How Beginners Should Start Investing


how beginners should start investing

Your main goal with investing should be for retirement. Investing for your (future) kids’ college expenses is probably second. You will likely need at the very least a few million to live comfortably in retirement as $2M in savings for example will get you $80,000 in pre-tax retirement income using the 4% rule.

You have to invest to get to at least to that point where you will have a decently comfortable retirement, so here is my guide on how beginners should start investing.

How I learned

When I was 18 I met with my neighbor who is a financial advisor over coffee. I was learning about different fields in finance for a paper I was writing, but he happened to give me the best advice anyone has ever given me.

Continue reading “How Beginners Should Start Investing”

Forget Money- Doctors Have a Social Obligation


Doctors have a social obligation

This blog’s niche is money in medicine. I try to teach other current or aspiring doctors about personal finance and how the business of our healthcare system operates. These are incredibly important topics because personal finance is woefully misunderstood, especially in the medical community. Also, many doctors went into medicine disliking business and not wanting to be involved in any way in the business side (especially employed doctors.)

In the U.S. the average after-tax savings rate is 5.7% and only 48% of people are invested in the stock market. Those are scary numbers, so I try to provide some real world and some extreme examples to wake people up to what being financially savvy can do to your life.

That said, money is hardly everything in life, and I believe that doctors have a social obligation to the world. Dedicating your time to serving those in need will be so much more valuable to you than spending your entire life accumulating wealth. The quote below is the quote that has rang through my head for the past few years because of how true it is in my experience. Continue reading “Forget Money- Doctors Have a Social Obligation”

Focus on Cash Flow, Not Profit in Medicine


Cash flow timing problem in medicine

I’ve learned a lot from this class called Short-Term Financial Management, which is basically an accounting class. The most important point is that profit is completely different than cash flow in medicine.

Your medical practice could run a profit every day and still go bankrupt simply from day-to-day operations because of the timing problem with cash flow in medicine. I am not talking about a major lawsuit from a patient or an investigation into your practice by Medicare. This refers only to regular operations.

Let me introduce some accounting into your life. I won’t go too in depth because no one really likes accounting… (But it’s one of the most useful things you can study in school.) If you don’t understand the Financial Statements Overview section, you are probably in the majority, and the section below it will go through the main points. Continue reading “Focus on Cash Flow, Not Profit in Medicine”