Ep 183: Creating predictability in unpredictable economic times with Dr. Elisa Chiang

Summary

Dr. Elisa Chiang discussed strategies for creating predictability in unpredictable economic times, emphasizing that the fundamentals of the economy are generally sound, with current uncertainty stemming from external factors. She highlighted the importance of understanding economic interrelations and the potential impact of challenging international relationships.

Dr. Chiang suggested that individuals and businesses should evaluate their dependencies and explore ways to become more self-reliant. For physicians, this includes recognizing the value of their skills and exploring options beyond traditional employment, such as private practice or becoming invaluable within their current roles. She also emphasized the importance of diversifying income streams and managing personal finances to reduce reliance on a single paycheck.

The conversation also covered strategies for physicians to increase their income, such as specializing in high-value procedures, leveraging support staff, and improving efficiency. Dr. Chiang advised questioning fixed mindsets, challenging existing beliefs, and experimenting with new approaches to adapt to unpredictable times. She also discussed tax planning, investment strategies, and the importance of maintaining a long-term perspective when dealing with market volatility. For those nearing retirement, she recommended assessing risk tolerance, diversifying portfolios, and building a cash cushion.

Dr. Chiang offers one-on-one coaching to help individuals navigate their financial situations and achieve their financial goals. Her podcast, 'Grow Your Wealthy Mindset,' provides financial literacy in bite-sized pieces, helping listeners build the knowledge and mindset needed to create financial stability.

Chapters

Introduction to Predictability in Unpredictable Times

• Elisa Chiang was invited to discuss creating predictability in unpredictable economic times.
• The discussion is framed as non-political, focusing on the factual unpredictability of the world.
• The goal is to provide strategies for individuals to make their financial situations more predictable.

Economic Fundamentals and Global Interdependence

• Chiang stated that the fundamentals of the economy are still good, unlike the issues in 2008 with banking regulation.
• The current uncertainty is attributed to the actions and statements of certain individuals.
• The discussion highlights the importance of understanding the complexities of economics and global interrelations.
• Anytime decisions are made from an independent place, you start to realize we're actually not independent at all.

Challenging Independence and Embracing Interdependence

• Chiang suggests challenging the idea of complete independence and recognizing interdependence on others.
• Asking questions about dependencies and self-reliance is valuable, but actions must be carefully considered.
• Many people feel dependent on their paycheck, but physicians have options due to the physician shortage.
• Separating the ability to produce income from the current job can create stability.

Creating Independence and Managing Control

• The discussion covers the mentality behind creating a private practice and the desire for independence.
• It's noted that even in private practice, there is still interdependence on systems and people.
• The focus should be on how to become independent and self-determining results in situations where you don't have control over all of these things.
• It's important to understand what you can and can't control.

Strategies for Exerting Independence

• Chiang suggests becoming an entrepreneur within your job to make yourself invaluable.
• This involves attracting patients directly and highlighting your value to the practice or institution.
• Employers care about generating income, so making yourself invaluable in this area is crucial.
• Taking care of personal finances and creating multiple income streams reduces reliance on a single paycheck.

Translating Value into Income

• The inherent value of experience, training, and knowledge is highlighted.
• Physicians translate this value into income through their actions.
• The trap of trading time for money limits income potential unless value is translated into different income streams.
• The discussion explores ways physicians can generate income outside the classic RVU model.

Increasing Income within the Physician Realm

• Specializing in specific procedures or surgeries can elevate income.
• Leveraging other people, such as nurse practitioners, can double clinic output.
• Hiring scribes can increase productivity and collections.
• Physicians should work at the top of their income level, delegating tasks to others.

Mindset Shifts for Unpredictable Times

• Adopting a growth mindset can help individuals respond more effectively in unpredictable times.
• Questioning current beliefs and challenging the status quo is important.
• Comparing oneself to others who are thriving can provide insights and motivation.
• Willingness to spend money to make money and accepting failure are key to success.

Helping Individuals Deal with Change

• Questioning the truth of current situations and exploring potential changes is crucial.
• Experimenting with small changes and learning from others can lead to improvements.
• Advocating for necessary resources, such as dedicated scrub techs, can increase efficiency.
• Believing in the potential for change and presenting a clear case for it is essential.

Financial Viability in Private Practice

• A simple formula for private practice success is income minus expenses minus tax burden.
• All three factors can be influenced in different ways.
• Leveraging people, doing more cases, and optimizing income streams are ways to increase income.
• Tax burden can be managed through various strategies.

Tax Planning and Side Businesses

• Every time is unpredictable, so framing the mindset accordingly is important.
• The more we think like, yeah, the world is doing whatever it's worlding. The world is doing whatever it's doing. We can make our own predictivity, then we don't have to keep thinking like, oh, it's unpredictable, and we have no way to affect it. It's just always unpredictable.
• As a W-2 employee, there are limited options for tax reduction.
• Having a side business can provide opportunities to write off personal expenses.
• Side hustles should align with passions and translate into value and money.

Time Management and Productivity

• Finding something else that you need to find you having to find more time in order to do something helps you structure your time so that you are most efficient with your time.
• Limited time resources require careful management.
• Calendaring and time-blocking can improve efficiency.
• Having a list of tasks that can be done in 10-15 minute intervals can boost productivity.

Managing Retirement Funds

• If retirement is 10 years or more away, continue with the financial plan and consider contributing more.
• Maximize retirement accounts and explore other savings options.
• Buying stocks when they are on sale can be a great strategy.
• Establish a risk tolerance and adjust investment strategies accordingly.

Investment Strategies and Risk Tolerance

• The stock market tends to go up over time, especially with more people investing.
• Investing during downturns can lead to better outcomes.
• Even in retirement, there is still a long investing career ahead.
• Avoid panic selling and maintain a long-term perspective.

Retirement Planning and Withdrawal Rates

• Assess investment strategies and consider shifting to a more conservative portfolio if nearing retirement.
• Develop a cash cushion to avoid selling stocks during the first few years of retirement.
• Understand what money is for and focus on enjoyment and security.
• Consider a Monte Cristo analysis to assess the chances of running out of money.

Dr. Chang's Coaching and Podcast

• Chiang offers one-on-one coaching to help individuals reach their financial goals.
• She provides a judgment-free zone to discuss finances and job transitions.
• Her podcast, 'Grow Your Wealthy Mindset,' provides financial literacy in bite-sized pieces.
• The podcast helps listeners learn the information and mindset needed to create financial stability.

Action Items

Dr. Chiang suggested individuals and businesses should evaluate their dependencies and explore ways to become more self-reliant.

Dr. Chiang advised physicians to recognize the value of their skills and explore options beyond traditional employment.

Dr. Chiang emphasized the importance of diversifying income streams and managing personal finances.

Dr. Chiang recommended questioning fixed mindsets and experimenting with new approaches.

Dr. Chiang advised assessing risk tolerance and diversifying portfolios.

Dr. Chiang recommended building a cash cushion for those nearing retirement.

Growyourwealthymindset.com