Tweet
R2 here, with R1 soon-to-be wife. Both in 4 year EM program, doubt we'll do fellowships after. Living fairly frugally off of old savings and small trust income while trying to throw all we can into retirement accounts (and starting on loans hopefully soon).
1. Continue to max out excellent residency retirement plan options -- 403b or solo 401k (when 1099 income available, hopefully this year between surveys and being allowed to moonlight in 2nd half of 2017 as an R3), 457b, pre-tax and after-tax DCP (after gets rolled into Roth with allowed in-service distributions), Roth x2. Goal to put away >$100,000 this year, with $40k each into tax-deferred and at least $10k each into after-tax/Roth -- hopefully more depending on 1099 income. Try to convince future wife to put all her extra non-tax deferred W2 salary into the after-tax rather than keeping it in savings account if we don't actually need it to live on (free Roth monies that we'll never have again = amazing).
2. Create 1099 income for both of us (me via surveys and moonlighting in 2nd half of year, her via surveys only -- just starting, unclear how much will be possible although time isn't the limiting factor (EM residency so have some free time), rather limited by qualifying for surveys). Would love to create enough 1099 income over the year to fill at least employee contribution portion of solo 401k so that W2 residency income can be directed from 403b into the after-tax DCP and into Roth instead.
3. If any extra 1099 income (after filling tax-deferred and covering any additional living expenses plus taxes), start to pay off loans (in chunks to avoid losing RePAYE subsidy).
4. Keep non-rent expenses <$2,000/mo. And in that vein, stop purchasing so much stuff on Amazon (that's all me. It's my monetary weakness).
5. By April 2018, purchase reasonably-priced home in our middle-COL hometown (plan to move back after residency, excellent EM jobs, in FL without state tax, both families there which will be great when we have kids). Sounds like an arbitrary timeline, but we basically have a monetary incentive via family contribution to downpayment if we purchase our first home together within a year of getting married. Then we plan to find tenants to cover mortgage and taxes for the next year and a half til we can move back (although we technically could afford them if needed).
Sorry this was so long! Love the thread, though -- it will be great looking back at the end of the year to see how it went!
1. Continue to max out excellent residency retirement plan options -- 403b or solo 401k (when 1099 income available, hopefully this year between surveys and being allowed to moonlight in 2nd half of 2017 as an R3), 457b, pre-tax and after-tax DCP (after gets rolled into Roth with allowed in-service distributions), Roth x2. Goal to put away >$100,000 this year, with $40k each into tax-deferred and at least $10k each into after-tax/Roth -- hopefully more depending on 1099 income. Try to convince future wife to put all her extra non-tax deferred W2 salary into the after-tax rather than keeping it in savings account if we don't actually need it to live on (free Roth monies that we'll never have again = amazing).
2. Create 1099 income for both of us (me via surveys and moonlighting in 2nd half of year, her via surveys only -- just starting, unclear how much will be possible although time isn't the limiting factor (EM residency so have some free time), rather limited by qualifying for surveys). Would love to create enough 1099 income over the year to fill at least employee contribution portion of solo 401k so that W2 residency income can be directed from 403b into the after-tax DCP and into Roth instead.
3. If any extra 1099 income (after filling tax-deferred and covering any additional living expenses plus taxes), start to pay off loans (in chunks to avoid losing RePAYE subsidy).
4. Keep non-rent expenses <$2,000/mo. And in that vein, stop purchasing so much stuff on Amazon (that's all me. It's my monetary weakness).
5. By April 2018, purchase reasonably-priced home in our middle-COL hometown (plan to move back after residency, excellent EM jobs, in FL without state tax, both families there which will be great when we have kids). Sounds like an arbitrary timeline, but we basically have a monetary incentive via family contribution to downpayment if we purchase our first home together within a year of getting married. Then we plan to find tenants to cover mortgage and taxes for the next year and a half til we can move back (although we technically could afford them if needed).
Sorry this was so long! Love the thread, though -- it will be great looking back at the end of the year to see how it went!
Comment