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  • Avatar MaxPower 
    Participant
    Status: Physician
    Posts: 338
    Joined: 02/22/2016
    medical school scholarship sponsor

    With those numbers I’ll never be in the 1% by net worth even though I might spend 20+ years as a 1%er by income. Even using a generous 6% nominal return, and contributing over 20% of gross income to retirement accounts for 20 years barely gets me to half of that $10M, and I expect that it will continue to rise in the future as well.

    Oh well. I’ll still have more than enough for my wants and needs which is all that matters anyway.

    in reply to: The 1% #240046 Reply
    Avatar MaxPower 
    Participant
    Status: Physician
    Posts: 338
    Joined: 02/22/2016

    Better late than never.

    in reply to: Appropriate Whole Life Dump of the Week #238207 Reply
    Avatar MaxPower 
    Participant
    Status: Physician
    Posts: 338
    Joined: 02/22/2016

    I guess for some I’m still a whippersnapper. My investing lifetime started in the summer of 2008 when we took $10,000 from the proceeds of our medical school condo sale to fund Roth IRAs (spouse and me). I watched that money, invested in the S&P 500 fund lose almost 40% of its value. My wife was no longer working and I had just started residency, so $4,000 was a lot of money to watch just disappear.

    I stayed the course and invested $10k more in our Roth IRAs as well as $3k per year at the end of 2008 and beginning of 2009 in at that time our only child’s 529 account. I just looked at her statement recently and noted that from that initial $6,000 investment it is currently worth $22,000, so $6,000 of contribution and $16,000 of growth.

    Based on that I feel like I have some idea of how I will react during s downturn. Even though the actual number of the “loss” is of a greater magnitude (tens of thousands now instead of just thousands), the percentages are all about the same. Intellectually, I think everybody on this board knows what the right answer is. Especially for those with long investing horizons, this should be a non-issue. The memory that sticks out most to me about the 2008/09 meltdown was the amount of articles I read talking about how so many people close to retirement had lost so much that they couldn’t retire because their asset allocations were way too aggressive for their timelines. To me that was the most important lesson from that crisis, and is hopefully something I avoid when I get to be that close to retirement and have hopefully won the game.

    in reply to: Wippersnappers #236861 Reply
    Avatar MaxPower 
    Participant
    Status: Physician
    Posts: 338
    Joined: 02/22/2016
    Earnest refinancing bonus

    Easy to predict a slide 2-3 days into it, @entrepreneurmd. Where were your predictions before all of this started?

    And now, in order for it to work, you have to tell us when the recession is over, since that was your advice of when yo get back in, as if that is any easier.

    Where’s that ignore button I have been asking for?

    in reply to: Time the Market with me! #236715 Reply
    Liked by Lithium, Lordosis
    Avatar MaxPower 
    Participant
    Status: Physician
    Posts: 338
    Joined: 02/22/2016

    I don’t see why you wouldn’t do it. It only takes a few minutes and is a way for Uncle Sam to share the losses in the stock market with you. If you’re in the 32% federal income tax bracket, tax loss harvesting would save you almost $1000 in tax liability ($3000 less AGI), plus any benefit you might get from lowering your MAGI for state tax purposes.

    Having lots of different funds spread across multiple investment places increases the complexity some, but is manageable. You can google WCI or Bogleheads for tax loss harvesting partners (funds you can sell from and buy into) to help you.

    in reply to: Tax loss harvesting – can I do it myself? #236201 Reply
    Avatar MaxPower 
    Participant
    Status: Physician
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    Joined: 02/22/2016

    The things that you aren’t asking, but that I would argue are more important in a pay for wRVU model are what control do you have over staffing? If you have an MA that shows up late, or is constantly on the phone for personal stuff and doesn’t get patients back, or if the OR turnovers are terrible you won’t be efficient no matter how high your conversion factor is.

    What control do you have over what types of patients get scheduled into your clinic (if you’re a surgeon or a proceduralist you want lots of operative patients who have been worked up already by PCPs or PAs/NPs)? How onerous is the EMR (the more onerous the fewer patients you can see)?

    You might not be able to get answers to all of these questions directly, but you could ask for average wRVUs for the partners or clinic. Before I graduated from residency I sat down with the residency program’s practice manager and he gave us the current MGMA data and wRVU conversion numbers as well as the wRVUs for the physicians in our program so I had a pretty good idea about how busy they had to be to reach those kinds of numbers.

    If you’re going into an employee hospital setting, you should be shooting for a conversion number quite a bit higher than that for Medicare since the hospital is only paying you for your work, and just collecting all of the revenue for things you generate like radiology studies or labs, therapy, facility fees, inpatient hospital stays, etc. They’ll tell you they have no idea what those numbers are, but in reality they just don’t want to give them to you to see how underpaid you are.

    in reply to: What do you need to know for a wRVU based job? #236003 Reply
    Liked by Dusn, SLC OB, ENT Doc
    Avatar MaxPower 
    Participant
    Status: Physician
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    Joined: 02/22/2016

    My schedule is/was overbooked by about 10% to accommodate for no shows (sub-specialized ortho surgeon). Some days that worked great (when 10% no showed and I had a “full” schedule) and other days it wasn’t so great because everyone showed up and I got behind.

    Our hospital system wouldn’t charge, but I would tell the schedulers to not reschedule a new patient with me if they no-showed or same day cancelled their appointment twice. This was partly due to the fact that it left holes in my schedule and also partly because I learned from experience that those types of patients are often the ones who won’t do what you ask them to do in terms of post op therapy and other things, so it made caring for them a bigger hassle than it was worth.

    in reply to: No-shows and cancellations #235387 Reply
    Avatar MaxPower 
    Participant
    Status: Physician
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    Joined: 02/22/2016

    A way to ignore certain posters. Several posters are continually negative and attacking and/or bring nothing coherent to the discussion.

    in reply to: Suggestions for Forum Improvement #235290 Reply
    Avatar MaxPower 
    Participant
    Status: Physician
    Posts: 338
    Joined: 02/22/2016

    @ maxpower

    “Having said that, it’s been worth it. I ended up keeping my payment the same, just by adding about $400 in extra principal per month so that I could have the house paid off at the same time as my original 15 year mortgage. So conservatively I’ve paid off an extra $16,000 in principal in the last 3.5 years.”

    And to think, that $16k in extra payments towards accelerating paying down an extremely low interest rate, probably tax deductible loan over the last 3.5 years could have grown and extra 20% in an S&P index fund just this year alone, which could have even further accelerate your mortgage payoff. Opportunity cost is a real thing.

    Click to expand…

    I’ve been saving over 6 figures towards retirement in that same time frame in addition to that extra $400/month towards my mortgage.  So less than 4% of what I’m saving per year goes towards extra mortgage payments.  I’m sure that won’t make or break my retirement prospects.

    And the timing of me wanting to have my mortgage paid off at a certain time coincides with when my kids will be in college so that I can cash flow any deficits between their 529 accounts and college education needs.  This will obviate the need to take out loans at a higher rate than what my mortgage is at.  And I already contribute up to the state maximum for tax deduction to each kid’s 529 plan.

    in reply to: Ridiculous questions from mortgage lender #235110 Reply
    Avatar MaxPower 
    Participant
    Status: Physician
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    Joined: 02/22/2016

    I had to go through all of this when I refinanced my mortgage about 3 years ago. The kicker? I refinanced with the mortgage company that was servicing my mortgage already! So somehow I was ok for a mortgage where I had to pay a higher amount each month, and my house was worth even more (about 15% more at that point due to local appreciation), but paying a lower amount due to a lower interest rate was going to create a problem for them?

    The amount of documents they wanted was ridiculous, and when I thought I’d sent everything they wanted they asked for even more stuff. Having said that, it’s been worth it. I ended up keeping my payment the same, just by adding about $400 in extra principal per month so that I could have the house paid off at the same time as my original 15 year mortgage. So conservatively I’ve paid off an extra $16,000 in principal in the last 3.5 years.

    in reply to: Ridiculous questions from mortgage lender #234936 Reply
    Liked by Zaphod
    Avatar MaxPower 
    Participant
    Status: Physician
    Posts: 338
    Joined: 02/22/2016

    Agree with most of the recommendations above, except the one that advocated for buying a cheaper grill and replacing it. I did that twice already from Med school to residency and then residency to fellowship. When we moved into our current house after I graduated fellowship (been here 5 years, so don’t chastise me), one of the first purchases was a Weber Genesis propane grill and I haven’t regretted it once. I’ve now had this grill longer than either of my 2 previous grills and haven’t replaced a single component on this yet, and it still looks almost brand new.

    I grill at least 2 times per week year round, and it is covered under a covered patio but I still put a cover on it after it has returned to ambient temperature.

    I’m this case, this is one of the things that if you buy a Weber you’ll buy it for life, instead of replacing a cheap grill every 3-5 years. Plus when you need to replace components you know that Weber will still be in business, unlike many of those cheap off brands you see at Lowes or Home Depot.

    Do it!! You won’t regret it.

    in reply to: To grill or not to grill? #234934 Reply
    Avatar MaxPower 
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    Status: Physician
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    Joined: 02/22/2016

    Agree with above. This is how it looks on either my account or my wife’s account (one is different for some reason, I don’t know why, but may have something to do with one of them being the new brokerage option).

    I was also worried when I saw the verbiage you reported, but have done it this way for a couple of years now and everything has been fine.

    in reply to: 2019 Vanguard Backdoor Roth IRA #234222 Reply
    Liked by Lordosis
    Avatar MaxPower 
    Participant
    Status: Physician
    Posts: 338
    Joined: 02/22/2016
    Splash Refinancing Bonus

    PSLF is still only ~7 years of payments from now, versus 15-20, with refinancing. If it were me I’d take a long, hard look at PSLF, and then just save the difference between payments to PSLF and what it would be to refinance in a separate account.

    Your loans with your salary wouldn’t be insurmountable with refinancing, but with your wife being almost $1/2 million in debt and only making $190k and wanting to go part time, you’re in for a very long haul trying to pay back all that money on those salaries. The fact that your salary would be lower for the next 2-3 years would be another reason to look into PSLF, after which you’d only have 3-4 years of higher payments at your higher salary (since there is a lag of at least one year due to tax filing).

    in reply to: Student Loan Help! #233458 Reply
    Avatar MaxPower 
    Participant
    Status: Physician
    Posts: 338
    Joined: 02/22/2016

    In your situation, I would do b.

    The way I look at term life insurance coverage is to take my annual expenses, and then figure out how much would be needed at that time that I haven’t saved up in retirement or other accounts, and get a policy for that amount.

    For example, in your situation you have identified what you feel to be a need for more coverage, so adding a $2 million/20 year policy now gets you 20 years of $3.5 million in coverage, and that is followed by ~10 years of $1.5 million in coverage. That leaves you with the need to save up ~$2 million in the next 20 years (yes I realize that a 4% withdrawal on $2 million is $80,000 per year, which gets you close to your current expenses, but also to a time where your children will be 22-28 years old s d hopefully your house will be paid off by then).

    in reply to: How much term life insurance? #233371 Reply
    Avatar MaxPower 
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    Status: Physician
    Posts: 338
    Joined: 02/22/2016

    @jhwk542

    So how is “something like 25/75 or 40/60 at age 17-18” substantially different than what you berated me for earlier?

    in reply to: 529 Allocation #233284 Reply
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