Long-term planning advice

[Abe]

Hello everyone, I'm new to the forum but have been reading MMM's website for a couple months now.  I am requesting advice on long-term savings for an unusual situation.  Currently, my wife and I are in residency training for medicine and surgery, respectively.  We currently save 40% of our post-tax income (which is approximately $100k). She is finishing in a year, at which point our income will more than double and savings will increase to 60%.  After several more years, I will be finished training and our income will double again, with savings increasing to 75% (depending on how small a house I can convince her to buy!). We could then retire and work for non-profit NGOs after another 10 years or less. With this scenario, what is more advisable: putting money in a 401k with its associated withdrawal age limits and potentially high-fee funds, or a taxable retirement account in low-fee index funds? The majority of our savings would have to go into taxable account anyway. 

Thank you!

[Johnny Aloha]

Not that investing as a doctor is different than investing for others, but I came across this blog today.  It'll help answer that question, and probably many others that you might have like asset protection, disability insurance, etc.

http://whitecoatinvestor.com/new-to-the-blog-start-here/

[Mayan]

I suspect that maximizing tax-advantaged space would be very helpful at the income level you're looking at post-residency.  Even maxing out two 401ks should still leave enough money for significant taxable savings in addition.  You'll have the opportunity to roll them into IRAs after changing jobs if the investment options are subpar in your employer's 401k

[Abe]

Thank you all for the advice. The website is quite helpful.  I didn't realize that 401k's can be rolled into IRAs if one changes jobs. The taxable savings should be more than enough to bridge us until the minimal withdrawal age.

[iamsoners]

Yes, as Mayan said, both.  Even after maxing 401ks, you should have room for taxable investments. Plus, look in to 42t rules that allow you to withdraw from 401ks without penalty prior to 59.  Plus, if you continue to keep expenses low, you can probably live off the NGO salaries without having to draw from savings.

[matchewed]

https://forum.mrmoneymustache.com/continue-the-blog-conversation/getting-rich-from-zero-to-hero-in-one-blog-post/