Retirement Plans

[eefen]

Advertisement - Members don't see this ad

So I'm entering medical school this fall with an interest in EM (may change, I know, but I've been working in or around an ED for about three years...). In any case, as I'm looking at the offered financial aid "award packages" from various schools ("Congrats! Here's 300k+ in debt!") and looking towards the future, one of the things that has come up is planning for retirement.

My general plan (until life and children strike...) is to try and stay on top of interest during residency, pay off schools loans (which will all be at 6.8% or more) fairly aggressively immediately afterwards (within 5-6 years, hopefully). During residency, it would be awesome to end up a place with a matching 401k or similar plan. Afterwards, I'd continue investing but step it up dramatically once loans are paid off.

Anyway....my question is this: what are the typical retirement plans offered by EM groups? Are there 401k matches, etc.?

 

[Hercules]

It varies widely depending on the type of group (academic, contract management, small democratic group, hospital employee, etc).

 

[Greenbbs]

It is all variable. You could hit the jackpot like I did, and have a defined-benefit pension, in addition to what we save and what is mandatory for us to put away out of our paychecks, but every situation is different. I know guys that I did residency with that are independent contractors that have zero benefits and have to put all their money away on their own, rather than having some plan set up for them.

 

[krl7044]

So I'm entering medical school this fall with an interest in EM (may change, I know, but I've been working in or around an ED for about three years...). In any case, as I'm looking at the offered financial aid "award packages" from various schools ("Congrats! Here's 300k+ in debt!") and looking towards the future, one of the things that has come up is planning for retirement.

My general plan (until life and children strike...) is to try and stay on top of interest during residency, pay off schools loans (which will all be at 6.8% or more) fairly aggressively immediately afterwards (within 5-6 years, hopefully). During residency, it would be awesome to end up a place with a matching 401k or similar plan. Afterwards, I'd continue investing but step it up dramatically once loans are paid off.

Anyway....my question is this: what are the typical retirement plans offered by EM groups? Are there 401k matches, etc.?

As mentioned above, some might offer Cash Balance plans. Those might have capped contribution levels (from as low as $15k all the way up to $100k or even more depending on the plan design). Cash Balance plans are usually coupled with a 401k plan. Most common plan would be 401k with profit sharing. Often these are limited to your salary deferral plus a matching contribution (which can be age-weighted). Good plans might allow you to max them out at $53k (in 2015), but these are primarily custom-designed for smaller practices (under 100 employees). There are also non-governmental 457b plans (also known as non-qualified deferred compensation plans), and these are actually not that good if you read the fine print.

You are right on target - pay out the high interest debt first, then max out your plan contribution. If your practice does not offer a plan, or if the plan is not that good, you should by all means demand change. It is not only possible, but it is happening all over the place. Having a plan is not enough. What you want is a plan that has low cost investment choices as well as personalized investment advice (usually paid for by the plan sponsor). This only happens when the plan is managed by a fiduciary, not a broker, so even if you have a great plan, if you are paying any more than 0.2% in asset-based fees for your investments (and the actual number is closer to 1% for a typical fund) you should by all means complain and request change. An extra 0.8% in fees will cost you hundreds of thousands over decades, and will not improve your investment results vs. what can be achieved using low cost index funds.

 

[two guys]

This is a great time for you to be asking these questions.

If you haven't already, you should look at White Coat Investors site - he posts on here frequently. I followed his suggestion and read a few books in residency and feel much more educated about this stuff. Hie book wasn't out then, I haven't read it yet but if his posts on his website are any indication, I'm sure it is excellent.

He used to have a reading list, it was a little easier to navigate than the bookstore (http://astore.amazon.com/whicoainv-20?_encoding=UTF8&node=70) but all the books are there. I started with Bogleheads Guide to investing,then coffeehouse investor, then gone fishing portfolio, then Bernstein's four pillars of investing, then for doctors eyes only.

I got the most out of Bogleheads (first few chapters really helpful, rest is like a textbook that I go back to), the gone fishing book and Bernsteins book. Add in WCI's book and you'd know a ton.

As far as what options you'll have in 7 years, it'll run the gamut. There's advantages on all sides. I'm happy as an IC with an individual 401k that I administer - it's easy and I'm in charge. Probably the most helpful thing you can do these years is try to get an accurate idea of your budget and track it monthly / yearly. It will make saving when your a resident and attending so much easier. It's not hard to put100-150k/year into loans/retirement those first few years if you can tell yourself that your living 25% better than in residency. Same for residency, it'll be easier to set aside money for interest when you know that even if you do you're still living on more than in med school.

Good luck. Debt=obligation. Obligation=unhappiness. No debt=freedoom.

 

[eefen]

As mentioned above, some might offer Cash Balance plans. Those might have capped contribution levels (from as low as $15k all the way up to $100k or even more depending on the plan design). Cash Balance plans are usually coupled with a 401k plan. Most common plan would be 401k with profit sharing. Often these are limited to your salary deferral plus a matching contribution (which can be age-weighted). Good plans might allow you to max them out at $53k (in 2015), but these are primarily custom-designed for smaller practices (under 100 employees). There are also non-governmental 457b plans (also known as non-qualified deferred compensation plans), and these are actually not that good if you read the fine print.

You are right on target - pay out the high interest debt first, then max out your plan contribution. If your practice does not offer a plan, or if the plan is not that good, you should by all means demand change. It is not only possible, but it is happening all over the place. Having a plan is not enough. What you want is a plan that has low cost investment choices as well as personalized investment advice (usually paid for by the plan sponsor). This only happens when the plan is managed by a fiduciary, not a broker, so even if you have a great plan, if you are paying any more than 0.2% in asset-based fees for your investments (and the actual number is closer to 1% for a typical fund) you should by all means complain and request change. An extra 0.8% in fees will cost you hundreds of thousands over decades, and will not improve your investment results vs. what can be achieved using low cost index funds.

Thanks, that was helpful. And good point about seeking to change things if necessary.

This is a great time for you to be asking these questions.

If you haven't already, you should look at White Coat Investors site - he posts on here frequently. I followed his suggestion and read a few books in residency and feel much more educated about this stuff. Hie book wasn't out then, I haven't read it yet but if his posts on his website are any indication, I'm sure it is excellent.

He used to have a reading list, it was a little easier to navigate than the bookstore (http://astore.amazon.com/whicoainv-20?_encoding=UTF8&node=70) but all the books are there. I started with Bogleheads Guide to investing,then coffeehouse investor, then gone fishing portfolio, then Bernstein's four pillars of investing, then for doctors eyes only.

I got the most out of Bogleheads (first few chapters really helpful, rest is like a textbook that I go back to), the gone fishing book and Bernsteins book. Add in WCI's book and you'd know a ton.

As far as what options you'll have in 7 years, it'll run the gamut. There's advantages on all sides. I'm happy as an IC with an individual 401k that I administer - it's easy and I'm in charge. Probably the most helpful thing you can do these years is try to get an accurate idea of your budget and track it monthly / yearly. It will make saving when your a resident and attending so much easier. It's not hard to put100-150k/year into loans/retirement those first few years if you can tell yourself that your living 25% better than in residency. Same for residency, it'll be easier to set aside money for interest when you know that even if you do you're still living on more than in med school.

Good luck. Debt=obligation. Obligation=unhappiness. No debt=freedoom.

Thanks! I have read his website/book, plus a few others, including the Bogleheads one. Spent some time on their forum, too, though I haven't been there for a while. Trying to take WC's advice and read at least one good finance book a year.

 

[The White Coat Investor]

They always say its never too early to start planning for retirement. However, you might be the exception to that. Not only are you not in your career, but you haven't even started your education for it, much less training for it! It's okay to be a planner, but just realize that it's okay to ignore this stuff for a little while longer. What you can't ignore (and which I cover in a single chapter in my book) is how much the cost of your education will impact your financial situation later. Minimize your school debt by going to the cheapest school you can get into, living like you have a net worth of negative hundreds of thousands during med school, and at least giving some consideration to financial considerations regarding specialty choice. Everything else can wait until you're married, have a kid, or finish med school.

 

[eefen]

They always say its never too early to start planning for retirement. However, you might be the exception to that. Not only are you not in your career, but you haven't even started your education for it, much less training for it! It's okay to be a planner, but just realize that it's okay to ignore this stuff for a little while longer. What you can't ignore (and which I cover in a single chapter in my book) is how much the cost of your education will impact your financial situation later. Minimize your school debt by going to the cheapest school you can get into, living like you have a net worth of negative hundreds of thousands during med school, and at least giving some consideration to financial considerations regarding specialty choice. Everything else can wait until you're married, have a kid, or finish med school.

Haha - Fair point! This post is actually from a while ago - I was surprised to see it pop up again. I'm a second year now, married (though I was when I posted this originally too), and have a young son, so I have been trying to stay one step ahead of the game to make sure that my wife and son will be taken care of. This was from a while ago, though - the summer before medical school started, I decided to learn more about finances/investing and all that that entails, which eventually led to the subject of retirement - thus this post. A bit premature, I suppose, but maybe better that way than the other?

 

[The White Coat Investor]

Definitely better early than late. Given your family situation, you probably need some life insurance and maybe disability insurance. You definitely need to get some disability insurance in place as an intern. It is possible to buy it as a medical student, but I'd be lying if I said most students get it. What does your wife do?

 

[LostinLift]

On a related topic - if I were looking to save as much as possible coming out of residency, what kind of packages do these CMGs and SDGs offer that are best for max retirement savings?

I believe I've heard some say they have a defined benefits package/pension (as above) in addition to their 401k? Are there a few different types of packages offered or many? I'm looking to save heavily from after-tax money as well. I realize the overall decision will depend on the individual offers, but I don't have any clue what kind of benefits some places offer, aside from 401k and insurance coverage.

 

[eefen]

Definitely better early than late. Given your family situation, you probably need some life insurance and maybe disability insurance. You definitely need to get some disability insurance in place as an intern. It is possible to buy it as a medical student, but I'd be lying if I said most students get it. What does your wife do?

We both have term LI policies. I actually do have an ok-for-now disability policy that my school put together for the students (and required participation in...) but when I get closer to residency I'll start shopping around a bit more. My wife worked for a while, but now is at home with our son.

 

[The White Coat Investor]

On a related topic - if I were looking to save as much as possible coming out of residency, what kind of packages do these CMGs and SDGs offer that are best for max retirement savings?

I believe I've heard some say they have a defined benefits package/pension (as above) in addition to their 401k? Are there a few different types of packages offered or many? I'm looking to save heavily from after-tax money as well. I realize the overall decision will depend on the individual offers, but I don't have any clue what kind of benefits some places offer, aside from 401k and insurance coverage.

I think I have one of the best combinations I've seen. The worst combination is an academic job that just offers a 403(b) or an employee job with just a 401(k) but no match or profit-sharing component since those are limited to just $17.5K (in 2014.)

My partnership offers a 401(k)/Profit-sharing plan- $52K and a defined benefit plan (mine allows a max of $30K, yours may be higher or lower depending on design). You can use the 401(k) your first six months, but can't use the DBP until really your third year (18 months into the job, and no point in funding it prior to 30 months in).

I also use a personal and spousal Backdoor Roth IRA, an HSA, and a Solo 401(k) for my side business at The White Coat Investor. Grand total for 2014= $52K + $30K + $5.5K + $5.5K + $6450 +$52K (probably won't make enough to max that out though) = $151,450. If your spouse also has a job with a retirement plan, you could get over $200K pretty easy. And of course, anybody can save for anything in a taxable account. At a certain point, you've got to say, "enough is enough" and go spend some money, especially if you're only making $200-300K.

Obviously there's a pretty big difference between a standard 401(k) + one backdoor Roth IRAs ($23K total) and $151,450. Truthfully though, most new grads are going to need their cash flow to pay down loans, pay off any consumer debt, take a much needed vacation, get into a home, beef up their emergency fund, and pay moving expenses. Luckily, many of these retirement accounts can be funded late in the tax year. For instance, the IRA contributions don't have to be made until April 15th of the following year. That gives you 9 months to get that money. 401(k) contributions just need to be in by the end of the year, giving you 6 months etc etc.

 

[ERDude]

WCI - I'm going to shamelessly ask for free advice.

I really want to work in a backdoor roth IRA into my yearly retirement savings plan, however I currently have about 130K in a SEP-IRA from my previous job (which as I understand it makes a backdoor undesirable because I will get taxed heavily on the conversion from traditional IRA to Roth). My current job has a solid 401K with employer match and profit sharing contributions. unfortunately this 401k doesn't allow rollovers from SEP-IRAs (although other IRA rollovers are allowed) so it seems my cash is stuck in the SEP-IRA.

Am I just SOL unless my 401k plan changes to allow a SEP-IRA rollover?

Thanks!

 

[Janders]

My current job has a solid 401K with employer match and profit sharing contributions. unfortunately this 401k doesn't allow rollovers from SEP-IRAs (although other IRA rollovers are allowed) so it seems my cash is stuck in the SEP-IRA.

Am I just SOL unless my 401k plan changes to allow a SEP-IRA rollover?

I am in a similar situation currently, with a smaller SEP-IRA (10k or so) and a large 403b which won't accept rollovers, and a small ROTH IRA (prior back doors and some residency savings).

Like you, my main/current plan will NOT accept SEP-IRA rollovers. However, some research shows that certain individual 401k (i.e. solo-401k) providers WILL accept SEP-IRA rollovers. I believe vanguard does NOT, while Fidelity DOES.

As such, you could open a solo 401k, then roll your SEP-IRA into that account (not a taxable event), and then you would have $0 of non-roth IRA, and could proceed with backdoors without negative tax implications.

 

[LostinLift]

I think I have one of the best combinations I've seen. The worst combination is an academic job that just offers a 403(b) or an employee job with just a 401(k) but no match or profit-sharing component since those are limited to just $17.5K (in 2014.)

My partnership offers a 401(k)/Profit-sharing plan- $52K and a defined benefit plan (mine allows a max of $30K, yours may be higher or lower depending on design). You can use the 401(k) your first six months, but can't use the DBP until really your third year (18 months into the job, and no point in funding it prior to 30 months in).

I also use a personal and spousal Backdoor Roth IRA, an HSA, and a Solo 401(k) for my side business at The White Coat Investor. Grand total for 2014= $52K + $30K + $5.5K + $5.5K + $6450 +$52K (probably won't make enough to max that out though) = $151,450. If your spouse also has a job with a retirement plan, you could get over $200K pretty easy. And of course, anybody can save for anything in a taxable account. At a certain point, you've got to say, "enough is enough" and go spend some money, especially if you're only making $200-300K.

Obviously there's a pretty big difference between a standard 401(k) + one backdoor Roth IRAs ($23K total) and $151,450. Truthfully though, most new grads are going to need their cash flow to pay down loans, pay off any consumer debt, take a much needed vacation, get into a home, beef up their emergency fund, and pay moving expenses. Luckily, many of these retirement accounts can be funded late in the tax year. For instance, the IRA contributions don't have to be made until April 15th of the following year. That gives you 9 months to get that money. 401(k) contributions just need to be in by the end of the year, giving you 6 months etc etc.

So for the 401k/profit sharing do they simply take 52k off the top of your gross pay? Or is that extra profit sharing from the partner bonus? Either way, tax-advantaged accounts, sign me up.

Thank you I remember reading that article on your website,( http://whitecoatinvestor.com/ for those who don't know, ) about all your tax protected investments. Very informative.

 

[ERDude]

So for the 401k/profit sharing do they simply take 52k off the top of your gross pay? Or is that extra profit sharing from the partner bonus? Either way, tax-advantaged accounts, sign me up.

Thank you I remember reading that article on your website,( http://whitecoatinvestor.com/ for those who don't know, ) about all your tax protected investments. Very informative.

Not really. The profit sharing portion is payed out by the employer shortly after the end of the year with the intention of getting to 52K total. There is a separate (taxable) profit sharing bonus that partners receive.

 

[The White Coat Investor]

WCI - I'm going to shamelessly ask for free advice.

I really want to work in a backdoor roth IRA into my yearly retirement savings plan, however I currently have about 130K in a SEP-IRA from my previous job (which as I understand it makes a backdoor undesirable because I will get taxed heavily on the conversion from traditional IRA to Roth). My current job has a solid 401K with employer match and profit sharing contributions. unfortunately this 401k doesn't allow rollovers from SEP-IRAs (although other IRA rollovers are allowed) so it seems my cash is stuck in the SEP-IRA.

Am I just SOL unless my 401k plan changes to allow a SEP-IRA rollover?

Thanks!

Yes, you're SOL for now. You could still do non-deductible IRA contributions in hopes that something changes in the future. You can lobby for a change to your 401(k). You can also do some moonlighting and open an individual 401(k) for it and then roll the SEP-IRA in there. You could also suck it up, convert the whole thing and pay the taxes on it- the sooner the better.

But you might just be out of luck with regards to the backdoor Roth. Keep in mind you might be able to do one for your spouse.

 

[The White Coat Investor]

I am in a similar situation currently, with a smaller SEP-IRA (10k or so) and a large 403b which won't accept rollovers, and a small ROTH IRA (prior back doors and some residency savings).

Like you, my main/current plan will NOT accept SEP-IRA rollovers. However, some research shows that certain individual 401k (i.e. solo-401k) providers WILL accept SEP-IRA rollovers. I believe vanguard does NOT, while Fidelity DOES.

As such, you could open a solo 401k, then roll your SEP-IRA into that account (not a taxable event), and then you would have $0 of non-roth IRA, and could proceed with backdoors without negative tax implications.

You're not in a similar situation. Your SEP-IRA is small. Just convert the whole thing. The tax bill will be less than 10% what his is, and should be quite affordable for an attending. I did that with a $25K SEP-IRA in 2010. I just have a bigger Roth because of it. That's not a bad thing.

 

[The White Coat Investor]

So for the 401k/profit sharing do they simply take 52k off the top of your gross pay? Or is that extra profit sharing from the partner bonus? Either way, tax-advantaged accounts, sign me up.

Thank you I remember reading that article on your website,( http://whitecoatinvestor.com/ for those who don't know, ) about all your tax protected investments. Very informative.

Depends on how things are structured. Our "partner bonus" is paid out every month (I have highly variable paychecks). So I just have 20% of each paycheck put in the 401(k) until it's maxed out 2/3s of the way through the year. Some of my parnters just have 1/12 of $52K taken out every month. Don't confuse a "profit-sharing plan" with the partnership bonus that is often called "profit-sharing." They're different things.

 

[tkim]

I have a 'pooled' 401k with Vanguard, however I'm the only trustee and participant. Switching jobs from a SDG to employee model that uses MassMutual. Wondering what my options are when I switch jobs. Keep the account? Not possible since my old group is going to Ameriprise simple 401k's and if I don't specify another plan, it will convert to Ameriprise, which I hear has high costs. Thoughts?

 

[EctopicFetus]

Question for WCI. My group DB plan allows more. Do you know what the factors are for this?

Also, if you happen to have a a prior account and wish to do a backdoor IRA you may have other money that needs to be converted as well. Not necessarily simple.

 

[The White Coat Investor]

I have a 'pooled' 401k with Vanguard, however I'm the only trustee and participant. Switching jobs from a SDG to employee model that uses MassMutual. Wondering what my options are when I switch jobs. Keep the account? Not possible since my old group is going to Ameriprise simple 401k's and if I don't specify another plan, it will convert to Ameriprise, which I hear has high costs. Thoughts?

This is one reason I kept my old TSP when I left the military. Now when I get to roll stuff over, I can roll it there.

You've got a couple of options besides Massmutual (ugh) and Ameriprice (ugh ugh). First, you can just roll it over to an IRA and leave it. You won't be able to do backdoor Roths, at least for a while until you do some moonlighting and open a Solo 401(k), get a new 401(k) at that job, or change jobs again. Second, you can just convert the whole thing to a roth. This is a great option if it's not that big, Then you can keep doing backdoor Roths.

Good luck. Sorry to hear about your dilemma.

 

[The White Coat Investor]

Question for WCI. My group DB plan allows more. Do you know what the factors are for this?

Also, if you happen to have a a prior account and wish to do a backdoor IRA you may have other money that needs to be converted as well. Not necessarily simple.

It's all actuarial. I looked at all the factors and the calculations once, and it's complex to say the least. It involves number of partners, their ages, the presence of a 401(k)/PSP, number of employees, estimated rates of return bla bla bla. Just trust your actuaries since you're paying them well to figure out the questions like this. If they say you can do your 401(k)/PSP to $52K, plus another $100K into the DBP, well, that's what you can do.

Let me see if I can find you a link with something more authoritative than that.....

Here's a fun calculator, but I don't know what's going into it:
http://www.cashbalancedesign.com/calculators/calculator_max.html#

This chart is fun too, but I don't know how you apply it to a 20 person partnership:
http://www.cashbalancedesign.com/calculators/chart_limits.html

Question 9 is interesting here:
http://www.mand.com/About-MMG/documents/CashBalanceforLawFirms.pdf

Hope some of that rambling helps. It's a good question, but it's a complicated thing.

Here's a post I did on it a while back:
http://whitecoatinvestor.com/cash-balance-plans-another-retirement-plan-for-professionals/

 

[tkim]

This is one reason I kept my old TSP when I left the military. Now when I get to roll stuff over, I can roll it there.

You've got a couple of options besides Massmutual (ugh) and Ameriprice (ugh ugh). First, you can just roll it over to an IRA and leave it. You won't be able to do backdoor Roths, at least for a while until you do some moonlighting and open a Solo 401(k), get a new 401(k) at that job, or change jobs again. Second, you can just convert the whole thing to a roth. This is a great option if it's not that big, Then you can keep doing backdoor Roths.

Good luck. Sorry to hear about your dilemma.

I'm leaning more towards rollover to traditional IRA allowing me to 1) keep it at Vanguard with minimal fuss, 2) to avoid being hit with taxes now versus conversion to a Roth.

It's a mixed bag switching jobs as it's a non-profit that I can apply for PSLF in ten years (if it's still around by then), they contribute some money to retirement and I can contribute to a 403b and 457b plans. I'm now an employee. *shrug*

 

[tkim]

This is one reason I kept my old TSP when I left the military. Now when I get to roll stuff over, I can roll it there.

You've got a couple of options besides Massmutual (ugh) and Ameriprice (ugh ugh). First, you can just roll it over to an IRA and leave it. You won't be able to do backdoor Roths, at least for a while until you do some moonlighting and open a Solo 401(k), get a new 401(k) at that job, or change jobs again. Second, you can just convert the whole thing to a roth. This is a great option if it's not that big, Then you can keep doing backdoor Roths.

Good luck. Sorry to hear about your dilemma.

How about a gradual conversion to a Roth IRA with step-wise multi-year contributions from the traditional IRA to a Roth IRA that keeps me in the same tax bracket?

 

[The White Coat Investor]

How about a gradual conversion to a Roth IRA with step-wise multi-year contributions from the traditional IRA to a Roth IRA that keeps me in the same tax bracket?

Not a great option because it forces the pro-rata calculation each year on the backdoor Roth IRA. How many years are you thinking? If just 2 or 3, okay, but if 10....not so good.

 

[deleted547339]

Can we just make an "Ask White Coat Investor forum?"

(I'm fairly serious)

 

[The White Coat Investor]

We already have one:

http://forums.studentdoctor.net/forums/finance-and-investment.176/

My website co-sponsors it!

 

[EctopicFetus]

We already have one:

http://forums.studentdoctor.net/forums/finance-and-investment.176/

My website co-sponsors it!

Serious question. I want to find an advisor. I am pretty savvy and my dad is a stock broker. I dont think he wants to be on the hook if I lose money. That being said I want to find an advisor. Is my best bet asking my partners at work? WCI give a brother some advice.

 

[The White Coat Investor]

You're probably better off asking your successful patients than your partners for a recommendation for an advisor. Lots of docs have terrible advisors. The first thing to do before selecting an advisor is becoming at least a little educated yourself.

http://whitecoatinvestor.com/investing/what-you-need-to-know-about-financial-advisers-2/

Also take a look at what good advisors look like here, even if you don't choose to hire one of these guys (although I would choose one of these guys): http://whitecoatinvestor.com/financial-advisors/

First, think about what you want. If you're just dumbly looking for a "money guy" you're likely to fall in with a commissioned salesman. If you want financial planning, get that. If you want investment management, get that. If you want tax advice, get that. Same with tax preparation, estate planning, asset protection etc. Figure out what your real needs are, and then hire someone for that task(s).

If it's investment management, hire an advisor with access to DFA funds. It will be much harder to go wrong since they prescreen their folks. If they've got DFA funds, and the price is fair, then you're probably good as far as investment management.

In my view, the big bang for your buck is in the physician-specific financial planning- dealing with the various retirement accounts, determining how much to spend on a house, dealing with student loans, how much to save for retirement/college etc.

Also, be sure to read their ADV 2. That's where they're required to tell you if they're criminals.

P.S. Don't hire a stock broker. The key words in financial advisors are "fee-only" and "fiduciary."

 

[EctopicFetus]

Thanks.. ill research it further. I def need one. I might ask some business school buddies.

 

[tkim]

Not a great option because it forces the pro-rata calculation each year on the backdoor Roth IRA. How many years are you thinking? If just 2 or 3, okay, but if 10....not so good.

My 401k was south of 100K. Obviously paying the tax on converting to a Roth IRA was not a great option, so I rolled it into a traditional IRA, and wondering what my next step would be. I don't anticipate moonlighting in the near future, so a personal 401K isn't an option.

 

[deleted109597]

Time for a necrobump, but I was wondering if WCI or anyone else had thoughts on betterment, wealthfront, or any of the other robotic investors. I'm much more likely to trust them than I am a person who makes money for giving advice. It's why it annoys me that the guy who sells me my disability insurance keeps trying to sell me whole life even though I've flat out told him I will never purchase it.

 

[DocRGR]

Time for a necrobump, but I was wondering if WCI or anyone else had thoughts on betterment, wealthfront, or any of the other robotic investors. I'm much more likely to trust them than I am a person who makes money for giving advice. It's why it annoys me that the guy who sells me my disability insurance keeps trying to sell me whole life even though I've flat out told him I will never purchase it.

Recent WCI article: http://whitecoatinvestor.com/what-you-need-to-know-about-roboadvisors/

 

[emergentmd]

Time for a necrobump, but I was wondering if WCI or anyone else had thoughts on betterment, wealthfront, or any of the other robotic investors. I'm much more likely to trust them than I am a person who makes money for giving advice. It's why it annoys me that the guy who sells me my disability insurance keeps trying to sell me whole life even though I've flat out told him I will never purchase it.

So u are telling me that whole life is not the best investment ever? I had a long talk and gave multiple references to a young ED doc that was hooked on one and told him to get out. He is still in it and when the market tanks and he has to shove more $$$$ to keep it afloat, I will just smirk when I see him.

 

[MSUSpartan642]

Recent WCI article: http://whitecoatinvestor.com/what-you-need-to-know-about-roboadvisors/

Currently in residency and starting to look at life insurance policies. Help me understand these diff types of life insurance and why whole life is something you would never get?

 

[TooMuchResearch]

Currently in residency and starting to look at life insurance policies. Help me understand these diff types of life insurance and why whole life is something you would never get?

Life insurance is insurance. Dont mix insurance with investment products.

 

[hundreddaysoff]

Currently in residency and starting to look at life insurance policies. Help me understand these diff types of life insurance and why whole life is something you would never get?

http://whitecoatinvestor.com/8-reasons-to-avoid-whole-life-insurance-and-4-reasons-to-consider-it/