With 1150 ratings
By: James M. Dahle MD, Troy W. Hudson, et al.
Purchased At: $24.99
Written by a practicing emergency physician, The White Coat Investor is a high-yield manual that specifically deals with the financial issues facing medical students, residents, physicians, dentists, and similar high-income professionals. Doctors are highly-educated and extensively trained at making difficult diagnoses and performing life-saving procedures. However, they receive little to no training in business, personal finance, investing, insurance, taxes, estate planning, and asset protection.
This book fills in the gaps and will teach you to use your high income to escape from your student loans, provide for your family, build wealth, and stop getting ripped off by unscrupulous financial professionals. Straight talk and clear explanations allow the book to be easily digested by a novice to the subject matter yet the book also contains advanced concepts specific to physicians you won't find in other financial books.
This book will teach you how to:
- Graduate from medical school with as little debt as possible
- Escape from student loans within two to five years of residency graduation
- Purchase the right types and amounts of insurance
- Decide when to buy a house and how much to spend on it
- Learn to invest in a sensible, low-cost and effective manner with or without the assistance of an advisor
- Avoid investments which are designed to be sold, not bought
- Select advisors who give great service and advice at a fair price
- Become a millionaire within five to 10 years of residency graduation
- Protect your hard-won assets from professional and personal lawsuits
- Avoid estate taxes, avoid probate, and ensure your children and your money go where you want when you die
- Minimize your tax burden, keeping more of your hard-earned money
- Decide between an employee job and an independent contractor job
- And so much more
I am currently a 4th year medical student and have recently completed my MBA as well; I think this book is equally (if not more) useful than my MBA in terms of managing my money as a physician. I would consider this a "First Aid for the Personal Finances of a Physician". The book is high-yield and concise yet provides "recommended additional reading" at the end of nearly every chapter. By the time you have finished this book, you will be able to speak intelligently about many common financial topics such as investing, retirement accounts, taxes, loan repayment options, etc.
If you do not know ANYTHING at all about how to invest, what 401(k) and IRAs are, or what tax bracket you are going to fall into- this book will probably save you hundreds of thousands of dollars. I am not a salesman or advertisement-type-person, I sincerely believe this book can save people hundreds of thousands of dollars over their entire career.
In conclusion, every physician/future-physician should spend $17 on this short book and rest assured that they will competent in most personal finance topics.
You don't know what you don't know so either you can read a lot of Suze Orman or you can hire a smart CFA. However, be aware that a CFA is not an accountant and not a real estate, estate planing, or tax attorney. The portion on investing is perhaps too superficial. The author does cover personal finance such as disability insurance, excess liability, student loans and so on. I take issue with his advice on taxes. He suggests pushing the boundaries when paying taxes. Yes, there are some grey areas, and yes you might save a few dollars pushing those until you trip an IRS flag and are audited. Then you will pay your accountant for the audit and if you fight it, you will hire a tax attorney at $400 per hour. Assuming that you are right and that you win (and the first does not in any way guarantee the second) your expenses will be substantial, and if they are larger than your tax savings, too bad. In addition, you will likely be audited several more times. Congress writes tax laws, the IRS writes the tax code, and then there is case law; there is no one person on the planet who understands it all.
However, the advice regarding how to budget, how to live comfortably within, or below your means, how to put all the luxuries you feel you deserve now on hold for a few years was very helpful.
In addition, the information regarding selecting a "financial advisor" and learning to do your own taxes instead of paying someone to do them just makes sense and will help me to retire sooner and happier.