How much do you save/invest every year?

Started by Splenda88
Personal Loans for Doctors
This forum made possible through the generous support of SDN members, donors, and sponsors. Thank you.
Get help with your application

Use all the free resources available to you from SDN: articles, guides, expert advising, forums discussions, and school research.

Browse articles Compare schools My application plan Read Interview Feedback
Practice for interviews Ask an Advisor
Advertisement - Members don't see this ad
I do agree with you @Splenda88 and that's where I think a HELOC is a winner.

If tomorrow I had a catastrophic transmission failure I'd need to come up with $70k to fix it. If we had another liberation day style crash last week it would be a terrible time to cash it out of my investments. So the HELOC acts as a great bridge. Mine is like a credit card - I use it for big purchases and pay it off ASAP. I bought my Audi with it so I could pay cash to avoid the financing headaches, and then paid off the balance when I got my extra shift pay a couple months later.
 
thumbz said:
I do agree with you @Splenda88 and that's where I think a HELOC is a winner.

If tomorrow I had a catastrophic transmission failure I'd need to come up with $70k to fix it. If we had another liberation day style crash last week it would be a terrible time to cash it out of my investments. So the HELOC acts as a great bridge. Mine is like a credit card - I use it for big purchases and pay it off ASAP. I bought my Audi with it so I couild pay cash to avoid the financing headaches, and then paid off the balance when I got my extra shift pay a couple months later.
Click to expand...

I dont have any cards with a limit close to 100k maybe 2 combined. Im being nosy but was the car over 60k and if so any tricks to get cards with super high limits
 
Advertisement - Members don't see this ad
finalpsychyear said:
I dont have any cards with a limit close to 100k maybe 2 combined. Im being nosy but was the car over 60k and if so any tricks to get cards with super high limits
Click to expand...
They used a HELOC for the audi. But if you make enough money and have good enough credit you can get some pretty high card limits. Having 100k in combined limits is fine. Most purchases will be under that amount and if it is over the limit of one card most purchases can be done using multiple cards.
 
thumbz said:
If tomorrow I had a catastrophic transmission failure I'd need to come up with $70k to fix it.
Click to expand...
IMG_2344.png

I mean, I get that you really like cars and are doing very well, but potentially dumping the median US household income into a transmission hurts my financial soul.
 
On memorial day I was accelerating from a stop sign and start billowing black smoke out of the engine bay - my entire entire financial future flashed before my eyes as I tried to find a turnout to watch my car light on fire in. Thankfully was just a blown coolant line - can't figure out why the smoke was black and not white but a win is a win. I quite literally hate that I love cars - aside from boats I can't think of a more expensive hobby. I wish I was into golf or dungeons and dragons

But! As dpmd pointed out - I use my HELOC like a credit card, my highest limit credit card is ~$30k. And by use it like a credit card I just mean I pay off the balance as I use it - it's just a high dollar value sake of ease account. And a lot of more expensive places will give a 3% discount if you pay via cash or check.
 
Splenda88 said:
I believe AMEX gold/platinum limits are $99,999.00. That is the limit of my gold.
Click to expand...
I have 75k limit on my amex blue cash preferred and 85k limit on my capital one quicksilver. Every 6 months i just request a limit increase and they've yet to say no. Former gives me 6% on groceries and 3% on gas, latter 1.5% on everything else.
 
Nocturnist said:
I have 75k limit on my amex blue cash preferred and 85k limit on my capital one quicksilver. Every 6 months i just request a limit increase and they've yet to say no. Former gives me 6% on groceries and 3% on gas, latter 1.5% on everything else.
Click to expand...

Interesting. Wonder if u have to use a large amount of it like more than half but pay it off on the due date to keep justifying them giving u a higher rate. I dont own a house so maybe thats part of it but even when i had a credit score 810-830 i think i havent gotten over 50-60k.
 
finalpsychyear said:
Interesting. Wonder if u have to use a large amount of it like more than half but pay it off on the due date to keep justifying them giving u a higher rate. I dont own a house so maybe thats part of it but even when i had a credit score 810-830 i think i havent gotten over 50-60k.
Click to expand...
I average 1500 a month on the amex in gas and groceries and 6-12k on the capital one. The highest monthly bill ive probably ever had was around 30k when I put my bathroom reno on it.
I have this vague goal of one day reaching a perfect credit score, so i push the limit up to have the lowest utilization rate. I'm at 830, no idea what voodoo it takes to push through those last 20 points.
 
thumbz said:
On memorial day I was accelerating from a stop sign and start billowing black smoke out of the engine bay - my entire entire financial future flashed before my eyes as I tried to find a turnout to watch my car light on fire in. Thankfully was just a blown coolant line - can't figure out why the smoke was black and not white but a win is a win. I quite literally hate that I love cars - aside from boats I can't think of a more expensive hobby. I wish I was into golf or dungeons and dragons

But! As dpmd pointed out - I use my HELOC like a credit card, my highest limit credit card is ~$30k. And by use it like a credit card I just mean I pay off the balance as I use it - it's just a high dollar value sake of ease account. And a lot of more expensive places will give a 3% discount if you pay via cash or check.
Click to expand...
That's happened to me once with coolant leak (white smoke), and a second time with black smoke (I forgot to put the cap back on when I topped off my oil)- scariest part is you don't notice it until you park. Nearly shat my pants in the doctor's lot, collected myself, and opened the hood- expecting the fire to surely grow with its improved oxygen source. Realized I have oil all over my engine bay with the cap still on top of my motor next to where it's supposed to be screwed. Took it to the dealership with my tail between my legs and the self promise to never tinker with my hood again.
 
Advertisement - Members don't see this ad
Nocturnist said:
I average 1500 a month on the amex in gas and groceries and 6-12k on the capital one. The highest monthly bill ive probably ever had was around 30k when I put my bathroom reno on it.
I have this vague goal of one day reaching a perfect credit score, so i push the limit up to have the lowest utilization rate. I'm at 830, no idea what voodoo it takes to push through those last 20 points.
Click to expand...
My spouse has had perfect [850] score for the past 3 years with a couple 840+ bleep. I have been always in the 830s for the past 2-3 yrs. Maybe I will get the perfect score once I pay off my student loan.
 
Last edited:
This thread reminded me to do my twice yearly credit line increase. Capital one was happy to raise my limit from 85 to 95k. Amex pushed back when I asked for more than 75k, they want me to upload my last 3 bank statements...so maybe I've finally hit my limit.
 
finalpsychyear said:
Thats the weird part. I have friends at 500k with a way higher limit. Im significantly above that so who knows. They all have houses for several years. Maybe my cards r the issue. Saphire preferred and the alaska atmos whatever it changed to r at 50-60k each. Maybe need the saphire reserve.
Click to expand...
Do you have AMEX gold or platinum? They voluntarily ask for your income. I guess they might use that to give people credit limit.
 
Nocturnist said:
I'm sure the next stage of financial maturity will involve thinking more seriously about estate planning...but thats for another day.
Click to expand...
I would not put this off for too long as it is always easy to keep kicking the can down the road. Especially if you have kids. It also helps to force the important contingency discussions with your spouse about who would take care of your kids if you both pass, etc. (ex: "do we REALLY want aunt marna to be the primary guardian of junior and the trustee" etc)

There was a well timed r/bogleheads discussion this morning where basically someone's parent was a disciplined investor for decades but neglected to draft a will, and his 2.5M estate ended up being stuck in probate with all sorts of hassles and significant tax/legal implications for the heirs.

 
Monocles said:
I would not put this off for too long as it is always easy to keep kicking the can down the road. Especially if you have kids. It also helps to force the important contingency discussions with your spouse about who would take care of your kids if you both pass, etc. (ex: "do we REALLY want aunt marna to be the primary guardian of junior and the trustee" etc)

There was a well timed r/bogleheads discussion this morning where basically someone's parent was a disciplined investor for decades but neglected to draft a will, and his 2.5M estate ended up being stuck in probate with all sorts of hassles and significant tax/legal implications for the heirs.

Click to expand...

Definitely, great point.

I did take the time to update the beneficiaries on all my accounts, but we have not made a will or trust.

I guess what makes me in the back of my mind kick the can down the road, is the seemingly astronomical chances of both my spouse and I dying at the same time while our toddlers survive.

If I died, I have enough in life insurance and instructions for my spouse to sell the second house, pay off the primary, put what's left over in the kids' 529s, and never have to work again.
Both of us dying at the same time would be unlikely, but definitely not zero. Thanks for the kick in the butt and the reminder to get this done!
 
Nocturnist said:
Definitely, great point.

I did take the time to update the beneficiaries on all my accounts, but we have not made a will or trust.

I guess what makes me in the back of my mind kick the can down the road, is the seemingly astronomical chances of both my spouse and I dying at the same time while our toddlers survive.

If I died, I have enough in life insurance and instructions for my spouse to sell the second house, pay off the primary, put what's left over in the kids' 529s, and never have to work again.
Both of us dying at the same time would be unlikely, but definitely not zero. Thanks for the kick in the butt and the reminder to get this done!
Click to expand...

You can always split the difference and use one of those online will generation sites. Not going to be as thorough as a real estate planning lawyer but it will keep the ship on course.
 
What finally got me to do mine was recently helping my aunt and uncle with theirs (important because of dementia and I am their medical and financial power of attorney) and then pushing my parents to do theirs (important due to their age and having multiple assets plus needing special needs trust for my sister).
 
dpmd said:
Just had my estate planning consult and the process has been started. I don't have kids but I don't want all my money going through probate when it can help a lot of charitable organizations (and my nieces and nephews). I was shocked by how little it cost compared to what I was thinking it would.
Click to expand...

Yes, the cost of a trust is much, much less than the cost of probate. I’m finishing setting mine up at age 35, going to take less than 10 hours of work.
 
What did you do to set up your trust? Is there an online thing or is it an estate attorney? As a single dude I should probably do it so if I unexpectedly die my poor brothers don't get stuck with a nightmare of probate (and probably my ex wife)
 
thumbz said:
What did you do to set up your trust? Is there an online thing or is it an estate attorney? As a single dude I should probably do it so if I unexpectedly die my poor brothers don't get stuck with a nightmare of probate (and probably my ex wife)
Click to expand...
Went to an estate attorney. Years ago I had purchased a do it yourself will and trust program from costco but never actually finished it plus the trust part seemed trickier. I liked that the consult was free and liked what she said about how the process would work. For around 3000 my husband and I get the trust, a special needs trust for my sister, power of attorney for handling everything including my business should I become incapacitated, medical advance directive, and a pour over will (to take anything not already in the trust and put it in there when we die). That includes the notary fee and them changing the deeds for three properties to put them in the trust.
 
thumbz said:
What did you do to set up your trust? Is there an online thing or is it an estate attorney? As a single dude I should probably do it so if I unexpectedly die my poor brothers don't get stuck with a nightmare of probate (and probably my ex wife)
Click to expand...
We went with a reputable local estate attorney with good reviews. It ended up being a phenomenal experience and I learned a ton from him. Overall maybe took 8-10 hours over the course of a couple of weeks. My wife's work actually covered the entirety of the cost (which was amazing) and I think out of pocket he mentioned it would have been maybe in the 3-5k range.
 
We finished our trust earlier this year. Cost about $10K and well reviewed/rated, which for our complicated estate was very reasonable. Also have her on a yearly retainer for updates/questions. She found some issues that was due to my fault and got it corrected.

Regardless, I will never understand going through an online/AI version when you are making 300K+ and have estates in the millions. Even at $30K, it is a small cost for doing it right and peace of mind. There are things worth doing it on the cheap end, not a trust/will.

Have a friend whose dad passed away and put his business in a trust which was great but had a will for his personal. He said going through probate is going to take 2 yrs in multiple states and I bet will cost him well into the low to mid 6 figures when you add all of the probate/lawyer fees.

Do a trust, update it regularly, it is the smart way and cost of doing business
 
Monocles said:
Starting year 5 today

Total retirement savings: 939k
NW: 1.4m

As several of the posters above pointed out, childcare is crazy expensive esp in New England. My savings rate has been pretty consistently 70-75% as an attending for these years, and soon I'll be lucky to hit 50%. Will also need to re-evaluate my FI goal as its looking closer to 3M as opposed to 2M now.

I will likely be working for a long time... but I've come to really enjoy my coworkers so it is what it is.
Click to expand...
A tad bit late but starting year 6!

I haven't checked in a while so was shocked at how fast things have grown
Total retirement: 1.26M
NW: 1.8M

Last year was a whirlwind as new parents. As projected our savings rate post-baby has been ~50%. I'm working fewer hours than before but life feels busier than ever.
 
Advertisement - Members don't see this ad
Monocles said:
A tad bit late but starting year 6!

I haven't checked in a while so was shocked at how fast things have grown
Total retirement: 1.26M
NW: 1.8M

Last year was a whirlwind as new parents. As projected our savings rate post-baby has been ~50%. I'm working fewer hours than before but life feels busier than ever.
Click to expand...
That is good. It's a 400k increase.

You can basically coast FIRE now. Your retirement money will likely be > 5M in 15 years w/o contributing a penny more to it (assuming a 10% return rate).
 
Last edited:
How do those of us who receive production (annual or otherwise) bonuses allocate the extra funds? Up until now I have used them to eliminate debt, but at this point my only debt is a 5.75 percent mortgage. My base salary covers all of my investment objectives, so while I could invest it, it would just mean a higher final net worth for my kids without substantially affecting my life. My general plan is to put half towards my mortgage and just bulk up my cash reserves on hand for future opportunities or calamities (and fun).
 
mmmcdowe said:
How do those of us who receive production (annual or otherwise) bonuses allocate the extra funds? Up until now I have used them to eliminate debt, but at this point my only debt is a 5.75 percent mortgage. My base salary covers all of my investment objectives, so while I could invest it, it would just mean a higher final net worth for my kids without substantially affecting my life. My general plan is to put half towards my mortgage and just bulk up my cash reserves on hand for future opportunities or calamities (and fun).
Click to expand...
IMG_2717.jpeg

We’re at the same point. Back when I had my practice loan at a worse rate than your mortgage, it went there. My house rate is half of yours at the moment, so I just roll it into the general investment fund for now.

But seriously, if you’re hitting your goals and you got some extra, ain’t nothing wrong with playing with some. You can split it as much as you want. I’m getting back into a hobby where around $500 will probably improve my setup. I’m not going to blink at that. Got kids too old for early boarding? Business class won’t kill your financials. Room upgrade? Cool.

Hit your milestones and then don’t be Smaug or the guys from Entourage. (I hope I’m not the only one who gets those references.)
 
I guess I should also clarify that I am well past coast fire and at my current trajectory I will cross my fatfire number in the next ten years by the time I am fifty though I plan to continue to work (I'm in academics, heavy focus on medical education and very good work life balance for my field). I am not particularly motivated to hit fatfire faster than that. It just feels like I'm playing for a high score by investing more than I already am (roughly 30 percent of gross base salary). I am fortunate to have gotten the message during residency and I was very aggressive (and lucky as I became an attending just in time for the covid dip) for the first three years investing close to 50 percent of gross salary. I crossed coast fire during that time and switched jobs and loosened the reigns a bit to my current state.
 
mmmcdowe said:
I guess I should also clarify that I am well past coast fire and at my current trajectory I will cross my fatfire number in the next ten years by the time I am fifty though I plan to continue to work (I'm in academics, heavy focus on medical education and very good work life balance for my field). I am not particularly motivated to hit fatfire faster than that. It just feels like I'm playing for a high score by investing more than I already am (roughly 30 percent of gross base salary). I am fortunate to have gotten the message during residency and I was very aggressive (and lucky as I became an attending just in time for the covid dip) for the first three years investing close to 50 percent of gross salary. I crossed coast fire during that time and switched jobs and loosened the reigns a bit to my current state.
Click to expand...

You will hit a point where an extra 50-100k invested wont really get you to your goals faster. Either having more fun or i guess socking some dry powder away for a larger dump during a big pullback could be fruitful. Again that still means normally DCA but if it just so happens you have a large cash sum that you didnt blow through your fun stash then yeah as you saw you can see what happens when u lump sum in at the lucky times.
 
eyeeye_captain said:
View attachment 424266
We’re at the same point. Back when I had my practice loan at a worse rate than your mortgage, it went there. My house rate is half of yours at the moment, so I just roll it into the general investment fund for now.

But seriously, if you’re hitting your goals and you got some extra, ain’t nothing wrong with playing with some. You can split it as much as you want. I’m getting back into a hobby where around $500 will probably improve my setup. I’m not going to blink at that. Got kids too old for early boarding? Business class won’t kill your financials. Room upgrade? Cool.

Hit your milestones and then don’t be Smaug or the guys from Entourage. (I hope I’m not the only one who gets those references.)
Click to expand...
We are at the point now that we book first/business class right off the bat rather than trying to upgrade later even though that costs more
 
mmmcdowe said:
I guess I should also clarify that I am well past coast fire and at my current trajectory I will cross my fatfire number in the next ten years by the time I am fifty though I plan to continue to work (I'm in academics, heavy focus on medical education and very good work life balance for my field). I am not particularly motivated to hit fatfire faster than that. It just feels like I'm playing for a high score by investing more than I already am (roughly 30 percent of gross base salary). I am fortunate to have gotten the message during residency and I was very aggressive (and lucky as I became an attending just in time for the covid dip) for the first three years investing close to 50 percent of gross salary. I crossed coast fire during that time and switched jobs and loosened the reigns a bit to my current state.
Click to expand...
I'd prioritize spending anything on home life/house that will eliminate/mitigate friction or increase enjoyment, such as improving the kitchen, etc. because home is where you spend the most time. I'd allocate the funds towards improving the enjoyment of any hobbies that you engage in regularly. After that, I'd probably focus on investing for my kids to pass it down to them or philanthropy, but I'd probably err towards investing for my kids because a lot of philanthropy money/efforts just end up being worthless at best and counterproductive at worst.

And obviously, if you like traveling, you should upgrade to first class without blinking an eye and pay for the best hotels. Although, even in this arena, you'll probably find that you hit the point of diminishing returns eventually, where the extra money you spend on the "experience" doesn't really improve the experience much.
 
You must log in or register to reply here.

Similar threads

P
Do I have to pay Capital gains every time I do stocks rebalance?
Replies
9
Views
3K
abolt18
abolt18
apr27
Folks on SAVE and hoping for PSLF...
Replies
1
Views
3K
abolt18
abolt18
J
For physicians who were fed up with PE-owned groups or abusive corporate systems and chose to go solo — how did you do it, and what advice would you g
Replies
7
Views
5K
InvestingDoc
InvestingDoc
apr27
Currently under SAVE plan as attending
Replies
8
Views
4K
abolt18
abolt18
Logs
SAVE repayment plan - will this work?
Replies
1
Views
4K
mvenus929
mvenus929