Pre-med investing

[Neutropix]

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I have a query regarding investing as a pre med. I am at least 2.5 years out from matriculating into medical school (if I get accepted). However, I would like to start investing now, but I am admittedly a total novice.

I currently have a 401k through the scribing company I am working for. I understand that with certain Roth accounts I could roll my 401k. I also have read that with Roth IRAs, if one's income exceeds certain limits they are ineligible to invest. However, I have also heard there are ways to invest through a backdoor method.

So what course of action would you all take? Make a trad IRA, roth, none?!

Lastly, does anyone have any recommendations for credit cards one could use for applying to med school. I have a Wells Fargo college card with a 3,500 limit, but I fear that may not be enough.

 

[deleted480308]

I have a query regarding investing as a pre med. I am at least 2.5 years out from matriculating into medical school (if I get accepted). However, I would like to start investing now, but I am admittedly a total novice.

I currently have a 401k through the scribing company I am working for. I understand that with certain Roth accounts I could roll my 401k. I also have read that with Roth IRAs, if one's income exceeds certain limits they are ineligible to invest. However, I have also heard there are ways to invest through a backdoor method.

So what course of action would you all take? Make a trad IRA, roth, none?!

Lastly, does anyone have any recommendations for credit cards one could use for applying to med school. I have a Wells Fargo college card with a 3,500 limit, but I fear that may not be enough.

Save cash for applying

Read white coat investors book

 

[TakotsuboOkazaki]

Honestly, it doesn’t make much sense to invest when you have educational debt.

It is unlikely that a novice investor or a traditional vehicle (401k, IRA, etc.) will give a greater retuen rate than the interest on your loans (~6-7% for most).

If you have no debt, then do what @sb247 says and save for applying first. Read all you can. Don’t fall into any scams or wild card penny stocks lol.

 

[smukke]

Steps to take once you start working full time:
1) Save application fund plus a 3-6 month emergency fund (and forget the emergency fund exists unless it's an actual emergency) in liquid accounts (ie checking/saving)
2) Contribute to 401k until company match maxed out (may consider skipping if you aren't staying long enough to vest).
3) Fund IRA $2000 for IRS Saver's Credit (probably Roth at this point but there are benefits to trad for someone considering going back to school full-time, ie convert to Roth during years 2-3 when no income)

If you still have money left over:
4) Max out IRA
5) Consider maxing out 401k
6) Vegas/Bitcoin/H&B/???

Highly suggest index funds or target-date/life-cycle funds to start and have the majority invested.

 

[MD-2022]

S and P 500 ETF also works.

 

[RNtoMD87]

I invested about $10,000 into Canadian Maple Leafs back when silver was 13.00 an ounce and bought a machinegun which has really increased in value. I bought a powder springs mac for $4,250 with a suppressor, and it is now valued around 8,500. I have a friend selling an IMI UZI for 12,500 which is a pretty fair deal in todays market, but my real dream is to own an MP5SD (around $30,000). Once I shot one, I was sold. Unless the registry is reopened which will never happen, they're a solid investment.

I don't trust fiat currency so I haven't invested heavily into a fiat based system. I just keep enough liquid assets in case of emergency.

I am interested in bitcoin but also skeptical at the same time. I fear it is a hidden Ponzi scheme.

That being said I do have about $60,000 in a roth ira that I put into from the time I was 18 until I was about 28.

 

[BigRedBeta]

I have a query regarding investing as a pre med. I am at least 2.5 years out from matriculating into medical school (if I get accepted). However, I would like to start investing now, but I am admittedly a total novice.

I currently have a 401k through the scribing company I am working for. I understand that with certain Roth accounts I could roll my 401k. I also have read that with Roth IRAs, if one's income exceeds certain limits they are ineligible to invest. However, I have also heard there are ways to invest through a backdoor method.

So what course of action would you all take? Make a trad IRA, roth, none?!

Lastly, does anyone have any recommendations for credit cards one could use for applying to med school. I have a Wells Fargo college card with a 3,500 limit, but I fear that may not be enough.

1a) pay off any credit card debt
1b) save for emergency fund (depending on your financial guru of choice either 3 months of living expenses or just $1000)
2) Save for applications
3) While you're working, contribute to your 401k at least as much as your company matches (it's free money). Since most people want to pay less taxes now, the general advice is contribute to your 401k until you reach the max ($18,500 this year), then if you want to save more, look at other vehicles like a Roth.
4) The benefit of the Roth is that when you withdraw the money in retirement it's tax free, but the kicker is that the money you invest is after tax NOW. It's unlikely that you'll reach the income limits on Roth contributions any time soon (unless Scribes make far more money than I realize). You can contribute to Roth IRA's up until $135k annual earnings if Single, and up to $189k if married filing jointly. So long as you are earning under these amounts, the Backdoor Roth doesn't apply to you, just contribute to your Roth normally (max contribution is $5500/yr)
5) If you have money after you have maxed out tax-advantaged accounts for retirement savings, then you can consider taxable accounts for "investing". But this should only be with money you feel comfortable possibly losing. At your stage in life, probably far better to just keep saving away so that you can take out fewer loans for medical school.