WCI graciously posted his budget to another forum a few years back as a new attending and I broke down his numbers to get an idea if my future attending financial plan made sense.
My rough financial plan:
1) Rough budget with minimal income of $200k split into fifths for ages 30-50
20% "Thanks": Giving
- currently my wife and I already tithe plus give about 5% in gifts
20% "Save": Retirement
- hopefully mostly in tax advantaged accounts, especially if an independent contractor
20% "Duty": Taxes
- good estimate on that level of income, especially with tax deferred accounts, large charitable giving, no state income taxes
20% "Home": Mortgage + Utilities
- 15yr <$500k, preceded by 5yrs of school loan repayment and saving downpayment
20% "Sustain": Living
- Food, Clothing, Transportation, Insurance, Travel (my favorite "toy")
2) After 20 work years with 20% savings ($40k) = $1 million if conservative 3% real ROI = $40k/year with a 4% withdrawal rate that could sustain me from age 62-92 with a large "buffer" from social security and medicare.
3) For years 50-62 start slowing my work hours down and living off my part time income. Worse case scenario: use this as a time to play catch up or make more of a retirement "buffer".
WCI numbers in my categories:
Income, Gross: 17647x12 = $211,764
11.3% Giving = 1990
22.8% Saving = 3406+622 =4028
22.2% Taxes = 3925 (he lives in an income tax state)
26% (21.5% w/o rental) Housing: 3180 + 816 + 608 = 4604 (3788)
17.6% Living (kids included) = 336+829+1235+700 = 3100]
How does your budget breakdown with these 5 categories?
My rough financial plan:
1) Rough budget with minimal income of $200k split into fifths for ages 30-50
20% "Thanks": Giving
- currently my wife and I already tithe plus give about 5% in gifts
20% "Save": Retirement
- hopefully mostly in tax advantaged accounts, especially if an independent contractor
20% "Duty": Taxes
- good estimate on that level of income, especially with tax deferred accounts, large charitable giving, no state income taxes
20% "Home": Mortgage + Utilities
- 15yr <$500k, preceded by 5yrs of school loan repayment and saving downpayment
20% "Sustain": Living
- Food, Clothing, Transportation, Insurance, Travel (my favorite "toy")
2) After 20 work years with 20% savings ($40k) = $1 million if conservative 3% real ROI = $40k/year with a 4% withdrawal rate that could sustain me from age 62-92 with a large "buffer" from social security and medicare.
3) For years 50-62 start slowing my work hours down and living off my part time income. Worse case scenario: use this as a time to play catch up or make more of a retirement "buffer".
WCI numbers in my categories:
Income, Gross: 17647x12 = $211,764
11.3% Giving = 1990
22.8% Saving = 3406+622 =4028
22.2% Taxes = 3925 (he lives in an income tax state)
26% (21.5% w/o rental) Housing: 3180 + 816 + 608 = 4604 (3788)
17.6% Living (kids included) = 336+829+1235+700 = 3100]
How does your budget breakdown with these 5 categories?
Comment