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What do residents do for retirement savings?

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  • Avatar Wiscoblue 
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    Status: Physician
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    Joined: 05/17/2017

    i don’t think there are many programs that have 401k or any such pretax savings for residents. So what do you guys do, if anything, to start a retirement account?

    #197953 Reply
    ENT Doc ENT Doc 
    Participant
    Status: Physician
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    Joined: 01/14/2017

    Roth IRA
    Taxable
    Debt management

    #197958 Reply
    Liked by DCdoc, CordMcNally
    CordMcNally CordMcNally 
    Participant
    Status: Physician
    Posts: 1622
    Joined: 01/03/2017

    Learn the basics of personal finance and investing is about the best thing you can do for yourself right now.

    “But investing isn’t about beating others at their game. It’s about controlling yourself at your own game.”
    ― Benjamin Graham, The Intelligent Investor

    #197959 Reply
    Liked by ENT Doc
    Avatar Duckworth 
    Participant
    Status: Physician
    Posts: 10
    Joined: 05/07/2018

    I feel like most places have a 403b or 401k, just with no matching.

    1) Ensure you get any match on Roth 401K/403b

    2) Roth IRA (or just go straight to Roth IRA first if no match).  Single filers max for 2019 I think is $6000 which is probably all i oculd afford as a resident anyway

    Debt management plays a large role in priorities.  Decisions you make now about how you handle your loans can have large ramifications in the future (repayment plan choice in residency, whether or not you think you may go for PSLF or other forgiveness etc).  Really WCI has already laid it all out here, one of the best posts ever:

     

    Financial Waterfalls for New Residents and Attendings

     

     

    #197961 Reply
    Avatar DCdoc 
    Participant
    Status: Physician
    Posts: 327
    Joined: 06/14/2016

    If you can fully fund a $6000 Roth as a resident, you’re probably already better than 90% of other residents. I would echo the comments above and add: 1) take some nice (though not overly expensive) vacations. Residency is brutal. You need time to rejuvenate. 2) Be patient. Learn good financial habits. But be patient. The journey to FI isn’t fast, but after residency it accelerates exponentially.

    #197962 Reply
    Liked by Lordosis
    Avatar Wiscoblue 
    Participant
    Status: Physician
    Posts: 138
    Joined: 05/17/2017

    I was asking for my daughter who is a resident. She has no loans or debts and also has some passive income from an investment brokerage account in which my wife and I have been gifting her to the max every year. I started a Roth IRA for her and have put in $5.5k for 2018 and $6k for 2019. I was just asking to see if people are doing anything different. My partner said to me today that I should have started a traditional IRA instead of a Roth.

    #197964 Reply
    Avatar Wiscoblue 
    Participant
    Status: Physician
    Posts: 138
    Joined: 05/17/2017

    Duplicate.

    #197968 Reply
    Avatar Panscan 
    Participant
    Status: Resident
    Posts: 577
    Joined: 03/18/2017

    Max Roth, max 401k max hsa

    Laugh maniacally at the snowball that is starting

    #197984 Reply
    Liked by Wiscoblue
    Avatar coug16 
    Participant
    Status: Resident
    Posts: 31
    Joined: 01/17/2016

    No match at my program but have maxed Roth IRA for spouse and myself x3 years and Roth 403b and 457 x2 years now that I can moonlight. Will pass net worth into positive with one year of residency to go so that was the goal.

    #197985 Reply
    Liked by Wiscoblue
    Avatar wa2106 
    Participant
    Status: Physician
    Posts: 114
    Joined: 11/29/2017

    The best financial thing you can do for her is to make sure she is saving some of her money currently.  If your match/gift is allowing her to spend the entirety of her earnings you may be setting up bad habits for later.

    I knew several co-residents who had money from parents who lived well beyond their means and based on current Instagram accounts, continue to do so.

    But:

    -403b to match

    -Roth

    -HSA

    #197989 Reply
    Lordosis Lordosis 
    Participant
    Status: Physician
    Posts: 338
    Joined: 02/11/2019

    If you are filling up her rira and more to brokerage then she could max her 401/403. If there is a Roth option that would be better.
    Don’t listen to your partner on money matters anymore. Roth is likely way better for a resident unless she has significant other income.
    If she has an HSA getting that started early would be awesome as well.
    By having her max the work plans she is kind of learning not to live on her full income.

    “Never let your sense of morals prevent you from doing what is right.”

    #197994 Reply
    Liked by Wiscoblue, E5797
    Avatar ZZZ 
    Participant
    Status: Spouse
    Posts: 298
    Joined: 06/18/2018

    ‘My partner said to me today that I should have started a traditional IRA instead of a Roth.’

    He’s not smart about finance.

    Keep doing what you’re doing, encourage your daughter to read up on personal finance so when she takes the reins she can continue to capitalize on the huge advantage she has been given by you.

    #197995 Reply
    Avatar Peds 
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    Joined: 01/08/2016
    Splash Refinancing Bonus
    i don’t think there are many programs that have 401k or any such pretax savings for residents.

    Click to expand…

    false. many do.

    So what do you guys do, if anything, to start a retirement account?

    Click to expand…

    rIRA.

    debt.

    thats all a resident really needs to worry about as many do not have a HSA, but sure also that.

    #198066 Reply
    Liked by Wiscoblue, Zaphod
    Avatar Peds 
    Participant
    Status: Physician
    Posts: 3033
    Joined: 01/08/2016
    My partner said to me today that I should have started a traditional IRA instead of a Roth.

    Click to expand…

    your partner needs to spend more time on this site…

    #198067 Reply
    Avatar bean1970 
    Participant
    Status: Physician
    Posts: 425
    Joined: 07/12/2017

    I maxed my IRA (I’m old so there was no Roth and maxing was $2500 at the time)

    Once I was married after PGY-1 year we stashed my entire income (IRA now and brokerage) and lived on the other.

    We were military and there was no TSP back then either. So everything we stashed was in our own accounts

    #198073 Reply
    Liked by Wiscoblue

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