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Non-trad just out of training (43yo). Spouse is 50yo SAH parent/house manager and no longer working outside home (has good potential to earn but hates the work trained for. May be going back to work in next few years in a different role). Kids are 11 and 14 yo. We have hugely net negative worth and we are old. I know...I have work to do. Good thing I really like my job. Nor sure how much background info is needed to evaluate my choices so here goes:
I'm hospital/university employed, started first attending job this fall. We have credit card debt (with interest, I was horrified to find). I made conscious and uncomfortable decision (but I hope logical) to delay big payments with my first attending paychecks in 2016 in order to max my 403b before end of year (done). We are now aggressively paying down cc debt and will have it gone before summer. I will fully fund both 403b and 457b (through university appointment so a good secure one) this year. Employer puts about 25k per year into my 403b as well. Spouse will be able to put about 15k into solo 401k due to IC work in 2016 (we used spouse's 1099 income in 2016 to open solo 401 k and roll old IRA in). So we are all set up to do backdoor roths in 2017 and each year thereafter but not enough money to make it work for 2016, scraping the barrel already. Going for PSLF so stuck with 180k at 6.875% for now. Have some med-school award/loans at ~3% as well (small balance <10k). We have a mortgage at 3.625% (170k balance, 27 of 30 years fixed left, we are planning to accelerate payoff but not sure how to prioritize this over investing). I already have solid own occ DI ($$$$ for old people like me) and term life plus umbrella set up. Will work on emergency fund as soon as the interest-bearing credit cards are paid off. Have family with $$ to loan if we have a catastrophe in the meantime. Once we have emergency fund in place will likely spend the 5k/yr per kid to fund 529s in order to get our state max benefit (10% tax credit on contributions up to 5k per kid), my mom gifted them this year in order to help us meet the max benefit.
I'm planning to put >1/3 of gross toward retirement per year (>100k per year) and anticipate a 20 year career, hoping to be able to retire or cut back at about 65 yo.We live a pretty simple life but with (older)kids during training we made the decision to go into some debt in order to allow them to ski, take piano and art lessons, summer camps, plus some travel for all of us.
I don't love the Fidelity options in my hospital's 403b plan, balance is about 60k right now (I rolled an old 401k account into it). My spouse picked a large cap growth fund (FGCKX) for me but the ER was 0.77%. After doing a risk-tolerance quiz and reading a bit I re-allocated to:
Fid Total Market Index FSKTX (large cap) (ER .035) at 65%
Fid Int'l Index FSPNX (ER .06) at 20%
Fid US Bond Index FSXTS (ER .04) at 15%
I have another 403b via the university that will only amount to about 3k per year and my spouse has the solo 401k (25k plus the 15k we will put in before tax day) so I can use those to rebalance, or just change my allocations going forward. I was thinking of using the university 403b (which has many more options that the hospital 403b) to add some real estate (FSRVX) or a small or mid cap us index. Ideas? I know it's a small amount of money right now but I'm going to be pouring money into these accounts (plus a taxable) so wonder how this allocation and these funds seem to those who've been in the rodeo a while. Am I on the right track?
I feel like I am learning a whole new specialty. And my spouse, unfortunately is one of those who thinks they know it all, but as I learn I keep exposing holes in that knowledge. So now I need to learn it all and fast to prevent mistakes.
Appreciate any advice.
I'm hospital/university employed, started first attending job this fall. We have credit card debt (with interest, I was horrified to find). I made conscious and uncomfortable decision (but I hope logical) to delay big payments with my first attending paychecks in 2016 in order to max my 403b before end of year (done). We are now aggressively paying down cc debt and will have it gone before summer. I will fully fund both 403b and 457b (through university appointment so a good secure one) this year. Employer puts about 25k per year into my 403b as well. Spouse will be able to put about 15k into solo 401k due to IC work in 2016 (we used spouse's 1099 income in 2016 to open solo 401 k and roll old IRA in). So we are all set up to do backdoor roths in 2017 and each year thereafter but not enough money to make it work for 2016, scraping the barrel already. Going for PSLF so stuck with 180k at 6.875% for now. Have some med-school award/loans at ~3% as well (small balance <10k). We have a mortgage at 3.625% (170k balance, 27 of 30 years fixed left, we are planning to accelerate payoff but not sure how to prioritize this over investing). I already have solid own occ DI ($$$$ for old people like me) and term life plus umbrella set up. Will work on emergency fund as soon as the interest-bearing credit cards are paid off. Have family with $$ to loan if we have a catastrophe in the meantime. Once we have emergency fund in place will likely spend the 5k/yr per kid to fund 529s in order to get our state max benefit (10% tax credit on contributions up to 5k per kid), my mom gifted them this year in order to help us meet the max benefit.
I'm planning to put >1/3 of gross toward retirement per year (>100k per year) and anticipate a 20 year career, hoping to be able to retire or cut back at about 65 yo.We live a pretty simple life but with (older)kids during training we made the decision to go into some debt in order to allow them to ski, take piano and art lessons, summer camps, plus some travel for all of us.
I don't love the Fidelity options in my hospital's 403b plan, balance is about 60k right now (I rolled an old 401k account into it). My spouse picked a large cap growth fund (FGCKX) for me but the ER was 0.77%. After doing a risk-tolerance quiz and reading a bit I re-allocated to:
Fid Total Market Index FSKTX (large cap) (ER .035) at 65%
Fid Int'l Index FSPNX (ER .06) at 20%
Fid US Bond Index FSXTS (ER .04) at 15%
I have another 403b via the university that will only amount to about 3k per year and my spouse has the solo 401k (25k plus the 15k we will put in before tax day) so I can use those to rebalance, or just change my allocations going forward. I was thinking of using the university 403b (which has many more options that the hospital 403b) to add some real estate (FSRVX) or a small or mid cap us index. Ideas? I know it's a small amount of money right now but I'm going to be pouring money into these accounts (plus a taxable) so wonder how this allocation and these funds seem to those who've been in the rodeo a while. Am I on the right track?
I feel like I am learning a whole new specialty. And my spouse, unfortunately is one of those who thinks they know it all, but as I learn I keep exposing holes in that knowledge. So now I need to learn it all and fast to prevent mistakes.
Appreciate any advice.
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