Review: The Physician Philosopher’s Guide to Personal Finance

Back in May, I had the chance to sit down with The Physician Philosopher’s Guide to Personal Finance: The 20% of Personal Finance Doctors Need to Know to Get 80% of the Results.

The Pareto approach is a good conceit and is most of what people need. Real personal finance for most people is two things: simple and behavioral. Save a significant amount of your income by living on less than you earn and then do something really boring with it. Then, stay the course no matter what.

Add in bits about how important it is to buy own-occupation disability insurance and term (not whole) life insurance, and that’s the meat of the book.

My main beef, unsurprisingly, is the chapters dedicated to student loans. One, there are some factual inaccuracies (e.g. about eligibility criteria for the PAYE program, the fraction of physician jobs that qualify for PSLF, the common misconception that losing a partial financial hardship in IBR or PAYE boots you out of IDR and into the standard plan [it doesn’t, the payments just cap at that amount]), and the notion that all doctors should leave REPAYE after training and switch to PAYE in order to minimize payments [it depends!].

Two, the Pareto principle applies well to most people’s retirement finances but less well to nitty-gritty loan details, especially once you get into PSLF-territory. For the former, there is no evidence that a complicated portfolio outperforms a simple one when it comes to your investment accounts. As author Rick Ferri recently advised on the White Coat Investor podcast:

Regarding your portfolio: make it simple, make it automated, and just let it do its thing. Don’t touch it. That’s the best financial advice I can give. Simplicity, automation, hibernation.

But, there can be a big difference with small details when it comes to loans, which can easily change result in swings of tens to hundreds of thousands of dollars. I see what should be simple mistakes cost thousands constantly. Technicalities are the lifeblood of the system, but I do agree with TPP’s overall thrust though. Luckily, there’s a free book that knocks that particular topic out of the park.

Overall Jimmy is a solid writer and the book is readable and reasonably concise. The first editions of my books had small errors too (okay, I’m sure they all still do–I’m a very fallible human). The beauty of self-publishing is that Jimmy has probably already fixed the errata I found.

It’s a great book for students, residents, and early career physicians.

Updated Student Loan books

Nice, productive holiday weekend. I also got around to making some minor revisions and 2019 updates to Medical Student Loans and Dealing with Student Loans, both of which you can always download for free right here. Yes, these beloved best-in-class books are completely free, because student loan debt is crippling generations of Americans, and that outweighs every other consideration.

If you already have a copy, you can still drop your email on the download page and get this most recent edition in your inbox. (And of course you’re always welcome unsubscribe immediately.)

While I would recommend reading one of the two books to literally anybody with a student loan from current college students to seasoned physicians, I strongly recommend any graduating students to take a few hours this month and get your financial house in order.

This is literally the perfect time.

Updated Guide to Fourth Year

I’ve just updated my guide to being a senior medical student, Fourth Year & The Match. It remains awesome and free as well as being up-to-date for 2019-2020.

Even if you’ve downloaded the old version, you can still receive the new one by dropping your email address here.

 

Get your free book download (ebook and PDF) of Fourth Year & The Match.

 

I have yet to actually start that planned infrequent/sporadic newsletter, and even if I had, I have no interest in cluttering your inbox. But if you just want the freebie, no sweat: just click the friendly unsubscribe link in the download email.

Neverending oil and water optics of corporate for-profits and healthcare

Mednax, Inc.’s CEO Roger Medel on their Q1 2019 Earnings Call:

Looking across our service lines. Volumes increased modestly in most of our women and children specialties. In neonatology, the underlying trend of births at the hospitals where we provide services remained negative, but our volumes increased based on rate of admission into the neonatal intensive car unit and length of stay.

Thankfully, despite birth rate decreases at our hospital, either the babies were coincidentally sicker or we managed to squeeze more kids into unnecessary NICU admissions and longer stays, so we were still able to grow our profits.