[Editor’s Note: It’s the final day of our WCI 10-year anniversary celebration! To enter today’s contest, watch today’s Milestones to Millionaire video posted on Youtube, subscribe to the WCI Youtube channel, and leave a comment on that video to enter to win one of three WCI T-shirts. Tune in tomorrow to the blog to see if you are a winner! ...

What do Wesley Snipes, Mike Sorrentino, Ja Rule, Darryl Strawberry, Chuck Berry, Richard Hatch, Pete Rose, Leona Helmsley, and Martha Stewart all have in common? That’s right. They’ve all gone to jail for tax evasion. Many of them attempted to use what the IRS refers to as “frivolous tax arguments”. Most of us have heard of these from time to ...

Paying attention to your taxes now AND your taxes later will give you the tax diversification and freedom you’ll want during retirement. A tax diversified portfolio should be made up of tax-deferred, Roth, and taxable accounts. Most doctors are aware of the importance of diversifying their portfolios among various “asset classes” such as stocks, bonds, and real estate (and within ...

[Editor’s Note: Did you miss out on attending the 2021 Physician Financial Literacy and Wellness Virtual/LIVE Conference? It was a production that exceeded all of our expectations and now all 50+ hours of financial and wellness talks, panels, and Q&A sessions are bundled up and available to view as our new CFE 2021 course. The content is truly top-notch, absolutely ...

Taxes are part of life and many good things are done with tax dollars. But as Judge Learned Hand said, “Any one may so arrange his affairs that his taxes shall be as low as possible; he is not bound to choose that pattern which will best pay the Treasury; there is not even a patriotic duty to increase one’s ...

Podcast #196 Show Notes: Understanding Tax Brackets Understanding how the tax brackets work will aid your tax planning and make for more informed, reasonable discussions of tax policy. People don’t actually grasp how tax brackets work and they routinely overestimate how much they pay in taxes. We think there are four reasons why tax brackets are hard for people to ...

I get lots of questions from readers about whether or not they should take advantage of their Roth 401(k) (or 403(b)) option. They’re usually looking for an easy, straightforward answer. Unfortunately, it isn’t that easy. I only have one rule of thumb, and that’s that residents (and military docs) should make Roth contributions and attendings should generally make traditional, tax-advantaged ...

Understanding how the tax brackets work will aid your tax planning and make for more informed, reasonable discussions of tax policy. Here are the tax brackets for 2021:     The standard deduction has also been raised for 2021.     People Don’t Understand How the Brackets Work One of the most interesting phenomena I’ve noticed over the years is ...

The more I learn about doctors and their finances and the more I talk to other docs, the more I see several recurring themes that cause them to have difficulty reaching financial success.  This post explores these themes. 1. Poor Debt Management This one begins early for most medical students as they get into the habit of living beyond their means.  ...

A Roth IRA has a lot of advantages with regards to investing, tax reduction, asset protection, and estate planning.  Even high-earners should be grateful to Senator William Roth, who was the sponsor of the legislation that established them back in the 1990s. The Basics of Roth IRAs Contribution Limits Anyone with earned income can open a Roth IRA and contribute ...

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