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Started By
Message
re: Finances for Newly Wed
Posted on 4/29/19 at 8:42 pm to blackoutdore
Posted on 4/29/19 at 8:42 pm to blackoutdore
I was just coming to tell you to go to white coat investor. You have got to learn to live like a resident as they will say over there. I spend a good bit of time over there.
I'm gonna sound like a dick, but I'm going to be frank and honest. This is how I treat myself and our path to debt elimination and hopefully early retirement.
Are both of you on the same financial journey? I think you should both have a joint account.
You have golf clubs already? I doubt you need new ones. My buddy was a pro at a golf course and had the same clubs for 10'ish years. You could do without for a few years.
One account, a tight budget, and some slight room for miscellaneous expenses. You should be able to get this honed in within 4-5 months of spending.
$300k is a decent amount of debt. 10 years amortized won't be too bad. We had $248k. It fricking sucks but you get through it. Ours is a little more aggressive. We pay $2,510 a month, it balloons in Nov 2020, we'll pay $100k, refinance for two years, but I should pay it off by Jan of 2022.
Someone needs to ride that accord until the friggin wheels fall off. Trade in that MDX for another used, affordable car. You guys aren't ballers yet. Be frugal.
Ameritas has really good DI with great rider options that go up with salary. My wife had it from residency through fellowship and now as a sub-specialist.
How much CC debt are we talking here? Rate on that?
We'll come back to retirement stuff after we know the Cc debt amount.
Is your wife a partner or just staff? W-2, K-1, or 1099 employed? That could dictate a lot of routes you could take re: retirement vehicles.
$2,800/month rent. What in the hell are you renting? A 3,000 sq. ft. house or some brand new, swanky condo on the battery? You need to rent for a few years and seriously look for something more affordable. Maybe I'm out of touch, but we have a 2,200 sq. ft. house in Metairie and our mortgage is $1,467 a month. Physician lonas tend to have slightly higher interest rates I think. WCI has lots of posts on that.
The credit card you need is not having one. You need to buy things as you can afford them and the original CC debt is gone or greatly reduced.
You don't need a 529 plan. You don't have a kid. What if you can't have kids. You have bigger priorities right now, will have substantial income, and little debt eventually. They'll be fine and they'll live if they have a little skin in the game.
I'm gonna sound like a dick, but I'm going to be frank and honest. This is how I treat myself and our path to debt elimination and hopefully early retirement.
Are both of you on the same financial journey? I think you should both have a joint account.
You have golf clubs already? I doubt you need new ones. My buddy was a pro at a golf course and had the same clubs for 10'ish years. You could do without for a few years.
One account, a tight budget, and some slight room for miscellaneous expenses. You should be able to get this honed in within 4-5 months of spending.
$300k is a decent amount of debt. 10 years amortized won't be too bad. We had $248k. It fricking sucks but you get through it. Ours is a little more aggressive. We pay $2,510 a month, it balloons in Nov 2020, we'll pay $100k, refinance for two years, but I should pay it off by Jan of 2022.
Someone needs to ride that accord until the friggin wheels fall off. Trade in that MDX for another used, affordable car. You guys aren't ballers yet. Be frugal.
Ameritas has really good DI with great rider options that go up with salary. My wife had it from residency through fellowship and now as a sub-specialist.
How much CC debt are we talking here? Rate on that?
We'll come back to retirement stuff after we know the Cc debt amount.
Is your wife a partner or just staff? W-2, K-1, or 1099 employed? That could dictate a lot of routes you could take re: retirement vehicles.
$2,800/month rent. What in the hell are you renting? A 3,000 sq. ft. house or some brand new, swanky condo on the battery? You need to rent for a few years and seriously look for something more affordable. Maybe I'm out of touch, but we have a 2,200 sq. ft. house in Metairie and our mortgage is $1,467 a month. Physician lonas tend to have slightly higher interest rates I think. WCI has lots of posts on that.
The credit card you need is not having one. You need to buy things as you can afford them and the original CC debt is gone or greatly reduced.
You don't need a 529 plan. You don't have a kid. What if you can't have kids. You have bigger priorities right now, will have substantial income, and little debt eventually. They'll be fine and they'll live if they have a little skin in the game.
This post was edited on 4/29/19 at 8:54 pm
5
Posted on 4/29/19 at 8:59 pm to TheWiz
I mean they are bringing home $250K they can afford a $2800/mo rental 
Posted on 4/29/19 at 10:33 pm to TheWiz
quote:
TheWiz
Great post.
Echoing this sentiment...you need to provide details on:
1) How much credit card debt? This will likely change the entire course of a recommendation. Highly expect you will need to pay this off immediately and delay almost everything else (e.g., pay minimums on everything else, get a 100% 401k match, and the rest of the dollars go towards paying credit cards down).
2) $2,800 for rent? Are you crazy? Literally said
when I read that. You don't have kids yet - you can almost certainly find a very nice apartment for $1,500 or so a month and save the delta (or pay off more of the CC debt). $200-300K in student loans is honestly not a big deal when you are DINKs (dual income no kids) earning relatively high incomes, especially for your age. You could pay off $75K a year in student debt and be done with it in a few years. It won't be a 'fun' time but I generally find people with student debt like to complain about it (and borderline draw attention to it).
Posted on 4/29/19 at 10:40 pm to TheWiz
Everything Wiz posted is good advice. While you have a substantial enough income to survive the mountain of debt you have accumulated, if you don't sacrifice now for several years to mostly eliminate that debt, it will significantly restrict your freedom to make more important choices down the line.
With that debt load, you may find yourselves stuck on career paths that make you unhappy and strain your marriage. Your wife may want to go out on her own in a few years. That will require substantial capital for office space, equipment and initial overhead. Children have a way of altering plans as well. Not to mention sometimes things just don't work out with employment. Not aggressively attacking that debt while you are DINKs would be a huge missed opportunity that will significantly limit your options in the future.
You could pay that debt off with your income in 5 years if you made it a priority. Think of the opportunity and freedom you would have with little to no debt/payments and $350k in annual income before you turn 35.
It's a lot easier for me to say than it will be for you to do, but I guarantee you won't regret it if you do it.
With that debt load, you may find yourselves stuck on career paths that make you unhappy and strain your marriage. Your wife may want to go out on her own in a few years. That will require substantial capital for office space, equipment and initial overhead. Children have a way of altering plans as well. Not to mention sometimes things just don't work out with employment. Not aggressively attacking that debt while you are DINKs would be a huge missed opportunity that will significantly limit your options in the future.
You could pay that debt off with your income in 5 years if you made it a priority. Think of the opportunity and freedom you would have with little to no debt/payments and $350k in annual income before you turn 35.
It's a lot easier for me to say than it will be for you to do, but I guarantee you won't regret it if you do it.
This post was edited on 4/29/19 at 10:43 pm
Posted on 4/30/19 at 5:57 am to TheWiz
Now that I read the replies, I realize I glanced over the OP and missed a lot of weird details. Like a $2800 per month rent
Posted on 4/30/19 at 8:49 am to TheWiz
quote:
TheWiz
Lots of good info. Ditto on Whitecoatinvestor
Congrats OP for being in this position this early in life. Your rental payment is pretty high so I would look to downsize that bill soon.
I would focus on 2 primary items at this point, debt and income. $250/yr is right near the bottom of the wealth curve. Even without debt, you're maxing retirement vehicles and paying your bills without much left over. It's easy to say, but get your income over $300k and you'll start feeling the difference. I think someone mentioned, catch the 401k match, crush those student loans (refi- when possible), and start saving money you can use now. Start having your money work for you so you can buy a house/wife open a practice. Physician loans can be great if you're going to be in the house a short term, but they often come with slightly higher interest rates or teaser terms.
As for the student loans, see if you can pay off portions at a time. My wife had around $180k and we broke them up, refi the highest interest and focused paying smallest to biggest balance (rates were all similar). Your monthly payments necessary go down over time which will come in handy as your family grows. Once we get down to 2 loans (roughly 80k) we may just pay the minimums until it's paid out. This is the flexibility we wanted we when chose this path.
$300k in debt is a bunch so paying it off will feel that much sweeter. Good luck.
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