I am so glad to have found this site (and the Retire Early Home Page). It's good to know that there is a supportive community of like-minded people.
I was going to wait until I had time to compose a brilliant letter of introduction but I find that there are discussions I want to participate in NOW so you will have to suffer through the rough draft.
I am 31 and my goal is to retire at 50 and I KNOW it can be done! I watched my parents LB(their)M always! And dad retired at 51. They have always been, and continue to be, an inspiration to me (and my two sisters). I could (and have and will) talk about my parents and their lessons for hours but some more about me...
I am a family physician. I have found that many people think that doctors are rich. While the income IS good (once you get there) - basically, you start late and with a lot of debt.
Here's my personal chronology:
1974 - I am born and spend the next 18 years soaking up the frugal mindset and lessons of my frugal family. (definately genetic - maybe that Scottish ancestry you read about in "The Millionaire Next Door")
1992 - Go to Penn State with a full tuition scholarship - stretching the college fund $, working summers for $ and credit in the Bio lab and doing the research for my honors thesis, and since I had to pay living expenses anyway, talking summer classes...
1995 - Graduate from Penn State one year early and start Medical School
1996 - marry husband - acquiring his Student Loan debt BUT he works overtime and I am doing Work Study at the medical school library and we live well on little $
1999 - Graduate from Medical School with $115,000 in Student Loan Debt - not including his, despite no undergrad loans, despite 1/2 tuition scholarship and Work Study, etc. And I was at the low end of the scale - most in my class had student loan debt (with undergrad) over $1/4 milllion.
1999-2002. Family Practice Residency. The program I went to has an (comparatively) EXCELLENT benefits package - salary of $35K increasing to $45K and a house to live in while you're there - for this you work 80-100 hours/week. In the meantme hubby racks up another $15K of Student Loan Debt at a trade school.
2002 - Graduate from Residency. Start making "doctor money" - 1st year salary $132K - excellent for this area. Plus $50K Loan Repayment from employer (for 5 year commitment). Buy House. Buy new Roof for house. Buy 2nd Car. Max to 403(b), Max to Roth IRAs with Vanguard Index Funds. Get to work on those student loans.
2005 - Financial picture coming together. Consolidated loans now, before interest rates go up in July. Paid off Dad (got screwed on hubby's initial student loan consolidation from undergrad - borrowed from Bank of Dad at 7% to pay it off). Paid off Mom (borrowed at 5% from Bank of Mom to avoid PMI on house. Paid off Car Loan (I am NEVER buying a new car again even at 3.9%).
Currently sittling on:
Mortgage: $133,500 at 6.125% fixed
Hubby Student Loan (consolidated): $15,500 at 2.875% fixed
Medical School Loans: $57,000 at 4% fixed
no other debt.
Retirement savings: About $62K - mostly in IRAs/403(b)(will be contributing max/year to 403(b) and Roths from here on out). Now vested in small non-COLA pension.
Got my 6 mos of emergency cash. Saving up for some foundation repairs on house.
19 years to retirement. I can SOOOO do this.
Current issues:
1.) Where to put money for retirement outside of 403(b) and Roths. I'm leaning toward a taxable account at Vanguard - Total Stock Market Index Fund. I've also got about 5% in physical gold/silver and 5% in old EE Savings Bonds (earning 4-6% - graduation presents). Looking into I-bonds.
2.) Where's the crossover for paying down my current debt vs. investing more? The loan at 2.875% I'll probably let ride as I can get around 4% on a 5 yr CD. At current salary the student loan interest is not deductable so the 4% loan is kind of a wash. I like the idea of paying down mortgage (do not plan on having any mortgage into retirement) BUT this is not our "real" house.
Well, that was a lot of typing and I don't think I did a good job of giving you the short version. But I am very excited to find a forum to discuss these matters. At work I get the "You think you want to retire early but you wouldn't know what to do with yourself." or "It can't be done, you'll work until you drop." or ...I'm sure you have heard them all. I have SO many outside interests I can't imagine EVER being bored - I play piano/clarinet/recorder and am taking lessons on the drum set. I collect coins/silver/gold. I scrapbook. I GeoCache. I read at least 4 hours a day of (mainly science) fiction. I research asset allocation and read personal money management websites . I've been to all 50 states and want to go back - I drove to Alaska with my family as a kid and want to do it again with my husband. I collect National Parks. I have a dog and a cat. HOW IT THE WORLD DOES ANYONE GET BORED !!
Well, anyway, I'll be seeing you around. Probably in the "Young Dreamers" section.
DrLLLong
I was going to wait until I had time to compose a brilliant letter of introduction but I find that there are discussions I want to participate in NOW so you will have to suffer through the rough draft.
I am 31 and my goal is to retire at 50 and I KNOW it can be done! I watched my parents LB(their)M always! And dad retired at 51. They have always been, and continue to be, an inspiration to me (and my two sisters). I could (and have and will) talk about my parents and their lessons for hours but some more about me...
I am a family physician. I have found that many people think that doctors are rich. While the income IS good (once you get there) - basically, you start late and with a lot of debt.
Here's my personal chronology:
1974 - I am born and spend the next 18 years soaking up the frugal mindset and lessons of my frugal family. (definately genetic - maybe that Scottish ancestry you read about in "The Millionaire Next Door")
1992 - Go to Penn State with a full tuition scholarship - stretching the college fund $, working summers for $ and credit in the Bio lab and doing the research for my honors thesis, and since I had to pay living expenses anyway, talking summer classes...
1995 - Graduate from Penn State one year early and start Medical School
1996 - marry husband - acquiring his Student Loan debt BUT he works overtime and I am doing Work Study at the medical school library and we live well on little $
1999 - Graduate from Medical School with $115,000 in Student Loan Debt - not including his, despite no undergrad loans, despite 1/2 tuition scholarship and Work Study, etc. And I was at the low end of the scale - most in my class had student loan debt (with undergrad) over $1/4 milllion.
1999-2002. Family Practice Residency. The program I went to has an (comparatively) EXCELLENT benefits package - salary of $35K increasing to $45K and a house to live in while you're there - for this you work 80-100 hours/week. In the meantme hubby racks up another $15K of Student Loan Debt at a trade school.
2002 - Graduate from Residency. Start making "doctor money" - 1st year salary $132K - excellent for this area. Plus $50K Loan Repayment from employer (for 5 year commitment). Buy House. Buy new Roof for house. Buy 2nd Car. Max to 403(b), Max to Roth IRAs with Vanguard Index Funds. Get to work on those student loans.
2005 - Financial picture coming together. Consolidated loans now, before interest rates go up in July. Paid off Dad (got screwed on hubby's initial student loan consolidation from undergrad - borrowed from Bank of Dad at 7% to pay it off). Paid off Mom (borrowed at 5% from Bank of Mom to avoid PMI on house. Paid off Car Loan (I am NEVER buying a new car again even at 3.9%).
Currently sittling on:
Mortgage: $133,500 at 6.125% fixed
Hubby Student Loan (consolidated): $15,500 at 2.875% fixed
Medical School Loans: $57,000 at 4% fixed
no other debt.
Retirement savings: About $62K - mostly in IRAs/403(b)(will be contributing max/year to 403(b) and Roths from here on out). Now vested in small non-COLA pension.
Got my 6 mos of emergency cash. Saving up for some foundation repairs on house.
19 years to retirement. I can SOOOO do this.
Current issues:
1.) Where to put money for retirement outside of 403(b) and Roths. I'm leaning toward a taxable account at Vanguard - Total Stock Market Index Fund. I've also got about 5% in physical gold/silver and 5% in old EE Savings Bonds (earning 4-6% - graduation presents). Looking into I-bonds.
2.) Where's the crossover for paying down my current debt vs. investing more? The loan at 2.875% I'll probably let ride as I can get around 4% on a 5 yr CD. At current salary the student loan interest is not deductable so the 4% loan is kind of a wash. I like the idea of paying down mortgage (do not plan on having any mortgage into retirement) BUT this is not our "real" house.
Well, that was a lot of typing and I don't think I did a good job of giving you the short version. But I am very excited to find a forum to discuss these matters. At work I get the "You think you want to retire early but you wouldn't know what to do with yourself." or "It can't be done, you'll work until you drop." or ...I'm sure you have heard them all. I have SO many outside interests I can't imagine EVER being bored - I play piano/clarinet/recorder and am taking lessons on the drum set. I collect coins/silver/gold. I scrapbook. I GeoCache. I read at least 4 hours a day of (mainly science) fiction. I research asset allocation and read personal money management websites . I've been to all 50 states and want to go back - I drove to Alaska with my family as a kid and want to do it again with my husband. I collect National Parks. I have a dog and a cat. HOW IT THE WORLD DOES ANYONE GET BORED !!
Well, anyway, I'll be seeing you around. Probably in the "Young Dreamers" section.
DrLLLong