doctors’ shoes. 

Doctors are confident.

 

Myself and majority of my colleagues are some of the most insecure people I have ever met. We constantly are surrounded by the smartest, hardest working, most amazing peers, and frequently feel that we might have gotten to where we are (med school, residency, or a job) by luck or worse, by mistake. The impostor phenomenon or fraud syndrome is prevalent, undermining our self worth and performance constantly. Too many of us believe that “I’m not as smart or as good as others might think I am.” 

Doctors are healthy…

 

You may read the rest of the article on physician money digest. 

5 Traits Separating the Wealthy from the Wealthy-want-to-be

Life is a trajectory.

Wealth or poverty could be a lifelong or even multi-generational directional evolution. We are each journeying in the direction of greater or less wealth. Instead of comparing with one another, it’s helpful to see where we are moving towards, respective to our current financial snapshot.

It’s not news to see riches from rags or great wealth squandered away. There are some traits one could reflect upon what makes the difference between one heading for the positive or negative direction.

  1. Substance vs. appearance.

The wealthy focuses on substance; the wealthy-want-to-be focus on appearance.

  1. Service vs. profit.

The wealthy focus on service; the wealthy-want-to-be focus on profit.

  1. Create vs. consume.

The wealthy create; the wealthy-want-to-be consume. Creating with the mind sharpens us. Consuming passive entertainment rots our brain. Creating jobs, opportunities, service, or products increase wealth; consuming depreciating assets and purchasing on credit (with interest rate not justifying the purchase) deepens poverty. Consuming fast food, easy outside solutions causes poor physical and financial health.

  1. Learning vs. earning.

The wealthy works to learn; the wealthy-want-to-be works to earn.

  1. Who do you pay first?

The wealthy pay themselves first, in the form of investing in producing and appreciating asset. The wealthy-want-to-be purchase consumables, depreciating assets, or even liabilities for themselves first before investing for their future.

If you like this article, you might enjoy other DWM articles on Personal Finance, Investing, Retirement, Practice Management, & Lifestyle.

All articles by DWM are for informational purposes only and not intended as a substitute for professional advice. Please consult a professional accountant, financial adviser or lawyer, before making financial decisions.

6 $ Insights from My Kid’s Flying Lesson

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Mini Wise Money’s dad gave her a flight lesson (and more to come) as her return from China trip present. I was honorably chosen to be her passenger while her dad, her grandpa, and our dog Lola observed from the ground.
While up in the air, watching my 8 year old flying a plane with the instructor by her side (yes she did the whole flying from takeoff to landing), I realized several things about money, about life in general.

IMG_39951.       It is never enough.
Up in the sky, the mansions with acreage of land look puny. Part of me feel the huger, the greed bubbling, the desire to possess more and to label more things as mine. How great would it be to buy Mini a $350k plane of her own?
2.       It is always enough.
As her plane took us close to the mountains, I marveled at its grandeur and beauty, unrivaled by the most luxurious man-made structure on earth I’ve ever seen. I realized that if I am aware of the beauty surrounding me, the feeling of abundance is always present, whether I own more or less.

 

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3.       Sky is the limit.
The human mind is an incredible processing machine. Her very first flight lesson, Mini went from timid to adventurous, testing the boundaries of her skills and knowledge. It was beautiful to watch her mind open and blossom in front of me. Sky is the limit, the lesson we wanted to impart and instill in Mini with all that we’ve provided her seems to sink in literally and figuratively for her today.

4.       Experience matters so much more than stuff.
To me, this experience of being the passenger to my 8-year-old flight captain was priceless. I can see, to her as well. Her joy, excitement, and intrigue lasted much longer than all the stuff/presents she has gotten which frequently are more expensive than this first 2-hour flight lesson.

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5.       Pick our battle; victory is ours.
Sure, we have turned down Mini’s request to buy and keep a pony. She gets weekly horse-back riding lessons. We did not throw her a carnivore theme $1000 birthday party. We picked our battle, maxed out 23.5k of Roth investment, 14k of her 529, and this year adding her 5.5k of Roth IRA while supporting Mini to dabble in activities and experiences to expand her mind and her horizon.
6.       In spite of how expensive children are, they truly are the greatest joy one could experience.
Mini herself said to me, “Mommy, you would have been a millionaire already if it weren’t for me. I’m going to have dogs instead of children. Kids are too expensive and they talk back.” As I responded to her, “I would not trade the whole world’s treasure for not being her mom one day.”
Kids are more than someone who could potentially live our dreams, it’s even more marvelous to watch them develop and fulfill their own dreams.

If you like this article, you might enjoy other DWM articles on Personal Finance, Investing, Retirement, Practice Management, & Lifestyle.

All articles by DWM are for informational purposes only and not intended as a substitute for professional advice. Please consult a professional accountant, financial adviser or lawyer, before making financial decisions.

5 Reasons to Stroll Down Wall Street in Our White Coats

“When wealth is lost, nothing is lost. When health is lost, something is lost. When character is lost, everything is lost.” –Billy Graham

If any of us invest 1% of our intelligence and diligence we pursue and practice medicine with to money, the next Wall Street tycoon will emerge from us white-coats.

 

Traditionally, the white coat wearers show up on (virtual) Wall Street and instantly become the red hot target sign, and the marbleized juicy meats financiers droll over and fight to predate on.

 

I want to make a few suggestions today on to change the picture of Wall Street from predators (financial folks) and preys (little white lamb in white coats, how befitting.)

 

In fact, we can use the brain that got us into the white coats and win big on Wall Streets, as so inspiringly embodied by Dr. Jim Dahle (the first White Coat Investor in the blogging world.)

 

  • Opposite ends of spectrum.
    • The motivation to pursue medicine and money are opposite ends of the spectrum. Yet the problem solving natural inclination and gift are the same.
    • There’s an incredible mind expanding benefit to be straddling 2 ends of the spectrum. Like House M.D. solving medical mystery via conscious or subconscious connections to totally non-medically related activities, I’ve learned things about medicine from money and vice versa.
  • Lots of transferable skills.

The most vita of which are the interpersonal skills required of a good doctor who knows how to maximize patient compliance (sales) are the same required of a financial advisors (who sell financial products all day.)

  • It’s so easy.
    • The most successful, high yield financial tricks to build net worth, make a good deal (win-win), carry trade are but a few.
    • Since you mastered the myriad of pathophysiology principles in medical school and today, you need but read 1 investment book and pretty much get it all…
    • Finance is made to seem complex so that the financiers can have job security. (Unlike doctors, average financiers attend professional training for 2 weeks and continued lifelong training in sales. We attended professional training/schooling for 26 years-not to mention the Md.Phd-er’s and life-long recertification and CMEs on medicine, not sales.)
  • Save yourself 13 million dollars.
    • While I don’t expect all of us doctors to have the mathematical talent and mastery of Excel of Physician on Fire (an anesthesiology-money blogger), we can see and trust his math of how an average doctor can fork over 13 million dollars over 3 decades working & 3 decades in retirement to a financial adviser.
    • Now a lifesaving piece of medical advice may be worth 13 million dollars. Or rather in fact priceless.
    • I don’t believe any financial advice worth 13 million. Especially considering how many doctors an adviser can advise in his life time.
    • No, thank you. I’d rather buy and take care of third world country with my like-minded doctor friends.
  • Get wealthy. Have the ability to donate a lot to charity.
    • “Nothing is wrong when men possess riches. Everything is wrong when riches possess us.”– Billy Graham
    • Money is not evil. But there’s nothing wrong to allow money follow us as we follow our heart to serve with medicine.
    • Ever thought about how your financial success can help your colleagues to do the same? Have you ever imagined doctors, untethered by the financial burdens of suffocating student debt, rather enjoying financial independence, practicing medicine for their love of it (as they’ve always dreamed of since their deer-eyed teenager years.)

 If you like this article, you might enjoy other DWM articles on Personal Finance, Investing, Retirement, Practice Management, & Lifestyle.

All articles by DWM are for informational purposes only and not intended as a substitute for professional advice. Please consult a professional accountant, financial adviser or lawyer, before making financial decisions.

5 Ways to Combat FOMO (Fear of Missing Out) & Pad Your Wallet

I recently stumbled upon Overcome FOMO (Fear of Missing Out) in 7 Steps by finance superhero. I was enlightened by this article and decided to write about the ways I personally combat FOMO.

FOMO is likely the most prevalent psycho-social disorder plaguing our society, a nation with the great abundance in choices and options.

1.    Create rather than consume: financially, intellectually, physically, and spiritually.

Before I took off walking our dog Lola, I put Mini’s phone and iPad away, and left a note, “please don’t turn on/use anything electronics with a screen. Honey, you can read, write, paint, or create anything with your mind. But don’t being your day with consuming passively. I’ll be back in an hour.”

When I return from my peaceful, refreshing walk in our neighborhood, I was surprised by the beautiful song Mini composed, melody and lyrics, while I was gone.

She then proceeded to record this song multiple times on my phone so that we could choose the best version to set the melody which we can write down into notes for her accompanist to play on the piano (mom or dad.)

Both Mini and I are so pleasantly surprised what we find within ourselves when we choose creation over consumption.

2.    Multi-tasking is over-rated.

As good as I was at working 7 odd jobs while double-majoring and sleeping 4 hours/daily for extended period of time, I do better when I focus and harness my energy with a sense of direction.

While many people pride themselves in their ability to multi-task. I’ve learned the hard way that I’m not as good a multi-tasker as I’d imagined. I’d rather give my all to what’s at hand than to be non-committal and half-hearted about multiple things.

3.    Variety is the spice of life. But if there’s no commitment/substance in life, there’s nothing to spice up.

If there’s no turkey or tofu, what is there to spice up?

I venture to say that we are so over-fed and under-nourished physically and fiscally, is because we have too many options in flavors and spices, but not enough focus on nutritious whole-foods raw materials supplied by nature.

Instead of eating Cheetos of innumerable artificial, lab-engineered flavors, why not for once bite into an apple filled with nutrients, naturally nourishing our bodies the way we have evolved to be for hundreds of years.

4.    What I most fear missing is really right in front of me.

Being in the moment and giving my 100% here and now is how I will truly maximize my limited time on earth. Remember, you chose to pursue this career, you chose to start a family, you chose to be a life-long learner.

To our surprise, our young, idealistic, naive, less-distracted, less-baggage-laden self may know what’s worth our time more than we do today. Learning, loving, serving requires being here and now, and being here and now will naturally maximize our time.

Instead of pining over the greener grass on the other side; water your lawn for once!

5.    100% commitment frequently translates into 100% satisfaction.

This is true per human nature. This trick work on kids and adults alike. While parenting book encourage us to include our children in food preparation, vouching that kids are more likely to enjoy the nutritious foods they help prepared than otherwise. Research has also shown that we tend to like people to whom we’ve devoted more energy, time, and resources of ours. It’s a positive feedback the loop, the more we serve someone, the more we love him/her, and the more we are inclined to serve them.

The more committed we are, the happier we are with our choices. The more on the fence we are, the less we feel happy with either side of the fence.

 If you like this article, you might enjoy other DWM articles on Personal Finance, Investing, Retirement, Practice Management, & Lifestyle.

All articles by DWM are for informational purposes only and not intended as a substitute for professional advice. Please consult a professional accountant, financial adviser or lawyer, before making financial decisions.