2017 Q2 PoF Portfolio, Spending, and Blog Performance Update

With the third quarter nearly halfway over, I may be a bit overdue with this one, but better late than never, right? One advantage to getting this out late is the ability to include some sites’ quarterly reviews which don’t come out until a few weeks into the subsequent quarter. I will share those with you, along with updates on our family’s spending, and a look at some blog statistics from its sixth quarter in existence. 2017 Q2 PoF Portfolio Update   I’ve described my portfolio and some rationale for what I own previously. The image below is a snapshot […]

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How to Think About Illiquid Investments

VML winery

Today’s post was written by the host of the Freedom Formula for Physician’s Podcast, Dave Denniston. The chartered financial analyst has chatted with a number of physician authors you may be familiar with, including: Jim Dahle, MD of The White Coat Investor Kevin Pho, MD of KevinMD Cory Fawcett, MD of Prescription for Financial Success The late Amanda Liu, MD of Dr. Wise Money Jon Appino of Contract Diagnostics Physician on FIRE of Physician on FIRE In addition to being an engaging interviewer, he is also a book author, blogger, and of course, financial advisor. Today, he is writing about […]

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From Hubris to Humility – Dr. Segan’s Top 17 Investing Mistakes

largest rubber duck

PoF: You may recall Dr. Segan from his previous guest post on “failing” early retirement. Today, he details additional failures by sharing his top investing mistakes. Douglas Segan, MD JD (yes, he is a doctor and a lawyer) is an expert on insurance and asset protection, having written on the topics in numerous guest posts at The White Coat Investor.  Tell us where you went wrong, Dr. Segan. We’ll try not to repeat the same mistakes! From Hubris to Humility – My Top Investing Mistakes   Both physicians and investors have a challenging time admitting and discussing their mistakes with others. It […]

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Holy Stealth Wealth Part II: Developing an Investor Policy Statement

Black Hills railroad

To recap, in Part I, we met Dr. SW, decided on a simple three fund portfolio for his investments, and toyed with the idea of a donor advised fund. Today, we will expand upon that last idea, make a plan for his kids’ future, touch on insurance and asset protection, and last but not least, develop an investor policy statement. Please keep in mind that I am not a financial advisor and the only letters behind my name are M.D. I am relying on the knowledge I’ve gained from a healthy dose of reading and personal experience, and on the […]

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Pay Yourself First? No, Pay Yourself Last.

pontoon with slide

Today’s insightful guest post comes to you courtesy of a financially independent physician who has had a blog longer than WCI and I combined. Dating back to 2007, wealthydoc.com has been sharing wisdom in numerous areas including investments, financial planning, careers, and he has written a number of pertinent book reviews for the FIRE minded physician. Check out his counterintuitive advice below, check out his site, and look for him on Twitter with the handle @Wealthy_Doc.   Pay Yourself First? No, Pay Yourself Last.   If you have been reading about personal finance at all you likely came across the phrase, “Pay yourself […]

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He Earns $1,800,000 a year. He spends $70,000. Holy Stealth Wealth!

Millionaire Home

I was browsing the Bogleheads forum a few weeks ago, the way I often do. One particular thread title caught my attention. “High Income Earner Humbly Seeks Advice” I write for high income professionals, and the humble ones are my favorites. I decided to take a peek to see if I could offer any advice. After reading through the post and mostly excellent responses, I didn’t necessarily have a lot to add — we Bogleheads know our stuff — but the sheer volume of information pouring in was a bit overwhelming, sometimes conflicting, and a whole lot to take in for […]

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Retirement Planning for Doctors: Why It’s Tough and How to Get It Right

Today’s post is a guest post from Rick Pendykoski, the owner of Self Directed Retirement Plans LLC, a firm that specializes in the type accounts discussed in a recent post on real estate in a self-directed IRA. Mr. Pendykoski and I have no financial relationship.   Viewed from the outside, the medical profession looks highly lucrative, and most people think that doctors don’t have to worry about loan repayment, budgeting and retirement planning. The reality is not quite so rosy, though. Despite earning well, many doctors find themselves unable to max out their retirement plans and save enough for the […]

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Using Your IRA for Real Estate & Crowdfunding Investments

Dream Home Lake Michigan

Today’s guest post was written at my request by Chad Chubb, CFP of Wealthkeel. I am intrigued by the substantial returns being offered in the crowdfunded real estate space, but less enthused about the tax treatment of those returns, particularly while occupying the top tax brackets. Knowing that real estate can be owned in a self-directed IRA, I figured why not crowdfunded real estate investments? What follows is the result of my inquiry. I want to thank Mr. Chubb for the time he took to research the topic and write this informative article. His company, Wealthkeel, is an advertiser on […]

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8 Reasons Why You Should Invest With Mutual Funds Instead Of A Variable Annuity

Savannah Headstones

Today’s Saturday Selection is a classic post from The White Coat Investor. In the post, he outlines the numerous ways investing in plain old mutual funds beats a variable annuity. I obviously agree with the good doctor. Half of my investments are in passive index funds in a taxable account. Zero percent of my nest egg is tied up in a variable annuity, or any type of life insurance product for that matter. As per usual, this post originally appeared at the WCI network partner site The White Coat Investor. Variable annuities (VA) are an insurance product that is best […]

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The Story of Dr. Moneybags

Today’s post is a guest post rom Tom @ High Income Parents. A fellow anesthesiologist and father of five, he has burst onto the blogging scene in the last few months with some wonderful and relevant posts for high income families.     A number of his articles have landed on the pages of The Sunday Best, and his writing was featured yesterday in a guest post @ The White Coat Investor. I encourage you to check him out! Now, please tell us a story, Dr. Tom.   The following is a dramatization. Names, characters, businesses, places, events and incidents […]

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Case Report: Roth or Traditional Contributions for a Low Six-Figure Household

Most of my writing is directed at physician households, and most (attending) full-time physician households have solid six-figure salaries. In a well-compensated specialty or with a dual income, it’s not unusual for a household to have income of $500,000 or more. However, not all of my readers are in that position. Some are students or residents. A resident couple will make $100,000 to $120,000. A PA or NP may have a similar salary, as will many different combinations of individual or dual income households. Today’s post was inspired by a reader who has a low six-figure household income. Six figures, yes, […]

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A Vanguard Three Fund Portfolio Just Got Cheaper!

Vanguard, the brokerage company that gave the world its first passive index fund in 1976, has been a low cost leader for over forty years. The firm has been known to have the lowest cost passive index funds, but recent moves by Fidelity and Schwab actually undercut Vanguard’s fees on a few popular funds. The other day, Vanguard announced it had lowered its fees on those key funds that make up the three fund portfolio, while also lowering its fees on a mere 164 other funds this year. The move makes Vanguard’s funds equal to or cheaper than Fidelity’s, but not […]

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The State of Real Estate Crowdfunding

Today’s post is a guest post from Soren Godbersen of EQUITYMULTIPLE, a crowdfunding commercial real estate investment company. The company is not a site sponsor, but I do have an affiliate partnership with them (if you invest with them via a link from this site, the site earns money).  I personally have not made crowdfunded real estate investments like my friends The White Coat Investor and Passive Income MD have, but the deals will start to look more attractive as my income drops and tax treatment of such deals will improve in the coming years. -PoF. Soren, the floor is […]

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2017 Q1 PoF Portfolio, Spending, and Blog Performance Update

Another quarter has come and gone, and I thought it would be a fine time to update you on my portfolio, the markets in general, and some facts and figures regarding the blog.   PoF Portfolio Update   I haven’t made any significant changes to my investment portfolio. I have added a solo 401(k), which gets a portion of website profits. The account represents 0.15% of the overall portfolio.     My taxable account has TLH (tax loss harvest) trading partners VFIAX (S&P 500) and VTSAX (total stock market). The international funds are also TLH partners, although not ideal, since one […]

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Debunking The Myths Of Whole Life Insurance

Saturday Selection: Debunking The Myths Of Whole Life Insurance This classic post originally appeared on The White Coat Investor.   There are more than 400,000 insurance agents in this country, and almost all of them would love to sell you a whole life insurance policy.  If you buy a policy with premiums of $40,000 per year, the commission would typically be somewhere between $20,000 and $44,000 for that agent. As you might imagine, that commission can be highly motivating, especially given the median insurance agent income of $47,000.  To make matters worse, many of the worst policies offer the highest commissions. As […]

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Top 5 Reasons This Physician Holds $500,000 in Cash

Minnesota 51 Iowa 14

Today’s Top 5 list is a guest post from VagabondMD, a late-career interventional radiologist who has been a regular reader here, and a frequent contributor of wisdom on the WCI forum. In his early fifties, he is looking forward to reducing his workload to part-time status this fall. Take it away, VagabondMD!  Top 5 Reasons I Keep a Half Million Dollars Under My Mattress*   (* my wife asked me to add here that we really do not keep any money under the mattress. None at all. Really.)   It is personal finance dogma to maintain a liquid (i.e. cash) […]

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Revisiting and Revising the Investor Policy Statement

Lego Pet Town

A year ago, I published a post with an authorative, almost demanding title: You Need an Investor Policy Statement. Did you listen? Or even hear me? Most likely not, as my readership then was a fraction of what it is now. Either way, I encourage you to go back and consider the original post. While you may not need an IPS, this simple document will help you define your goals and the strategies you intend to implement to achieve stated goals. An IPS is a set of guiding principles. Asset allocation is a vital piece, and if you don’t have an IPS, this […]

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Plan Bs, Redundancies, and Contingencies

I woke up to a cool house a couple weeks ago. Not the “hey man, cool house!” type of cool (well, actually, yeah, it is) but I’m referring to the air temperature in this instance. It wasn’t ice cold, but rather chilly, so I put on another layer and waited for the furnace to do its thing. The furnace did not do its thing. It was 10 a.m., the thermostat was set to 69° F, and it was 61° in the house. Air was coming out of the registers. Cool, 61 degree air. The furnace was out. I didn’t freak out. […]

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Top 5 Reasons to Front-Load Your Investments

amana front loading washer

As January comes to a close, it’s a great idea to explore what it means to “front-load” your investments, and why you should do so if you can. To front-load is to invest a lump sum of money early on, as opposed to dollar cost averaging over a longer period of time. Typically, we’re talking about investing as much as you can afford in the beginning months of the year, although there are other ways to front-load, as we’ll discuss in reason number four. Note that front-loading has nothing to do with a front-end load, which is a fee paid up […]

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