On each episode of the White Coat Wellness podcast, Will Koster, CFP® drops some money wisdom for our
listeners in a segment conveniently called White Coat Wisdom.
Here is a roundup of Will’s first four White Coat Wisdoms from the first two exciting months of launching our
podcast. These four money wisdoms include helpful tips for student loans, cash flow, and insurance deductibles.
Each paragraph is time stamped in the full podcast episode videos below. If you would like to hear Will explain each financial habit, you can skip to the segment in the videos!
(16:46) When it comes to student loans, we get a lot of questions about income driven repayment plans. A wise man
once told me, “Don’t confuse the easy choice with the right choice.” Let me explain what I mean in this context. If
you’re in the process of repaying your student loans, you’ve likely seen an income driven repayment plan request
form.
(17:12) Question two on the current form asks you to choose a plan and it has a couple different acronyms for the
different IDR options. The first option, which says recommended by the way, reads, “I want the income driven
repayment plan with the lowest monthly payment.” Now, this is the easy choice. Choosing this option leaves the
decision of your IDR plan in the hands of your loan servicer. It’s like letting the car dealership decide how you want
to pay for your new car. It may not be the right choice.
(17:42) I know the form is complicated, I’ve walked through it with people myself. It looks a lot like a tax form and it
can be very complicated, but take the time to figure out which option is right for you, based on your specific situation
and your goals. Choosing the right IDR plan could mean the difference of thousands of dollars over the life of your
loans.
(14:02) Need help you simplifying your money life? Let me ask you a question. How many banks do you have
accounts with? How many accounts do you have? Too often we encounter households with countless checking and
savings accounts spread across multiple banks. Each spouse is responsible for different bills each month out of
different accounts and no one is really tasked with the function of saving. It’s like rowing a boat with a friend without
any rhythm or coordination. You may eventually end up where you wanted to go or you could end up rowing in
circles forever.
(14:39) My point here is simplify your cash flow. I'm not saying you can't have more than one bank account or you can't have accounts with more than one bank, but what I am saying is that you should have one central account where all the money flows in and all your expenses flow out. While budgeting is important, simplifying your cashflow is one of the easiest ways to take control of your money life.
(18:36) We’re going to be talking about student loans again because it seems like a topic that you can’t avoid.
Everyday on social media or in the news, there seems to be a new headline around student loans. Student loan debt
at all time high, or my favorite, less than 1% of the applicants have loans forgiven under public service loan
forgiveness program.
(18:57) Listeners just like you fall victim to the headache, the confusion and the anxiety that student loans can
create. My experience is the best remedy for anxiety around your student loans is to remind yourself of your game
plan. First off, do you even have a game plan? Are you going for public service loan forgiveness? Have you
refinanced? All of these questions when left unanswered can create uncertainty. However, when you take control of
your situation, it’s amazing how quickly confidence is restored. If you need help creating your student loan game
plan or you need a second set of eyes, I would suggest calling a professional. One that specializes in physicians or
dentists, and one that has history helping people with their student loans.
(21:33) Let's talk about deductibles. Your deductible is the amount that you would have to pay before your insurance company pays a claim. For example, if you backed into your mailbox with your car and caused a thousand dollars' worth of damage and your deductible is $500, you would have to pay the first $500 of the cost before your insurance company helps you out.
(21:56) Now, my main point of this segment is to ask you. Why is your deductible so low? The lower your deductible, the higher your cost of insurance. Typically, it's not advisable to just file a claim for a small accident like backing into your mailbox because when you file a claim, the insurance company may raise your monthly rate. Likely, you will just pay the thousand dollars yourself and the insurance company would never know, so my question is, "Why would you have a $500 deductible when you wouldn't file a claim unless the damage was over a thousand dollars? Bottom line, consider your threshold for a claim and set your deductible around that amount.
White Coat Wellness is a show explicitly for physicians and dentists. The host, Shane Tenny, CFP®, interviews
healthcare leaders about their journey in medicine and discussions include themes such as burnout,
entrepreneurship, diversity/inclusion, infertility, and more. As a bonus, each episode includes a money tip from Will
Koster, CFP®.
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Molly was the marketing director at SDT from October 2017 through November 2020. She is passionate about connecting with people, digital marketing, and serving her community.
