A curated list of tweets about investing, fees, and more:
A mutual fund is a massive savings account started by a company that hires so-called experts in the financial health assessment and future profit potential estimates of companies, companies that are so big that they have sold part of themselves to the public to raise money.
These companies are called publicly traded, because once the company does this, the general public can buy and sell ownership of them. Anyway, these experts are paid to choose which companies they think will be most profitable in the future based on the current cost of buying shares or portions of said companies.
They market their skills and attract investors, also known as people with money who decide they are going to trust these experts with their money.If the mutual fund successfully raises enough money, this enormous savings account becomes a pool of money that is supported by many many thousands of people. It allows an individual with a relatively small amount of money to access exposure to several hundred publicly traded companies - this is called diversification, which we can discuss later.
1) You agree to set aside a % of your paycheck into an account that the employer sets up but that belongs to you.
2) You pick either pre-tax or Roth as the contribution type. Pre-tax means you don’t pay taxes on that money now but you will later in retirement. Roth means you pay income taxes on that money now but you *won’t* later in retirement.
3) You pick the investments your money goes into based on a preset list created by your employer. Investing means it can lose money. It also means you have given your money the potential to grow a lot over the years, much more than what a bank account can offer. But it is not guaranteed.
4) Sometimes your employer will match your contribution up to a certain percentage, like 3% or 5%. You should especially participate in this plan if such an offer is available. It is a pay increase based on the condition that you also contribute.
5) Your contributions and growth are yours immediately. So if you leave that employer, you can roll the funds to your next employer’s retirement plan. Your employer’s matching contributions are yours after the years of employment requirement has been satisfied. Sometimes there’s no requirement. Sometimes it’s a few years. Your employer sets this rule.
6) Your money’s profits don’t get taxed while in the account. This helps your money to potentially grow faster.
7) Your pre-tax contributions and related profits will be taxed when you withdraw it during retirement.
8) Your Roth contributions and related profits will be *not* be taxed when you withdraw it during retirement.
9) Treat this money like it’s not yours. Treat it like it belongs to 70 year old you. And don’t look at it more than twice a year.
1) $1000 in savings account
2) Payoff high interest credit card debt
3) 3 month expenses emergency fund
4) Own-Occupation Disability Insurance
5) Program 403(b) up to employer match
6) Private Loans (8%+ interest)
7) Roth IRA
8) Your next personal priority
1) Contribute to meet the 403(b) employer matching contribution if it exists
2) Roth IRA - up to $6,500/yr
(**PSLF caveat - if you’re strongly going for PSLF, cont. w/ 403(b) instead.**)
3) HSA - could be #2
1) Max out 401(k)/403(b)
2) HSA if it exists
3) Backdoor/3 Step Roth
4) Max out add’l retirement plans offered (457b/401a/415m/Cash Balance Plan) - if these exist
5) Taxable investment account - particularly important for early (pre age 59.5) retirement
A mutual fund is a massive savings account started by a company that hires so-called experts in the financial health assessment and future profit potential estimates of companies, companies that are so big that they have sold part of themselves to the public to raise money.
These companies are called publicly traded, because once the company does this, the general public can buy and sell ownership of them. Anyway, these experts are paid to choose which companies they think will be most profitable in the future based on the current cost of buying shares or portions of said companies.
They market their skills and attract investors, also known as people with money who decide they are going to trust these experts with their money.If the mutual fund successfully raises enough money, this enormous savings account becomes a pool of money that is supported by many many thousands of people. It allows an individual with a relatively small amount of money to access exposure to several hundred publicly traded companies - this is called diversification, which we can discuss later.
A curated list of tweets about student loans, payoff strategies, and more:
1) Work full-time for a non-profit organization or government entity for 10 years
2) Make those payments on one of the following income-driven repayment plans: PAYE, REPAYE, IBR, ICR
3) Based upon the IDR you choose, make 120 payments on your loans (even $0 payments during the Covid relief period) over the course of that 10 year period.
4) Have Direct Loans (or consolidate other federal student loans into a direct loan)
A curated list of tweets about insurance costs, watch to watch our for, and more:
1) Ameritas
2) The Standard
3) MassMutual
4) Guardian
3) MassMutual
Whole life, universal life, variable life, indexed universal life - these are all unnecessary to the far majority of people. Just say no. You are not missing out on anything.
Only buy TERM LIFE insurance.
A curated list of tweets about taxes and the role they play:
If you're graduating, have student debt and need to minimize payments, it is ideal to file a 2022 tax return so that you can prove low or $0 income that produces a low or $0/mo payment for your first year out of school. Why?
A tax return with ~$19k or less in income for the past yearr will produce a $0/month payment. If you made money last year, then filing electronically (e-file) is the natural next step anyway.
Do this and when you apply for an IDR (PAYE, REPAYE, etc) you can use the return as proof. But...
What if you made no income?
You should be able to e-file anyway. But if the tax software you use doesn’t allow you to, try another one.
One way or another, your loan servicer will want proof of current income, be it a 2022 tax return or some other proof. Namely - your pay stub from your residency program. In that case, they'll extrapolate this figure to assume your income is NOT $0, but the $50-60k salary you are slated to receive.Now your monthly payment will be closer to $250-300.
If all else fails, file a paper return and keep a copy. Here are the links to access it:
Trainees = low tax bracket → pay taxes now → Roth
Attendings = high tax bracket → pay taxes later → pre-tax
A quick look at what we can do when working together:
Urgent Matters
Addressing the most important areas in your life first
Retirement & Investing
Creating a plan for existing & future investment goals
Cash Flow
Getting a clear understanding of where your money's going
Debt & Savings
Paying off & saving for college and other life liabilities
Contract Review
Taking a closer look at your benefits and payscale
Insurance Analysis
Reviewing any policies & providing a path forward
For Medical students and physicians in training, we offer an In-Training Financial Strategy Session for $700, providing a 60-minute consultation with Ronnie to address your top financial concerns. The service includes a targeted review of your financial situation and a follow-up email with personalized advice and actionable steps.