Episode Overview

White Coat Investor Podcast – Milestones to Millionaire #252
Title: Psych Resident Maxes Out Spousal and Personal IRAs and Finance 101: Boosting Your Income
Date: December 8, 2025
Host: Dr. Jim Dahle
Guest: Matthew, Psychiatry Resident (PGY4)

This episode centers on Matthew, a psychiatry resident who has managed to max out both his own and his spouse’s Roth IRAs while supporting a family of four on a resident income. The conversation unpacks his step-by-step financial journey, practical strategies for boosting income as a trainee, and the importance of financial literacy and intentionality early in medical careers. The latter portion of the episode features Dr. Dahle’s Finance 101: actionable advice on how boosting one’s income can accelerate all other financial goals.

Key Discussion Points and Insights

1. Matthew’s Background and Milestone Achievement (03:05–04:26)

• Background:
  • PGY4 psychiatry resident in the Midwest.
  • Married with two kids; spouse is a stay-at-home parent.
  • Sole earner supporting a family of four on resident income.
• Milestone:
  • Maxed out both his Roth IRA and his spouse’s Roth IRA for the first time in 2024 and on track for 2025.
  • “That is not a small percentage of a resident income. I mean, this represents something like a 25% savings rate or something, right?” – Dr. Jim Dahle (04:04)

2. The Path to Financial Literacy (04:26–05:32)

• Early Attitude Toward Money:
  • Grew up in a middle-class, financially stable but not financially literate family.
  • Became interested in personal finance after exposure to the White Coat Investor community in medical school.
• First Steps:
  • Opened a Roth IRA as a PGY1 to begin his investing journey.
  • “I just decided to open a Roth IRA and see what I can put towards it and start my financial journey.” – Matthew (05:32)

3. Income Growth Through Moonlighting (06:25–08:22)

• Income Evolution:
  • Year 1: $30,000
  • Year 2: $65,000
  • Most recent year: $152,000 (via lucrative moonlighting in psychiatry)
• Moonlighting Details:
  • Works with a local healthcare system, rounding on inpatient psych units, typically weekends and some overnights.
  • “Psychiatry… there’s a lot of opportunities… to moonlight in inpatient psychiatry facilities and otherwise.” – Matthew (07:21)
• Community Impact:
  • Both helps the community by filling a vital need and advances personal financial goals.

4. Savings Rate and Balanced Lifestyle (08:22–10:45)

• Savings Rates:
  • Progressed from 26% in early residency to 45% of income currently.
  • “My savings rate last year was about 35% of that income… for this fiscal year, my savings rate has been about 45%.” – Matthew (08:36)
• Lifestyle & Balance:
  • Despite high savings, family enjoys vacations and spends intentionally.
  • Money conversations focus on priorities, with Matthew’s spouse supportive of “paying ourselves first” while also allocating funds for family enjoyment.

5. Money Conversations with Spouse (09:30–10:45)

• Division of Labor:
  • Spouse happy to delegate financial management.
  • Discussions focus on intentional allocation: saving first, fun later.
• White Coat Investor Tools:
  • Used WCI’s “resident waterfall” as a guide for financial priorities.

6. Long-Term Goals and Security Focus (11:28–12:09)

• Motivation:
  • Financial stability and flexibility are top priorities.
• Goal Timeline:
  • “I’m hoping to be financially independent probably hopefully by age 50, 55, something like that.” – Matthew (12:09)
• Host’s Optimism:
  • Dr. Dahle predicts Matthew will reach these goals sooner due to high savings rate.

7. Protection: Insurance and Loan Strategy (12:57–15:30)

• Disability & Life Insurance:
  • Bought own-occupation disability insurance in first residency month; term life insurance as well.
  • Plans to upgrade as income increases.
  • “Disability insurance, I got that first month in residency.” – Matthew (12:57)
• Student Loans:
  • ~$220,000 in federal loans at ~5.6%.
  • Flexible approach: will consider PSLF, employer repayment options, or aggressive paydown based on first job offer.

8. Advice for Medical Students (MS4s) (15:30–17:42)

• Financial Education:
  • “Educate yourself… It was certainly a lot easier to educate myself about financial literacy than it was going through medical school.” – Matthew (16:00)
  • Recommends WCI book, blog, and podcast.
• Geographic Arbitrage:
  • Prioritized residency programs with a lower cost of living and moonlighting opportunities.
• Becoming the ‘Finance Guy’:
  • Now the go-to for money advice among peers.

9. Host’s Reflections – Boosting Your Income (17:52–22:45)

• Core Message:
  • “Most people dramatically overestimate the difficulty of doubling their income.” – Dr. Jim Dahle (18:27)
• Practical Strategies:
  • Consider moonlighting or side gigs (“even if you only make $10,000, $20,000, $30,000 a year more…how much faster do you become a multimillionaire?”).
  • Don’t be afraid to change jobs for higher pay.
  • Ask for a raise and periodically assess your worth on the job market.
  • Consider entrepreneurial ventures or online opportunities.
• Mindset:
  • “Pay attention to your income. Care about what your income is. Take simple steps to increase your income when you can, and… it helps in reaching all of your other financial goals.” – Dr. Jim Dahle (22:30)

Notable Quotes & Memorable Moments

• On Maxing Out IRAs as a Resident:
  “That is not a small percentage of a resident income. I mean, this represents something like a 25% savings rate or something, right?”
  — Dr. Jim Dahle (04:04)

• First Steps Into Finance:
  “I just decided to open a Roth IRA and see what I can put towards it and start my financial journey.”
  — Matthew (05:32)

• Savings Discipline:
  “My savings rate for the first couple of years was about 26% of my income… for this fiscal year, my savings rate has been about 45%.”
  — Matthew (08:36)

• On Family Conversations About Money:
  “She was totally on board with, you know, I said, I would like to be intentional about paying ourselves first…once we cover all of those things, then whatever we have left over we spend on fun stuff.”
  — Matthew (09:30)

• On Income Doubling:
  “Most people dramatically overestimate the difficulty of doubling their income.”
  — Dr. Jim Dahle (18:27)

• Medical Student Advice:
  “Educate yourself…It was certainly a lot easier to educate myself about financial literacy than it was going through medical school.”
  — Matthew (16:00)

• Intentionality in Residency Location & Job Selection:
  “Geographic arbitrage was something I really considered when I chose a residency. And then I also ranked programs that would allow me to moonlight.”
  — Matthew (16:38)

Timestamps for Key Segments

| Timestamp | Topic | |-----------|-------| | 03:05–04:26 | Matthew’s current life & Roth IRA milestone | | 04:26–05:32 | Financial literacy journey in med school & residency | | 05:32–06:25 | Opening first Roth IRA, early contributions | | 06:25–08:22 | Income evolution and moonlighting in psychiatry | | 08:22–09:22 | Savings rates and intentional use of extra income | | 09:30–10:45 | Conversations with spouse, use of WCI tools | | 11:28–12:09 | Motivation, goals for financial independence | | 12:57–13:55 | Disability and life insurance planning | | 14:02–15:30 | Student loan management plans | | 15:30–17:42 | Financial advice for medical students | | 17:52–22:45 | Dr. Dahle on boosting your income and practical strategies |

Takeaways and Tone

• The episode is encouraging, practical, and action-oriented—audible optimism pervades Dr. Dahle’s guidance and Matthew’s story.
• Emphasis on starting early, educating oneself, and being intentional with both earning and spending.
• Open sharing of details (exact savings rates, moonlighting structure, family communication) makes this episode actionable for listeners at any career stage.