Financial Goals for 2017

[Gas_Doc]

1. Max out Roths (mine and my wife's) and 401k

2. Contribute to taxable account up to 20% of gross income

3. Open a new credit card with at least a $500 sign-up bonus

4. Buy reliable but cost-efficient car for my wife

5. Read J.K. Lasser's latest tax book before Tax Day 2017.

6. Start saving for our kitchen remodel.

[AspiringDoc]

1) Pay off all 0% credit card debt before promotional periods end. Then utilize credit card offers to avoid student loan interest for med or podiatry school.

2) Pay off or refinance 20k high interest sallie mae loan

3) Cash out teacher pension plan and use money to offset student loans

4) Have wifey invest in roth 401k at minimum up to the employer match

5) Get my 30% tax credit and $1000 from state for purchasing a solar system. I am pretty pumped about this. I got a unsecured solar loan at 3% to cover the total cost and after my electricity savings and SREC sales I am cash flow positive not even counting the tax breaks.

[Antares]

1. Reach 2.25M in retirement accounts

2. Reach 3M net worth

3. Contribute at least 50K to taxable account

4. Make up purchases of >$30 bottles of wine by reduction in purchases <$30

5. Convince Suburu to lease me a new wrx early as I will exceed allotted mileage (lease is deductible for me)

6. Contribute 15K to 13 yo daughter's college acct outside of 529 to avoid repeating the excess accumulated in first child's account (which occurred because of merit scholarship received)

7. Better deal with emotional withholding of 5% cash in investment accounts to become fully invested

 

 

 

[The White Coat Investor]

1. Max out the retirement accounts (like usual, but no small task given how many we have)

2. Pay off the rest of the mortgage

3. Start the "20s funds" for the other 3 kids

4. Simplify the asset allocation and increase allocation to real estate (I'm sure there'll be a few blog posts related to this)

5. Maintain income despite going to 3/4 time (make up the difference with WCI income)

6. Redo wills. Consider revocable trust. Update the "In Case of Death" sheet

[EM_INDY]

1. Continue maxing 401k PSP, backdoor roths, hsa
2. Contribute 5 figure amount to both of newborn twins 529s
3. Rent condo for a profit
4. Max cash balance plan for first time (and convince my group to switch to a plan with lower fees!)
5. Don't go too crazy furnishing new house (4x sq footage of previous condo)
6. Outside shot at two comma club (highly dependent on the market and #5!)

[hightower]

AspiringDoc wrote:

1) Pay off all 0% credit card debt before promotional periods end. Then utilize credit card offers to avoid student loan interest for med or podiatry school.

2) Pay off or refinance 20k high interest sallie mae loan

3) Cash out teacher pension plan and use money to offset student loans

4) Have wifey invest in roth 401k at minimum up to the employer match

5) Get my 30% tax credit and $1000 from state for purchasing a solar system. I am pretty pumped about this. I got a unsecured solar loan at 3% to cover the total cost and after my electricity savings and SREC sales I am cash flow positive not even counting the tax breaks.

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Nice work on #5.  We're considering putting solar on our house too.  The only downside for us is we may not be staying at this house long term, so it may not be as cost effective for us.  But, it does add to the value of the house.  Plus, we are very concerned about climate change so its a psychological improvement as well.

[WealthyDoc]

Vagabond MD wrote:

I am the old guy here (51), but here goes:

1. Reduce my W-2 salary by 25% (as I cut back my work schedule, hopefully in summer/fall)

2. Earn less than my wife (for the second year in a row–woo hoo!)

3. Start to empty my son’s 529 plans (but still max out contribution $8000, for the state tax benefit) as he starts college in the fall

4. Double my 1099 income (from consulting and side gigs)

5. Spend at least $10k on a trip to Europe with my wife in the fall (I am having trouble talking her into leaving the teen daughter home for the trip, not the spend part)

6. Purchase no new shirts/pants/shorts – I have too many clothes, much unused or barely/rarely used

7. Buy no bottle of wine for more than $30 (retail)

8. Figure out how to use my Chase Sapphire Rewards points

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Just call Chase and tell them to put the CASH on your credit card.

[WealthyDoc]

hatton1 wrote:

Decide if retiring on my birthday (age 60) is psychologically something I want to do!  It is coming soon.

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When in doubt, keep working!  It serves your patients while giving you challenge, structure, meaning, and income!

 

[RadDoc6876]

1. Continue maxing out all retirement accounts - my TSP, wife's 403(b), Back-door Roths, SEP-IRA from moonlighting 1099 income (I transfer this to TSP each year so no issues with Back-door Roths).  Add to taxable acct to make total savings rate of 20-25% of gross.

2. Finalize Disability policy for myself (wife's policy done).

3. Look into a Long-term care policy of some kind for me & my wife.  We worked on Term Life and Disability in 2016 but haven't looked hard at this area yet. Our strategy may be part self-insure/part purchased coverage.

4. Use credit card points for travel--did this with a lot of success in 2016.

5. I have always done my taxes myself but am considering a CPA since we are now W-2 + W-2 + 1099.

6. Considering rental property...we are 2 full-time docs and I am a bit hesitant about whether the time commitment is worth it...we already have VGSLX in tax-protected but may consider RealtyShares or something simpler/easier than becoming landlords (any recs in this area would be appreciated!).

 

[AspiringDoc]

hightower wrote:

AspiringDoc wrote:

1) Pay off all 0% credit card debt before promotional periods end. Then utilize credit card offers to avoid student loan interest for med or podiatry school.

2) Pay off or refinance 20k high interest sallie mae loan

3) Cash out teacher pension plan and use money to offset student loans

4) Have wifey invest in roth 401k at minimum up to the employer match

5) Get my 30% tax credit and $1000 from state for purchasing a solar system. I am pretty pumped about this. I got a unsecured solar loan at 3% to cover the total cost and after my electricity savings and SREC sales I am cash flow positive not even counting the tax breaks.

Click to expand…

Nice work on #5.  We’re considering putting solar on our house too.  The only downside for us is we may not be staying at this house long term, so it may not be as cost effective for us.  But, it does add to the value of the house.  Plus, we are very concerned about climate change so its a psychological improvement as well.

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Increased property value didn't even cross my mind. I would look into your states incentives because in my case I sold the SRECs to a third party in return for a fixed payment of $126 for 10 years and I hold the right to this even if I sell the house. If I had the ability to flip houses I would be putting a solar system on every house and doing this over and over again recouping the cost of the system in the sale and accumulating numerous fixed payments each month.

[Gas_Doc]

RadDoc6876 wrote:

6. Considering rental property…we are 2 full-time docs and I am a bit hesitant about whether the time commitment is worth it…we already have VGSLX in tax-protected but may consider RealtyShares or something simpler/easier than becoming landlords (any recs in this area would be appreciated!).

 

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Though I haven't personally taken the plunge and bought a property with them yet, I'd suggest taking a look at Roofstock. They set it up so the commitment to owning a rental property is minimal, mainly because they cater to people looking to buy properties outside their area of residence.

[Aj]

1. Max out retirement accounts


2. Get rid of old clothes - donate to charities


3. Declutter (home, financial accounts etc.)


4. Review and update estate planning / wills etc


5. Chip away at mortgage with double payments


6. Put 10% towards taxable account


7. Make time to work on personal projects

[Dilaudidopenia]

Graduating EM residency in June 2017 and going to work as IC, wife starting PICU fellowship...

1) Max out pre-tax space - solo-401k for me; contribute to match (if any) in wife's new 403b

2) Pay ~50k in my student loans (maybe more, will have to see); pay minimum for wife's PSLF

3) Make Congress decide what they're doing about PSLF, and if unfavorable result, re-finance wife's loans and switch to married filing jointly (from separately)

4) Continue backdoor Roth IRAs

5) Continue saving ~ 1-2k / month for eventual home down payment

6) Get umbrella insurance

7) Increase disability insurance benefit

8) Continue having 1 family car (reliable 2010 Mazda) and continue to ride it out towards 200k miles (currently ~145k)

9) Cut cable

Lots to be thankful for.  Looking forward to a great year!

[VagabondMD]

WealthyDoc wrote:

Vagabond MD wrote:

I am the old guy here (51), but here goes:

1. Reduce my W-2 salary by 25% (as I cut back my work schedule, hopefully in summer/fall)

2. Earn less than my wife (for the second year in a row–woo hoo!)

3. Start to empty my son’s 529 plans (but still max out contribution $8000, for the state tax benefit) as he starts college in the fall

4. Double my 1099 income (from consulting and side gigs)

5. Spend at least $10k on a trip to Europe with my wife in the fall (I am having trouble talking her into leaving the teen daughter home for the trip, not the spend part)

6. Purchase no new shirts/pants/shorts – I have too many clothes, much unused or barely/rarely used

7. Buy no bottle of wine for more than $30 (retail)

8. Figure out how to use my Chase Sapphire Rewards points

Click to expand…

Just call Chase and tell them to put the CASH on your credit card.

Click to expand...

If I am not mistaken, that is not the best way to optimize the value of these points. Sure, you can cash out at any time with a few clicks, but I believe that you get more value by using the points for travel (via air miles). Might be worth starting a new thread on this topic.

[Lithium]

Vagabond MD wrote:

WealthyDoc wrote:

Vagabond MD wrote:

I am the old guy here (51), but here goes:

1. Reduce my W-2 salary by 25% (as I cut back my work schedule, hopefully in summer/fall)

2. Earn less than my wife (for the second year in a row–woo hoo!)

3. Start to empty my son’s 529 plans (but still max out contribution $8000, for the state tax benefit) as he starts college in the fall

4. Double my 1099 income (from consulting and side gigs)

5. Spend at least $10k on a trip to Europe with my wife in the fall (I am having trouble talking her into leaving the teen daughter home for the trip, not the spend part)

6. Purchase no new shirts/pants/shorts – I have too many clothes, much unused or barely/rarely used

7. Buy no bottle of wine for more than $30 (retail)

8. Figure out how to use my Chase Sapphire Rewards points

Click to expand…

Just call Chase and tell them to put the CASH on your credit card.

Click to expand…

If I am not mistaken, that is not the best way to optimize the value of these points. Sure, you can cash out at any time with a few clicks, but I believe that you get more value by using the points for travel (via air miles). Might be worth starting a new thread on this topic.

Click to expand...

You are correct.  It is usually best to transfer them out to partners.  There are several articles on the Points Guy about this, but here is one:

http://thepointsguy.com/2016/11/maximizing-chase-ultimate-rewards-points-domestic-travel/