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What's my next step?

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  • Avatar Bluepluto99 
    Participant
    Status: Physician
    Posts: 32
    Joined: 09/11/2017

    I am 2 years out of residency and need some guidance on what to do with the rest of my money.

    No student debt.

    Single.

    Annual income $370,000.

    Have a house with a mortgage of $140,000 left, 30 year mortgage at 4.25%

    Because I am an employee, I have 401k for retirement. Will do backdoor Roth.

    Taxable brokerage account with Vanguard that is all 100% VTSAX.

    In all, I have $67,000 saved for retirement.

    In my savings account, I have $30,000 with 2% growth.

    I need to save more for my retirement. Get involved in real estate? Put more in taxable account ?

     

    #219020 Reply
    Liked by mero1984
    Faithful Steward Faithful Steward 
    Participant
    Status: Financial Advisor, Small Business Owner
    Posts: 400
    Joined: 06/12/2017

    Do you have any 1099 income? Or is it all W-2?

    Michael Peterson, CFP® | Faithful Steward Wealth Advisors
    http://www.fswealthadvisors.com | (717) 496-0900

    #219026 Reply
    Liked by mero1984
    Avatar Peds 
    Participant
    Status: Physician
    Posts: 3800
    Joined: 01/08/2016

    Taxable. Or go on more dates…

    Avatar mero1984 
    Participant
    Status: Physician
    Posts: 23
    Joined: 06/03/2019

    I am 2 years out of residency and need some guidance on what to do with the rest of my money.

    No student debt.

    Single.

    Annual income $370,000.

    Have a house with a mortgage of $140,000 left, 30 year mortgage at 4.25%

    Because I am an employee, I have 401k for retirement. Will do backdoor Roth.

    Taxable brokerage account with Vanguard that is all 100% VTSAX.

    In all, I have $67,000 saved for retirement.

    In my savings account, I have $30,000 with 2% growth.

    I need to save more for my retirement. Get involved in real estate? Put more in taxable account ?

     

    Click to expand…

    Just curious, how do you have 2% growth in a savings account? which bank is it if you dont mind me asking?

    #219034 Reply
    Avatar Tim 
    Participant
    Status: Accountant
    Posts: 2320
    Joined: 09/18/2018

    You need to “invest” about 30% of your income for retirement.
    Double check the employer options (HSA, DCP)?. Read up on Megabackdoor and see if you can do it.
    The point, define the amount to be saved for retirement and set up the most tax efficient (like the Roth) vehicles with a taxable account for overflow.
    Key you Efund in the savings (3-6 months).
    You can use a separate taxable account or real estate once you get the process flowing.

    #219037 Reply
    Liked by StarTrekDoc
    Avatar jhwkr542 
    Participant
    Status: Physician
    Posts: 1146
    Joined: 02/15/2016

    The only thing extra would be HSA. Then taxable. Real estate can be risky but also rewarding (and possibly a full time side job).

    To mero1984: lots of institutions are giving 2+% for savings account. Many of us use ally online savings for a portion of our cash. Some use vanguard’s settlement fund. Any are fine really. Not worth chasing .2% on $20k. About half of my cash is in brick and mortar local bank, other half at ally.

    #219040 Reply
    ENT Doc ENT Doc 
    Participant
    Status: Physician
    Posts: 3168
    Joined: 01/14/2017
    Splash Refinancing Bonus

    How much do you spend every year?

    #219043 Reply
    Liked by Tim, Lordosis
    Avatar Tim 
    Participant
    Status: Accountant
    Posts: 2320
    Joined: 09/18/2018

    How much do you save every year? I simply don’t care how you spend from a retirement perspective as long as you are paying yourself first.

    VTSAX is tough to beat . Low cost funds and low cost brokerage are complimentary to your savings rate.
    You do have real estate included. Tilt if you wish,
    From AA, consider a bond portion before real estate.

    #219061 Reply
    fatlittlepig fatlittlepig 
    Participant
    Status: Physician
    Posts: 750
    Joined: 01/26/2017

    I am 2 years out of residency and need some guidance on what to do with the rest of my money.

    No student debt.

    Single.

    Annual income $370,000.

    Have a house with a mortgage of $140,000 left, 30 year mortgage at 4.25%

    Because I am an employee, I have 401k for retirement. Will do backdoor Roth.

    Taxable brokerage account with Vanguard that is all 100% VTSAX.

    In all, I have $67,000 saved for retirement.

    In my savings account, I have $30,000 with 2% growth.

    I need to save more for my retirement. Get involved in real estate? Put more in taxable account ?

     

    Click to expand…

    Work on the single part.

    #219063 Reply
    Liked by Lordosis
    portlandia portlandia 
    Participant
    Status: Physician
    Posts: 382
    Joined: 07/07/2017
    medical school scholarship sponsor

    Max 401K and back door roth. Max HSA if available, rest to brokerage account.

    Live on 50% as Physician on Fire advocates, which should be eminently doable if you have no dependents.

    https://www.physicianonfire.com/half/

    Enjoy being financially independent in 15-20 years.

    #219081 Reply
    Liked by E5797
    Faithful Steward Faithful Steward 
    Participant
    Status: Financial Advisor, Small Business Owner
    Posts: 400
    Joined: 06/12/2017
    Just curious, how do you have 2% growth in a savings account? which bank is it if you dont mind me asking?

    Click to expand…

    Ally Bank, ally.com, currently pays 2.2% on their savings. Several other online banks are over 2%, also.

    Michael Peterson, CFP® | Faithful Steward Wealth Advisors
    http://www.fswealthadvisors.com | (717) 496-0900

    #219139 Reply
    Liked by SLC OB, mero1984
    Avatar saildawg 
    Participant
    Status: Physician
    Posts: 299
    Joined: 01/24/2016

    I am 2 years out of residency and need some guidance on what to do with the rest of my money.

    No student debt.

    Single.

    Annual income $370,000.

    Have a house with a mortgage of $140,000 left, 30 year mortgage at 4.25%

    Because I am an employee, I have 401k for retirement. Will do backdoor Roth.

    Taxable brokerage account with Vanguard that is all 100% VTSAX.

    In all, I have $67,000 saved for retirement.

    In my savings account, I have $30,000 with 2% growth.

    I need to save more for my retirement. Get involved in real estate? Put more in taxable account ?

    ions

    Click to expand…

    Just curious, how do you have 2% growth in a savings account? which bank is it if you dont mind me asking?

    Click to expand…

    https://www.doctorofcredit.com/high-interest-savings-to-get/

     

    Plenty of options out there, 2.51% seems to be highest right now

    #219521 Reply
    Avatar Bluepluto99 
    Participant
    Status: Physician
    Posts: 32
    Joined: 09/11/2017

    I do have 1099 from moonlighting. before taxes, probably will be only $5000 this year. What should I do with this?

    I guess Taxable is the way to go but would like to diversify more.

    #219662 Reply
    Avatar Peds 
    Participant
    Status: Physician
    Posts: 3800
    Joined: 01/08/2016

    You could open a solo 401k. Won’t be much.
    Diversify what?

    #219671 Reply
    Avatar Nysoz 
    Participant
    Status: Physician
    Posts: 43
    Joined: 10/23/2017

    I do have 1099 from moonlighting. before taxes, probably will be only $5000 this year. What should I do with this?

    I guess Taxable is the way to go but would like to diversify more.

    Click to expand…

    diversify more? with vtsax you already own 3607 different stocks!

    you can always add slightly more international or reits if you wish

    #219675 Reply

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