MedSaver's Journal

Where are you and where are you going?
MedSaver
Posts: 39
Joined: Tue Nov 24, 2015 1:04 am

Re: MedSaver's Journal

Post by MedSaver » Thu May 05, 2016 9:46 pm

April Update:

Liabilities:

Credit cards = $0

Fiancee loans
Car loan at fixed 1.9% = $2421
Total student loans (5 year fixed 3.5%) = $60,210

MedSaver loans
Student loans blended (5 year ~3.5% fixed) = $197,158

Assets:
IRA/Brokerage/403b/457/cash: $297,435
Travel fund: $4000

Net:

+$40,067

MedSaver
Posts: 39
Joined: Tue Nov 24, 2015 1:04 am

Re: MedSaver's Journal

Post by MedSaver » Thu Jun 02, 2016 12:01 am

May Update:

Liabilities:

Credit cards = $0

Fiancee loans
Car loan at fixed 1.9% = $2075
Total student loans (5 year fixed 3.5%) = $60,186

MedSaver loans
Student loans blended (5 year ~3.5% fixed) = $193,629

Assets:
IRA/Brokerage/403b/457/cash: $307,585
Travel fund: $1000

Net:

+$54,400

MedSaver
Posts: 39
Joined: Tue Nov 24, 2015 1:04 am

Re: MedSaver's Journal

Post by MedSaver » Thu Jun 30, 2016 11:40 pm

June Update:

Liabilities:

Credit cards = $0

Fiancee loans
Car loan at fixed 1.9% = $1,729
Total student loans (5 year fixed 3.5%) = $60,781

MedSaver loans
Student loans blended (5 year ~3.5% fixed) = $189,933

Assets:
IRA/Brokerage/403b/457/cash: $352,173
Travel fund: $1000

Net:+$101,459

MedSaver
Posts: 39
Joined: Tue Nov 24, 2015 1:04 am

Re: MedSaver's Journal

Post by MedSaver » Wed Aug 03, 2016 12:01 am

July Update

Liabilities:

Credit cards = $0

Fiancee loans
Car loan at fixed 1.9% = $1,382
Total student loans (5 year fixed 3.5%) = $57,929

MedSaver loans
Student loans blended (5 year ~3.5% fixed) = $186,881

Assets:
IRA/Brokerage/403b/457/cash: $366,577
Travel fund: $1000

Net:+$120,385

MedSaver
Posts: 39
Joined: Tue Nov 24, 2015 1:04 am

Re: MedSaver's Journal

Post by MedSaver » Fri Sep 02, 2016 12:15 am

August Update

Liabilities:

Credit cards = $0

Fiancee loans
Car loan at fixed 1.9% = $1,034
Total student loans (5 year fixed 3.5%) = $56,728

MedSaver loans
Student loans blended (5 year ~3.5% fixed) = $183,418

Assets:
IRA/Brokerage/403b/457/cash: $374,733
Travel fund: $2000

Net:+$133,564

MedSaver
Posts: 39
Joined: Tue Nov 24, 2015 1:04 am

Re: MedSaver's Journal

Post by MedSaver » Sun Oct 02, 2016 11:47 pm

September Update

Liabilities:

Credit cards = $0

Fiancee loans
Car loan at fixed 1.9% = $698
Total student loans (5 year fixed 3.5%) = $55,662

MedSaver loans
Student loans blended (5 year ~3.5% fixed) = $180,028

Assets:
IRA/Brokerage/403b/457/cash: $388,469
Travel fund: $2000

Net:+$152,081

MedSaver
Posts: 39
Joined: Tue Nov 24, 2015 1:04 am

Re: MedSaver's Journal

Post by MedSaver » Mon Oct 31, 2016 9:25 pm

October Update

Liabilities:

Credit cards = $0

Fiancee loans
Car loan at fixed 1.9% = $0 - Yey! Paid off the car.
Total student loans (5 year fixed 3.5%) = $54,457

MedSaver loans
Student loans blended (5 year ~3.5% fixed) = $176,626

Assets:
IRA/Brokerage/403b/457/cash: $396,350
Travel fund: $4000

Net:+$165,267

MedSaver
Posts: 39
Joined: Tue Nov 24, 2015 1:04 am

Re: MedSaver's Journal

Post by MedSaver » Wed Nov 30, 2016 11:38 pm

November Update

Liabilities:

Credit cards = $0

Fiancee loans
Total student loans (5 year fixed 3.5%) = $53,380

MedSaver loans
Student loans blended (5 year ~3.5% fixed) = $173,232

Assets:
IRA/Brokerage/403b/457/cash: $409,906
Travel fund: $1000

Net:+$183,294
Last edited by MedSaver on Sat Dec 03, 2016 1:44 am, edited 1 time in total.

Barlotti
Posts: 156
Joined: Sat Dec 10, 2011 7:58 am

Re: MedSaver's Journal

Post by Barlotti » Thu Dec 01, 2016 10:22 am

Wowsa, you're making good progress! Keep it up!

MedSaver
Posts: 39
Joined: Tue Nov 24, 2015 1:04 am

Re: MedSaver's Journal

Post by MedSaver » Wed Jan 04, 2017 12:10 am

Annual Update

Well, it has almost been one full year since we started tracking all of these numbers in earnest. How have we done?

MedSaver gross income 2016: $302,997 (2015: $176,000), up 72%.
Net income 2016: $188,695 (2015: $101,456), up 86%.
Monthly net: $15,725

MedSaver Fiancee gross income 2016: $157,529 (2015: $151,148), up 4%.
Net income 2016: $106,729 (2015: $96,326), up 11%.
Monthly net: $8,294

Spending breakdown (monthly):
Food: $550
Rent: $1750
MedSaver disability insurance: $500
Fiancee disability insurance: $80
MedSaver student loan: $4030
Fiancee student loan: $1300
Utilities: $270
Gas: $225
Internet/cable: $145
Cleaning service: $80
Cell phone: $65
Travel: $1700

Total 2016: $10,695 (2015: $10,560), up 1.3%.

There is also definitely some “leakage” each month for unaccounted expenses like gifts, emergencies, medical expenses, shopping, credit card fees, etc. I also paid off one of my smaller private student loans that had a variable rate, which was rising. So the numbers above are our bare minimum spend.

Liabilities:

Credit cards = $0

Fiancee loans
Total student loans (5 year fixed 3.5%) = $52,176 (Jan 2016 $70,000)

MedSaver loans
Student loans blended (5 year ~3.5% fixed) = $168,200 (Jan 2016 $209,000)

Assets:
IRA/Brokerage/403b/457/cash: $427,817 (Jan 2016: $256,796)
Travel fund: $1500

Net: $207,441 (Jan 2015: -$28,204), which is +$19,637/month

At this rate of growth and savings, we will reach the lower margin of our financial independence goal in about 9 years. Obviously the stock market growth rate this past year is probably unsustainable, but once our loans are paid off we can offset lower returns (or even losses) with higher savings. We have started saving slightly more cash for a house downpayment, but are not currently in any hurry to buy a house (timeline 1-2 years).

George the original one
Posts: 4328
Joined: Wed Jul 28, 2010 3:28 am
Location: Wettest corner of Orygun

Re: MedSaver's Journal

Post by George the original one » Wed Jan 04, 2017 12:20 pm

MedSaver wrote:There is also definitely some “leakage” each month for unaccounted expenses like gifts, emergencies, medical expenses, shopping, credit card fees, etc. I also paid off one of my smaller private student loans that had a variable rate, which was rising. So the numbers above are our bare minimum spend.
Capture the leakage and put it in your budget. It's not a case of you have to spend it, rather one of anticipating what could happen.

James_0011
Posts: 308
Joined: Wed Nov 09, 2016 12:00 am

Re: MedSaver's Journal

Post by James_0011 » Wed Jan 04, 2017 4:35 pm

How do you even spend this much money? crazy

MedSaver
Posts: 39
Joined: Tue Nov 24, 2015 1:04 am

Re: MedSaver's Journal

Post by MedSaver » Tue Jan 31, 2017 9:49 pm

January Update

Liabilities:

Credit cards = $0

Fiancee loans
Total student loans (5 year fixed 3.5%) = $51,032

MedSaver loans
Student loans blended (5 year ~3.5% fixed) = $164,789

Assets:
IRA/Brokerage/403b/457/cash: $438,413
Travel fund: $3000

Net:+$222,592

MedSaver
Posts: 39
Joined: Tue Nov 24, 2015 1:04 am

Re: MedSaver's Journal

Post by MedSaver » Wed Mar 01, 2017 8:20 pm

February 2017 Update

Liabilities:

Credit cards = $0

Fiancee loans
Total student loans (5 year fixed 3.5%) = $49,933

MedSaver loans
Student loans blended (5 year ~3.5% fixed) = $161,321

Assets:
IRA/Brokerage/403b/457/cash: $462,343
Travel fund: $3000

Net:+$251,089

DutchGirl
Posts: 1038
Joined: Tue Sep 06, 2011 1:49 pm
Location: The Netherlands

Re: MedSaver's Journal

Post by DutchGirl » Sat Mar 04, 2017 3:16 am

Given that your net worth was -$20k in January 2016, I'd say the two of you are doing great. Difference of $240k or so in one year, on $295k of net income, meaning you saved 82% of your net income. (And yes, I am counting debt payments as savings).

If income would stay the same, that would mean you'd reach your financial independence ($3M in net worth) in roughly eight years or so.

By the way, you're apparently living on roughly $50k/year now. Would it be so bad to continue to live on $50k/year in retirement? If so, you'd seriously reduce the amount of time you'd need to get to that status. You'd only need $1.6 million to take out $50k/year at a withdrawal rate of 3%, and continuing like you're doing now, that would only take 4.5 years from now.

...perhaps that's something to consider 4.5 years from now :-)

MedSaver
Posts: 39
Joined: Tue Nov 24, 2015 1:04 am

Re: MedSaver's Journal

Post by MedSaver » Wed Mar 08, 2017 12:19 am

Hi DutchGirl, thank you for your positive post. Unfortunately, our savings rate isn't quite 82% because some of the net worth increase can be attributed to stock market gains and dividends. But I agree that $3M is very comfortable. I could probably go to part time at $2M, but my fiancee plans to continue at or near full time, so we will continue to accrue income regardless (or pay down a future mortgage).

Our incomes are thankfully stable with the potential for my income to increase 40% or so in the next year if I continue on in my current position. Once we pay off our loans we could definitely live well (maintain our current standard of living) between $60k-70k/year.

Scott 2
Posts: 912
Joined: Sun Feb 12, 2012 10:34 pm

Re: MedSaver's Journal

Post by Scott 2 » Wed Mar 08, 2017 5:58 pm

Read through your journal, great progress, awesome approach to handling the high income.

I think it can be hard to appreciate the sacrifice that goes into reaching that point. I bet your 20's looked very different than most on the board. Even now, I doubt you're clocking a 9-5. Enjoy the fruits of your labor.

MedSaver
Posts: 39
Joined: Tue Nov 24, 2015 1:04 am

Re: MedSaver's Journal

Post by MedSaver » Thu Mar 09, 2017 8:43 pm

Hey Scott 2, thanks for dropping by and leaving a message.

It is actually a very strange feeling to have a "real" job that pays so well after 12 years of low pay (or active debt accrual). It's hard to be taken seriously by some people if I say I have sacrificed so much and I make what I make now. I would call this more of a long term investment. Hopefully it pays off!

MedSaver
Posts: 39
Joined: Tue Nov 24, 2015 1:04 am

Re: MedSaver's Journal

Post by MedSaver » Fri Mar 31, 2017 9:48 pm

March 2017 Update

Liabilities:

Credit cards = $0

Fiancee loans
Total student loans (5 year fixed 3.5%) = $48,782

MedSaver loans
Student loans blended (5 year ~3.5% fixed) = $157,889

Assets:
IRA/Brokerage/403b/457/cash: $484,411
Travel fund: $4000

Net:+$277,740

MedSaver
Posts: 39
Joined: Tue Nov 24, 2015 1:04 am

Re: MedSaver's Journal

Post by MedSaver » Tue May 02, 2017 9:12 pm

April 2017 Update

Liabilities:

Credit cards = $0

Fiancee loans
Total student loans (5 year fixed 3.5%) = $47,619

MedSaver loans
Student loans blended (5 year ~3.5% fixed) = $154,417

Assets:
IRA/Brokerage/403b/457/cash: $509,629
Travel fund: $2000

Net:+$307,593

MedSaver
Posts: 39
Joined: Tue Nov 24, 2015 1:04 am

Re: MedSaver's Journal

Post by MedSaver » Tue May 30, 2017 9:04 pm

May 2017 Update

Liabilities:

Credit cards = $0

Fiancee loans
Total student loans (5 year fixed 3.5%) = $46,465

MedSaver loans
Student loans blended (5 year ~3.5% fixed) = $150,940

Assets:
IRA/Brokerage/403b/457/cash: $516,167
Travel fund: $2000

Net:+$318,762

DutchGirl
Posts: 1038
Joined: Tue Sep 06, 2011 1:49 pm
Location: The Netherlands

Re: MedSaver's Journal

Post by DutchGirl » Sat Jun 17, 2017 5:47 am

Nice, MedSaver. You're doing well. Keep it up. How do you like your work?

MedSaver
Posts: 39
Joined: Tue Nov 24, 2015 1:04 am

Re: MedSaver's Journal

Post by MedSaver » Sun Jun 18, 2017 4:29 pm

Hi DutchGirl. Thanks for the words of encouragement. With regards to work, it's a mix. Some days I really dislike it and other days I help save someone's life.

MDFIRE2024
Posts: 370
Joined: Fri Jan 06, 2017 5:09 pm
Location: Germany

Re: MedSaver's Journal

Post by MDFIRE2024 » Mon Jun 19, 2017 11:56 am

MedSaver wrote:
Sun Jun 18, 2017 4:29 pm
Hi DutchGirl. Thanks for the words of encouragement. With regards to work, it's a mix. Some days I really dislike it and other days I help save someone's life.
I guess ups and dows are kind of normal, IMO. I experience same feelings about work. Well, maybe you know if there are more better days than worse days?

MedSaver
Posts: 39
Joined: Tue Nov 24, 2015 1:04 am

Re: MedSaver's Journal

Post by MedSaver » Sun Jul 02, 2017 4:50 pm

June 2017 Update

Liabilities:

Credit cards = $0

Mrs. MedSaver loans
Total student loans (5 year fixed 3.5%) = $43,303

MedSaver loans
Student loans blended (5 year ~3.5% fixed) = $147,508

Assets:
IRA/Brokerage/403b/457/cash: $555,299
Travel fund: $3000

Net:+$364,488

Interesting note: I now have enough in my taxable accounts that I could pay off my entire loan balance should I need/want to (i.e. I have passed the "break even point" on my student loans). The plan was to invest that money, which I have done and been rewarded for doing. For now, we will continue to plug away at our loans like usual, but it is nice to know that if I lost my job, I would still end up debt free.

MDFIRE2024 - With regards to work, I'm not sure I can break down my good days and my bad days. But some days are definitely worse than others. Due to some changes at work, good days are becoming more prevalent though.

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