Money Talk For ER Docs™

Each and every year, the single largest expense an ER doc pays is their taxes. This means a large percentage of our professional careers is spent staying on top of current tax legislation and strategizing around ways to legally reduce taxes for our clients. We've all grown accustomed to the current tax code and laws, but things do change, and inevitably will change, by the end of the 2025.   On to...

We just discussed the three best financial decisions an ER doc can make, but what about the three worst? What's interesting is poor decisions have disproportionally worse outcomes than good decisions when it comes to finances. That's something really crucial to understand and highlights why we are so risk adverse when it comes to the best ways for ER docs to become successful. On today's episode,...

When you think about it, we all make millions of financial decisions over the course of our lives. Is it the culmination of all of those financial decisions that results in your success or not? Possibly. But there is undoubtedly a mindset that we see common in all of the most financially successful ER docs that provides the framework for each and every financial decision they make.  On today's epi...

One thing about being in the field of personal finance is nobody will know everything. And the same is true for the field of emergency medicine. Yet, we do our best to acquire as much information as possible and pass that knowledge along. On today's episode, we'll go over certain misnomers or confusions we often see when it comes to personal finance and leverage our 15+ years of knowledge to addre...

Taxes are cumbersome and oftentimes painful (for most people). There are no two ways about it. But through proper planning throughout the year, plus a simple working knowledge of how the deadlines work, that combination really makes this responsibility manageable. On today's episode, we'll reference IRS statistics on extensions for high-earning taxpayers and discuss how we feel every taxpayer shou...

ER docs tend to think of their income in shifts. We tend to think of it more from an after-tax perspective. In other words, we're interested in how much ER docs get to keep, after taxes. So strategizing around that bottom line instead of simply working shifts can make a big difference not only on the perception of working, but also for wealth building. On today's episode, we'll provide a simple br...

Mortgage rates are high relative to very recent history. Despite this, it's inevitable that we may have to participate in those higher rates if we move, upsize, downsize, or acquire a first-time home. In any of these cases, there's an unconventional and little know strategy for reducing your mortgage payment over the life of the mortgage term.  On today's episode, we'll discuss a cash flow improve...

Paying tax is a good thing because it means you've made money. But when it's unplanned or unaccounted for (or worse – already spent!) that's when major problems can arise. With the stock market roaring since October 2023, depending on what you're invested in, your assets have likely bloated. In the event you need to sell out of these positions for any reason – car, house, change investments – ther...

Just as electric vehicles are relatively new, so is the tax code that was designed for them. Like anything in its infancy, there will inevitably be confusion, loopholes, and many updates to come. On today's episode, we'll get into how ER docs in the market for an EV can still take advantage of free rebates even if tax policy has attempted to disqualify them based on income limitations.

The Internal Revenue Code is like an onion – there are so many layers to peel back. Within each of these layers are deductions and credits, each with their own set of rules. As a high-earning ER doc, you should be aware of areas where you can take advantage, and for completeness and simplicity, areas where you can't. On today's episode, we'll construct and discuss the longest list of deductions an...

Recency bias: a cognitive bias that favors recent events over historic ones; a memory bias. I mention this because a composition of the 500 largest companies in the US, also known as the S&P 500, has recently hit all-time highs. While of course that's a good thing, recency bias is running rampant, making it difficult to remember times when the S&P 500 has severely lagged behind other markets. And...

Taxes aren't as much of a "season" as we tend to think. The reality is, taxes are all around us; they're a daily occurrence. Thus, condensing an entire year down to a single week or month is a fool's errand. On today's episode, we'll talk about tax season from a different perspective. A perspective that hopefully creates a mental shift and ultimately improves the way you think about and prepare yo...

ER docs tend to lead financially complex lives. With different income sources, different income types, and possibly earnings in multiple states, this provides a major hurdle when it comes to optimization. But not all hope is lost; the added complexity can often lead to opportunity, like in the case of additional contribution limits with multiple non-related retirement accounts. On today's episode,...

How do you pay for things? And what's the thought process behind what card you pull out of your wallet? The effort you bring to this area of your spending is a precursor to living an overall better and more organized financial life. On today's episode, we'll discuss the balance that works for most ER docs in a world of credit card rewards, mailed offers, referral codes, high-interest accounts, and...

529 plans are typically thought of as college expense accounts. And of course, they are first and foremost, but over the years we have gradually seen the flexibility and use of 529s expand. Whether that's using them for K-12 private schools, opening an account early in the parent's name in anticipation of the possibility of a future child, or even strategic changes to the beneficiaries of the acco...

Oftentimes the benefits of a vacation are felt prior to even setting flight or hitting the road. It's something to look forward to – and that can carry you through even the toughest of workdays. We know ER docs have a unique job when considering the hours and responsibilities, but it doesn't stop there – PTO and flexibility are also vastly different from not only other job types in America, but ev...

The retirement account landscape can be confusing. But maximizing these savings vehicles is so important for ER doctors seeking financial independence. So when the perfect storm of large savings needs meets tax and retirement planning strategies, the mega backdoor Roth strategy may be the tool to get the job done.   On today's episode, we'll give an overview of tax-preferenced retirement accounts,...

If we polled all ER doctors in America and asked them, "Which do you think would be financially more beneficial to you, being paid as an employee (W-2) or contractor (1099)?" we suspect ~75% or so would respond that they'd rather be classified as an employee. Well, that wish may come true as new regulation is set to go into effect in March that could challenge all independent contractor job status...

When we sit back and really analyze the thousands of ER docs we've worked with and spoken to over the past 15 years, we've pinpointed one specific thing the financially successful have in common. Most would think high income, or even savings rate. While those may be great indicators, even those have flaws. No, this specific thing is, without fail, the best litmus test for success and we can make p...

It's often the case that people are short-sighted with their retirement. The focus is on getting "to retirement" (saving and accumulating), but not necessarily how to get "through retirement." That has its own layers, such as: How will you acquire money in retirement? From what accounts? In what order? Where will you be living in retirement? Spousal income? Social Security? You can quickly see the...

A new year carries with it the best intentions for ourselves. From eating right and exercising, to relationships and hobbies, and even finances, we get a clean slate at becoming a better version of our past selves. And where many focus on general areas to improve or specific financial to-do's, we wanted to come at things from a different perspective. One that hopefully sparks a moment of clarity a...

For those who haven't heard of Dave Ramsey, he's an American radio personality who gives financial advice to roughly 18M listeners a week. Oddly enough, he isn't actually a financial advisor; he does not have his own clients. Yet he has written several books on finance and his words carry a lot of weight. Mr. Ramsey recently had a pretty controversial statement go viral regarding how much a retire...

Have you heard the notion that investing in the S&P 500 is synonymous with having a financial plan? How about investing in the S&P 500 IS diversifying your portfolio? If either of these thoughts haven't crossed your feed yet, they may be soon as they've gained more and more traction lately given the performance of the index over the past decade or so. On today's episode, we'll discuss both of thes...

As we've discussed before, ER docs are a special specialty. Beyond the financial uniqueness, so, too, are the personality traits. Whether those personalities are formed as a result of becoming an EP or if they are a prerequisite for going down the path in the first place, that's a topic for debate. In either case, the nature of the job promotes an interest in, ironically, getting out and leaving t...

It's common to think tax brackets are fixed and only change or adjust when voted on – typically under new legislation. While this is somewhat true, what's overlooked is within that voting there are year-to-year updates that are cooked in based on various factors. And once enacted, these changes can harm or benefit you. Either way, they sneak up similar to the way price changes at the grocery store...