Individual 401(k): The Basics
The IRS refers to the Individual 401(k) as a one-participant 401(k). Also known as a Solo-k or Uni-k, the Individual 401(k) is the basic retirement account for the self-employed individual who has no employees. Eligibility requirements You must be self-employed and own your own business The business may be structured as a Sole Proprietorship, a […]
Investment Policy Statement: A Template
You need an Investment Policy Statement. Do you have one? If you said no, you’re not alone. Neither did I, until now. The White Coat Investor has been harping on this for nearly a decade. I admired his elegant IPS posted on the Bogleheads forum but couldn’t make myself sit down to write it all […]
My Retirement Asset Allocation
I have written about the basics of asset allocation. Today I would like to lay out what my own retirement asset allocation looks like. Lazy Portfolio I’m a set it and forget it kind of person. So the lazy portfolio works perfectly for me. I have decided on an asset allocation I can live with […]
Coast FI: Our 2020 Milestone
FIRE blogs are lighting up with a new kind of FI: Coast FI. This is a very cool name for a milestone my husband and I hit this year, amidst all the chaos. Let’s find a little bit more about it. On FIRE FIRE is the acronym for Financial Independence Retire Early. The movement started […]
How Much To Save for Retirement?
Saving for retirement. Sounds fairly simple, right? Earn a bunch of money. Stick it in accounts earmarked “Retirement” and you’re done! Actually, this isn’t far from the truth. It really is simple. Let’s see how. Working Your Way Backwards In the previous post on this series, we learned how to figure out how much you […]
Safe Withdrawal Rate: The Trinity Study
In the previous post, we read about Bengen’s 1994 study which first brought about the concept of a Safe Withdrawal Rate to ensure one’s portfolio outlasts oneself in retirement. Close on the heels of Bengen’s publication, came another one: “Retirement Savings: Choosing a Withdrawal Rate That Is Sustainable”, nicknamed the Trinity Study- since the three authors […]
Safe Withdrawal Rate: The Evidence
If you are saving up for retirement, you are probably planning on a Safe Withdrawal Rate between 3 and 4%. Where does this come from? As physicians, we love to see the evidence behind recommendations. Here’s a little bit about the Safe Withdrawal Rate. The origin of the Safe Withdrawal Rate comes from a study […]
How Much Do You Need For Retirement?
I did an informal survey of physicians back in 2016. One of the questions I asked was this: How much do you need for retirement? 11% of the nearly 1000 physicians said they had no idea. This is a problem. How do you attain a goal if you can not define it? So let’s try […]
Healthcare Costs in Retirement: The Basics (Part 2)
We started our conversation on Healthcare Costs in Retirement in Part 1 and here we will continue to look a little closer at the numbers. Healthcare Costs in Retirement: The Sum Total We saw the results of the Fidelity and HVS Financial Studies,which respectively, estimated that a couple turning 65 yrs in 2019 will spend […]
Healthcare Costs in Retirement: The Basics (Part 1)
Healthcare costs in retirement: known as the BIG UNKNOWN of retirement finances. Even among folks enthusiastic and knowledgeable about personal finance, I found this subject broached with some trepidation. Turns out, it may be less daunting than initially expected. Make no mistake, it is a sizable chunk of change. Plus, it remains the most uncertain […]