Episode 23. Eric Tait, MD MBA -- Altering your financial mindset due to changes in medicine.

03/28/18 • 54 min

Episode 23 Doctor Money Matters.

Welcome to another Doctor Money Matters episode. In this episode I talk with Eric Tait, MD, MBA, an internist and asset manager who started his own investment firm. We discuss why physicians need to achieve financial independence. Dr. Tait’s has a very well thought out perspective on the future of medicine and we talk about how he separated his financial success from the practice of medicine.

Eric was influenced by his work for an insurance company while obtaining his MBA. This experience helped him realize how physicians are viewed as just another labor cost center. As physicians we generally don’t think about how we are viewed by the people who pay us. (Remember for most of us it’s not the patients who pay.) He then realized he had to become financially independent as soon as possible and developed a systematic approach to achieving this. We do this when doing a procedure or reaching a diagnosis and I think its valuable in the investment world also.

Ultimately he chose to use real estate to achieve his goal of financial independence but he talks about how he analyzed different asset classes and arrived at this decision.

We also briefly talk about his views on cryptocurrency and then how his fund works.

Finally we discuss some of the successes and mistakes he has made as an investor.

It’s great to see fellow physicians taking charge of their own financial future rather than having it handed to them.

As always the discussion on this show is for your education and entertainment only and is not personalized investment advice. Please do your own diligence prior to investing in anything.

I want to thank Dr. Tait for being my guest on this episode of Doctor Money Matters. I hope he inspired you to analyze your own mindset about your investments and your financial future as a healthcare professional. Ultimately, I will still lean towards simple investment approaches but I enjoy learning about different options.

Eric’s company can be found at Vernoville.com and he just started his own podcast recently called The Physician’s Road. Please be sure to check it out.

Please let your friends know about this podcast by sharing it on text, whatsapp or whatever social media platform you are on.

More episodes of this podcast are available at www.doctormoneymatters.com and Apple Podcasts, Google Play, Stitcher, etc. All episodes are also now on YouTube (Audio only) and Facebook.

Episode 23 Doctor Money Matters.

Ultimately he chose to use real estate to achieve his goal of financial independence but he talks about how he analyzed different asset classes and arrived at this decision.

We also briefly talk about his views on cryptocurrency and then how his fund works.

Finally we discuss some of the successes and mistakes he has made as an investor.

It’s great to see fellow physicians taking charge of their own financial future rather than having it handed to them.

As always the discussion on this show is for your education and entertainment only and is not personalized investment advice. Please do your own diligence prior to investing in anything.

Eric’s company can be found at Vernoville.com and he just started his own podcast recently called The Physician’s Road. Please be sure to check it out.

Please let your friends know about this podcast by sharing it on text, whatsapp or whatever social media platform you are on.

More episodes of this podcast are available at www.doctormoneymatters.com and Apple Podcasts, Google Play, Stitcher, etc. All episodes are also now on YouTube (Audio only) and Facebook.

Previous Episode

Episode 22. Ali Chaudhary, MD -- Striking out on your own

This episode is about taking control as a physician and learning your value. Many doctors don’t understand their dollar value as practicing physicians. It’s not discussed formally in most training situations and we generally are happy with the increase in salary we get from residency/fellowship to becoming attendings. My guest today Dr. Ali Chaudhary had similar experiences as many of us as he transitioned from training. However, he decided to do something about and start his own locums company when he realized how much these agencies were making on top of what they were paying him.

In this episode we talk about how he did this, why he did this and how his experience can help other physicians discover their own value. We also discuss the pros and cons of going independent. Whether you are happy with your current employment situation or are itching for a change, being aware of your value will place you in a better position for the future.

We also talk briefly about angel investing and Ali’s experience with it. He is from the Silicon Valley area and so it comes in his DNA. It’s a high risk, high reward type situation that has become more accessible for physicians recently. I’m not recommending it for most of us, but we should be aware of all the investment possibilities out there.

I want to thank Dr. Chaudhary for being my guest on this episode of Doctor Money Matters. I hope he inspired you to take control of your own career and learn more about your financial value as a physician. Doctors need to help make the healthcare system more efficient. This is one way to bring down overall healthcare costs while keeping those who provide the care paid appropriately.

Ali’s company can be found at locumsunited.com

Please let your friends know about this podcast by sharing it on text, whatsapp or whatever social media platform you are on.

More episodes of this podcast are available at www.doctormoneymatters.com and Apple Podcasts, Google Play, Stitcher, etc. All episodes are also now on YouTube (Audio only) and Facebook.

You can follow me on twitter @drmoneymatters

Please consider joining the Doctor Money Matters Facebook group.

Thanks for listening and please leave us positive reviews and continue to share this podcast with your colleagues.

Some other physician hosted podcasts that I recommend are:

Docs Outside The Box

The Hippocratic Hustle

The Happy Doc

Doctors Unbound

The White Coat Investor

There are many others, so please support your physician colleagues.

Next Episode

Episode 24. Physician on Fire, MD -- Achieving Financial Independence

Welcome to another Doctor Money Matters episode. This is a great episode. I got to interview one of the superheroes of physicians and finance, the Physician on Fire, the anonymous anesthesiologist who started the very popular financial blog by the same name.

In this episode we talk about how he decided to go down the FIRE (financial independence, retire early) path, his plans now that he has reached FI (financial independence), and his advice for those who are interested in following this path.

We also get into some detail about how he calculated the numbers to determine he had achieved his goal. We also took some questions from social media and discussed his brewery investment and his own personal beer brewing hobby.

A couple of the concepts discussed in this episode:

Geographic arbitrage -- Practicing in a low cost of living area while making a great income allows you to save more faster.
Sequence of returns risk -- The idea that what happens to your assets (the total returns) around (immediately prior to and immediately after) retirement can determine how comfortably you can withdraw from your overall asset pool.
Savings rate -- how much you should be saving as a percentage of post tax income. He challenges people to live on half your take home pay if you want to reach FI sooner. He has now reached a 75% savings rate after reaching FI as he doesn’t have a mortgage or doesn’t need to pay for disability insurance
Donor Advised Fund -- An investment account that set up can make charitable contributions to via donated stock or other assets. This account can then continue to grow via the market and you can choose to make your charitable contributions over time.

Clearly this mindset has resonated with many people as the FIRE community has exploded. PoF’s website has demonstrated significant growth over its 2 year existence and he has provided valuable resources for those interested in these topics.

I want to thank PoF for joining us on the podcast. I encourage you to visit his Physician on Fire blog where you can get very valuable information.

Please let your friends know about this podcast by sharing it on text, whatsapp or whatever social media platform you are on.

More episodes of this podcast are available at www.doctormoneymatters.com and Apple Podcasts, Google Play, Stitcher, etc. All episodes are also now on YouTube (Audio only) and Facebook.

You can follow me on twitter @drmoneymatters

Please consider joining the Doctor Money Matters Facebook group.

Thanks for listening and please leave us positive reviews and continue to share this podcast with your colleagues.

Some other physician hosted podcasts that I recommend are:

Docs Outside The Box

The Hippocratic Hustle

The Happy Doc

Doctors Unbound

The White Coat Investor