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Summary of The White Coat Investor 

4.7 . 3589 reviews

Short summary

Many physicians are bankrupt of financial knowledge because they spend all their lives studying medicine and never have time to learn about personal finance. At best, they pay financial advisors to handle their finances, and at worst, they just go on living without properly handling their money. Earning a huge amount can be delusional. If you think you’re financially okay simply because you’re earning so much, you’re unconsciously heading for financial disaster. Many doctors have retired without financial security because of this disillusion. The only way to guarantee financial security is to take matters into your own hands. Even if you have a financial advisor, you must understand the rudiments of personal finance. That’s where this summary comes in. James Dahle is a medical practitioner whose passion for personal finance led him to found The White Coat Investor LLC, a company that has helped thousands of doctors sort out their finances. You should listen to what he has to say to physicians concerning money!

Table of content

  • Summary of The White Coat Investor
  • About the author
  • What is The White Coat Investor about?
  • Who should read The White Coat Investor
  • Topics in The White Coat Investor
first key point

Medicine is no longer the guaranteed pathway to financial abundance

Listen the first key point
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It's a common truism in every society around the world that studying medicine or law will make you wealthy. This single reason is why so many traditional parents insist their kids must study those professional courses. They don't mind paying tuition for years because they are assured that it will all pay off once their ward graduates. There is also the fact that trained medical doctors and lawyers hardly struggle to get jobs, unlike people in other career paths.

However, when you consider it closely, this truism was only valid some 3 or 4 decades ago. There are medical doctors today who live from hand to mouth. It's even worse in the law field because the past few years have seen a steady decrease in the demand for lawyers. The demand for doctors is still very hot and there are no indications that doctors will be out of work anytime soon, but their financial situation isn't as it used to be in the 20th and early 21st centuries.

Here's the picture: in 1999, the average in-state tuition fee for med school in the United States was around $10,000, but now that figure has tripled (even quadrupled) in many states. And it's not like physician salaries increased by the same measure. Nowadays doctors get out of residency with so much debt to pay in student loans. In addition to that, by the time most physicians start earning high income from their practice, they are already above 30 with a family and most likely a teenager that's about getting into college.

Expenditure increases, making it difficult to amass wealth.
The older you get, the more your expenses increase, so you have to intentionally increase your financial wisdom!
It's not completely impossible to build wealth. There are medical doctors out there who managed to do it despite all odds and in this summary, you'd gain wisdom on how you too can achieve financial independence while still practicing the profession you love.
second key point

Wealth creation starts with being keen about your net worth

Physicians make more money than most people, but they tend to blow it, saving little to no money at all. Logically, they know that wealth is built through savings and investment but there is a lot of rationale behind their spending. As a physician, you spent so much time studying that when finally out of residency, you would want to relax and live a good life. Upon getting your first paycheck, you're tempted to move into a new and bigger apartment, get a new car for yourself and your spouse, and generally change your standard of living. It's not just you, the society expects a medical doctor to live well, so there's some sort of social pressure. In addition to that, the fact that your salary is suddenly increased means you don't have enough time to think things through, so you just go on a spending spree. It gets worse if you have a partner who loves shopping.
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third key point

Most physicians lack the financial literacy for wealth creation

fourth key point

Don't be too picky about med school, 90% of the things you need to know will be learned in residency

fifth key point

After saving a considerable chunk of money, the next step is to invest wisely

sixth key point

Conclusion

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What is The White Coat Investor about?

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