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Per the WCI’s recommendation, I save 20% of my gross income for retirement.
I max out my 401k, 457b, and made personal and spousal backdoor Roth contributions. I still need to save more than those accounts to achieve 20% for retirement so I invest in a taxable account. I chose to put some bonds in taxable according to my investor policy statement asset allocation.
I did VWITX (0.17), which requires a $3,000 minimum investment.
I will change this to VWIUX (ER 0.09) when I have more bonds in taxable ($50,000 minimum investment).
As an aside, I also make contributions to my kids 529’s, but I consider this giving/spending, not wealth building. Any my current plan for extra money used for wealth/net worth building (pay off debt vs invest) will go to extra mortgage payments. Extra mortgage payments may not be mathematically correct, but it is a luxury I choose to afford.
Yes we use it for expenses.
It just seems ridiculous to save receipts for 20+ years.
The money has value now.
After a few years once I have a year’s worth of contributions saved up in cash (maybe about ~$6k) I’ll invest the excess.
I think that as soon as a lot of docs start taking advantage of PSLF ===>
an expose article will come out in The Atlantic ===>
PSLF for docs will quickly enter the news cycle and draw attention from politicians ===>
2 years later PSLF will no longer apply to physicians somehowFebruary 8, 2018 at 1:04 pm MST in reply to: Is anyone actually getting public service loan forgiveness? #102584Liked by hatton1
Update: Ok so I just called Vanguard’s annuities department and they said that if this is a pretax VA in an IRA they could transfer it into an traditional IRA at Vanguard.
Johanna, based on your response, it sounds like you don’t think this move is possible.
I find the status of this VA confusing… I’m pretty sure its not “in” an IRA anymore… I think the NWM agent took it out of the 401k and put it in this VA as an investment… so like you say Johanna I am pretty sure it is an “investment” outside of an IRA. If that is true than I presume it’s not possible to get the genie back in the bottle and roll it over into a traditional IRA, correct? What a drag.
Thank you for the information!
So you guys are saying Variable Annuities are transferable?
So they could take the VA at NWM and with not too much trouble (pay the surrender fee) get a much lower fee VA at another company?
Hey that’s great news!
It looks like Vanguard has VA and a mechanism to transfer it.
I was asked for the advice.
But I agree with you this is dangerous water to be treading on with family.
What they really need is a reputable fee based financial adviser.
Is there a blog post about trying to project how much you are going to have in retirement accounts? (I remember this one..https://www.whitecoatinvestor.com/iras-rmds-and-the-crisis-of-doctors-with-too-much-money-in-retirement/ off the top of my head)
Or some online tool that some genius has already created I can use to guesstimate these things?
To answer my own question, here is a vanguard RMD tool for 401k accountsAugust 4, 2017 at 5:10 pm MST in reply to: Too much retirement account vs taxable for early retirement? #56855
This is a nifty tool. Vanguard College Savings Planner:
I read this excellent blog post this morning thanks to PhysicianonFIRE’s Sunday Best:
I am now considering seriously changing my earlier plan.
Overloading a 529 is a real concern. Reading other’s plans on this thread is very helpful too!
Again, my plan is to pay for public in-state undergraduate only:
529: Add 10k/year for the first 3 years of life then for the next 15 years add ~2k in 529 (see: tax refund). This ends up with 30k in 529 front loaded then 30k added to 529 over the next 15 years for a total of 60k added to 529; perhaps with growth over time this might become 100k in the 529 when its time for college? (edit: actually according to Vanguard’s College Savings Planner https://vanguard.wealthmsi.com/csp.php with a 6% return this plan can expect to generate 142k)
Taxable: For the 15 years after age three will earmark 3k/year in the taxable account for college. With this there would be about 45k in the taxable account for college. This contribution could easily be scaled up as needed as we get closer to needing the money (and find out what type of people my children turn out to be) but without any risk of incurring a penalty.
Cash Flow: The rest.
These decisions are all so personal. But I enjoy reading other perspectives. Thank you for sharing!
I have young kids, oldest age 3.
1. How much do you plan to contribute in total for one child. 10k/year per child until age 8 (~80k frontloaded) then 2k/year for the tax break until age 18 (another ~20k)… total about 100k/child, with 10 years for the first 80k to grow
2. How much money do you expect to see at the end when the child is ready for college. I hope the 80k doubles. It sure would be nice to have 180k in there when they start. Will it be enough? Room and board for our in state school is 20k this year (pretty nice, right?).
3. Is it going to be used for just undergrad education or grad / professional school or both? The plan is for undergrad in-state public university. Not planning for and will probably actively discourage private school. Waaay to early to plan for professional school at this point.
Worked my way through undergrad and paid it myself. I took out a total of 160k in loans for medical school.
I just made a large payment and completely paid the med school loans off, a little over 3.5 years after residency graduation, 9.5 years since med school graduation. (And I was still able to max out retirement accounts and made backdoor Roth payments as an attending)
Man it feels great!
I am so thankful for this site. I have learned so much.
Family: Me, wife, and two small kids.
Me: 2001 Chevy S-10 160k miles
My spouse: 2015 Honda Odyssey EX-L 8k miles
Effective Tax Rate 28% (Federal + State + Local + SS and Medicare + Property Taxes). 33% Marginal Bracket. Got hit by the AMT. W-2 employees.
DIY by computer using IRS fill in pdfs and excel spreadsheet to check math.
I scan all W-2’s, 1099’s, property tax documents, charitable contributions, etc and save them as pdfs too
I print off the worksheets, hand write on them (because as jenn mentioned they are not fill-ins), and scan them again to save them
I have done things this way for years and can review old filings this way which is nice
Although my situation is pretty simple (wife and I are both W-2 employees) it usually takes me about 6-8 hours to do state and federal taxes. I go pretty slow though and double check my work a lot.
I love the blog and the book. I would be lost without these resources. I fear for those who are unaware. Thank you for the work it takes to makes the site go. I hope it never goes away. I am an academic radiologist in the midwest, late 30’s, 2 years out of fellowship, married with kids.