WCI #327: Send Your Kids to College

This is the White Coat Investor Podcast where we help those who wear the white coat get a fair shake on Wall Street. We've been helping doctors and other high income professionals stop doing dumb things with their money since 2011.

This is White Coat Investor podcast number 327. Send your kid to college. Do you ever find yourself wishing there was somewhere to go to ask your finance, insurance or investing questions? The White Coat Investor community is a great place to turn. We have a thriving community across all of our social, Facebook, Twitter, Instagram, Reddit and our WCI forum. We have been discussing solutions to your money problems since 2011. Join the Conversation with thousands of other White Coat investors. Follow WCI on your favorite social media platform for financial resources, tips and strategies. Just head to your platform of choice and search for the White Coat Investor. You can do this and the White Coat Investor can help. All right, well, it's the middle of summer. Actually, we're getting toward the end of summer. By the time you listen to this, it's the middle of summer. While I'm recording it, while you're listening to it, I'm probably off climbing in the Tetons with my son. It's his turn to go climb the grand. So, you know, summer's tough. Kids are out of school. You're running around trying to spend time with them, knowing you only have 18 summers, but you've also got your practice or whatever it is that you do pulling you away from family time and other interests you might have. So when it does that, recognize that it is a wonderful profession and it is a wonderful opportunity to help others. And if nobody thanked you for it, let me do it. Thank you for what you do. Hey, we want you to know about this email series we have. We call it the Financial Basics. And this is a little different from boot camp, right? You may have been if you signed up for the newsletter. If you've never signed up for the newsletter, go sign up for the newsletter. Right. Whitecoatinvestor.com Newsletter Sign up for the newsletter. When you do that, you get what we call Financial bootcamp, which is 12 weekly emails that helps you to get your finances up to speed to catch up to all the other white Coat investors. This is all totally free. You can unsubscribe anytime you want. They're just emails, okay? It's not anybody trying to knock on your door and bring you a fruitcake. It's just emails. But we have this other thing which we think is really cool, which has been put together by a bunch of our staff Members using a lot of my writing and the writing of others. We call it WCI 101 Financial Basics, and it lasts longer than the 12 weeks. Basically every four days, you get a short email that helps you understand the basics of financing. We get lots of feedback on our surveys that says, hey, you know, this is all over my head. I don't get it. Can you dumb it down for me? This is the dumbed down version. Okay. If there's, like, we're talking about stuff on the podcast and you have no idea what we're talking about, you need to sign up for this email series. It's gonna take you 30 seconds or a minute or two minutes to read each of these. Whatever. And after a few months of reading these, you're gonna get finance. It's not that complicated. It's way easier than whatever you do day to day. All right, so sign up for these whitecoatinvestor.com basics. That's it. Okay. Yes, you can unsubscribe anytime. Yes, it's totally free. We do this for you because we love you, we think you're awesome, and we're here to serve you. Yes, we have a business. Yes, we're trying to make money. Yes, we have to make payroll. But you know what? I'm not sitting in this chair because I need to make payroll. I'm sitting in this chair because I care about you. I care about your finances. I care about your financial freedom. I care about what you can do better in your life when your financial ducks are in a row. And you can be a better doctor, you can be a better parent, you can be a better partner. So let's get into it. Let's talk about your questions today. This is the White Coat Investor Podcast, is driven by you, what you guys want to talk about. If we're not talking about the subjects you want to cover, you need to be leaving questions on the speak pipe whitecoatinvestor.com speakpipe, or emailing them in to editorwhitecoatinvestor.com and we talk about what you want to talk about. So apparently, what people want to talk about today is saving for college. So let's get Brian on the line and take this first question.

Hi, Jim. This is Brian from the Northeast. My question is about 529 accounts. We currently have one child with a second on the way. We have a 529 account for child number one. My question is, should we create a second 529 account for child number two, or would it be more efficient? To just have the 1529 account and then change beneficiaries to child number two when it comes time to pay for her college. It seems like just having one account will minimize the risk of unused funds and therefore be more efficient. Any downside to just having the one account and changing beneficiaries? For what it's worth, we do plan on funding both of our kids college expenses, but it's also not mandatory that we have 100% of expenses in the 539 accounts as we'd be perfectly fine cash flowing college expenses at the time. I look forward to your answer. Thanks for all you do.

All right, great question, Brian. This seems like you're trying to solve a problem that doesn't exist in my mind. I've got 34529 accounts. 35 now I've got one for each of my kids. I got one for each of my nieces and nephews. Right now. I've got 1, 2, 3, 4. Four of them withdrawing from it right now. And I'm funding them all each year. Something's going into them. Some are getting their Uncle Match and others are withdrawing money and spending it on college. It's not that big a deal to have more than one account. Trust me. I got 35 of them. No big deal. Open a second account for your other kid. I mean, what are you worried about? That you'll have two accounts on the page when you log in? I mean, I don't get what you're so concerned about. It would be more of a pain to change the beneficiary than to manage a second account for 18 years. So just open a second account for the other kid. Now you can always, if you feel like you're not treating them equally, you can move money from one to another by changing the beneficiary. You know, you can change the beneficiary. I guess if you had 13 kids, you could have one account and just change the beneficiary every time another one enrolled in college. But I don't know, it feels like you're trying to solve a problem that doesn't exist. Just open a second account. One account for each kid, I think is the best way to do it. All right, next question's from Aaron. Also about 529s.

Hi, Dr. Dali.

Thank you for all that you do.

This is Aaron from the Southeast.

My question is, what is the maximum.

That you would consider contributing to a 529 plan for the tax benefit for a toddler? This would assume that the Funds are.

Available to pay for it.

It's just a matter of putting it in there for tax benefit. This would be for K through 12 private school as well as for college tuition. Just having a hard time of where to top off the maximum amount allowing.

For growth given, you know, 16 plus years of time.

Appreciate your input. Thank you. Well, you're looking for a simple answer to a complex question. I mean, there's not anywhere near enough data that you've given me in your 42 second question to actually run numbers and give you the answer to this. Because it's different for everybody. It varies by a lot of things. One's what you're going to use the money for. Like in your case, you're talking about using it K through 12 as well as in college. My kids are in public school K through 12, so we don't have to put anything in there for K12. So obviously my kids need a smaller 529 than yours do. Likewise, you got to think about, well, how bad of a thing is it if you end up overfunding it? Not a big deal to me. I'm just going to change it to the grandkids. I'm going to change the beneficiary to the grandkids. Other people are like, well, I'm not going to pay for that. I want to spend the money that doesn't go toward college. I really don't want to overfund them. So they got to be a little more careful how much they put in there. You also have to look at, well, where are they likely to go to college? Or in your case, where are they likely to go to kindergarten and how much does that cost? But if you're really talking about putting K through 12 and college expenses on it, you can put a lot of money into a 520. Nine states all have their max of how much you can have in there, but there's nothing that keeps you from going to another state and putting more in there. Remember the benefits of a 529 some states, and you should know this for your state will give you a deduction or a credit for a certain amount of money put into it. I would probably try to put in at least that much money. I think that's a pretty good tax benefit. It's not that much though. I mean, in my case, if I put $1,000 into it, I get $50 off my state taxes. That's the Utah benefit. Some states are better than that. And I think we can put in a little over 4,000 and, and get that 5% credit on it in Utah. Some states don't give you squat though. So you need to know for your state. The other benefit, of course is that all the earnings come out tax free when you use them on approved educational expenses. So that's both federal and state, although it may not be the case in New Jersey and California. They tend to not play with things like that. But actually I think it is, I think it's okay for 529s. I think they are state tax free. The withdrawals in those states, I think it's HSAs that they really get you on. So I take that back. That's not a 529 thing, that's an HSA thing. But that's the big tax benefit, right, is the tax free growth. And so the way you get that is by leaving the money in there for a long time, by investing it aggressively so it grows a lot. That's the real tax benefit you're going for. And obviously there's no limit on that, right? I mean, if you put money in there now and your kid doesn't use it and you change the beneficiary to your grandkid or a great grandkid, right now you've got 80 years of tax protected growth and that's a huge benefit. So why not have more instead of less? So there's really no cap on it in that respect. But I think what you're really asking is how much should I save for college? How much should I put in the 529? And here's my recommendation. Number one, make sure retirement's done first. Your kid can get a loan for school. They can go to a cheaper school, they can work their way through school. You can help them with your current cash flow in school, none of that works very well. In retirement. You can help your kids best from a position of strength. Make sure they're not going to have to assist you first. After that, start considering the likely expenses. Where are they likely to go to school? Are they likely to go to Georgia Tech? Are they likely to go to byu? Are they likely to try to go to someplace really expensive? Is your alma mater $60,000 a year? Well, you're going to need more in there. And if you're trying to send your kid to the University of Utah, all right, it's just a very different cost of education. So consider that. And then you just work backwards, right? If you're starting when they're 15, you got to put a whole bunch in there. If you're starting when they're two, you don't have to put as much in there per year because you have more time for the compound interest to work. If you're super funding it, you know, as soon as you get their Social Security card, you're putting five years worth in. Well, you can probably get away with putting less in, but those tend to be the people that put more in anyway and have to deal with overfunding issues. You know, remember, there's a new thing with the Secure Act 2.0. There's this new thing coming out that you're going to be able to do some rollovers from the 529 to the beneficiary's Roth IRA, a total of $35,000. It's not really in place yet, but it does provide another relief valve. If you end up saving a little too much in a 529 and don't want to just change the beneficiary, you actually want to get the money out. That is another option to get out without paying any penalties or taxes on the earnings. All right, our next question comes via email. I've been a big time fan and follower ever since residency. I'm an orthosurgeon who's two years into practice, married to another high income professional. Our net worth is slightly over $2 million. There's no debt other than the remainder of our mortgage. Wow. Well done. Two years into practice and already a multimillionaire. That's pretty awesome. We've been very blessed, no doubt, but have also been very intentional in our earnings and spending. Thanks to you, we have a seven month old son. We'll likely be expanding our family in the next year or two. My question is, what do you think is a reasonable amount to have in a 529 given the exorbitant cost of college nowadays? A family member of ours recently got accepted to a prestigious college where the cost is around $100,000 a year by the time my son is 18. Do you think these colleges will cost more than $500,000 to $700,000 for four years? So far I have $32,000 and it's $529,000 $16,000 each year. But I also would prefer not to have a ridiculously overfunded 529 either if he ends up not using it. As you have kids of your own, what do you think is a reasonable price tag and expectation for funding a college education? Curious to know your thoughts on this. Well, I got one kid in college. Tuition is Six grand a year. So my perspective is very different from someone who's sending their kid to a $100,000 a year school. But if that's truly what you want to do, you want to send your kid to what's the equivalent of $100,000 a year now, and you got to assume that's going to grow at 6% ish a year, it's going to double in the time you're saving for College. That's now $200,000 a year. So we're now talking about, you know, $800,000 for a four year education. So you better get going if you want to save that much in a 529 to pay for their entire education. But that's like, wow, that's a lot of cash. And maybe it's fine for your family. I mean, shoot your multimillionaires two years out of practice, maybe you can afford that. But I think most physician families are going to go, we can't afford $800,000 per kid. We're going to have to do something else. And they save what they can. You throw three or four or $5,000 in the 529 each year and you call it good. And what it grows to is what it grows to. And everything else has got to be made up for with good school selection, with the kid working, getting scholarships, maybe something from your current cash flow, those sorts of things. And they piece it together, they cobble it together. And if the kid wants to go to somewhere really expensive, they may end up with a little bit of student loans. But I don't think that's mandatory these days. If you're a physician, there are enough less expensive schools that you do not have to borrow for an undergraduate education. But the key is selecting a place that doesn't cost $100,000 a year, or in 15 or 18 years, maybe $200,000 a year. The other thing to keep in mind is overfunding is not like this terrible tragedy. Right. It's like all the people that complain about their huge tax bills or their huge required minimum distributions. Right. These are great problems to have. Yeah, I got too much in a 529. There's still $100,000 left over after paying for my kids college. What do I do now? Well, you got so many awesome options. I just mentioned the 529 to Roth IRA option. For 35,000 of it, you can change the beneficiary to their kids or to another sibling, niece, nephew, whatever. You can pull the money out and Spend it on a boat. Yes, you'll have to pay taxes on the earnings. Yes, you'll have to pay that 10% penalty. But it's not like the money's gone, right? You benefited from some tax protected growth for many years and that helps offset some of that penalty in those taxes. So it's not like this terrible thing. It's like these people that are worried that they're going to get prorated because they got made $5 in their traditional IRA before converting it to a Roth IRA. Oh no, now I'm getting prorated. Okay, well now you owe a dollar in tax. You know, it's just not that big of a deal. So yeah, you try to get it right, you try to hit it on the nose with how much you put in your 529. But it's impossible to exactly calculate how much to have in there unless your goal is simply to have $100,000 no matter what. Maybe you can work toward that, but I think you're far better off just concentrating on what am I going to put in there every year. And maybe your goal Is to put 5,000 in there or maybe your goal is to max it out and put, put whatever it is, 16, $17,000 a year in there and just have this huge 529 by the time they're 18. But I would maybe set your goals more on how much you want to contribute than on how much you want there to be in the end because there's so much you can't control there. Okay, let's take a question that's a little bit different.

Hi Dr. Danley. Thanks for all you do. Me and my husband are pharmacists. We have a one year old and a two and a half year old. These past few years we've been contributing to the max limit on 401k, Roth IRA and HSA accounts. We also contribute to each of their 529 plans and a little to our taxable account. I'm planning to cut some hours at work to spend more time with the kids. So I was wondering if I have to choose from one of these buckets to cut down from that you would recommend cutting down from the taxable and 529 first or from one of the retirement accounts? Our retirement accounts currently make up about 65% of net worth, not including our house with 401k being the biggest bucket with 50% of our net worth. Any advice would be greatly appreciated. Thanks again for all you do.

Well, this is an easy question. In some ways And a hard question in other ways. The easy answer is almost always you want to be maxing out retirement accounts before you invest in taxable. That's even if you plan on retiring early. The only reason not to is if you have some investment with a super high expected return available to you in a taxable account that is not available to you in your retirement accounts. If you want to start some short term rental business or you want to invest money into some new crypto asset or something, then maybe you have to do that in a taxable account. But for the most part, you max out the retirement accounts before you invest for retirement in a taxable account. Now, the harder part of the question is your goals. How much you're putting toward retirement, how much you're putting toward college. These are two separate goals. And for example, let's say your plan was to put $50,000 toward retirement each year. And let's say you could only put $45,000 in your retirement accounts. Well, if the goal is $50,000, you need to put $5,000 into your taxable account before you move on to a less important goal, which is saving for college. On the other hand, let's say you can put $60,000 into retirement accounts each year and your goal Is to save $50,000 for retirement. Well, when you get $50,000 into those retirement accounts, you stop and you move on to the next goal, even if the account's not maxed out. Yes, you're giving up a tax break there, but don't let taxes drive the investment vehicle. Right? Don't let the tax tail wag the investment dog. Set your goals, work toward your goals. That's what should be driving this whole process. And so that's what I would turn the question around to you and say, well, which goal are you? You know, do you want to cut back on? You might be saving more than you need to for your goals right now, which makes it easy, you know, cut back on both of them maybe. But if you realize that one of these goals has to give because you don't have enough now to reach both of those goals and do this thing that's more important to you, which is to be home with them, then you've got to decide which goal is more important. And in general, that's the retirement goal, not the college savings goal. But I'll bet if you look at the numbers carefully, you'll realize that you'll probably still have enough saved to reach your goals and make it easy to decide which one of those two to Cut back on probably going to be that taxable account, I'm going to guess. Alright, let's talk about the daddy match Roth Ira. Hi, Dr. Dolly.

This is Terry from Illinois. My question is about the Daddy Match Roth ira. I would like some information about the nuts and bolts of opening one of these. If my child earns income on a W2 this year, I assume I should open a Roth IRA next year at Vanguard before April 15th and use my money to open it. I would fund it using the amount she earned on her W2 from this year. She would keep and use the actual money she earned. Does this sound correct? Thank you.

I appreciate you. All right, great question. First of all, don't call up Vanguard and ask for a Daddy Match Roth ira. They're not going to have any idea what you're talking about. These are custodial Roth IRAs, is what they are. And here's the rule for retirement account. You must have earned income to contribute to a retirement account. But if your kid has earned income, they can contribute to a retirement account like a Roth ira. They contribute the money they earned into the Roth ira. If anybody asks, if Vanguard asks, if the IRS asks, that's their money going in the Roth ira. The money they made working their earned income went in the Roth ira. Now, if you happen to want to give them the equivalent amount of money out of your pocket, that is allowed up to $17,000 per year without any gift taxes being filed or anything like that. And they can spend your money while their money goes into the Roth ira. Hope that's clear. Is it the same in the end? Yes. Money is fungible, but technically that's what's happened. The earned income is going into the Roth ira. All right. Another question via email. I am the custodian for my minor son's UTMA and Roth IRA accounts. How do I set up beneficiaries in the event that I or my son pass away? For the utma, I'm able to list a custodian successor, which will be my spouse. Great. For the Roth ira, I was told that you cannot list a custodian successor. I plan to list his father as the first beneficiary in our trust as a secondary beneficiary, like I would for any of my own retirement accounts. Is this correct? Sure, that's fine. That's a reasonable beneficiary designation. I can tell you what mine is for my kids. Roth iras. Number one is their spouse, to whom they're married at the time of their death. Obviously, none of them are married. So none of it's going to go there. And secondly is the trust. So those are our beneficiaries. Then I don't have to remember to change it when they get married. But you can set your beneficiaries however you like. There isn't a correct beneficiary. You just got to ask yourself, where do you want the money to go? If they're going somewhere, but in general, if they're still a minor, there's still going to be a custodian. And so that can be set up after death. That's not a big deal. It's not like somebody's going to run off with the money because you haven't specified that the money is theirs. It has to be used for their benefit. It'll be pretty easy to sort out who the custodian is in the event of death. The second part of that question, finally, if he has a very low amount of earned income, less than $200 to start, I cannot even buy a share of VTI with that. And a 2070 target date retirement fund would require at least $1,000. Is there anything I can vest in for him with such a small amount in a Roth? Well, yeah, you can buy a share of a stock or you can find a different ETF with a lower share value if you wanted to. But if we're really talking about $200, forget it. All right? It's $200. It's not going to move the needle. You can buy it in a, you know, UTMA if you want, or just give them the $200 and put it in a savings account. It's $200, right? If that's really all we're talking about, I would not bother with this hassle. This hassle will not be worth the earnings on $200, I assure you. Maybe you could go buy a share of McDonald's stock or something. Let's see what McDonald's is. McDonald's is trading today. Nope. That's almost 300 bucks. You can't buy McDonald's. Maybe Disney stock. Can you buy Disney stock? Disney stock? It's 89.53 today. So you could buy 2 shares of Disney and every time they watch a Disney movie, you can tell them they own it. All right. Another question on Utmas.

Good morning, Dr. Dali, and thank you for taking my questions. My first question is regarding utmas. When this money is spent on their behalf for cars or cancer in their teenage years, how is this taxed, assuming that they have no real income? My second question is I understand that the rest of the UTMA will get handed over to my children when they turn of age in Texas and that they could realistically spend this money on anything. I feel a strategy to help mitigate some of the risk for inappropriate spending would be to continue to earmark funds for them in my own brokerage account. And when they come up with a good need for this money, say a down payment on a house or a wedding, then I can transfer appreciated funds from my account to them. Thus, I avoid the taxes of those appreciated shares and they will get to take that money out at their tax bracket, which will almost certainly be less than mine at that time. Is there anything that I've not considered regarding these two strategies for the UTMA and gifting funds? I don't feel like we'll have too much money in their utmas to go over the kiddie tax, nor will I ever hit the gift tax ceiling.

Thank you.

Okay, that last line was really important. Actually. You included a lot of information in your last line that now I don't have to necessarily specify, but I think I better outline it for the benefit of others that are listening to this. A UTMA Uniform Transfer to Minors Account or UGMA Uniform Gift to Minors Account is essentially a custodial taxable account you have for your kids. It's a gift to your kids. Once you give it to them, it's their money. It can only be used on their behalf. And once they hit the age of majority in that state, which in Texas is 21, it's 21. In most states, it's their money to do whatever they want with. Right. They want to go use it on cocaine, they can do that. They want to buy a Tesla with it, they can do that. They want to give it away to charity or their girlfriend or whatever, they can do that. Okay. It's their money. If you don't want it to be their money, don't give it to them. Keep it yourself. And yes, you can do that in your taxable account. Now, can you later give them money because you like the choices they're making in their life? Absolutely. The only issue is gift taxes, right? So you can give $17,000 a year that goes up every few years, $17,000 a year to anybody you like without having to file a gift tax return. Your spouse can also give $17,000. You can give it to your son in law or daughter in law as well. $17,000, totally separate limit. So you can give a fair amount of money without any gift tax consequences. And Even if you do have to file a gift tax return, which I've done once, as we did some of our estate planning, it's not that big of a deal. But it is kind of a pain to file an extra tax return. But you don't actually pay gift taxes until you've used up your entire estate tax exemption, which for a married couple is like $26,000 right now. It's a lot. All right, so the point of using a UTMA is to try to save some money on investment related income taxes, because it's their money, it gets taxed at their tax rates. But the IRS is no dummy. They're like, well, what if people put a whole bunch of money in there so it just gets taxed at the kids rate and saves the parents a whole bunch of money. So they put in what we call informally the kiddie tax. So basically the way this works, in 2023, the amount is $1250. The first $1250 of income in that account is tax free. The second $1,250 gets taxed at the kids tax rate, which is generally 10%. I suppose if it was qualified dividends, it could be zero percent, but that gets taxed at the kid's rate. After that it gets taxed at the parent's rate, not the custodian's rate, as I learned recently at the parents tax rate. So that keeps you from putting too much in there. If you invest it very tax efficiently, you could probably have up to about $100,000 in the UGMA without having to pay kiddie tax on it. Kiddie tax is what the parent pays at their tax rate, not what the kids paying, despite its name. All right, you also mentioned at the beginning, how would this work if you use the money for them to get a mountain bike when they're 16 or something? Well, that would generate some capital gains. And those capital gains up to $1,250 per year or up to $2,500 per year would be taxed at 0% or at the kid's rate. After that, it'd get taxed at your capital gains rate. So that's how it would work. But you could choose to sell, just like any taxable account, you could choose to sell the least appreciated shares, the highest basis shares. And you would do that to try to maintain tax efficiency. So no big deal. If you want to use it before 18 or 21 or whatever, it just has to be used for their benefit. You can't use it to pay your rent. All right, quote of the day today comes from Stephen Covey said the key is not to prioritize what's on your schedule, but to schedule your priorities. Good advice there. All right, let's take a question from Luke, also related to kids and kids savings accounts.

Hi Jim, this is Luke, a physician spouse from Northern California. My wife and I recently had our first child. We have opened and begun funding their 529. However, for flexible spending for our child's future, I have heard an alternative to the UTMA UGMA 20s fund you chose for your children. The idea is to instead open a brokerage account in my own name with my child listed as a beneficiary. This account could serve as the source for gifts to the child during their 20s and 30s. This option also preserves flexibility should we the parents need funds for an alternative goal or should our future 18 year old prove to be a poor steward of financial resources? We currently do not have a brokerage account as we can meet our retirement savings goals entirely in tax protected accounts. Would you still opt for the UTMA UGMA given the tax efficiency of this strategy? Thank you for your thoughts.

As I said earlier, if you do not want them to have the money, do not put it in a UTMA UGMA because it will eventually be their money. Now there is one benefit you might not have thought about of giving them money at that age. You get to see what they do with it and that could determine what you do with later inheritances, et cetera. The amount of money our kids are getting in their 20s fund. This inheritance is a tiny fraction of what they are currently scheduled to get later at 40, 50 and 60. And so if it turns out they suck at money, we're going to learn on a relatively small percentage of the money in their 20s. And so there is that benefit. So keep that in mind. But you don't have to do that. You can keep it in your account and you can just give it, dole it out as you see fit. Don't forget how the taxes work on that. Right? When you give something away, the kid gets your basis. It's not like when you die and they get it and they get a reset basis, they get your basis. So that's not necessarily a bad thing because they might be in a lower tax bracket. So instead of you having to pay 23.8% on long term capital gains, maybe they're paying a 0% or 15%. So there's some savings there that's not necessarily a bad thing. But you are limited by the gift tax limit, right? $17,000 a year. You want to turn around and give them $80,000. That becomes a little bit tricky unless you can give them you and your spouse each give them $17,000 and you give $17,000 each to their spouse and you try to cobble it together that way or you file a gift tax return. You know, you got that to deal with, whereas you don't have that to deal with with the utma. But yeah, you know, a lot of people feel a little bit angst about putting that money out there into their kid's name when they don't really know what the kid's going to be like. And if that's the case with you, don't put very much in there. Or, you know, keep it in your own taxable account. You can always give it out later and obviously spend it yourself if you want. And there is no limit to how much you can put in your taxable account. There just is limit on how much of it you can give away each year. Unless you're giving it to charity. No limits on that. Do you ever find yourself wishing there was somewhere to go to ask your finance, insurance or investing questions? The White Coat Investor community is a great place to turn. We have a thriving community across all of our social Facebook, Twitter, Instagram, Reddit and our WCI forum. We've been discussing solutions to your money problems since 2011. Join the Conversation with thousands of other White Coat investors. Follow WCI on your favorite social media platform for financial resources, tips and strategies. Just head to your platform of choice and search for the White Coat Investor. You can do this and the White Coat Investor can help. Don't forget to sign up for the Financial basics email series whitecoatinvestor.com basics. It's free and you can unsubscribe at any time like everything else we send you. Check it out. If you're having trouble following what we're talking about on this podcast, you probably ought to read those for a few months. All right, thanks for those leaving five star reviews. We had one that came in from Jumping with Jess Said. Great podcast. I've learned so much valuable knowledge over the course of listening to this podcast. I wish I had tuned in while I was a med student and resident, but really enjoying all the content and trying to apply it so that my partner and I can achieve financial freedom in the future. 5 stars. Thanks for that review, Jess. That one's actually a little bit older. It's a couple of years old. So I hope you are achieving that financial freedom at this point and that the podcast continues to be helpful for the rest of you. Keep your head up, shoulders back. You've got this and we can help. Have a great summer. Have a great fall. I guess we're getting close to the end of the summer. By the time you listen to this, I think it runs August 10th. Kids are going to be going back to school soon, but you've got this. Man, this finance stuff is not that hard. It's easier than what you do day to day. See you next time.

The hosts of the White Coat Investor are not licensed accountants, attorneys or financial advisors. This podcast is for your entertainment and information only. It should not be considered professional or personalized financial advice. You should consult the appropriate professional for specific advice relating to your situation.