Fiscal Therapy - January 2024 Edition

Your Monthly Dose of Financial Wisdom for Healthcare Professionals

Letter from the Co-Founder ✉️ 

Dear Andwise Community,

Welcome to the Andwise newsletter, and a Happy New Year to all our members! As we embark on a new year, it's evident that our community of medical students, residents, and physicians is navigating a landscape filled with unique challenges and concerns. Many of you have expressed concerns about the current economic climate (particularly regarding inflation and stock market fluctuations), the dream of buying a home seems more out of reach than ever for many young professionals, and the burgeoning impact of AI on various medical specialties is a topic that's garnering significant attention.

At Andwise, we're committed to supporting you through these evolving times. Our offerings are tailored to address your concerns and aid in your professional and personal financial wellness journey.

Let 2024 be the year where you take action. Here’s some places you can start:

  1. Write out your own goals and have a written financial plan. FOMO can lead to rash decisions in both investing and spending, as we’re constantly bombarded with images of others’ success and consumption. However, overcoming FOMO is crucial for maintaining a healthy financial life that is in line with your personal goals and values. Resist the temptation and stay focused on your financial journey.

  2. Simplify your financial life. There’s no point opening a dozen credit cards, checking and high yield savings accounts and then losing track of all the incentives. If you’re just starting out and looking to get some ‘free’ money by paying off your credit card balance each month then please look into the 2% cashback credit cards (like Wells Fargo), or a low annual fee points card (Chase Sapphire Preferred). You can see my write up of why high annual fee cards and chasing points don’t make sense for most people :

  3. Make sure you have a 3-6 month emergency fund set up. Obviously if you’re a medical student or trainee, this may not be possible. But if you’re an Attending then you absolutely should calculate your essential expenses like housing, food, insurance and put away this money in FDIC insured high yield savings accounts for a rainy day.

  4. Maximize your retirement savings. Contribute to your employer sponsored plan, open a Roth IRA if you’re below the income limits, consider a backdoor Roth IRA if you’re a high income earner, and if you have side-gig 1099 income then look into opening a tax advantaged retirement account.

As we start 2024 I invite you to explore all that Andwise has to offer:

  1. Tune into our insightful podcast for in-depth discussions on these topics.

  2. Join our private physician Slack community to connect, share, and learn from peers facing similar challenges.

  3. Explore our new website Our digital presence has just leveled up with the launch of our new website! It's designed to be more user-friendly, informative, and a one-stop hub for all your professional needs. We invite you to explore the new layout and features that have been crafted with your needs in mind.

  4. For personalized guidance our financial educator Tanya Frias, CFP® is available for complimentary 1:1 sessions, offering expert financial advice to navigate this intricate landscape. Together, let's make this year a period of growth, learning, and success!

  5. Learn from our resource library. Given the ongoing challenges with home buying, we have assembled multiple resources such as our blog on rent vs buying. 

Much more to look forward to:

In addition to the support and resources already mentioned, we are thrilled to announce some exciting new developments that further our commitment to empowering our community:

Welcoming Our First Legal Educator Team Member: We understand that legal matters can be daunting for medical professionals. To address this, we are on the verge of introducing our first legal educator team member. This expert will provide education and guidance on a variety of legal matters, equipping you with the knowledge to have more nuanced conversations with any attorney you subsequently hire. Stay tuned for the official announcement!

Mobile App Development with a Target Release Before Match Day 2024: Understanding the need for on-the-go access to resources, we're excited to announce that our mobile app is currently in development. With a target release date set before Match Day 2024, this app will bring Andwise's valuable resources right to your fingertips, ensuring that support and guidance are just a click away, wherever you are.

We're constantly striving to enhance our offerings to better serve our community. Your growth and success are what drive us, and these new developments are just the beginning of many more innovative solutions we plan to introduce. Thank you for being a part of the Andwise family!

Warm Regards,
Varun Verma MD
Co-Founder, Andwise

What We’re Reading 📚️ 

Compiled by Tanya Frias, CFP®.

  1. What Went Right in 2023 by Zachery Karabell, The Wall Street Journal: An optimistic view of the year's progress, highlighting achievements in different economic sectors and challenging media's negativity.

  2. S&P 500 Is Nearing a Record High. This Could Derail It in 2024. by Janet H. Cho, Barron’s: It’s been quite the year for stocks, and one that could end with a cherry on top—a record high for the S&P 500. The index begins the final two trading days of 2023 just 0.3% off its all-time high reached in January 2022.

  3. Here’s How To Find An Old 401(k) Account by David Rae, Forbes: This article provides valuable guidance for individuals trying to locate their forgotten or misplaced 401(k) accounts. It offers practical steps and strategies to trace these accounts, especially when changing jobs or losing track over the years.

Financial Wellness Wednesdays Recap

Financial Wellness Wednesdays are a weekly discussion series tailored specifically for the unique financial journey of physicians at every stage of their careers.

Attending Physicians Discussion Post

End-of-year tax planning is crucial. What last-minute tax tips or strategies can you share that have worked well for you in the past?

“Allocate investments in the most tax advantageous way you can.  Don’t own property that generates large tax bill”

Joseph Saveika, MD
Medical Students Discussion Post

The holiday season is upon us. How do you plan to enjoy the festivities while maintaining your financial goals, and what tips can you offer your peers?

“I think I'll be taking advantage of some of the cheaper options that pop up every year around my area, like the Lincoln Park Zoo Lights show in Chicago.”

Shrinidhi Kadkol (MS4)

Physician Mortgages: A Resident Physician’s Experience

Dhruvil Patel, one of our team members, put together an extensive guide on the process of getting a physician loan and purchasing a house. To download the guide, click the image above.

New Andwise Member Resources 📩

Social Media Oasis 🏝️ 

Step into our Social Media Oasis and savor the delight of curated social media content – no need to doomscroll here!