ER Doc Advisor - Financial Planning & Taxes for Emergency Physicians

EP 15: All-time Low Interest Rates... Act Now!

Would you rather have $1M invested, growing at 7% per year or a $1M home, mortgage-free? If this question causes pause, that’s understandable. On this episode, we discuss how there is a purely numerical answer to this question, but even so, that may not be the conclusion you arrive at. Like everything in finance, the psychological impact cannot be ignored.

In any event, with all-time low interest rates, perhaps a once-in-a-lifetime opportunity is sitting in front of you. We discuss physician loans, the counter-intuitive notion of paying down debt quickly, and provide numerical examples to help illustrate the difference.

Topics Discussed:
  • What interest rates are and how they’re determined.
  • The once-in-a-lifetime opportunities you might have right now.
  • The importance of acknowledging the emotions that are involved in financial decisions.
  • The different methods of paying off debt.
  • The opportunity costs of paying down your mortgage vs. investing.
Resources Mentioned:

Case-Shiller Index

ERdocadvisor.com  

Tags

ER Doctor, Financial Advisor, interest rates, all-time-low, low interest rates, mortgage, student loans, debt,

by 
Scott Wisniewski, EA