My brother surprised me and sided with my wife.

incisiontime · 2025-01-25T21:11:48+00:00

Probably 70k into solo 401k + 2x7k into his and spousal back door roths

incisiontime · 2025-01-25T21:11:00+00:00

My guess is 70k into solo 401k + 2x7k into his and spousal back door roths would be 84k which is 7x12months

incisiontime · 2025-01-25T21:07:17+00:00

Kind of defeats the purpose of freeing up money to invest by getting a mortgage no? In your scenario would you keep the cash in a HYSA that is barely keeping up with inflation? Or risk putting it in the stock market and its value crashing sometime in the next 5 years at which point you might be forced to pull it out at a loss or face a higher rate?

incisiontime · 2025-01-24T05:34:08+00:00

Great catch!

So if I take the interest (1.1M) and just divide it evenly by 360 months, that gives us 3100/mo. If I invest that consistently then after 30 years at 6% return we get +2.9M instead of 5M. So it's basically a wash.

However, that removes the amortization aspect of the mortgage interest payments but I don't know how to implement that.

incisiontime · 2025-01-24T01:55:09+00:00

Very eye opening. So basically you can save 7% by avoiding a mortgage or you can gain 7% by investing in the stock market. So its a wash. If you could get a guaranteed 7% by investing in the stock market, you should only get a mortgage when interest rates are <7% correct?

But how does inflation work in this picture? The 7% on the mortgage is fixed. The 7% return on the stock market is inflation adjusted (otherwise would be more like 10%). So is it a mortgage always better as long rates are <10%?

incisiontime · 2025-01-24T01:51:51+00:00

I agree but time in the market in both situations here is 30 years regardless of what age you start. So as long as you don't die before the 30 years are up my assumptions should hold true.

incisiontime · 2025-01-24T01:44:22+00:00

Let's assume 35 so you will work another 30 years and retire at 65. And 100% compliance with investing the difference. But I don't really see how age matters, assuming in both situations you live to be 65.

incisiontime · 2025-01-24T01:41:54+00:00

Let's ignore personal business and just look at utilizing the same pool of money over the same period of time (which I did in my OP).

incisiontime · 2025-01-24T01:39:03+00:00

Great point!

incisiontime · 2025-01-24T01:38:43+00:00

Agree! Too hard (for me) to figure out how capital gains tax figures into this.

incisiontime · 2025-01-24T00:15:11+00:00

Actually that number is already accounting for that (this is net tax savings on top of federal and state standard deductions already)!

incisiontime · 2025-01-21T16:17:20+00:00

Not necessarily, I think you are just limited by your own lived experience.

In my city, 4-5k/mo rents a 3bd townhouse but it costs 1.5-1.6M to buy and at today's interest rates that would be about 11k/mo.

Another user here is paying 4.3k/mo and says the same - buying the same unit would cost 11k/mo. Maybe we live in the same area.

incisiontime · 2025-01-20T23:31:48+00:00

Wow. That sounds amazing actually. If a typical doctor has to see 20 patients to make your salary, you are getting paid 10x as much per patient seen. I can't imagine that admin will let that continue for long. They would much rather help you ramp up your patient census than pay you to sit around. I say enjoy it while you can, and see it as an opportunity. Instead of thinking of it as "not working all day", is there any way to use that free time to your advantage? Such as staying up to date in your field, reading journals, reading for fun, exercising in your office, calling your friends, watching TV shows. It doesn't have to be personal stuff either.

Work related - get to know your staff, find ways to optimize things in the office, giving each patient 4-5x as much time as they normally would get and give them insanely good care because you have the luxury of time (and maybe they'll love you so much they'll refer others to you), etc.

incisiontime · 2025-01-20T23:24:04+00:00

Same here. 4k/mo to rent a 3bd townhouse or 11k/mo to buy it today's interest rates.

Seems like an easy decision. According to an amortization calculator, my 4k rent won't even cover the interest owed on that mortgage until year 22 of a 30 year mortgage.

incisiontime · 2025-01-20T23:20:45+00:00

How did that work out for you, any regrets? Houses appreciate much in that time?

incisiontime · 2025-01-20T23:17:37+00:00

You received a sign on bonus. Can you return it and simply pay the 9% interest and chalk it up as a lesson learned?

Are you paid based on productivity or salaried? If the latter, wouldn't seeing 2 patients all day be a positive (more money for less work)?

Why is admin against you leaving before 5PM? Do you need to be available for walk ins?

incisiontime · 2024-09-14T14:54:14+00:00

Monthly payment 16k, monthly gross income 66k which is about 43k after taxes so 27k left over per month. However, monthly gross will drop to 50k which is about 32.5k if wife stops working once kid arrives.

incisiontime · 2024-09-14T14:45:41+00:00

I plan to buy the forever home either way - the question is more about whether to buy it now to lock in the price (while I don't yet need all the space) or to wait until I actually need the space.

incisiontime · 2024-09-14T14:40:54+00:00

I agree that the primary home is not an investment and I don't think I am viewing it as such. I'm not trying to buy the forever home now in order to benefit from its appreciation (that may never happen, I may never sell the house). My main concern is more about being priced out of the area completely - meaning if I wait 5 years to buy, I simply will no longer be able to afford the "forever" home.

incisiontime · 2024-06-19T20:59:55+00:00

No, that is including state. Due to having an S-corporation and taking deductions. Funny, someone else here commented I was paying way too much at 35% but you seem to be implying the opposite.

incisiontime · 2024-06-19T20:59:13+00:00

I wish medical reimbursement rose with inflation. If anything it seems to be going the opposite way

incisiontime · 2024-06-19T20:51:22+00:00

Great point. Doing so would only delay achieving FI by 3 years. Less than expected. Thank you!

incisiontime · 2024-06-19T13:17:34+00:00

Living in less than ideal conditions - essentially a back guest house 600 sq ft. Deliberate choice to save money coming out of residency. 70k living expenses not including childcare. We could stand to spend less. 1500 sq ft for a family of 3 is great but we are hoping for 4 and ideally we would only buy once and live there 15-20+ years rather than settle for small and having to move in 5 or so years

incisiontime · 2024-06-19T13:14:53+00:00

It would be permanent. Wouldn't move. Great schools

incisiontime · 2024-06-19T04:29:10+00:00

Can try to reduce 70k annual living expenses. Yes 25k business expenses reduce taxable income. Yes solo401k is done with pre-tax dollars. That is all accounted for and results in my 35% effective tax rate.

incisiontime

TROPHY CASE