I received an email today that I thought the community could help with. I've changed enough details in it that no one is going to recognize this person but the emailer, who received a link to it and hopefully will sign up for the forum for follow-up questions.
Good Afternoon!
I was lucky coming out of Med school as my debt load was relatively
low— about $25,000 in the late 80s. However, I married someone who had no
savings coming in— and was not a great saver earlier in our
marriage.
I went into practice with a family member for a while— no benefits there, though it
allowed me to spend more time with my children. Taking over the
practice, as was the expectation, was not a positive proposition for
me. After working for the buyer for a couple of years and already
suffering from burnout, I left at the end of 2001 and started locums
in 2002.
Following 9/11 our stocks plummeted and eventually we had to sell in
order to survive— and had to get into my partner’s retirement and
take the penalty. We were around 40 years old and back to zero
savings. I continued to work locums on an intermittent basis while raising
my children.
Saving was a challenge , especially when my partner was not working
for about a year and I was working intermittently.
When the children went off to college, I was able to work more regularly,
but still as an independent contractor. We assisted our children in
college. But between their hard work and jobs they held, they came out
debt free. Our assistance did not break the bank for us.
My partner has done pretty well with his 401k in that he has been
almost maxed for the last 4 years . He has maxed what the corporate
match would be. It’s only been the last 3 years that I've been able
to save the entirety of allowed limits in an IRA.
I am FINALLY going to work full time as an employed physician for the
first time since my residency. I’m 53. My hospital employment plan
will have a 403b and a 457b. They offer no matching contributions.
Any recommendations for how best to save at this late date? It’s my
understanding that I can max $24,000 in each plan. I’d like to save
an additional $30,000 per year toward retirement. And we will now max
my husbands 401k .
I hope to work another 12 years. My partner another 6.
Oh, and did I mention that I’ve had a disability this past year? A
foot injury while running in March. Now a hand injury while biking
in August. I’ve made it work on just $4000 per month from a small
disability policy I took out in 1992. And that didn’t kick in til
90 days in. So if I can make a recommendation, it is that all docs
take out such a policy and KEEP IT because they may change jobs or go
out on their own. The policy cost me $125 per month.
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