Index fund investing doesn’t get much attention. It’s not flashy, it doesn’t make headlines, and it won’t give you exciting stories at a dinner party. But history shows that boring can be very good—especially when it comes to long-term investing. One of the most famous demonstrations of this idea is known as the Warren Buffett Challenge . The Warren Buffett Challenge: Passive vs. Active Investing In 2007, Warren Buffett  issued a public challenge to the hedge fund industry. H

What Is an Emergency Fund? \An emergency fund is money set aside to cover financial surprises or sudden, large expenses that life inevitably throws your way. Think of it as your personal financial safety net, there to protect you when things don’t go as planned. For many physicians, the biggest financial shock is job loss. The COVID pandemic was a wake-up call. It showed us that physician jobs are not as immune as we once believed. Clinics shut down, physicians were furloughe

If you’ve ever sat down to look at your retirement options and felt like you were staring at a bowl of alphabet soup, you aren't alone. 401k, 403b, 457, IRA... it sounds more like a series of secret codes than a savings plan. The truth is, these names actually refer to specific sections of the U.S. tax code. The government wants you to save for your future (so they don't have to take care of you later!), so they created these accounts as "tax incentives." Essentially, they’re

An IRA, or Individual Retirement Account, is a tax-advantaged account that allows you to set aside money for retirement as long as you have earned income. Even children with earned income from a job can contribute to an IRA.   Like other retirement accounts, IRAs come in two main flavors: Traditional IRAs and Roth IRAs. While they share similarities, the tax treatment and long-term planning implications are very different, especially for high-income earners like physicians.  

Step 0: If you don't have IRA accounts at Vanguard, open a Vanguard Traditional IRA Account and a Vanguard Roth IRA account. Make sure you do not have any assets in any traditional/pre-tax IRAs including a SEP IRA or Simple IRA. You don't have to have your Tradtiiaonl IRA and Roth IRA accounts at Vanguard. Fidelity and Charles Schwab are other good brokeraage firm with low costs and a wide selection of low cost index funds. The screenshots in this article are from Vanguard.

If you want to build wealth, you’ve got to invest. It’s that simple. Think of it this way: the whole goal of investing is to get your money working for you. Because if your money isn’t making money, you  will always have to be the one working to make it. Let’s talk about how to set up a plan that gets you to financial freedom.   Why Invest? The purpose of investing is to grow your wealth over time. A solid investment plan allows your money to compound and multiply, helping yo

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Arrival fallacy is the illusion that once we obtain our goal or reach our destination, we will finally be happy. The term arrival fallacy...