Search found 57 matches

by uvadk
Wed Feb 03, 2016 8:47 pm
Forum: Personal Investments
Topic: Cash Balance vs. Taxable
Replies: 19
Views: 2134

Re: Cash Balance vs. Taxable

All, great advice. I asked the advisor and the plan is not covered under PBGC. Apparently plans with fewer than 25 participants are exempt? However, I feel very good about the medical practice she is in as well as the young partners who are heading up the plan. Really do not worry too much about sol...
by uvadk
Tue Feb 02, 2016 9:11 pm
Forum: Personal Investments
Topic: Cash Balance vs. Taxable
Replies: 19
Views: 2134

Re: Cash Balance vs. Taxable

orthodoc and alec, thank you. orthodoc - what you said makes sense. given the high fees associated with this plan (currently running approx 1.05% at current assets), would you still get involved? just want to be sure the tax deferral benefits outweigh the fees. alec - I do have a copy of the plan su...
by uvadk
Tue Feb 02, 2016 7:16 pm
Forum: Personal Investments
Topic: Cash Balance vs. Taxable
Replies: 19
Views: 2134

Re: Cash Balance vs. Taxable

Toons,

I have been hesitant to get involved with the plan for just that reason.

Any other thoughts out there as to whether or not we should invest in the cash balance plan?
by uvadk
Tue Feb 02, 2016 6:27 pm
Forum: Personal Investments
Topic: Cash Balance vs. Taxable
Replies: 19
Views: 2134

Re: Cash Balance vs. Taxable

Just found out that AUM are currently $135k, so well under the $500k threshold for 0.85% fees.

Though the advisor claims the fees do not affect the interest rate, it is my understanding that these fees are paid out of the plan - so they are effectively decreasing the assumed return.
by uvadk
Tue Feb 02, 2016 6:26 pm
Forum: Personal Investments
Topic: Cash Balance vs. Taxable
Replies: 19
Views: 2134

Re: Cash Balance vs. Taxable

RNJ, thanks for the info. My understanding of a cash balance plan is that there is a difference for the owners of the company vs. the employees. In other words, the owners (in this case the practice partners) are responsible for funding any underperforming years (just as they may decrease their cont...
by uvadk
Tue Feb 02, 2016 4:20 pm
Forum: Personal Investments
Topic: Cash Balance vs. Taxable
Replies: 19
Views: 2134

Re: Cash Balance vs. Taxable

Great point. Have emailed the plan advisor to ask that very question. Do not know how much AUM at this time, but would guess under that first threshold. Assuming <$500k in fund currently, that would give the 1.95% interest as you showed. Would taxable investing (even at 45% fed/state) still make mor...
by uvadk
Tue Feb 02, 2016 3:34 pm
Forum: Personal Investments
Topic: Cash Balance vs. Taxable
Replies: 19
Views: 2134

Re: Cash Balance vs. Taxable

FiIQ, Thanks for the reply. The plan is 20% equity/80% bond - I am in the process of finding out the assets held, thought I believe they are all DFA. Yes - it does sound appealing as she is an employee and does not bear the market risk of the plan. No match. This is only deferred compensation from h...
by uvadk
Tue Feb 02, 2016 3:05 pm
Forum: Personal Investments
Topic: Cash Balance vs. Taxable
Replies: 19
Views: 2134

Cash Balance vs. Taxable

All, My wife and I are considering investing in her group's new cash balance plan in addition to the current taxable investing we have been doing. A little background: -Maxing out his 401k/profit sharing plan ($53k) -Maxing out her 401k ($17k) -Maxing out his HSA -Established and funded 529s for 2 y...
by uvadk
Thu Sep 11, 2014 6:23 pm
Forum: Personal Finance (Not Investing)
Topic: Advice for a Vanguard 401(k) plan?
Replies: 5
Views: 766

Re: Advice for a Vanguard 401(k) plan?

Our practice has gone through a similar change to Vanguard/Ascensus over the past year. Agree with the previous responses. Ascensus has some valuable online tools for the employees that are motivated to educate themselves on the investing process. As a partner in our group, and a member of our retir...
by uvadk
Wed May 07, 2014 9:13 am
Forum: Personal Finance (Not Investing)
Topic: What our company's 401k Advisor said about 1.5% Fees
Replies: 115
Views: 27509

Re: What our company's 401k Advisor said about 1.5% Fees

Steven, We went through a switch from ING (with very high expense ratio funds and fees) to Vanguard/Ascensus over a year ago. We now have an all Vanguard fund lineup (including Signal share classes with exp ratios as low as 8-9 bps) and could not be happier. Only caveat is that we did have to bring ...
by uvadk
Tue Feb 11, 2014 9:26 pm
Forum: Personal Investments
Topic: Portfolio Advice- Incoming Medical Student
Replies: 12
Views: 1536

Re: Portfolio Advice- Incoming Medical Student

Paden, Congratulations on your acceptance into medical school as well as your current financial situation. You are certainly in a good position at a very young age. Laura's advice is excellent - she gave me similar advice about 15 years ago on this very forum when I was about to enter medical school...
by uvadk
Wed Dec 18, 2013 8:49 pm
Forum: Personal Finance (Not Investing)
Topic: 401k deferral issue
Replies: 17
Views: 2192

Re: 401k deferral issue

Thanks. Great to hear. So, you think okay to go with plan as per Given the excellent Vanguard admiral/signal fund selections in our 401k, would there be anything wrong with the following plan? -deferring say $2k/mo over the first 4 mos of 2014 (knowing this would lead to an approx $2k refund) and th...
by uvadk
Tue Dec 17, 2013 9:36 pm
Forum: Personal Finance (Not Investing)
Topic: 401k deferral issue
Replies: 17
Views: 2192

Re: 401k deferral issue

Thanks.

So, what do you think the best way to handle deferring early in the year and getting the max tax deduction possible?
by uvadk
Mon Dec 16, 2013 9:18 pm
Forum: Personal Finance (Not Investing)
Topic: 401k deferral issue
Replies: 17
Views: 2192

Re: 401k deferral issue

All, Appreciate the continued advice. Mah001, Think you are right on with the 415c limit. I understand your point of trying to maximize the deduction year after year; however, I am typically a fan of making things easy - especially when it come to dollar cost averaging. I also do not love the idea o...
by uvadk
Sun Dec 15, 2013 11:30 am
Forum: Personal Finance (Not Investing)
Topic: 401k deferral issue
Replies: 17
Views: 2192

Re: 401k deferral issue

Bill, Thanks for the advice. The plan's investments are now very good - I actually sit on the 401k committee and we changed a year ago to Vanguard/Ascensus platform. Excellent selection of Vanguard Signal/Admiral shares. So, you would go ahead and defer early in the year - not worry about the post t...
by uvadk
Sun Dec 15, 2013 9:56 am
Forum: Personal Finance (Not Investing)
Topic: 401k deferral issue
Replies: 17
Views: 2192

Re: 401k deferral issue

All, I am running into a bit of an issue with setting up my 401k deferrals for 2014. Much of it is outlined below, but here is a quick summary: -I am a partner in a physician group where all partners max out profit sharing/safe harbor/401k deferrals each year -Our plan year is 9/1-8/31 -I started wi...
by uvadk
Mon Oct 21, 2013 8:52 pm
Forum: Personal Finance (Not Investing)
Topic: 401k deferral issue
Replies: 17
Views: 2192

Re: 401k deferral issue

mah001, Thank you so much for taking the time to give me advice. You are correct, the other partners in the group are maxing out - this does not have to do with nondiscrimination testing. Should I bring this up with our TPA? I have not gotten them involved yet. Not sure our administrators will be th...
by uvadk
Sun Oct 20, 2013 8:15 pm
Forum: Personal Finance (Not Investing)
Topic: 401k deferral issue
Replies: 17
Views: 2192

Re: 401k deferral issue

Thank you all for the replies. It is a bit unclear to me as well about the distinction between plan year and calendar year. Yes, our plan year ends 8/31. Yes, I am one of the highly comps....however, this was told to me back in March of this year (before the end of the plan year) - at which point we...
by uvadk
Thu Oct 17, 2013 2:30 pm
Forum: Personal Finance (Not Investing)
Topic: 401k deferral issue
Replies: 17
Views: 2192

401k deferral issue

All, I recently ran into an issue with my 401k at work having to do with the deferral limits between the calendar year and the plan year. After one year with my employer, I started investing in Sept '12, and maxed out the following 4 mos until Dec '12 ($17k). I then continued to invest in our 401k i...
by uvadk
Thu Dec 27, 2012 9:01 pm
Forum: Personal Investments
Topic: Roth IRA Conversion question from young physician
Replies: 31
Views: 4366

Re: Roth IRA Conversion question from young physician

Great idea. We discussed this with the group. We have initially decided to stay with their institutional/investor shares so that the group will get the benefit of lower recordkeeping fees. However, it may be advantageous to the partners in the group to go to signal shares for some of the funds - des...
by uvadk
Wed Nov 28, 2012 10:03 pm
Forum: Personal Investments
Topic: Roth IRA Conversion question from young physician
Replies: 31
Views: 4366

Re: Roth IRA Conversion question from young physician

Thanks for the advice. Much appreciated! Will plan on transferring $600 into my IRA before rolling it into my 401k.
DK
by uvadk
Wed Nov 28, 2012 7:21 pm
Forum: Personal Investments
Topic: Roth IRA Conversion question from young physician
Replies: 31
Views: 4366

Re: Roth IRA Conversion question from young physician

You need to find out the total ER for your new 401k chosen investment options The options in our 401k would be Vanguard Investor Shares of both the Total Bond Market and the SCV Index (though I may end up moving this to TSM Index) which would be 22 and 35 BP respectively. I am awaiting the recordke...
by uvadk
Tue Nov 27, 2012 9:38 pm
Forum: Personal Investments
Topic: Roth IRA Conversion question from young physician
Replies: 31
Views: 4366

Re: Roth IRA Conversion question from young physician

All, Over the past year, my practice has successfully changed from Wells Fargo/ING to Vanguard for our 401k. The change is set to come in the next 2 weeks. As a reminder, here is my current portfolio: Emergency Funds: 6 mos expenses Future House Downpayment: $28k (adding approx $5k/mo for next 6-8mo...
by uvadk
Sun Nov 18, 2012 7:37 pm
Forum: Personal Investments
Topic: Newly Married Portfolio Help
Replies: 3
Views: 503

Re: Newly Married Portfolio Help

Thanks for the reply. Just to be clear...I was mainly referring to the non-deductible IRA $5600 (intended for backdoor Roth). But you think I should go ahead and roll the rollover IRA $74k into my 401k to clear room for me to do the backdoor Roth? The fees in the 401k are relatively low considering ...
by uvadk
Sun Nov 18, 2012 5:28 pm
Forum: Personal Investments
Topic: Newly Married Portfolio Help
Replies: 3
Views: 503

Newly Married Portfolio Help

All, After getting married recently, my wife and I are looking to organize our finances a bit and would greatly appreciate some help. 34 yr old physician male 29 yr old resident physician female Emergency Funds: 6 mos expenses Future House Downpayment: $28k (adding approx $5k/mo for next 6-8mos) Deb...
by uvadk
Tue Sep 18, 2012 4:26 pm
Forum: Investing - Theory, News & General
Topic: 401k fees
Replies: 28
Views: 3911

Re: 401k fees

kaby, I commend you on focusing on the importance of low fees in a 401k over the long run. Many of us in this forum would argue it is one of the most important predictors of long run returns. I have recently convinced my company to make a change in our 401k provider. It took much educating, and some...
by uvadk
Mon Sep 03, 2012 12:34 pm
Forum: Personal Finance (Not Investing)
Topic: Student Loan Repayment Question
Replies: 13
Views: 2215

Re: Student Loan Repayment Question

All, the advice is much appreciated. We will call Sallie Mae and attempt to group the loans as Campy2010 suggested and then pay off all of the 6.55% loans quickly. We should have enough current income to do this fairly quickly without having to sell any of the taxable Vanguard TSM Index Fund. This w...
by uvadk
Sun Sep 02, 2012 10:36 pm
Forum: Personal Finance (Not Investing)
Topic: Student Loan Repayment Question
Replies: 13
Views: 2215

Re: Student Loan Repayment Question

Thanks. Any guidance on how much to overpay? Any sort of calculators on this? Be aggressive with the high int loans and then back off? Assuming it is easy to direct the overpayments to specific loans?
by uvadk
Sun Sep 02, 2012 10:16 pm
Forum: Personal Finance (Not Investing)
Topic: Student Loan Repayment Question
Replies: 13
Views: 2215

Re: Student Loan Repayment Question

Mudpuppy, thank you very much for the reply. Not sure it is worth consolidating based on that information. Does it make sense to overpay the loans? I understand the concept of paying off high interest loans as somewhat equivalent to guaranteed bond investing. With that being the case, Can we choose ...
by uvadk
Sun Sep 02, 2012 5:25 pm
Forum: Personal Finance (Not Investing)
Topic: Student Loan Repayment Question
Replies: 13
Views: 2215

Student Loan Repayment Question

Hi, I just recently got married and my wife has $117k in student loans from medical school. She is finishing residency, and I am in practice after finishing residency last year. The loans are as follows: (All held with Sallie Mae - formerly with Citi) 1) Stafford - subsidized: (Aug '04) $7677 @ 1.14...
by uvadk
Tue Apr 17, 2012 9:02 pm
Forum: Personal Finance (Not Investing)
Topic: Disability Insurance Advice for Physician
Replies: 32
Views: 2797

Re: Disability Insurance Advice for Physician

BruDude, Good point. Does not seem like much of a savings in the short term for a potential big tax loss in the long run if disabled. Bluemarlin, I do not think that our group's policy is portable. Neurosphere, The difference between 90 and 180 day EP is quite small for my individual policy. Will lo...
by uvadk
Tue Apr 17, 2012 6:57 pm
Forum: Personal Finance (Not Investing)
Topic: Disability Insurance Advice for Physician
Replies: 32
Views: 2797

Disability Insurance Advice for Physician

All, Thanks again for the above advice. Briefly, I have recently started in private practice where my group has a policy they pay of $15k/mo. I also have a personal policy with Guardian for a total of $7.5k/mo that I pay a level premium on (approx $330/mo) with taxable dollars. My question : What do...
by uvadk
Thu Mar 22, 2012 5:17 pm
Forum: Investing - Theory, News & General
Topic: Successful 401k Switch
Replies: 3
Views: 654

Re: Successful 401k Switch

Frank, The group's current situation involves two separate recordkeeping firms. First, ING takes care of the recordkeeping for the assets in the 401k - this fee comes out of a 0.60% "Daily Asset Charge" they have been assessing the group. Despite our best efforts, I have been unable to det...
by uvadk
Thu Mar 22, 2012 3:06 pm
Forum: Investing - Theory, News & General
Topic: Successful 401k Switch
Replies: 3
Views: 654

Successful 401k Switch

All, Wanted to share our story of successfully switching from ING to Vanguard for our company's 401k plan. This is a medical practice with approximately 200 employees (12 or so partner physicians in the group). Briefly, I just joined this company last Sept as an employee physician (2 years to partne...
by uvadk
Mon Mar 12, 2012 7:08 pm
Forum: Personal Finance (Not Investing)
Topic: Gifts to Employees - Tax Deductible?
Replies: 10
Views: 1643

Re: Gifts to Employees - Tax Deductible?

Thank you all for the replies on this. Yes, I am currently an employee physician within the practice (for the first 2 years) and I do get a W2. As such, these are technically not my employees at the moment (simply other employees within the practice). Sounds like this is not deductible for me? Excep...
by uvadk
Sun Mar 11, 2012 7:00 pm
Forum: Personal Finance (Not Investing)
Topic: Gifts to Employees - Tax Deductible?
Replies: 10
Views: 1643

Gifts to Employees - Tax Deductible?

All,

I am a physician who is currently employed by a private practice group. This past holiday, I gave approx $1k in gift cards to various employees in our practice. Is this amount deductible on my taxes? I have seen conflicting information on this.

Thank you in advance.
by uvadk
Sun Nov 20, 2011 8:01 pm
Forum: Personal Investments
Topic: Roth IRA Conversion question from young physician
Replies: 31
Views: 4366

Re: Roth IRA Conversion question from young physician

Thanks. My plan for now is to start with making the non-deductible IRA contributions, keep my TIRA, and work on improving the 401k. Assuming I am able to decrease the fees of the 401k and include low cost index funds, I will plan on rolling over the TIRA in the future and make the back door Roth con...
by uvadk
Fri Nov 18, 2011 6:19 pm
Forum: Personal Investments
Topic: Roth IRA Conversion question from young physician
Replies: 31
Views: 4366

Re: Roth IRA Conversion question from young physician

yes, that would be a good strategy. Make the non-deduct contribs now, but wait on the rollover. How long do you plan to work at this job? Thanks. Hopefully plan to be at this practice for a career (30 years?). Finding out more details about the plan....even higher fees than originally realized. Upw...
by uvadk
Thu Nov 17, 2011 6:32 pm
Forum: Personal Investments
Topic: Roth IRA Conversion question from young physician
Replies: 31
Views: 4366

Re: Roth IRA Conversion question from young physician

letsgobobby and RabbMD, Thank you very much for the info. Just found out the details on the ING 401k and they are not good. Mostly actively managed funds with expense ratios in the 0.9-1.4% range. I am certainly going to work on changing these funds/fees. However, assuming worst case scenario and I ...
by uvadk
Tue Nov 15, 2011 9:59 pm
Forum: Personal Investments
Topic: Roth IRA Conversion question from young physician
Replies: 31
Views: 4366

Re: Roth IRA Conversion question from young physician

Thank you for helping me to understand this issue. Will look into the ING 401k plan details before I consider rolling by TIRA into the new 401k next year. Will hold off on rolling the TIRA into a Roth this year at 28% marginal rate. Sounds like the general consensus is: -Go ahead with the $5k non-de...
by uvadk
Tue Nov 15, 2011 9:15 pm
Forum: Personal Investments
Topic: Roth IRA Conversion question from young physician
Replies: 31
Views: 4366

Re: Roth IRA Conversion question from young physician

yes to your first question, but why would you want to? Why not make 2 x $5000 non-deductible contributions to 2 TIRAs (call them IRAs 1 and 2) now, wait until next year, roll your original IRA (call it IRA 3) into your 401k, make 2 x $5000 non-deductible contributions to IRAs 1 and 2, then convert ...
by uvadk
Tue Nov 15, 2011 2:49 pm
Forum: Personal Investments
Topic: Roth IRA Conversion question from young physician
Replies: 31
Views: 4366

Re: Roth IRA Conversion question from young physician

EmergDoc, letsgobobby, Alan S, RabbMD, and Wannaretireearly, Thank you all for the helpful advice. What I have found so far: -our 401k is with ING. Yes, I can roll an IRA into the 401k. -not sure yet about fees, funds offered (though I am told they are only ING funds), etc. This would not start unti...
by uvadk
Mon Nov 14, 2011 5:53 pm
Forum: Personal Investments
Topic: Roth IRA Conversion question from young physician
Replies: 31
Views: 4366

Re: Roth IRA Conversion question from young physician

RabbMD, thanks for the reply. I am still finding out the details of my group's plan, but it appears to be a 401k.

At this point, would it make sense to convert to a Roth IRA? All/part/or none of the rollover IRA?

Thanks.
by uvadk
Mon Nov 14, 2011 7:05 am
Forum: Personal Investments
Topic: Roth IRA Conversion question from young physician
Replies: 31
Views: 4366

Re: Roth IRA Conversion question from young physician

Thanks for the advice.

Need to find out the specifics on retirement plan for the group. Will post.

The rollover IRA came from a 403b from residency.
by uvadk
Sun Nov 13, 2011 7:36 pm
Forum: Personal Investments
Topic: Roth IRA Conversion question from young physician
Replies: 31
Views: 4366

Roth IRA Conversion question from young physician

All, I am physician just starting out in practice and have a question for the group about whether or not to do a Roth IRA conversion this year. Here is my porfolio: Emergency funds: 6 mos Debt: 220k mortgage only at 4% Tax filing status: Single (currently) - will be married in 2012 Tax rate: 28% fed...
by uvadk
Thu Nov 03, 2011 6:48 pm
Forum: Personal Finance (Not Investing)
Topic: Received final 2% rewards from Schwab Visa
Replies: 100
Views: 11126

Re: Received final 2% rewards from Schwab Visa

EN61577, I inquired about that very possibility with the folks at Fidelity a few days ago. I never could get a straight answer. Just to be clear...you can get the Fidelity 2% AMEX with a Fidelity account? I had one of their reps say that you could setup a Fidelity cash management account (put the re...
by uvadk
Mon Oct 31, 2011 8:13 pm
Forum: Personal Finance (Not Investing)
Topic: Disability Insurance Advice for Physician
Replies: 32
Views: 2797

Re: Disability Insurance Advice for Physician

Thank you all very much for the advice. It is much appreciated. Will likely go with the level premium, 90 day EP. Failed to mention that I will be marrying a physician within the coming year. Would this change things for anyone as far as overall coverage amount, getting a policy for her (do we both ...
by uvadk
Sun Oct 30, 2011 8:38 pm
Forum: Personal Finance (Not Investing)
Topic: Disability Insurance Advice for Physician
Replies: 32
Views: 2797

Re: Disability Insurance Advice for Physician

One last question for the group... Would appreciate recommendations about going with a graded vs. level premium for my DI. Again, I am 33, just starting my practice, and expect to have a significant retirement account in the future. Currently no debt other than mortgage. What would you do in this si...
by uvadk
Sat Oct 29, 2011 9:33 am
Forum: Personal Finance (Not Investing)
Topic: med schools - prestige or economics?
Replies: 161
Views: 10901

Re: med schools - prestige or economics?

As an orthopedic surgeon, I could not agree more with EmergDoc and emp2b3. Medical school reputation is only one of many factors that residency program directors look at when evaluating potential applicants. This holds true even in competitive specialties like orthopedics. Here is a chart from a stu...