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please critique our plan (student and "soon" to be SAHM)

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  • please critique our plan (student and "soon" to be SAHM)

    I am a 4th year MD/PhD student set to graduate in 2022.  My wife and I would like to start our family in mid-2020. At this time, my wife will transition from working full time to per diem for 2 years. When I begin residency in 2022 she plans to stop working, and we will likely expand our family by 1 or 2 more during residency.

    No debt.

    Assets: 90k in no penalty CD, 68k in Roths (Vang TR 2060), 10K in TRS, 10K in old 401K (Vang TR 2055)

    We are currently saving 46k per year (5k to TRS, 11k to Roths, 30k to liquid savings). At this rate, we will have 150k in savings account/CD when my wife transitions to working per diem. From mid-2020 until the end of my residency/fellowship, we will have a low to nonexistent savings rate. My plan is to draw from the 150k to fund purchases for two "new" used vehicles (our current cars are on their last legs) and ROTHs each year.

    1. Is this a reasonable plan? We also have the option of funding a 403b. Would it make more sense to fund 403b in the next few years in lieu of donating to Roths during residency/fellowship?

    2. Liquid savings are currently in 1.75% no penalty CD with Ally. Should I put some of this in a taxable account?

    3. My wife has a whole life policy purchased for her at birth. Policy benefit as of today, 140k; cash value, 12k; max divid, 3.5k. Premium is $56/month. I need to read more on whole life vs. term, but should we dump this?

    4. I plan on obtaining term life insurance in 2019. Would it be advisable to also obtain disability?

    Thanks so much for your help!
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