Making money after grad

[drbizzaro]

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Here's a question for those of you who have graduated and started working, or anyone who is knowledgable in financial issues:

After graduating from an optometry school, how much will you have available in spending money (after taxes). [ also note: for this scenario, the person does not have any loans, as they have obtained tuition money via some method ]

ie. lets say the person is making 100,000.00 USD a year

-how much of this goes to taxes?
-if they decide to just rent a condo/apartment, what is the average price? (per year)
-also, assume they want to save approximately 20,000.00 a year for investments.

I'm just curious as to how much you guys think the person will have left over after taxes and such.

Some friends of mine said that 100,000.00 would only leave them with less than 50K after taxes. I hope this is wrong.

 

[drbizzaro]

Also, a point to note is: back in high school, I shadowed a surgeon who made over 300,000.00, but would do some weird tax tricks, like pay her husband (who didn't have a job) over half her salary, in order to avoid taxation (or something like that). And somehow, she kept most of her money.

 

[aphistis]

Some friends of mine said that 100,000.00 would only leave them with less than 50K after taxes. I hope this is wrong.

It is. You'd have to work pretty hard to throw that much of a 100k salary away on taxes.

 

[drbizzaro]

It is. You'd have to work pretty hard to throw that much of a 100k salary away on taxes.

How much of 100K is left over after taxes?

 

[aphistis]

How much of 100K is left over after taxes?

That's a pretty complex question. It all depends on what you do with the money. US tax law is so convoluted there are a million ways to reduce your taxable income--tax-deferred investments (e.g., 401(k) or IRA), writing off mortgage interest & other deductions...the list goes on practically forever. Hire someone good (and ethical!) to do your taxes for you; their services are more than worth the cost.

 

[drbizzaro]

That's a pretty complex question. It all depends on what you do with the money. US tax law is so convoluted there are a million ways to reduce your taxable income--tax-deferred investments (e.g., 401(k) or IRA), writing off mortgage interest & other deductions...the list goes on practically forever. Hire someone good (and ethical!) to do your taxes for you; their services are more than worth the cost.

Ok... lets say this person has no clue about taxation

And they dont do any schemes (ie. giving their spouses half of their salary to avoid taxation)

If they make 100K, is the usual US tax rate 30%?

Until now, I've never really wondered about this stuff or talked to friends/parents about tax stuff so I'm so clueless about taxation.

Lets say one person lives in LA, the other in Penn.

The tax rate would differ slightly (for income tax right?) But what would their total be?

ie. LA => 100,000.00 USD -> would give _______.00 after income tax
Penn => 100,000.00 USD -> would give _______.00 after income tax (without any fancy schemes to deduct taxation)

 

[aphistis]

Well, I'm not familiar enough to run the numbers for you. There's plenty of information on the internet you can look up to answer all your questions. Sorry I can't be any more help, and good luck digging up answers.

 

[drbizzaro]

using http://www.fairmark.com/begin/bracket.htm

i'm calculating for 100,000.00 USD income

so it's in the bracket between 70 and 146K

so: 100,000.00 - 14,325.00 - (.28x(100,000-70,350))
= 22,627.00 in TAXES

Leaving you with 77,373.00 USD in income to spend. Does that look about right for a 100K income?

What do you guys suppose would have to be taken out for simple dining and renting an apartment? (please provide input, thanks)

 

[samwY]

with all the girls you're "sleeping with", im surprised you dont have a real life friend in finance/accounting that would be of help

 

[drbizzaro]

with all the girls you're "sleeping with", im surprised you dont have a real life friend in finance/accounting that would be of help

samwY,

that is purely uncalled for.... I dont see why you need to insult me here - when I haven't done anything to insult you....

 

[Bennyboy]

It appears that you only calculated for Federal Tax. What about FICA, State tax, and local (if applicable) taxes? I know where I work over the summer I get gouged by all of them.

 

[drbizzaro]

It appears that you only calculated for Federal Tax. What about FICA, State tax, and local (if applicable) taxes? I know where I work over the summer I get gouged by all of them.

do you know the approx percentage of each?

FICA = %?
state tax = %?
local tax (for wherever you're from) = %?

i'm hoping those dont add up to another 30% because that would cause us to reduce our income to a very low sum!

 

[TPMOH]

do you know the approx percentage of each?

FICA = %?
state tax = %?
local tax (for wherever you're from) = %?

i'm hoping those dont add up to another 30% because that would cause us to reduce our income to a very low sum!

FICA = 7.65%

State tax usu around 2%

local tax around 1-1.5%

Remember, federal tax is taken from Taxable Income- thus if you were single and made 100K and had no house so you couldn't itemize, you would subtract around 4,800 for standard deduction and 3,100 for personal exemption deduction. Thus, you would be taxed on about 92K. Of course, if you had a home and had other itemized deductions, this figure would be less.

 

[drbizzaro]

FICA = 7.65%

State tax usu around 2%

local tax around 1-1.5%

Remember, federal tax is taken from Taxable Income- thus if you were single and made 100K and had no house so you couldn't itemize, you would subtract around 4,800 for standard deduction and 3,100 for personal exemption deduction. Thus, you would be taxed on about 92K. Of course, if you had a home and had other itemized deductions, this figure would be less.

TPMOH,

what is your recommendation on how to get enough money to buy a condo/home right after graduating? (if the person did not take out any loans)

Would going into a walmart style setting for 2 years be beneficial for the quick cash?

 

[cpw]

with all the girls you're "sleeping with", im surprised you dont have a real life friend in finance/accounting that would be of help

yes, this attack was uncalled for... please don't attack other users. This is a happy forum 🙂

 

[samwY]

attack? you're kidding right

Anyways, I'm done posting in this thread.

 

[TPMOH]

TPMOH,

what is your recommendation on how to get enough money to buy a condo/home right after graduating? (if the person did not take out any loans)

Would going into a walmart style setting for 2 years be beneficial for the quick cash?

With no loans, you would have many options. The quickest way to get a house would be to build a new one in a new-home development. You can get an FHA loan with very little $ down and live in a brand new home shortly after graduation. Corporate optometry may give you the best cash-flow right out of school, but not always. I've heard of some graduates that get lucky and get 100K+ from an OMD right out of school (even though this is rare). With no loans, I would just go into the practice setting that makes you the happiest. If you want to get a conventional home loan, just work for a couple of yrs and live in a cheap apartment so you can save for the 20% down.

 

[Andrew_Doan]

Check out these threads:


http://forums.studentdoctor.net/showthread.php?t=101742
http://forums.studentdoctor.net/showthread.php?t=102094

Here is a simplified net income calculator:
http://www.driverslane.com/calculators/netincome.htm

For $100K/year, an individual will take home: ~$73,000/year

 

[Tony.]

Check out these threads:


http://forums.studentdoctor.net/showthread.php?t=101742
http://forums.studentdoctor.net/showthread.php?t=102094

Here is a simplified net income calculator:
http://www.driverslane.com/calculators/netincome.htm

For $100K/year, an individual will take home: ~$73,000/year

Dr. Doan, I checked the threads you posted. (very helpful);
you touched on retirement a little bit and it got me wondering about age!
Like, as an OD or even OMD, what is a good age to retire?
you mentioned ages 60-65. Have you ever seen doctors retire at a later age?

 

[stompy]

What about if there were loans?

 

[I-Ball]

In Canada, if you're making 100K you lose 52% right off the bat.

 

[xmattODx]

In Canada, if you're making 100K you lose 52% right off the bat.

but you get to live in Canada!

 

[I-Ball]

but you get to live in Canada!

That's true, but is it worth it?

 

[xmattODx]

That's true, but is it worth it?

For a Canadian who has lived in the US for 6 years and misses Tim Horton's? Yes.

 

[I-Ball]

For a Canadian who has lived in the US for 6 years and misses Tim Horton's? Yes.

Hahahahaha, good call.

I should send you their french vanilla mix or something. I think ideally I'd work in the states for a couple of years. I'd try to live cheap and maybe work two jobs so that I can make as much as possible and then come back and stay here.

 

[tupac_don]

Here's a question for those of you who have graduated and started working, or anyone who is knowledgable in financial issues:

After graduating from an optometry school, how much will you have available in spending money (after taxes). [ also note: for this scenario, the person does not have any loans, as they have obtained tuition money via some method ]

ie. lets say the person is making 100,000.00 USD a year

-how much of this goes to taxes?
-if they decide to just rent a condo/apartment, what is the average price? (per year)
-also, assume they want to save approximately 20,000.00 a year for investments.

I'm just curious as to how much you guys think the person will have left over after taxes and such.

Some friends of mine said that 100,000.00 would only leave them with less than 50K after taxes. I hope this is wrong.

Well it depends, if you are single or not and how many dependents you have. If you are single and have no dependents you will get taxed the most, roughly about 40% of your paycheck. I know taxes are bitch but that's the way it is. The best way to defend yourself is to know the law and invest in a good retirement plan instead of giving money away. But you can expect clear cut about 50-60 grand after all is set and done. Best of luck

 

[Xalatan1]

Here's a question for those of you who have graduated and started working, or anyone who is knowledgable in financial issues:

After graduating from an optometry school, how much will you have available in spending money (after taxes). [ also note: for this scenario, the person does not have any loans, as they have obtained tuition money via some method ]

ie. lets say the person is making 100,000.00 USD a year

-how much of this goes to taxes?
-if they decide to just rent a condo/apartment, what is the average price? (per year)
-also, assume they want to save approximately 20,000.00 a year for investments.

I'm just curious as to how much you guys think the person will have left over after taxes and such.

Some friends of mine said that 100,000.00 would only leave them with less than 50K after taxes. I hope this is wrong.

just make sure you invest wisely

 

[aphistis]

Expecting to save $20,000 a year out of a $100,000 gross salary is pretty optimistic, and especially right out of school might not even be realistic. You can probably expect to toss about 1/3 of that out the window in taxes, then you have debt repayment & living expenses. Sure, you *can* live extra cheap and save up a couple billion for retirement (saving $20,000 a year starting at age 26 will leave you with a pretty nice retirement egg), but why wait till then to start enjoying your income?

 

[LestatZinnie]

Expecting to save $20,000 a year out of a $100,000 gross salary is pretty optimistic, and especially right out of school might not even be realistic. You can probably expect to toss about 1/3 of that out the window in taxes, then you have debt repayment & living expenses. Sure, you *can* live extra cheap and save up a couple billion for retirement (saving $20,000 a year starting at age 26 will leave you with a pretty nice retirement egg), but why wait till then to start enjoying your income?

I would not be a miser while I'm young and working, but I don't want to work till 60 either. The ability of some health professionals to work are linked to their health and age. I'd rather have the option to retire when I want, rather than not being able to retire because I haven't saved enough. Given inflation and such, our generation need to save at least a million or two to retire in comfort.

 

[aphistis]

Fair enough, but speaking purely for myself, I don't know that I'll ever completely retire unless my health requires it. Practicing a day or two a week will be a piece of cake, a productive way to spend time, and a significant boost to retirement income.