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The White Coat Investor: A Book Review I admire physicians. I am not a physician but I have been fortunate to work with several smart physicians. Physicians are naturally bright professionals as I have seen them learning technology and even programming even though that is not their core focus. On... Read more

Why Apple is still a good investment   You don't have to be a pro to understand why Apple is still a good investment; in fact, you are better off being a motley fool even if you watch CNBC. On Jan 28, 2015 Jim Cramer called it an investment of lifetime; a stock that will rise again this... Read more

Diversify...Really? It's OK to have your eggs in one basket as long as you control what happens to that basket. -- Elon Musk It sounds oxymoronic but the fad in the personal finance industry is to promote diversification. Ironically, most of us are really bad at diversification... Read more

Wela: An Interview with Wes Moss With the advent of the Internet, our lives have changed forever. Amazon is redefining how we buy anything including pencils to power tools. Whether you like it or not, wealth management has also begun its inroads on the Internet. The brilliant idea that you... Read more

How to Invest in Stocks like a Pro Let's face it -- most of us, mere mortals, consider investing ourselves in a stock market akin to playing Roulette in Las Vegas! If you have similar thoughts then you are not alone! According to Henry Blodget, one time super star Internet stock expert, those... Read more

Why I still Invest in Apple Let's face it -- most of us are Apple investors. If you deny, look at top ten holdings of any mutual fund that you own. Unlike old superstar stocks of the past -- Intel, Microsoft or Dell to name a few -- there is something unique about Apple. It has brand... Read more

How to Choose a Real Estate Agent in India For India’s vast middle-class, buying a house is a dream come true. Many will save over decades to find one or two properties that are the perfect size, in the perfect location, for a good price. Considering the size of the Indian real estate market, this... Read more

3 Risky Investment Properties To Avoid Note: This is a guest article by Tali Wee of Zillow All investments carry some form of risk and real estate properties are no exception. First-time real estate investors exploring the most lucrative opportunities must complete their due diligence before... Read more

Seven Ways in which Small Businesses Are Reducing Overhead Costs As a small business owner, you want to keep overhead expenses low to see the biggest profit margin. Of course, some expenses are essential, but that does not mean they have to be high. Savvy business owners are making the most of a number of different features... Read more

lnvestment Lessons from Warren Buffett Games are won by players who focus on the playing field – not by those whose eyes are glued to the scoreboard. If you can enjoy Saturdays and Sundays without looking at stock prices, give it a try on weekdays. -- Warren Buffett While Warren Buffett... Read more

Six Things to Know Before You Start a Fashion Business The fashion industry may seem quite overwhelming to someone trying to get their name out there and open a business. Prior to laying out the plans for said business, the owner should step back and take a look at the broader picture. There are six important things... Read more

Is Tesla Still a Worthy Investment? "Is Tesla still a worthy investment?," asked a friend of mine who read my article which I wrote back in June of last year. A lot has happened since then. Tesla stock has doubled in price and Elon's presence in the media is omnipresent. This guy is one of... Read more

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The White Coat Investor: A Book Review

Category : How to invest money, Personal Finance, Retirement, Smart Investment Ideas

whitcoatinvestorI admire physicians. I am not a physician but I have been fortunate to work with several smart physicians. Physicians are naturally bright professionals as I have seen them learning technology and even programming even though that is not their core focus.

On the flip side, physicians are not financially savvy. That may sound paradoxical but because physicians spend so much time to focus on their profession, they tend to have little time to learn about basics of personal finance.

Physicians also spend years without making much while working hard on a shoe string budget. So, it is not uncommon for a physician fresh out of residency to splurge on a newfound wealth by buying a brand new BMW while still dealing with a medical school six-figure debt.

According to Medscape, over 55% of physician accumulate over $1 million in net worth by age 50. This is impressive but that means that 45% of physicians still can’t accumulate net worth of $1 million despite earning 4 times of more than average household income in the richest country in the world.

Enter Dr Dahle’s personal finance book, the white coat investor,  for the physician. This short book is filled with wisdom mainly targeted towards physicians; however, its core ideas are useful for anyone trying to achieve financial freedom.

He brilliantly articulated why it is not a good idea to buy a large home after finishing residency.

It is common for high earners to buy a house without thinking about the responsibility that comes with it. Tax savings may be an alluring factor but the book emphasize the fact that house maintenance, down payment, property taxes are often ignored while making emotional investment in purchasing a large home.

His thoughts on so-called financial gurus resonate well with me. I am not a big fan of these experts who know no better than someone who takes time to understand basics of investing and asset allocation.

An entire chapter has been focused on seeking financial help from financial advisors to avoid rip-offs.

I also liked his advice to invest in Index funds.

I was also impressed with his no-fluff style to write a book that concisely covers all the basics for a busy physician or, for that matter, any other professional to learn personal finance lessons by investing in this book.

You won’t be disappointed if you visit his blog

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