Announcement

Collapse
No announcement yet.

Advice with career move

Collapse
X
Collapse
First Prev Next Last
 
  • Filter
  • Time
  • Show
Clear All
new posts

  • Advice with career move

    Greetings WCI forum,

    I am currently in my last year in a pediatric sub-specialty and my wife is a pediatrician who plan to move for our new jobs. We both have a decent/manageable amount of student debt. I have around 150K and hers is 280K. She is now 6.5 years in her PSLF and I have refinanced my loans and should be able to pay them back in 4 years or less. My biggest question, since we will be moving to a new job next July, is what to do with our current investments.

    Retirement Accounts: I have one 403b from my current employer and one from residency and she actually has 3 separate 403b from residency, 1st job and current job. I have also opened up two back door Roth IRA accounts for each of us and funded those this year after reading more about this option. What is the best strategy going forward with all the 403b as we move hopefully to our final destination?

    Savings: We have around 75K in savings and have moved 50K into a high interest savings bank for a future down payment towards a house. The other 25K is an emergency fund. Could there be a more optimal way to handle this money?

    Also I took a couple year between residency and fellowship as a pediatric hospitalist and was convinced into opening a whole life insurance plan which I am currently in the works of surrendering even though it will cost me 25% of my total investment. Any advice would be greatly appreciated.

    Thanks

  • #2
    welcome.
    glad to see more pediatricians. more is always better.

    1- easiest is to move the old work plan to the new work plan. consider converting but likely you are in 24% bracket so dont know if i would do that.
    2- the efund should also be at ally. the house fund depends on how soon and how much you need to buy a house.
    3- get rid of the whole life. dont make that mistake again.

    Comment


    • #3
      Originally posted by torque20 View Post
      Also I took a couple year between residency and fellowship as a pediatric hospitalist and was convinced into opening a whole life insurance plan which I am currently in the works of surrendering even though it will cost me 25% of my total investment.
      You won't have lost 25% of your investment because whole life policies aren't investment vehicles.

      What do you mean by 'Backdoor Roth' accounts? It's just a regular old Roth account but you convert money you put into a traditional IRA account.

      Comment


      • torque20
        torque20 commented
        Editing a comment
        Yes thank you for the clarification. In regards to the whole life insurance policy at this point the cash value is only 75% of what I contributed over the past 5 years. Also, yes I opened both traditional and Roth IRA's for each of us and converted the money over

    • #4
      Replace the WLI with term as you and your spouse determine your needs.
      Repeal and replace, not just repeal.

      Comment


      • #5
        you need to get a handle on what the fees are in all of those 403b accounts. For your wife, if her current place has the lowest fees and best variety of index funds then she should roll those 2 previous ones into her current plan. If her current place isn't the best, stay pat and see what her next retirement plan looks likes in terms of fees and index fund options when you guys move. Same goes for your two 403b accounts. Up to you to decide if you want to convert any of the 403b money into a Roth IRA. Lots of debate about that in this forum. Personally I think if you're in a no-state-income-tax state right now and suspect you may be in a state with an income tax, and you're at most in the 24% tax bracket this year, then I'd convert up to the top of the 24% bracket. I know others will disagree

        Comment

        Working...
        X