Net Worth Transparency

[The White Coat Investor]

EJ at Dads, Dollars, and Debts wrote:

Woah, what a long thread PoF started. Nice work sir.

 

Net worth and writing should depend on what you are writing. You can be intelligent and make some dumb mistakes that lead to poor net worth. Still if the number is increasing monthly and there is a defined plan, then I suspect the writer may have some things to add to the discussion. Not every one was smart enough to live like a resident or ignore the Joneses, but others just live in moderation and slowly increase their savings, net worth, and financial comfort.

 

Few have as much content as WCI but that is partially due to his interests and years at it. I wonder what WCI’s approximate net worth was when he started this site. If I recall from a prior post, he did state when he hit the $1 Mil mark and it has obviously grown exponentially over the last few years. I started reading this site in 2014 (I think) and it has started me down the journey I am on today. I then discovered Financial Samurai and finally Mr. Money Mustache. Those were my 3 motivations to get things on track. Now there are many more to choose from including PoF. It will great to see where this space goes in the next few years.

 

 

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It's detailed quite carefully in the book. We crossed the seven figure mark not long after starting the site. Basically, we were millionaires purely off clinical income.

[adventure]

The White Coat Investor wrote:

Complete_newbie wrote:

Great post WCI. I think more interesting is how this enterprise is at least 30-50% of your NW.

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You call it interesting. I call it scary. Can you imagine something less liquid?

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I'd like to see a post/guest post on this - this being the business owning / entrepreneurial side of your business - and other providers who have/start/run businesses. Running (much less starting) is significantly different than being a provider, and another step removed from just being financially literate with regards to investing and retirement. For example, the risk profiles are fairly different.

[Complete_newbie]

EJ at Dads, Dollars, and Debts wrote:

Woah, what a long thread PoF started. Nice work sir.

 

Net worth and writing should depend on what you are writing. You can be intelligent and make some dumb mistakes that lead to poor net worth. Still if the number is increasing monthly and there is a defined plan, then I suspect the writer may have some things to add to the discussion. Not every one was smart enough to live like a resident or ignore the Joneses, but others just live in moderation and slowly increase their savings, net worth, and financial comfort.

 

Few have as much content as WCI but that is partially due to his interests and years at it. I wonder what WCI’s approximate net worth was when he started this site. If I recall from a prior post, he did state when he hit the $1 Mil mark and it has obviously grown exponentially over the last few years. I started reading this site in 2014 (I think) and it has started me down the journey I am on today. I then discovered Financial Samurai and finally Mr. Money Mustache. Those were my 3 motivations to get things on track. Now there are many more to choose from including PoF. It will great to see where this space goes in the next few years.

 

 

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Prediction: Consolidation.

[EJ at Dads Dollars and Debts]

Woah, what a long thread PoF started. Nice work sir.

 

Net worth and writing should depend on what you are writing. You can be intelligent and make some dumb mistakes that lead to poor net worth. Still if the number is increasing monthly and there is a defined plan, then I suspect the writer may have some things to add to the discussion. Not every one was smart enough to live like a resident or ignore the Joneses, but others just live in moderation and slowly increase their savings, net worth, and financial comfort.

 

Few have as much content as WCI but that is partially due to his interests and years at it. I wonder what WCI's approximate net worth was when he started this site. If I recall from a prior post, he did state when he hit the $1 Mil mark and it has obviously grown exponentially over the last few years. I started reading this site in 2014 (I think) and it has started me down the journey I am on today. I then discovered Financial Samurai and finally Mr. Money Mustache. Those were my 3 motivations to get things on track. Now there are many more to choose from including PoF. It will great to see where this space goes in the next few years.

 

 

[RocDoc]

TheAbacus,

Your big smiley face made me smile! I'm still laughing from reading your apology to PoF. I was settling in getting some reading done and the huge smile face jolted me awake!

[VagabondMD]

TheAbacus wrote:

Cannot explain the gigantic smiley from statement I quoted from PoF, but I apologize.

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You should. There's no excuse for that. We are doctors. None of us should be that happy.

[Zaphod]

You normally just sell one, and buy another right then and there. Now, dont go selling or buying again with that same fund for at least 4 days, but otherwise its totally fine.

The point of TLH is that for many products, especially indices, they have the same beta/correlation and you are able to harvest a "loss" all the while not really taking a true loss since you are still in the market in an instrument that broadly performs like the one you sold. Nowadays with so many etfs available its very simple.

I even use a form of this in some of my tax deferred accounts to take advantage of this beta play and mean reversion after down portions of the market, but thats a totally different animal.

[PhysicianOnFIRE]

TheAbacus wrote:

Teach me, master! This would be a great walkthrough (with screenshots if possible) to show how TLH can be done.

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I actually took screenshots in November, and had them loaded up in Photoshop Elements, but not saved. When I returned to the hotel room (I was at a meeting in Maui), the computer had rebooted itself, and the screenshots could not be recovered. The Brexit post talks a bit about TLH, but without screenshots.

I have no doubt another opportunity will arise this year. I normally like to have at least $1,000 loss to take before engaging in TLH.

The mechanics will depend on the brokerage. With Vanguard, I simply exchange from one mutual fund to another. I don't have a settlement fund. If you're dealing with ETFs, I imagine it would work a bit differently, but the concepts are the same.

 

[TheAbacus]

Cannot explain the gigantic smiley from statement I quoted from PoF, but I apologize.

[TheAbacus]

PhysicianOnFIRE wrote:

Thanks, StarTrekDoc! I usually truncate monikers to acronyms when I respond, but in your case, that would be unwise.  

 

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My comment may seem out of place in this otherwise cerebral discussion, but what the heck...

BWAHAHAHA!!

PhysicianOnFIRE wrote:

I don’t reset after tax loss harvesting, but simply exchange into funds that I’m comfortable holding indefinitely. Last year, I was able to take losses 4 times, despite the S&P 500 returning nearly 12%. January, February, Brexit, and early November. Added up to ~ $40,000 in losses.

 

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Teach me, master! This would be a great walkthrough (with screenshots if possible) to show how TLH can be done.

One of the big questions I have when attempting TLH (haven't done it so far) is if I need to have an equivalent (or similar amount) present in my settlement fund already, or can I "buy-sell" a specific lot into a new (TLH partner) fund.

[The White Coat Investor]

StarTrekDoc wrote:

Kudos WCI.  Do what you want and when you want–including this (your) website.  My sister sold her company to a larger corporation and stayed on a year to transition administrative functions and teach the ‘look and feel’ of her company.

It would be great if your daughter takes on the spectre, but remember, like a small business, the progeny may not have the same desires and drive despite the financial benefits.

 

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My 2nd told me the other day she's interested in being a computer coder. So now I've got a "financial planner or a back surgeon", a "computer coder", and an "emergency doctor." It'll be fun to watch how that changes over the years, but who knows? Maybe this will be a family business for a long time.

[Complete_newbie]

Great comment Zaphod. Totally agree. I have seen this happen in surgery as a radiology resident. Still kudos to you and the whoever is a surgeon. Such a difficult / stressful skill set. Imho general surgeons / trauma surgeons are criminally underpaid after going through so much abuse it's unreal.

[Zaphod]

Complete_newbie wrote:

Think there are a few of us who know this but it’s the simple problem of – hey 300k l+ guaranteed of you go to work like right now vs toil away with zero cash flow and if you do well will hit milllions soon.

The way medical training is set up also discourages challenging the status quo. Heck in rounds in intern year I tried thinking out of the box only to be yelled by the attending that I am challenging him. Whatever. This attitude is loser stuff in medicine. Strength in terms of seeing patients through but complete opposite for any innovation.

Luckily I just turned 31 and looking at ecommerce seriously.

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Everyone has to deal with that stuff unfortunately. I have a word document somewhere where I just kept a tally of the "facts" and standard practices that came about because thats what the first guy did, never a study, tenuous logic, etc...Add to those kind of issues there are a not small proportion of people in academia that are sheltered and allowed high profile status even while being plainly mediocre at best and conflicts arise. There seems to be gross inability to see that many of these (at least surgical, post op, etc) best choices are simply preferences and there exists no reason or evidence to act otherwise or be so adversarial when someone says different. My program was very unnecessarily malignant, I knew it, but never saw how much until fellowship and seeing their program. I mean if you already knew it all why the heck would you need a residency, this logical inconsistency really bothered me. Im also not the best (though I learned how) at standing down to authority that is unjust.

Two months before I finished residency I "challenged" one of the touchier attendings by not choosing his preferred treatment method and he viewed this as a personal attack I guess. Tried to get me put on probation, for the crime of suggesting a different way of handling a case in the emergency room. Mind you, nothing was done, we ended up doing it his way, but I simply disagreed and didnt say I understand his way was better. I had actually done two exactly similar cases that week with two other attendings (one a specialist in field) doing it the way I suggested (wasnt some de novo crazy). The program finally started imploding shortly after I left and that person ended up leaving and having some mild scandals. The whole residency actually had come together earlier to voice concerns, but staff was always chosen and we were ignored. I wish I was a better person and wasnt so gratified it blew up in a fairly spectacular fashion, but they get what they deserve and were warned so many times.

So many similar stories or having to deal with people that wouldnt be able to eat if they didnt have the university structure supporting their uneconomical abilities, etc...Nice to have option to go it alone and crush it.

[Complete_newbie]

Think there are a few of us who know this but it's the simple problem of - hey 300k l+ guaranteed of you go to work like right now vs toil away with zero cash flow and if you do well will hit milllions soon.

The way medical training is set up also discourages challenging the status quo. Heck in rounds in intern year I tried thinking out of the box only to be yelled by the attending that I am challenging him. Whatever. This attitude is loser stuff in medicine. Strength in terms of seeing patients through but complete opposite for any innovation.

Luckily I just turned 31 and looking at ecommerce seriously.

[Zaphod]

Complete_newbie wrote:

People who make outsized profits usually know about something most don’t. Read Peter theil’s zero to one book.

WCI knows what sells and is cashing it. I will also go ahead and predict he espouses to the “4 hour work week” philosophy given response above of passive income from auto-setup blog if not updated.

To MDs this is surprising. To online entrepreneurs it’s not.

Suckiest thing about medicine, no scalable. Web is insanely scalable.

Good case study to learn from for sure. Having an “online property” is a no brainer to me.

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This was the most disappointing thing about any kind of earned income and not IP type of work. Not scalable and basically linear, except you get tired and cant even take advantage of the time available due to your other resources giving out first.

You can scale in medicine by starting a practice and hiring. That of course involves other people and managing, not knocking out something yourself with zero marginal cost/effort to copy and disseminate. Limits to that scale are way different as well. Interesting stuff you dont think about necessarily when younger.