I'm a 35 yo physician out of residency for 1.5 years now. Right now I have a base salary of 190k, but make somewhat more based on "production." My husband just started a regular job at 85k, he had been self-employed, but had not really made much doing that for about 2 years.
We don't have children, but would like to. Unfortunately it looks like we will need some medical help with that.
We have:
-A house which Zillow values at 284k. We did do some remodeling, so I hope we could get more, but it's hard to tell in this market. We owe about 240k at 4.75% 20 year mortgage
-Investment accounts 114k, with some Roth, some 403b, some 457b, some taxable, and a 529 started for the yet unconceived child(ren). The vast majority of above is in a Fidelity target date retirement, because the expense is lower (0.2%) based on some sort of deal with my employer.
-Student loans (mine) ~140k at 2.75% fixed
-Tax debt (husband) ~83k at variable interest/penalties ~8%. He has an agreement to pay $500 a month, but it gets re-evaluated every 2 years, so now that he has a job that would probably change in 2 years. The tax debt would expire in 10 years, but we would rather pay it off and try to repair his credit. (All of our accounts are separate and the house is in my name only due to the taxes.)
--27k in emergency fund
Our plans:
1. Pay off tax debt. I think we can do this within a year without difficulty. I am currently maxing out all retirement savings. He is contributing 10% to his 401k, and will plan to put everything he takes home toward the taxes.
--We thought about increasing his 401k contribution to the max and then have me make up the difference so that the taxes can be paid off in <1 yr.
2. We are generally LBYM, but certainly could do better, so will continue to work on that.
3. Am considering whether we should have a smaller house. I think I really bought into the whole doctor lifestyle thing right out of training. Our house isn't extravagant, but is probably more than we need. But it's hard to tell whether it would be worth the expenses of selling and moving.
4. I'm interested in what others would do with leftover cash after the taxes are paid off. I think my goal would likely be for financial independence in 10 years, more so than retirement. I do find my career rewarding, but would just like the option to change my practice without having to worry about the financial situation too much. My job is very stable, so I'm not sure how much of an emergency fund I need, but it is always possible that I could have a complicated pregnancy, and so I do want to be prepared.
Thanks for any thoughts or advice!
We don't have children, but would like to. Unfortunately it looks like we will need some medical help with that.
We have:
-A house which Zillow values at 284k. We did do some remodeling, so I hope we could get more, but it's hard to tell in this market. We owe about 240k at 4.75% 20 year mortgage
-Investment accounts 114k, with some Roth, some 403b, some 457b, some taxable, and a 529 started for the yet unconceived child(ren). The vast majority of above is in a Fidelity target date retirement, because the expense is lower (0.2%) based on some sort of deal with my employer.
-Student loans (mine) ~140k at 2.75% fixed
-Tax debt (husband) ~83k at variable interest/penalties ~8%. He has an agreement to pay $500 a month, but it gets re-evaluated every 2 years, so now that he has a job that would probably change in 2 years. The tax debt would expire in 10 years, but we would rather pay it off and try to repair his credit. (All of our accounts are separate and the house is in my name only due to the taxes.)
--27k in emergency fund
Our plans:
1. Pay off tax debt. I think we can do this within a year without difficulty. I am currently maxing out all retirement savings. He is contributing 10% to his 401k, and will plan to put everything he takes home toward the taxes.
--We thought about increasing his 401k contribution to the max and then have me make up the difference so that the taxes can be paid off in <1 yr.
2. We are generally LBYM, but certainly could do better, so will continue to work on that.
3. Am considering whether we should have a smaller house. I think I really bought into the whole doctor lifestyle thing right out of training. Our house isn't extravagant, but is probably more than we need. But it's hard to tell whether it would be worth the expenses of selling and moving.
4. I'm interested in what others would do with leftover cash after the taxes are paid off. I think my goal would likely be for financial independence in 10 years, more so than retirement. I do find my career rewarding, but would just like the option to change my practice without having to worry about the financial situation too much. My job is very stable, so I'm not sure how much of an emergency fund I need, but it is always possible that I could have a complicated pregnancy, and so I do want to be prepared.
Thanks for any thoughts or advice!