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Anyone have a good starting point?
I am in Philadelphia.
I am in Philadelphia.
Ameriprise will be able to help you out with your problem.
I don't know much about them, but their associate was nice to offer me and my friends lunch the other day just for dropping off my business card. The least I can do is give them a little 'shoutout'.
Sorry to bump an old thread but I have the same questions.
As a new attending, with no financial knowledge, no relationship with an accountant, stockbroker, etc., little interest and time to learn to do it myself, and lots of money coming my way, what is the best way to find someone to advise what to do with the money, reach my goals, etc. in a new town where I don't know anyone or the reps of anyone in the field?
I assume there is some sort of certifying organization or referral source (that isn't commission based)?
Secondly, I've been with the same bank all through residency and fellowship; had another bank before which wasn't unfortunately to be found in Pennsylvania (despite being named Bank of America). Since my current bank does not have branches in Arizona, I was thinking of changing again...or would it be better to stay with the same bank, a la having a long term relationship for things like mortages, etc. or just start anew at my new location with some other institution?
Sorry to bump an old thread but I have the same questions.
As a new attending, with no financial knowledge, no relationship with an accountant, stockbroker, etc., little interest and time to learn to do it myself, and lots of money coming my way, what is the best way to find someone to advise what to do with the money, reach my goals, etc. in a new town where I don't know anyone or the reps of anyone in the field?
I assume there is some sort of certifying organization or referral source (that isn't commission based)?
Secondly, I've been with the same bank all through residency and fellowship; had another bank before which wasn't unfortunately to be found in Pennsylvania (despite being named Bank of America). Since my current bank does not have branches in Arizona, I was thinking of changing again...or would it be better to stay with the same bank, a la having a long term relationship for things like mortages, etc. or just start anew at my new location with some other institution?
Thanks for the advice guys. I've already got "Personal Finance and Investing for Dummies" so it looks like a good start.
I'm just a bit nervous about this, always having been a bit "casual" shall we say about my finances...now the much larger salary and what to do with it makes me a bit nervous to do it on my own, but I don't want to just let it sit in my checking account.
I'll get started reaading!
open an account at fidelity or vanguard (i loooooove fidelity) and put your money into a money fund while you figure stuff out.
Just open an index fund (S&P 500 is the most popular but I prefer the Nasdaq) and if it follows historical averages, you'll do 11% per annum.
Mutual funds are rip offs; and 80% of them don't beat the S&P 500.
If you direct deposit monthly 10% of your income into an S&P 500 plan (traditional IRA, unless by some freak accident you qualify for the Roth and the rest in your 401(k) - if employer will match, and if anything is left over, in a traditional account), you'll be very wealthy in 20 years.
Then you can give it all away to people who don't have health insurance. ;- )
I dont' know if it's been posted on here yet as I'm too lazy to search, but the website, www.medicaleconomics.com is a fantastic website that has investing stratgies for young and old docs as well as practice management etc. They also do a yearly list of the 150 best financial planners nationwide for doctors. These are planners that are specifically oriented towards working for docs. No telling if they are on the up and up either...I myself am more likely to invest for myself b/c I find it enjoyable, but I do agree that once someone has several hundered thousand in investments it may be a responsible idea to turn some if not all of that money over to someone who actually knows what they are doing. I currently am in my last year of med school and am just doing small monthly installments into a T Rowe Price Target Retirement Fund. It's good for me right now (although I'm losing money like a sive) and is a good way for someone without thousands of bucks to spend to quickly diversify.
Thanks again for the input guys.
Yes, I will make too much to qualify for IRAs (Roth or otherwise) and since I'm in private practice, even if I did qualify, don't have an employer to match.
I've got a lot to learn.
Ameriprise will be able to help you out with your problem.
I don't know much about them, but their associate was nice to offer me and my friends lunch the other day just for dropping off my business card. The least I can do is give them a little 'shoutout'.
i think up to the point where you qualify for private banking (liquid net worth of $1-5M), you really can be fine doing your own work. even those with substantial assets could put everything into index funds and sleep at night. they just need help with tax planning, estate planning etc.
although I am in private practice, I am getting an income guarantee for my first two years. Therefore, I was wondering if this makes me an employee and NOT eligible for SEP-IRA?
- if I understand correctly, the max I can contribute is a certain percentage of your salary up to a max of $225K/year. If I earn more than that, is the SEP-IRA no longer a good option?
- the advantage of an IRA is that I can save a certain portion of my gross income which is then not taxed, right? As I understand it, if I make $200K and put $45K into my IRA, then I am taxed only on $155K? The IRA monies would only be taxed when I withdraw them?
- does the contribution need to come directly from the practice or can I do it independently? I fear asking the office staff to do something they are not familiar with and running the risk of screwing it up. Thus, for the time while I am under an income guarantee, can I simply write a check (or however the monies are transferred) to my IRA with each paycheck?
I've read several of the articles in Medical Economics and much of their recommendations are for the employed physician, but they seem to be generally good articles. Obviously I'm still confused.
Hi guys, I'm a long-time lurker to this forum but would really like to thank you all for the really great advice given. I'm in a similar situation to Kimberly's - I'm a couple of years out of residency, no real financial knowledge, and sitting in the 28% tax bracket. I have a relatively simple question regarding traditional IRA's - am I eligible to contribute to one as long as I don't deduct it? I've researched this on the IRS website, Personal Finance for dummies, and random websites and I think it's okay. I read in activeduty's last reply that kimberly wouldn't qualify for a traditional or roth IRA with a salary around 225K. I understand not qualifying for the roth IRA, but I can't come across any salary restrictions for a traditional IRA (as long as I don't deduct the contribution). Thanks everyone for your time.
So would it make sense to make maximal nondeductible contributions to a Traditional IRA from now until 2010 and then roll it over in 2010 into a Roth IRA when they do away with the MAGI requirement?
That diehards site was pretty intense....
What Is a Simplified Employee Pension (SEP) Plan?...
Keep working at it. It seems very confusing but it is really very simple compared to medicine, and not nearly as boring as nephrology. You made it through that in med school, so you can make it through this. Learning about this now will be worth literally millions of dollars to you later.
Thanks again for the info...unfortunately, it does not address my situation in which I will be an employee while getting a guaranteed salary but the hospital (which is paying the guarantee) does not offer any plans to people who are not "traditional employees" and since I am not yet "self-employed" (but will be after the salary guarantee runs out) it sounds as if I'm not eligible for the SEP either.
I realize that its supposed to be simple, but I am not in a simple situation...that's what makes it hard - I don't "fit the categories."
As I understand it, then since I don't have any employer sponsored plans, I AM eligible for Traditional Roths regardless of my salary - ie, there are no limits? I guess I misunderstood that in my earlier question because I thought the income limits were for everyone. Maybe its because I'm tired, but I'm even more confused now...
BTW, medical school was much easier than residency.