The Sunday Best (07/16/2023)

The Sunday Best is a collection of articles I’ve curated from the furthest reaches of the internet for your reading pleasure.

Every week, I scan hundreds of headlines, read dozens of posts, and bring you the best of the best to save you time and mental energy.

Financial Independence (FI) is a primary focus, but it’s an awfully broad topic. I tend to approach FI and early retirement from a fatFIRE perspective and through the lens of a physician, so expect to see those biases in the selected articles.

Related topics that have become recurrent themes include early retirement, selective frugality, tax issues, travel, physician issues, and of course, investing.

For more great articles, take a peek at The Sunday Best Archives. Now let’s get to the best… The Sunday Best!

Jorge Sanchez, MD, curated this week’s articles.

Money can’t buy happiness… or can it? Mr 1500 Days from 1500 Days explores how he spends his money to make life easier, happier, and more fulfilling in this insightful article: At Peace With Money (And A Friend With Benefits)

Dying without a will creates confusion and jeopardizes your family. Yet, according to the American Association of Retired Persons (AARP), over half of adults do not have a will. While we don’t like to think about our life ending, none of us are immune to accidents and unexpected illnesses. Marriage Kids and Money talks about the devastating consequences when you die without a will and the steps you can take to avoid them. Dying Without a Will 

Mr. Fire Station talks about the power of small, positive habits in our lives and the importance of getting the basics right to achieve our goals in Small, Positive Habits

The journey to FIRE can be frustrating, full of compromises and restraint. If you’ve ever wondered if there’s a better way, this podcast episode from Journey to Launch is a great listen. Here, Kerry and her partner discuss the importance of an abundant mindset and how you can find joy and freedom on your journey to FIRE. They also discuss the blueprint for creating an in-depth annual planning process to optimize your personal and financial goals.

In The Short-Term Rental Cashflow Snowball, Ian Cook from Carpe Diem MD discusses the concept of a short-term rental snowball. The theory is you can accumulate increasing numbers of cash-flowing short-term rentals slowly, over time. The idea of reaching 200 to 300k in short-term rental income in 10 years sounds impressive, but is it realistic? 

SpaceX, Elon Musk’s brainchild and private aerospace company, has recently seen making waves. Apple, Google, and others have said SpaceX is one of the biggest untapped markets. Is Space X the next trillion-dollar business? Read to find out: SpaceX Stock – Is it a Good Investment?

Should physicians search for bargains when buying investment real estate? Financial Success MD shares why he thinks busy professionals should NOT make lowball offers when it comes to investing in real estate: Busy Professionals Should Not Make Lowball Offers When Buying Investment Real Estate

Campfire Finance explores how your relationship with money impacts your ability to reach your financial goals and how a positive money mindset can open up opportunities toward financial freedom: How to Alter Your Money Mindset for the Better

We all know panic buying and selling are the two most damaging things you can do as an investor. Yet, many still fall into this trap. In his recent post, Ben Carlson from A Wealth of Common Sense discusses the importance of staying the course and why he is a big proponent of having an investment plan that you can stick with through a wide range of market and economic environments: This is Why You Stay the Course

In this episode, the Financial Samurai podcast talks about how to find more meaning through our jobs and how we can lead more balanced lives: Reclaiming Life From The Oppressive Grind Of Work With Simone Stolzoff

Is geographic arbitrage worth pursuing for the average physician? Geographic arbitrage is the concept that you can accelerate wealth building by living in a city/region with lower expenses – lower taxes or cost of living. In his recent post, Prudent Plastic Surgeon shares his experience with geographic arbitrage when he moved from NYC to Buffalo, NY. He talks about the differences in basic expenses, how well geographic arbitrage had worked for him, and why he thinks this strategy will not be for everyone: Geographic Arbitrage Will Accelerate Your Wealth Building. Is It Worth It?

Many of us spend our days working hard, dreaming that one day we can retire; only a few of us take the time to plan for retirement strategically. Yet, planning for it in your 20s and 30s can be one of the most important decisions you can make. Here are 7 reasons to start investing and planning for retirement early in life.

Achieving a net worth of $5 million provides immense financial security and independence. While becoming a penta-millionaire (someone with a net worth over $5 million) may seem like a pipe dream for many physicians, Wealthy Doc discusses how it’s possible for you and how you can make it happen in The Pentamillionaire Physician: Your Roadmap to Achieving $5 Million Net Worth

Site sponsor Forme Financial discusses the pros and cons of retiring early for physicians.

Retiring Early for Physicians: Evaluating the Tradeoffs of This Decision

Many physicians traditionally wait until their late 60s or even 70s to retire, but there is a growing number who are considering an early transition to retirement. In fact, nearly 30 percent of physicians retire between the ages of 60 and 65, and 12 percent retire before the age of 60. If you find yourself contemplating an early retirement, you are not alone. However, it is crucial to carefully evaluate the tradeoffs involved in such a decision to ensure a fulfilling and financially secure future.

A study conducted by the AMA found that physicians who retire early are more likely to experience significant dissatisfaction in retirement. Eight percent of physicians who retired before the age of 60 identified themselves as very dissatisfied, compared to 4 percent of physicians aged 60–65 and 3 percent of those aged 66–70.

This emphasizes the need to consider several important questions before making a decision to retire early.

Are you still happy and healthy practicing medicine?

1. One of the key factors influencing your decision should be your current level of happiness and health while practicing medicine. If you still find fulfillment and joy in your work, retiring too early may lead to regrets and a sense of unfulfilled potential. On the other hand, waiting too long to retire may increase the risk of poor health, either for yourself or your spouse, which could impede your ability to enjoy retirement. Striking the right balance is crucial.

Will you have sufficient health insurance?

2. Health insurance is a vital consideration for those contemplating early retirement. If you plan to retire before reaching the age of Medicare eligibility, ensuring that you have adequate health insurance coverage becomes even more critical. Unexpected healthcare costs can quickly deplete your savings, making it essential to have comprehensive coverage that aligns with your retirement timeline.

How do you envision your retirement lifestyle?

3. It is crucial to envision your retirement lifestyle and consider the financial implications. If you simply imagine a life similar to your current one, but with more leisure activities and less work, you may be in for a surprise—particularly if you retire early and have several decades of retirement ahead. Ensure that you have a realistic understanding of how your retirement years will unfold and whether your financial resources can sustain the lifestyle you desire.

Have you consulted a professional financial adviser?

4. Seeking guidance from a professional financial adviser is highly recommended before making any retirement decisions. An experienced adviser, such as Forme Financial, can assist you in evaluating your financial situation and determining whether you have sufficient funds to retire early. They can help you consider various scenarios and create a comprehensive plan that addresses the many financial nuances of retirement. With different retirement ages and a multitude of potential retirement lifestyles, expert advice can prove invaluable in making informed choices.

Retiring early can offer many advantages, such as increased freedom and the ability to pursue other interests. However, it is vital to carefully weigh the tradeoffs associated with such a decision. Considering the questions outlined above and seeking professional guidance will provide clarity and confidence as you evaluate the feasibility and desirability of an early retirement.

Forme Financial is here to help. The best way to ensure a successful retirement is to plan for it. Contact one of our advisors to get started.

Ultimately, finding the right balance between work, health, finances, and personal fulfillment is key to enjoying a fulfilling retirement journey as a physician.

Have an outstanding week!

-Physician on FIRE

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