It can be so difficult for some to get started in real estate investing (or any kind of investing, really) because they're paralyzed by a lack of knowledge and confidence. They might not know the language of investing. They might not know where to turn for the right information. They might not know if they can take on the burden of the extra work that investing might require. So, how do you help someone shed their inertia and get moving down the path toward financial prosperity? It's something Jim has been thinking a lot about lately. Let's talk about it more below in October's financial tip of the month.

ANNOUNCEMENTS

	Join Your White Coat Investor Community at WCICON24 – Invest dedicated time to improve your financial well-being and personal wellness at the Physician Wellness & Financial Literacy Conference, February 5-8, 2024, in Orlando. Save $300 off your registration for the best CME conference of the year until October 12th! See WCICON24 Speakers & Conference Details
	Review the Basics of Finance with WCI 101 – This FREE email series will help you make well-informed financial decisions, avoid getting ripped off, and learn how to transform your high income into wealth. Enroll in WCI 101 Today
	WCI Medical School Scholarship – A huge thank you to all scholarship sponsors. Platinum Level Sponsors ($8,000 or more): Physician Financial Services, MR Insurance, SoFi. Gold Level Sponsors ($1,500 or more): Contract Diagnostics, WealthKeel LLC, Fox and Company Wealth Management, Insuring Income, Physician Agreements Health Law, DI4MDs.

MARKET UPDATE

Data sources: Morningstar and SPGlbal

September was a bad month for stock investors (although just one month in an otherwise good year), with stock asset classes down 3-6%.
So much for a comeback for value stocks this year. The multi-year trend of growth beating value (and large beating small and US beating international) continues. When it will reverse, no one knows, but trees don't grow to the sky. The pendulum will swing eventually.
Bonds lost money this month too, with varied results year to date.
If you don't like what traditional investments are doing the last year or two, realize that there really isn't anywhere else to hide in this rising rate environment. Real estate investors aren't super happy (and lots of crowdfunding sites have gone out of business in the last year.) Precious metals and commodities aren't exactly lighting it up. Bitcoin might look good YTD, but realize it's still down 58% from its peak.
This is part of investing for the long term. Real diversification means that something you own is usually doing poorly and every now and then, everything seems to be doing poorly. But that will pass. It's extremely unlikely that an intelligent , diversified investment in stocks or real estate will have a negative real return over the next two decades. It's also unlikely that bonds will have a long term negative nominal return. Stay the course.

REAL ESTATE OPPORTUNITIES

37th Parallel – A private multifamily acquisitions and asset management firm that provides a vertically integrated investment platform (funds and single-asset investments) for investors seeking tax-advantaged income and equity growth. Discounts are available for White Coat Investors.

Origin Investments – Founded in 2007, Origin builds, buys, and finances multifamily real estate projects in fast-growing markets. Offering private real estate funds which focus on increasing tax efficiency, enhancing portfolio yield, maximizing growth, and minimizing portfolio volatility. It's possible to get started with an investment of only $50,000.

Please consider these introductions and be sure to do your due diligence prior to investing in any real estate investment opportunity.

WCICON24

Will We See You in Orlando?

The pandemic taught all of us that something is lost without gathering in person. Zoom and other online technologies have come a long way, but it's just not the same thing. Some of our favorite days each year are gathering in person with fellow white coat investors at The Physician Wellness and Financial Literacy Conference to learn, play, socialize, and network.

WCICON Photos

Jim's favorite part of the conference is always meeting you personally, hearing about your successes and your challenges. This coming February, our first East Coast WCICON in Orlando is going to be packed with top-notch content, great wellness activities, and incredible networking events. This is your chance to carve out the time to immerse yourself in a relaxed atmosphere where you can prioritize your financial well-being and take steps toward the life you envision. Attending this conference is an experience you won't want to miss. We hope to see you in Orlando, February 5-8, 2024. Learn more here and be sure to register by October 12 to save $300 off in-person registration.

BEST OF THE MONTH

Best of WCI

Here's How Much We Make, Save, and Spend as 'Moderate Earners' – WCI columnist Tyler Scott gives us the inside scoop on his finances. It's a fascinating look under the hood.
Beware of Overconfidence and Hubris as an Investor – Adventure is a regular part of Jim Dahle's life, but sometimes, he gets overconfident. That can be a bad idea for your finances.
The 2024 Retirement Plan Contribution Limits – We're already looking ahead to how much we can save for next year.
Financial Lessons Learned from a Doctor Turned Patient – A family doctor explains how she had to confront her MS diagnosis, and in doing so, she became a little wiser (and maybe a better physician).
Should I Feel Bad About Taking Time Off? Auntie Marge Explains It All – WCI columnist Margaret Curtis' alter ego writes about how you should be taking every moment of your PTO.
What Your Hospital Doesn't Want You to Know – We didn't know it'd be so difficult to make doctors aware of WCI. Here's a behind-the-scenes look at our efforts.
Here's What I Learned on My Trip to Israel – WCI content director Josh Katzowitz reflects back on his trip to the Middle East and explains the six lessons he learned while abroad.
Side Hustles: The Real Inflation Hedge – Want to make sure inflation affects you the least amount possible? WCI columnist Daniel Smith advises you to find another income stream.
Investing in Oil and Gas – For those who want an alternative to stocks and bonds, oil and gas investing can be a good way to save in taxes or create an income stream. But there are risks.
Should I Pay Off Student Loans or Invest? – Ah, the eternal question.

New Podcast Episodes

Be sure to check out The White Coat Investor Podcast if you haven't yet. 30,000 to 40,000 are listening to every episode. If you'd like to leave a question to be answered on the podcast, record it here.

#331 – 401(k) and IRA Limits Are Totally Separate (Sponsored by Pattern)
#330 – Financial Therapy with Aja Evans (Sponsored by Pattern)
#329 – Why Mixing Insurance and Investing Causes So Many Problems (Sponsored by SoFi)
#328 – A Conversation with Locums Docs (Sponsored by Locumstory)

The Milestones to Millionaire Podcast has short episodes celebrating your accomplishments.

#131 – Nurse Becomes a Millionaire and Finance 101: Student Loan Refinancing (Sponsored by StudentLoanAdvice.com)
#130 – Family and Sports Medicine Doc Is Back to Broke and Finance 101: Tenant Contracts (Sponsored by DLP Capital)
#129 – Family Physician Lives Like a Resident and Finance 101: Inflation (Sponsored by All Global Circle)
#128 – Podiatrist Pays Off Student Loans and Finance 101: Dave Ramsey's Baby Steps (Sponsored by WCI Insurance Recommended List)

The Passive Income MD Podcast

#176 – Is Entrepreneurship the Key to Beat Physician Burnout?
#174 – Part 1: Real Estate Syndications in 10 Steps

Best of the Web

Every month we recommend (about) 10 articles from across the web. Thank you to those who send us suggested articles.

Surgeon Sex and Long-Term Postoperative Outcomes Among Patients Undergoing Common Surgeries – The patients of female docs did better. This sort of study could have some very real impacts on the physician workforce and specialty choice.
Will I Just Keep Spending More and More Money Forever? – Yes, you will. But whether you will on an inflation-adjusted basis is a different question. If you do, the FI goalposts may move further away as you go.
Blackrock Backs Off ESG – Feels like the tide has turned there. Practically speaking, an ESG tilt was almost identical to a tech tilt anyway. Jim did get some negative feedback this month just for even talking about Oil and Gas Investments. (One reply consisted only of "Booooo!") ESG concerns and a desire to do something about them are very real among investors.
Investors Expect Returns Twice as High as Financial Advisors – It's important to have a realistic expectation of future returns so that you earn and save an appropriate amount to meet your goals.
What We Lose When We Retire (and why Jonathan Clements now gets ghosted) – It's not just income and structure you lose. Do you like his stuff? Try On Second Thought too.
Why I Think International Diversification Is a Good Idea – Mike Piper argues for an allocation to an international stock index fund for a reason you probably haven't thought about.
You Probably Need Less Money Than You Think in Retirement – Ben Carlson provides data showing that people spend down the portfolio just 4%-34%, and the median portfolio is only spending the income. #oversaving
Are Fixed Index Annuities More Efficient Than Bonds? – Allan Roth and Bill Bernstein (politely) trash Wade Pfau's academic paper ("Protection as an Asset Class") arguing that they are. Jim will discuss this with Wade on stage at Bogleheads this month.
Stay Away from Zero Percent C of I at TreasuryDirect – If there's anyone who knows the ins and outs of TreasuryDirect, it's Harry Sit. His recommendation? "Treat TreasuryDirect as a delicate object. Do as little as possible with it." You've been warned. Jim has been considering perhaps just buying his TIPS at his Vanguard brokerage account, and this is one more good reason why he might. Still can't do I Bonds there, though.
Safety in the Mainstream – While you're at it, take a look at this classic, also by Harry.
Will You Need Permission to Spend in Retirement? – Christine Benz is here to help you underspenders.
The Puzzle of the Missing Billionaires – Many people ask, "What about Warren Buffett?" when the right question to ask is why there aren't more Warren Buffetts. Likewise, instead of asking "What about billionaires?" a good question to ask is why there aren't more of them.

TIP OF THE MONTH

By Dr. Jim Dahle,
WCI Founder

This month I attended The Physician Real Estate and Entrepreneurship Conference put on by Passive Income MD. A great time was had by all, but a recurring theme was the importance of (and the difficulty of) just getting started.

It reminded me of an experience I had had earlier that week. Our COO, Brett, is in charge of our local church youth group, and he dragged me out with him to help them with an adventurous evening. We went and rappelled a slippery waterfall in two stages. Being experienced canyoneers, this sort of thing is relatively trivial for Brett and me, and we certainly could do this while keeping those kids 100% safe. But they didn't know that. Despite the fact that they were secured to the mountain with not one but two 5,000-pound capacity ropes, it was still very difficult for these teenage boys to get themselves over the edge. That was the hardest part. The larger, final rappel was about 80 feet, but you wouldn't know it since it took half the time just to get them down the first two awkward, slippery feet. Going over the edge and making the commitment to complete the task was clearly the most difficult part. After a while, it was getting annoying. I had a hockey game to get to, and it was starting to get dark. I just wanted to throw them over the edge, because I knew (even if they didn't) that there was really no serious risk being taken.

It is the same way in real estate investing. Many white coat investors don't know that my initial financial goal when I started WCI was to be making $1,000 a month within two years and that I planned to quit if I didn't accomplish that (I barely did). The alternative plan? Build a local real estate empire. Time after time at PIMDCON, I met someone who was absolutely paralyzed to get started with real estate investing—to buy their first property or to invest in their first syndication or private fund. So many people came to the conference just to try to get the knowledge and confidence to "move over the edge" when it came to real estate investing. I just wanted to push them over the edge so they could get started and see that it really wasn't so bad.

I led a small mastermind group of five docs, three of whom were stuck in paralysis by analysis. What was keeping them from getting started? In one case, it was simply not yet knowing the language of real estate. I recommended some good books and our No Hype Real Estate Investing course. I pointed out that she would have access to it forever and that it came with a one-week money-back guarantee. Another doc feared the additional work it would take. We helped him to understand that the costs of inaction were greater than the costs of action. It would cost him more work not to move forward. Another doc feared both liability and poor performance. While liability never goes away completely, it can be minimized to the point that it isn't worth worrying about simply by buying plenty of insurance and placing the property into an LLC. Poor performance can be guarded against by keeping a long-term perspective. While nobody really knows how real estate is going to perform for the next year or two, the chances of a property having a poor return over the next two decades are really low. Time heals all wounds in real estate. One of the docs with significant real estate investing experience still worried about her inability to do good due diligence on a syndication. We provided her with some good suggestions as well, including actually doing the due diligence, not investing in them at all (no called strikes in investing), investing less into each deal, and diversifying between properties by using a fund instead of individual syndications.

But I was struck by just how hard it was for people to get started. I fear I have spent too little time on this problem over the years while writing blog posts and doing podcasts. Not just regarding real estate investing, but with regard to getting disability insurance, figuring out your student loans, putting together a financial plan, enrolling in a 401(k), or opening a Roth IRA. Inertia is a powerful thing, and it's hard to get going in the beginning. So, how can I better educate and motivate people to take the first step to getting their financial ducks in a row? I don't know, but I'm going to spend a lot more time thinking and talking about it in the coming months. If that's you, I'll say the same thing to you that I said to those young men on the edge of the cliff: "Get your butt over the edge before I throw you off it! I've got a hockey game to get to." If that doesn't work, maybe I'll try begging, bullying, and even gentle persuasion as best I can!

You can do this. Hundreds of thousands of doctors just like you have become financially literate and made life-improving changes in their financial situation. We're all right here rallying around you to help you to do the same.

The White Coat Investor

Past Newsletters

September Newsletter – 6 Lessons Learned While Climbing Half Dome
August Newsletter – How to Stay Rich
July Newsletter – The 'Guaranteed' Path to Physician Wealth and the 5 Ways to Fall Off It
June Newsletter – A High Income Covers a Plethora of Financial Sins
May Newsletter – Should QLACs Be Part of Your Portfolio?

Click here for all past newsletters.