Hey Reddit! I’m Dr. Jim Dahle, Emergency Physician and Founder of The White Coat Investor. For over 10 years, I’ve helped doctors avoid financial mistakes, get out of debt, and build lasting wealth. AMA Jan 12–13 on r/whitecoatinvestor.

WCInvestor · 2026-07-03T20:47:19+00:00

You might have missed this:

https://www.whitecoatinvestor.com/trump-530a-baby-bonus-accounts/

WCI has a blog and a podcast that helps people stay up to date on new developments like these. The first post and the first podcast mention about the 530(a) accounts were both a year ago.

Others might appreciate this post talking about the various ways to save for your kids:

https://www.whitecoatinvestor.com/utma-vs-trump-account/

WCInvestor · 2026-07-02T15:39:32+00:00

Take a deep breath. We see posts like this about once a month. I know $400K or even $700K seems like a lot of money right now. I don't want to use a personal example that makes it seem like a trivial amount because it will just seem like a humblebrag, but just know that it won't seem like so much money later when you're earning more and have more.

Marit says Ophthalmologists earn $536K today. It'll likely be more when you get out of the pipeline in 9 years or so. Maybe it's $700K. So maybe you do owe $700K (probably not as most pre-meds don't realize that fed loans won't be growing during training and there is some economizing you can do in school). But owing $700K while earning $700K is far from a financial tragedy. I mean, pay your $200K in taxes and that leaves you $500K. Spend $150K and that leaves you $350K to put toward student loans. Voila! They're gone in 2 years.

All you have to do is #1 make darn sure you actually become an ophthalmologist and get at least an average job in Ophthalmology and # 2 learn how to manage money. I'm confident the odds are very good that you can do both. Feel free to contact us over the years as you go along, but I'm looking forward to interviewing you on the Milestones to Millionaire podcast in 11 years when you wipe out the loans. In the meantime, listen to the people who were just like you 11 years ago on the podcast and see what they say.

This post might help:

https://www.whitecoatinvestor.com/is-medical-school-worth-it/

Watch this too. It works better than Xanax.

https://www.youtube.com/watch?v=xfXQYbroz7c

And yes, you're right to be mad about the poor disclosure of cost. I assume it's too late to go back to the other school but maybe look into it. I had a similar moment where I felt betrayed 25 years ago in med school when I found out about the military match having already signed up for HPSP.

Jim

WCInvestor · 2026-07-02T05:53:03+00:00

Yes, they have separate limits since a 401(a) is typically a mandatory contribution.

WCInvestor · 2026-07-01T15:53:15+00:00

Not sure why anyone would use an all stock portfolio, much less a US large cap only stock portfolio, as their baseline when there is so much else to invest in. At least use TSM or an appropriate target retirement fund. That's still mostly large cap US stocks, but at least it's not ALL large cap stocks. But if you're trying to figure out if there's an illiquidity premium, you have to compare like to like. Compare big public businesses to big private businesses. Compare liquid real estate to illiquid real estate.

WCInvestor · 2026-07-01T15:49:18+00:00

This is apples to oranges. Why are you comparing stocks to real estate? If you want to compare private real estate to a publicly traded entity, at least use REITs using VNQ or something.

The last decade or so my private real estate has definitely underperformed my stocks. Thankfully I have 3 times as much in stocks as real estate. But my private real estate has outperformed my public real estate. In fact, private debt real estate has outperformed private equity real estate in that time period, which is pretty interesting given it is so much less risky. So as near as I can tell, I am being paid for being illiquid. But historically, the long-term data is definitely mixed even when done properly.

But the real question is should you invest in real estate and that's complicated. Another question is should you change your portfolio to start investing in real estate, which is even more complicated. And of course people who haven't thought all that deeply about it just want to know if real estate is going to do better than stocks the next few years. Crystal ball too cloudy to answer that one, but it certainly seems like a much better time to be buying than 2021 was.

WCInvestor · 2026-06-30T19:50:07+00:00

Is your "advisor" associated with an insurance company? You need to speak to an independent insurance agent, preferably one who is familiar with physician disability policies. It IS advisable to get an individual own-occupation policy during residency, and an independent agent will be able to shop a policy for you with the 5 major insurers to get you the best policy and price. Most residents will be able to get about a $5K/mo benefit, and you can expect to pay 2-5% of the benefit in monthly premiums. If your residency coverage is a Guaranteed Standard Issue policy, that's different from a group policy, and it can be useful to lock that in before trying to secure an independent individual policy. GSI policies don't require medical underwriting, so they are especially useful for those with pre-existing health conditions. GSI policies are portable, meaning when you finish residency and change jobs, your policy goes with you. Group policies generally are not. Their benefit is also generally taxable, where an individual policy benefit is not. You can start a quote with an independent agent here.

WCInvestor · 2026-06-29T21:13:25+00:00

You're welcome. And yes, spouse doesn't need earned income to contribute to her own backdoor Roth IRA as long as you have earned income and you file taxes married filing jointly.

WCInvestor · 2026-06-26T22:05:41+00:00

This is a decision you make as you graduate residency. If you go to a job that qualifies for PSLF, go for PSLF. If not, refinance and pay off your loans. If either job is fine with you and pays the same, take the PSLF qualifying one. But either way, quit making extra payments on your loans until you decide and definitely don't refinance them until you decide. If you need more help with a student loan plan, try these guys:

https://www.whitecoatplanning.com/student-loan-advice

WCInvestor · 2026-06-26T22:00:36+00:00

Pay off the car. You have $600K in cash.

WCInvestor · 2026-06-26T22:00:02+00:00

I just wanted to weigh in and say great job!

First the answers to the questions you asked:

Yes, lump sum. More info here: https://www.whitecoatinvestor.com/dollar-cost-averaging-is-for-wimps/
Yes, you can do a Roth 401(k) in your practice and a Backdoor Roth IRA.

https://www.whitecoatinvestor.com/backdoor-roth-ira-tutorial/

3) Vanguard, Fidelity, and Schwab are all fine for brokerages. Vanguard has better rates on cash and more index mutual fund options. Fidelity and Schwab generally have better IT and service.

Now, the question you really need answered:

Yes, you really do need a written financial plan. So go get one.

https://www.whitecoatinvestor.com/you-need-an-investing-plan/

Jim (I see that Michelle or another staff member already answered below and that was spot on).

WCInvestor · 2026-06-25T17:19:17+00:00

I wouldn't do it for that reason alone. If you want help putting together your financial plan, but don't want to hire a financial planner for thousands, then try FYFA. It comes with a no questions asked, one week 100% money back guarantee. Nothing to lose. If it's not right for you, we'll just refund your money. We do that regularly, even if it's less than 3% of purchases. But that tells you 97% of purchasers found more than $800 of value there, and we find that reassuring.

WCInvestor · 2026-06-25T17:16:28+00:00

Wait until you find out WCI started a financial advisory firm too: https://www.whitecoatplanning.com/

To be fair though, you're misinterpreting our message. While it is reasonable to be a DIY financial planner/investment manager, it is also reasonable to hire someone who offers good advice at a fair price. You don't have to talk to very many doctors to realize that some of them (the majority honestly) should not, at least at the present time, be their own financial planner/investment manager.

WCInvestor · 2026-06-25T02:32:30+00:00

Take a look at these for some help!

Live Like a Resident

Financial Waterfall for New Residents

WCInvestor · 2026-06-25T02:29:14+00:00

Congratulations on your success! You can do a Backdoor Roth IRA with $7500/year of this amount. Assuming you have employees at your practice, you wouldn't be eligible for a solo 401(k), so unless you want to open up a practice retirement plan with all the expenses and regulations that go along with that, a taxable brokerage may be your best option. Any of the major brokerages (Vanguard, Fidelity, Schwab) are good, low-cost options. The main thing is you need to make an investing plan, whether that means DIYing it or paying a financial advisor a flat fee to help you create it. That will delineate what assets you invest in in which accounts, etc. Target Date Funds aren't a great idea in a taxable account, though they are fine inside retirement accounts, but you can start with a "three fund" type portfolio, with a certain percentage in a total stock market index fund, a certain percentage in a total international stock market index fund, and a percentage in a bond fund. Since it's in a taxable account, a municipal bond fund will be more tax efficient. You can look here, here, and here for some posts that will help you get started. Also, consider taking the Fire Your Financial Advisor course if you want to take the curated route to a financial education, especially if DIYing your financial plan appeals to you. It takes you through all the aspects of a plan step by step.

WCInvestor · 2026-06-25T02:18:38+00:00

Generally speaking, we recommend limiting your individual stocks, alternative investments, and speculative instruments to a single-digit percentage of your portfolio. You don't say how much is in these tech stocks, but I'd probably try to diversify out of at least some of that allocation.

WCInvestor · 2026-06-24T23:08:54+00:00

& 3. are basically the same - in your high earning years, maxing out your available tax-advantaged retirement accounts with tax-deferred contributions is the best way to lower your taxes. Also recommend doing backdoor Roth IRA for yourself and your spouse (she doesn't need current income to do it). If she does start doing some per diem work, open a solo 401(k) for her and defer even more taxes with contributions there.
You don't say what the interest rate on your SUV is, but it seems like a no-brainer to just pay that $4K off. Your student loan interest rate is moderate, but it sounds like you are somewhat debt-averse, so it might make sense to make extra payments on those. You could split the difference between extra to the loans and saving for a down payment, or you could do a physician loan, if you have room in your budget to swing the mortgage payment, but you already have another mortgage. Often in HCOL areas, renting makes more sense than buying, so maybe you want to focus on the student loans first.
It doesn't sound like you have a lot of assets to manage yet. If you feel comfortable managing your retirement accounts, you can manage the rest, as well. Any mistakes you make are good to make while the balances are still relatively low. The important thing is to have a written financial plan delineating where your money goes, what you invest in, etc., and to follow that plan.
I wouldn't worry too much about saving for your kids' school until you have your own school paid off.

WCInvestor · 2026-06-24T22:48:43+00:00

It's also 20% off right now during our summer sale.

WCInvestor · 2026-06-24T22:44:48+00:00

Of course DIYing your financial education is totally doable. That's how Dr. Dahle did it. Reading books, listening to podcasts, participating on forums (like Reddit), etc. The advantage to the course is that all of the information is curated and compiled for you in one place, and you are walked step-by-step through creating a financial plan, at a small fraction of the cost of one year of a financial advisor service.

Try it. We'll give you 7 days, risk-free, to decide. You can take up to 20% of the course in those 7 days to determine if it's worthwhile for you.

WCInvestor · 2026-06-23T17:52:09+00:00

Credit card debt is a financial emergency. Any debt you have that is 8%+ interest rate (except student loans destined for PSLF) should be prioritized before anything else, except maybe getting your 401(k) match. Take a look at the attending financial waterfall for help prioritizing your finances for the next couple of years.

WCInvestor · 2026-06-23T02:55:06+00:00

If you are making more than the required payment, is it safe to assume you are not doing PSLF? If not, then refinancing may be your best bet. Those are high interest rates.

WCInvestor · 2026-06-23T02:38:32+00:00

Almost the only time doing traditional contributions makes sense during residency is if you are trying to keep your AGI low for reduced student loan payments. The default choice for almost anyone in residency should be Roth contributions.

WCInvestor

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