Featured Business
Our newsletter sponsor this month is Lawrence B. Keller, CFP®, CLU®, ChFC®, RHU®, LUTCF and his firm Physician Financial Services.
Larry has access to Guaranteed Standard Issue (GSI) disability insurance plans for Residents and Fellows at a significant number of academic institutions. These policies DO NOT REQUIRE MEDICAL UNDERWRITING1, Height/Weight (BMI) and participation in "hazardous" activities are also not taken into consideration. These currently include the Mayo Clinic, the University of Iowa, the University of Kentucky, Washington University in St. Louis, Albany Medical Center, NYU Langone Health, Mount Sinai Hospital, Stony Brook University Hospital, and many others.
Additionally, if you are a female physician in the Commonwealth of Massachusetts, this is your last chance to purchase a policy with unisex rates from Principal. Applications must be received by May 1, 2023.
Contact Larry today by email at Lkeller@physicianfinancialservices.com, by phone at 800-481-6447 or request a disability insurance quote or a term life insurance quote.
1 For eligible applicants.
2023-152529 Exp. 04/2025
WCI News
Looking to get your 2023 Continuing Financial Education done? We'll be rolling out the latest and greatest in the physician financial and wellness space on the 4th as the CFE2023 online course. Recorded at the 2023 WCICON, this includes all of the content from WCICON at a fraction of the price and is good for up to 22 credits of CME/Dental CE. It'll be available all year, but it'll be on sale for the first two weeks (4/4-4/17) for $100 off. Watch your email and the blog for more details. It's worth the price of admission just to see Stacy Taniguchi's talk. As usual with our courses, if you have an apple device you can use the Teachable app in your car pod-cast style.
Also in April we'll be taking submissions for our financial educator award. The announcement won't be until April 12th, but be thinking about who you can nominate for this $1,000 award. Please, please, please educate your peers. We'll even provide some slides to help you do it.
Jim had a nice great last week speaking to the Utah Dental Association. We had a great crowd so we hope it was helpful.
As mentioned above, Unisex disability insurance policies are phasing out in Ohio, Massachusetts, and Montana. This is too bad for women because these are the cheapest policies for them. Ameritas already phased them out last month and Principal will be phasing them out by the end of the month. As if you needed any more motivation to get this important coverage in place.
Market Report
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Data sources: Morningstar and SPGlbal
Pretty interesting month for investors. Stocks, bonds, and speculative instruments up overall, but the stock market rally was really led by Large Growth stocks. Over a 13% delta in a single month between large growth and small value. Real estate continues to have a rough time with interest rates climbing. International REITS actually have negative 5 year return numbers right now. Year over year inflation as measured by CPI-U is down to 6%, the lowest it has been since September 2021. What the Fed is doing seems to be working, although it is obviously having some less desirable consequences like the recent banking excitement. High inflation long-term, however, is devastating to an economy so it is worth going through some economic pain to get it back under control. It would be ideal to do so without causing negative economic growth like we saw in the first half of 2020 and less dramatically in the first half of 2022.
Best of the Blog(s)
Lots of great posts from across the WCI Network this month. Check them out!
- Recovering From a Financially Abusive Marriage Mostly positive feedback on this excellent article.
- How Do You Evaluate and Compare Mutual Funds and Exchange Traded Funds Super useful, took tons of work, but not controversial at all.
- How Our Private Real Estate Investments Performed in 2022 The one bright spot in our portfolio in 2022.
- Highlights and Behind the Scenes Stories From WCICON23 (Where One Doc Became an Actual Hero) Josh Katzowitz reports on the best WCICON ever.
- The Happiness Index: Mine Required My Own Version of Retirement What happened to your lost points?
- Emergency Medicine's Popularity Plummets EM residency positions have grown too much, too fast and all of a sudden anyone can match into it.
- How to Handle Making More Money Than Your Friends Great thoughts about an issue most of us face.
- What You Need to Know About Laddering CDs At least you don't take a principal hit if rates keep rising.
- From Medicine to Entrepreneurship: How Side Hustles are Changing the Physician Landscape Peter Kim loves entrepreneurship, and for good reason.
Best of the Web
Every month I recommend (about) 10 articles from across the web. Thank you to those who send us suggested articles.
- 2022 SPIVA Report. Yes, actively managed funds still suck in the long run. They didn't have a terrible year last year though. They underperformed by less than they have underperformed in any year since 2009. But they still underperformed on average. I've noticed these reports also now include 20 year data, which is very convincing to the long term investor.
- 29 Physician Specialties Ranked By Happiness. Derm is no longer at the top but neither is EM at the bottom despite recent match results.
- The Invisible Graveyard of Every Physician's Career: Why Every Doctor Needs a Badness Plan. Boost your longevity by having an advance plan to deal with the emotionally stressful events inherent to medicine.
- The Issues That Drive Patients to Leave Negative Reviews. Is your front desk staff killing you?
- Nearly 90% of Doctors Support Federal Ban on Noncompetes. I bet it's 100% of employee doctors!
- White Coat Investor: What to Focus On. I was interviewed for this one and discuss what really matters in investing.
- Details Emerge on LSD-Fueled Final Days of Malibu Ophthalmologist. Lots of lessons to learn from this one, not the least of which is "Don't do drugs, kids." Still, $60 million is an impressive net worth to accumulate by your mid 50s.
- How to Get Clients to Spend More Money. I actually consulted with Allan Roth about this one. This is a big issue I talked extensively about at WCICON this year (and in the upcoming CFE2023 course).
- A Comparison of Variable Spending Strategies. Love to nerd out on this stuff? This is a great article by Wade Pfau. The only question is whether it's worth bothering with as opposed to the "adjust as you go" approach. Most interesting thing there for me was the "fixed percentage rule" that allows you to spend 8.5% of your portfolio balance every year without ever running out of money. Hope your spending is as volatile as your portfolio.
- More Than Enough: A Brief Guide to the Questions That Arise After Realizing You Have More Than You Need. Mike Piper has a new book out and many white coat investors will need it eventually.
- Facing an underpayment penalty? Maybe not. Let the IRS figure it out for you.
Real Estate Opportunities
If you have interest in real estate investing, you should make sure you're signed up for our free monthly real estate newsletter too. It provides real estate education and introduces accredited investors to private real estate investment opportunities. Examples include:
- 37th Parallel offers multi-family funds and syndications. Currently raising money for Fund II.
- Origin Investments offers a variety of debt and equity funds, both evergreen and closed end.
While we are pleased to introduce these companies to you, and have invested with both ourselves, you still need to do your due diligence prior to investing with them. Please consider these introductions and not recommendations.
Great Stuff from the Forums
The WCI Forum, subreddit, and Facebook Group continue to be great places to get some help with your questions. See these great topics that people are discussing now:
- Real Estate Development Company Issuing 1099- Misc Instead of K1 to Investors Know what you're investing in.
- Dentistry is Getting Tough A debate about geographic arbitrage
- FIRE or Med School? It's a tough decision whether to go to medical school when you already make good money, but you only get to live once.
- Can I Afford a $1.2 Million House? Will an expensive home really make you happier enough to justify working for another 5 years?
- What is Wrong With Leasing a Car? Might be the same reason you don't rent a house for 30 years.
New Podcasts
Be sure to check out the podcast if you haven't yet. 30,000-40,000 are listening to every episode. If you'd like to leave a question to be answered on the WCI Podcast, record it here.
- #306 Using Retirement Accounts (Sponsored by SoFi)
- #305 Navigating a Law Suit (Sponsored by CompHealth)
- #304 Roth's, 401(k)s and 529s (Sponsored by Locumstory)
- #303 A Random Walk Down Wall Street with Burton Malkiel (Sponsored by Laurel Road)
The Milestones to Millionaire Podcasts (all accessible at this link) are short podcasts celebrating your accomplishments! Lots of professional variety this month.
- #107 Cardiologist Becomes a Millionaire (Sponsored by MLG Capital)
- #106 ER Doc Becomes a Millionaire Only 3 Years Out of Training (Sponsored by SoFi)
- #105 Public Health Dentist Pays Off Student Loans (Sponsored by All Global Circle)
- #104 Dual Physician Couple Pay Off Loans During Residency (Sponsored by InCrowd)
Not enough podcasts to get you through the month? Try these from Passive Income MD!
- PIMD Podcast #152 Maximize Your Tax Benefits With Passive Real Estate Investing
- PIMD Podcast #151 How Do Bank Failures Affect the Economy, Real Estate Market, and Your Money
New Videos
Come check out the WCI Youtube Channel. 507 more of you subscribed this month, now more than 21,900! Please subscribe, like, and share!
Tons of new videos this month. Here are just a few of them:
- Why You Should Max Out Your Retirement Accounts
- The 6 Principles of Asset Location
- Should I Create an LLC For My Passive Real Estate Investments?
Tip of the Month
Lots of financial books and courses talk about the importance of mindset. Like many of you, I often roll my eyes and chuckle quietly to myself. However, there is definitely something to it. The first "mindset" book I know of is the classic "Think and Grow Rich" from Napoleon Hill, published in 1937, late in the Great Depression. My mother gave me this book many years ago. I even read it, but didn't think much of it. That was before I got rich. Now that I look at the process of getting rich retrospectively, it doesn't seem so dumb. Consider a few of the classic quotes from the book:
- "The starting point of all achievement is DESIRE. Keep this constantly in mind. Weak desire brings weak results, just as a small fire makes a small amount of heat."
- "A goal is a dream with a deadline."
- "Whatever the mind of man can conceive and believe, it can achieve."
- "Every adversity, every failure, every heartbreak, carries with it the seed of an equal or greater benefit."
- "A genius is simply one who has taken full possession of his own mind and directed it toward objectives of his own choosing, without permitting outside influences to discourage or mislead him."
It isn't that you can do anything you want. You're not going to have the acting career of Brad Pitt, no matter how much you want it. You're not going to be the President of the United States. However, I am convinced that you are very likely to achieve what you most want. So be careful what you want.
If you want to be wealthy. I mean you really want it. Maybe it's not your number one goal but it's a very important one to you. You're going to achieve it. You know why? Because you're going to be thinking about it all the time. You'll read books about it. You'll read emails about it (like this one). You'll listen to podcasts about it. You'll talk to your partner, friends, and colleagues about it. And most importantly, you'll think about it. A lot. You'll be, if not constantly, at least frequently reminding yourself of it. And that will cause you to make decisions that lead to wealth. You'll earn more. You'll invest better. You'll spend less and save more. Eventually, that will lead to wealth.
Perhaps you most desire to have an awesome relationship with your spouse. So you spend all of your time thinking about, talking about, and doing those activities that will improve that relationship. It works the same way.
Or perhaps you want to be a fantastic doctor. You'll listen to medical podcasts on your way to and from work. You'll be constantly trying to improve your skills and knowledge.
Want to know what you are? What do you think about when you can think about whatever you want? Is it your relationships? Friends? What others think about you? Money? Sex? The latest entertainment you viewed? Your patients? That's what is most important to you and you're probably going to achieve that, and at the expense of other things in your life. There doesn't have to be just one thing, of course, but mindset does matter.
I often talk to doctors early in their career. They're not rich yet, but after just a few minutes talking to them or even just reading their words, I know they're going to be eventually. Because I can tell it's important to them. Is it important to you? What else is important to you? Choose carefully, because that is what you are going to accomplish and be.
Thank you for being part of the WCI community. Your work is important and we hope for your financial and professional success.
Jim
James M. Dahle, MD, FACEP
Founder, The White Coat Investor
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