What would you do? this is fun :D :D :D

[Anestheezee]

Hi all,
My family and I stumbled into an amazing situation - Long story short we sold our house in order to downsize (it was waaay to big a place and our new house is perfect in all the ways we like) and are pocketing $600k of equity earned after all the closing costs in 3 short years on top of our $300k we put in for a down payment. The new house we bought with a 0% down physician loan for 900k @ 4.75% 10 year ARM. I'm 35, work full time as a partner in my anesthesia group which is MD only, 4 years out from residency. My wife is part time primary care doc. I have 100k left in student loans @ 4.25% on a 5-year fixed at this point and 529s for each of our 2 toddlers with about $25k in both. We aim to max them out at 60k each. We have a combined $450k in retirement investments, mostly roth IRA and 401k money.

What should we do with all this cash, totaling about $900k?

The first thing I'd like to prioritize is working less, but HOW... quit partnership and do locums? Add more vacation time but remain a partner? My group does not allow part-time positions for partners, just extra vacation time. I love the group - complex broad spectrum of anesthesia cases with moderate call and good pay, but the culture and hospital pressure is to work hard, not a lifestyle practice.

We don't have lavish tastes: I drive a Honda Fit, my wife a Subaru Forester (both paid off). We're pretty satisfied with them. No other debts. I like construction projects, we are also interested in travel with the kids. I have kind of always had an interest in doing an Ironman someday but never found the time...
We are considering me doing locums abroad but we are nervous about cutting ties with our current partnerships / jobs for just a 1 year stint.
I've thought about real estate investing with the cash. With more free time it's appealing to me to spend my extra free time learning about this stuff. I'm interested in investing and am excited for the opportunity to dabble in a variety of different ways to invest.

---

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[Dr. Rude]

Hi all,
My family and I stumbled into an amazing situation - Long story short we sold our house in order to downsize (it was waaay to big a place and our new house is perfect in all the ways we like) and are pocketing $600k of equity earned after all the closing costs in 3 short years on top of our $300k we put in for a down payment. The new house we bought with a 0% down physician loan for 900k @ 4.75% 10 year ARM. I'm 35, work full time as a partner in my anesthesia group which is MD only, 4 years out from residency. My wife is part time primary care doc. I have 100k left in student loans @ 4.25% on a 5-year fixed at this point and 529s for each of our 2 toddlers with about $25k in both. We aim to max them out at 60k each. We have a combined $450k in retirement investments, mostly roth IRA and 401k money.

What should we do with all this cash, totaling about $900k?

The first thing I'd like to prioritize is working less, but HOW... quit partnership and do locums? Add more vacation time but remain a partner? My group does not allow part-time positions for partners, just extra vacation time. I love the group - complex broad spectrum of anesthesia cases with moderate call and good pay, but the culture and hospital pressure is to work hard, not a lifestyle practice.

We don't have lavish tastes: I drive a Honda Fit, my wife a Subaru Forester (both paid off). We're pretty satisfied with them. No other debts. I like construction projects, we are also interested in travel with the kids. I have kind of always had an interest in doing an Ironman someday but never found the time...
We are considering me doing locums abroad but we are nervous about cutting ties with our current partnerships / jobs for just a 1 year stint.
I've thought about real estate investing with the cash. With more free time it's appealing to me to spend my extra free time learning about this stuff. I'm interested in investing and am excited for the opportunity to dabble in a variety of different ways to invest.

Don’t give up the partnership. Start reading. Bogleheads, white coat investor, etc.

As far as the cash goes, put it in Tbills while you learn. You can buy them at a brokerage at auction and not get screwed on the spread for zero commission.

Don’t buy whole life insurance. If you choose to get a financial advisor- only get one that charges by the hour, not on commission or assets under management fee.

Prior to a few years ago there was a good case to prepay the debt. Not so much today.

please read and educate yourself. Both you and your wife.

 

[linkin06]

Half in market now and half over the next year

 

[bigdan]

I may not fully understand your situation, but if you’re asking if/how you should slow working at age 35 when (it sounds like) you still have considerable debt just because you have $900k in cash, I would recommend against that. While I don’t work PP solo MD, that sounds like the Shangri-La of anesthesiology per SDNers, so I wouldn’t quit that.

I’d ask yourself what you want to do with that money when you subtract what you still owe from that $900k.

Personally, I’d invest some fraction of that coin in an index ETF, then drop a chunk against the principal of the student loans, drop a chunk against the principal of the new home, then maybe some real estate, and hold some in cash.

Good luck, and kudos for the financially sensible home change!

 

[kidthor]

Go all in on GME. I heard it’s going to the moon.

 

[jwk]

Debt at 4.25-4.75% is still debt. If you're wanting to slow down / retire early, getting rid of debt is a big consideration.

You didn't mention disability insurance so I will - hopefully you have it, occupation specific, in large amounts.

I assume you're mid-late 30s. You need to have some firm financial plans to support what sounds like it could be a very long retirement. (more power to you BTW)

It's good you have 529s for your toddlers. I can't imagine what college costs will be 15-20 years from now. Continue to fund those well.

 

[nimbus]

911 is always the right answer. GT3RS if you don’t embarrass easily.

 

[Anestheezee]

Debt at 4.25-4.75% is still debt. If you're wanting to slow down / retire early, getting rid of debt is a big consideration.

You didn't mention disability insurance so I will - hopefully you have it, occupation specific, in large amounts.

I assume you're mid-late 30s. You need to have some firm financial plans to support what sounds like it could be a very long retirement. (more power to you BTW)

It's good you have 529s for your toddlers. I can't imagine what college costs will be 15-20 years from now. Continue to fund those well.

We both got own-oc disability locked in during residency. Early retirement seems appealing but I think I still do love anesthesia and would want to keep that going. But man I could definitely do without the terrifying OB and Peds overnight misadventures.

 

[agammaglobulin]

Congrats on making some money on your home! I agree most with @jwk. Also, don't forget you will owe capital gains tax on your home for the gains over $500K. If I were you, in order of priority:
(1) Pay off student debt completely.
(2) Put $100K-200K into your house. You don't want to have 0 equity in your home. If housing market tanks, and you lose your job or have to move for some unexpected reason, you don't want to be underwater.
(3) Emergency Fund (3-6 months expenses)
(4) insurance - term life and disability for both you and your wife.
(4) Get to where you want to be for 529s for your kids.
(5) Stay at current job but cut back - more vacation, less call, etc. It sounds like you want more time for your family to travel and this seems like a way to accomplish this. I don't think $900K is enough money to start talking about leaving your job, unfortunately, but does put you ahead on the path to retirement.
(6) $50K to spoil yourself/wife - New car, remodel, fancy vacation, etc. Do something for yourselves.
(7) The remaining into retirement accounts/stock.

 

[deleted1116990]

I can't describe how envious I am of your work position. If you have the option of taking more vacation for less pay, do that.

Getting more than a week off at a time as a radiation oncologist is basically unheard of. It almost precludes international travel for those of us who have that as a hobby.

Bottom line, keep working but bring in the perspective that most physicians are restricted to 6 weeks of time off per year, paid or unpaid, and even that is a stretch. I am guessing you can easily double that and scheduling won't be a huge headache.

Congrats on the house situation. I went the other way and sold 3 years ago otherwise I would also be pocketing a decent 6 figure sum this year. The only thing I would consider if I were you would be to rent for a year. There is a very good chance there will be significant price declines over the next year. However, you can easily afford to buy in a still over-valued market now if renting is not something you are interested in.

 

[Anestheezee]

Thank you all for the great ideas! We have a meeting with our financial advisor after closing (closing on 10/14) and it will be great to go into the meeting with all these ideas. It's so hard to figure out exactly how to balance everything but I think the best message will be to do things cautiously and temper my excitement.

If we do end up taking extra weeks of vacation they are typically junk weeks of the year, usually when manpower needs are low like in January and February. Perfect timing for a massive ski trip 🎿🏂❄

 

[epidural man]

Get out of debt. All of it…make a beeline to debt free.

 

[deleted875186]

I wish I was in your spot.

My opinion, as someone not very financially literate, is obviously max out tax advantages retirement accounts … then pay off debt, work towards paying off mortgage, and open a brokerage account for the rest and put a big chunk in the market when it goes down even more in 2023.

 

[drmwvr]

Chik-Fil-A franchise...you're welcome.

 

[dabears505]

Buy house outright with cash? Then start putting as much as you can in market every month.

 

[Gasmd98]

By my calculation your net worth is approximately $400,000. That Is the real number that you should be working from. At your age that is very good but are not in the clear, not by any measure. Keep working your current job as it sounds like a rare good one these days. Buy the extra time off. My personal emergency fund is 12 months but choose your own number. Get enough term life insurance to cover the loss of either working spouse. I would pay off that student loan debt since there is no tax advantage to it. Begin a crash course in personal finance as there is no need to pay 1% off the top for someone to manage your money. Once you know what you are doing begin to dollar cost average into several very low cost index mutual funds. Don't get divorced. Lastly, compound interest is one of the most powerful forces in the universe so use it to your advantage.

 

[gasdoc77]

911 is always the right answer. GT3RS if you don’t embarrass easily.

...and see I always thought the gt4 was for those that don't embarass easily.

 

[gasdoc77]

"But man I could definitely do without the terrifying OB and Peds overnight misadventures."

Sounds like u need a VA gig LOL.

 

[BLADEMDA]

This thread is ridiculous by my standard. The OP has just begun his journey to FIRE. I don't even understand the thread. The OP can pay off some debt, emergency fund, and invest the rest. Give up his Partnership? Unless the OP hates his job he needs to suck it up for at least a decade more or better yet, until the kids graduate college. How about seeing a financial planner to develop a long term plan for FIRE? This means 5-6 million in investments/savings, no debt, fully funded 529 plans and only then can we discuss "locums."

The OP made some money with the sale of the house. Great. But, for most of us, including the OP, accumulating real wealth takes time. Unfortunately, that means the OP has at least a decade, or two, for that money to grow in the market combined with new savings/401K, etc. One doesn't walk away from partnership until the finances/financial plan is fully in place.

 

[BLADEMDA]

How Much Do I Need to Retire as a Physician?

We cover how to save up, grow your nest egg, and invest in your 401k/ 403b, Backdoor Roth IRA, HSA, and more to ensure physicians can thrive in retirement.

wealthkeel.com

Now, I know what you are thinking: “$4,000,000?! That seems like a lot. Do I really need that much?” Maybe, maybe not, but keep reading, and you will see that is not an outlandish number. As a physician, you likely maintain a pleasant lifestyle, and most prefer to keep that in their retirement years

 

[BLADEMDA]

This is from White Coat investor, 2019 so add about 10-15% to the numbers for 2022.

 

[BLADEMDA]

Retirement rules of thumb say you need 20 times your annual income to retire. Twenty times a typical emergency physician income of $275,000 is $5.5 million.

If the OP is a Partner in a practice I would assume the "number" to retire is 20 x his current income which is ? $10 million? 12 Million? My point is that the number is much more substantial than the profit from the sale of the home and FIRE typically means ZERO DEBT.

 

[BLADEMDA]

Key takeaways​

• Fidelity's guideline: Aim to save at least 1x your salary by 30, 3x by 40, 6x by 50, 8x by 60, and 10x by 67.
• Factors that will impact your personal savings goal include the age you plan to retire and the lifestyle you hope to have in retirement.
• If you're behind, don't fret. There are ways to catch up. The key is to take action.

 

[WholeLottaGame7]

I think everyone is more or less in agreement that a NW of ~400K at 35 is way too early to be thinking about FIRE, unless you really want to skinny FIRE for the next 40-50 years, which sounds unpleasant.

I think what OP needs to do is come up with a plan, whether it's a self-written investor policy statement, or one worked out with a financial planner. Obviously a lot of variables and predictions about insurance premiums, tax rates, etc, in 20 or 30 years, but you should have a rough estimate of expenses and then you can work backwards.

I've never done "X multiples of salary" because salaries vary and I think it's ridiculous to think expenses scale up linearly. I don't think the expenses between someone making 250K and 500K are a difference of 5M in retirement.

I think most people would say a nice comfortable retirement is probably between 100-150K/yr in today's dollars, which, at a 3-4% withdrawal rate is somewhere in the 3-4M dollar range (for liquid accounts, not total NW).

Agree with above: pay off student loans, put some money towards home equity, invest some, spend some, take more vacation. Enjoy life now and also plan for future. Everything in moderation.

 

[sevo00]

400k is nothing nowadays. I wouldn't start thinking about fire until your actual net worth (assets minus debt) is at least 5 million

 

[jqueb29]

Hi all,
My family and I stumbled into an amazing situation - Long story short we sold our house in order to downsize (it was waaay to big a place and our new house is perfect in all the ways we like) and are pocketing $600k of equity earned after all the closing costs in 3 short years on top of our $300k we put in for a down payment. The new house we bought with a 0% down physician loan for 900k @ 4.75% 10 year ARM. I'm 35, work full time as a partner in my anesthesia group which is MD only, 4 years out from residency. My wife is part time primary care doc. I have 100k left in student loans @ 4.25% on a 5-year fixed at this point and 529s for each of our 2 toddlers with about $25k in both. We aim to max them out at 60k each. We have a combined $450k in retirement investments, mostly roth IRA and 401k money.

What should we do with all this cash, totaling about $900k?

The first thing I'd like to prioritize is working less, but HOW... quit partnership and do locums? Add more vacation time but remain a partner? My group does not allow part-time positions for partners, just extra vacation time. I love the group - complex broad spectrum of anesthesia cases with moderate call and good pay, but the culture and hospital pressure is to work hard, not a lifestyle practice.

We don't have lavish tastes: I drive a Honda Fit, my wife a Subaru Forester (both paid off). We're pretty satisfied with them. No other debts. I like construction projects, we are also interested in travel with the kids. I have kind of always had an interest in doing an Ironman someday but never found the time...
We are considering me doing locums abroad but we are nervous about cutting ties with our current partnerships / jobs for just a 1 year stint.
I've thought about real estate investing with the cash. With more free time it's appealing to me to spend my extra free time learning about this stuff. I'm interested in investing and am excited for the opportunity to dabble in a variety of different ways to invest.

Pay off loans first and foremost. Not sure if you can get the whole chunk knocked out now or if you're locked in over a time period, but if you can pay it all of now that is most prudent. With most investments being a losing proposition this year, getting rid of a debt growing at 4.5% is the best guaranteed investment you can make.

Next I would max your I-bonds. Seems to be 4 people in your household, so you can buy $40k per year. This isn't always what I would do, but it's a good investment currently with the 9.62% return. There are some downsides to these (rate changes every 6 months, have to sacrifice your last 6 months of interest if you cash out before 5 years) but it is your 2nd best guaranteed bet right now.

Would look at putting a large amount of the remainder in an index ETF. Don't use a financial adviser who tries to hand pick stocks or do so yourself. You're not going to outpick a market, nor is an adviser over the long term, and the fees they charge will result in you putting in way more time and thought to try to outsmart the market and ending up with less money than if you just picked one smart fund and parked it for the long haul.

 

[Simba1711]

Don’t mean to hijack this thread but I’m curious as to what I should invest in as well. I’m a relatively new attending and fortunately don’t have any loans. I’m financially illiterate

 

[abolt18]

Don’t mean to hijack this thread but I’m curious as to what I should invest in as well. I’m a relatively new attending and fortunately don’t have any loans. I’m financially illiterate

Amazon.com: The Psychology of Money: Timeless lessons on wealth, greed, and happiness eBook : Morgan Housel: Kindle Store

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Three-fund portfolio - Bogleheads

www.bogleheads.org

The Bogleheads' Guide to Investing The Bogleheads' Guide to Investing: Lindauer, Mel, Larimore, Taylor, LeBoeuf, Michael + Free Shipping

The Bogleheads' Guide to the Three-Fund Portfolio: How a Simple Portfolio of Three Total Market Index Funds Outperforms Most Investors with Less Risk Amazon.com: The Bogleheads' Guide to the Three-Fund Portfolio: How a Simple Portfolio of Three Total Market Index Funds Outperforms Most Investors with Less Risk: 9781119487333: Larimore, Taylor, Bogle, John C.: Books

Read those then start investing.

 

[anaesthetic]

Don’t mean to hijack this thread but I’m curious as to what I should invest in as well. I’m a relatively new attending and fortunately don’t have any loans. I’m financially illiterate

According to SDN, all you need to know is that you’re better at timing the market than all of those finance losers on Wall Street and Congressional representatives with insider information. Also, AMD, and crypto, depending on your gambling habits.

 

[pgg]

This thread is ridiculous by my standard. The OP has just begun his journey to FIRE. I don't even understand the thread. The OP can pay off some debt, emergency fund, and invest the rest. Give up his Partnership? Unless the OP hates his job he needs to suck it up for at least a decade more or better yet, until the kids graduate college. How about seeing a financial planner to develop a long term plan for FIRE? This means 5-6 million in investments/savings, no debt, fully funded 529 plans and only then can we discuss "locums."

Agree that OP is a little jumpy on the quit trigger, but this post is also ridiculous.

$5-6M + 529s and then you'd consider cutting back to part time?

I think what's ridiculous is proposing that a debt-free person needs $200K in passive/investment sustained withdrawals to quit working. Work to live, man. At some point enough is enough. I agree semi-retirement and locums is a great hedge for physicians and I expect I'll do the same when that day comes. But if I had $5M in a pile on the floor, after doing my obligatory Scrooge McDuck swan dive and backstroke, I certainly wouldn't drive to the hospital to work for more money.

Retirement rules of thumb say you need 20 times your annual income to retire. Twenty times a typical emergency physician income of $275,000 is $5.5 million.

If the OP is a Partner in a practice I would assume the "number" to retire is 20 x his current income which is ? $10 million? 12 Million? My point is that the number is much more substantial than the profit from the sale of the home and FIRE typically means ZERO DEBT.

Now you're upping the finish line to $10-12M?

Retirement rules of thumb are for the median income workers. That's not us. To retire you just need a portfolio with a SWR that funds your expenses and the stuff you do for fun. I get that some of you guys are buying new $140K vehicles every other year, paying two ex-wives a generous alimony, and throwing cash into a hole in the water ...

Zero debt? I just signed up for a 30 year mortgage at 2.5%. I sure won't be debt free in less than 30 years.

 

[BLADEMDA]

Each person/family has their own goals for retirement. Some want to pass on money to their kids/grandkids while others want to spending it all just before they die. Many people like to spend money at higher levels than others meaning they need $20K per month of cash flow. Still others, need even more to live that nice Southern California lifestyle. Perhaps, a few of you are more like Scrooge and only need $5K per month? The important thing is to develop a plan for how much money you need per month and the sum it takes to generate that money. You should include inflation in that figure as well as unanticipated expenses. I suspect the actual sum it takes for most people to retire, except for PGG, is 10 x their current salary. That's the minimum in my opinion for those who are NOT getting a pension from their employers.

As for mortgage debt, I fully understand the math of paying 2.5-3.5% for a loan while generating 4-6% returns on that money. The math favors having a mortgage even if for many, the psychological benefits of being debt free offers its own reward.

 

[chessknt]

Lol scrooge on 5k a month. Talk about disconnected from reality... It's like when Bill Gates thought a banana cost $11.

 

[POW16]

20K per month, yep totally realistic. I guess gotta factor those 10 K/month to help one's children with living expenses during residency.

 

[BLADEMDA]

20K per month, yep totally realistic. I guess gotta factor those 10 K/month to help one's children with living expenses during residency.

Remember slim this is $20K per month down the road after inflation at 4% has ravaged your US dollar's purchasing power.

 

[BLADEMDA]

Lol scrooge on 5k a month. Talk about disconnected from reality... It's like when Bill Gates thought a banana cost $11.

By the time you retire and buy that banana it may indeed cost $10.00. Prepare for the worst case scenario and hope for the best.

How fast does inflation cut buying power? Here's a simple guide

Rising prices for goods and services mean your money buys less. The "rule of 72" can help gauge how quickly its value decreases.

www.cnbc.com

 

[pgg]

Remember slim this is $20K per month down the road after inflation at 4% has ravaged your US dollar's purchasing power.

No, the point of a sustained withdrawal rate (SWR) is that inflation is accounted for, and the withdrawals/spending increase over time to maintain constant spending power.

$5M now at a SWR of 3% is $150K/year now. After 20 years of 4% inflation it wouldn't be $150K/year, it's $328K/year.

That's what SWR means.

 

[BLADEMDA]

My point about SWR was that those wanting to retire young, less than age 50 for example, must take into account a lot more variables to make sure they don't run out of money. The SWR is lower the younger you retire. Your point about inflation is correct and proves the point you can run out of money.
That $5 million becomes even more significant for those seeking FIRE at let's say age 45.

 

[BLADEMDA]

The premise of the Trinity Study and much of my Safe Withdrawal Rate Series is that you adjust your withdrawal amounts by the CPI index. It ensures that you can keep your standard of living without slowly eroding your purchasing power over time. As I have previously pointed out, foregoing inflation adjustments for maybe one or two years is not a big deal, but over longer horizons, 30 years for traditional retirees and potentially 50 or even 60 years for early retirees, the purchasing power erosion would be disastrous!

But some retirees, certainly early retirees, might want to consider whether CPI adjustments are truly enough. Let’s look at the chart below for the 1991 to 2021 path of per capita real consumption. It increased by 70%, which means that if you had merely increased your consumption with CPI+0% only, the people around you would now be consuming 70+% more than you. Or, equivalently, you would have fallen 42% behind your peers, i.e., your neighbors, friends, and relatives. And foregoing even the CPI adjustments, you’d be 71% behind the average American, now that’s a non-starter! I can certainly see that a traditional retiree, at 65-years old, could feel comfortable slowly falling behind the average U.S. per-capita consumption path, at least in the absence of health problems. But as an active early retiree, I’d like to still participate in the per capita real consumption growth for a few decades and update my gadgets and buy improved creature comforts. In other words, I don’t want the same consumption basket from the 1990s today. Remember: there were no smartphones back then! And, likewise, in 2051 I probably don’t want the 2021 CPI consumption basket either!

 

[BLADEMDA]

 

[BLADEMDA]

The earlier the retirement the lower the safe SWR to account for inflation and CPI. Then, if you adjust for the real CPI, purchasing power, the SWR is likely even lower. All this brings me to my point that the chance for failure, or running out of money, increases the earlier you retire. FIRE has its price.

The SWR is overwhelmingly determined by the first 10-15 years of the retirement horizon.

 

[BLADEMDA]

Plus, with more people retiring in their 50s instead of their 60s and 70s (and with people tending to live longer), retirements now could last longer than 30 years. They could last 40 or even 50 years. That's why some in the FIRE community who are retiring in their early 50s feel more comfortable with a 3% or a 3.5% withdrawal rate.

The 4% Rule and Safe Withdrawal Rates | White Coat Investor

The Trinity Study was key in determining that you can't spend 10% of your portfolio each year and expect it to last. How much can you spend?

www.whitecoatinvestor.com

 

[doctalaughs]

Growing up I had 2 relatives that were retired doctors.

They both had nice houses, traveled, ate out and had nice, secure lives.

One of them though helped his kids with house down payments, fully put them though college, took the whole extended family (including grandkids) on a reunion/beach vacation maybe once every two years, and himself went to Europe/Asia/New Zealand/Hawaii regularly.

The other’s kids took out high debt for school, he travelled more modestly (less frequently, mostly domestic in modest accommodations), was not generous with family reunion/vacations and couldn’t help with things like house down payments, even if they wanted to (and likely won’t give anything as an inheritance).

Both are fine. But that’s the difference in a 2-3M retirement fund and a 10M retirement fund.

 

[agammaglobulin]

One of the huge perks of Anesthesia vs other professions and specialties is the ability to cutback to part time and make decent money. There are few other jobs you can work 2-3 days a week or take 20 weeks vacation and still get paid $200k. To me, going part time at 50-55 and working until 60-65 sounds more reasonable/better than fully retiring at 55. And, to @BLADEMDA’s point, is probably better financially as you could scale up or down the amount you work to meet unexpected ups or downs in the market. It’s likely harder to go back to practicing after being retired for 5 years if your SWR isn’t working out vs going from part time to full time at your existing job.

 

[BLADEMDA]

One of the huge perks of Anesthesia vs other professions and specialties is the ability to cutback to part time and make decent money. There are few other jobs you can work 2-3 days a week or take 20 weeks vacation and still get paid $200k. To me, going part time at 50-55 and working until 60-65 sounds more reasonable/better than fully retiring at 55. And, to @BLADEMDA’s point, is probably better financially as you could scale up or down the amount you work to meet unexpected ups or downs in the market. It’s likely harder to go back to practicing after being retired for 5 years if your SWR isn’t working out vs going from part time to full time at your existing job.

I think you get it. If the OP wants to cut back, or semi retire, then he/she should save up that $5 million first. Once you get that nest egg tucked away then go ahead and reduce your work load to 20-30 hours per week with as much time off as you need. This gives you a solid income of let's say $250K with a SWR of 1%, if even that much, while you cruise from age 50 until 65. Once you hit full retirement age that nest egg will have doubled and you can reduce work to 0 or 1 day per week.

I know it's hard to save up that first million. In fact, for me that first million took twice as long as the second and the third took 1/2 as long as the second. It's a snowball effect which begins to really pay off down the road. I fully believe stocks will come back over the next 5 years so NOW is the time to suck it up and save money so you can double or even triple your investments over the next 5 years.

 

[BLADEMDA]

Your savings rate is very important to FIRE. By Investing your extra dollars into stocks and sticking with it, you can grow your wealth.

 

[BLADEMDA]

Here is a calculator: Investment Calculator

A 32 year new grad starts working at his/her job. The plan is to save a total of $100,000 per year (pre and post tax investments). The 32 year old wants to semi-retire at age 52 or 53. How much will that new grad be expected to have in total investments by age 53?

$4 million.

Age 53 is FIRE by my definition as your are able to reduce your work by 1/2 well ahead of most of your peers.

 

[Simba1711]

Blade I appreciate your advice and information. Is there books you recommend as well ?

 

[BLADEMDA]

What's your "walk away" number?

Inverse bond tent is the way to go... A few million in 401k-type RMD accounts invested in bonds/REITs. Draw down about 4-5% per year in your 50s (Rule of 55) to get the balance down to an amount for efficient RMDs when the time comes. Many more millions in the taxable brokerage in growth funds...

forums.studentdoctor.net

 

[BLADEMDA]

Efficient Frontier

I have read 5 of his books.

 

[BLADEMDA]

Retired from Medicine at 43: Why, How, and What Now?

I think it depends on the doc. I know what you mean, but I really like to think it's more personality than anything else. A hard worker, who stays up to date and avoids stagnation into his/her 60's was probably the same way (or a bit less) in his/her 30/40's. The slackers, the same. I...

forums.studentdoctor.net

Richard Ferri

Books - Rick Ferri, CFA

rickferri.com

White Coat investor- Great Site

Best Financial Books for Doctors | White Coat Investor

What are the most unbiased, accurate, high-yield, current, and entertaining financial books for doctors and other high income professionals? Here you go!

www.whitecoatinvestor.com

The Investor's Manifesto​

Written by Dr. William Bernstein (a neurologist), this is a must-read for any physician investor. He speaks your language, and you can trust him. Bernstein's Four Pillars of Investing was a huge influence on my investing. I consider this the updated and simplified version.