Pay as a Resident & Beyond?

[SeminoleFan3]

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My fiance and I are trying to figure out how quickly we can pay back our student loans. The sooner, the better (obviously).

So, AFTER TAXES, how much does a Naval resident make (with no prior experience)? Does this remain constant over the 3 years of training?

Also, how much will an IM doc make after residency (after taxes)?

 

[Kingfisher]

My fiance and I are trying to figure out how quickly we can pay back our student loans. The sooner, the better (obviously).

So, AFTER TAXES, how much does a Naval resident make (with no prior experience)? Does this remain constant over the 3 years of training?

Also, how much will an IM doc make after residency (after taxes)?

1. How much you make after taxes will depend on how many dependants/exemptions you have. That will remain constant as long as your pay remains constant. You should recieve a pay raise each year (hopefully) as well as when your husband goes over the 2 and 3 year marks. Also, BAH and BAS are not taxed.


http://www.dfas.mil/militarypay/militarypaytables.html

http://perdiem.hqda.pentagon.mil/perdiem/bah.html

 

[SeminoleFan3]

I'm the military one. He's going to be in a civilian program.

 

[SeminoleFan3]

Does your spouse count as a dependent?

If 65K a reasonable figure with one dependent after taxes during residency?

 

[pgg]

Search the forum for similar questions.

My fiance and I are trying to figure out how quickly we can pay back our student loans. The sooner, the better (obviously).

So, AFTER TAXES, how much does a Naval resident make (with no prior experience)? Does this remain constant over the 3 years of training?

If you're married you get the higher "BAH with dependents" pay; if you have a fiance the Navy pays you as if you're single.

The short version:
Base pay (O-3 with <2 years): $3407/month
Variable Special Pay as an intern: $100/month
Basic Allowance for Subsistence: $203/month

BAH (O-3 with dep) at Portsmouth: $1753/month
BAH (O-3 with dep) at NNMC: $2357/month
BAH (O-3 with dep) at San Diego: $2220/month

So roughly $5500-6000/month as an intern. BAH/BAS are not taxed.

You'll get a pay raise as a PGY-2, when your VSP increases from $100/month to $417/month.

You'll get a pay raise as a PGY-3, when your base pay increases from "O-3 with <2 years" to "O-3 with over 2 years" ... in 2008 dollars that's a raise from $3407/month to $3862/month.

If you do a GMO tour, you'll get the $15K/year ASP bonus while you're a GMO, and if/when you return to military residency, you'll have a higher base pay due to the extra time in service. (You lose the ASP bonus when you return to residency.)

Also, how much will an IM doc make after residency (after taxes)?

You get base pay, BAH, BAS, ASP, VSP, ISP, BCP. The total depends on where you are stationed (BAH), your time in service (base pay & VSP), and specialty (ISP). All these figures except BAH are in the pay tables. BAH rates can be obtained from the page previously linked.

 

[colbgw02]

I think the most important question is what interest rate have you locked in for your student loans?

My wife and I are in a similar situation, except reverse it (I'm military). We locked in ridiculously low interest rates a few years back (somewhere between 2% - 2.5%). Currently, my loans are in forebearance and will remain so as long as I'm a military resident. Her loans are in deferment, but only because we live in an area of the country where her salary is considered an economic hardship (snicker).

The average annual rate of return on the stock market since 1929 after the average annual inflation rate is subtracted away is about 7%. That tells me that - over a long enough period - if I pay the absolute minimum on our student loans and invest the rest, I'll come out way ahead than if I tried to pay off my loans as fast as possible.

This is especially true when you consider that time in the market, not amount, is the single most important factor in accumulating wealth. Also, your collective income will go up overtime, incrementally at first and then dramatically as both you and your fiance leave residency and the military. As that occurs, if you're smart, your increase in income will out pace your cost of living. That means that you're better off putting off any debt repayments until later, when a greater percentage of your income is not tied up in cost of living expenses.

To put it succinctly, $1000 today is worth about $2000 ten years from now.

Obviously there are other factors, like the convenience of ridding yourself of a significant debt. Or, the difference in your loan interest rate my not be sufficient to make it worthwhile. But, it's something to think about.

 

[SeminoleFan3]

Dunno where you're going, but I will tell you that as an NNMC Intern with <2y in service, my average paycheck after taxes is about $2800 every 2 weeks. Pay "with dependents" applies if you just have a husband, or if you have a husband and 9 kids. Good incentive to use birth control, if you ask me.

Quick question for everyone else related to my upcoming move. When I punch in the zip code for Camp Lejeune in the BAH calculator, I get $1250/mo, but when when I put in the zip code of my new house in Swansboro, I get the Cherry Hill BAH of $1455/mo.

So which BAH do I get?

Thanks, Tired. That's what I was looking for.

 

[pgg]

So which BAH do I get?

Use the ZIP of your duty station.