156: What to do with a Dramatically Lower Income

White Coat Investor Podcast

Dr. Jim Dahle of the White Coat Investor

Medicine, Health & Fitness, Business, Investing

4.9 • 2.3K Ratings

🗓️ 30 April 2020

⏱️ 66 minutes

🔗️ Recording | iTunes | RSS

🧾️ Download transcript

Summary

During this pandemic many physicians have seen their income dramatically lowered. What can you do when you are faced with a severe pay cut? We have a guest on this show who is dealing with that right now, having lost 50% of his income. I walk him through what can be done in this situation. Getting on a budget and cutting out any discretionary spending is the place to start. Putting your private loans on forbearance may be necessary. Stop investing. You really need the cash at this point especially if you don't have an emergency fund. The less you spend the longer you can go. Start looking around for other work. Whether you realize it or not, you're in a negotiation right now with your employer. They are trying to decide how little can they pay you and not have you leave but also without them going out of business. Now is the time to be the team player so you are the last guy cut and the first guy hired back. If this is you situation, we get into more details in this episode. so give it a listen and hopefully it will help. We also answer listener questions about investing in real estate during the pandemic, mortgage forbearance, backdoor Roth IRAs, tax loss harvesting, and more. This episode is all about the questions you and your colleagues need answered right now.

Contract Diagnostics is a long-term advertiser with us here at WCI. I love this company as they’ve helped hundreds of WCI get a ‘fair shake’ when it comes to reviewing and understanding their employment contracts – its all they do there. All contracts are reviewed by an in-house attorney and presented in a simplified way back to you. Using simple online signup, custom documentation, compensation data, as well as weekend and evening hours they make it easy for you. All packages are flat priced so you know what you will pay upfront – residents and fellows can even make interest free payments over time. So look them up – contractdiagnostics.com or 888-574-5526.

Transcript

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0:00.0	This is the White Code Investor Podcast, where we help those who wear the White Code get a fair shake on Wall Street.
0:06.0	We've been helping doctors and other high-income professionals stop doing dumb things with their money since 2011.
0:12.0	Here is your host, Dr. Jim Dolly.
0:18.0	This is White Code Investor Podcast No. 156, what to do with a dramatically lower income.
0:24.0	We're recording this on April 14th. I think it's going to go live on April 30th.
0:28.0	And this is a very exciting moment for us.
0:31.0	This is our last podcast being recorded in the bedroom of our rental house.
0:36.0	And so we're thrilled about this. We've had this podcast studio, you know, a table in the corner with a bunch of lights and mics, set up for the last seven months while we've been in our rental property.
0:46.0	While our home was being renovated. And it's caused a lot of funny moments.
0:50.0	For instance, we had somebody come over, a young couple lives nearby, come over and watch our kids while we went on vacation a few months ago.
0:57.0	So we cleaned everything up and moved out or didn't move out, but left for the trip and they came over that evening and they, you know, were staying in our bedroom because there's only place for them to stay.
1:07.0	And what do they see? Well, they see a camera and a bunch of lights and a bunch of microphones.
1:12.0	They're like, what are these guys doing in their bedroom? And so we're really looking forward to getting out of this space back into our house, especially with the dedicated white coat investor off the space in a real recording studio.
1:24.0	So we're thrilled to get back over there. It's going to be a lot of fun.
1:28.0	The kids are loving it. You know, it's mostly done now. We still need carpet and some paint.
1:32.0	But by the time you hear this, we'll be moved in over there. So it's going to be great.
1:35.0	The kids are loving the fire pole. They're loving the climbing wall. They're loving the secret passageway.
1:40.0	They're going to like the theater and the game room and all that kind of stuff. And of course, they'll be thrilled to have a little bit more space around Katie's loving her new kitchen.
1:49.0	It's all in all the appliances and countertops and cabinets and flooring and everything's all in. It's going to be very nice. And of course, I'm thrilled about the updated garage and having some space for the white coat investor and getting all the crap out of the landscaping that I really didn't like in the first place.
2:04.0	And so we're all very excited to be back over there. We'll move next week. And by the time you hear this, we'll be in the old new house.
2:12.0	All right, the word from our sponsor, contract diagnostics. They're a long-term advertiser with us here at WCI. And I love this company because they've helped hundreds of white coat investors get a fair shake when it comes to reviewing and understanding their employment contracts. It's all they do there.
2:27.0	All contracts are reviewed by an in-house attorney and presented in a simplified way back to you using simple online sign up custom documentation compensation data as well as weekend and evening hours. They make it easy for you.
	...

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