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

    That is an insane amount. Does he/she have a path to loan forgiveness? That may be the best choice, especially if they’ve been doing ibr already.

    in reply to: Advice for a deep-in-debt FP? #31299 Reply
    Liked by Vagabond MD
    Avatar jhwkr542 
    Participant
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    Joined: 02/15/2016

    Always best to have options. Look around and see if you can find other openings/get other offers. Always best to negotiate from a position of strength. Especially first coming out, it’s best to see all the models and get an idea of what the salary and benefits are in your market you’re looking at, even if you really want to stay at this hospital.

    in reply to: Hospitalist position #31058 Reply
    Liked by jhawk
    Avatar jhwkr542 
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    Status: Physician
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    Joined: 02/15/2016

    I’m rather new to investing and I too have been struggling feeling good about putting more money into the market right now.  (Especially since I don’t trust our incoming administration and I’m afraid they are going to really screw things up).  HOWEVER, I hear you all loud and clear that since I’m 20-30 years away from retirement, I need to focus on the long term.  Its hard to ignore stories like this though:

    http://www.barrons.com/articles/bill-gross-stocks-are-vulnerable-raise-cash-1481058844?mod=BOL_hp_highlight_8

    And to be honest, I don’t really know what he means “raise cash.”  Does that mean sell some stocks and buy bonds?  All I own, for the most part, is index funds, 80/20 stocks and bonds.

    Curious to hear people’s thoughts.

     

    Click to expand…

    A couple of points to make:

    1. If this most recent election has taught us anything, it’s that people don’t need to have any knowledge about anything to write anything anymore.  Just throw out anything on the internet you want and people will read it.  The more fear/anger inducing, the more likely people are to both read it and worry it’s true.  You can find any stat to back up just about any argument too to make it look legit.  #hottakes

    2. I’m assuming by cash, he means what you put in savings/money market accounts/CDs, not bonds. (article blocked for me)

    3. These articles seem to come out every week, and you should always ignore them.  Anecdotal point:  If you look at the original poster from 11/28/2016 when there was hesitation to invest at that time to now, VTSMX (Vanguard total stock index) has gone from $55.39 to $56.49 as of 12/7/2016.  The original poster, by not investing on 11/28, would have lost 2.0% potential returns so far.  Are they set to lose more? Nobody knows. The market goes up, it goes down, goes up a little, down a little, up a lot, down a lot.  You just can’t predict it.  If you gamble and miss out on those 2 weeks where it goes up 2%, then that’s not an insignificant loss.  This is why the majority of studies have simply said the passive investor, by putting their money in passive index funds and leaving it, outperforms active investors, even those who are paid to manage money.

    in reply to: investing at the top of the market #30812 Reply
    Avatar jhwkr542 
    Participant
    Status: Physician
    Posts: 1338
    Joined: 02/15/2016

    I really like reading these, congrats to everyone!  Mine:

    1. Graduated fellowship and signed on with one of the last remaining private, physician-owned groups in town (very stable job as well)

    2. Found WCI website and started the long process of educating myself financially

    3. Made adjustments to my life as a result of #2

    A.  Paid off car loan because it’s stupid

    B.  Started maxing retirement accounts (educated in time to understand the implications of my wife getting access to a 457b at her academic job on top of her 403b)

    C.  Got disability insurance

    D.  Transferred savings to ally account

    in reply to: Financial goals you've achieved this year (2016)? #30363 Reply
    Liked by hatton1
    Avatar jhwkr542 
    Participant
    Status: Physician
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    Joined: 02/15/2016
    Savings for next car  $                                               500
    529 College Fund  $                                           1,000
    Travel  $                                           1,000
    Auto & Transport  $                                               851 $600 loan, 2.5yrs left

    These are where I see opportunities for increasing savings for downpayment/retirement.  Kids can pay for their own college.  $12,000 for a yearly vacation sounds pricey.  You’re planning on saving $6000 a year for a new car?  When you’re stretched thin, I don’t see the point of putting that much towards a car, especially when you already have a car loan.  Pay that one down and drive it until your cars die.  One of my biggest financial regrets (and I haven’t even had that long to make too many) was my wife’s convincing me to finance a used car during residency that was out of our budget.  One of my best financial decisions was paying it off and increasing cash flow.  No more $500/mo payments.

    in reply to: Is 1.3-1.5m house crazy or doable…? #30359 Reply
    Avatar jhwkr542 
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    Joined: 02/15/2016

    I’m not sure the needle will be moved THAT much with regards to taxes.  The Republicans don’t have a filibuster-proof majority in the senate, so that will tame down some grand plans.  Also, remember many Republican politicians didn’t like him either.  His plan to cut taxes would certainly benefit high income earners more, but that’s if he gets it enacted.  His proposal is such a massive overhaul of the current tax brackets.  It’ll be an interesting 4 years, to say the least.

    in reply to: Trump and Taxes #28988 Reply
    Liked by MochaDoc
    Avatar jhwkr542 
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    My wife has had a similar experience and you probably want it withheld at the supplemental rate.  Taxes are withheld from your paycheck based on what that paycheck projects your yearly income as.  If you make $50k and are in the 25% tax bracket, you don’t actually pay 25% in taxes.  You pay 25% on every dollar over about $40k (or whatever the cutoff is).  Taxes will be withheld at whatever your tax rate is calculated at.  When these calculations are made on every paycheck, it thinks you’re making your usual $50k.  When you add $1-2k of supplemental (moonlighting) income, all of this gets taxed at the marginal rate because the other paychecks have taxes withheld thinking you’re making $50k.

    Bottom line:  Your total tax due at the end of the year will still be the same, regardless of how much is withheld.  If you find yourself getting a large return every year, adjust your W-4.

    in reply to: Tax rate for moonlighting wages #28684 Reply
    Avatar jhwkr542 
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    I like the idea of when all their friends get one for the social aspects of phones. You get them a phone and teach them moderation. Even the AAP just backed off their strict screen time limits.

    in reply to: What age did /would you give your child a phone #28307 Reply
    Avatar jhwkr542 
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    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 
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    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 
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    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 
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    Joined: 02/15/2016
    Earnest refinancing bonus

    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 
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    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 
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    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
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