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Physician Cents

Physician Cents

By: Chad Chubb & Tyler Olson
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 Welcome to the Physician Cents Podcast! A podcast designed specifically for physicians, offering a breakdown of complex financial topics to help you develop your financial IQ, further your financial journey, and improve your well-being. Whether you're a medical student, resident, fellow, or attending physician, you're sure to learn something new that will benefit your journey.2024 Economics Hygiene & Healthy Living Personal Finance Physical Illness & Disease
Episodes
  • 12 Steps to Financial Independence - Part 2, Ep #044

    12 Steps to Financial Independence - Part 2, Ep #044
    Jan 1 2026
    Financial planning is a lifelong journey, especially for physicians who face unique challenges far beyond medical school. Below, we'll expand on their candid advice for steps five through eight, tackling student loans, protecting your future, maximizing retirement savings, and mastering the art of tax efficiency. We continue our three-part miniseries focused on foundational financial steps for physicians. Building on the first four steps from the previous episode, we're moving on to steps five through eight, touching on topics like protecting your future self with the right insurance, maximizing your retirement accounts, and approaching taxes with a long-term perspective. We hope our blend of practical advice and candid stories from inside the physician community helps you get to grips with everything from the complexities of student loan repayment and the essential types of insurance doctors need, to smart strategies for retirement savings and tax planning. Don't forget, the conversation continues next week with the finale, covering steps nine through twelve! Looking for help with Disability Insurance, Physician Banking, Student Loan Refinancing, Physician Mortgages, Contract Reviews, and more? Check out our "Best of the Best" sponsors page to find a list of the professionals Chad & Tyler team up with for their clients. You will want to hear this episode if you are interested in... 00:00 Take a personalized approach to student loans.04:37 Student loans can be a financial maze.10:21 Details of disability insurance planning.12:20 Term life insurance basics.18:08 Roth strategies and IRA options.21:44 Health plan cost evaluation insights.26:17 Municipal money market fund benefits. Attack Your Student Loans Like a Strategist Student loans don't have to be a life sentence, but they require strategic navigation. It's so important to know whether to pursue Public Service Loan Forgiveness (PSLF) or to explore refinancing options tailored for physicians. There's no one-size-fits-all plan; your loan management depends on your career trajectory, marital status, and the type of loans you hold (federal versus private). For federal loans, decisions like filing taxes jointly or separately, or accounting for income-driven repayment plans, matter a lot. Customizing your repayment strategy means thinking beyond just paying down the debt fastest. For physicians with massive student loan balances, understanding PSLF eligibility and its complicated annual paperwork can save hundreds of thousands of dollars and years of worry. Private loans are simpler to manage, but federal loans offer powerful forgiveness options if you're on the right track, so take time to evaluate before refinancing or making major moves. Protect Your Future Self Physicians invest years, and a fortune, into their careers. Insurance isn't glamorous, but it's vital to securing the life you've built. The hosts recommend three types: own-occupation disability insurance, substantial term life insurance (10 to 20 times your income if someone depends on you), and a robust umbrella policy for liability coverage. Own-occupation disability insurance ensures you'll receive payments if an injury or illness prevents you from practicing in your medical specialty. It's a physician-specific necessity, not a luxury, as Tyler Olson notes. Term life insurance is surprisingly affordable for doctors, and necessary if family, children, or even parents rely on your income. Umbrella policies provide extra protection against legal claims, a smart move given the perception that doctors are "deep pockets." Max Out Your Retirement Buckets Building wealth for the future begins with maximizing contributions to retirement accounts. We recommend filling up your employer-sponsored 401(k), 403(b), and, where available, 457(b) plans to the federal limit ($23,500 as of 2025). The backdoor Roth IRA is a powerful tactic for high-income physicians, allowing for after-tax contributions that grow tax-free, even if you're above income limits for direct Roth contributions. Understand the pro-rata rule and avoid entanglements with SEP IRAs and simple IRAs if you're using backdoor strategies. Solo 401(k)s are ideal for side income, offering greater control and consolidation. Consistent, maximal retirement savings, even if not sexy now, accumulate huge tax-advantaged growth over decades. Pay Taxes, But As Little as Possible Over Your Lifetime Tax planning isn't just for April 15th; it's a critical component of lifelong wealth. Whether you moonlight, work locums, or have 1099 side income, set funds aside and pay quarterly taxes to avoid penalties. Take advantage of deductions: HSA contributions, student loan interest (while eligible), CME, and tax-loss harvesting all make dollars go further. The difference lies in strategic long-term decisions, like Roth conversions during low-income years or selecting tax-efficient investment vehicles, such as municipal bonds, for high-income professionals. ...
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    28 mins
  • 12 Steps to Financial Independence - Part 1 #043

    12 Steps to Financial Independence - Part 1 #043
    Dec 15 2025
    We kick off a special three-part miniseries designed to help physicians fast-track their journey to financial independence. Inspired by one of Tyler Olson's most popular tweets, this conversation breaks down the first four steps every physician should take once they finish training. From avoiding the "I earned it" trap to setting your savings rate and building your emergency fund, we share practical insights, real-life examples, and a healthy dose of financial wisdom for doctors at all career stages. Whether you're navigating your first big paycheck or wondering how to build a solid financial foundation, this episode is packed with actionable advice to help you secure your future and live life on your own terms. Looking for help with Disability Insurance, Physician Banking, Student Loan Refinancing, Physician Mortgages, Contract Reviews, and more? Check out our "Best of the Best" sponsors page to find a list of the professionals Chad & Tyler team up with for their clients. You will want to hear this episode if you are interested in... [00:00] Steps 1-4 to financial independence.[06:33] Plan early for financial success.[08:15] Avoid the urge to upgrade lifestyle prematurely.[13:53] Know your number and understand what you value.[21:45] Your first big pay raise is the easiest time to start saving.[26:15] Emotional and behavioral benefits of cash reserves.[28:58] Level two emergency fund strategy. First Four Steps to Building a Solid Financial Foundation Physicians are often seen as high earners with "easy" financial lives, but the reality behind the paycheck is much more nuanced. Years of demanding education, delayed earning power, and lifestyle pressures create a unique set of financial challenges. We break down and expand on the first four critical steps of 12 for newly minted attending physicians to set themselves up for long-term financial independence. Step 1: Don't Fall for the "I Earned It" Trap The "I earned it" mentality is tempting after years of sacrifice and hard work. The pressure of becoming an attending, the emotional weight of responsibility, learning new systems, and adapting to a higher-stress environment, often leads doctors to reward themselves prematurely. Upgrading to the million-dollar home, luxury car, and exclusive memberships before building a financial foundation is like eating dessert before you've had dinner. Resisting these early lifestyle upgrades is about more than just discipline. It's about setting yourself up for flexibility and freedom in the future. Locking in big expenses too early can hinder agility, especially once family planning and unexpected life changes come into play. Focus on building wealth and stability before flexing assets. Step 2: Track Your Real Cash Flow Many physicians, especially those in the $300,000 to $600,000 income range, assume their paychecks can cover whatever they want. In reality, without tracking cash flow, even high earners can find themselves in financial trouble. It's so important to know exactly where every dollar goes. Start with three months of detailed cash flow tracking using tools like Monarch Money, Tiller, or even old-school spreadsheets. Understanding your fixed expenses, discretionary burn rate, and real savings rate helps you make intentional financial decisions. Numbers don't lie, and self-awareness is especially important for high earners who may spend frivolously without realizing the long-term impact. Step 3: Set Your Savings Rate Because physicians generally start earning later than their peers, Tyler advocates a savings rate of 20-30% of gross income. Automate these contributions to retirement and brokerage accounts so every dollar is invested before it can be spent. Saving aggressively isn't about deprivation; it's about advocating for future spending, whether it's early retirement, reduced clinical hours, or the flexibility to change career paths. If 20-30% feels ambitious, start lower and ramp up as your life stabilizes. The key is to automate and protect these contributions from being spent impulsively. "Every dollar you automate equals less guilt later," Chad Smith echoes. Step 4: Build Your Cash Moat - An Emergency Fund for Peace of Mind Tyler recommends three to six months of expenses in a high-yield savings account, but Chad sometimes prefers using post-tax income to calculate this number for greater security, especially for those early in their careers or facing job market uncertainty. Think about what will happen if the unexpected happens. We share stories of real-life emergencies which bring home why liquidity matters. A well-funded cash moat provides both practical and psychological stability, letting doctors weather unexpected expenses or career pivots without panic. Best Practice is to save enough to sleep soundly, then consider a "level two emergency fund" invested more aggressively for longer-term flexibility. Making Intentional Choices Financial independence for physicians isn't about simply ...
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    33 mins
  • Decoding Advisory Fees: What They All Mean? #042

    Decoding Advisory Fees: What They All Mean? #042
    Dec 1 2025
    In this episode, we're tackling the often-confusing world of advisor fees, clearing up the "alphabet soup" of terminology, fee-based, advice-only, flat fee, assets under management (AUM), commissions, and fee-only. You'll get essential insights into what these different fee models mean, which conflicts of interest to watch for, and how to figure out which advisor structure suits your needs. We highlight the importance of understanding exactly what you're paying for and encourage you to look beyond just price, reliability and value matter, too! If you've ever wondered how financial advisors really get paid, or how to choose one that's right for you, this episode delivers all the answers. Looking for help with Disability Insurance, Physician Banking, Student Loan Refinancing, Physician Mortgages, Contract Reviews, and more? Check out our "Best of the Best" sponsors page to find a list of the professionals Chad & Tyler team up with for their clients. You will want to hear this episode if you are interested in... 00:00 Understanding fee terminology basics.05:41 Financial incentives shape decisions.06:24 Advisor relationships and compensation insights.12:55 Comfortable self-directed investment management.14:23 Challenges of the advice-only approach.19:58 Hybrid fee models explained.20:56 Questions to ask financial advisors.27:48 Advisory fees vs. investment returns. Understanding the Types of Advisor Fees The financial planning universe is more nuanced than ever before, with new compensation models and hybrids popping up every year. It's important to distinguish between the various structures: Fee-Based: Advisors can sell products, earning commissions (like insurance), and also charge direct client fees.Advice-Only: Advisors provide flat-fee advice but don't manage investments or sell products.Flat Fee: Clients pay a straightforward dollar amount for services, either monthly, quarterly, or annually.AUM (Assets Under Management): Advisors charge a percentage of the investments they manage.Commission: Advisors are paid strictly by selling financial products.Fee-Only: All client costs are direct; no commissions from products or other entities. Advisors may offer a blend of these models, so understanding what each entails, and the incentives they create, is a crucial first step. Fee-Based Advisors: Wearing Two Hats Fee-based advisors can earn money from both commissions (such as insurance, mutual funds, and annuities) and traditional fee arrangements. This hybrid approach is common among newer physicians who lack the assets for larger minimum fees but still need financial guidance. While fee-based relationships aren't inherently bad, it's essential to be aware of the underlying incentives. If you go this route, clarity and full disclosure are your best protections, know what you're buying, the commission structure, and what (if any) ongoing service you'll receive. Fee-Only and Advice-Only: Minimizing Conflicts of Interest For physicians who want a relationship free of commission-driven biases, fee-only (especially advice-only) models are a breath of fresh air. In these setups, compensation flows exclusively and transparently from the client, limiting hidden conflicts. Advice-only advisors focus solely on comprehensive planning, not asset management. This is ideal for the confident DIY investor, if you can stick to the plan without emotional reaction or procrastination. The challenge isn't getting a plan, but sticking to it as life and career inevitably create surprises and competing priorities. AUM and Flat Fee: Clarity is Key AUM-based fees charge a percentage of the investments managed. This "traditional" approach makes fees a moving target, but may align advisor incentives with your portfolio's growth. However, it's vital to understand whether these fees also cover ongoing financial planning or simply investment management. Too many physicians overpay for limited service out of habit or inertia. Flat fee models, on the other hand, provide absolute clarity. Whether it's a single annual charge or a tiered structure based on income or complexity, you always know your costs. Look for Reliability and Transparency Choosing an advisor is about more than price, it's about aligning on values, expectations, communication, and service levels. Ideally, you're working with that advisor for decades...spend your time doing the research once. The ideal advisor relationship isn't just about minimizing costs or maximizing returns, it's about trust, longevity, and peace of mind. Whether you're a new resident or a seasoned attending, the goal is the same: to understand what you're paying, what you're getting, and to feel empowered to periodically re-evaluate as life evolves. The best of the best list is a paid sponsorship, but these are professionals/companies that Tyler and Chad collaborate with within their own practices or have been vetted to earn a spot on this list. By supporting our sponsors, it allows Chad & Tyler to ...
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    30 mins
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