How much salary will we get in hand after tax cuts,etc

[cool_vkb]

A friend of mine was saying that physicians lose 30% of their salary in taxes,etc. is this true? plus their is malpractice insurance.

The national average of Pods with 3yr surgery is arnd 160K. can anyone give a rough estimate as to how much would we be taking home or to buy the new mercedes or cancun vaccation

Another question i had was, whats the approx monthly payment after school for a loan arnd $190K. just an approx value.

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[MaseratiGT]

A friend of mine was saying that physicians lose 30% of their salary in taxes,etc. is this true? plus their is malpractice insurance.

The national average of Pods with 3yr surgery is arnd 160K. can anyone give a rough estimate as to how much would we be taking home or to buy the new mercedes or cancun vaccation

Another question i had was, whats the approx monthly payment after school for a loan arnd $190K. just an approx value.

Mercedes It's a Chrysler on rims. Get a Lexus.

Now back to our regularly scheduled topic...

 

[krabmas]

A friend of mine was saying that physicians lose 30% of their salary in taxes,etc. is this true? plus their is malpractice insurance.

The national average of Pods with 3yr surgery is arnd 160K. can anyone give a rough estimate as to how much would we be taking home or to buy the new mercedes or cancun vaccation

Another question i had was, whats the approx monthly payment after school for a loan arnd $190K. just an approx value.

I can tell you for residency that I make about 43K a year. After taxes, health insurance and 401K I get $1,222 every 2 weeks. This is not much money to live on.

The loan thing...

I have 180K to repay and interest is accruing daily. I chose the payments to increase over the years so as I make money the payments get higher ( I had to choose something until the forbarance/deferment went thru). The payments started around $600 a month.

 

[cool_vkb]

I can tell you for residency that I make about 43K a year. After taxes, health insurance and 401K I get $1,222 every 2 weeks. This is not much money to live on.

The loan thing...

I have 180K to repay and interest is accruing daily. I chose the payments to increase over the years so as I make money the payments get higher ( I had to choose something until the forbarance/deferment went thru). The payments started around $600 a month.

So you are paying that $600 a month right now in that tiny winy $1200 biweekly check

 

[NatCh]

How much you take home is subject to many variables, such as number of dependents, home ownership, contributions to a medical savings account, contributions to pre-tax daycare, contributions to 401k, etc. The state in which you live may have relatively low or high income tax compared to other states. But yes, 30% is close enough for an approximation.

If you make over a certain amount, you will be subject to the Alternative Minimum Tax (AMT) instead of being able to take deductions. That comes out to around 26%-28% interest. http://www.smartmoney.com/tax/filing/index.cfm?story=amt

The employer usually pays for malpractice. If you are a practice owner or Partner then you can pay for it as a business expense with pre-tax dollars so it doesn't come out of your salary.

Student loan interest is deductible up to a certain amount.

Some people refinance their student loans with a home equity loan, and benefit from increased tax write-offs.

Loan repayment amounts depend on length of term and interest rate. $190K x 30 years at 7% fixed rate = ~$1264/month. If you pay it on a 10 year term then it's ~$2200/month. There are also graduated repayments like Krabmas is doing. The further along you go, the more your minimum payment is. If you only make the minimum payments on those, you'll end up paying way more total than with a fixed rate.

Plug your own numbers into a loan calculator. Google "loan calculator" and find this and many others: http://calculator-loan.info/

Bottom line: I'd spend the time and the few hundred bucks early on to talk to an accountant about what to do.

Nat

 

[krabmas]

So you are paying that $600 a month right now in that tiny winy $1200 biweekly check

My loan is deferred for now.

I will start making payments when residency is over.

Natch is right that over the long haul I will pay more if I take longer to pay back the loan, just like a mortgage. But you can always pay more than the minimum payments.

If you re-finance your student loans into a mortgage you loose the ability to defer and forbare. Hopefully after residency this will not be necesary but you never know.

 

[NatCh]

My loan is deferred for now.

I will start making payments when residency is over.

Natch is right that over the long haul I will pay more if I take longer to pay back the loan, just like a mortgage. But you can always pay more than the minimum payments.

If you re-finance your student loans into a mortgage you loose the ability to defer and forbare. Hopefully after residency this will not be necesary but you never know.

Also, federal loans permit refinancing one time only. Private loans don't restrict you.

The graduated payment setup is nice because you start with lower payments when you have less income to spare.

Another strategy is to refinance to a 30-year fixed at low interest (if interest rates are low at the time of re-fi.) and make an extra payment or two each year. This method will make your minimum payments smaller and then when you make more money you can pay more to keep the total payback smaller. It also lets you revert back to paying minimum-only in case you had a lot of other expenses that month.

If I recall correctly, deferment goes until 6 months post-Residency during which you don't need to make payments and interest does not accrue. Forbearance is an additional 6 months during which you don't have to make payments but interest does accrue (do I remember right?).

I definitely wouldn't refinance with a home equity loan without consulting an accountant first, to see if it would make sense for your particular situation. Definitely make use of the deferment period though.

Nat

 

[aesculanus]

I don't understand why everyone here is talking about 30 year repayments. Government backed student loans have a graduated repayment plan that is not the same as the graduated repayment plans the banks talk about:

"Income Contingent Repayment: This type of repayment plan is another one that is essentially what it sounds like. Available only to Direct loan holders, payments are calculated according to income and your total amount of debt. The loan term is up to 25 years and is regularly adjusted according to any changes in income. Payments increase as income increases, but your required payment can be no greater than 20% of any earnings above the poverty level. When the 25 year term is over, if there is a balance remaining, it will be discharged."

Assuming you have not taken out PRIVATE loans, you can go income contingent. for egregious borrowing approaching $200k, this is the way to go, no question. Your payments will never exceed 20% of your income, and if it drags on for 25 years, whatever remains on the balances is forgiven.

 

[NatCh]

I don't understand why everyone here is talking about 30 year repayments. Government backed student loans have a graduated repayment plan that is not the same as the graduated repayment plans the banks talk about:

"Income Contingent Repayment: This type of repayment plan is another one that is essentially what it sounds like. Available only to Direct loan holders, payments are calculated according to income and your total amount of debt. The loan term is up to 25 years and is regularly adjusted according to any changes in income. Payments increase as income increases, but your required payment can be no greater than 20% of any earnings above the poverty level. When the 25 year term is over, if there is a balance remaining, it will be discharged."

Assuming you have not taken out PRIVATE loans, you can go income contingent. for egregious borrowing approaching $200k, this is the way to go, no question. Your payments will never exceed 20% of your income, and if it drags on for 25 years, whatever remains on the balances is forgiven.

I don't recall that arrangement being available to me when I was picking my loans. How much is 20% over the current poverty level?

 

[AnalBeads]

A friend of mine was saying that physicians lose 30% of their salary in taxes,etc. is this true? plus their is malpractice insurance.

The national average of Pods with 3yr surgery is arnd 160K. can anyone give a rough estimate as to how much would we be taking home or to buy the new mercedes or cancun vaccation

Another question i had was, whats the approx monthly payment after school for a loan arnd $190K. just an approx value.

does you know hows much i can peyh for spells chek and gramur lesions?

 

[cool_vkb]

does you know hows much i can peyh for spells chek and gramur lesions?

Ummm! i dnt knw. Anus is far away frm our scope, no idea abt ppl like u. Its better u crawl back in the hole Mr.Beads!

 

[krabmas]

does you know hows much i can peyh for spells chek and gramur lesions?

ESL