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First Year Attending Budget for debt/savings

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  • First Year Attending Budget for debt/savings

    Hi everyone,

    First time poster. I will be graduating from fellowship and starting a job as a new attending in August of this year. My wife's debt plus mine will be ~$500,000 total. My project first year gross income will be $410,000. My group does not offer a 401K until after the first year is complete.

    How do you recommend savings versus debt repayment. I was planning on using the wealth accumulation rate recommendation of 30%, but wasn't sure what the best way to break that 30% down between debt and savings, especially in light of no 401K the first year. I was planning on maxing a backdoor Roth IRA for me and my wife, which would be ~$12000.

    30% of gross income would be $123,000. I can really only project it my first year because it's an RVU only practice after that and may or may not substantially go up.


  • #2
    1- try and max out your current plan 401k since you will have none this year. also do 2019 rIRA if you havent already.
    2- 20% to retirement. savings next. rest to loans after.


    • #3
      Retirement savings at @20% regardless of pre-tax availability.
      Gross-taxes-Retirement (20%)=spending
      Loan repayments come out of spending, not retirement. If you target WAR at 30%, that leaves 10% for debt. (82 retire, 41 loans). Trim your spending and payoff more on your loans if you can.