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  • Avatar EndoRobert 
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    Scott Galloway, NYU b school professor who also hosts a great podcast with Kara Swisher about tech and finance called Pivot. He’s tremendous. As is his new book the video is based on.

    in reply to: The Happiness Curve #240276 Reply
    Liked by Anne, Zaphod, CM
    Avatar EndoRobert 
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    Speaking of skewed, Emily Oster is well respected economist, but not sure using a Washington Times editorial that ends like this: “ What’s illogical is the sudden interest of the left in the survival of 20,000 infants, when no concern is given to the lives of the 1 million unborn ended by abortion each year. This figure is likely to grow now that there’s Obamacare to encourage abortion. The commitment to life, born and unborn, must be preserved, regardless of what the misleading statistics say.“ is really gonna convince anyone who doesn’t already share your beliefs.

    Avatar EndoRobert 
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    Is this all the money they have?

    Isn’t the worst situation, $1.2m, even if invested very conservatively, paid off house, plus a doctor’s-salary social security contributions. Unless they have crazy overheard, would imagine they’ll be ok.

    Avatar EndoRobert 
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    Really guys. Sell the car even at a loss? It is not like he is starving. I agree that it was a bad idea to finance an expensive car in training but to fix it now seems not worth it. From a behavioral point it might be but practically it would be a pain and not really save all that much.

    Click to expand…

    You’re right. They aren’t starving. (And im admittedly way more debt averse than most here no matter the math) That’s kind of my point. Spouse makes $50k yet they’re taking out loans above tuition. Maybe car is representative of other spending going on?

    And I agree, it’s totally behavioral. But he’s talking about having 400k (med loans, np loans, car, mortgage) in total debt at the end of medical school.  To me, that’s a lot.

    (No sarcasm). Maybe I should’ve said, park in high yield, ace step one, become radiologist and very few financial decisions will sink you. Or make sure wife lands derm NP gig.

    in reply to: What should a 2nd year med student do with a $200,000 gift? #239554 Reply
    Liked by Lordosis
    Avatar EndoRobert 
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    Do you have any other debts?

    If your wife makes 50 why are you needing to take out loans beyond tuition?

    If it were me:
    Be thankful you’re getting this break.

    Get on a written budget and use mint, personal capital etc, to see where your every dollar is going.

    Sell the car (you’re probably upside down) and drive a $5k car throughout school and training.

    Skip the NP program unless you are very confident she’s going to be able to find and work (what’s your plan re: kids?) a job making six figures throughout the rest of school and your training.

    (That takes care of about $90k in loans.)

    Max Roths and any 401k matching your wife may have the next 3 years.

    Cash flow the rest of school.

    Use whatever’s left to pay down the $83k.

    in reply to: What should a 2nd year med student do with a $200,000 gift? #239542 Reply
    Liked by portlandia
    Avatar EndoRobert 
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    Is there a general rule regarding debt repayment, or is it specific to one’s own circumstances (income, NW, tax benefits of debt, etc.)?

    Commercial loan $1.4M 10 year (no balloon) 3.5% fixed, 8 years left, payment is $17K/month

    Home loan $350K 5 year arm 2.75%, resetting 11/1/2019, payment is currently $1700/month

    Car loan $65K 6 year loan 1.75%, 3 years left, payment is $1700/month

    Credit card debt $45K 0% intro term, resetting 1/2020, 4/2020 split about 50/50 on two cards, minimum payment is currently $470/month.

    CD interest income 2.65%-3% 12-18 month CD terms, savings interest 1.5%-2.3% with combined interest income about $50K/year on $2.1M cash flow reserves for annual expenditures (not expenses) about $1.9M.

    Pay off highest interest rate debts off first? Pay off smallest loans first to decrease monthly payments/improve cash flow? Pay off non tax-advantaged auto loans first? Pay off by riskiest attached asset? Pay off everything and wipe out reserves? Pay off debts as they reset from low to high interest rate (5 year ARM, credit cards) or refinance them to pay off highest debt rates first.

    Do not recommend I invest it in these markets instead, you all know how I feel about the current markets, it’s not 2009. I’m more interested in debt repayment strategies. However I proceed, I wanted all debts paid off in next 2-3 years.

    How would you tackle? Thanks in advance.

    Click to expand…

    I would strongly recommend that you take part of your $13M net worth, maybe either your $2M emergency fund or a fraction the $10M you have currently invested and pay off all of this debt tomorrow.

    I can link to the posts if anyone else can’t find them.

    Click to expand…

    No that makes no sense (that might make sense for level 1 index fund peons but to be a true wealthy entrepreneur, I would buy another supercar then take out a loan on the car and reinvest it into the business. Makes much more sense. You got to think outside the box as an entrepreneur)

    Click to expand…

    Earlier in thread, FLP- I’m not trolling.

    Maybe its time time for another self-imposed forum break FLP.

    in reply to: Debt Repayment Strategy #237824 Reply
    Avatar EndoRobert 
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    Splash Refinancing Bonus

    P.S.  Supercars are kind of boring to me now–I got to take multiple rides in a 2-seater F-18 as well as Cobras and other assorted incredible high performance aircraft as a Navy flight surgeon.  Once you go on a high speed low altitude ride in Rainbow Canyon it’s difficult to get excited about a Ferrari or Lamborghini.  And yes, I’m bragging.  And people say HPSP isn’t worth it!

    Click to expand…

    Call sign “Anne” buzzing the tower and then catching the ideal arresting wire with this post!

    in reply to: Partner wants to buy a Super Car worth 150k #234364 Reply
    Liked by Anne
    Avatar EndoRobert 
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    OP: Here’s a recent pod with a critical care doc making 500k/yr by living off the beaten path in Arizona. I’m not saying these jobs are easy to find, but you need to be open to some radical solutions to your radical problem.

    If you start down the 15-20 year path you’ll likely not make the extra payments, life will get in the way.

    How to Fix Your Investment Mistakes – Podcast #115

    in reply to: Student Loan Help! #234171 Reply
    Avatar EndoRobert 
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    I went to the pebble beach concours d’elegance one year. Amazing cars. But the real show is what’s driving around Carmel and Monterey in the week leading up to the show. If you ever want to drive a Ferrari f40 or Bugatti Veyron and not stand out, that’s the place to do it.

    I’m content to just ride in neurosurgeons panamera turbo or anesthesiologist’s carrera 4s (never mind the true super cars), but I like the rule of thumb to pay cash and not let it be more than 50% of yearly income.

    in reply to: Partner wants to buy a Super Car worth 150k #233865 Reply
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    Avatar EndoRobert 
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    What’re your ages and net worth (have you been able to save in training)?

    Have you considered geographic arbitrage? Have you run the numbers on you working more shifts in planned job or locums somewhere lucrative when off? I would strongly encourage wife to NOT cut back until at least half the loans are paid off (and then you still have half a million in loans!!!).

    This year send loans five figure checks every month. Next July start sending them $20,000 checks every month.

    I’m agnostic about PSLF in your case. The numbers are massive but if it were me I wouldn’t want it hanging over me for 7 years, especially if spouse isn’t working AND expenses are going up as we add kids.

    in reply to: Student Loan Help! #233483 Reply
    Avatar EndoRobert 
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    Agreed. Which is why there’s the whole first-half, qualifier part of the paragraph.

    They happen to be paying $0 for childcare and proportionally she does incredibly well, plus family support. It’s a pretty unicorn situation before the 50k gift.

    My point was if you’re paying $.75/1k a month for 1 kid, you’ve just added a newborn who will also need care (so now at $1500-2000/month), what does wife make? If it’s close to 50 and you’re gonna be paying 25k/year in childcare, I was asking if she’d *rather be home* with newborn and 2yo because, if yes, the math is pretty compelling.

    Heck, if they were paying childcare and he wanted to stay home and she could work full time at 125k I’d be great with that.

    in reply to: How to incorporate yearly "gift"? #232692 Reply
    Liked by LabralTerror
    Avatar EndoRobert 
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    I don’t think there’s a right answer here. You and spouse are certainly getting all the big things right.

    If it were me I’d think about- Does mom like working? How is the 170 divided, 110/120 and 60/50 or more like 130 and 40? What’s plan for childcare now that you have a newborn and a 2yo? Childcare is expensive and if wife doesn’t love work I’d be thinking about maybe having her stay home if she wants.

    Things remaining constant however, what I would do for the next ten years:
    5-10k to buy my way out of some call and bump up our vacations. (Allocate how you’d like)
    12k for kids college (I’d dump it all in the 529, but if you want to go up to tax break and then put the rest in taxable for flexibility I think that’s fine)
    28-33k to pay off mortgage and car (yes, they’re *very* low rates, but I want to free up cash flow and I think this is honoring the spending wish more than simply dumping into taxable. And yes, i realize I’m probably losing here mathematically.)

    You’re now 43, have zero debt and a reasonably large college fund. From here I’d-
    10-20k for no call and vacation fund
    Reevaluate 529 and what goals are moving forward
    Use remainder plus freed up cash flow to double savings rate
    Spend the rest

    At 50 I’d be in great shape to cut way back.

    in reply to: How to incorporate yearly "gift"? #232335 Reply
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    Avatar EndoRobert 
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    Trading Places is tremendous.

    https://www.npr.org/sections/money/2013/07/09/200401407/episode-471-the-eddie-murphy-rule

    HBO’s Too Big To Fail is great I thought.

    Inside Job is a good documentary about the same subject.

    in reply to: Any good financial movie suggestions? #231975 Reply
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    Avatar EndoRobert 
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    Joined: 01/12/2019

    Have a plan where (all) the loans are paid off before you make partner. Too many threads here lately about associates having their light at the end of the tunnel be a freight train.

    Hopefully your situation is immune to that, but, even if it is, still behavioral reasons to discharge them early on. (It’s why I wouldn’t fool with pslf—>ibr for your wife’s loans. If you’re making 800k/yr is your wife going to continue teaching? Just pay it off with yours.). Good luck! Y’all seem to be doing really well.

    in reply to: Optimal Student Loan Management after marriage #229234 Reply
    Avatar EndoRobert 
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    Last year we paid down 240k of principle.

    Click to expand…

    You keep maxing out your profit-sharing 401k, HSA, backdoor rIRAs, AND throwing another quarter of a million dollars + at building wealth (debt, taxable, etc) over any extended time frame and you’re gonna win the game, regardless of order IMO. (I’m admittedly too debt averse but I wouldn’t pass up guaranteed 5%.  Another caveat is that your workload needs to be sustainable.)

    in reply to: Low Savings rate with high WAR #228518 Reply
    Liked by CM, Lordosis, Zaphod, Tim
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