First off, I sincerely apologize if I come across as a novice. I've been voraciously reading the WCI blog, WCI book, Bogleheads wiki in attempts to actually understand some modicum of financial literacy before being engulfed in the storm that is intern year.
Incoming IM intern with plans of doing fellowship
ASSETS (currently):
Checking: 15K
BOA MMA: 5K (this was dumb of me to do back in early medical school), earning pennies a month
LOANS
Federal Unsubsidized: $50K at 5.84% (fortunate to have parent help and merit scholarships)
Budget in HCOL City for Residency:
Take Home: ~$3500/mo
Rent: $1425
Utilities: $100
Parking: $170
Gas: $60
Groceries: $200
Entertainment/Eating Out: $400
Disability: ~$150
Max-out Roth IRA: $458
Gym: $50
REPAYE (1st yr): 0
Roth 403b: $300
Discretionary: $187
Questions/Planned Actions:
1. Is it smart to do REPAYE instead of standard repayment ($550/month)? My reasoning was that if I use that money for max-ing out Roth IRA + adding to 403b roth, the potential growth over 30+yr would exceed the amount of money I may say by paying off loans in Standard Plan vs REPAYE ($4k difference per AAMC calculator.)
2. I plan on keeping $15K in checking for E-fund, getting rid of BOA MMA and instead placing that $5K into roth 403b since I will be nowhere near maxing that out during residency
3. For my roth IRA, I'm probably looking at Vanguard (don't want to have to use a DFA-advisor), interested in passively-managed life-cycle (75%US stocks/25%bonds) or potentially a target date with relatively similar percentages.
4. My school has referred us to a NWM CFP. I'm a bit hesitant to go through him for Disability (first off, NWM may not have the best definitions of "own-specialy/occ", and I believe he is a semi-captive agent). His agency also semi-endorses cash-value life insurance, which sent up red flags immediately. I plan on attempting to get $5k/month DI (non-cancelable/guarenteed renewable, residual disability, own-specialty, FPO for at least up to $10k/mo). Would you guys agree?
5. Since I have no dependents and am single - I don't think that it is necessary I get life insurance at this point. I will be 27 when I start residency, and would plan on getting life insurance at the end of residency (using term4sale.com, 30yr, level premium, >1million)
Thanks for all your help!!!
Incoming IM intern with plans of doing fellowship
ASSETS (currently):
Checking: 15K
BOA MMA: 5K (this was dumb of me to do back in early medical school), earning pennies a month
LOANS
Federal Unsubsidized: $50K at 5.84% (fortunate to have parent help and merit scholarships)
Budget in HCOL City for Residency:
Take Home: ~$3500/mo
Rent: $1425
Utilities: $100
Parking: $170
Gas: $60
Groceries: $200
Entertainment/Eating Out: $400
Disability: ~$150
Max-out Roth IRA: $458
Gym: $50
REPAYE (1st yr): 0
Roth 403b: $300
Discretionary: $187
Questions/Planned Actions:
1. Is it smart to do REPAYE instead of standard repayment ($550/month)? My reasoning was that if I use that money for max-ing out Roth IRA + adding to 403b roth, the potential growth over 30+yr would exceed the amount of money I may say by paying off loans in Standard Plan vs REPAYE ($4k difference per AAMC calculator.)
2. I plan on keeping $15K in checking for E-fund, getting rid of BOA MMA and instead placing that $5K into roth 403b since I will be nowhere near maxing that out during residency
3. For my roth IRA, I'm probably looking at Vanguard (don't want to have to use a DFA-advisor), interested in passively-managed life-cycle (75%US stocks/25%bonds) or potentially a target date with relatively similar percentages.
4. My school has referred us to a NWM CFP. I'm a bit hesitant to go through him for Disability (first off, NWM may not have the best definitions of "own-specialy/occ", and I believe he is a semi-captive agent). His agency also semi-endorses cash-value life insurance, which sent up red flags immediately. I plan on attempting to get $5k/month DI (non-cancelable/guarenteed renewable, residual disability, own-specialty, FPO for at least up to $10k/mo). Would you guys agree?
5. Since I have no dependents and am single - I don't think that it is necessary I get life insurance at this point. I will be 27 when I start residency, and would plan on getting life insurance at the end of residency (using term4sale.com, 30yr, level premium, >1million)
Thanks for all your help!!!
Comment