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Mid 30s finances critique please

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  • Avatar NationalPark 
    Participant
    Status: Physician
    Posts: 18
    Joined: 06/22/2019

    Many thanks for all the replies. I guess I thought I knew what I was doing, except I knew the vast consensus was that I needed to start the taxable account.

    I am 2 years out of training at this point.

    Love my job. Family in area. Not going to move despite high COL.

    #228061 Reply
    abds abds 
    Participant
    Status: Physician
    Posts: 241
    Joined: 01/16/2017

    It seems to me that it’s a good thing you’re here asking questions. I think you need to stop and make an actual plan before doing anything else.

    Figure out what your actual expenses are.

    $150k a year saved is great but are you and spouse both going to continue working forever? Is this savings sustainable? Consider at least a 5% (compounding) annual return in your retirement calculations for the appropriate stock investments and 401k.

    Step doctrine is correct but backdoor Roth is an exception and is legal.

    If you can refinance from 30yr for 10k to 15yr for 12/mo I would for sure.

    #228069 Reply
    Avatar Tim 
    Participant
    Status: Accountant
    Posts: 3030
    Joined: 09/18/2018

    a) If you hit 25% of gross for retirement savings you will be in great shape.
    b) “80 % in VTSMX and 20% in a bond index?” AA is a personal choice. Reasonable.
    c) Exhaust ever tax advantaged opportunity for you and spouse and the fill taxable until you hit 25%. Keep this taxable account separate so you don’t commingle funds.

    If you hit the above, you will be “golden”. You won’t be able to afford everything because of the housing and cost of living. Keep a 3-6 months EF and insurance.
    The key is your income and retirement savings rate. Pay yourself first. That plan will make you very wealthy, secure and “wise”! Keep you investments simple, there is no perfect portfolio. You will be be fine.

    #228070 Reply

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