My Bi-Monthly Physician Paycheck And What I Did With It
Not bad for a 2 week paycheck. I was able to set aside $3,625 into my savings and my Vanguard brokerage account. Another $3,612 went into my tax-deferred accounts, the 401k (Profit Sharing Plan), 401a (Money Purchase), Cash Balance Plan and HSA.
My expenses are low, thankfully I don’t need to leave more than $1k in my checking account to cover second half of April. I have been very happy budgeting with YNAB, I highly recommend it.
The HSA is small but there is matching up to $1,000. Most advisers recommend this as long as you’re healthy. Studies show that up to $250k of your retirement savings may be spent on your health… so either get genetically lucky, get healthy or save up.
I’m conservative with my investments, mostly the traditional broad market passive index funds. Am I being too conservative? Perhaps. I still anticipate that my tax-deferred accounts will have a 6-7% growth rate while my taxable investments will be in the 4% range.
I’m vested in all these accounts so I don’t have much to worry about even if I decide to leave my medical group before my early retirement date of 5/2019. The reason I have that date is because that’s when I can vest in the traditional pension plan (not listed above). The traditional plan requires 10 years to vest in, and yes I have a cash balance plan as well which is a less traditional pension plan (listed above).
Going down to 50% part-time will make the above paycheck not a bi-monthly check but a monthly check… barf! I haven’t told my medical group yet, we’ll see how it all plays out. I’m enjoying 3 weeks off at the moment, no need to think about it.