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  • Saving during residency

    I'm sure this question has been asked previously, but definitely could use some guidance. Currently a 3rd year resident, trying to figure out where to put the money I have saved that can be the most beneficial for me long term. Currently have about 25,000 in a retirement plan thats offered, most of it is split between a roth and a 403b, and I have about 32,000 in cash in a savings account and the interest rate is atrocious. Any suggestions on where I should put the cash?

  • #2
    The cash is your emergency fund - have 6 months worth. Anything over that, would do Roth IRA.

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    • #3
      Anything you will need within the "short term" (the next 5 years) should be kept liquid. Put together a financial plan to get a reality check on your short- and long-term goals. In the short term, liquidity and safety are bigger priorities than earnings.

      If you need help with putting together a DIY financial plan, recommend you read Carl Richards' The One Page Financial Plan. If you need help understanding how to put together a portfolio for the long term and appropriate behavior, read Simple Wealth, Inevitable Wealth. And if you need help coordinating all the intricate details of planning and investing, see a fee-only CFP who truly does financial planning, not just investment management.
      Working to protect good doctors from bad advisors. Fox & Co CPAs, Fox & Co Wealth Mgmt. 270-247-6087

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      • #4
        What do you consider "long term"?  Where to put your money will vary depending on what your time horizon is.

        Here's a post you may find useful - Long Term Investment Returns

        Here is where I put my money - Stepwise Approach to Retirement Savings

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        • #5


          What do you consider “long term”?  Where to put your money will vary depending on what your time horizon is.
          Click to expand...


          Since short term, as articulated in my post, is the next 5 years, long term is anything beyond. There is no middle ground.

          Undefined needs within the short term (such as an emergency fund) should be kept liquid in a savings or MMA. Defined needs, according to the timeline in your financial plan (Ex's: a wedding for $25k in 3 years or a house downpayment of $100k in 4 years) should be kept in an instrument timed to mature at date of need, such as a high quality corporate bond or CD.
          Working to protect good doctors from bad advisors. Fox & Co CPAs, Fox & Co Wealth Mgmt. 270-247-6087

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          • #6
            Sorry Johanna, you were very clear.  I should have clarified I was directing that question at Ifixfeet. #OOPS

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            • #7




              Sorry Johanna, you were very clear.  I should have clarified I was directing that question at Ifixfeet. #OOPS
              Click to expand...


              No problem!
              Working to protect good doctors from bad advisors. Fox & Co CPAs, Fox & Co Wealth Mgmt. 270-247-6087

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