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  • Drop it into MD Drop it into MD 
    Participant
    Status: Physician
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    Joined: 09/20/2018

     

    I vote for jumping to some charts to show index vs passive

     

    That is a good idea.  I can create some on PC or I am sure google has plenty but does anyone know of any compelling charts or graphs for this topic or other useful ideas?

    #186156 Reply
    ENT Doc ENT Doc 
    Participant
    Status: Physician
    Posts: 3567
    Joined: 01/14/2017

    A simple excel graph will do. Just use ERs of 0.04%, 0.25%, 0.5% and 1% to show the different trend lines over 30 years. Assume a specific level of compounding with monthly contributions.

    #186157 Reply
    SerrateAndDominate SerrateAndDominate 
    Participant
    Status: Physician
    Posts: 495
    Joined: 02/01/2018

     

    I vote for jumping to some charts to show index vs passive

     

    That is a good idea.  I can create some on PC or I am sure google has plenty but does anyone know of any compelling charts or graphs for this topic or other useful ideas?

    Click to expand…

    Agree with ENTDoc.  If I remember correctly, Physician on Fire has some from his posts (on his site or guest blog on here).

     

    A Tale of 4 Physicians–The Impact of Lifestyle

     

    I think those can help hit home the most

    Earn everything.

    #186170 Reply
    Avatar Peds 
    Moderator
    Status: Physician
    Posts: 4628
    Joined: 01/08/2016

    Don’t have the link now but the Vanguard paper that showed cost was the only determinant of having a well performing portfolio

    #186177 Reply
    Avatar Kamban 
    Participant
    Status: Physician
    Posts: 2561
    Joined: 08/01/2016

    In addition to others

    1. Avoid high interest credit card debt.

    2. Consolidate and have a plan to pay off student loans.

    3. Once an attending pay yourself first before using the rest as expenses. 20% should be the minimum. First tax deferred and then taxable.

    #186186 Reply
    ENT Doc ENT Doc 
    Participant
    Status: Physician
    Posts: 3567
    Joined: 01/14/2017
    #186189 Reply
    jfoxcpacfp jfoxcpacfp 
    Moderator
    Status: Financial Advisor, Accountant, Small Business Owner
    Posts: 8314
    Joined: 01/09/2016

    If I could have 1 graph that I could have shared with new graduates before they came to me several years later, it would be the effect of spending v saving on their long-term net worth.

    Actually I think, in this speech (before they have reached the point of feeling lost and searching for a professional, which is ~80% of new consults), I would start with a reference to the FIRE movement. I’m supposing most have heard of it. If not, explain it and refer them to a few sites, such as PoF.

    Emphasize the importance of the FI part of the equation (this has resonated with every single one of our clients). Once you have gotten the “Independence” across, then you are ready to move on to how to make it happen. Tell them it’s not what you save, it’s what you spend that determines their future. This doesn’t mean they have to retire early, just that they have the choice and are in charge of their future.

    From spending flows all other financial opportunities. Spending is the great impact on the success or the failure of goals reached on a timely basis; especially, impo, for high income professionals. For lower income (“typical”) families, the choices are far more limited. For those who go from $50k/yr suddenly to $200k – $500k+/yr, it is a heady experience. Without preparation and grounding, 90%+ will make DDD’s that they later sincerely regret. Sometimes, it kills my soul to listen to these stories.

    For the older ones, tell them to stop berating themselves. There is nothing to be gained. They need to forgive themselves and understand we all make mistakes. The past is behind them but they can change their futures.

    I think this is the best and broadest way to reach your audience and prepare them for more specific solutions in future talks. Lot of education needed, but you can point them to many resources to self-educate. You’ll have to do this or you will be swallowed up.

    Johanna Fox Turner, CPA, CFP: I am not your financial advisor; any responses are for general purposes only
    http://www.fox-cpas.com/for-doctors-only ~ [email protected]

    ENT Doc ENT Doc 
    Participant
    Status: Physician
    Posts: 3567
    Joined: 01/14/2017

     

    I vote for jumping to some charts to show index vs passive

     

    That is a good idea.  I can create some on PC or I am sure google has plenty but does anyone know of any compelling charts or graphs for this topic or other useful ideas?

    Click to expand…

    Whipped this sucker up.  Also shows what yearly loss (in real dollar terms) you have by choosing active over index.  Pays for a pretty nice vacation every year in retirement.  Take-away – be kind to your future self.

    Attachments:
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    Drop it into MD Drop it into MD 
    Participant
    Status: Physician
    Posts: 440
    Joined: 09/20/2018

     

    I vote for jumping to some charts to show index vs passive

     

    That is a good idea.  I can create some on PC or I am sure google has plenty but does anyone know of any compelling charts or graphs for this topic or other useful ideas?

    Click to expand…

    Whipped this sucker up.  Also shows what yearly loss (in real dollar terms) you have by choosing active over index.  Pays for a pretty nice vacation every year in retirement.  Take-away – be kind to your future self.

    Click to expand…

    Wow that is awesome!  I really need to learn to use Excel.

    This is a chart worth a million words.

    You only used 20K yearly which would represent just a single 401k contributions.  It would show a much more exaggerated and likely realistic demonstration with more contributions.

    Not only and I going to use this but I will be saving this sheet for future uses.  I truly appreciate it.  I will credit you as a random stranger on the WCI forum.

    #186329 Reply
    ENT Doc ENT Doc 
    Participant
    Status: Physician
    Posts: 3567
    Joined: 01/14/2017

     

    I vote for jumping to some charts to show index vs passive

     

    That is a good idea.  I can create some on PC or I am sure google has plenty but does anyone know of any compelling charts or graphs for this topic or other useful ideas?

    Click to expand…

    Whipped this sucker up.  Also shows what yearly loss (in real dollar terms) you have by choosing active over index.  Pays for a pretty nice vacation every year in retirement.  Take-away – be kind to your future self.

    Click to expand…

    Wow that is awesome!  I really need to learn to use Excel.

    This is a chart worth a million words.

    You only used 20K yearly which would represent just a single 401k contributions.  It would show a much more exaggerated and likely realistic demonstration with more contributions.

    Not only and I going to use this but I will be saving this sheet for future uses.  I truly appreciate it.  I will credit you as a random stranger on the WCI forum.

    Click to expand…

    The yearly payment is recurring.

    #186332 Reply
    Liked by Peds
    Avatar fasteddie911 
    Participant
    Status: Physician
    Posts: 310
    Joined: 05/31/2016

    Having been to one of these talks for the free meal, what stuck out to me most talking to others who went to the talk and who are less financially astute, was how the info was presented.  Simple charts, graphs, etc. really seemed to be more effective than complex math, extensive spreadsheets and data.  For example, some folks were mindblown when a graph comparing the effect of compound interests at 10% vs 2% over 30yrs, or the effect of regular savings over time, etc.  I’d keep it simple (at least what’s considered simple to most around here) and hit home the general points of budgeting, saving, investing, maybe taxes, etc.

    #186334 Reply
    Avatar orthodds 
    Participant
    Status: Dentist
    Posts: 148
    Joined: 11/07/2017

     

    I vote for jumping to some charts to show index vs passive

     

    That is a good idea.  I can create some on PC or I am sure google has plenty but does anyone know of any compelling charts or graphs for this topic or other useful ideas?

    Click to expand…

    Whipped this sucker up.  Also shows what yearly loss (in real dollar terms) you have by choosing active over index.  Pays for a pretty nice vacation every year in retirement.  Take-away – be kind to your future self.

    Click to expand…

    That’s all well and good but it’s so easy to do as Dave Ramsey says and just look at the fund performance and pick the one that does better than the market.  Duh!  Why settle for market returns minus expenses!?  I came across a youtube video the other day and this is what he was explaining to his radio audience.  He was making it sound like you’re an idiot if you can’t figure out how to pick a fund that beats the market.

    #186343 Reply
    ENT Doc ENT Doc 
    Participant
    Status: Physician
    Posts: 3567
    Joined: 01/14/2017

     

    I vote for jumping to some charts to show index vs passive

     

    That is a good idea.  I can create some on PC or I am sure google has plenty but does anyone know of any compelling charts or graphs for this topic or other useful ideas?

    Click to expand…

    Whipped this sucker up.  Also shows what yearly loss (in real dollar terms) you have by choosing active over index.  Pays for a pretty nice vacation every year in retirement.  Take-away – be kind to your future self.

    Click to expand…

    That’s all well and good but it’s so easy to do as Dave Ramsey says and just look at the fund performance and pick the one that does better than the market.  Duh!  Why settle for market returns minus expenses!?  I came across a youtube video the other day and this is what he was explaining to his radio audience.  He was making it sound like you’re an idiot if you can’t figure out how to pick a fund that beats the market.

    Click to expand…

    Dave Ramsey is for entertainment value only IMO, though I stopped listening because I didn’t find his terrible investing advice very entertaining.  I’m sure he’s a net positive influence on society, but my lord the guy needs to get a clue on the investing side (or look for a new revenue model so he’s not incentivized to give bad advice).

    #186357 Reply
    Drop it into MD Drop it into MD 
    Participant
    Status: Physician
    Posts: 440
    Joined: 09/20/2018

     

    I vote for jumping to some charts to show index vs passive

     

    That is a good idea.  I can create some on PC or I am sure google has plenty but does anyone know of any compelling charts or graphs for this topic or other useful ideas?

    Click to expand…

    Whipped this sucker up.  Also shows what yearly loss (in real dollar terms) you have by choosing active over index.  Pays for a pretty nice vacation every year in retirement.  Take-away – be kind to your future self.

    Click to expand…

    Wow that is awesome!  I really need to learn to use Excel.

    This is a chart worth a million words.

    You only used 20K yearly which would represent just a single 401k contributions.  It would show a much more exaggerated and likely realistic demonstration with more contributions.

    Not only and I going to use this but I will be saving this sheet for future uses.  I truly appreciate it.  I will credit you as a random stranger on the WCI forum.

    Click to expand…

    The yearly payment is recurring.

    Click to expand…

    Yeah I figured that. I just hope that most people in my audience save more then 20K a year.  I am probably one of the lower earners being young and primary care but we are just under 100K.  Then again the FI bug hit me and we work for it.  I couldn’t tell you if they will even know their saving rate or net worth.    That would be a good poll question.

    #186363 Reply
    Liked by Zaphod, ENT Doc
    childay childay 
    Participant
    Status: Physician
    Posts: 1048
    Joined: 01/09/2016
    I just hope that most people in my audience save more then 20K a year.

    Click to expand…

    Hmmmmmm

    #186517 Reply

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