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MDPhD Mid-PhD Advice?

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  • MDPhD Mid-PhD Advice?

    Hi everyone,

    I know this is already a niche forum, but I'm looking for even more niche advice. I'm a second year PhD student in the middle of an MD-PhD. I have no debt from college, and my current training is fully funded with a modest stipend. I am still able to save a tidy amount, and am wondering what to do with this, and also what my overall game plan should be. I don't have any employer-sponsored retirement options, and I can't put money into any type of IRA due to my stipend being "unearned income". I'll have at least 4 more years of the same level of income and situation (2 more PhD, 2 more MD).

    Any suggestions would be highly appreciated!

  • #2
    You should still be able to contribute to a Roth IRA.  Do you have an HSA through a high-deductible health plan?
    “Work” is a four letter word for good reason.

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    • #3
      So no spouse bringing in a paycheck? If not, then you are correct that you do not qualify to contribute to a Roth because you will report no earned income (sorry, Lithium, can't contribute w/o earned income). But all is not lost - you can start filling up your taxable account space and I believe everyone should have a nice-sized taxable account. Some of the benefits are flexibility (you can use it penalty-free at any time), basis (you'll pay tax only on the growth and income), and tax rates (you'll get to take advantage of lower long-term capital gains and dividend tax rates). So, not as great as a Roth but better than a 401k in many ways. Diversify and rebalance appropriately, do not let emotions be your guide, and never invest any money that you will need within the next 5 years.

      btw, I almost passed over this post because the title appeared to be asking for advice on the benefits of getting your PhD  8O . Headers make a difference!
      Our passion is protecting clients and others from predatory and ignorant advisors. Fox & Co CPAs, Fox & Co Wealth Mgmt. 270-247-6087

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