My first year as an attending

[gvs.psych]

So I’m just halfway done with with my first year as an attending, but I can basically see where things are gonna end up by June - unless I make drastic changes! But I’d love some input on improvements I can make next year.

Total Pay: slightly over $300000

Tax: $75000

Living expenses: $75000

Spouse NP school: $25000

Mortgage down payment: $28000 (close on a $520k house in a few weeks, got excellent rate on doctor loan)

After tax Index funds (50/50 bonds and equities): $55000

Piano: $37000 (Both musicians, can’t survive without it).

403(b): $18000

So moving into next year, won’t be saving for another mortgage, my spouse will have only one semester left, we won’t need another piano. Living expenses will likely creep up to $90000 given the house, but we could likely still add the two backdoor Roth’s, and increase after tax investment to $100000.

Thoughts?

[Hatton]

Did you pay cash for the piano or finance it?  Do you have loans other than a mortgage?  Did you recently start reading WCI?

[Lithium]

Do the backdoor Roth for 2017.  You have until the tax deadline.

Use an HSA in you have a HDHP.

[VagabondMD]

Thank goodness you will not need another piano! (How about an organ?)

It looks like you are on the right path.

[Peds]

get the roths done this year.

as a musician i understand the pull....but 37K.....<1 year out of residency? on something you clearly didnt have before yet couldnt survive without...

[gvs.psych]

hatton1 wrote:

Did you pay cash for the piano or finance it?  Do you have loans other than a mortgage?  Did you recently start reading WCI?

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No other debt other than mortgage. Been reading for a while and have the book.

Piano is financed at 0% but will be paid by June, and so will end the year as described.

[Hatton]

I also have an antique baby grand but I was 5 years out before I bought it.

[gvs.psych]

Peds wrote:

get the roths done this year.

as a musician i understand the pull….but 37K…..<1 year out of residency? on something you clearly didnt have before yet couldnt survive without…

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Yeah, what can I say.

Its not a terrible investment, pianos keep getting more expensive, and it comes with a 100% by-back guarantee so at the very worst it won't lose any value other than inflation, even as I keep getting joy from it.

[homanga]

Only thoughts would be assume no match options for the 403b? (i.e additional pre-tax savings). HSA? Definitely want to do both backdoor roth's for another 11k in retirement funding. Also not sure your age etc but a 50/50 equity/bond ratio is probably significantly higher than you need especially just starting a full attending job. I'd probably go 100% equities for the first year or so and then start working toward a 80/20 ish ratio, not sure you need a strict allocation from the outset. Either way I'd say 50/50 is significantly conservative.

 

 

[gvs.psych]

I can get a match from next year, which will be nice!

Yeah I've read a lot of posts here about equities, bonds, and am firmly committed to the 'buy and hold' approach over the long term. Still thinking about the asset allocation that I'm most comfortable with.

[Hatton]

The right allocation is what is comfortable for you.  Quite a few posters here are 90-100% equity.  Many of them have not experienced a bear market.  If you think you would panic and sell into a bear market or correction then your allocation is fine.

[gates_2]

What brand of piano? I'm just finally getting around to tuning my upright but I do have a 5 year goal of owning a Steinway model B.

[Hank]

My understanding was that you practically couldn't give away a piano today.  While a Steinway might still command a premium, you can do pretty nicely on a used Yamaha or Bösendorfer at an estate sale.

[gvs.psych]

Its an Estonia L190, handmade in Europe, really a terrific instrument. I used to own a Kawai RX-3 which was about $15000, I sold it for slightly more than that, they retail around $50 000 but you can get them for less. New Steinway's are excellent but very expensive (> $70000), as are new Bosendorfers.

There is literally no comparison between buying a new or fully restored piano as a serious instrument and a buying an older piano where the main goal is to have a piece of furniture - the pianos that you 'can't give away' are typically going to next extensive restoration to be a good experience for a serious musician. To restore a bosendorfer can cost around $50 000 so buying one on an estate sale might not be the best idea. A used Yamaha is a really good option I agree, that would have been a more conservative choice, but between my spouse and I we play around 3 hours a day and believe the extra expense is well justified. New or almost new european pianos and handmade american pianos (like Mason and Hamelin) continue to become more expensive and are produced in limited quantities.

[I Find This Humerus]

gvs.psych wrote:

So I’m just halfway done with with my first year as an attending, but I can basically see where things are gonna end up by June – unless I make drastic changes! But I’d love some input on improvements I can make next year.

Total Pay: slightly over $300000

Tax: $75000

Living expenses: $75000

Spouse NP school: $25000

Mortgage down payment: $28000 (close on a $520k house in a few weeks, got excellent rate on doctor loan)

After tax Index funds (50/50 bonds and equities): $55000

Piano: $37000 (Both musicians, can’t survive without it).

403(b): $18000

So moving into next year, won’t be saving for another mortgage, my spouse will have only one semester left, we won’t need another piano. Living expenses will likely creep up to $90000 given the house, but we could likely still add the two backdoor Roth’s, and increase after tax investment to $100000.

Thoughts?

Click to expand...

If you don't mind me asking what specialty are you in getting over 300k first year out?