171: Six Principles of Asset Location

White Coat Investor Podcast

Dr. Jim Dahle of the White Coat Investor

Medicine, Health & Fitness, Business, Investing

4.9 • 2.3K Ratings

🗓️ 13 August 2020

⏱️ 52 minutes

🔗️ Recording | iTunes | RSS

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Summary

Asset location is something that is completely missed by a lot of otherwise pretty financially sophisticated people. So I do a deep dive into this topic in today's episode before answering listener questions. Asset location is basically that process of dividing up your investments into your various accounts. Each of them have different issues and are taxed in a different way. This has some bearing on how your investments perform and which investments should be going into which of these various types of accounts. Unfortunately it is a rather complicated discussion. There are some rules of thumb, but very few absolutes. However if you get this right, it can be worth a million dollars or more. So it is worth looking at, but perhaps not obsessing over. We go over six principles of asset location that you should be aware of in this episode as well as some basic tips that you should follow if you are trying to invest tax efficiently.

Listener questions that we discuss today include the new charitable deduction that came into being with the cares act, paying your spouse for working in your practice, SIPC insurance, how much is too much in assets, UGMA accounts, health insurance premiums, the positives and negatives of having your practice own your life insurance policy, tapping your retirement accounts to invest in real estate, and more.

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Transcript

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0:00.0	This is the White Code Investor Podcast, where we help those who wear the White Code get a fair shake on Wall Street.
0:06.0	We've been helping doctors and other high-income professionals stop doing dumb things with their money since 2011.
0:12.0	Here is your host, Dr. Jim Dolly.
0:18.0	This is White Code Investor Podcast number 171, Asset Location.
0:22.0	Do you ever consider it a different way of practicing medicine?
0:25.0	Whether you are burned out, need to change your pace or are looking to supplement your income?
0:28.0	Low-com tenants might be the solution for you.
0:30.0	Not sure where to start, Low-comStory.com is a place where you can get real unbiased answers to your questions.
0:36.0	They answer basic questions like what is Low-com tenants?
0:38.0	To more complex questions about pay ranges, taxes, various specialties and how Low-com tenants works for PAs and NPs,
0:45.0	go to whitecodeinvestor.com slash Low-comStory and get the answers today.
0:50.0	Thanks for what you do. It's not easy work. You do out there, especially those of you on the front lines of this pandemic.
0:56.0	There's a lot of liability involved. There is a lot of stress. There's some late nights.
1:01.0	And there's some demanding patients out there. And it's not easy.
1:04.0	Some of you are on your way to work and you're going to face this, whereas you get in there.
1:07.0	Some of you are on your way home and you're just trying to wind down a little bit from what you faced.
1:12.0	If no one said thanks to you today, let me be the first.
1:14.0	Thank you for what you do.
1:16.0	Our quote of the day today comes from Charlie Ellis, who said,
1:20.0	As in other professions such as law, medicine, architecture and management consulting,
1:24.0	there's a continuing struggle between the values of the profession and the economics of the business.
1:28.0	Investment management differs from many other professions in one most unfortunate way.
	...

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