Category Archives: Personal Finance

Is medical school “worth it”? An introduction to Internal Rate of Return (“IRR”)

Finance hiring is down, law school grads are having a tough time finding real law jobs, so what is an ambitious but risk averse college student to do with his or her life these days? Okay, right now the answer is computer science. Yes seriously, do computer science. But let’s pretend it is the year 2001 and the only other option respectable option is medical school. But doesn’t med school take a lot of time (4 years school plus 3-7 years residency/fellowship) and cost a lot of money? How can we figure out if going to med school and not earning doctor money until 7 years from now is worth it financially relative to just entering the workforce and working for those 7 years? Continue reading

How charitable is your favorite nonprofit?

“The more you give, the more you get, that’s being alive” – The Money Song, Avenue Q

Charitable giving serves a valuable purpose  in  our society. It allows organizations in health, education, social services and others to provide benefits to people who otherwise couldn’t afford them. It allows people who have built up wealth to give back and make a difference. The federal government even subsidizes charitable giving by allowing donations to be deducted from income reported for taxes (effectively kicking in up to 39.6% of each donation). It’s a great system that is meant to fund those people and organizations in need. At least that is how it should be. Continue reading

Build a marriage tax penalty calculator spreadsheet

Summer and Fall are generally regarded as “Wedding season,” a time when love and celebration are in the air. December, on the other hand, could be regarded as “Should we get legally married for tax reasons before the end of the year” season, a slightly less romantic affair. Continue reading

Build a Spreadsheet to help you choose a healthcare plan

Will you save more with standard PPO or a high-deductible PPO Saver plan with a Health Savings Account?

It is currently Open Enrollment season at many workplaces, which is when employees choose their medical insurance and other benefits plans for the upcoming year. It’s also the time of year when people grumble “why is the US healthcare system so complicated” and just elect whatever plan they had in the prior year. Building a spreadsheet can help someone compare the costs and benefits of each of the plans under a variety of different assumptions about tax rate and healthcare expenditure. Continue reading

Do you want the stock market to go up or down?

At first glance, it sounds like an obvious question – surely it is better when stocks go up, right? From watching the ads on CNBC, it would seem that higher stock prices directly translate into more steak dinners and golf vacations while lower stock prices mean bringing your own peanut butter sandwiches to work (jelly is for bull markets). Continue reading

Personal Finance Made Easy (with Spreadsheet Modeling!)

Use a spreadsheet to help see the effects of three key personal finance tips: Earn more, spend less, invest wisely

A quick search for “personal finance” on Amazon.com will reveal a vast amount (100+ pages of results) of literature on this important topic.  We imagine that a fresh 22 year old college graduate could easily get overwhelmed by the chorus of advice and opinions.  For them, we offer this post on how to use a spreadsheet to forecast your financial future, and see how your decisions will affect your finances in future years.  Continue reading