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CutsWithFury

CutsWithFury

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What are you invested in? Where do you put your extra money into? Figured this is a nice change of pace thread for attendings to comment on what they do with their extra money to get extra growth and achieve financial freedom.

My investments:

- Cardano (crypto) + other random alt coins
- Stocks - mix of dividend stocks for passive income (REML, MAC, ORC, USOI, etc)
- 403b (through employer) - max it out every year 19.5K
- 529 Savings account for my child

- Property - own a condo in SoCal (through marriage but I pay for it now). We do not rent it though (trying to change her mind)
------------------

I am employed through a hospital MSG so I can not buy into a surgery center. I would def do it if I could. I am thinking I probably should start an IRA account as well and max that out.

What else are you invested in and why?
 
Sold nearly all of my crypto holdings earlier this year. I have a Roth IRA, 403(b) and 457 something. The Roth and the 403(b) are maxed out every year. 529 for the kids. An old HSA but no current eligible health plan so that money just sits there.

We are waiting for a contractor to do some work around the house, and once that’s done the plan is to begin saving for real estate/rental properties. However, that may or may not ever happen with housing supply (or lack thereof) causing prices to go through the roof. I haven’t looked far outside of our market but we couldn’t cash flow a single family home locally without putting 30-40% down. And we are by no means in a booming metro or a state you would normally assume has high property values. I think I’ll have to go out of state in the short term but I’m comfortable enough with some out of state markets that I’d be willing to do that.
 
I have never done crypto... doesn't make sense to me. Probably missing out but plenty of other ways to make money.
I do about half indexes (spy, voo, vwo, etc) and half single stocks and usually sell calls on all of it. Goog has been my biggest single holding for years now. Theme parks like Six and Fun and Seas and some of the petro companies were rockstars last year, and Nvo buy-in before they dropped Wegovy has been huge for my girl and I this year. Starting (probably too late) to build a position in Fwrd airline now also.

I put most of the dividend cows and reits in the Roth account and most of the stuff I view more speculative and expect to rise on share prices in the cash accounts. My 401s have all been rolled over to trad IRA.... I think I get new 401 match at next job after one year, but I tend to hate 401/403s since you have to buy their stupid choices and pay ticky tack fees. It kinda has to be done to get some money in pre-tax, though.

I probably need to diversify beyond 95% in equities. I basically just do all stocks/index and a bit of physical gold/silver. I doubt my Harley is an "investment" even if I wish it was and sure spend money into it like it is gonna be a classic someday, lol. Real estate doesn't interest me much even though I have family members who did very well on rentals or flips. We keep renting to be able to pivot easily and since you can rent monthly for 0.5% to 1% of the purchase prices in most areas... so buy prices just seem insane to me. I keep "cash is king" available if a surgery center or practice or something came available that made sense. I will probably do my own practice someday... or just keep buying more and more spy to sell calls on and eventually have 100 shares of goog to sell calls on that also? Lol.
 
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-401k maxed with fat match yearly from msg
-private brokerage with mainly dividend aristocrats. I am heavy in MO/IRM/O/XOM/STAG.

Currently buying up T as I believe it to be under valued as they are a cash cow and current price does not adequately account for value of HBO spinoff/merger (obviously do your own research).

-Does my sports car count? Went up like 10k in value this year
 
- 401k maxed with match from MSG
- Big investment into surgery center
- YOLO'ing stonks all day
 
PeaJay said:
-401k maxed with fat match yearly from msg
-private brokerage with mainly dividend aristocrats. I am heavy in MO/IRM/O/XOM/STAG.

Currently buying up T as I believe it to be under valued as they are a cash cow and current price does not adequately account for value of HBO spinoff/merger (obviously do your own research).

-Does my sports car count? Went up like 10k in value this year
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What is "T"?

Teach us grand wizard
 
Max out my 401k through MSG with 5% match
Max out my IRA with backdoor roth conversion each year
I pay a little extra on my house every month (~$500) even though its dumb to do so because my interest rate is minimal compared to what im making in the markets.
I put any extra towards my student loans every month and this is the bulk of my "investment" is paying those things down.


I have about 20k in private stocks. Many doing just ok or losing. Natural gas and uranium are really making money. Especially Uranium. Bought a lot of UUUU and DNN about a year ago and both are up about ~500%.

I've found a trend that if you follow reddit closely and just do what they say/get in at the start of the hype there is some serious cash to be made. Missed out on gamestop/AMC (still going? Im not investing. too risky/missed the initial spike). Missed out on some of the crypto hype. Was following but failed to pull the trigger on a lot of hot topics on there. But I jumped on board with r/uraniumsqueeze and glad I did. In retrospect I remember them pumping GME then AMC, dogecoin, shibainu well before it took off. WIsh I would have jumped on board way back when. If I see a trend like that again in the future im going to throw some money at it.

Im about to cash out on uranium and put the cash towards student loans. But it just keeps going up and up.

Edit: I did buy about 300 loopring tokens a couple weeks ago based on r/superstonk r/wsb hype. Im up about 200%. Ill probably sell soon.
 
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-paid off all debt years ago—-do not skip this step
-pay for everything in cash
-max 401k
- max backdoor Roth’s for both wife and i
-part owner of large group practice which includes 4 our buildings (in a separate LLC)
-part owner of a surgery center
 
DrMaseofBase said:
-paid off all debt years ago—-do not skip this step
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ding ding ding^^

The fewer required monthly payments, the better. Debt is never scary until a bad economy or unexpected job gap or divorce or something hits... and then the wheels can fall off pretty fast.

Getting a 4% or 5% or 7% or whatever guaranteed return doesn't seem great with the market the way it has been the past couple years, but I try to think of overpaying on loans (or mortgage, if I had one) like buying bonds... really good bonds with compounded lifelong returns. It gets rid of the payments and frees up your income to buy good stuff going forward, and it gives you that peace of mind if you or the economy overall hit a speedbump.

...this thread is confusing, though. I always though podiatrists made 100k before taxes (if they had a job at all), could barely afford to put gas in their 2007 Ford Focus, and were behind on rent for a Tenderloin district studio apt?
 
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Feli said:
...this thread is confusing, though. I always though podiatrists made 100k before taxes (if they had a job at all), could barely afford to put gas in their 2007 Ford Focus, and were behind on rent for a Tenderloin district studio apt?
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Haha seems to be the common trend on this board yet most of us are are crushing it

My loans are almost gone. Cant wait.

Loopring is up 35% today
 
As I have said, I think 8 of my closest friends from pod school/residency etc are all crushing it, 300k minimum most closer to 350 or so.
 
CutsWithFury said:
I probably should start an IRA account as well and max that out.
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You 100% should do this. Always take tax deferred deductions when available. Convert it to a backdoor roth IRA so when you get to retirement you can lower your income by using the roth and ultimately pay less taxes in retirement. Win/win.

IRA - you pay no taxes now and it grows tax free until retirement. You pay tax when you withdrawl later

Roth - you pay taxes on it now but it grows over the years and at retirement you owe no tax on that money. WHich can significantly lower your monthly income and pay less taxes during retirement.
 
-401k maxed out and I match myself 100% from my practice and can add additional at the end of the year depending on what my CPA says
- HSA account maxed out and paying for any medical expense out of pocket (I have a high deductible plan)
- $12K/year in 529 Savings account for 2 kids
-.For fun, Just opened a vanguard brokerage account and putting $200/month after tax money each month in target 2050 retirement index fund (will probably increase this as needed)
- My outstanding debts are Student loan, Practice business loan and Mortgage which I am comfortably making monthly payments on all.

Paid off one of my private loans and will refinance the Federal student loan after they end the 0% interest rate pause. Maybe Congress will extend it again by January 2022? Either way once I enter repayment, I have no worries paying $2K/month on student loans but until then I will just save the extra cash (In the next few years, use the cash for downpayment on an office building and move my practice so I pay myself rent)
 
I guess I would echo that debt should be paid off as soon as reasonably possible. Paid mine off besides my mortgage with sign on money
 
619 said:
-401k maxed out and I match myself 100% from my practice and can add additional at the end of the year depending on what my CPA says
- HSA account maxed out and paying for any medical expense out of pocket (I have a high deductible plan)
- $12K/year in 529 Savings account for 2 kids
-.For fun, Just opened a vanguard brokerage account and putting $200/month after tax money each month in target 2050 retirement index fund (will probably increase this as needed)
- My outstanding debts are Student loan, Practice business loan and Mortgage which I am comfortably making monthly payments on all.

Paid off one of my private loans and will refinance the Federal student loan after they end the 0% interest rate pause. Maybe Congress will extend it again by January 2022? Either way once I enter repayment, I have no worries paying $2K/month on student loans but until then I will just save the extra cash (In the next few years, use the cash for downpayment on an office building and move my practice so I pay myself rent)
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wasting time with target fund in a brokerage account. Personally i am against target funds, but if going to do so do inside 401k/IRA. Brokerage accounts are for individual stocks and higher risk picks.
 
air bud said:
wasting time with target fund in a brokerage account. Personally i am against target funds, but if going to do so do inside 401k/IRA. Brokerage accounts are for individual stocks and higher risk picks.
Click to expand...
We've all read (multiple responses with "can average investor beat index fund?" google search) that the average or professional investor... well.. wont beat the index fund.

Ive been making 20ish percent in index funds over the last 4-5 years. I do have a small vanguard admiral index target retirement fund that is also making me 20ish% in this awesome bull market. I didnt list it above because its not huge. But it is growing.

Minus my uranium and natural gas picks (and loopring! - which I am joking about somewhat because I have a whole $100 invested) im losing on most individual stocks. I am up based on uranium alone tho...

But hey. HIgh risk high reward. WIn it all or lose it all right?

(I prefer index fund myself - I do get a kick out of wall street bets though).


Edit: This has been an insane bull run and 20% is obviously not going to last forever. But my point was made. I barely beat the index fund even in a bull market all thanks to lucky gamble with uranium.
 
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DYK343 said:
We've all read (multiple responses with "can average investor beat index fund?" google search) that the average or professional investor... well.. wont beat the index fund.

Ive been making 20ish percent in index funds over the last 4-5 years. I do have a small vanguard admiral index target retirement fund that is also making me 20ish% in this awesome bull market. I didnt list it above because its not huge. But it is growing.

Minus my uranium and natural gas picks (and loopring! - which I am joking about somewhat because I have a whole $100 invested) im losing on most individual stocks. I am up based on uranium alone tho...

But hey. HIgh risk high reward. WIn it all or lose it all right?

(I prefer index fund myself - I do get a kick out of wall street bets though).
Click to expand...
oh I do index funds don't get me wrong. Just not in brokerage account. or at least not if starting out with 200 bucks a month. Yolo that. Putting in 19k into your 401k? index fund

also, put a few k into URA today...

and when I say I am against target funds, it is mainly because they are going to include bond funds and some international stuff. 100 percent US equities no reason not to last few years and for forseeable future
 
Maxed 401k and both Roths. Brokerage has a mix of total stock index, total bond index, and total international. Goal for next year is to clean up brokerage accounts. Overrepresented in bonds for buyin/vs starting practice. Non-ideal for tax purposes also.

I know its quaint to say "I'm going all stocks" but literally - all future investments will be stock. Have long horizon. Have never sold a stock since starting in 2008. Have held bonds at way too many points for purposes of paying for things.

Amusingly, bought total international index this year out of sort of Boglehead guilt and I know I have a long horizon, but man - what a turd. Wish it all been American baby.

Have 529.
Have old HSA moved to Fidelity and invested in stocks.
Have 2% cashback card - no one has said anything about that yet 🙂

Need to make a will.
 
I can talk points, miles and churning all day I'd you guys want. Although I don't have time for this stuff now. With my previous job where we all know I never worked and had more time than I knew what to do....
I made about 4k the previous year just in bank bonuses. Churned 7 credit cards for myself and 8 for my wife. Now that I am busier with Ortho, I don't have time to enjoy them. But at least now when I do it will but through points. Hyatt category 7 with suite upgrades on points here I Come...

Edit- this year sticking with just surveys (medical). Made maybe 2k. Easy way to justify my growing bourbon/rye collection...
 
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As mentioned above I max out my my 401k and get a large match. On the tune on 10% of income. My family income phases me out of Roth IRA and situation eliminates initial tax benefits of traditional ira. I assume most here are in the same situation. What are everyone’s thoughts on still contributing to a traditional ira? Is the growth without the drag of taxes worth the high tax on withdrawal?
 
PeaJay said:
As mentioned above I max out my my 401k and get a large match. On the tune on 10% of income. My family income phases me out of Roth IRA and situation eliminates initial tax benefits of traditional ira. I assume most here are in the same situation. What are everyone’s thoughts on still contributing to a traditional ira? Is the growth without the drag of taxes worth the high tax on withdrawal?
Click to expand...
Look into backdoor roth IRA. We dont qualify for roth IRA. But there is still a way in...

White coat investor podcast is worth a listen on the topic. Its one of the first 5 podcasts.

Disclaimer. Its not technically illegal or legal per my understanding. We are not lying and you report it on taxes and the IRS sees it. Its a loophole and they know its happening but so far have not stopped the backdoor roth IRA and people have been doing it for a very long time. So I guess do it at your own risk?
 
DYK343 said:
Look into backdoor roth IRA. We dont qualify for roth IRA. But there is still a way in...

White coat investor podcast is worth a listen on the topic. Its one of the first 5 podcasts.

Disclaimer. Its not technically illegal or legal per my understanding. We are not lying and you report it on taxes and the IRS sees it. Its a loophole and they know its happening but so far have not stopped the backdoor roth IRA and people have been doing it for a very long time. So I guess do it at your own risk?
Click to expand...
last year IRS did release a statement saying was OK giving some clarification. This is not financial advice (I just like the Stonk).
 
dtrack22 said:
What high tax on withdrawal?
Click to expand...

It is my understanding that with an traditional ira, there is a tax incentive for lower incomes, which is not realized with 401k and upper tax bracket. Growth is not taxed until withdrawal. Most of us will likely be in similar tax bracket in retirement, which leads to high tax on withdrawal. As is is taxed as earned income and not long term capital gain.
 
PeaJay said:
It is my understanding that with an traditional ira, there is a tax incentive for lower incomes, which is not realized with 401k and upper tax bracket. Growth is not taxed until withdrawal. Most of us will likely be in similar tax bracket in retirement, which leads to high tax on withdrawal. As is is taxed as earned income and not long term capital gain.
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You will most likely not being in the same bracket then. And also you have no idea what taxes will be like in future. Also one of reasons why people do Roth 401k. Pros cons not time or place. But if you think taxes will be less in the future then you crazy.
 
(a) Do the conversion as indicated above

(b) If you can replicate the same tax bracket in retirement as now you've done amazingly well

(c) All IRA type spaces disappear each year that you don't use them. Having the account allows flexibility in managing your assets in the future. Consider - down the road you decide you want some mix of stocks and bonds across your portfolio - there's an argument on WCI about where bonds go but if you don't want to be taxed on the dividends you can put them in the IRA. Also, in some states IRAs have better protection against lawsuits than brokerage does.

(d) If you really do end up savings tens of thousands of dollars a year you might find yourself retiring earlier. Having a mixture of IRA/401k/brokerage etc allows flexibility in retirement. Some people for example live off their brokerage, convert their IRAs to ROTH when the income is lower, and control their overall total income so they can qualify for income dependent benefits etc.

Use the IRA space.

Taxes probably will be higher in the future. The problem is that they can change the rules even for protected accounts. Previously if you gave your heir Roths, etc they could draw on them forever very carefully. Some rules literally changed a year ago (SECURE act) changing how your heirs have to draw down your accounts ie. for example requiring a 10 year draw down. This is a poor summary but the gist of this is there was a change in a long term used technique for passing on assets and wealth management.
 
DYK343 said:
Look into backdoor roth IRA. We dont qualify for roth IRA. But there is still a way in...

White coat investor podcast is worth a listen on the topic. Its one of the first 5 podcasts.

Disclaimer. Its not technically illegal or legal per my understanding. We are not lying and you report it on taxes and the IRS sees it. Its a loophole and they know its happening but so far have not stopped the backdoor roth IRA and people have been doing it for a very long time. So I guess do it at your own risk?
Click to expand...
It is perfectly legal... nothing you need to worry about. You simply contribute 6k to a trad IRA, call the brokerage a day or two later, and have them put it into your Roth (you can't transfer it yourself). Ergo, you didn't contribute to the Roth, it was reassigned. No big deal. Any CPA or CPA/CFP can explain it better. There are much more elaborate writeups and verbose podcasts and etc, but it really is that simple... and is best to just have one's CPA explain it in one minute. The brokerage rep can usually help also, but they are more reluctant since they don't want to misspeak on anything tax-related.

I would still do a trad IRA, yes. For sure. You want to max all of the spaces (IRA, 401/403, debt reduce, cash accounts... usually in that order but varies by situ) and have choices of pre and post tax monies and retirement and non accounts. It generally doesn't work to play the game of trying to be tax savvy, though. It is silly to keep bad investments or try to hold stocks for a year or other things when you have better gainers available. You'd always rather pay 30% taxes on 30% gains than 15% taxes on 15% gains. Just focus on making money, hire a good CPA, listen to them (usually best to meet Aug-Oct for good availability and advice), and let them sort out what the taxes are or where to put what or what account to draw from for what time/situation. They probably don't do their own foot surgery or injections, why should we pretend to be tax and wealth experts? 🙂
 
air bud said:
You will most likely not being in the same bracket then. And also you have no idea what taxes will be like in future. Also one of reasons why people do Roth 401k. Pros cons not time or place. But if you think taxes will be less in the future then you crazy.
Click to expand...

1. I am fortunate enough that my tax bracket WILL likely be similar. My SO is well paid in a different field and 401k withdrawal etc will lead to a fair amount of taxable income.

2. Not crazy, that was the intent of my question. Does anyone find utility in an traditional ira as we will likely face high taxes on withdrawal and the tax rate is likely to increase with time.

Edit: I guess will is to strong of a term. Can have a similar earned income may be more appropriate.
 
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PeaJay said:
1. I am fortunate enough that my tax bracket WILL likely be similar. My SO is well paid in a different field and 401k withdrawal etc will lead to a fair amount of taxable income.
Click to expand...

If I am withdrawing $400k from my 401k/IRA accounts every year in retirement then I’ve made some terrible mistakes along the way. If your wife is a high income earner and your current income is even higher than that and you anticipate withdrawing a $ amount from tax deferred accounts that equals 100% of your current income, then fine, don’t add an additional $6000 per year of pre-tax money into an account that grows tax free…

People who live in states with income tax (which is most) should also consider that your income is currently being taxed twice where in retirement you will have the flexibility to move to a state with a lower tax burden.

The dollars I put in to a tax protected account are taxed at over 35% thanks to state income taxes where I work. I don’t care what they do to the tax brackets, the $100-200k per year I might need to withdraw in retirement has a 0% chance at being taxed that high.
 
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Thanks for the opinions. Seems like I should devest some REITs and lower the earned income.
 
Feli said:
They probably don't do their own foot surgery or injections, why should we pretend to be tax and wealth experts?
Click to expand...
I whole heartedly agree. However, I think you would agree, there is a need to have a greater than baseline understanding as the financial system. The financial sector is regulated and licensed much different than medicine and is arranged to enrich those working in the financial sector and possibly as a side effect, the client. I mean those mansions in the Hamptons and yachts are not going to pay for themselves.
 
air bud said:
I can talk points, miles and churning all day I'd you guys want. Although I don't have time for this stuff now. With my previous job where we all know I never worked and had more time than I knew what to do....
I made about 4k the previous year just in bank bonuses. Churned 7 credit cards for myself and 8 for my wife. Now that I am busier with Ortho, I don't have time to enjoy them. But at least now when I do it will but through points. Hyatt category 7 with suite upgrades on points here I Come...
Click to expand...

Nothing makes me happier than churning and taking corporations & financial institutions for a ride.
 
Junior Associate Laborer said:
Associates don’t have money to invest
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^Even pod residents should be doing a Roth at minimum. You have to protect something that valuable.
Pod students should be also, but remember you are not allowed to invest with govt loan monies 😇

Priorities are basically:
1 small cash E-fund ~1mo rent,
2 Roth,
3 student loan minimums (defer loans if you can't make Roth first - eg residency, but try to hit minimums aka interest),
4 *cut expenses... live like a resident... drive a 2009 Civic not a 2019 Cedes, drive to Key West not fly to Tuscany*
5 do 401/3 to match level,
6 mortgage past minimum (if you are dumb enough to have one before you can finish off student loans)
7 student loans past minimum (can bump this down a couple more spots to 9.5 if you like... based on loan refi pct),
8 medium E-fund cash savings ~3mo total expenses,
9 do 401/3 to max,
10 cash stock account$$$ or alt invests (real estate, partnership/solo, commodities, metals, startup pimp business, crypto, etc etc)
 
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The following is a diversified portfolio that many people seem to be pursuing lately

1-3 month rent in cash/gold in the attic
Pantry full of dried goods
Guns
Gold Safe
Bitcoin

In a pinch it can be used to take others dried goods, get your computer unlocked, cover a surprise expense etc.
 
I would rank having a good collection of NFTs to this list. I would recommend Wall Street Bulls, Bad Bromatoes or Wall Street Bets
 
VOO, mega caps, and 5% crypto with a couple favorite random stocks.... fintech is a sector I have a lot of.
 
air bud said:
This is the way

Hood is killing it these days...
Click to expand...

lol I never have owned that junk. still not even in a buy zone for me either. year over year their numbers will look trash because the peak of hood was dogecoin and meme stocks.
 
wakaflocka88 said:
Thoughts on SPY vs. VOO ETF?
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Those two and IVV are the same thing... well, supposedly. I don't think it generally matters. VOO or IVV have lower ER.

SPY has a tiny bit higher ER but still very low and is the most liquid if you like to sell calls/puts (or buy them I guess). I buy SPY and SCHX to usually sell covered calls every few weeks on up market days when the calls are worth more, but I think I have some VOO and IVV in other accounts that are more buy-n-hold also (IVV was free to trade in Fidelity for many years back when there were $7 buy/sell fees... but now everything is free trades - besides some dinosaur mutual funds).

They are all 99.9% similar in perform/expense/etc in my eyes... SCHX technically isn't an index, but it tracks it nearly identical and is much cheaper to get 100 shares for covered calls than the other three. VTI or total market US ones will be similar also since the 500 is 80% of the total. Basically, all except SPY are not too liquid for options, though. If you want to do options, SPY and pay the 0.09 to potentially make a lot more in calls. If you want to hold long term, any of the other three for 0.03.
 
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DrMaseofBase said:
-paid off all debt years ago—-do not skip this step
-pay for everything in cash
-max 401k
- max backdoor Roth’s for both wife and i
-part owner of large group practice which includes 4 our buildings (in a separate LLC)
-part owner of a surgery center
Click to expand...
sounds like another Dave Ramsey follower
 
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