Search found 48 matches

by Finance-MD
Sat Apr 22, 2017 9:13 pm
Forum: Personal Finance (Not Investing)
Topic: Advice Responding to Layoff Notice while Working Towards Medical School
Replies: 18
Views: 1373

Re: Advice Responding to Layoff Notice while Working Towards Medical School

Good luck wrendan!
p.s. I was a teacher too prior to going to Med school. Being a teacher gives you so many schools that will help you as a clinician in the future.
by Finance-MD
Sat Apr 22, 2017 6:46 pm
Forum: Personal Finance (Not Investing)
Topic: Advice Responding to Layoff Notice while Working Towards Medical School
Replies: 18
Views: 1373

Re: Advice Responding to Layoff Notice while Working Towards Medical School

I agree with inframan above. Mathematically, the sooner you earn a physician salary the better, and it's one more working year of physician income. You do have to balance this with getting accepted and into a program you'd like. Some state schools have 'rolling' admission processes, so it's very val...
by Finance-MD
Sat Apr 22, 2017 11:12 am
Forum: Personal Finance (Not Investing)
Topic: Advice Responding to Layoff Notice while Working Towards Medical School
Replies: 18
Views: 1373

Re: Advice Responding to Layoff Notice while Working Towards Medical School

Do you mind sharing what state you live in? Do you hope to stay there for school? Some states have much cheaper medical school training (e.g. Texas). Some states have a lot of schools to increase the likelihood of getting in (e.g. Ohio). You would need to establish residency in a particular state to...
by Finance-MD
Thu Apr 20, 2017 8:08 pm
Forum: Personal Finance (Not Investing)
Topic: Max out 401K OR Pay off Federal Student Loan
Replies: 11
Views: 1019

Re: Max out 401K OR Pay off Federal Student Loan

I would recommend same as above 2. Student loan debt at 3% is barely above inflation. Also, in case of premature death, retirement accounts can be passed down in your estate; student loans just disappear. Every dollar that goes goes to student loans is a dollar permanently gone. You can always tap i...
by Finance-MD
Thu Apr 20, 2017 6:38 pm
Forum: Personal Finance (Not Investing)
Topic: Quarterly estimated tax if Frontloading Pre-tax retirement
Replies: 5
Views: 588

Re: Quarterly estimated tax if Frontloading Pre-tax retirement

Thanks again FiveK and House Blend! You guys are awesome... Yes - if your payroll department processes your W-4 correctly and in time for the December pay. Personally, I wouldn't cut it that close.... Yeah, in reality, I probably won't cut it *that* close; was just asking in theory. My wife and I bo...
by Finance-MD
Wed Apr 19, 2017 11:43 pm
Forum: Personal Finance (Not Investing)
Topic: Can we afford to purchase this new house?
Replies: 13
Views: 1219

Re: Can we afford to purchase this new house?

I don't think you can call it living free in your parent's investment property if they can't even depreciate the property, since they are using it for personal use by renting it to you below fair market value. It sounds more like they are gifting you a house. Do they akso pay the property tax on it?...
by Finance-MD
Wed Apr 19, 2017 10:32 pm
Forum: Personal Finance (Not Investing)
Topic: Quarterly estimated tax if Frontloading Pre-tax retirement
Replies: 5
Views: 588

Re: Quarterly estimated tax if Frontloading Pre-tax retirement

Thanks so much FiveK! Does the IRS care when those withheld funds are withheld or is it just by the end of 2017 that matters? e.g. can i keep my W4 as married with 2 allowances, save the cash, then in December, update my W-4 so they withhold up to 100% of my post-tax money (or whatever it needs to b...
by Finance-MD
Wed Apr 19, 2017 4:03 pm
Forum: Investing - Help with Personal Investments
Topic: Real estate rate of return?
Replies: 34
Views: 2926

Re: Real estate rate of return?

Is there a minimum rental period they specify? In many places, you can do month-to-month furnished rentals at a significant premium. 30 days. We might end up doing that. It would give us more flexibility to use it as a personal guest-house sometimes, though it would also require more work. A good t...
by Finance-MD
Tue Apr 18, 2017 11:50 pm
Forum: Investing - Help with Personal Investments
Topic: Real estate rate of return?
Replies: 34
Views: 2926

Re: Real estate rate of return?

AirBnB/short term rentals are not legal at my location (and it is enforced). It's not impossible that the city council will eventually end up making it allowed when the owners live there as well, but I'm not counting on that. Is there a minimum rental period they specify? In many places, you can do...
by Finance-MD
Tue Apr 18, 2017 10:44 pm
Forum: Personal Finance (Not Investing)
Topic: Quarterly estimated tax if Frontloading Pre-tax retirement
Replies: 5
Views: 588

Quarterly estimated tax if Frontloading Pre-tax retirement

We frontloaded 2 of our 3 work retirement accounts (Her 457 and Her 403b elective deferrals) and maxed them out in Q1 this year. We are both W2 employees and have used our own escrow account in savings to keep up with any underwithholdings, which worked fine for 2016, since our 2016 withholdings wer...
by Finance-MD
Tue Apr 18, 2017 12:13 am
Forum: Investing - Help with Personal Investments
Topic: Real estate rate of return?
Replies: 34
Views: 2926

Re: Real estate rate of return?

How many square feet is the construction? $200k sounds like an incredibly expensive build for a garage apartment. $200k will build 3-4 bedroom houses in a lot of the country. I know you're in a HCOL area, but you already have the land. It sounds like a retail builder is trying to rip off an affluent...
by Finance-MD
Sat Apr 15, 2017 12:41 pm
Forum: Personal Finance (Not Investing)
Topic: million dollar condo?
Replies: 32
Views: 3307

Re: million dollar condo?

For me, I only buy homesteads that I can move out of and keep as a rental property at any time and at least break even on cash flow. You need to know what that unit will rent for on the market. We actually do this on purpose: 'house hacking.' We buy a homestead, live in it for a year, then move out...
by Finance-MD
Sat Apr 15, 2017 12:06 am
Forum: Personal Finance (Not Investing)
Topic: million dollar condo?
Replies: 32
Views: 3307

Re: million dollar condo?

A key cost as someone else mentioned is the HOA fees. Lots of them in nice cities can be >$1000/month. This is not tax deductible on a homestead and effectively worth ~$150k of house price as a mortgage. As a physician married to one, both with W-2 incomes, I am personally in favor of strategically ...
by Finance-MD
Fri Apr 14, 2017 11:10 pm
Forum: Personal Finance (Not Investing)
Topic: Question about evaluating whether to buy down points on mortgage
Replies: 4
Views: 470

Re: Question about evaluating whether to buy down points on mortgage

Make sure to consider the effective monthly payment difference based on tax deductibility of the mortgage payment. It may only be ~$30/month difference. Granted the $2000 would've invested taxable with its own taxes, but may not be much. Let's pretend the monthly difference is $30/mo net of tax dedu...
by Finance-MD
Fri Apr 14, 2017 12:08 pm
Forum: Investing - Help with Personal Investments
Topic: 529/son got accepted to medical school whahoooo!
Replies: 30
Views: 3112

Re: 529/son got accepted to medical school whahoooo!

updated above post with simulation of spending down 529 vs keeping 529 invested.
not making a recommendation either way, just showing the mathematical data for mathematical data-driven decision making
by Finance-MD
Thu Apr 13, 2017 11:27 pm
Forum: Investing - Help with Personal Investments
Topic: 529/son got accepted to medical school whahoooo!
Replies: 30
Views: 3112

Re: 529/son got accepted to medical school whahoooo!

in response to the comment above (now deleted), I had not suggested to spend the 529 on shopping. i suggested keeping it invested. This would also allow flexibility to maintain a more aggressive asset allocation since the funds wouldn't all be needed all at once. The net worth of the individual may ...
by Finance-MD
Thu Apr 13, 2017 11:12 pm
Forum: Investing - Help with Personal Investments
Topic: 529/son got accepted to medical school whahoooo!
Replies: 30
Views: 3112

Re: 529/son got accepted to medical school whahoooo!

Congratulations to your son and yourself. Just throwing a wrench into this discussion as food for thought. I may have some misunderstandings about rules and regulations of 529s but... Does your son have any idea if he may want to stay in academia and work for a non-profit? If so, he could take the M...
by Finance-MD
Thu Apr 13, 2017 12:22 am
Forum: Investing - Theory, News & General
Topic: Low balance SEP and immediate rollover
Replies: 2
Views: 203

Re: Low balance SEP and immediate rollover

Spirit rider, you are awesomest.
Thanks for answering my posts!!
by Finance-MD
Wed Apr 12, 2017 10:13 pm
Forum: Investing - Theory, News & General
Topic: Low balance SEP and immediate rollover
Replies: 2
Views: 203

Low balance SEP and immediate rollover

I earned about $3000 last year in profit from a short teaching gig that got me self-employment income on a 1099. I've been going back and forth about whether it's worth the effort/money to open up a SEP IRA just to make a small contribution (<$600), which I would then plan to roll over into 401k, wh...
by Finance-MD
Wed Apr 12, 2017 7:56 pm
Forum: Personal Finance (Not Investing)
Topic: Can I put Mutual Funds instead of Cash into my SEP-IRA?
Replies: 13
Views: 751

Re: Can I put Mutual Funds instead of Cash into my SEP-IRA?

If you put a post-tax dollar into a SEP, you will get a tax deduction on that dollar. That tax deduction will save you money at your marginal rate, but you will have to pay capital gains tax. There is a potential arbitrage here (e.g. 40% marginal - 20% capital gain = 20% arbitrage). Then the questio...
by Finance-MD
Tue Apr 11, 2017 11:22 pm
Forum: Personal Finance (Not Investing)
Topic: Can we afford private school tuition
Replies: 42
Views: 3156

Re: Can we afford private school tuition

How do you calculate you'd like to have $120k in today's money when retired? Your current budget is just about $10k/month or $120k/yr. with a paid off house and kids out of the house, do you plan to inflate your lifestyle further in retirement? The general rule is 25x your annual spending is needed ...
by Finance-MD
Tue Apr 11, 2017 9:27 pm
Forum: Investing - Help with Personal Investments
Topic: Taxable to SEP IRA? Is that possible
Replies: 11
Views: 595

Re: Taxable to SEP IRA? Is that possible

Yes I'd sell the shares with a loss to harvest those losses. Then I'd buy something similar but different inside the SEP, but not VTI - that would likely not be considered substantially different. You could just buy SP500 and an extended market mutual fund (VEXAX) in a 4:1 ratio. Then after 31 days ...
by Finance-MD
Tue Apr 11, 2017 9:19 pm
Forum: Investing - Help with Personal Investments
Topic: Put $6,500 bonus check to pay off car or max out Roth for the year?
Replies: 29
Views: 1688

Re: Put $6,500 bonus check to pay off car or max out Roth for the year?

If you paid off your car would you sustainably use that car payment amount toward investing? Or would you be tempted to 'spend' that money. If you're tempted to 'spend' it, for some people it's better not to pay off the loan and invest the free cash today since it keeps you accountable long term. If...
by Finance-MD
Tue Apr 11, 2017 9:08 pm
Forum: Investing - Help with Personal Investments
Topic: Fidelity Brokerage Link Option in 401k
Replies: 12
Views: 682

Re: Fidelity Brokerage Link Option in 401k

Has anyone used personal capital with a fidelity 401k/403b account using brokerage link? I'm wondering if it will show the actual fund in the brokerage or just some placeholder that says 'brokerage.' I activated a brokerage account with my wife's 403b with TIAA, and personal capital would not recogn...
by Finance-MD
Tue Apr 11, 2017 1:48 pm
Forum: Personal Finance (Not Investing)
Topic: Maximizing Tax Benefits from Condo Purchase
Replies: 3
Views: 333

Re: Maximizing Tax Benefits from Condo Purchase

Likely would be better if mortgage was in your name. Just with state tax, you are over the standard deduction (~$6300) already. Thus, the full amount of mortgage interest would therefore be deductible and at your marginal tax rate. Since your marginal tax rate is higher than hers it should be better...
by Finance-MD
Tue Apr 11, 2017 11:57 am
Forum: Personal Finance (Not Investing)
Topic: Selling my condo with owner financing?
Replies: 24
Views: 1510

Re: Selling my condo with owner financing?

Also, since the building is heavily investor owned, do you know if other people are running AirBnB's in the building? Condos can be an ideal setup for airbnb/VRBO except that most HOA's ban short term rentals. Yours may be an exception. You could hire a company that does full service management, and...
by Finance-MD
Mon Apr 10, 2017 11:07 pm
Forum: Personal Finance (Not Investing)
Topic: Mortgage Question (buying a new home before selling current one)
Replies: 21
Views: 1629

Re: Mortgage Question (buying a new home before selling current one)

A lender would love to refinance you and capture closing costs twice. Why do you want to buy the first and sell your other immediately after? Is it just to have a place to stay? You can always put a contingency on buy offer that it is contingent on you selling your house. You can also sell your hous...
by Finance-MD
Mon Apr 10, 2017 10:22 pm
Forum: Personal Finance (Not Investing)
Topic: Selling my condo with owner financing?
Replies: 24
Views: 1510

Re: Selling my condo with owner financing?

You should see how much it would get as a rental. The fact that a lot of condos are being built does not necessarily help your valuation unless those new ones are going to be much more expensive. The unfortunate thing about your condos being unlendable for bank mortgages is that limiting the pool to...
by Finance-MD
Mon Apr 10, 2017 4:34 pm
Forum: Personal Finance (Not Investing)
Topic: Selling my condo with owner financing?
Replies: 24
Views: 1510

Re: Selling my condo with owner financing?

From my experience, when you sell with owner financing, you are selling the property, just as you would with traditional financing. The only exception is that you are the bank. Thus, the title would be transferred to the buyer, however you would carry the note that has 1st order lien on the deed. Th...
by Finance-MD
Mon Apr 10, 2017 2:13 pm
Forum: Investing - Help with Personal Investments
Topic: Taxable to SEP IRA? Is that possible
Replies: 11
Views: 595

Re: Taxable to SEP IRA? Is that possible

I think it will have to go in as cash since it's a contribution from your 'income.'

Do you have any shares that were at a loss? you could harvest losses of those specific shares, capture that tax deduction, then also the deduction for your SEP contribution.
by Finance-MD
Mon Apr 10, 2017 1:46 pm
Forum: Personal Finance (Not Investing)
Topic: Need help picking term life policy (updated 04/10)
Replies: 33
Views: 1904

Re: Need help picking term life policy (updated 04/10)

I've heard good things about Haven Life, which is backed by Mass Mutual https://havenlife.com/ you can do the whole thing quickly online, even from your phone. i don't have a policy with them or any affiliate relationship with them, just have heard good things about them from multiple financial blog...
by Finance-MD
Mon Apr 10, 2017 1:34 pm
Forum: Personal Finance (Not Investing)
Topic: FSA/HSA Rules for Newlyweds
Replies: 7
Views: 688

Re: FSA/HSA Rules for Newlyweds

Thanks so much, Grabiner & Spirit Rider! :D
by Finance-MD
Sun Apr 09, 2017 11:47 pm
Forum: Personal Finance (Not Investing)
Topic: FSA/HSA Rules for Newlyweds
Replies: 7
Views: 688

Re: FSA/HSA Rules for Newlyweds

Thanks so much Spirit Rider!!! I scoured the internet for hours trying to find a good answer to this! 1 more related question: this is for a different person I work with -- she has an FSA; her husband has a HDP with HSA. He doesn't make any contributions to the HSA but his employer does. Is that oka...
by Finance-MD
Sun Apr 09, 2017 6:48 pm
Forum: Personal Finance (Not Investing)
Topic: Medical School Loans - Repayment Options
Replies: 14
Views: 1324

Re: Medical School Loans - Repayment Options

- MAKE SURE he files taxes for 2016 EVEN IF he is not required! - Consolidate all of his loans into a Federal Direct Consolidation Loan - Immediately sign-up for the REPAYE option (which, if done after consolidation, will waive the 6 month grace period following graduation, and he'll "make&quo...
by Finance-MD
Sun Apr 09, 2017 1:56 pm
Forum: Personal Finance (Not Investing)
Topic: FSA/HSA Rules for Newlyweds
Replies: 7
Views: 688

Re: FSA/HSA Rules for Newlyweds

Asking for two friends/coworkers. He has a HSA, and his fiancée has a healthcare FSA. Her FSA would by default to also covering his spouse (I know this because I work for same company and use FSA for my spouse). They are getting married in May. (1) Is it correct that he can contribute $3400 * 4/12 =...
by Finance-MD
Fri Apr 07, 2017 10:43 pm
Forum: Investing - Help with Personal Investments
Topic: Any reason NOT to do a backdoor Roth IRA?
Replies: 56
Views: 3865

Re: Any reason NOT to do a backdoor Roth IRA?

I would do backdoor Roth IRA for His & Hers since the money is already taxed; it's nice to have that tax-free space that you can grow forever. Do you also have money in taxable though? The downside of Roth is that losses do not help you out while you're in high income. While you're in high inco...
by Finance-MD
Fri Apr 07, 2017 11:42 am
Forum: Investing - Help with Personal Investments
Topic: Any reason NOT to do a backdoor Roth IRA?
Replies: 56
Views: 3865

Re: Any reason NOT to do a backdoor Roth IRA?

I would do backdoor Roth IRA for His & Hers since the money is already taxed; it's nice to have that tax-free space that you can grow forever. Do you also have money in taxable though? The downside of Roth is that losses do not help you out while you're in high income. While you're in high incom...
by Finance-MD
Fri Apr 07, 2017 9:52 am
Forum: Investing - Help with Personal Investments
Topic: Helping Friend sell stocks move $ to Vanguard Need Advice!!
Replies: 7
Views: 675

Re: Helping Friend sell stocks move $ to Vanguard Need Advice!!

I understand on wanting to grow the nest egg as large as possible in the short term so she can reach her goal. However, the willingness and need to take risk must be reconciled with the ability to take risk. Unfortunately, with such a short time horizon, that ability is not there, and trumps the oth...
by Finance-MD
Fri Apr 07, 2017 12:15 am
Forum: Investing - Help with Personal Investments
Topic: Helping Friend sell stocks move $ to Vanguard Need Advice!!
Replies: 7
Views: 675

Re: Helping Friend sell stocks move $ to Vanguard Need Advice!!

She needs to start taking interest in her finances. She needs to have income, and she needs to be responsible for her own decision regarding how much risk she takes on with her investments. An additional $24,000 per year above SS would mean a $600k nest egg and 4% drawdown. She could do a SPIA on a ...
by Finance-MD
Thu Apr 06, 2017 11:57 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard 1 Fund or 'Own' ETF Portfolio ? Help me Decide
Replies: 12
Views: 768

Re: Vanguard 1 Fund or 'Own' ETF Portfolio ? Help me Decide

For only 1.5-2 years, 30/70 has a substantial likelihood of being <<1%. For max equity allocation, Larry swedroe recommends 0% if funds needed within 0-3 years. Then he goes up 10% equity for each additional year available (e.g. 10% if 4 years, 20% if 5 years, etc.) until 80% equity for 11-14 years,...
by Finance-MD
Thu Mar 30, 2017 8:07 am
Forum: Investing - Help with Personal Investments
Topic: Physician-Resident looking for Portfolio Advice
Replies: 34
Views: 2516

Re: Physician-Resident looking for Portfolio Advice

Are you both really at for-profit institutions for residency with 401k's? For your fellowship and her new job, will you be at non-profits with 403b's? 457's? Or are you staying at the same institution (and therefore unable to roll your money out into IRA's)? Do you know what state you want to retire...
by Finance-MD
Wed Mar 29, 2017 3:13 pm
Forum: Investing - Help with Personal Investments
Topic: Guidance on Portfolio setup - New to Investing
Replies: 14
Views: 1006

Re: Guidance on Portfolio setup - New to Investing

In that case - all the more reason to go pre-tax all the way (IRA & 403b).
by Finance-MD
Tue Mar 28, 2017 10:42 pm
Forum: Investing - Help with Personal Investments
Topic: Strategy for late 20s couple with 100k cash
Replies: 14
Views: 1130

Re: Strategy for late 20s couple with 100k cash

You can each do a backdoor Roth. It is discussed extensively on the forum.
by Finance-MD
Tue Mar 28, 2017 9:44 pm
Forum: Investing - Help with Personal Investments
Topic: Merge retirement accounts? Also what to do w/ $5.5k?
Replies: 4
Views: 566

Re: Merge retirement accounts? Also what to do w/ $5.5k?

Thanks for the update. You can leave Roth as is with TD fund You can leave 457 with TD fund as well. You could roll all the old accounts to vanguard and simplify life with Same TD for all of them. If you don't want to simplify... Account 3 has great funds. I would check their annual 403b plan summar...
by Finance-MD
Tue Mar 28, 2017 12:34 am
Forum: Investing - Help with Personal Investments
Topic: Merge retirement accounts? Also what to do w/ $5.5k?
Replies: 4
Views: 566

Re: Merge retirement accounts? Also what to do w/ $5.5k?

What is your goal asset allocation? If it is the same as vfifx, then use that for your Roth contribution. Is prudential for both 403b's? Are either from a previous employer? Don't worry about what your return has been on any accounts in the recent short term; what matters is your asset allocation. 9...
by Finance-MD
Mon Mar 27, 2017 7:44 am
Forum: Investing - Help with Personal Investments
Topic: Guidance on Portfolio setup - New to Investing
Replies: 14
Views: 1006

Re: Guidance on Portfolio setup - New to Investing

Congrats on your motivation to invest aggressively. The biggest key to success financially is to maintain a high savings rate as a percentage of your income. With savings = investments and debt pay down and general savings. After that, choosing where to put money is the simple part. If you can max o...
by Finance-MD
Sun Mar 26, 2017 2:35 pm
Forum: Investing - Help with Personal Investments
Topic: 403b allocation help
Replies: 7
Views: 374

Re: 403b allocation help

How much is each property worth? How many years left on each mortgage? Is the 457 a 457b with same investment options as your 403b? Are you also a government employee (e.g. State university faculty)? Do your retirement options include companies other than Lincoln financial? E.g. I had a university p...
by Finance-MD
Sun Mar 26, 2017 9:35 am
Forum: Investing - Help with Personal Investments
Topic: 403b allocation help
Replies: 7
Views: 374

Re: 403b allocation help

Congrats on coming here for advice. Do you happen to have a 457 at your employer also? What investment company has your Roth IRA? What investment company has your old 401k? Can you give some information regarding your income? It will help with understanding your tax rate and how much can be invested...

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