Author Topic: Help this Doc Retire, salary over $450k :)  (Read 3892 times)

txranger

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Help this Doc Retire, salary over $450k :)
« on: November 14, 2015, 06:20:04 PM »
Hello MMM Community!

Long time lurker. I am a physician recently out of training. Family of two, soon to be three :)

Here is my finance breakdown:
Should be completely debt free within the next 2-3 months (lived within my means, and heavily paying it off now)
Reserves less than $25k
Main expenses include : rent (1200), car lease ending in 2 months (360/month), looking to buy a decent car
My take home is around $275-300k, and I can save over 70% of that comfortably

Due to personal reasons, I can not invest in gambling, alcohol, pornography or deal with interest.

My goal is to retire in the next 10 years or sooner. What approach would you recommend, What are my options (Cash real estate, stocks, etc?)and I would appreciate any advice in general.

Thank you


marty998

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Re: Help this Doc Retire, salary over $450k :)
« Reply #1 on: November 14, 2015, 06:36:15 PM »
Can't deal with interest? This is an Islamic or Jewish thing regarding usury isn't it?

Given you have not put up any suggestions yourself so far it tells me you haven't done enough reading on what is out there.

I'd suggest that is the first thing you should do - read up as much as you can on every investment topic you can find.

MsPeacock

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Re: Help this Doc Retire, salary over $450k :)
« Reply #2 on: November 14, 2015, 06:40:44 PM »
I don't know what "can't deal with interest" means. Can you clarify? You can't earn interest or you can't charge it, or both. I mean, I guess if both you are pretty much stuck w/ buying gold bars or something....

txranger

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Re: Help this Doc Retire, salary over $450k :)
« Reply #3 on: November 14, 2015, 07:01:01 PM »
Can't deal with interest? This is an Islamic or Jewish thing regarding usury isn't it?

Given you have not put up any suggestions yourself so far it tells me you haven't done enough reading on what is out there.

I'd suggest that is the first thing you should do - read up as much as you can on every investment topic you can find.

Yes, it is not dealing with usury (Can't take interest and can't pay interest). I have read, and am actively reading. I have spent time on bigger pockets and picked up a lot of info. Also considering tech stocks, and gold as well.

I think it is still doable, for example, wholesale cash deals. Looking to see what other options I might have.

MDM

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Re: Help this Doc Retire, salary over $450k :)
« Reply #4 on: November 14, 2015, 07:05:55 PM »
My goal is to retire in the next 10 years or sooner. What approach would you recommend, What are my options (Cash real estate, stocks, etc?)and I would appreciate any advice in general.

txranger, welcome to the forum. 

If you follow the suggestions in http://forum.mrmoneymustache.com/ask-a-mustachian/how-to-write-a-'case-study'-topic/ it might help you get more actionable replies.  Even better, it might help your self-analysis as well.  Good luck!

MDM

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Re: Help this Doc Retire, salary over $450k :)
« Reply #5 on: November 14, 2015, 07:14:18 PM »
Can't take interest and can't pay interest
How indirect must the taking of interest be to be acceptable? 

E.g., you might invest in a single stock that pays no dividends (is a dividend ok or not?), but that company may issue or purchase bonds as part of its cash management strategy - ok for you or not ok?

I assume if you buy property for all cash, that's ok - correct?  Can you then sell to someone who borrows the money from a bank to pay you in full?

Etc.....

txranger

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Re: Help this Doc Retire, salary over $450k :)
« Reply #6 on: November 14, 2015, 07:19:11 PM »
Can't take interest and can't pay interest
How indirect must the taking of interest be to be acceptable? 

E.g., you might invest in a single stock that pays no dividends (is a dividend ok or not?), but that company may issue or purchase bonds as part of its cash management strategy - ok for you or not ok?

I assume if you buy property for all cash, that's ok - correct?  Can you then sell to someone who borrows the money from a bank to pay you in full?

Etc.....

Thank you MDM, receiving a dividend is ok bc I am sharing in risk of loss and profit. Same with any business model, if I invest, I have to share the risk of loss as an investor. All cash properties are completely ok. And I can sell it to a borrower as long as I am not charging any interest.

pbkmaine

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Re: Help this Doc Retire, salary over $450k :)
« Reply #7 on: November 14, 2015, 07:56:07 PM »
There are Islamic social choice mutual funds called Amana Funds. Take a look at Amana Growth and Amana Income. They will underperform in years when financials do well, since their mandate precludes most financial companies. But they are considered to be well run and have good long-term performance.

Reader

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Re: Help this Doc Retire, salary over $450k :)
« Reply #8 on: November 14, 2015, 08:00:04 PM »
Thank you MDM, receiving a dividend is ok bc I am sharing in risk of loss and profit. Same with any business model, if I invest, I have to share the risk of loss as an investor. All cash properties are completely ok. And I can sell it to a borrower as long as I am not charging any interest.

just curious.. does it means all bonds are out of question? if that is the case, it seems like stock ETFs and REITs are the way to go since you take risks in businesses and properties to get returns in dividends and rentals.

obstinate

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Re: Help this Doc Retire, salary over $450k :)
« Reply #9 on: November 14, 2015, 08:03:36 PM »
are you forbidden from charging interest? Or also from paying it. Either way, you will probably not be able to invest in any of the broad based ETFs, since they include banks. I would look for a halal investment fund.

If you're also forbidden from paying interest, you're kinda screwed, since most companies take on some amount of debt and pay interest on that debt. They do this both in the form of corporate loans and bonds.
« Last Edit: November 14, 2015, 08:05:20 PM by obstinate »