By Dr. Jim Dahle, WCI Founder
An enterprise like WCI gets lots of criticism: some bizarre, some unfounded, some accurate, and some perhaps even deserved. I try to read the criticism for a couple of reasons. First, it tells me if we're straying too far from our mission. As a for-profit business, we need to make a profit. No margin, no mission.
But making a profit isn't our No. 1 concern. It isn't even mentioned in our vision or mission statements, which read:
If we're straying from that too much, I want to hear about it so we can course correct. Of course, there are a lot of people, even very highly educated people, who have zero understanding of how the business or financial world works. Not only do they want me to work for free, but they want the employees of WCI to do so as well. The generation of any amount of profit is too much for them.
Sometimes you can help folks like that understand, and sometimes you can't. But so far, nobody has run us out of business by successfully starting a nonprofit WCI and doing what we do as an entity other than a business. In fact, most people trying to copy us tend to charge a whole lot more for their products and services than we do and reach far fewer people. So, it really makes me chuckle when people long for the “good old days” of WCI before I “sold it out” for money. Given that ads were put up on the site the first week of our existence, the “good old days” probably lasted 72 hours or less in 2011. There very well might be “too many” ads on a given podcast or newsletter, but I can tell you right now the right number of ads is not zero. If there were no ads, there wouldn't be a WCI at all. The community has been very clear they want the majority of content to remain available free of charge—without a subscription fee or behind a paywall. The only way to provide that in any sustainable way is with advertisements.
The second reason I try to keep up with criticism is that it shows me when our messaging is not clear. This worries me a whole lot more than the anti-profiteers or the people who just disagree with my political or religious views. We try to have a diversity of faces, voices, and experience on the blog and the podcast. There are many roads to Dublin when it comes to being financially successful, and I certainly don't expect every WCI columnist or guest poster—much less the readers—to follow the exact same path I or anyone else did. But I do get concerned when people misunderstand the basic principles we espouse.
So, I thought I'd spend today disabusing people of a few misconceptions out there.
Misconception #1: WCI Is Only for People Like Me
Over the years, I have been criticized for
- Writing articles about,
- Interviewing on the podcast,
- Allowing into the Facebook group/WCI forum/subreddit/conference, and
- Hiring
all of the following people:
- DOs
- Dentists
- People with an MD from a Caribbean school
- People that did not have to borrow money to attend medical school
- People who did not match into or complete residency
- People who are not practicing medicine full time
- People who received an inheritance
- Physician assistants
- Nurse practitioners
- Chiropractors
- Veterinarians
- Naturopaths
- Pilots
- Pharmacists
Sometimes people get mad for silly stuff—like saying “APC” instead of “mid-level” or “mid-level” instead of “APC.” There was even a big to-do on Reddit and Facebook (“I can never read WCI again, it's worthless”) because I used the term “Naturopathic Medicine Physician” on a podcast instead of “Naturopath.”
Newsflash! WCI was not founded JUST for people exactly like me or exactly like you. The truth is that 95% of personal finance and investing is the same for everyone. Another 4% is the same for everyone in the upper tax brackets. Only about 1% of it is really exclusive to physicians.
We're just trying to help as many people as we can. Yes, perhaps a broader audience also helps the business be more profitable. Or maybe it doesn't. It's really hard to tell sometimes. But try to show a little bit of tolerance. WCI is about helping people with their finances—not correcting all social ills, settling every turf battle in healthcare, or dictating the one true way medicine should be practiced or money should be earned or invested. Get over yourself. It doesn't denigrate the value of your residency training to tell a chiropractor how a 401(k) works. Give me a break.
More information here:
The 2023 WCI Survey Results: Here’s How Much You Make and What You Like (and Don’t Like)
Misconception #2: WCI Says You Should Save Everything
I'm really not sure where this idea comes from, but I see it all the time. Here are some examples:
“95% of the posts are ‘Don't ever spend money! Why spend when you can save! Live like a pre-med!'”
or
“Why would I save everything for age 60 when I might die before then?”
or
“Saving up extensively for retirement is nothing but foolishness.”
I think the message is very straightforward, but apparently, it's not getting out clearly. Let me spell it out. Here is my advice on how much to save:
#1 When you first get that high income, try to keep living about like you were before for a short period. Something like 2-5 years for most doctors. This is the “live like a resident” period I talk about so often. IT HAS AN END. Guess who gets to decide when it ends, when enough is enough? That's right, YOU DO. And even before it ends, you are still allowed to spend like the average American household (something like $60,000 per year).
#2 Save 20% of your gross income for retirement. Maybe a little more if you think you'll want to retire early. Spend the rest on whatever brings you happiness. Since you paid off your student loans in that live-like-a-resident period, you should be able to have a pretty darn nice life on 80% of a physician (or other high-earner) salary.
I know there are some FIRE-obsessed folks in the WCI community saving 40%, 50%, 60%, or more of their gross income. Heck, I confess I've even done that myself in some years. But that's certainly not a requirement or even a recommendation for most people with typical financial goals. I usually tell people that they can probably even spend a bit more than a resident during that initial period and still be fine. We probably gave ourselves something like a 25% raise for our four-year live-like-a-resident period. A 50% or even 100% raise wouldn't be crazy for many. But the point is that you want your spending to grow much more slowly than your income just did.
We spend a ton of money these days (and give away even more), and we think you should too. But it's also smart to “take care of business” early in life. Find a balance. Moderation in all things. The WCI message is to spend consciously and don't spend everything; it most definitely is NOT “don't spend anything.”
More information here:
Living Like a Resident Is the Answer
Misconception #3: The Advice at WCI Has Changed
Some people say, “WCI used to be good, but the advice has changed.” First of all, all of the blogs and podcasts that came out “in the beginning” are still there. So, if only the classics are good, just read those. Second, I'm writing just as much as I ever have. On average, we still run a couple of original posts from me per week. That's as much as I ever wrote. Just because we offer you MORE doesn't mean what was originally there isn't still there. Third, my financial life and focus have certainly changed from the time I was a parent of young kids, was just finishing my live-like-a-resident period, and wasn't even a partner with my group to now where those kids are leaving the house, we're financially independent, and I'm running a 15+ person company in addition to practicing.
Naturally, I'm going to be learning about, thinking about, and writing about some different topics. After all, the first book I wrote was not about asset protection. The same old “boring” advice is still being given. In 2012 (probably long before you started reading), I published The 10 Commandments of The White Coat Investor. Here they are:
- Thou Shalt Realize Thou Hast a Second Job
- Thou Shalt Do Continuing Financial Education
- Thou Shalt Save 20% of Your Income for Retirement Beginning the Day You Leave Residency
- Thou Shalt Insure Against Catastrophe
- Thou Shalt Not Mix Insurance and Investing
- Thou Shalt Favor a Passive Investing Approach
- Thou Shalt Hire Only Competent Advisors
- Thou Shalt Minimize Expenses and Taxes
- Thou Shalt Minimize Debt and Manage Necessary Debt Well
- Thou Shalt Protect Thy Assets, Plan Thy Estate, and Stay the Course
It's pretty much the same stuff I'm telling people today. There are lots of useful rules of thumb out there. They might not be perfect (seems there's always some random exception to everything), but all of the following is still true:
- Not getting an employer match is like leaving part of your salary on the table.
- You should invest in retirement accounts before investing in a taxable account.
- You should know your state's asset protection laws.
- Diversify your portfolio.
- Make a written plan.
- Don't panic-sell in a market downturn.
- Index funds beat the majority of actively managed funds in the long run, especially after-tax.
- Financial literacy is worth learning.
- Avoid extreme portfolios.
- Don't adopt an investing plan that requires you to accurately predict the future if you cannot accurately predict the future. If you can accurately predict the future, you're in the wrong line of work.
- The more you can competently do yourself, the lower your fees will be and, thus, the higher your after-fee returns will be.
- Take on a reasonable amount of risk.
- Your savings rate matters more than your investment return, especially in the beginning.
- Don't add complexity without good reason.
- Self-insure when possible.
While one can have a legitimate argument about whether you should put small value stocks or international accounts in a tax-protected account, there isn't much you can argue about with the core message. The rest is just details. Don't mistake details or some random comment on a podcast for the core message. One of my favorite recent criticisms in this regard?
Who do you think ran Bogleheads University in 2022?
Misconception #4: WCI Is Only Good for Beginners
We get complaints that everything on WCI is too complicated. We also get complaints that everything is too simple. We're writing for people with all kinds of levels of financial expertise and wealth. Not everything is written just for you. But this idea that we never get into the weeds is bizarre. We cover lots of very advanced topics here at WCI. If you already know everything we're talking about, you're an extremely rare person. One of my partners says he doesn't read the site anymore because he has a good plan set up and now he just follows it. Nothing wrong with that. I think it's wonderful if doctors don't need us anymore. But if finance is his hobby and he wants to learn more, there is plenty available here to learn.
More information here:
What My Finances Would Look Like Without WCI
Misconception # 5: WCI Is Useless Because of This One Thing
“I can't stand WCI because he doesn't think Tesla (both the stock and the car) is going to change the world.”
Or
“I think WCI gets Bitcoin wrong, so I don't trust anything they say.”
Or
“I'm not going to buy a $1,000 course or go to a $2,000 conference so WCI isn't for me.”
Or
“I bought a house in residency and it worked out great for me so WCI is a fool.”
Or
“I don't like this one company that sponsored a WCI podcast so WCI is crap.”
I guess some people just really find it hard to take what they find useful and leave the rest. I get asked my opinion all the time on all kinds of random financial topics—like a creative options strategy, cryptoassets, muni bonds, how much to leverage a rental property, or the latest retirement withdrawal strategy or insurance product. So, I share my opinion. But my opinion on these niche topics is hardly gospel. If you think I'm wrong about the long-term returns on growth stocks or the proper length of time to own a car before selling it, don't throw the baby out with the bath water. That likewise goes for people who look at our premium products (courses and conferences) or sponsors and conclude that WCI is not for them.
We expect less than 1% of our audience to buy our premium products. Most white coat investors NEVER buy one of our premium products. That's fine. We don't need you all to buy them for it to be worth our time and effort to create them. Some people need and like online courses and conferences. I'm not one of them, and you might not be either. But they really help some people, so we'll continue to make them. If you're a typical white coat investor, you've read a lot of free blogs and newsletters. listened to some free podcasts, bought a book or two, and maybe patronized one or two of our sponsors over the years. Great! Thanks for coming by. We're glad we could help you.
In conclusion, keep the criticism coming. Like anyone, we prefer to get it in a private, constructive manner rather than being blasted on social media, but however it comes, it's helpful. So, thank you. But don't lose sight of the forest for the trees. The WCI message is timeless and valuable. Doctors and others will benefit from it now and for years to come.
What do you think? What's your favorite bizarro WCI criticism? Comment below!
I noticed you didn’t mention any of the real estate investing ads I now get daily. To me, these specifically are what make WCI less palatable than previously. I don’t mind references to good financial products, but I wouldn’t qualify these as that. Either way, you do a good job.
They are optional. You selected to get the RE newsletter. Just unselect it.
You know you can adjust your WCI email preferences so you do not receive emails from the WCI Real Estate Opportunities List, right? That list is literally for people who WANT to be marketed to. You can just get the monthly newsletter or just the monthly newsletter and the daily blog posts etc.
Some of what comes across the site drives me nuts, that article about how its reasonable to divorce your spouse for financial benefit and then live with them is one example. At the end of the day though, you guys have made my life way better. I buy the WCI original book in sets of 5 to give away to people because someone did that for me. My wife and I dont worry about money anymore because of your advice and this week we just hit $500k in net worth, something that would’ve taken us forever if I was still stock picking and buying bitcoin. WCI has had a major positive impact on my family’s life and I’m very grateful for your well communicated, trustworthy, unbiased advice. You guys were my introduction into the finance blogosphere and I still havent found anything else that’s as good. What you guys do is fantastic and you make a real impact for average joes trying to figure out how to do money well
I also weary of the real estate (RE) content. However I don’t “get” RE ads daily: me thinks you need to adjust your WCI settings some. And me? I skip the RE content when it doesn’t seem to apply to me (90% of the time), marvel at the docs etc al who seem to have made it a larger part of their life and finances than their medical professional job, figure that like me WCI didn’t know or think much about RE 10-20 years ago and that as a younger doc (Jim) and a company (WCI) giving advice to even younger folks as well as us old fogies it is an important ‘new’ subject to cover in depth since there isn’t as much content about it here yet as on other subjects. I skip the Bitcoin articles also and expect that if WCI is ever convinced it’s an important investment tool there will be a large increase in Bitcoin content. For now Bitcoin and other new finance themes are covered with what I value: WCI’s explanation and opinion on the development. Since I have already won the game I briefly muse as to whether I should add that new thing to our portfolio and prepare to convince my nearest and dearest why to avoid it or how to use it properly. And also appreciate why I don’t and won’t ever “be” or compete with WCI: what a lot of work to fully comprehend and explain these things especially with a barrage of content from those whose mission is profit by selling it to us rather than WCI’s mission to educate us about every aspect rather than just get money from us.
I just wanted to say that I am a huge fan of WCI. I have learned so much over the years from reading your daily emails and benefited immensely. Please keep doing what you’re doing – you are doing a great job! I admire your intellect, work ethic, dedication, moral values, and how you enjoy your life. Many thanks!!
Jim:
As you know many/much of extreme criticism originates from envy or other self-serving motivations. I came later to your informational cornucopia, but I’ve had my eyes opened on many topics. While I don’t agree 100% with some of the information and views, I admire your steadfastness. You are one of the rare individuals who formulated a life plan and seemingly stuck closely as possible to that plan. You and others are reaping the rewards. Keep the faith!
Criticism is a part of life and most people (including myself at times) don’t take it well. However, you did a great job of using it in a positive way (thus this article). I am very grateful for you (this site) and especially the bogleheads.org forum. You guys give away so much information that has helped me and thousands of others. I feel in today’s society, it is rare to find trustworthy people (and sites) that give away free information. Most sites are either untrustworthy or the people that run them have too many conflicts of interest. I really admire your financial knowledge (and the financial knowledge of bogleheads.org). I really, really admire how you and the bogleheads share your knowledge free to help the individual investor like me. So, thank you. Regarding the criticism, use it like you just did to make things better and always remember you have hundreds (if not thousands) of people like me that are just grateful for what you do on this site.
You have been a godsend. In 2002 when I finished residency, the only financial person I found to follow was Suze Orman (yup, I know). I felt so weird compared to my peers in wanting to pay off all my student loans as fast as possible. I also couldn’t believe I had to pay someone thousands of dollars every year to help me manage my money. Then you came along and had a blueprint for what doctors like me could do to be financially savvy and successful. I’m so grateful to you and your mission. Without your blog I never would have been comfortable doing a backdoor Roth, tax loss harvesting, and investing in I bonds and Treasuries. I have the basics down and continue to explore and learn new things and tweak my finances. But I sleep well at night (well, when not working in the ED) knowing I am 51 with a net worth of $5M thanks to you. In fact I was going to retire at 50 but since I still mostly enjoy work- knowing I can quit anytime I want- I will probably stay on another few years.
As someone that emailed you 15 years ago – you’ve completely changed my life. We’ve been comfortably financially independent for years now, and find more fulfillment in our daily jobs (as ER doctors) because we dont need the income to survive.
I also want to say that your RE content has been really valuable. A WCI article almost a decade ago about buying a house a year got me started, and then somewhere I here I learned about short terms rentals and now have a very robust portfolio that as rapidly propelled me to the financial independence we achieved
Keep up the great work!
Consistently the best financial stuff I read anywhere. Also your writing style is lol funny at times. My ONLY criticism and maybe it’s more an observation: You seem pissed off much of the time. In any event, thanks for a great learning site.
I’m rarely pissed off when I’m not on the ice or when I just discovered my kids didn’t do the chores I asked them to do three times. Maybe I need to work on my tone when typing.
Since you’re asking, the only thing I’d change is the supercilious, impatient tone that creeps in a lot.
Patience is not my strength for sure. Looking up supercilious now….
Hmmmm….That’s a bummer. I guess I’ll have to work on that too. It’s a hard line to walk writing authoritatively (which I try to do) without coming across as being supercilious too (which I try not to do.)
It seems there is a lot of hate for the WCI discussion of RE investing.
I personally like both index fund investing and RE investing. RE investing is more complex, more risky, and requires more time. However, RE investing can build wealth quite quickly when done well.
One young doc I know has invested heavily in RE and her net worth has surpassed 8 figures at age 40. Leveraged RE investing, done very wisely, is responsible for her outsize net worth.
I started investing in RE when I was a young doc. My RE portfolio is worth 8 figures and it provides a hefty 6 figure specialty physician level income from tax protected cash flow each year.
Don’t invest in RE if you don’t want the work, the risk, and complexity. Go ahead and do the index fund thing, as that works well for most docs. At the same time, don’t criticize WCI for offering information about another road to Dublin. Take what you like and leave the rest for others.
I imagine that the feedback you receive on a regular basis is comparable to patient satisfaction scores. My scores can be overall positive, but it is the one negative comment I get that I will dwell on for a month. Typically, it is a comment over things that are out of my control (a family was upset that their visit took too long – I am sorry that medicine doesn’t always fit into a 10 minute time slot and you brought a sick child into a well child visit!). On the bright side, you at least get to address these concerns in a post that will continue to drive hits to your website and thus help with your profits!
We cannot please everyone all the time. I don’t agree with you on all of your viewpoints. I also think the way we address midlevels and quackery (naturopaths) is important to the field of medicine and not trivial. Those are very difficult lines for you to traverse being both a physician and financial empire mogul (haha!) who does not want to alienate people to your website or products. But just like with patient satisfaction scores, maybe you shouldn’t try to please everyone all the time.
Ultimately, I am extremely grateful of the advice and information I have received from both your book and website. Thank you for what you do! You have made a difference in my life (and the lives of many others).
I suppose I must work with a lot of supercilious impatient people because I do not notice such a tone from WCI.
In any case, I learn from the things that he explains.
I ignore the focus on one part of investing that, IMHO, gets far more attention than it should. It used to bother me when I thought it was unexplainable “why the fascination?” but now I just accept it.
It is a commercial site, and WCi is, by a very wide margin, the most upfront about conflicts of interest of any site I have ever seen. The statement on this is a model of clarity, which is probably why none of the competition, to the extent there is any, follows his lead.
I have never received an ad for RE, or anything else.
Although smaller in scope, I consider this site, along with bogleheads, to be my only other daily read about personal finance.
I suppose if you ask for feedback, then some negatives will come along with the praise. Kudos to you for asking.
I enjoy all the content. I can pick and choose. If it doesn’t apply to me (student loan stuff mostly), I skip it.
My dream of dropping to part time work by age fifty eight came true partly due to WCI.
My net worth has tripled since I read your WCI book in 2016.
I have enjoyed being a guest columnist this past year and am proud to be associated with WCI.
I recommend the book and the blog to all young people and those looking to do well and retire.
There is no better, less expensive resource. Thank you again for helping me purchase my freedom.
Good thinking. Write a post about the junk criticism you get over and over and over again. Now you can just reference this post every time instead of re-writing the same reply every time. Good use of your time. I like it.
I appreciate the respect you show to different segments of people that are not doctors, like the naturopath provider you mentioned, and nurse practitioners and physician’s assistants.
It’s free content. I take what interests me and leave the rest and have benefited. Keep up the good work.
Primary care doctor here.
I’ve been reading here since 2016 when I finally decided to take control of our finances.
We had always been good savers, but lacked a focused investment plan. My initial goal was to ditch the robo advisor fees in my employer’s 401k.
Fast forward 7 years and we have ticked nearly every box in that initial financial plan. This stuff really works. I could wax eloquently on all the details but the one that sticks out most was the (mercifully brief) COVID bear. I remember checking our spreadsheet and typing in one of the cells at the top
NO NEED TO SELL. STAY THE COURSE
Thanks so much Jim for everything. You, and now your team, have done so much good for countless others. Your collective success is well-deserved.
Ignore the haters and carry on!
A few comments on your mis conceptions:
1. Naturopaths and chiropractors. I think as a doctor we should advocate for what is best for our patients. Much in the same way you rail against charlatan financial advisors who sell whole life, most of know of people who got bad medical advice from either a naturopath or a chiropractor. As yourself, would you let your patients or family member see one of these folks?
2. With mid-levels its a bit of a slippery slope. I do think that there is a role for them in medicine. However, lately there’s been a lot of over-reach with regard to independent practice. Often on the FB group we see NPs/PAs talk about making sums of money that are well above what a lot of doctors are making. You could understand how many readers can have sour grapes.
3. As far as the advice changing. I guess there’s only so many times you can say the basic message so I do think many of the newer posts are more esoteric which is fine. I refer my residents to the site and tell them to focus on the early posts and basic information.
4. Overall I have found the site very useful and owe most of my own financial development to it. I think there’s an underlying tone that you need to look in yourself to fix your own financial woes. I think (and I realize this isn’t the mission of WCI) it’s worth shedding a light on the external challenges and misconceptions that exist about physician personal finance. THere’s a perception that all docs are rich. However, working in a setting with peds residents, in a HCOL setting, many who come from overseas schools that perception rings hollow. Based on loan debt, starting salaries most pediatricians on the east coast are doing as well as an average suburban professional. I think it’s worth shedding light on this. i.e. the fact that as most peds care is paid for by medicaid our salaries are across the board lower than our adult colleagues. The gaps between cerebral and procedural specialities. I think you have an unique opportunity as someone who has probably heard more docs financial situations to explore these issues.
Your site has always been & continues to be an excellent resource! I want to thank you for all the help you’ve provided me for these years. I remember people thanking Jack Bogle for Vanguard/index funds/etc and “the house jack built” comments. You and your team rank just as highly in my personal financial experience. Thank you and keep doing what you’re doing!
Thank you for your kind words. Jack has certainly been an inspiration in my work.
Congratulations on being a great resource to people, and doing quite well all the way around in your work, for which you deserve some praise. Best to you, Dr. Dahle, in continuing your efforts.
Now do your people a real solid and recommend BTC, since indexing days are over. Remember, inflation and real returns are things most, even people here, aren’t very honest about.
Lots of email on this one. All positive.
# 1 I don’t think you have any need to defend yourself. This is an amazing feat that you have undertaken, and you have helped so many people. These are all good points, as always, but you have nothing to ever apologize for. Thank you for everything you do.
# 2 Keep up the good work.
# 3 I have to say….your blog, site, everything is PERFECTLY run. I don’t even care about your politics you mentioned in this email …. you and your site have done SO much for me….Your email is the ONE email that I always read cover to cover. You’re doing something right. I always read it. And your site is THE reason I’m not broke.
In fact, I’d love to learn more about how you got to this point via marketing/targeting/helping others/etc. Whatever you do/have done works on higher order thinkers who have higher incomes and are willing to stay heavily invested in your product and site.
# 4 Thank you, I enjoyed this note. I retired this year but while I was practicing, I gave a copy of your book to my new associates. One called me last night and thanked me for the book and said she was paying off her car lease and keeping the car longer than what has been typical for her. She said she wanted to be more like me. I very much appreciate the advice WCI has given me to allow me to retire pretty early without any financial concerns.
# 5 I’m very grateful for all your insight, tutorage & many thought-provoking & get-it-done subjects addressed!!! I follow quite a few websites & newsletters; yet, I read most all yours & purchase from you!
You & your staff are doing a great job!!!
# 6 I am not on social media but I definitely listen to the podcast, still purchase the courses and hope one day to come to an in person conference. It is really difficult for me to understand all of the criticism. WCI changed the way I think about finances, taught me more than anyone in my life about financial literacy and never made me feel dumb or bad about the mistakes I have made about my finances. I have now bought two of your courses have listened multiple times and always learn something new. I make my kids listen to the podcasts and now that my oldest two are in college, they will listen to the courses as well. My point is, you DO help so many people. While I know you probably don’t let the criticism get the best of you, it blows my mind that people out there can’t just take the information that helps them and move on. There is something for everyone
Thank you for all you do. Please keep doing what you are doing.