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Thread: Building Wealth

  1. #1
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    Building Wealth

    I've been reading articles all morning about how Millennials, as a whole, are fucked regarding the upcoming recession and I realize that I am not a twenty something with pending financial doom.

    My partner and I are in a happy, healthy, loving relationship. We plan to be married next summer. We both have chosen to advance our academic careers and currently have a combined income of ~70k but there is green tinged light at the end of this tunnel.

    We both currently have no debt and live within our means. However, 1 year from now my partner is going to begin looking at fellowships for when she finishes her residency, a proccess I'm told will cost in the neighborhood of 10k-15k. We plan to have at least 5k in savings, and hopefully more, but we will need to take on debt to pay for the costs.

    Also, in 3 years we plan to start a family and add at least one less dumb motherfucker to the gene pool. The timing is pretty non-negotiable because my partner's expected specialty within academic surgery is both hyper competitive and one of the last true bastions of male dominion. The reality of this is that I will have to put my graduate degree on hold and we will raise a child for 3 years on mostly debt while my partner completes her fellowship.

    The upside to this is that 6 years from now we will have a family and the means to service this debt. We recognize that the financial decisions we make between now and then may drastically affect our decisions and want to do what is both responsible for ourselves and future children as well as leave us with the best set of options.

    Is a traditional bank loan the best way for us to get the money we will need or is there a better alternative? Have any of you made decisions like this, and if so, how did it work?

  2. #2
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    Why do you want a kid again?
    "I don't pretend to have all the answers, and I think there's something to be said for that" -One For The Road

    Brain dead and made of money.

  3. #3
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    If you're partner is a MD that specializes and doesn't have school debt you'll be fine. Her income will grow x10 within 10 years. Don't fuck up and lose your gravy train.

  4. #4
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    When you say residency, are you talking post MD/OD med school? What is your partners earning potential going forward?

    If you are talking MD/OD medicine and your partner is going to be a specialist earning $400K+ a $10K loan to get into a fellowship is a no brainer.

    If your partner is a vet or some alternative medicine (naturopathy, chiropractor, etc) and doesn't have a lot of earning potential I think you are setting yourselves up for a lot of pain down the road.

    How old are you guys? How much debt do you have across student loans, car loans, consumer debt? What is your personal current career/ academic trajectory?

    $70K combined income for two working adults seems low, especially if one is an MD/OD resident who should be pulling in at least $50k per year.

  5. #5
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    Get the loan while you are both working. I can't see a bank giving an unsecured personal loan of any substance. High limit credit card might be your only option other than student loans.

  6. #6
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    $10-20K+ can pretty easily be floated between zero interest credit cards. I can hear the cash only crowd scoffing into their cheap coffee. However, if you're financially responsible, they can be a pretty handy tool.
    Remind me. We'll send him a red cap and a Speedo.

  7. #7
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    Quote Originally Posted by ghosthop View Post
    Is a traditional bank loan the best
    Can you get student loans now? My $.02 those are pretty darn cheep money and I would first look into maxing those out. This is a bit outta my practice/expereince area, but I would also recommend contacting the finaical aid office of her med school, describe the situation, see what they recommend. they may not talk to you as a BFF you have no legal standing, but if you couch it the right way they might.
    "Can't you see..."

  8. #8
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    With how this post is written, there has to be a massive safety net here.
    Live Free or Die

  9. #9
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    Quote Originally Posted by ghosthop View Post
    The timing is pretty non-negotiable because my partner's expected specialty within academic surgery is both hyper competitive and one of the last true bastions of male dominion.
    Fertility issues and miscarriages can happen though, I of course hope they don't to you.

  10. #10
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    Quote Originally Posted by fatnslow View Post
    If you're partner is a MD that specializes and doesn't have school debt you'll be fine. Her income will grow x10 within 10 years. Don't fuck up and lose your gravy train.
    Really? So, in ten years we will still have this fucked up medical system that impoverishes everyone? Don't count on it.

    Let's do some livin'
    After, we die

  11. #11
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    1. Build up savings
    2. Invest savings in a nice watch--something pretentious that will appreciate in 1-2 years
    3. Network, network, network
    4. Sell watch for tidy profit
    5. Use money to buy food, clothing and diapers until big money starts rolling in

  12. #12
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    Quote Originally Posted by Benny Profane View Post
    Really? So, in ten years we will still have this fucked up medical system that impoverishes everyone? Don't count on it.
    Keep in mind residents make SHIT so a doc making $200-400K is not so much for 8 years of schooling at a cost of $200-400K. Even if they implement universal health care the specialists will make a good chunk of change, take a look at what docs make in Canada and it'll be a realistic comparison.

  13. #13
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    This is more about avoiding poverty than building wealth for you at this point. Cut expenses, borrow what you must at the lowest rate you can, try to bring in some money where you can, voila.

    Re-evaluate when circumstances change.

  14. #14
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    And don't have kids.


  15. #15
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    It sounds like you’re living together? Combined income of $70k with no current debt should be able to result in well over $5k additional savings in 12 months. $10k is reasonable, $15k should be attainable. It doesn’t sound like you have much of any current savings. Unless you just recently finished paying off debt, some relatively simple, but sometimes hard, changes in lifestyle would likely help you save 20% of your income.

  16. #16
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    Quote Originally Posted by fatnslow View Post
    Keep in mind residents make SHIT so a doc making $200-400K is not so much for 8 years of schooling at a cost of $200-400K. Even if they implement universal health care the specialists will make a good chunk of change, take a look at what docs make in Canada and it'll be a realistic comparison.
    I hate my medical care, because I always have to filter what's being said or done to me through the Porsche lens, as I call it.

    My road bike buddy is a social security only 73 year old who is now battling prostate cancer that spread to his bones. He attempted to convey the special pain that bone cancer brings yesterday at a rest stop. It sounded awful, and he admitted to me how scared he was and probably still is. But, he's a Vietnam vet who is getting all his care from the VA. Bronx, NY is his main hospital. It's amazing treatment and care, because I've seen the results over a year. He kicked my ass on a brutal wall for the first time in two years, in the big chainring. He's really happy with the treatment and people, too, and he doesn't like too many people. It's a team approach, from what I get, and it works. And he barely pays shit for treatment and drugs, and the drugs are the treatment, mostly. But, there's also advanced tech.
    That's socialized medicine. I really doubt that many Porsches are in the garage.

    Let's do some livin'
    After, we die

  17. #17
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    Quote Originally Posted by Benny Profane View Post
    Vietnam vet who is getting all his care from the VA. Bronx, NY is his main hospital. It's amazing treatment and care, because I've seen the results over a year.... He's really happy with the treatment and people, too,
    Experiences may vary... but let’s keep this out of Poly Ass

  18. #18
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    Well, it's about building wealth, right? So, choose your career wisely. Past performance doesn't guarantee future returns.

    Let's do some livin'
    After, we die

  19. #19
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    OP, while I love my adult children and really enjoy their company, if I had known what a PITA my oldest was going to be from 13-21, I never would have done it. I am not a big fan of kids, unless they are someone else's.
    Don't have kids until you guys are solid in your careers and can afford a live in to take care of your midget. If one of you can work from home too, so much the better.
    That's all I got, but it is great advice.
    Quote Originally Posted by leroy jenkins View Post
    I think you'd have an easier time understanding people if you remembered that 80% of them are fucking morons.
    That is why I like dogs, more than most people.

  20. #20
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    Specialized MDs will continue to be paid well. Quality specialists in socialized US government healthcare are payed more than enough to justify a 10k loan.


    My worry in the case is who the loan is too. Make sure you’re not signed up for some debt to cover the costs of an education which might not be a part of your family in 3-5 years. Especially since it sounds like you're postponing investing in your own education/ability to generate income over the same time. Not saying it’s gonna happen, but it could. Are both sets of your biological parents still with their first spouse? both sets divorced? Asses the risks, make an informed decision. Plenty of folks out there carrying debt for someone who left them. It sucks to think about.

  21. #21
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    Gotta agree with Xavier here. You could pay cash if you decided to prioritize saving.

    You titled the post building wealth - itís not generally good advice to try to build wealth through debt. To each their own there

    If you are borrowing, student loans


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  22. #22
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    I like the part about not taking the loan in your name. If/when you do get married if will be joint debt anyway. If she's a md she can practice by harvesting a kidney and selling it ? I would think that can solve your money needs and a hell of a compelling essay when applying for a fellowship.

  23. #23
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    I canít figure out why itíll cost you (beyond moving expenses) for a fellowship. Her income depending on location as a pgy6-9 should be in the 70k realm alone. Throw in some moonlighting and she will be in the 90-100k range.


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  24. #24
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    Quote Originally Posted by detrusor View Post
    I canít figure out why itíll cost you (beyond moving expenses) for a fellowship. Her income depending on location as a pgy6-9 should be in the 70k realm alone. Throw in some moonlighting and she will be in the 90-100k range.


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    X2. On 70k plus another income, you should be at least treading water.

  25. #25
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    Quote Originally Posted by detrusor View Post
    I can’t figure out why it’ll cost you (beyond moving expenses) for a fellowship. Her income depending on location as a pgy6-9 should be in the 70k realm alone. Throw in some moonlighting and she will be in the 90-100k range.


    Sent from my iPhone using TGR Forums
    X3.

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