Roth Conversions

I had a request recently to do a post on Roth Conversions. As many times as I have mentioned them on this site, I’ve never really written a post specifically about them. They’re not particularly complicated, however, the decision about whether or not to do one and how much to convert absolutely can be. How to Do a Roth Conversion Step 1 – Transfer money from your traditional IRA to a Roth IRA. Step 2 … Continue reading

Why Your 401(k) Should Have a Roth 401(k) Option

[Editor’s Note: This guest post is from John Lim, MD. He sent me this email: “I’m a radiologist practicing in Newport Beach, California in a group of about 30 radiologists.  I had no prior financial background and basically taught myself finance since beginning in private practice in 2002.  I love finance and sometimes wonder if it was my true calling.  I have no websites or books to sell or advertise.  I serve as a trustee … Continue reading

How To Write an Investing Personal Statement

Every investor, personal or organizational, should have a written Investing Policy Statement (IPS.) There are two primary benefits of a written IPS. The first is that it forces you to write goals and formulate a reasonable comprehensive financial plan. The second is that it gives you something to refer back to when you consider making changes to your plans or during difficult economic periods when you are considering changing your plan (but shouldn’t.) I firmly … Continue reading

Scholarship Deadline Coming Up

Many readers may not be aware that this year The White Coat Investor, LLC, will provide a scholarship to a professional student. The amount of this scholarship is over $11,000 and growing. The purpose of the scholarship is primarily to directly reduce the indebtedness of the scholarship winner, but also secondarily to help spread the message of the importance of financial literacy among doctors and other professionals. It is also a great way for the … Continue reading

Freedom Formula For Physicians – A Review

Dave Denniston, CFA, is a regular reader of this website (and has purchased advertising from time to time) and recently wrote one of the best physician-specific personal finance/investing books out there entitled Freedom Formula for Physicians: A Prescription for First Class Financial Health for Doctors. As a long-time reader of this site, I suspect Dave knows exactly what this review is going to say. He has clearly learned from the reviews I have done of … Continue reading

Super Saving For An Early Retirement

[Editor’s Note: This is a guest post submitted by a physician and a regular reader. He wishes to remain anonymous. We have no financial relationship. It illustrates how a reasonably high salary and a high savings rate can do more than just about everything else, especially when it comes to retiring early. This reader has a net worth at least twice mine after coming out of residency at the same time. He didn’t include any … Continue reading

The Second Million – Why the Rich Get Richer

In my first book, I wrote about how my wife and I became millionaires just a little over 7 years out of residency, despite having an average income of less ~$180K for those 7 years. ($180 * 7 = $1.26 Million if you’re curious.) I recently thought about writing another book titled The Second Million, but I really couldn’t come up with enough to fill a book. However, I did manage to come up with … Continue reading

12 Questions to Ask Before Purchasing Whole Life Insurance

Should you buy whole life insurance? The short answer is, “Probably not.” If you’re interested in the long answer, keep reading! In this post I’m going to present an easy to use checklist you can go down when considering the purchase of any type of “permanent” or “cash-value” life insurance such as whole life, index universal life, or variable universal life insurance. Each of these types of insurance combines a death benefit that pays out … Continue reading

10 Sales Tactics From The Financial Services Industry

[Editor’s Note: This is a guest post from Mark Zoril, AIF®, a reformed financial salesman who saw the light and now runs his own company designing flat-fee small business retirement plans. Although this is not a paid post (I don’t have those), he is a paid advertiser on this website. I hope you enjoy this post as much as I did. It provides an inside look at the industry.]       “Coffee is for … Continue reading

What You Need To Know About Roboadvisors

I am asked about five times a week to write a post about Roboadvisors. I have written a little about them in the past, and even had a guest post about them, but haven’t really gotten around to doing a huge write-up about them due to a lack of time and interest in doing the research required to do a really good post on them. You need to be aware that I have an affiliate … Continue reading

My Two Least Favorite Ways to Pay For Advice

I thought I would share two emails I received in a 24 hour period earlier this year. They are very similar to other emails I get multiple times a week and demonstrate very well why I believe paying commissions is the absolutely worst way to pay for financial advice. Lots of advisors I interact with like to discuss the intricacies of and the possible rare needs for financial products like cash value life insurance. But they … Continue reading

The Doctors’ Loophole – Student Loans and PSLF

[Editor’s Note: This is a guest post from Jan Miller, a student loan consultant and an advertiser on this website. I get at least 2 or 3 emails a week from readers asking me to look into my cloudy crystal ball and tell them whether or not PSLF will be a good idea for them and whether or not it will change before they can take advantage of it. This post helps answer that question. … Continue reading

Fixed Versus Variable Loans

My July column at Physician’s Money Digest is about how to choose between a fixed and a variable rate loan. I get this question at least once a week, usually referring to student loans, but occasionally to a mortgage. The older I get and the more risk tolerant I get, the more I like variable loans. It helps that interest rates have been falling my entire life, of course. At any rate, take a look … Continue reading

Rational Expectations – A Review

It is no secret that I think highly of William Bernstein, MD and his writings. At my first Bogleheads convention (2008) Jack Bogle was in the hospital but I was only slightly disappointed because I got to meet Bill there, who had far more direct impact on my financial life than Jack did. His now 13 year old tome, The 4 Pillars of Investing, was easily the best of the first 20 financial books I ever … Continue reading

Alpo in Retirement: Is It Really That Bad?

[Editor’s Note: I love guest posts from regular readers and I know you all appreciate hearing a different voice. I especially enjoy getting well-written guest posts that require minimal editing. This one had me chuckling the whole time, so I’m sure you’ll like it. This one is from Geoff Hubbell, MD. We have no financial relationship.] Avid readers of the WCI blog will have noted several references to eating Alpo in retirement. Apparently this happens when … Continue reading