Pharmacists take home pay?

[PharmDBro2017]

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Not to change topic, but you have to do what you find joy in. I thought I was on the 3 year loan repayment plan but I burned out of retail and only lasted 11 months. Took a BIG pay cut (I'm talking a brand new Mercedes car every year) but didn't let that affect my outlook on loans *too* much. I now make more than retail so its time to get aggressive with loans again 🙂

What is your job now? Just slightly confused by your post.... saying you took a mercedes sized pay cut, yet now make more than retail.

Sure, that's a fair point and everyone's path is going to be different. My point was just to encourage people to get out of debt, because being debt free gives you so many more options in life. I'm not trying to brag but I paid off all my student loans and mortgage at age 33 and it feels so amazing since I can now do whatever I want. I have about $5-6k/mo in free cash flow which is plenty to buy most things without getting too wild. Or I can throw the money into investments so that it will grow and provide a passive income. Or I could cut my hours or take unpaid time off to go on a vacation. Or I could take a pay cut for the less stressful jobs like you did. Or...

I like the way you think and I'm hoping to be out of debt in relatively the same time frame. I'll graduate in 2017 (P3.5) with 180k or so with my pharmd/undergrad and wifes undergrad combined. Would like to pay it all off in 3-6years. I'm thinking of residency but my thoughts of paying off my debt asap outweigh the residency... idk what to do.

 

[BMBiology]

Sure, that's a fair point and everyone's path is going to be different. My point was just to encourage people to get out of debt, because being debt free gives you so many more options in life. I'm not trying to brag but I paid off all my student loans and mortgage at age 33 and it feels so amazing since I can now do whatever I want. I have about $5-6k/mo in free cash flow which is plenty to buy most things without getting too wild. Or I can throw the money into investments so that it will grow and provide a passive income. Or I could cut my hours or take unpaid time off to go on a vacation. Or I could take a pay cut for the less stressful jobs like you did. Or...

This guy knows what he is talking about. You become risk adverse when you are in debt. You are not willing to take in risk because you just can't afford. You will be stuck with your 40 hour week job. By then, a nice car, an exotic vacation is not going to change your outlook in life because you know you will be back at your job on Monday.

 

[confettiflyer]

This guy knows what he is talking about. You become risk adverse when you are in debt. You are not willing to take in risk because you just can't afford. You will be stuck with your 40 hour week job. By then, a nice car, an exotic vacation is not going to change your outlook in life because you know you will be back at your job on Monday.

I disagree with the risk thing, but it's a function of my federal loans' generous repayment options that I've been able to take additional risks to generate income and gains.

But I agree if you have stringent private loans you're pretty much a slave to whatever pays the bills.

 

[BMBiology]

You got a good thing going for you...a well paying job + PSLF and loan forgiveness about 10 years. Knowing it is income based, does this discourage you from trying to invest and make extra money?

 

[pezdispenser]

I like the way you think and I'm hoping to be out of debt in relatively the same time frame. I'll graduate in 2017 (P3.5) with 180k or so with my pharmd/undergrad and wifes undergrad combined. Would like to pay it all off in 3-6years. I'm thinking of residency but my thoughts of paying off my debt asap outweigh the residency... idk what to do.

Actually I have to give credit to Dave Ramsey for motivating me to get out of debt. I agree with his principles of focusing on one debt at a time to knock them out and to stay motivated. Also how he teaches you to budget and save so that ultimately you and your family tree will stay out of debt forever. However his investing advice is pretty bad, so once you have paid off your debts, I recommend you look to other places like Vanguard / bogleheads.org

About doing residency, my story is I've been an intern, then a pharmacist in retail for the same company for almost 10 years. I didn't do a residency, and never worked hospital before. I'm about as 'retail' as you can get. But this year, I still was able to get a per diem hospital job and have been doing fine. Yeah I'll admit it's harder to get a hospital job, but it's not impossible without a residency, hospital experience, or if you have been in retail for 'too long'.

 

[confettiflyer]

You got a good thing going for you...a well paying job + PSLF and loan forgiveness about 10 years. Knowing it is income based, does this discourage you from trying to invest and make extra money?

Not necessarily...without detailing too much, I'm opting out of the S election for 2016 for my corporate entity. I lose the pass thru mechanism (I was able to pass through losses previously to my personal income tax return...this year was a good year I think I detailed before, next year looks a lot better).

But that'll keep profits in the business and the only compensation I'll take is some token salary that I'll promptly shuttle into an IRA. Net effect on my income is practically zero.

So to answer your question...yes, if I didn't have these mechanisms to reduce this income, I would wait until the 10 year clock before seriously pushing risk for a profitable business. But, if anything, having an income based payment should theoretically push people to start their own businesses and let the losses flow through to their AGI. Once something is profitable, incorporate into a C-corp and keep the profits there.

But doing this is far beyond what I would expect your average pharmacist is comfortable doing.

 

[confettiflyer]

I was reading this and thinking wtf is he talking about until I realized you own a company of some sort lol

lol, you make it sound like I'm steve jobs or something. no it was a pre-pharmacy life hobby that ebbed and flowed, turned it into a formal business during pharmacy school, and it sort of took off in the last year.

Completely non-pharmacy related, and definitely not replacing all of my pharmacy income.

 

[BMBiology]

lol, you make it sound like I'm steve jobs or something. no it was a pre-pharmacy life hobby that ebbed and flowed, turned it into a formal business during pharmacy school, and it sort of took off in the last year.

Completely non-pharmacy related, and definitely not replacing all of my pharmacy income.

How much are we talking about? Lol

 

[RimzyA]

Does anyone have any idea how sign on bonuses are taxed?

 

[trailerpark]

A lot? [emoji12]

 

[ChalupaBatman86]

Does anyone have any idea how sign on bonuses are taxed?

They are taxed as ordinary income.

 

[pezdispenser]

Does anyone have any idea how sign on bonuses are taxed?

The tax withheld is usually flat rate 25% + 6.2% Social Security + 1.45% Medicare. But at the end of the year on your tax return, bonuses are just taxed like regular income so that 25% may not be enough if you are in the 28% or higher tax brackets, so you will have to pay a bit more tax.

 

[RimzyA]

The tax withheld is usually flat rate 25% + 6.2% Social Security + 1.45% Medicare. But at the end of the year on your tax return, bonuses are just taxed like regular income so that 25% may not be enough if you are in the 28% or higher tax brackets, so you will have to pay a bit more tax.

I am still a student right now and I don't even make up to $10K from my intern job.

 

[confettiflyer]

I am still a student right now and I don't even make up to $10K from my intern job.

Don't forget to subtract like $30k for tuition, so you're more like ($20k), not even including living expenses.

Ah student life.

 

[pezdispenser]

I am still a student right now and I don't even make up to $10K from my intern job.

So if you end up in the 15% tax bracket for the year, some of that 25% withheld will be refunded to you on your tax return.

 

[RimzyA]

So if you end up in the 15% tax bracket for the year, some of that 25% withheld will be refunded to you on your tax return.

Awesome, I just got an offer that includes a bonus. Thanks for the info

 

[TonyRx]

How come your tax liability is so low?

Nothing fancy. I claim 01 on federal exemptions, however, I am married with no children.


Per Paycheck:

Federal Tax: 14%
FICA: 6%
Medicare: 1.5%
Medical Insurance: 2.5%
401K Profit Sharing: 4%
Dental/Vision: 1%
State Tax: None

Gross 128,000k, take home ~91k.