Ok, before you read this post, go read this one first. So here’s the thing. The idea of a financial advisor isn’t an inherently bad one. This person has some knowledge and expertise that you presumably don’t have. So you meet this person and they advise you on your finances… basically a consultant. Any consultant desires a fee, and rightly so, as they have provided a service, hopefully a value one. You receive a service and […]
Finance Fridays
The term “financial advisor” feels inherently safe. It connotes a sense of knowledge and experience in finance, enough to advise other people about it. After 4 years of college, 4 years of medical school, and who knows how many years of residency/fellowship, the last thing most doctors want to do is to learn all this “finance stuff”. Most doctors don’t seem to understand just how important (and potentially costly) it is to not learn about […]
Financial Advisors
There are a lot of different types of funds you can buy. So then… why index funds? The general idea behind index funds are that they should have the lowest expense ratios and should have no load or any other hidden costs. By having the lowest costs possible, and simply tracking the market rather than actively trying to beat it, you have the highest chance of coming out ahead over the long term compared to an actively managed, […]
Index Funds
“Compound interest is the eighth wonder of the world. He who understands it, earns it … he who doesn’t … pays it.” Who said that? I have no idea. People attribute it to Albert Einstein, but the truth is he probably didn’t say it either. In fact, people quote Albert Einstein a lot when he didn’t say the majority of those things. It’s simply trying to add more weight to whatever they are saying. “A […]
Compound Interest
So after this first round of finance Friday posts we’ve gone through the basic definitions and established general priorities. Now I want to step back and remind everyone of the philosophy. Most, if not all of you, are young physicians or other highly educated young professionals. My investment philosophy is mostly tailored toward you because well, I am a young physician who went through the opportunity cost of 4 years of medical school and 6 […]
The Philosophy
PRIORITIES – PART THREE: THE REBUTTAL Like I said, I don’t expect you to live in squalor nor do I think you should sacrifice your safety for financial benefit. Also, trust me; I do understand that you are no longer a college student and that having a roommate might be unacceptable to some. I also understand that after a long day of work being able to retire to the solitude of your “castle” has its […]