My company does not offer a match. The amount in taxes that the government is taking from one's paycheck is outrageous. I was shocked to see that my take home pay will be only 55% of my gross after all deductions (taxes, medical/dental, Roth 401k, 529b, LTD insurance etc...)
That is great. What's your yearly salary?
300-400k/yr! That's really impressive.
You probably have another 8-10 yrs to become FI if you continue with that pace.
The 80-85k/yr includes 401k, 529. Student loan repayment which is a huge expense is part of the budget as well. I will try to pick up extra shifts to reach that 100k+
I will 'upgrade' from living on 50k/yr to 100k (not including student loan repayment). Gotta spend a little more on the family.
Will do about the same for 2 kids since my kids are older.
groceries+utilities+insurance+cell phones+lawn care+TV+internet+etc): 100K
How were you able to save 22k/yr during training?
Our residency salary was a bit higher than the national average due to making up for VHCOL in Boston. I was paid 60k-80k during my five years. This ended up being about 4k post tax each month so I had a lot to work with.
I max out a 403b and 457 at 19k each a year, employer contributes another 14k per year, and i put another 6k a year to Roth IRA so 58k a year total into retirement. Whatever extra I have left I pretty much split evenly between real estate (I've paid 1/3rd of my 15 yr mortgage in the past year, and just bought a beach house as well) and my brokerage account (cost average investing around $500 a day into 7-8 ETFs).
My residency program auto-deducted 11% of our resident salary into the state's retirement fund. We didn't have any say in the matter, but at the end of residency we were given the choice to cash it out or roll it over. After 3 years I had 16k saved in retirement. I'm glad I rolled it over as opposed to cash it out and take the penalty hit. 5 years later its grown to nearly 30k.
Did they offer any matching %?
Nope, not at all- but if you stuck around and worked in the state system for a decade you were eligible for state pension. I dont know the details of this, but alot of people in fellowships or longer residencies stuck around the medical system for a few more years for this perk.
You basically save/invest ~200k/yr. That is a remarkable amount. Salary > 400k/yr or significant other makes also 6-figure?
I would say thats somewhere around how much I save, probably closer to 300k a year but I honestly don't keep track. Some of the money I use for the brokerage account comes from my cash reserves, since I'm trying to get out of cash because its just collecting dust sitting in the bank. I find its too much work to keep track of my saving and more relevant to keep track of my NW. I make 550k a year, SO makes 6 figures as well.
Great question. Not shooting for any number in particular but I'd say around 5m would be a wild guess and a comfortable number. Between the SO and I we're around halfway.
You can pretty much semi retired and call it a day. Your net worth will double in 7-10 yrs even if you stop investing. It's great that you enjoy your job.
I'm 5 yrs post residency.
Equity on your home(s) is part of your NW. That "number" is the total NW.
It depends on the market. But I agree. Even in the hottest real estate markets a home generally won’t grow in value as fast as an index fund. The exception is if you leverage insanely. You CAN use your home as an ATM though using HELOC If desperate and can always sell and downsize to liquidate the capital. And of course you save on rent but have to pay property taxes and maintenance.
Agree that it doesn't contribute as easily to retirement income as investments or cash, although living mortgage/rent free greatly decreases your cost of living, so maybe instead of 200k in retirement now you only need 100k (plus then your net worth continues to climb with your home's appreciation). Push comes to shove, can relatively easily tap the equity with a HELOC.
Most people who invest in real estate should leverage otherwise you are taking away one of the more valuable reasons to real estate invest.
But you can also leverage with stocks. (Take a HELOC
How does one leverage with a heloc? The bank will only give you a HELOC for an amount that is generally 75-80% of your EQUITY in the house. This is why you can't really get any meaningful one until many years into your mortgage. I'm not aware of any other such easily accessible/wide spread loan that allows nearly any average Joe to leverage 5x to sometimes even 33x their initial investment.