Announcement

Collapse
No announcement yet.

New Attending Savings Questions

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

  • #16
    If it helps to have more information on my new role, my base gross annual salary is 190k. I have a stay-at-home wife at the moment, no kids. I am renting a 1800 apartment. Don't have a car loan. Have the 9k combined education loans from my wife with interests ranging 4-6%.

     

    You spoke about both Roth 403B and traditional 403B. You recommend to try and max both of them? What about saving for down-payment? What strategy should I use?

    Comment


    • #17




      If it helps to have more information on my new role, my base gross annual salary is 190k. I have a stay-at-home wife at the moment, no kids. I am renting a 1800 apartment. Don’t have a car loan. Have the 9k combined education loans from my wife with interests ranging 4-6%.

      You spoke about both Roth 403B and traditional 403B. You recommend to try and max both of them? What about saving for down-payment? What strategy should I use?
      Click to expand...


      WCI gave you an answer to this, but I'm not sure he had read through all of the messages. Student loans of $9k at 4 - 6% should be knocked out first. Since you have decent Fidelity options through your ORP and it has a match where (I presume) the 403b doesn't, it makes more sense (based on the little I know at this point) to focus on the ORP & get maximum match because you are earning under the threshold (at least $245k) and will get an 1.85% "over-match" - that's incredible. I really can't go beyond this recommendation at this point, however.
      Working to protect good doctors from bad advisors. Fox & Co CPAs, Fox & Co Wealth Mgmt. 270-247-6087

      Comment


      • #18







        If it helps to have more information on my new role, my base gross annual salary is 190k. I have a stay-at-home wife at the moment, no kids. I am renting a 1800 apartment. Don’t have a car loan. Have the 9k combined education loans from my wife with interests ranging 4-6%.

        You spoke about both Roth 403B and traditional 403B. You recommend to try and max both of them? What about saving for down-payment? What strategy should I use?
        Click to expand…


        WCI gave you an answer to this, but I’m not sure he had read through all of the messages. Student loans of $9k at 4 – 6% should be knocked out first. Since you have decent Fidelity options through your ORP and it has a match where (I presume) the 403b doesn’t, it makes more sense (based on the little I know at this point) to focus on the ORP & get maximum match because you are earning under the threshold (at least $245k) and will get an 1.85% “over-match” – that’s incredible. I really can’t go beyond this recommendation at this point, however.
        Click to expand...


        Let me know what other information would you want from me at this point for more recommendations, either here or in private.

         

        As for the 8.5% employer match, I was wondering how the math works out on that. Is it like this:

         
        Gross Income Yearly = 190,000

        Monthly Gross Income = 15833.33

        My Savings Contributions per Month= (15833.33*6.65%)= 1052.92

        My Employer Contributions per Month = (1052.92 * 8.5%) = 89.50

        Yearly ORP Savings = (1052.92 + 89.50) *12 = 13709.015


        So, its the 8.5% of my 6.65% or is it really the 8.5% of the whole gross income? I haven't been able to find that detailed in the plan.


        Thanks for all your help,

        Manuel

        Comment


        • #19
          No. Your ORP calc is more like

          8.85% of gross i.e. ~ $1,400.

          That is a great overmatch. Enjoy.

          Comment


          • #20




            No. Your ORP calc is more like

            8.85% of gross i.e. ~ $1,400.

            That is a great overmatch. Enjoy.
            Click to expand...


            WHAT! Wow

            Comment


            • #21
              Yes. Looks like everything IS big in Texas. Including matching.

              You are getting default 15.5% forced savings.

              Comment


              • #22







                If it helps to have more information on my new role, my base gross annual salary is 190k. I have a stay-at-home wife at the moment, no kids. I am renting a 1800 apartment. Don’t have a car loan. Have the 9k combined education loans from my wife with interests ranging 4-6%.

                You spoke about both Roth 403B and traditional 403B. You recommend to try and max both of them? What about saving for down-payment? What strategy should I use?
                Click to expand…


                WCI gave you an answer to this, but I’m not sure he had read through all of the messages. Student loans of $9k at 4 – 6% should be knocked out first. Since you have decent Fidelity options through your ORP and it has a match where (I presume) the 403b doesn’t, it makes more sense (based on the little I know at this point) to focus on the ORP & get maximum match because you are earning under the threshold (at least $245k) and will get an 1.85% “over-match” – that’s incredible. I really can’t go beyond this recommendation at this point, however.
                Click to expand...


                I'm pretty sure the ORP is the 403(b).  You have a mandatory contribution and match in this program.  There is additional room for voluntary contributions in the 403(b) up to the yearly maximum of $18,000 (pre-tax) and then they allow after tax contributions (not sure I would do this).  Then you have a governmental 457(b) option as well (with match in 403b and maxing both 403b and 457 you will be at about 25% savings rate).  They should have given you an updated benefits page that gives the most simple explanation on the second page.

                Please note that all of your matching funds are held in a money market account until you are vested at 1 year 1 day.  You will have to manually direct this money into investments after that point and additionally make sure your future matching is set up to be placed into the funds of your choice.  If you fail to do this, your matching funds will continue to be placed the the money market account portion of the plan.

                //I'm helping my wife set this same stuff up tonight.  Same employer.  I think Fidelity is the obvious choice out of the available providers.

                Comment


                • #23










                  If it helps to have more information on my new role, my base gross annual salary is 190k. I have a stay-at-home wife at the moment, no kids. I am renting a 1800 apartment. Don’t have a car loan. Have the 9k combined education loans from my wife with interests ranging 4-6%.

                  You spoke about both Roth 403B and traditional 403B. You recommend to try and max both of them? What about saving for down-payment? What strategy should I use?
                  Click to expand…


                  WCI gave you an answer to this, but I’m not sure he had read through all of the messages. Student loans of $9k at 4 – 6% should be knocked out first. Since you have decent Fidelity options through your ORP and it has a match where (I presume) the 403b doesn’t, it makes more sense (based on the little I know at this point) to focus on the ORP & get maximum match because you are earning under the threshold (at least $245k) and will get an 1.85% “over-match” – that’s incredible. I really can’t go beyond this recommendation at this point, however.
                  Click to expand…


                  I’m pretty sure the ORP is the 403(b).  You have a mandatory contribution and match in this program.  There is additional room for voluntary contributions in the 403(b).  Then you have a governmental 457(b) option as well.  They should have given you an updated benefits page that gives the most simple explanation on the second page.

                  Please note that all of your matching funds are held in a savings account until you are vested at 1 year 1 day.  You will have to manually direct this money into investments after that point and additionally make sure your future matching is set up to be placed into the funds of your choice.  If you fail to do this, your matching funds will continue to be placed the the savings account portion of the plan.

                  //I’m helping my wife set this same stuff up tonight.  Same employer.  I think Fidelity is the obvious choice out of the available providers.
                  Click to expand...


                  So, again the math works out. It is 8.5% of your gross pre-tax income? I am still flabbergasted by this.

                  Comment


                  • #24





                    Click to expand…


                    So, again the math works out. It is 8.5% of your gross pre-tax income? I am still flabbergasted by this.
                    Click to expand...


                    It is very nice.  You will be able to put back in tax deferred retirement almost as much as I am as an independent contractor.

                    Comment


                    • #25

                      available providers.




                      Click to expand…


                      So, again the math works out. It is 8.5% of your gross pre-tax income? I am still flabbergasted by this.
                      Click to expand...


                      This brings up a question I've wondered about before -- what do people consider a "good" employer match?

                      At my job we get nothing the first 2 years, then a 7% match from years 2-10, then a 10% match after year 10.  I know compared to many other jobs (like my wife who gets 1.5% max) it's phenomenal, but how well does it compare to others?  Compared to the other universities where I interviewed for my faculty job it was similar, but I know many industries offer much lower.
                      An alt-brown look at medicine, money, faith, & family
                      www.RogueDadMD.com

                      Comment


                      • #26
                        I think typical is a 50% match of your first 6% of salary contributed.
                        Helping those who wear the white coat get a fair shake on Wall Street since 2011

                        Comment


                        • #27










                          If it helps to have more information on my new role, my base gross annual salary is 190k. I have a stay-at-home wife at the moment, no kids. I am renting a 1800 apartment. Don’t have a car loan. Have the 9k combined education loans from my wife with interests ranging 4-6%.

                          You spoke about both Roth 403B and traditional 403B. You recommend to try and max both of them? What about saving for down-payment? What strategy should I use?
                          Click to expand…


                          WCI gave you an answer to this, but I’m not sure he had read through all of the messages. Student loans of $9k at 4 – 6% should be knocked out first. Since you have decent Fidelity options through your ORP and it has a match where (I presume) the 403b doesn’t, it makes more sense (based on the little I know at this point) to focus on the ORP & get maximum match because you are earning under the threshold (at least $245k) and will get an 1.85% “over-match” – that’s incredible. I really can’t go beyond this recommendation at this point, however.
                          Click to expand…


                          I’m pretty sure the ORP is the 403(b).  You have a mandatory contribution and match in this program.  There is additional room for voluntary contributions in the 403(b) up to the yearly maximum of $18,000 (pre-tax) and then they allow after tax contributions (not sure I would do this).  Then you have a governmental 457(b) option as well (with match in 403b and maxing both 403b and 457 you will be at about 25% savings rate).  They should have given you an updated benefits page that gives the most simple explanation on the second page.

                          Please note that all of your matching funds are held in a money market account until you are vested at 1 year 1 day.  You will have to manually direct this money into investments after that point and additionally make sure your future matching is set up to be placed into the funds of your choice.  If you fail to do this, your matching funds will continue to be placed the the money market account portion of the plan.

                          //I’m helping my wife set this same stuff up tonight.  Same employer.  I think Fidelity is the obvious choice out of the available providers.
                          Click to expand...


                          I think the ORP may be a 401a. The 403b and 457 are additional 18k each he can contribute to.

                          Comment


                          • #28













                            If it helps to have more information on my new role, my base gross annual salary is 190k. I have a stay-at-home wife at the moment, no kids. I am renting a 1800 apartment. Don’t have a car loan. Have the 9k combined education loans from my wife with interests ranging 4-6%.

                            You spoke about both Roth 403B and traditional 403B. You recommend to try and max both of them? What about saving for down-payment? What strategy should I use?
                            Click to expand…


                            WCI gave you an answer to this, but I’m not sure he had read through all of the messages. Student loans of $9k at 4 – 6% should be knocked out first. Since you have decent Fidelity options through your ORP and it has a match where (I presume) the 403b doesn’t, it makes more sense (based on the little I know at this point) to focus on the ORP & get maximum match because you are earning under the threshold (at least $245k) and will get an 1.85% “over-match” – that’s incredible. I really can’t go beyond this recommendation at this point, however.
                            Click to expand…


                            I’m pretty sure the ORP is the 403(b).  You have a mandatory contribution and match in this program.  There is additional room for voluntary contributions in the 403(b) up to the yearly maximum of $18,000 (pre-tax) and then they allow after tax contributions (not sure I would do this).  Then you have a governmental 457(b) option as well (with match in 403b and maxing both 403b and 457 you will be at about 25% savings rate).  They should have given you an updated benefits page that gives the most simple explanation on the second page.

                            Please note that all of your matching funds are held in a money market account until you are vested at 1 year 1 day.  You will have to manually direct this money into investments after that point and additionally make sure your future matching is set up to be placed into the funds of your choice.  If you fail to do this, your matching funds will continue to be placed the the money market account portion of the plan.

                            //I’m helping my wife set this same stuff up tonight.  Same employer.  I think Fidelity is the obvious choice out of the available providers.
                            Click to expand…


                            I think the ORP may be a 401a. The 403b and 457 are additional 18k each he can contribute to.
                            Click to expand...


                            I've seen conflicting paperwork on this.  you may be right, I'll try to post when we actually find out.

                            Comment


                            • #29
                              I'm in a different state (Tennessee), but have a similar plan..

                              State university pays me (relatively small) base salary - Mandatory enrollment required in defined benefit (pension type plan - managed by the state) OR the ORP (which gives you control over investment choices offered in the plan).  For both plans employee must put ~6% of pretax salary and employer always contributes another ~9%.

                              State also offers a tiny match of up to $50 per month in 401K

                              Majority of my salary is based on collections from practice management group. They offer a 403B with employer automatic 3% contributions, and then a 3% match (I get 9% total for putting in 3% of pretax earnings).  They also offer a 457 with no match.

                              Complicated, but I'm very happy with the amount of matching/tax deferred space!!!

                              Comment


                              • #30


                                This brings up a question I’ve wondered about before — what do people consider a “good” employer match? At my job we get nothing the first 2 years, then a 7% match from years 2-10, then a 10% match after year 10.  I know compared to many other jobs (like my wife who gets 1.5% max) it’s phenomenal, but how well does it compare to others?  Compared to the other universities where I interviewed for my faculty job it was similar, but I know many industries offer much lower.
                                Click to expand...


                                That's great after the 2nd year. Waiting 2 years is unusual, though. I can see the reasoning as it pays off to make the career permanent. Usually see 6 mos to a year, if not after 30 days or so.
                                Working to protect good doctors from bad advisors. Fox & Co CPAs, Fox & Co Wealth Mgmt. 270-247-6087

                                Comment

                                Working...
                                X