Search found 63 matches

by lovenox11
Sat Aug 20, 2016 6:44 pm
Forum: Personal Finance (Not Investing)
Topic: How should I manage relocation money from employer?
Replies: 6
Views: 792

Re: How should I manage relocation money from employer?

Carefreeap wrote:One thing to keep in mind is that your employer will also withhold as if you made that additional money every paycheck.
That's always a bit of a shock in terms of how low the net amount will be. You might be able to adjust your withholding for the rest of the year if you anticipate some big deductible expenses.
--can you explain what you mean that employer will withhold as if I made additional money every paycheck
--this relocation money will be given to me during November/December 2016 paycheck.
by lovenox11
Sat Aug 20, 2016 5:45 pm
Forum: Personal Finance (Not Investing)
Topic: How should I manage relocation money from employer?
Replies: 6
Views: 792

How should I manage relocation money from employer?

I'm making a move across the country with family and my employer (a hospital system) is providing $20k towards relocation. They told me it would be dispersed into two initial bi-weekly paychecks (both in 2016), and I can use it for whatever moving expenses are needed. This is nice, but I want to carefully consider how much of this money will actually be usable towards moving expenses. 1. At this point I'm treating this money as regular income and after taxes I will keep 70% (~$14k). --Or will I have to report this money differently during tax time? --Or will the employer tax it differently when dispersing it to my paycheck? 2. Then I plan to deduct moving expenses at tax time (such as movers, cost of shipping our car, cost of driving out th...
by lovenox11
Thu Dec 17, 2015 9:27 pm
Forum: Personal Investments
Topic: Current portfolio help and future directions
Replies: 8
Views: 1446

Re: Current portfolio help and future directions

GMan82 wrote:For my student loans, I have been in IBR for 5 years, and since I work at a university, I am likely eligible to apply for Public Service Loan Forgiveness for around this time in 2020.
I would be careful with assuming this. You may be part of a group but employed by a university.
The only true way to find out whether your current employment is eligible for PSLF is to submit PSLF Employee Certification Form.
https://studentaid.ed.gov/sa/sites/defa ... n-form.pdf

Sending this form in will also tell you whether your past years have qualified for PSLF. It will also cause all of your federal loans to be moved to FedLoan Servicing.https://myfedloan.org/
by lovenox11
Thu Jan 15, 2015 10:48 am
Forum: Personal Finance (Not Investing)
Topic: physician loan refi from ARM to Fixed Q
Replies: 0
Views: 267

physician loan refi from ARM to Fixed Q

I am a resident, like many others have a physician loan (5-1ARM at 2.875, original 200k, now with 188k balance).

I am planning to refinance to a fixed rate loan during last 6months of the ARM period (about 1yr from now). Likely into a 20yr or 15yr.
Has anyone gone through process of refinancing a physician loan?
Do I need to have 20% in equity before doing so?
Am I still eligible for no-cost refinance?
by lovenox11
Mon Dec 08, 2014 7:19 am
Forum: Personal Investments
Topic: STRS Ohio Choice - What to do?
Replies: 15
Views: 5683

Re: STRS Ohio Choice - What to do?

If you are in it for the long haul, I'd vote the DB option. Hard to beat that type of security when so much of your other savings may be subject to market fluctuations. I'm not sure how much security is there. The system was significantly underfunded which lead to big changes that are now in place (e.g. 20%/yr vesting, declining employer contribution, 5yr avererage for calculations). But more importantly the system is still underfunded and they stopped contributing to the healthcare fund. --the system is messed up and a bulk of baby-boomers has not yet retired. I'm not sure things will get any better once they do retire with their high 5yr salary averages, chronic medical problems on top of very high healthcare costs as it is. What if the ...
by lovenox11
Tue Dec 02, 2014 11:03 pm
Forum: Personal Investments
Topic: teacher retirement plans and 403/457 limits
Replies: 13
Views: 2801

teacher retirement plans and 403/457 limits

Are state retirement plans (for example STRS Ohio or CalPERS) separate from contribution limits of 401/403/457 plans?

For example teacher retirement system in ohio (STRS) has a defined contribution plan which requires employee to contribute 14% and employees 6% of the gross salary. Some employers offer 403b and 457b plans, so I assume that the 17.5k limits for these plans is in addition to the savings made to the defined contribution plan.
Also what is the total limit for employee + employees contributions 403/457 plans?

STRS Ohio: https://www.strsoh.org/_pdfs/brochurese ... 20-101.pdf
by lovenox11
Mon Jun 02, 2014 12:47 pm
Forum: Personal Finance (Not Investing)
Topic: Medical Residency Retirement - Why don't we get a match?
Replies: 57
Views: 10364

Re: Medical Residency Retirement - Why don't we get a match?

At Ohio State all residents (an faculty) are automatically enrolled in the STRS (state teachers retirement system of Ohio). We then have mandatory 12% withdrawn from our paycheck pre-tax (by 2016 this will be 14% as their retirement system is underfunded) and the hospital contributes 8% for a total of 20% savings rate. Everyone in STRS doesn't participate in social security though. You can enroll into a traditional pension plan (although you need to be with them for at least 5yrs) or into a defined contribution plan. I think this setup is very nice as it forces one to save and adjust their income to a lower paycheck due to money taken out for retirement account. I'm not sure if other big hospitals out there participate in such a setup. http...
by lovenox11
Tue Jan 07, 2014 1:06 pm
Forum: Personal Investments
Topic: $1M in debt
Replies: 49
Views: 17996

Re: $1M in debt

ERMD wrote:Thanks for the input. The loans are consolidated as direct loans, we're paying under IBR, and believe it or not, we're both currently working for 503 organizations, thus potentially eligible for PSLF in 6(me)/9(her) years. I should have mentioned this above.
PSLF starts from the time your consolidated direct loans enter IBR (and you are working for a 503 organization). Are the years you have left until you hit 10years in PSLF take this into account?
by lovenox11
Fri Nov 22, 2013 12:11 am
Forum: Personal Finance (Not Investing)
Topic: Stay put as mortgage slave or relocate?
Replies: 23
Views: 4064

Re: Stay put as mortgage slave or relocate?

Any thoughts of moving out of CA all together? Move to Texas, Arizona, Indiana, Ohio. Salary will be higher, homes 50% cheaper, all other expenses lower as well.
by lovenox11
Sun Nov 17, 2013 1:31 pm
Forum: Personal Finance (Not Investing)
Topic: Help with Med School Refinance
Replies: 17
Views: 2459

Re: Help with Med School Refinance

Hello Boglehead community, I am one year out of residency now and am struggling to make some long term sense of my student loans. I currently owe ~$600,000 through multiple lenders with an overall average interest rate of 5.6%. (ranging from 1.25% to 8.25%) I won't be able to pay this off until I'm about 60 years old, I'm 33 now. I earn ~$325,000 year I have an opportunity to refinance the total loan amount to a variable rate tied to the LIBOR OR a fixed rate somewhere in the 4-5% range What are your thoughts on the LIBOR tied refinance option? Do you think LIBOR will go up drastically in 2015 when the federal funds target rate is adjusted. please spare me from pointing out how horribly I financed medical school ( I am well aware). That is...
by lovenox11
Sun Nov 17, 2013 1:23 pm
Forum: Personal Consumer Issues
Topic: how much more expensive is a bigger home?
Replies: 68
Views: 8168

how much more expensive is a bigger home?

Any bogleheads with experience of upgrading from a medium size home (i.e. 4bedroom, 2bath, 2000-3000 sqfeet) to a much larger home (i.e. 4500-6000sqfeet)?
So far in a smaller home one can do everything on their own, but I imaging in much larger home there are expenses that I cannot even come to think of.

Besides the higher cost; what was the cost of owning a home like this?
by lovenox11
Sun Oct 13, 2013 7:04 am
Forum: Personal Investments
Topic: Open Source Stanford Finance of Retirement and Pensions Cour
Replies: 4
Views: 1189

Open Source Stanford Finance of Retirement and Pensions Cour

This was on NYTimes article. But the course is starting tomorrow. Taught at graduate level though Stanford.

http://online.stanford.edu/course/rauh-finance
by lovenox11
Tue Aug 27, 2013 3:33 pm
Forum: Personal Consumer Issues
Topic: Childcare costs
Replies: 43
Views: 5355

Re: Childcare costs

We are both working parents; have two kids under 3yo. Our monthly childcare cost is $1,900.00/mo. This takes out a huge chunk of our paycheck; more than the mortgage. What is the experience of others on this forum with childcare costs? At what point do these costs go down? Op - out of curiosity, what's your location and what's included in "childcare costs"? Ohio; childcare is live-in nanny. Includes working some weekends, at times till 7pm; grocery shopping; taking to medical appointments if needed. The biggest drawback of daycare to me is in case kids get sick and needing to take time off. I also think that taking an infant into 4:1 ratio is subjecting your child to low level of care no matter how expensive the place is.
by lovenox11
Tue Aug 27, 2013 1:16 pm
Forum: Personal Consumer Issues
Topic: Childcare costs
Replies: 43
Views: 5355

Childcare costs

We are both working parents; have two kids under 3yo. Our monthly childcare cost is $1,900.00/mo. This takes out a huge chunk of our paycheck; more than the mortgage.

What is the experience of others on this forum with childcare costs? At what point do these costs go down?
by lovenox11
Tue Aug 13, 2013 3:13 pm
Forum: Personal Finance (Not Investing)
Topic: Student Loan Transfers
Replies: 14
Views: 4047

Re: Student Loan Transfers

Since Direct Loan system was started when interest rates were already high (6.8% fixed for grad students) and all rates were fixed I'm not sure how you can have 2.3% variable loan.

In any case the best resource is to contact Federal Student Loan Ombudsman:
https://studentaid.ed.gov/repay-loans/d ... -ombudsman
by lovenox11
Mon Aug 12, 2013 12:38 pm
Forum: Personal Finance (Not Investing)
Topic: Physician(s) changing Jobs - Advice
Replies: 25
Views: 4785

Re: Physician(s) changing Jobs - Advice

We were not looking for new jobs but my offer came from the Healthcare System I trained at and is in a very nice area and will likely offer less stress then current position. It is an employed job with a generous guaranteed salary and nice bonus potential. Good benefits. Less clinical hours then the current position I am in with more freedom to change and adjust schedule for self and for patient access (start later and have evening hours, etc). My wife was then offered a position in the same health system which would increase her salary as well but benefits are not as good as she currently has. Money is not the main factor in our decisions but is relevant. I think you have already made the decision. I would choose lifestyle over slightly h...
by lovenox11
Wed Aug 07, 2013 3:05 pm
Forum: Personal Investments
Topic: actually rebalancing your 401k/401a
Replies: 5
Views: 653

actually rebalancing your 401k/401a

I have done my first ever rebalance of retirement account and had some concerns. All of my investements are in 401/roth plans. I have goal to rebalance every summer. Currently had the following : large cap: 47.2% (desired 45%) small cap: 5.46% (desired 5%) Intl: 20.15% (desired 20%) bond: 27.12% (desired 30%) My plan allows the option to enter my desired alocation and rebalancing is done. This is the way I did it; just entered 45/5/20/30. I am concerned that this may not be an efficient way, and that I may even loose money. I know people advocating purchasing extra funds in the funds bellow alocation (such as my 27% bonds). Then there is an issue of limited number of alocation changes in a 401 plan. How do you handle your rebalancing in you...
by lovenox11
Sun Jul 28, 2013 8:58 pm
Forum: Personal Investments
Topic: Anyone investing in both Ohio OPERS and Ohio457?
Replies: 4
Views: 1427

Re: Anyone investing in both Ohio OPERS and Ohio457?

It looks like there was substantial reform of the OPERS system (mainly the traditional pension part).
The one thing affecting defined contribution is vesting, which is now 20%/yr with 100% vested in five years.
https://www.opers.org/News/ORSC/changes.shtml
by lovenox11
Sun Jul 28, 2013 1:56 pm
Forum: Personal Investments
Topic: Anyone investing in both Ohio OPERS and Ohio457?
Replies: 4
Views: 1427

Anyone investing in both Ohio OPERS and Ohio457?

Would like to hear experience of those investing in OPERS and Ohio457 as I am potentially looking to work in the state system.
Their funds look quite good and expense ratios are low.
I'm looking to setup a 3 fund portfolio using both plans.
I plan to contribute max to each fund/year and then potentially into taxable.

OPERS:
funds: https://www.opers.org/investments/defin ... iles.shtml
expense ratios: https://www.opers.org/pdf/investments/e ... f#zoom=100
*note there is a 0.1% account management fee in addition to above expenses

Ohio457:
funds: https://www.ohio457.org/iApp/ret/cmd/Re ... &pageNum=2
by lovenox11
Fri May 17, 2013 3:26 pm
Forum: Personal Investments
Topic: STRS Ohio reducing annual fees
Replies: 0
Views: 474

STRS Ohio reducing annual fees

STRS Ohio Defined Contribution plan has announced reduction in anual fees (see bellow). They also started offering target funds (STRS Target Choice 2020,2025,2030,2035,2040,2045,2050) & a new fund called STRS Russel Midcap Index Return. STRS Money Market choice: new fee: 0.10 (old 0.18) STRS Barclays U.S. Universal Bond INdex Return: new fee 0.15 (old 0.20) STRS Large-Cap Core Choice: fee did not change; still at 0.30 STRS Russell 1000 Index Return: new fee 0.10 (old 0.18) STRS Russel Midcap Index Retur: this is the new fund for 2013 (fee 0.10) STRS Russell 2000 Index Return: new fee 0.10 (old 0.20) STRS REIT Choice: fee unchanged; stil at 0.50 STRS MSCI Wolrd ex USA Index Return: new fee 0.20 (old 0.40) There are changes in employer ma...
by lovenox11
Sat May 04, 2013 3:18 pm
Forum: Personal Consumer Issues
Topic: Does your home have solar panels?
Replies: 77
Views: 8957

Does your home have solar panels?

The prices are coming down; just wondering how many of you out there have installed solar panel systems in your homes?
I'm interested sometime in the future to have big-enough system to power the house and charge a plug-in vehicle.
by lovenox11
Tue Apr 30, 2013 1:57 pm
Forum: Personal Finance (Not Investing)
Topic: cost of inground pool (Florida)
Replies: 2
Views: 758

cost of inground pool (Florida)

Anyone with experience of owning a home with inground pool (Florida in particular).
For example here is a home in Bradenton, FL (http://www.zillow.com/homedetails/12338 ... 0208_zpid/)

How much does it cost per year to have inground pool in florida outside the home (single family home <3000sqfeet): (water, energy to heat it, maintenance, increased cost of home-owners)?
by lovenox11
Tue Apr 02, 2013 8:48 pm
Forum: Personal Finance (Not Investing)
Topic: appropriately designating beneficiaries for term life ins
Replies: 13
Views: 1153

appropriately designating beneficiaries for term life ins

I'm deciding how to designate beneficiaries on my term life policy. I would like my wife to be 1st to get 100%, but I also want to add my kids in case they are next in line.
The agent told me not to list kids under 18yo because the payout will go to the state and the state will give out this money to the child. Instead I was advised to go with a relative.

How do you list your children so that if something does happen and they are the ones receiving the money they will have access to it in a fair way?
by lovenox11
Mon Mar 25, 2013 7:08 pm
Forum: Personal Finance (Not Investing)
Topic: arranging W4 withholdings among two incomes
Replies: 6
Views: 812

arranging W4 withholdings among two incomes

We are eligible for 4 W4 withholdings. We have identical incomes.

Does it matter how one arranges the W4 withholdings? For example, should I claim all 4 from my check? Or divide evenly with 2 for me and 2 for her?
by lovenox11
Wed Mar 13, 2013 12:29 pm
Forum: Personal Investments
Topic: STRS Ohio
Replies: 4
Views: 762

Re: STRS Ohio

Sure, its nice to be doing shift-work. Much better life-work balance.
by lovenox11
Tue Mar 12, 2013 10:13 pm
Forum: Personal Investments
Topic: 28, new to investing, what would you do with my 3k tax retur
Replies: 12
Views: 1742

Re: 28, new to investing, what would you do with my 3k tax r

I would put that money into an emergency fund. I'm sure things will need to be fixed in that house in the next 4 years.

Just curious, why didn't your parents give you that money to pay off your student loans instead of buying a car and a house?
by lovenox11
Tue Mar 12, 2013 10:06 pm
Forum: Personal Investments
Topic: STRS Ohio
Replies: 4
Views: 762

STRS Ohio

Anyone out there investing through STRS Ohio (https://www.strsoh.org/)

Why is the site of such poor quality. It doesn't show anything except your funds, and growth for some unspecified period.
No option to make graphs, see trends like that with Vanguard and any other investment site.
These state pension systems have a ton of money, why is their user website 10 years old?
by lovenox11
Sat Mar 02, 2013 4:06 pm
Forum: Personal Finance (Not Investing)
Topic: Tracking credit card spending
Replies: 32
Views: 2569

Re: Tracking credit card spending

I use my own excel spreadsheet. The biggest advantage is the portability and customization.

I save it into gmail or google docs and have access from any computer.
by lovenox11
Sat Mar 02, 2013 1:19 pm
Forum: Personal Finance (Not Investing)
Topic: Is Med School still a good financial investment?
Replies: 123
Views: 14553

Re: Is Med School still a good financial investment?

There is a tone on this thread that only physicians take out large student loans. More importantly perception of student loan burden that is disproportional to income. That is simply not the case.
How much do you think your engineering or comp sci or polit sci undergrads take out? I know plenty of those with 50-100k in student loans and they are looking at starting careers of 40k. Those are the ones that we need to be discussing and worrying about. Not the resident/young attending who are starting at 120k (and thats a low range) and are having loan repayment as part of their job offer.
by lovenox11
Sat Mar 02, 2013 11:45 am
Forum: Personal Finance (Not Investing)
Topic: Is Med School still a good financial investment?
Replies: 123
Views: 14553

Re: Is Med School still a good financial investment?

I think medicine is a great career that is dynamic and very interesting and pays well than most fields. You are basically guaranteed a starting six figure salary (at least 120k) after you finish residency. Also, residency is not bad as you get at least 50k with full benefits. In the real world yes you will be working by 22yo as a new grad. But getting to a position in your company with $100+k salary is quite a challenge, especially with all the senior people up top. Also the higher earning individuals (mid-level managers and higher) are likely to get the ax. An example is the recent job cuts in Westinghouse Nuclear after demand for work went down following japan accident (http://nuclearstreet.com/nuclear_power_industry_news/b/nuclear_power_...
by lovenox11
Wed Feb 27, 2013 8:09 pm
Forum: Personal Finance (Not Investing)
Topic: What now?
Replies: 14
Views: 2328

Re: What now?

Well, what about paying the student loan debt in a 10year repayment plan and aggressively investing the rest. Since we are all investors with long-term goals in mind wouldn't it make sense to invest as much as possible in the beginning? What I'm saying is heavily saving in the first 5 years will provide greater earnings in the long term and make up for the interest paid for that slower student loan repayment.
by lovenox11
Sat Jan 26, 2013 12:40 pm
Forum: Personal Finance (Not Investing)
Topic: Financing medical school. Age 34, some savings.
Replies: 63
Views: 9425

Re: Financing medical school. Age 34, some savings.

I'm currently a resident and here is some useful advise (from the front-lines so to speak) Medicine is THE BEST FIELD IN USA. Why? 1. Guaranteed 6-figure salary 2. Best loan repayment opt ions -PSLF vs Underserved area work vs Private hospital contracts with repayment terms vs Military -It is quite ironic that those that need options for loan repayment the least get the most lucrative options. -There is no other professional field (law, engineering, business) that will have such loan repayment options. 3. Flexibility want to work 4 days per week? Or Two-weeks on and two weeks off and get paid $200k? -in other professional fields you will be forced to do the 8-5 grind day in and day out -the poster who said he works 1day per week is a perfec...
by lovenox11
Sat Jan 26, 2013 12:26 pm
Forum: Personal Finance (Not Investing)
Topic: How much do you expect your kids to pay for college?
Replies: 237
Views: 37056

Re: How much do you expect your kids to pay for college?

None. I fully believe kids need to be taught financial responsibility at a young age, and should work and save while in their high school years and during summer breaks as well as paying your way thru college with part-time work. Studies show kids that pay their own way through school take their education more seriously (since it's their money and loans) and are more financially disciplined through life. They can also attend school in their own hometown for a yr or two (to get in their liberal studies credits in) after high school and live at home for "free" before transferring to another college. This is how I did it... It's impossible to save up $100k to pay for college as a high school student. A lot of comments here come from...
by lovenox11
Sat Jan 26, 2013 12:22 pm
Forum: Personal Finance (Not Investing)
Topic: How much do you expect your kids to pay for college?
Replies: 237
Views: 37056

Re: How much do you expect your kids to pay for college?

They will probably pay 30k/yr; total of 120k

But I will not pay for them. I will do everything to set them up academically to succeed (i.e. good middle/HS helping them get scholarships). Then they will take out loans to cover the rest and learn financial responsibility of having debt.
by lovenox11
Sun Nov 25, 2012 8:31 pm
Forum: Personal Finance (Not Investing)
Topic: how to save on healthcare expenses
Replies: 7
Views: 1350

how to save on healthcare expenses

I'm in my 20s and started working for a company. My health plan deductible is $260/mo (for family) and gets deducted pre-tax from paycheck. Then I have to pay 10% of all visits/hospital stays. I have a $2k deductible. I'm trying to figure out how I can save money on the copays I'm paying out (including dental expenses, glasses, and co-pays) about $300-400/yr. [1] What is the tax advantage of putting money into an FSA or HSA? -I thought I can deduct medical expenses no matter what. Am I saving money on taxes twice? [2] Do I open a FSA? Put money into it that I expect to save and then submit for deductions? -one negative is any unused money is lost at end of year [3] Do I open a HSA? -here I won't loose money at end of year and can use the le...
by lovenox11
Mon Nov 12, 2012 12:50 pm
Forum: Personal Investments
Topic: Ohio State STRS or ARP??
Replies: 7
Views: 2844

Re: Ohio State STRS or ARP??

I'm at OSU as well and I went with STRS DC plan. It has all the advantages of early vesting and takes away risk of not staying at OSU before 5yrs are over.
Also, the new reform carries a yearly 1% increase from employee. Currently its 10%, and in 4yrs wil be 14%.

My questions is this. I currently have this portfolio:
45% R1000
5% R2000
20% MSCI (international fund)
30% Barclay US Univ bd (bond fund)

Is my R1000 & R2000 % provide for good diversity?

Also,
Is there any advantage in going with "STRS Large-Cap Choice" vs R1000


Investment options: https://www.strsoh.org/new/2b02b.html
by lovenox11
Sat Oct 06, 2012 6:28 pm
Forum: Personal Finance (Not Investing)
Topic: Student Loan Forgiveness Program for physicians
Replies: 14
Views: 3117

Re: Student Loan Forgiveness Program for physicians

I'm currently a resident and also plan to utilize PSLF. Here are some caveats that should be known: [1] You need to be in IBR each year -print out statements for each year showing your loans are in IBR [2] When you apply for PSLF you need to be employed by a non-profit; and when you receive loan forgiveness you need to be employed by a non-profit [3] Mail in your PSLF application every year in residency They will then tell you how many months/years you have been under PSLF This also serves as proof when you go to apply for forgiveness [4] Make a copy of employment contract for each year to prove you were in non-profit employment In my opinion the toughest thing would be meeting all the above requirements and also making sure you have all th...
by lovenox11
Tue Sep 04, 2012 5:51 pm
Forum: Personal Finance (Not Investing)
Topic: your working life earnings and retirement amount
Replies: 5
Views: 1649

your working life earnings and retirement amount

I'm <30yo and would like to hear form those that are retired. Looking at your worklife earnings how much were you able to retire on?
What were your earnings from 30yo to 60/65yo? What % of your salary did you retire on?
Were you able to retire on time?
Any early retirees? For early retirees, what was your savings rate?
Thanks
by lovenox11
Sat Sep 01, 2012 9:58 pm
Forum: Personal Finance (Not Investing)
Topic: Newer Attending Physician In Need of Your Expertise!
Replies: 57
Views: 8549

Re: Newer Attending Physician In Need of Your Expertise!

Hello there. My wife and I are currently residents in a 4 year program. We have no family/friends in the area and have a 12month old child. We have a total of $435k @6.8% fixed government loans and own a $200k home (zero down & 5-1ARM @ 2.875%). Our monthly mortage (including taxes & insurance) is $1250/mo. We have a combined income of $100k and made it work by keeping expenses low, and at this point putting our loans into IBR (basically paying almost nothing) [1] Minimize everything For example; your utilities are $500/month; Why so much? . A. Get rid of cable. Just keep the internet (we have $30/mo) B. Buy your own internet modem (otherwise you get charged a monthly fee to rent from the cable company) C. Change lightbulbs to effic...
by lovenox11
Fri Aug 24, 2012 9:27 pm
Forum: Personal Investments
Topic: advice on Ohio State Univ Retirement Plan options
Replies: 30
Views: 10025

Re: advice on Ohio State Univ Retirement Plan options

I decided to go with Defined Contribution Plan. The main reason for this is that there are many changes coming in the state teachers retirement system. The system is basically broke, and they are doing everything possible to reduce payouts. Their funding period used to be 41.2years; and currently the unfunded liability doubled to $36.6billion and funding period is "infinite". For example, they are changing the calculation of final retirement benefit from three highest years of earnings to Five highest years. They are reducing COLA, and COLA won't kick in for 5years after retirement. They are changing rules for getting benefits; so it used to be with 5 years of service you can get them at 60yo, now its at 65yo. Currently we contrib...
by lovenox11
Mon Jul 30, 2012 7:12 pm
Forum: Personal Finance (Not Investing)
Topic: Resident Physician - need of major help.
Replies: 75
Views: 12327

Re: Resident Physician - need of major help.

Its always nice to see posts by residents, because many of us make such simple mistakes at the beginning of training. I'm just starting my training and thanks to whitecoatinvestor and this site I'm beginning to organize my financial life. We have 6mo emergency fund. We contribute 20% of our income (actually at my program in Ohio State we are forced to contribute 10% of income and the employeer matches that 100%; actually by 2015 we will be forced to contribute $13% of our salary). That is sitting in a 30/70 bonds/stocks index fund portfolio 403(a). In 4 years we should have $80k in there. We consolidated all of our government loans into one large loan serviced by the dept of education, which makes it much easier to keep track of loans. BTW ...
by lovenox11
Fri Jul 13, 2012 10:39 pm
Forum: Personal Investments
Topic: advice on Ohio State Univ Retirement Plan options
Replies: 30
Views: 10025

Re: advice on Ohio State Univ Retirement Plan options

So i'm now at OSU and making the decision with what plan to choose: It seems that Combined Plan may be a good option. Because I start the clock going for defined benefit (my residency is 4 years). So if I stay on for a few more years after that I may be eligible for some good benefits at age 60. But if I leave after 4 years, with combined plan I don't get any of the match. But with defined contribution I will get the entire match. It seems to me that doing the combined plan provides some security and is worth it, even if there is a chance I won't get the match if I leave after residency. Anyone make this decision? [1] Defined Benefit Traditional pension, with pension, survivor benefits, disability, health insurance *Making this selection lo...
by lovenox11
Sun May 06, 2012 4:14 pm
Forum: Personal Finance (Not Investing)
Topic: take lower selling price or higher price + closing costs
Replies: 1
Views: 413

take lower selling price or higher price + closing costs

I'm a new home buyer and I have a decision to make.

Option A: buy at $200k with 3k closing costs
Option B: buy at $197k with 0 closing costs

In my mind Option B is better because going forward there will be less property taxes to pay. The tradeoff is I have to use 3k of my money.

What other considerations are there in a choice like this?
by lovenox11
Mon Mar 19, 2012 7:09 pm
Forum: Personal Investments
Topic: advice on Ohio State Univ Retirement Plan options
Replies: 30
Views: 10025

Re: advice on Ohio State Univ Retirement Plan options

Ok thanks for the above advise. I looked at the STRS vs ARP option again. The STRS (defined contribution option) has one big advantage; in the 5th year you get another chance to change your plan type (so can change it to defined contribution or ARP or keep the same). Having such flexibility may make enrolling into STRS (defined contribution option) a good choice. On the other hand going with ARP locks you into that plan without any future option to change. My question is how to setup asset alocation with the given STRS funds. I would like to do 70/30 (equity/bonds). Is doing STRS Russel 2000 Index +STRS MSCI World ex USA Index + STRS Barclays Capital U.S. Universal Bond Index diverse enough? The available funds are: STRS Money Market STRS B...
by lovenox11
Sun Mar 18, 2012 8:24 pm
Forum: Personal Investments
Topic: advice on Ohio State Univ Retirement Plan options
Replies: 30
Views: 10025

Re: advice on Ohio State Univ Retirement Plan options

Having done that you probably have a whale load of student loans to work away on, remember generally paying off student loans (having done the 10% into your DC scheme) is a very good way of 'investing' (I am assuming here that your loans are not at 2-3%, then it becomes trickier, the breakeven point is probably around 5% interest rate-- 5% or above it pays to repay (we've had long debates about this, I shall stick with this general advice, aware that others may differ)). If it helps to understand my logic, for every $1 of loan you have, over 14.5 years you will pay another $1 of interest and out of after tax money potentially if at 5% interest rate (9 years at 8%, 24 years at 3%). So every $1 you pay off early can save you another $1 of in...
by lovenox11
Sat Mar 17, 2012 9:15 pm
Forum: Personal Investments
Topic: advice on Ohio State Univ Retirement Plan options
Replies: 30
Views: 10025

Re: advice on Ohio State Univ Retirement Plan options

You have basically two choices. STRS and ARP. STRS is defined benefit, means you are guaranteed certain payout at some combination of age and number of years in system. If you plan on staying in Ohio for 5 years or more, I would suggest you join STRS. Its a good deal and peace of mind. When stock market took dive in 2008, that defined benefit looked great. In your ARP you have Fidelity so you can use index funds. In ARP you are shouldering all the risk and rewards. Main decision is up to you, do you plan on atleast 5 years in Ohio STRS system during your career than you choose. Good luck. I'm currently 26, and I expect to be moving around from job to job quite a bit. I am leaning towards ARP mainly because it is almost impossible for me to...
by lovenox11
Sat Mar 17, 2012 6:59 pm
Forum: Personal Investments
Topic: advice on Ohio State Univ Retirement Plan options
Replies: 30
Views: 10025

Re: advice on Ohio State Univ Retirement Plan options

pdc3610 wrote:How long is your residency?
What is the vesting schedule for each?
Do you plan on staying for a fellowship after residency?

If you are doing a 3 year residency and the vesting schedule is 5 years for one and immediate for the other then the "free money" associated with the company match/vesting schedule will likely outweigh any benefit of lower fees between plans.

My residency is 4 years. At this point I'm planning to just do residency there. Who knows what the job prospects will be like.
I think I am vested after 1 year or immediately.

I already worked enough to get social security benefits, so I don't see why its a concern not to pay in during my residency years.
by lovenox11
Sat Mar 17, 2012 11:04 am
Forum: Personal Investments
Topic: advice on Ohio State Univ Retirement Plan options
Replies: 30
Views: 10025

advice on Ohio State Univ Retirement Plan options

I will be joining Ohio State University this summer for residency. I have been looking through their benefits plan and I'm a bit overwhelemed by their options. -I don't have to pay social security taxes, and I have an option to enroll into the plans bellow. The options are: [1] State Teachers Retirement System of Ohio (STRS) -this has a define benefits, defined contribution, combined plans -seems like they have their own investment manager, and I can't find their expense ratios. -need to commit 10% of income with 10.5%(of gross income) match [2] Alternative Retirement Plan (ARP) -need to commit 10% of income with 10.5%(of gross income) match -looks like you choose your ARP provider and buy fund form them ( Vanguard is not an option ) [3] Su...
by lovenox11
Thu Feb 23, 2012 9:31 pm
Forum: Personal Finance (Not Investing)
Topic: Interesting analysis for physicians: MDs deceptive income
Replies: 119
Views: 13587

Re: Interesting analysis for physicians: MDs deceptive incom

I'm finishing up medical school and I find that this analysis is missing a crucial point: there are many options available to have someone else pay for your medical school loans (than any other profession). Looking at the numbers it is as if the author is manipulating the data to make being a doctor a bad financial decision. There are many options: [1] hospitals have re-payment contracts if you sign up for 2-4 years [2] Underserved areas have loan repayment through government ( National Health Service Corps : http://nhsc.hrsa.gov/). [3] Public Service Loan Forgiveness (http://studentaid.ed.gov/PORTALSWebApp/students/english/PSF.jsp) where loans are forgiven after 10years of payments. [4] Large sign-on bonuses [5] Moonlighting opportunities ...
by lovenox11
Sun Feb 12, 2012 10:11 am
Forum: Personal Investments
Topic: have an old custodial account but no certificate
Replies: 5
Views: 492

Re: have an old custodial account but no certificate

livesoft wrote:My advice is to pay the fee and stop this sore from festering. Just get it over with.
Yeah, it is becoming a big headache. My wife cannot sell it herself, but she keeps geting the dividend checks each month ( a tiny amount) and then 1099 forms on it.
Paperwork is paperwork, unless you have a careful filing system things are bound to get lost 20 years down the road.
The stock is a Pepsico stock.

I want to sell it and use the money towards opening a Vanguard Roth for my wife. But I don't have much say in making him sell it.