1. Line up locums for latter half of 2018 (NZ, AUS, HI, maybe AK?) Preferably outpatient / no call.
2. Like many of you, Max out the usual (401(k), 457(b), HSA, Backdoor Roth x 2)
3. Continue funding taxable account and 529s x 2.
4. Build up DAF close to $250k
5. Exceed 30x anticipated annual retirement expenses in retirement funds.
6. Continue to downsize / minimize our belongings.
Good luck to everybody in meeting those goals!
-PoF
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1. Continue to max out 401k, backdoor Roths, HSA, and 529.
2. Pay off last 57k of student loans (2.5 years out of training)
3. Continue making extra monthly mortgage payments
4. Continue saving surplus to taxable account
5. Read at least three new financial books (how to think about money is first on the list)Leave a comment:
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This is truly an impressive group.
I hope to:
1. Maximize retirement accounts (we do this regularly).
2. Better understand my expenses - we do fine, but I want a little more granular data.
3. Work and earn less - although I still enjoy my work, having achieved FI, it is time to work a little less.
4. Purchase another investment property.
5. Continue to travel.
Best of luck to all of you!!Leave a comment:
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Interesting, I'm assuming you've considered the risk of your not getting jobs there, not liking your jobs etc which prompts the usual advice to rent for a few years after residency. It obviously would depend on the amount of assistance from the trust vs the risks. Unique situation sounds like! First world problem I guess lol. Certainly if it's both of your hometown you'll probably be ok but you never know.Leave a comment:
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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).
You might want to rethink that one. Why would your family only help you if it is within a year of getting married? Especially if you aren’t living there and don’t have jobs there?
It’s just part of a trust agreement from my grandfather who passed away years ago. The timeline is included in the trust. It’s not that it needs to be in a particular place — could be anywhere we purchase. But we live in a HCOL area currently where we do NOT want to stay after residency, and we already know where we want to end up. That part is entirely our decision. And we aren’t required to purchase, but for me it’s just too good of a deal to pass up.Leave a comment:
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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).
You might want to rethink that one. Why would your family only help you if it is within a year of getting married? Especially if you aren't living there and don't have jobs there?Leave a comment:
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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!Leave a comment:
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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
Just call Chase and tell them to put the CASH on your credit card.
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.
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/
Leave a comment:
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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
Just call Chase and tell them to put the CASH on your credit card.
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.Leave a comment:
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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!Leave a comment:
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- Max out retirement accounts
- Get rid of old clothes - donate to charities
- Declutter (home, financial accounts etc.)
- Review and update estate planning / wills etc
- Chip away at mortgage with double payments
- Put 10% towards taxable account
- Make time to work on personal projects
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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!).
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.Leave a comment:
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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.
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.
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.Leave a comment:
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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!).
Leave a comment:
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