Dr. James Dahle, founder of The White Coat Investor, talks about getting his start as a doctor and a blogger, setting up inheritance funds for his children, thinking through his investing strategies, and the motivation that keeps him working on the White Coat Investor.
Dr. Dahle describes his childhood in Alaska, and his early financial influences.
Why did Dahle’s father encourage him to go to medical school?
Dr. Dahle finished his undergraduate degree with only $5,000 student debt, and joined the military to cover the cost of his medical degree in exchange for 4 years of military service.
Choosing a college based on buildings and trees may not be as important as that value you’ll get compared to the price you’re paying.
Dr. Dahle has decided to give his children their “inheritance” in their early adult life.
College fund in a 529
“Twenties Fund” in a UTMA account
Best possible tax deduction you can get is to hire your children to work in your business, as you don’t have to pay any payroll taxes and it is a deduction for the business.
Did Dr. Dahle always have a frugal mindset?
Dr. Dahle’s frustrating experience with real estate and life insurance professionals ultimately motivated him to learn more about financial management.
What does Dr. Dahle think of mutual funds, and the different types of them?
Highlights of establishing a personal investing policy statement:
Set your goals
Decide on your asset allocation
Select your investment
How does location impact a doctor’s potential income?
The White Coat Investor (WCI) includes detailed information about the Backdoor Roth IRA and has been instrumental in marketing this investment tool.
During the early years of the WCI website, what kept Dr. Dahle motivated to keep producing content despite low returns?
Dr. Dahle’s wife is officially a 50% owner of the WCI
Opens up a new 401k
Gives her access to social security, although now the business has to pay into that.
Does Dr. Dahle use an accountant at this point?
As the WCI has grown, Dr. Dahle has outsourced a number of responsibilities.
Why did Dr. Dahle turn down an offer to purchase his business?
Brad and Jonathan get an update about the “Playing with FIRE” documentary, they recap FinCon 2018, and review feedback from the community about Monday’s episode with the Military Dollar.
Brad and Jonathan just returned from FinCon in Orlando, Fl.
The meet up during FinCon was a huge success.
ChooseFI won the “Best Personal Finance/Retire Early Blog or Podcast” at the conference.
Potentially as much as 20% of ChooseFI’s community are service members.
Avoiding a deprivation mindset and instead focusing on how great life will be when you open up your options through Fi.
Email from David: Military Dollar did an excellent job explaining the complexities of military benefits in an accessible way.
Feedback from Rick: Excited about the resources that are currently available to members of the military, as they are new compared to what resources were available previously.
The Blended Retirement option is dramatically improving the retirement benefits for the huge percentage of service members who don’t make it to full military retirement.
Army Doc points out an extra advantage of using the Post 9/11 GI Bill for dependents: applying and being admitted to a school ‘early decision’ is a binding acceptance which can cause some people to worry about finances, particularly for private universities.
The GI Bill, combined with solid advanced research about each universities’ participation in the Yellow Ribbon Program, can give your child the leg-up to getting into a university.
Voicemail from Chris explaining the difference between being enlisted reserve v. officer.
How have healthcare benefits have allowed Chris to pursue a small business and save money on health expenses?
Travel through the marines has opened Chris’ worldview and helped him building international relationships.
Stephen, talks about potential benefits of the Servicemen Civil Relief Act, which can provide some assistance with credit card, phone services, etc.
The window to opt into the blended retirement system closes in December.
Update from Scott, the creator of documentary “Playing with FIRE”
How has the documentary project impacted Scott’s life?
What impact has the crew had on Scott, and how has FI impacted the crew?
What’s so compelling about the interviews from the documentary?
What has been challenging so far?
Call to Action from Brad & Jonathan: help get the documentary distributed and support the message.
The author of the Military Dollar joins Brad and Jonathan to discuss the various ways that service members can optimize their finances and choose financial independence, including retirement plans, financial planning, health care benefits and the GI Bill.
Working in the military can set someone up to retire after 20 years with a pension and the ability to pursue whatever interests them.
Why do many young members of the military actually have financial problems?
Has Military Dollar ever seen any specific education for new servicemen?
How could a young person change his/her mindset to make more frugal choices and pursue FI?
Why did Military Dollar decide to pursue financial independence?
How did she get started?
What was MD’s savings rate early on?
How has MD set herself up to potentially retire by 41?
What was the moment that changed MD’s mindset and approach toward finances?
How do most military members approach debt?
What does the optimized path to FI look like in 2018.
What’s the difference between the old Legacy Retirement and new Blended Retirement System?
What advantages does the Blended Retirement System have for people who don’t stay in the military for 20 years or more?
What is the biggest difference between the enlisted and the officer’s route to FI?
How can people plan for and understand relatively predictable promotions and pay raises?
If someone starts young and doesn’t increase their lifestyle spending, getting to a 50% savings rate is very possible.
Within the military retirement system, what investment options are available?
Active duty health care = free for you and your family.
How does the GI Bill work, and how does that help with college expenses?
The GI Bill can be passed onto family members, but does include a service commitment.
If the GI Bill is used by a service member’s children, or after separating from the military, there is a housing allowance available.
GI Bill will cover all tuition and fees as an in-state student for public universities.
GI Bill will cover approximately $22k for private universities.
What is the Yellow Ribbon program, and how does it help cover the difference?
What is the minimum time of service to qualify for the GI Bill?
What’s next for the MD whenever she retires from the military?
How does MD balance her commitment to the military with her interest in serving her community?
Brad, Jonathan and Joe Saul-Sehy, from Stacking Benjamins, talk about what is rewarding to your soul, give feedback to a ChooseFI community member who’s considering selling his business, and recap Harry, the Ride Share Guy’s strategies for becoming the center of a niche.
Hurricane Florence’s path didn’t go near Brad and Jonathan, but there were tornadoes.
FU money is better than FI money.
Meet up in Florida during the week of FinCon 2018.
How did Harry (from Monday’s episode) become the go-to guy for ride-share drivers?
What strategies would help someone become the go-to person in a particular niche?
How can you solve a problem that you, and other people, have?
Find people who like and trust you.
How is retail changing in 2018?
How did Harry pursue unusual opportunities to make extra money?
Could the “destination filter” as an Uber or Lyft driver and the potential to deduct you commute drop someone into a lower tax bracket?
How did Joe from Stacking Benjamins become a financial advisor?
What did the phrase “other mountains to climb” mean to Joe and how did it impact his career?
What did Joe value about going back to school to be a teacher, but not actually becoming a teacher?
What does it mean for something to be “rewarding for your soul”?
How did Joe need to adjust his business in order to sell it?
Where does financial independence stand within the personal finance world?
Is financial independence about playing defense or offense?
Voicemail from Jon, looking for advice about whether he should sell his business to become FI, or continue working with a few side hustles.
Could Jon restructure his business to reduce stress and create a more positive working environment?
What’s wrong with a life well worked?
Is there value in purchasing a business that is inextricably tied to a single person?
Coming up soon, Stacking Benjamins is doing live shows in Orlando, Kansas City and Ferndale, Mich.
Harry Campbell, The Rideshare Guy, talks about what it takes to be a successful Lyft and Uber driver, the strategies he used to start his blog, and how he transitioned from aerospace engineering to full-time blogging.
What you will hear on today's show:
How did Harry find out about financial independence and choose to pursue it?
What entrepreneurial ventures did Harry investigate before he started to really strategize?
How did he move from being an aerospace engineer with Boeing to running a blog about ride sharing?
Did Harry make his college choice because he was intending to study science?
What did Harry’s personal finances look like as he was transitioning from college to working professionally?
How did Harry’s dad become a semi-retired bassoon repair man?
Did Harry do anything specific to make himself stand out during the scholarship application process?
How did Harry’s co-workers inspire him to leave a really comfortable, lucrative job?
What is the pivot from being an engineer to getting interested in ridesharing?
Will Uber and Lyft make you rich?
What impacts a person’s ability to make money through ridesharing businesses?
Bigger cities = higher demand
Willingness to drive later hours and weekends = more demand and higher pricing
Drivers cover their own expenses (gas, depreciation, etc)
Most drivers are making $10-$15 an hour, a bit more in larger cities.
Better drivers make better money.
How would someone bump up their rates?
Find times of high demand
Be a savvy driver. Not every passenger or every route is good for business
What is the upper end of what’s possible?
Driving for Uber is super flexible, and can be cashed into your bank account within 20 minutes.
What is the Destination Filter and how does it help someone optimize their time to be an occasional rideshare driver?
How did Harry get started, before he had an followers or blog posts?
What strategies did Harry use to establish relationships with reporters, media and large-audience new outlets?
When did Harry make the big transition from working for Boeing to managing his website full time, and how?
Best cities for driving: San Francisco, Los Angeles, Chicago, San Diego, New York, Austin, Dallas.