New Dual Physican Couple

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Toasterthief
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New Dual Physican Couple

Post by Toasterthief » Mon Oct 01, 2018 2:28 pm

My wife and I are about to get married and I have some questions about the best way to save. We're both in our early/mid 30s and just beginning medical practice. We're both in academics with a relatively low salary for our respective fields and limited investment options (no mega backdoor Roth, etc).

Income: 650k combined
Current retirement savings: Me: 75k Her: 80k
My investments are currently in Vanguard with a 4-fund portfolio split between my employer account, Roth, taxable account, and HSA. She has a fidelity account from a previous employer and an account with Prudential. Her investments were "helpfully" selected by Prudential and in funds that have relatively high ERs (I'll be changing this).

Our plan is to save 20% of our income (120k per year) for retirement and pay down our medical school loans ASAP (especially one of hers at 8.75%). My question is how to best allocate that 120k of savings per year. Should I just keep it simple and put it all in to Roth/Employer/taxable accounts? Is there anything we should do instead?

jehovasfitness
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Re: New Dual Physican Couple

Post by jehovasfitness » Mon Oct 01, 2018 2:31 pm

Details on loan amounts?

Toasterthief
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Re: New Dual Physican Couple

Post by Toasterthief » Mon Oct 01, 2018 2:33 pm

Mine:
14393 5.46%
186364 6.51 (government loan, eligible for forgiveness in 4 more years)
12997 3.5%

Hers:
25347 8.75% (The loan I want to take care of before the new year)
66434 6.55 (The loan after)
201418 6.5 (Technically eligible for forgiveness, but she didn't start the process in residency/fellowship...shame)

deltaneutral83
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Re: New Dual Physican Couple

Post by deltaneutral83 » Mon Oct 01, 2018 2:44 pm

Toasterthief wrote:
Mon Oct 01, 2018 2:33 pm
Mine:
14393 5.46%
186364 6.51 (government loan, eligible for forgiveness in 4 more years)
12997 3.5%

Hers:
25347 8.75% (The loan I want to take care of before the new year)
66434 6.55 (The loan after)
201418 6.5 (Technically eligible for forgiveness, but she didn't start the process in residency/fellowship...shame)
That is a boatload of debt at 6.5% and higher. Investing up to the match and then killing the debt is a fine strategy. In fact, I'd love to be getting a guaranteed 6.5% rate of return on my investments for the next few years and call it a day.

bgf
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Re: New Dual Physican Couple

Post by bgf » Mon Oct 01, 2018 2:44 pm

Toasterthief wrote:
Mon Oct 01, 2018 2:33 pm
Mine:
14393 5.46%
186364 6.51 (government loan, eligible for forgiveness in 4 more years)
12997 3.5%

Hers:
25347 8.75% (The loan I want to take care of before the new year)
66434 6.55 (The loan after)
201418 6.5 (Technically eligible for forgiveness, but she didn't start the process in residency/fellowship...shame)
i would say that beyond any match that you get, you should pay off all loans above 6%. the 5.46% is negotiable, though you should probably just pay that one off too. don't worry about paying off the 3.5% before investing.

the reason is simple. these returns are risk free. you may get 6+% in the market or you may not. either way though, the only reason you'll be earning that excess return, if you get it at all, is because of the risk you are taking. with your loans, you'll be earning over 6% with a certainty.
“TE OCCIDERE POSSUNT SED TE EDERE NON POSSUNT NEFAS EST"

MiddleOfTheRoad
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Re: New Dual Physican Couple

Post by MiddleOfTheRoad » Mon Oct 01, 2018 2:48 pm

At those rates for the loans, pay off all debts first before even thinking about investing. Unless the market drops 30-50% then I would consider putting half the money towards investing in a taxable account.

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Toons
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Location: Hills of Tennessee

Re: New Dual Physican Couple

Post by Toons » Mon Oct 01, 2018 2:52 pm

pay down our medical school loans ASAP

With laser like focus

:happy
"One does not accumulate but eliminate. It is not daily increase but daily decrease. The height of cultivation always runs to simplicity" –Bruce Lee

Nate79
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Re: New Dual Physican Couple

Post by Nate79 » Mon Oct 01, 2018 2:56 pm

Toons wrote:
Mon Oct 01, 2018 2:52 pm
pay down our medical school loans ASAP

With laser like focus

:happy
+1000

1. Invest up to the match
2. Pay off loans (2 years)
3. Keep budget extremely low - don't get docitus.
4. Get all proper insurance in place and make sure you stay away from the permanent life insurance scam products.

Toasterthief
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Joined: Tue Feb 21, 2017 10:35 am

Re: New Dual Physican Couple

Post by Toasterthief » Mon Oct 01, 2018 2:59 pm

Thanks everyone, I guess the last few years of the market have made me think that investing may be the better route as long as the loans are below 7-8% or so. It sounds like everyone is unanimous in agreeing to pay off her med school debt ASAP?

jehovasfitness
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Re: New Dual Physican Couple

Post by jehovasfitness » Mon Oct 01, 2018 3:02 pm

I'd pay off those loans beyond the match yes.

And not that anyone can predict but if my money was on a deep drop within 2 years... well. It kind of is lol

SelfEmployed123
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Re: New Dual Physican Couple

Post by SelfEmployed123 » Mon Oct 01, 2018 3:05 pm

Toasterthief wrote:
Mon Oct 01, 2018 2:59 pm
Thanks everyone, I guess the last few years of the market have made me think that investing may be the better route as long as the loans are below 7-8% or so. It sounds like everyone is unanimous in agreeing to pay off her med school debt ASAP?
You should check out the White Coat Investor. Both the blog at https://www.whitecoatinvestor.com and the book. There is tons of financial advice that I think you'll find useful.
"Get what you can, and what you get hold, 'Tis the stone that will turn all your lead into gold." | -Benjamin Franklin

Toasterthief
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Re: New Dual Physican Couple

Post by Toasterthief » Mon Oct 01, 2018 3:07 pm

SelfEmployed123 wrote:
Mon Oct 01, 2018 3:05 pm
Toasterthief wrote:
Mon Oct 01, 2018 2:59 pm
Thanks everyone, I guess the last few years of the market have made me think that investing may be the better route as long as the loans are below 7-8% or so. It sounds like everyone is unanimous in agreeing to pay off her med school debt ASAP?
You should check out the White Coat Investor. Both the blog at https://www.whitecoatinvestor.com and the book. There is tons of financial advice that I think you'll find useful.
Thanks, I read WCI quite a bit (although his political views coming through gets annoying).

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bligh
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Re: New Dual Physican Couple

Post by bligh » Mon Oct 01, 2018 3:10 pm

Toasterthief wrote:
Mon Oct 01, 2018 2:59 pm
Thanks everyone, I guess the last few years of the market have made me think that investing may be the better route as long as the loans are below 7-8% or so. It sounds like everyone is unanimous in agreeing to pay off her med school debt ASAP?
Yes. I would max out the pretax/tax advantaged first, but after that every penny would go towards paying off the student loans. Nothing in taxable except for a small cash reserve... I would also hold off any lifestyle inflation until those loans were paid off.

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goodenyou
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Re: New Dual Physican Couple

Post by goodenyou » Mon Oct 01, 2018 4:17 pm

Pay off loans ASAP. If I added correctly, you have $500,000 of loans between the two of you. You won’t find many jobs that you can find that will afford you the ability to pay them off. Many things can happen. I wouldn’t compound my indebtedness with anything else at this time. You don’t want to be in a deep hole ”betting on the come”, especially in today’s medical financial environment. I was there 25 years ago. Best thing I ever did was to hammer away my debt. I had much more clarity of thought and feeling of freedom after they were all paid off. Stay away from stupid doctor schemes.
"Ignorance more frequently begets confidence than does knowledge" | "The best years you have left are the ones you have right now"

Carol88888
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Re: New Dual Physican Couple

Post by Carol88888 » Mon Oct 01, 2018 5:13 pm

I'd keep it really simple and put all of the $120,000 into either the S&P 500 or the total stock market index ETF, VTI. You can't lose with either of these. Forget bonds. You are young enough to ride out the swings.

And congratulations on the income. It can make you really wealthy down the road.

Clemblack
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Re: New Dual Physican Couple

Post by Clemblack » Mon Oct 01, 2018 5:37 pm

Why is OP's occupation relevant?

I've noticed that physicians on this website tend to state their profession. It's interesting to me.

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Duckie
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Re: New Dual Physican Couple

Post by Duckie » Mon Oct 01, 2018 5:57 pm

Clemblack wrote:Why is OP's occupation relevant?
New doctors often have massive amounts of debt but have (or will soon have) very high incomes. They are also targets of financial salesmen.

Toasterthief
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Re: New Dual Physican Couple

Post by Toasterthief » Mon Oct 01, 2018 6:00 pm

Clemblack wrote:
Mon Oct 01, 2018 5:37 pm
Why is OP's occupation relevant?

I've noticed that physicians on this website tend to state their profession. It's interesting to me.
To explain why we're in our early 30s with massive debt and insignificant retirement savings?

Clemblack
Posts: 23
Joined: Sun Jan 21, 2018 1:19 pm

Re: New Dual Physican Couple

Post by Clemblack » Mon Oct 01, 2018 6:08 pm

Toasterthief wrote:
Mon Oct 01, 2018 6:00 pm
Clemblack wrote:
Mon Oct 01, 2018 5:37 pm
Why is OP's occupation relevant?

I've noticed that physicians on this website tend to state their profession. It's interesting to me.
To explain why we're in our early 30s with massive debt and insignificant retirement savings?

Your post is titled "New Dual Physician Couple," and it doesn't mention "massive debt." I'm still not sure why the occupation would be relevant, and I simply pointed out that it's interesting that physicians seem to have a tendency to mention what they do for a living.

jehovasfitness
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Re: New Dual Physican Couple

Post by jehovasfitness » Mon Oct 01, 2018 6:35 pm

Toasterthief wrote:
Mon Oct 01, 2018 6:00 pm
Clemblack wrote:
Mon Oct 01, 2018 5:37 pm
Why is OP's occupation relevant?

I've noticed that physicians on this website tend to state their profession. It's interesting to me.
To explain why we're in our early 30s with massive debt and insignificant retirement savings?
That would have been my guess.

Cause if I'm just reading a couple makes 650k and have half million on student loans, while I may assume they're doctors. It at least satisfies curiosity

WanderingDoc
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Re: New Dual Physican Couple

Post by WanderingDoc » Mon Oct 01, 2018 8:37 pm

Toasterthief wrote:
Mon Oct 01, 2018 2:33 pm
Mine:
14393 5.46%
186364 6.51 (government loan, eligible for forgiveness in 4 more years)
12997 3.5%

Hers:
25347 8.75% (The loan I want to take care of before the new year)
66434 6.55 (The loan after)
201418 6.5 (Technically eligible for forgiveness, but she didn't start the process in residency/fellowship...shame)
Your wife's loans are brutal, $300K at > 6.5%. I would pay those off before doing any investing. How confident are you that you can get a 7% return year after year investing in the market?
Don't wait to buy real estate. Buy real estate, and wait. | Rent where you live, buy where others pay your mortgage for you.

WanderingDoc
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Re: New Dual Physican Couple

Post by WanderingDoc » Mon Oct 01, 2018 8:42 pm

Clemblack wrote:
Mon Oct 01, 2018 6:08 pm
Toasterthief wrote:
Mon Oct 01, 2018 6:00 pm
Clemblack wrote:
Mon Oct 01, 2018 5:37 pm
Why is OP's occupation relevant?

I've noticed that physicians on this website tend to state their profession. It's interesting to me.
To explain why we're in our early 30s with massive debt and insignificant retirement savings?

Your post is titled "New Dual Physician Couple," and it doesn't mention "massive debt." I'm still not sure why the occupation would be relevant, and I simply pointed out that it's interesting that physicians seem to have a tendency to mention what they do for a living.
Thats because it tends to consume ones identity. I went out of my way to specifically during residency to have travel, languages, dating, real estate, fitness >>> medicine. I always answer the phone at the hospital with my first name and people think its weird? I dunno. For a long time I've thought it strange that physicians are obsessed with their vocation.
Don't wait to buy real estate. Buy real estate, and wait. | Rent where you live, buy where others pay your mortgage for you.

PFInterest
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Re: New Dual Physican Couple

Post by PFInterest » Mon Oct 01, 2018 8:44 pm

Toasterthief wrote:
Mon Oct 01, 2018 2:28 pm
My wife and I are about to get married and I have some questions about the best way to save. We're both in our early/mid 30s and just beginning medical practice. We're both in academics with a relatively low salary for our respective fields and limited investment options (no mega backdoor Roth, etc).

Income: 650k combined
Current retirement savings: Me: 75k Her: 80k
My investments are currently in Vanguard with a 4-fund portfolio split between my employer account, Roth, taxable account, and HSA. She has a fidelity account from a previous employer and an account with Prudential. Her investments were "helpfully" selected by Prudential and in funds that have relatively high ERs (I'll be changing this).

Our plan is to save 20% of our income (120k per year) for retirement and pay down our medical school loans ASAP (especially one of hers at 8.75%). My question is how to best allocate that 120k of savings per year. Should I just keep it simple and put it all in to Roth/Employer/taxable accounts? Is there anything we should do instead?
Anything not a part of PSLF needs to be refinanced and attacked.
20% for retirement is fine. But if you are doing 2x employer accounts HSA and backdoor rIRA maybe stop there and attack loans next.
Life insurance, disability, etc

lazylarry
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Re: New Dual Physican Couple

Post by lazylarry » Mon Oct 01, 2018 8:59 pm

Toasterthief wrote:
Mon Oct 01, 2018 2:28 pm
My wife and I are about to get married and I have some questions about the best way to save. We're both in our early/mid 30s and just beginning medical practice. We're both in academics with a relatively low salary for our respective fields and limited investment options (no mega backdoor Roth, etc).
It does strike me a little odd that you're in an academic center with limited investment options. I'd just double check this. For instance, I picked a random "smaller" medical center - Kansas university and even they have a roth 403b. apologize to anyone from Kansas, no offense intended. A watered down spd is available:
http://www.kumc.edu/human-resources/ben ... plans.html
But basically, many places will have roth 403b which you then later convert to roth ira. You can call plan to double check this is doable. I would call a few times, as sometimes the plan's reps can be less than knowledgable.

Of course, this doesn't matter until you finish paying down that debt
My profile: https://www.bogleheads.org/forum/memberlist.php?mode=viewprofile&u=86026 | Virtua lBogleheads® Blog: https://virtualbogleheads.wordpress.com/

LocusCoeruleus
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Re: New Dual Physican Couple

Post by LocusCoeruleus » Mon Oct 01, 2018 9:13 pm

Toasterthief wrote:
Mon Oct 01, 2018 2:33 pm
Mine:
14393 5.46%
186364 6.51 (government loan, eligible for forgiveness in 4 more years)
12997 3.5%

Hers:
25347 8.75% (The loan I want to take care of before the new year)
66434 6.55 (The loan after)
201418 6.5 (Technically eligible for forgiveness, but she didn't start the process in residency/fellowship...shame)
I am the lone dissent in saying don’t payoff the 6.5% fed loan if you are on track, that is ECF’d for PSLF with fedloan and have 4 years left and plan to stay academic or remain with an eligible employer. I say this despite the recent 99% rejection headline. The loan forgiveness will be tax free. Hopefully someone will crunch the numbers to prove it. If you are not certified at fedloan, keep in mind they are a cess pool of incompetence. Betty is not on your side. The neutering of cfpb student loans ombudsmen certainly does not help. So when you login to my fedloan and the months are off, think twice, cut once.

jhwkr542
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Re: New Dual Physican Couple

Post by jhwkr542 » Mon Oct 01, 2018 11:43 pm

Please, please, please ignore some of the above commenters. Do not forgo tax deferred space to pay down those debts. You refinance those student loans that aren't pslf eligible/weren't paid on during residency to a fixed rate around 4%. You max out your tax deferred space, which includes 403b/401k/457b, backdoor Roth IRA, and HSA (as applicable). After these are maxed, then ignore taxable to start hammering away at those loans. With that salary, it should be no problem to do all of this.

wxl31
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Re: New Dual Physican Couple

Post by wxl31 » Tue Oct 02, 2018 12:36 am

What I would do:

Income: $650k
Assume 1/3 lost to taxes: $215k
Remaining: $435k
Costs to live like a resident for another year: $50k
Remaining: $385k
401k+backdoor Roth x 2: $18500 * x 2 + $5500 *2 = $48k
Remaining: $337k
Kill off every loan except the one eligible for forgiveness: $320k
Leftover: $17k --> spend on insurance, then splurge

Should be debt-free in 1, or at most, 2 years. Once loans are gone, redirect the funds to the usual sequence with retirement savings (401k's to match, HSA, backdoor Roth, 401k to max, after-tax 401k rolled over to Roth IRA if available, taxable) and feel free to splurge a lot more.

WanderingDoc
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Re: New Dual Physican Couple

Post by WanderingDoc » Tue Oct 02, 2018 1:10 am

wxl31 wrote:
Tue Oct 02, 2018 12:36 am
What I would do:

Income: $650k
Assume 1/3 lost to taxes: $215k
Remaining: $435k
Costs to live like a resident for another year: $50k
Remaining: $385k
401k+backdoor Roth x 2: $18500 * x 2 + $5500 *2 = $48k
Remaining: $337k
Kill off every loan except the one eligible for forgiveness: $320k
Leftover: $17k --> spend on insurance, then splurge

Should be debt-free in 1, or at most, 2 years. Once loans are gone, redirect the funds to the usual sequence with retirement savings (401k's to match, HSA, backdoor Roth, 401k to max, after-tax 401k rolled over to Roth IRA if available, taxable) and feel free to splurge a lot more.
Not gonna happen. This isn't extreme early retirement or money mustache forum.
Don't wait to buy real estate. Buy real estate, and wait. | Rent where you live, buy where others pay your mortgage for you.

Nissanzx1
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Re: New Dual Physican Couple

Post by Nissanzx1 » Tue Oct 02, 2018 2:39 am

Good news is in two years you can be close to debt free. That would be the greatest gift you could give yourself/your spouse.

There will be plenty of time in the market for you to be millionaires many times over if you can save later.

Right now the house is on fire. Call the fire department, don't use a garden hose. Live like a college student until these loans are settled. BMW/Porsche/Vacations/Rolex's have to wait for now. Time to pay the pipers.

somekevinguy
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Re: New Dual Physican Couple

Post by somekevinguy » Tue Oct 02, 2018 2:59 am

jhwkr542 wrote:
Mon Oct 01, 2018 11:43 pm
Please, please, please ignore some of the above commenters. Do not forgo tax deferred space to pay down those debts. You refinance those student loans that aren't pslf eligible/weren't paid on during residency to a fixed rate around 4%. You max out your tax deferred space, which includes 403b/401k/457b, backdoor Roth IRA, and HSA (as applicable). After these are maxed, then ignore taxable to start hammering away at those loans. With that salary, it should be no problem to do all of this.

This exactly. Especially if you’re in academics and at an income of 650. Max out tax deferred space and backdoor Roth x2. PSLF all that is eligible. Refi everything else and pay it off super aggressively. Live like a resident for a few years and you’ll be done in no time. We were in a similar spot a few years ago- dual physician couple, similar income, slightly lower debt burden and by living like residents, were able to pay off all the debts and build significantly toward FIRE-ability.

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randomizer
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Re: New Dual Physican Couple

Post by randomizer » Tue Oct 02, 2018 6:43 am

Yes, keep it simple, I'd say. You'll obviously be ok with your incomes as long as you don't let your spending (and debt) get out of control. There's no reason why you shouldn't be able to retire with 5m or 10m quite easily, so there's no need to optimize everything to the limit. Focus on enjoying your life and your work and don't let investing become the center of everything.
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BlueCable
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Re: New Dual Physican Couple

Post by BlueCable » Tue Oct 02, 2018 7:07 am

Have you looked into refinancing with SoFi or DRB or similar? My wife's rates dropped from like 6.8% to around 3.25%.

I also encourage you to use all tax-advantaged space possible, even while paying your loans. We did not do this during my wife's training and we regret it.

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goodenyou
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Re: New Dual Physican Couple

Post by goodenyou » Tue Oct 02, 2018 8:46 am

Clemblack wrote:
Mon Oct 01, 2018 6:08 pm
Toasterthief wrote:
Mon Oct 01, 2018 6:00 pm
Clemblack wrote:
Mon Oct 01, 2018 5:37 pm
Why is OP's occupation relevant?

I've noticed that physicians on this website tend to state their profession. It's interesting to me.
To explain why we're in our early 30s with massive debt and insignificant retirement savings?

Your post is titled "New Dual Physician Couple," and it doesn't mention "massive debt." I'm still not sure why the occupation would be relevant, and I simply pointed out that it's interesting that physicians seem to have a tendency to mention what they do for a living.
Physician employment is not as vulnerable to market fluctuations as other professions. People get sick in good economies and bad economies. Therefore, I may make a different recommendation to someone in a different profession that may be subject to job insecurity. Otherwise, investing and debt strategies should be the same. You could also take the position that some doctors are self-absorbed, self-aggrandizing, narcissistic and overly excited about their accomplishments. It's all in your own perspective. It is why WCI is popular and a "safe space" for doctors.
"Ignorance more frequently begets confidence than does knowledge" | "The best years you have left are the ones you have right now"

Jack FFR1846
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Re: New Dual Physican Couple

Post by Jack FFR1846 » Tue Oct 02, 2018 8:57 am

It makes sense to mention dual physician as the source of the "relatively low" $650k/year income. It eliminates my thoughts that he's talking about only himself, as a new engineer making the typical $65k a year first year salary. You know....decimal place shift by mistake.

Only on Bogleheads can $650k and "relatively low" be said together and be taken seriously.
Bogle: Smart Beta is stupid

FireProof
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Re: New Dual Physican Couple

Post by FireProof » Tue Oct 02, 2018 9:22 am

Clemblack wrote:
Mon Oct 01, 2018 6:08 pm
Toasterthief wrote:
Mon Oct 01, 2018 6:00 pm
Clemblack wrote:
Mon Oct 01, 2018 5:37 pm
Why is OP's occupation relevant?

I've noticed that physicians on this website tend to state their profession. It's interesting to me.
To explain why we're in our early 30s with massive debt and insignificant retirement savings?

Your post is titled "New Dual Physician Couple," and it doesn't mention "massive debt." I'm still not sure why the occupation would be relevant, and I simply pointed out that it's interesting that physicians seem to have a tendency to mention what they do for a living.
Different risk and career trajectories. For a lawyer, 325k/year may be peak earnings, followed by large salary reductions upon moving to a more lifestyle type job. For an entrepreneur or a saleseman, earnings may be very irregular. If an engineer had a massively negative net worth in his thirties, that would be a major red flag for pending habits, and would be important to address. If he were a cryptocurrency speculator or professional poker player, he may have an appetite for risk and desire to beat the game that could prove harmful for equity investing.

Specificity also brings connection - other physicians will be attracted to help a fellow schmuck who's just taken it in the teeth for the last decade, and gets 6% debt as a reward.

Toasterthief
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Re: New Dual Physican Couple

Post by Toasterthief » Tue Oct 02, 2018 9:43 am

Thanks for the advice everyone.
lazylarry wrote:
Mon Oct 01, 2018 8:59 pm
Toasterthief wrote:
Mon Oct 01, 2018 2:28 pm
My wife and I are about to get married and I have some questions about the best way to save. We're both in our early/mid 30s and just beginning medical practice. We're both in academics with a relatively low salary for our respective fields and limited investment options (no mega backdoor Roth, etc).
It does strike me a little odd that you're in an academic center with limited investment options. I'd just double check this. For instance, I picked a random "smaller" medical center - Kansas university and even they have a roth 403b. apologize to anyone from Kansas, no offense intended. A watered down spd is available:
http://www.kumc.edu/human-resources/ben ... plans.html
But basically, many places will have roth 403b which you then later convert to roth ira. You can call plan to double check this is doable. I would call a few times, as sometimes the plan's reps can be less than knowledgable.

Of course, this doesn't matter until you finish paying down that debt
My job offers a fairly generous match, however unfortunately doesn't allow for any other other space. I double check with the Vanguard rep again this year, but I'm fairly sure that's the case. I'll look in to her job a bit more as well.

Thanks for the advice everyone. To summarize, does this sound reasonable:

1. Consolidate her major (200k, 6.5%) loan at a lower interest rate.
2. Pay off her 25k, 8% loan now.
3. Contribute to our retirement plans to max out our matches, backdoor Roth, and at a minimum, to the 401k limit.
4. Pay off her 60k, 6.5% loan ASAP.
5. Pay off her 200k loan ASAP.
6. Pay off my 15k, 5.5% loan
7. Stay on course to get my loan debt forgiven via PSLF (I've been submitting yearly employment verification forms which have been fine).

PFInterest
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Re: New Dual Physican Couple

Post by PFInterest » Tue Oct 02, 2018 9:47 am

Toasterthief wrote:
Tue Oct 02, 2018 9:43 am
Thanks for the advice everyone.
lazylarry wrote:
Mon Oct 01, 2018 8:59 pm
Toasterthief wrote:
Mon Oct 01, 2018 2:28 pm
My wife and I are about to get married and I have some questions about the best way to save. We're both in our early/mid 30s and just beginning medical practice. We're both in academics with a relatively low salary for our respective fields and limited investment options (no mega backdoor Roth, etc).
It does strike me a little odd that you're in an academic center with limited investment options. I'd just double check this. For instance, I picked a random "smaller" medical center - Kansas university and even they have a roth 403b. apologize to anyone from Kansas, no offense intended. A watered down spd is available:
http://www.kumc.edu/human-resources/ben ... plans.html
But basically, many places will have roth 403b which you then later convert to roth ira. You can call plan to double check this is doable. I would call a few times, as sometimes the plan's reps can be less than knowledgable.

Of course, this doesn't matter until you finish paying down that debt
My job offers a fairly generous match, however unfortunately doesn't allow for any other other space. I double check with the Vanguard rep again this year, but I'm fairly sure that's the case. I'll look in to her job a bit more as well.

Thanks for the advice everyone. To summarize, does this sound reasonable:

1. Consolidate her major (200k, 6.5%) loan at a lower interest rate.
2. Pay off her 25k, 8% loan now.
3. Contribute to our retirement plans to max out our matches, backdoor Roth, and at a minimum, to the 401k limit.
4. Pay off her 60k, 6.5% loan ASAP.
5. Pay off her 200k loan ASAP.
6. Pay off my 15k, 5.5% loan
7. Stay on course to get my loan debt forgiven via PSLF (I've been submitting yearly employment verification forms which have been fine).
sounds good.

Childay
Posts: 76
Joined: Wed Jan 25, 2012 11:07 pm

Re: New Dual Physican Couple

Post by Childay » Tue Oct 02, 2018 10:33 am

Toasterthief wrote:
Tue Oct 02, 2018 9:43 am
Thanks for the advice everyone.
lazylarry wrote:
Mon Oct 01, 2018 8:59 pm
Toasterthief wrote:
Mon Oct 01, 2018 2:28 pm
My wife and I are about to get married and I have some questions about the best way to save. We're both in our early/mid 30s and just beginning medical practice. We're both in academics with a relatively low salary for our respective fields and limited investment options (no mega backdoor Roth, etc).
It does strike me a little odd that you're in an academic center with limited investment options. I'd just double check this. For instance, I picked a random "smaller" medical center - Kansas university and even they have a roth 403b. apologize to anyone from Kansas, no offense intended. A watered down spd is available:
http://www.kumc.edu/human-resources/ben ... plans.html
But basically, many places will have roth 403b which you then later convert to roth ira. You can call plan to double check this is doable. I would call a few times, as sometimes the plan's reps can be less than knowledgable.

Of course, this doesn't matter until you finish paying down that debt
My job offers a fairly generous match, however unfortunately doesn't allow for any other other space. I double check with the Vanguard rep again this year, but I'm fairly sure that's the case. I'll look in to her job a bit more as well.

Thanks for the advice everyone. To summarize, does this sound reasonable:

1. Consolidate her major (200k, 6.5%) loan at a lower interest rate.
2. Pay off her 25k, 8% loan now.
3. Contribute to our retirement plans to max out our matches, backdoor Roth, and at a minimum, to the 401k limit.
4. Pay off her 60k, 6.5% loan ASAP.
5. Pay off her 200k loan ASAP.
6. Pay off my 15k, 5.5% loan
7. Stay on course to get my loan debt forgiven via PSLF (I've been submitting yearly employment verification forms which have been fine).
8. Refinance all those non PSLF loans, yesterday

JHU ALmuni
Posts: 96
Joined: Tue Jan 20, 2015 12:40 pm

Re: New Dual Physican Couple

Post by JHU ALmuni » Tue Oct 02, 2018 10:46 am

Refinance and consolidate your student loans. You should be able to get a lower rate and save few thousands.

PFInterest
Posts: 2572
Joined: Sun Jan 08, 2017 12:25 pm

Re: New Dual Physican Couple

Post by PFInterest » Tue Oct 02, 2018 9:13 pm

Toasterthief wrote:
Mon Oct 01, 2018 3:07 pm
Thanks, I read WCI quite a bit (although his political views coming through gets annoying).
interesting. has he been politicizing his blog recently?

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