White Coat Investor Podcast #438: The Resident Episode

Date: September 25, 2025 | Host: Dr. Margaret Curtis (filling in for Dr. Jim Dahle)

Episode Overview

This episode, guest hosted by Dr. Margaret Curtis, focuses entirely on residents and recent residency graduates. The discussion covers pivotal financial decisions during residency, such as managing debt versus investing, whether to buy a home as a resident, optimizing retirement savings, and establishing foundational money habits. Notably, Dr. Curtis is joined by Dr. Patrick Arpin, a recent pediatric residency graduate, who shares his personal journey of financial planning throughout med school and residency, building up to his first attending position.

Key Discussion Points and Insights

1. Resident Financial Priorities: The Basics

• Resident Waterfall (Financial Prioritization for Residents)
  • Step 1: Disability insurance and term life insurance are crucial early, especially if others depend on your income.
    • "The reason to get them now is that it will never be cheaper than it is right now. You are the youngest you're ever going to be." (Dr. Curtis, 08:25)
  • Step 2: Build a small emergency fund (3–6 months' expenses).
  • Step 3: Refinance high-interest private loans and develop a student loan repayment strategy.
  • Step 4: Take advantage of any employer retirement plan match—this is "free money."
  • Step 5: Contribute to a Roth IRA (ideal during low income years like residency).
  • Step 6: Consider a Health Savings Account (HSA) if you have a high-deductible plan.
  • Step 7: Only then consider saving for a house down payment or other investments.

2. Saving vs. Investing vs. Paying Down Debt (05:34–09:20)

• Interest Rates Matter Most
  • High-interest debt (e.g., credit cards, >10%) should be paid off first.
  • Low-interest debt (like 2% mortgages) can be managed while still investing.
• Personal Comfort with Debt
  • Some individuals simply prefer to be debt-free for peace of mind.
  • Dr. Curtis shares a story: "For her, it was really important to know that she owned her house outright as she was trying to navigate raising two kids on her own." (Dr. Curtis, 07:41)
• Investing Early
  • "Time in the market" beats "timing the market," especially for youths and early-career professionals.
• Customization by Career Stage
  • Young physicians may benefit more from carrying low-interest debt and maximizing long-term investment exposure versus older professionals, who should aim to be debt-free approaching retirement.

3. The House Dilemma for Residents (11:25–16:00)

• Should Residents Buy a House?
  • Strong advice to rent during residency rather than purchase.
    • "Most residencies, even long surgical residencies, aren't long enough for you to be confident that you will make money on the sale of a house or even break even." (Dr. Curtis, 13:56)
    • Real risk exists for being underwater on a mortgage if needing to move unexpectedly.
  • Physician loans tempt residents with zero down and no PMI, but they are risky:
    • "Those guardrails are in place for a reason." (Dr. Curtis, 14:45)
    • Adjustable-rate mortgages in these loans pose particular risk.
    • Tendency to 'overbuy' with these products.
  • Best approach: Rent through residency, save for a sizeable down payment, and buy as an attending after a few years of living below your means.
    • "High cost of living as a resident— I just don't know how you guys do it." (Dr. Curtis, 14:15)

4. Roth IRA vs. Employer Retirement Plan in Residency (18:43–20:20)

• Roth IRA during Residency
  • Residents are at the lowest earning bracket of their careers — ideal for Roth contributions.
  • "If you've been putting money into a 403 retirement plan without a match, I would say skip the 403 and use the Roth IRA instead." (Dr. Curtis, 18:50)
  • If employer offers a match in 403(b)/401(k), contribute just enough for the match, then prioritize Roth IRA.
• Investment Strategy
  • New investors should open a Roth IRA and use a broad index fund, not individual stocks.
    • "Put it into a stock market total market index fund and just leave it alone." (Dr. Curtis, 20:15)

Special Feature: Interview with Dr. Patrick Arpin (16:34–27:12)

Introduction & Background

• Dr. Patrick Arpin: Recent pediatric residency graduate, new attending in Washington State.
• Early financial literacy—started a Roth IRA in high school with his summer job wages.

Key Takeaways from Dr. Arpin

• Early Financial Habits
  • Opened a Roth IRA as a teenager; continued contributions through med school and residency.
  • "From an early age was thinking about how do I set myself up for success and then found White Coat Investor and kind of things have evolved since then." (Dr. Arpin, 17:25)
  • Accumulated nearly $70,000 in his Roth IRA by the start of his attending career.
    • "Could you mind if I ask how much is in your Roth now?"
    • "Close to 70ish, I think." (Dr. Arpin, 18:07)
• Investment Philosophy
  • Initially tried individual stock trading, then shifted to a diversified ETF-based approach:
    • "I've since kind of consolidated everything into more just ETFs...I have a very quote boring portfolio of ETFs...just letting it do its thing." (Dr. Arpin, 18:11)
• Career Decisions
  • Chose community pediatric hospital medicine over fellowship owing to market realities and personal fit.
  • Used professional networks and mentoring for support in his decision-making.
• Smart Financial Moves During Residency
  • Maximized employer match on 403(b).
  • Contributed to Roth IRA each year, sometimes with difficulty, but benefited from dual-income household without dependents.
  • Rolled over old 401(k)s/403(b)s into current plans, performed Roth conversion, and is now set up for backdoor Roth contributions once earning exceeds direct Roth limits.
    • "I did a Roth conversion, which our plan allowed, which was nice. So now all of my retirement is in Roth..." (Dr. Arpin, 25:15)
  • Saved specifically for end-of-residency expenses such as board exam fees and relocation costs.
    • "If you can kind of save a little bit of money from every paycheck...this is going to be my end of residency expenses..." (Dr. Arpin, 25:17)
  • Advocates for “paying yourself first” and setting disciplined saving/investing habits.

Notable Quotes from Dr. Arpin

• "I took some time off between college. So I had old 401ks or 403(b)s that I kind of consolidated during residency into my residency 403(b)." (Dr. Arpin, 22:57)
• "Don’t compare yourself to other people necessarily. If you’re trying to stick to the basics and really work and be disciplined, that’s where you’re going to start seeing those dividends pay off." (Dr. Arpin, 23:43)

Notable Quotes & Memorable Moments

• On House Buying in Residency:
  • "You’ll find people who say ‘we bought a house as a resident and we made a killing,’ but those folks were really, really lucky." (Dr. Curtis, 13:47)
• On Starting a Roth IRA in Residency:
  • "The beauty of Roth is you pay tax on it before you put it into savings, and then it grows tax-free, and when you take it out, it’s still tax-free." (Dr. Curtis, 18:43)
• Advice for Residents:
  • "Your priority really is just becoming the best doctor you can be. But...carve out a little time to improve your career and financial literacy." (Dr. Curtis, 09:10)
  • "Boring is really good for portfolios. It shouldn’t be exciting." (Dr. Curtis, 18:38)
• On End-of-Residency Expenses:
  • "Boards...were about $3,000 that I had to pay in March or April...having that money upfront to be able to pay for that..." (Dr. Arpin, 25:17)

Key Timestamps

| Timestamp | Segment Description | |------------|-----------------------------------------------------------------------------| | 00:16–05:34 | Resident intro, purpose of episode, general financial principles | | 05:34–09:20 | Savings vs. investing vs. debt, personalized advice for residents | | 09:20–13:47 | Resident financial “waterfall” and importance of insurance, emergency fund | | 13:47–16:00 | Detailed case against buying a home as a resident, risks with physician loans| | 18:43–20:20 | Roth IRA vs. employer accounts, how to invest as a resident | | 16:34–27:12 | Interview with Dr. Patrick Arpin: journey, financial strategies, advice | | 25:15–27:12 | Practical tips for end-of-residency costs, habits, dual-income dynamics |

Overall Tone & Style

The tone is practical, encouraging, and gently humorous—especially as Dr. Curtis empathizes with the unique challenges of residency and gently ribs attendees for hoping Dr. Dahle would be the host. Both Dr. Curtis and Dr. Arpin adopt a warm, approachable, but well-informed style, prioritizing foundational wisdom, discipline, and realistic expectations over get-rich-quick advice.

Takeaway for Medical Trainees

• Prioritize insurance, emergency funds, and student loan planning.
• Delay home ownership until attending years and build your down payment while renting.
• Maximize Roth IRA contributions during the low-income residency period.
• Start good habits early – compound interest and discipline pay off.
• Stay humble and seek mentorship and community support.
• Being boring with investments is a virtue, not a vice.

For more on resident financial guidance, visit whitecoatinvestor.com.