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  • Avatar jhwkr542 
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    Status: Physician
    Posts: 1330
    Joined: 02/15/2016

    I’d probably still work but only half time. Golf, travel, and drink wine the other weeks.

    in reply to: What would you do with your Financial Independence? #27930 Reply
    Avatar jhwkr542 
    Participant
    Status: Physician
    Posts: 1330
    Joined: 02/15/2016

    200 employees?

    For anyone interested

    http://www.hmc.harvard.edu/docs/Final_Annual_Report_2016.pdf

     

     

    Click to expand…

    I seriously could not stop laughing at this line from the summary: “However, we recognize that execution was also a key factor in this year’s disappointing results.”

    in reply to: Harvard Endowment #26630 Reply
    Avatar jhwkr542 
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    This is an odd topic. I’ll say my clothes cause I couldn’t go to work in my birthday suit.

    in reply to: Most financially valuable possession(s)? #26601 Reply
    Liked by Craigy
    Avatar jhwkr542 
    Participant
    Status: Physician
    Posts: 1330
    Joined: 02/15/2016

    Haha, thanks for posting. It takes some really smart people to figure out how to lose 2% of investments this year. That’s why they’re at Harvard and I studied at state school u.

    in reply to: Harvard Endowment #26599 Reply
    Avatar jhwkr542 
    Participant
    Status: Physician
    Posts: 1330
    Joined: 02/15/2016

    You are going to need a taxable account to save for the house down payment and E fund.

    Click to expand…

    I hope you’re alluding to short term bonds for the down payment. Putting that money in equities is too risky. A CD would be another, even safer choice. He/she’ll want the money to be there when the time comes, not particularly looking to make huge returns in the relatively short timeframe.

    in reply to: Investment plan review #26597 Reply
    Avatar jhwkr542 
    Participant
    Status: Physician
    Posts: 1330
    Joined: 02/15/2016

    1.  Have any student loans?  Those should be a priority if so.  I’m also operating under the assumption that you don’t have any other debts (credit card, etc)

    2. If you’re dedicated to the college fund, I’d at least fund as much as you could in a 529 to get the state income tax reduction.  Then, after that, could consider UTMA.  If you contribute $28k per year for 20 years, that’s a lot of education money.  Probably don’t need that much unless you channel your inner-Duggar.

    3.  Asset allocation looks reasonable (a litle complicated but reasonable if you want to tilt small caps).  Probably doesn’t matter much where you put money right now.  I’d spend more time picking out the best funds from the portfolios.

    in reply to: Investment plan review #26587 Reply
    Avatar jhwkr542 
    Participant
    Status: Physician
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    Joined: 02/15/2016
    Earnest refinancing bonus

    I’m amazed this thread has lasted as long as it has.  If you look at the data, the correct choice is obvious.  Over the past 30 years, the S&P averaged 11% returns annually. The average investor got 3.7%!!!  The only explanation for this is investor behavior (i.e. market timing).  Jack Bogle popularized this theory and mounds of data have proven it.  If you market-time, you lose returns.  Sure, you may get lucky but that 3.7% number implies a lot of people didn’t.  While past returns aren’t predictors of future returns, it’s safe to say that market timing will continue to underperform the indexes.  Let’s say you think the market is due for a correction, but then it goes up for another year, do you invest then or still think the correction’s coming?  Then it goes up the next year…do you invest then?  What if it goes up another year?  Then you invest and the market corrects for the previous year’s return.  Everybody who was invested the whole time gets the first 2 years’ returns whereas the person who waited until after year 3 not only lost money on their investment but lost the returns for the first 3 years.

    Arguments like these remind me of arguments with anti-vaxxers.  At some point, the data is what it is.  If you don’t believe it, then there’s no point in arguing over it.

    in reply to: If the market did crash… #26582 Reply
    Avatar jhwkr542 
    Participant
    Status: Physician
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    Joined: 02/15/2016

    My company provides a lease for everyone in the group. The lease, insurance, gas, and taxes are all paid by the company. The % miles used for personal use is considered income that gets reported to us (e.g. you used the car for business on 10% of the miles. if you used $5000 on gas and lease payment, then $4500 gets added to your w-2 or whatever). Probably a big waste of money but everyone in the group likes new cars and they’re used to it.

    Disclaimer: I haven’t personally run the numbers but this seems to be the most common way I’ve heard it done, so I’m assuming it’s also the most tax-efficient.

    in reply to: Vehicle as a Business Expense #26535 Reply
    Avatar jhwkr542 
    Participant
    Status: Physician
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    Joined: 02/15/2016

    At some point, the complexity isn’t worth it. That extra 1% gets you $250 a year on $25000 compared to ally. Similar to all the credit card churners. I prefer simplicity.

    in reply to: 2% Checking for Physicians #26497 Reply
    Avatar jhwkr542 
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    The short term disability tacks on the 60% for roughly half of the leave. She gets her full paycheck 100% for when the disability hasn’t kicked in.

    in reply to: Maternity Leave #26496 Reply
    Avatar jhwkr542 
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    Joined: 02/15/2016

    If those are the numbers, go for it. I don’t see this decision as a “if you can afford to self insure, don’t buy it” scenario. It’s a risk to buy it, but if you’re confident in the desire(and ability) to have a kid soon, then it’s very low risk with potential for high rewards. Could you enroll in 2 years instead of now? I’d double and triple check the numbers too. Our details: it costs us about $100-150 per month. My wife’s job has its own disability that gets her to 100% of her paycheck. The DI added 60% for about 8 weeks. All after tax money. For a year with a pregnancy, we’d benefit by several thousand dollars. And we did that twice. Hard to get that kind of “return” but since we knew we were going to have more kids, it made good financial sense. We’ll be dropping it ASAP with no more kiddos in the plans. Hard to imagine short term DI being useful in any other scenario where you don’t plan on using it. Probably the best thing to do is to sit down with someone in her benefits office and discuss how much you’d get paid with the insurance in the event of a normal vaginal pregnancy. Then you’ll get the real numbers.

    in reply to: Short Term Disability Insurance? Yay or Nay? #26416 Reply
    Avatar jhwkr542 
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    Joined: 02/15/2016

    I think you should figure out if you’re having another kiddo and if so, when. You’ll also need to get the details of what would be covered and run the numbers. My wife and I had this dilemma and decided for short term disability because it covered pregnancy and provided her more time off to be with the new babies. We also knew we’d be having kids soon. It really worked out when we started popping out kids every year and a half (we’re more fertile than we thought). We’ll be dropping it like a bad habit when the 3rd and final (at least planned) one gets here.

    in reply to: Short Term Disability Insurance? Yay or Nay? #26380 Reply
    Avatar jhwkr542 
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    Joined: 02/15/2016

    I’d think you guys have more liability in your current situation than your new potential 401k.

    in reply to: Do we need financial advisor for our 401k? #26378 Reply
    Avatar jhwkr542 
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    Joined: 02/15/2016

    My wife and I are expecting our 3rd child in December and my peds wife will get 3 months off. I’m not privy to all the details but she will get 3 months off after using sick time and vacation. She has a salaried position at an urgent care affiliated with the children’s hospital in the city. This makes using vacation a no brainer. It will all be paid but we have also paid for short term disability which pays 160% of her usual paycheck (I think that’s what she said) for those weeks she’s using it… Second 6 weeks I presume

    in reply to: Maternity Leave #26377 Reply
    Avatar jhwkr542 
    Participant
    Status: Physician
    Posts: 1330
    Joined: 02/15/2016

    Since it looks like interest accrues daily instead of monthly, making payments as early as possible does save some interest. Probably won’t amount to much in the long run but if you’re looking at the bottom line, earlier payments are better.

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