Author Topic: In need of advice (a bit long, sorry)  (Read 8632 times)

the_fella

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In need of advice (a bit long, sorry)
« on: July 15, 2015, 01:25:51 PM »
I just started a new job. It only pays minimum wage, which is $8.10 in my state. It's part time, so my pay varies each week (we get paid every week). I am trying to build my savings. Right now, I have the company automatically deposit 10% of my paychecks into my savings account and then I automatically transfer an additional $15 as well. I'm considering increasing this to 15-20%. Right now, I only have about $90 saved (started from zero). My next paycheck will put this over $100 (woo!). I'd like to start investing at some point. I've looked into Vanguard, but it seems the minimum for their accounts is $3,000. I guess my question is: what other investment houses have fees close to Vanguard's and lower minimums? Or do you suggest I go another route entirely? I'd like to invest in an index fund that tracks the market.

My company (a multibillion dollar company and one of the largest grocers in the US) offers an employee stock purchase plan, but it's purchased at market rate (and does pay a dividend). It actually just underwent a stock split, but I"m not sure what that means. The only real "benefits" that I see of this plan are that we pay no fees at all, afaik there is no holding period, and we can purchase fractional shares. Tbh, I don't really think this is worth my time, but you guys may have other thoughts.

birdman2003

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Re: In need of advice (a bit long, sorry)
« Reply #1 on: July 15, 2015, 01:32:12 PM »
I would just wait until you have accumulated $3000 in your savings account.  Then open an account with Vanguard and purchase your mutual fund.  You can do automatic transfers of something low like $100 a month, and buy fractional shares of your Vanguard fund.  That's what I would do.

trailrated

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Re: In need of advice (a bit long, sorry)
« Reply #2 on: July 15, 2015, 01:58:59 PM »
Don't get ahead of yourself, build up an emergency fund first. This is what I used to pre-plan, I hope it helps. You are on the right track!

https://www.bogleheads.org/wiki/Bogleheads%C2%AE_investment_philosophy

tdogz

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Re: In need of advice (a bit long, sorry)
« Reply #3 on: July 15, 2015, 02:08:53 PM »
I agree, Emergency Fund first. For you it might be $100, $500, or $5,000. you need to decide that first. Then when you have $1,000 over your minimum Emergency Fund amount, open a Roth IRA at Vanguard if that is your brokerage of choice (it is the one I use). All of their Target Date funds have a $1,000 minimum. Just choose the one that has the closest Stock/Bond allocation to what you would like. I assume you are pretty young, so you have plenty of time to retirement. You can choose something more aggressive (higher percentage of stocks), like the 2055 fund.

I suggest the Roth IRA over a Traditional IRA because you will probably be paying the lowest tax rate of your life this year (assuming no other taxable income). Roths are great when your taxes are low.

Heckler

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Re: In need of advice (a bit long, sorry)
« Reply #4 on: July 15, 2015, 02:21:27 PM »
+4.  Save yourself up some cold hard cash for the next year and then think about investing a portion of it.

the_fella

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Re: In need of advice (a bit long, sorry)
« Reply #5 on: July 15, 2015, 04:21:13 PM »
I agree, Emergency Fund first. For you it might be $100, $500, or $5,000. you need to decide that first. Then when you have $1,000 over your minimum Emergency Fund amount, open a Roth IRA at Vanguard if that is your brokerage of choice (it is the one I use). All of their Target Date funds have a $1,000 minimum. Just choose the one that has the closest Stock/Bond allocation to what you would like. I assume you are pretty young, so you have plenty of time to retirement. You can choose something more aggressive (higher percentage of stocks), like the 2055 fund.

I suggest the Roth IRA over a Traditional IRA because you will probably be paying the lowest tax rate of your life this year (assuming no other taxable income). Roths are great when your taxes are low.

Thanks for your advice. How would I determine the amount of the emergency fund? You're correct; I'm fairly young. I'll be turning 25 very soon, but I'm told I look 18-19. Lol. 

YoungInvestor

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Re: In need of advice (a bit long, sorry)
« Reply #6 on: July 15, 2015, 06:59:25 PM »
That dépends on many factors.

Do you live with your parents or on your own? Live with a Partner with shared finances? Dépendants? Job safety?

I'd start with maybe 3-6 months Worth of expenses.

Rosy

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Re: In need of advice (a bit long, sorry)
« Reply #7 on: July 15, 2015, 07:48:09 PM »
You know, since you are young and ready to roll - you might consider only one and a half months of your salary as an emergency fund to start with.
Then build up in Vanguard to say $1000 - that gives you something tangible and you are in the game:)

Then build up another month and a half of your income for that immediate emergency fund. That gives you three months of savings which is a nice cushion.

Then back to investing, now maybe doing an 70/30 split - 70% investing and 30% for building up some serious cash - or 50/50 see what makes sense and works best for you.   
 Good luck!
« Last Edit: July 15, 2015, 08:02:32 PM by Rosy »

Jeremy E.

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Re: In need of advice (a bit long, sorry)
« Reply #8 on: July 15, 2015, 09:55:20 PM »
I agree, Emergency Fund first. For you it might be $100, $500, or $5,000. you need to decide that first. Then when you have $1,000 over your minimum Emergency Fund amount, open a Roth IRA at Vanguard if that is your brokerage of choice (it is the one I use). All of their Target Date funds have a $1,000 minimum. Just choose the one that has the closest Stock/Bond allocation to what you would like. I assume you are pretty young, so you have plenty of time to retirement. You can choose something more aggressive (higher percentage of stocks), like the 2055 fund.

I suggest the Roth IRA over a Traditional IRA because you will probably be paying the lowest tax rate of your life this year (assuming no other taxable income). Roths are great when your taxes are low.
+1

ClaycordJCA

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Re: In need of advice (a bit long, sorry)
« Reply #9 on: July 15, 2015, 11:24:45 PM »
I agree with the advice to fund an emergency fund before investing. Consider setting up a savings account with an on-line bank for that account - you'll likely find the interest far to be higher. When ready to invest, consider Schwab. They have a total market index fund with a $100 minimum.

money_bunny

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Re: In need of advice (a bit long, sorry)
« Reply #10 on: July 16, 2015, 05:38:30 AM »
I'm also going to go with emergency fund first. When you make 9-10 dollars an hour which I also did when I was 25 you are at risk of not having enough money to cover emergencies. Like my fridge dying or my car needing a repair. These both happened. When I made minimal money I had minimal resiliency. That lack of ability to absorb losses is what leads many people into the traps of high interest debt.

I'm thinking it's great you want to get started though. As someone mentioned above you are in a special and lucky case tax wise. The fact that you are thinking about this at 25 means you probably won't stay there. You also are working for minimal wage at a grocery. The fact that you are posting here probably means that is not your end goal either.

Overall have you thought about your overall plan?

Good luck.

Jeremy E.

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Re: In need of advice (a bit long, sorry)
« Reply #11 on: July 16, 2015, 07:34:40 AM »
I'd recommend investing part of that in teamtreehouse.com ($25/month). You will probably be able to learn some skills that might land you a job paying a bit more.

the_fella

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Re: In need of advice (a bit long, sorry)
« Reply #12 on: July 16, 2015, 10:34:22 AM »
I'd recommend investing part of that in teamtreehouse.com ($25/month). You will probably be able to learn some skills that might land you a job paying a bit more.

I'm currently working on my application to medical school. If I don't get in, I have other plans for much higher paying jobs.

the_fella

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Re: In need of advice (a bit long, sorry)
« Reply #13 on: July 16, 2015, 10:36:07 AM »
I agree with the advice to fund an emergency fund before investing. Consider setting up a savings account with an on-line bank for that account - you'll likely find the interest far to be higher. When ready to invest, consider Schwab. They have a total market index fund with a $100 minimum.

The majority of my banking is with Ally, the rest is with Barclays, both are online. And thank you, I'll definitely take a look at Schwab.

Crushtheturtle

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Re: In need of advice (a bit long, sorry)
« Reply #14 on: July 16, 2015, 11:11:49 AM »
Good on you for thinking about investing at a young age.

Think about your income too. If you're not already, educate yourself in trade or business that will boost your income. The more dollars you can sock away in index funds the better.

Zamboni

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Re: In need of advice (a bit long, sorry)
« Reply #15 on: July 16, 2015, 11:38:14 AM »
Wow, I wish I had access to something like this board when I was 25!

I agree with everyone that you should hold an emergency fund first, then move to rolling money into a Roth IRA. To clarify what some have said here, Vanguard did require $3000 to open the account (at least when I was starting mine a few years ago). Then you can transfer small amounts at a time. Save absolutely as much as you can in a savings account to get up to that amount and then put it in a Roth when you reach the minimum. You can withdraw your principle from a Roth at any time without penalty, but if you let it marinate there for many years you will be rolling in cash some day. You can put up to $5500 per year in a Roth as long as you make that much through employment, and you can fund "this year's" Roth as late tax day next year.

Good luck with your med school application!  Be sure to get it submitted as early in the cycle as possible (the posted deadline is not really the deadline; many schools have picked their accepts before that date so the early bird often gets the worm.)

the_fella

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Re: In need of advice (a bit long, sorry)
« Reply #16 on: July 16, 2015, 02:51:59 PM »
Wow, I wish I had access to something like this board when I was 25!

I agree with everyone that you should hold an emergency fund first, then move to rolling money into a Roth IRA. To clarify what some have said here, Vanguard did require $3000 to open the account (at least when I was starting mine a few years ago). Then you can transfer small amounts at a time. Save absolutely as much as you can in a savings account to get up to that amount and then put it in a Roth when you reach the minimum. You can withdraw your principle from a Roth at any time without penalty, but if you let it marinate there for many years you will be rolling in cash some day. You can put up to $5500 per year in a Roth as long as you make that much through employment, and you can fund "this year's" Roth as late tax day next year.

Good luck with your med school application!  Be sure to get it submitted as early in the cycle as possible (the posted deadline is not really the deadline; many schools have picked their accepts before that date so the early bird often gets the worm.)

This actually isn't my first time applying. I started an application last cycle but didn't finish it for various reasons. I actually just submitted the application very recently. I'm waiting on my new MCAT scores, but they allow you to submit before you have the scores. Interestingly enough there are 6 MD schools in my state (only one is private), and I'm applying to all of them. I'm thinking I may have a somewhat better chance at a couple of the "lower tier" schools in my state (most of them also have a very strong in-state bias), but we'll see. Haha.

I understand the benefits of a Roth IRA for retirement. I was ideally looking for something to help generate income for the more immediate future. But I'm probably getting ahead of myself here.

Jeremy E.

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Re: In need of advice (a bit long, sorry)
« Reply #17 on: July 16, 2015, 06:51:47 PM »
Wow, I wish I had access to something like this board when I was 25!

I agree with everyone that you should hold an emergency fund first, then move to rolling money into a Roth IRA. To clarify what some have said here, Vanguard did require $3000 to open the account (at least when I was starting mine a few years ago). Then you can transfer small amounts at a time. Save absolutely as much as you can in a savings account to get up to that amount and then put it in a Roth when you reach the minimum. You can withdraw your principle from a Roth at any time without penalty, but if you let it marinate there for many years you will be rolling in cash some day. You can put up to $5500 per year in a Roth as long as you make that much through employment, and you can fund "this year's" Roth as late tax day next year.

Good luck with your med school application!  Be sure to get it submitted as early in the cycle as possible (the posted deadline is not really the deadline; many schools have picked their accepts before that date so the early bird often gets the worm.)

This actually isn't my first time applying. I started an application last cycle but didn't finish it for various reasons. I actually just submitted the application very recently. I'm waiting on my new MCAT scores, but they allow you to submit before you have the scores. Interestingly enough there are 6 MD schools in my state (only one is private), and I'm applying to all of them. I'm thinking I may have a somewhat better chance at a couple of the "lower tier" schools in my state (most of them also have a very strong in-state bias), but we'll see. Haha.

I understand the benefits of a Roth IRA for retirement. I was ideally looking for something to help generate income for the more immediate future. But I'm probably getting ahead of myself here.
If you contribute to Roth, you are able to withdraw the principal but not the accrued returns in the short term. But if you want to be able to take out the principal and the returns, a regular brokerage account will work fine.

mrpercentage

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Re: In need of advice (a bit long, sorry)
« Reply #18 on: July 16, 2015, 07:53:48 PM »
Kroger is a good company. It's a good long term investment too. I know they just split so its not hard for me to guess. $38 a share I think. Grocers are a good place to be if the market goes down and we have had a really good run. Investing in Kroger wouldn't hurt.

I would build up a $1000 first then start investing a some (whatever they match, or up to 10%) while adding to saving.  Even if you are living with your parents have that $1000. You never know when something will come up and you don't want to start charging stuff. If you have any debt, after you save the $1000 then kill the debt before invest.

Go ahead and build up some company stock. Whenever it hits big gains trade some for index, and switch to index, whenever Kroger goes down hard reverse and buy Kroger again-- leaving index in index. You can make huge gains over the long term that way while safeguarding what you earn

Zamboni

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Re: In need of advice (a bit long, sorry)
« Reply #19 on: July 17, 2015, 06:05:03 AM »
I'm thinking I may have a somewhat better chance at a couple of the "lower tier" schools in my state (most of them also have a very strong in-state bias), but we'll see. Haha.

Good luck to you!

Question: Guess what they call the guy who finished last in his class at the "lowest tier" school in his state?

Answer: Dr.

Most patients never worry about where their doctor went to school. Doctors eventually make good money in the US as long as they went to school in the US and passed the boards.

Seriously, you probably already know it can be pretty tough to get in anywhere. So, if you get an interview at the "lowest tier" school, the place that might now you might rank as your last choice, then be genuinely delighted.

Here is probably more advice than you are looking for:
Do your research about specific details of the MD program where you get an interview and come up with some reasons that sound really genuine about why that school is, in fact, your first choice. Write these down by hand, along with some questions you have about that program, on the last sheet of a small notepad. Take that with you to the interview. Reread what you wrote the night before and maybe rewrite it more neatly on the second-to-last page. Now you are well-prepared for the interview, so be confident! That way, if you get put on the spot with "do you have any more questions", respond with "yes I wrote some down here in my notes while I was reading about your program" and you can quickly an easily flip to that page to refer to your notes. No interviewer will respond negatively to that.

From my experience interviewing people, the red flags in interviews are:
1) candidates who can't tell me anything specific about why they are interested in our specific program.
2) candidates who can't come up with a question.
3) candidates who can't explain what they did in a listed research experience or can't articulate what they learned from a previous patient-contact, volunteer, shadowing, or job experience in detail.
4) candidates who seem primarily motivated for the "wrong" reasons (money)
5) arrogant candidates who seem to take it for granted that they will get a position; this is why you need to be able to express things about the program that really interest you and be able to say that it is among your top choices of schools.
 
I understand the benefits of a Roth IRA for retirement. I was ideally looking for something to help generate income for the more immediate future. But I'm probably getting ahead of myself here.

If it's really needed for the immediate future (like med school tuition next year), then seriously just put it in a money market account or CD. I might go for the employee stock purchase program for a small amount of my savings, but I'm not sure. The additional money you might gain in a year by investing in the market is not worth the risk to the principle on money needed in such a short time frame.

the_fella

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Re: In need of advice (a bit long, sorry)
« Reply #20 on: July 17, 2015, 10:57:25 AM »
I'm thinking I may have a somewhat better chance at a couple of the "lower tier" schools in my state (most of them also have a very strong in-state bias), but we'll see. Haha.

Good luck to you!

Question: Guess what they call the guy who finished last in his class at the "lowest tier" school in his state?

Answer: Dr.

Most patients never worry about where their doctor went to school. Doctors eventually make good money in the US as long as they went to school in the US and passed the boards.

Seriously, you probably already know it can be pretty tough to get in anywhere. So, if you get an interview at the "lowest tier" school, the place that might now you might rank as your last choice, then be genuinely delighted.

Here is probably more advice than you are looking for:
Do your research about specific details of the MD program where you get an interview and come up with some reasons that sound really genuine about why that school is, in fact, your first choice. Write these down by hand, along with some questions you have about that program, on the last sheet of a small notepad. Take that with you to the interview. Reread what you wrote the night before and maybe rewrite it more neatly on the second-to-last page. Now you are well-prepared for the interview, so be confident! That way, if you get put on the spot with "do you have any more questions", respond with "yes I wrote some down here in my notes while I was reading about your program" and you can quickly an easily flip to that page to refer to your notes. No interviewer will respond negatively to that.

From my experience interviewing people, the red flags in interviews are:
1) candidates who can't tell me anything specific about why they are interested in our specific program.
2) candidates who can't come up with a question.
3) candidates who can't explain what they did in a listed research experience or can't articulate what they learned from a previous patient-contact, volunteer, shadowing, or job experience in detail.
4) candidates who seem primarily motivated for the "wrong" reasons (money)
5) arrogant candidates who seem to take it for granted that they will get a position; this is why you need to be able to express things about the program that really interest you and be able to say that it is among your top choices of schools.
 
I understand the benefits of a Roth IRA for retirement. I was ideally looking for something to help generate income for the more immediate future. But I'm probably getting ahead of myself here.

If it's really needed for the immediate future (like med school tuition next year), then seriously just put it in a money market account or CD. I might go for the employee stock purchase program for a small amount of my savings, but I'm not sure. The additional money you might gain in a year by investing in the market is not worth the risk to the principle on money needed in such a short time frame.

I fully intend to go to any US based medical school that is crazy enough to accept me (Mark Twain once said something like he wouldn't be a part of any organization that would want him as a member. Lol). I'm NOT going to turn down an acceptance should I be fortunate enough to receive one. Right now, my interest is family medicine, though I'm told that changes for most people once they start rotations. I know a guy who will likely be going to the American University of the Caribbean. I refuse to go to the Caribbean, though as I almost certainly wouldn't find a residency, especially after the merger. But I haven't even received any secondaries yet, so I'm getting waaay ahead of myself here. Haha. I'm waiting for my final LOR (she was on vacation and forgot about it, but promised to have it in by the end of this week).

TheAnonOne

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Re: In need of advice (a bit long, sorry)
« Reply #21 on: July 17, 2015, 01:56:23 PM »
Honestly, everyone here is answering your questions correctly but not thinking outside the box.

Save your money, and don't blow it, sure....

The investments you should be buying are things to increase your income. College degrees, certificates, training, and/or business ventures.

At 10k or less per year, you have only one direction to go, but you need to go there.

the_fella

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Re: In need of advice (a bit long, sorry)
« Reply #22 on: July 17, 2015, 09:03:37 PM »
Honestly, everyone here is answering your questions correctly but not thinking outside the box.

Save your money, and don't blow it, sure....

The investments you should be buying are things to increase your income. College degrees, certificates, training, and/or business ventures.

At 10k or less per year, you have only one direction to go, but you need to go there.

I have a masters degree, but it's in German. Hence the working at a grocery store...

Terrestrial

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Re: In need of advice (a bit long, sorry)
« Reply #23 on: July 18, 2015, 09:49:03 AM »
If you are fairly certain you will be going to medical school don't worry about investing now.  I'm going to go out on a limb and guess than you don't have the 150k+ it takes already socked away.  My sister ended up with over 150k in loans from med school and had some things like her car and insurance still covered by our parents.  Med school is expensive and it's hard to work any meaningful hours during it to bring in income to defray much of the cost.   Even things like interviewing for your residency at the end can take a few thousand dollars as you need to fly to various places, stay in hotels, etc.  When doing away rotations you can get stuck paying your normal rent plus lodging for wherever you are staying. 

You will likely be paying 6-7% on at least a portion of that borrowed money, on a risk adjusted basis it's better to not incur debt at 7% that will hang over your head for years until you are able to start repaying it than invest in the market.  I'd say sock away the emergency fund first and then start stockpiling money for school expenses.  If you end up not going then think about investing your stockpile then. 

Good luck on getting into school.
« Last Edit: July 18, 2015, 10:07:30 AM by Terrestrial »

Terrestrial

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Re: In need of advice (a bit long, sorry)
« Reply #24 on: July 18, 2015, 09:58:00 AM »
Go ahead and build up some company stock. Whenever it hits big gains trade some for index, and switch to index, whenever Kroger goes down hard reverse and buy Kroger again-- leaving index in index. You can make huge gains over the long term that way while safeguarding what you earn

Sorry but i have to disagree with this, especially for his context.    He's making minimum wage and almost has $100 saved.  This is not the time or place for him to be investing in individual stocks, especially that of his employer and when there is really no incentive at all besides not having a commission and being able to buy partials.  If he was going to be doing any market investing at all it should be in an index fund at this stage in the game and having essentially no assets. 

The implication that Kroger will 'hit big gains'  and outperform the index may or may not be true, but regardless is no guarantee, nor is buying something when it's down hard always a valid strategy, there is also no guarantee of future outperformance.  Frankly sometimes securities go down hard for a reason and should not be bought.  When Lehman brothers had shed 75% of it's stock value it was still a terrible time to buy it, not a great opportunity for value.  Finally, the idea of trying to time the switches back and forth from a single stock to the index and back is a terrible idea and far more likely to result in underperformance.
« Last Edit: July 18, 2015, 10:10:06 AM by Terrestrial »

Terrestrial

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Re: In need of advice (a bit long, sorry)
« Reply #25 on: July 18, 2015, 10:02:55 AM »
In the meantime, there is no reason you can't work on raising your income a bit.  Just because a full time job using your degree isn't yet apparent doesn't mean there aren't part time options.   If you have a masters degree in German I'm assuming you are fluent...look into translation as a short term job option while sorting out med school application, even if it's only a few hours a week and something you can do online, translators earn 2-3x the hourly wage you are getting at the grocery store.  Put out some flyers to try and get a few german students to pay you for tutoring at your local high school/college....tutoring wages are also generally 2-3x your grocery store earnings.  If you can add even 5 hours a week doing one or the other or a combo, it will be a huge boost to your income....do whatever you can to use the skills you gained in school.
« Last Edit: July 18, 2015, 10:11:36 AM by Terrestrial »

Chesterfield

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Re: In need of advice (a bit long, sorry)
« Reply #26 on: July 18, 2015, 10:52:10 AM »
Are you sure you want to go to Medical School? It is a long, expensive, low paying road for many years with huge debt for most people. 4 yrs medical school you pay. (Avg debt approx $25k a year) Residency, they pay you about $50k a year to work 80 hrs a week. That's 2 full time jobs at $12.50 an hour. More than you make now but you are a doctor. 3 years of residency -if you do Family Medicine. Likely more years of low pay if you decide to specialize ( from internal med or peds).
Most people, after 7 years of training will have a job that pays $120k a year and at least $100k debt. Yeah, you can go into private practice and make more... But most people who go into medicine want to help people and those jobs don't pay a lot (comparatively). If you are on MMM you want to retire early. Do something else. P.A?

the_fella

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Re: In need of advice (a bit long, sorry)
« Reply #27 on: July 18, 2015, 10:56:24 AM »
In the meantime, there is no reason you can't work on raising your income a bit.  Just because a full time job using your degree isn't yet apparent doesn't mean there aren't part time options.   If you have a masters degree in German I'm assuming you are fluent...look into translation as a short term job option while sorting out med school application, even if it's only a few hours a week and something you can do online, translators earn 2-3x the hourly wage you are getting at the grocery store.  Put out some flyers to try and get a few german students to pay you for tutoring at your local high school/college....tutoring wages are also generally 2-3x your grocery store earnings.  If you can add even 5 hours a week doing one or the other or a combo, it will be a huge boost to your income....do whatever you can to use the skills you gained in school.

Yea. I've tried to do translation work in the past and got ripped off. Lol. Next time I do any translation work, I'll demand POD. I'm also really good with computer shit, so that's another avenue I can take.

the_fella

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Re: In need of advice (a bit long, sorry)
« Reply #28 on: July 18, 2015, 11:01:17 AM »
Are you sure you want to go to Medical School? It is a long, expensive, low paying road for many years with huge debt for most people. 4 yrs medical school you pay. (Avg debt approx $25k a year) Residency, they pay you about $50k a year to work 80 hrs a week. That's 2 full time jobs at $12.50 an hour. More than you make now but you are a doctor. 3 years of residency -if you do Family Medicine. Likely more years of low pay if you decide to specialize ( from internal med or peds).
Most people, after 7 years of training will have a job that pays $120k a year and at least $100k debt. Yeah, you can go into private practice and make more... But most people who go into medicine want to help people and those jobs don't pay a lot (comparatively). If you are on MMM you want to retire early. Do something else. P.A?

I understand all of that, tbh. There are lots of loan forgiveness programs for physicians. There are also a LOT of incentives to attract physicians to FM because it's the lowest paid specialty and is experiencing a shortage of physicians (for that reason) and increasing encroachment by PAs and NPs. Though Idk if I'm even going to get in.

Jeremy E.

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Re: In need of advice (a bit long, sorry)
« Reply #29 on: July 18, 2015, 12:55:05 PM »
Go ahead and build up some company stock. Whenever it hits big gains trade some for index, and switch to index, whenever Kroger goes down hard reverse and buy Kroger again-- leaving index in index. You can make huge gains over the long term that way while safeguarding what you earn

Sorry but i have to disagree with this, especially for his context.    He's making minimum wage and almost has $100 saved.  This is not the time or place for him to be investing in individual stocks, especially that of his employer and when there is really no incentive at all besides not having a commission and being able to buy partials.  If he was going to be doing any market investing at all it should be in an index fund at this stage in the game and having essentially no assets. 

The implication that Kroger will 'hit big gains'  and outperform the index may or may not be true, but regardless is no guarantee, nor is buying something when it's down hard always a valid strategy, there is also no guarantee of future outperformance.  Frankly sometimes securities go down hard for a reason and should not be bought.  When Lehman brothers had shed 75% of it's stock value it was still a terrible time to buy it, not a great opportunity for value.  Finally, the idea of trying to time the switches back and forth from a single stock to the index and back is a terrible idea and far more likely to result in underperformance.
I'd say it depends 100% on whether or not there is company match, if there is, I'd contribute to it

the_fella

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Re: In need of advice (a bit long, sorry)
« Reply #30 on: July 19, 2015, 08:57:29 AM »
Go ahead and build up some company stock. Whenever it hits big gains trade some for index, and switch to index, whenever Kroger goes down hard reverse and buy Kroger again-- leaving index in index. You can make huge gains over the long term that way while safeguarding what you earn

Sorry but i have to disagree with this, especially for his context.    He's making minimum wage and almost has $100 saved.  This is not the time or place for him to be investing in individual stocks, especially that of his employer and when there is really no incentive at all besides not having a commission and being able to buy partials.  If he was going to be doing any market investing at all it should be in an index fund at this stage in the game and having essentially no assets. 

The implication that Kroger will 'hit big gains'  and outperform the index may or may not be true, but regardless is no guarantee, nor is buying something when it's down hard always a valid strategy, there is also no guarantee of future outperformance.  Frankly sometimes securities go down hard for a reason and should not be bought.  When Lehman brothers had shed 75% of it's stock value it was still a terrible time to buy it, not a great opportunity for value.  Finally, the idea of trying to time the switches back and forth from a single stock to the index and back is a terrible idea and far more likely to result in underperformance.
I'd say it depends 100% on whether or not there is company match, if there is, I'd contribute to it

The company website says:

   After one year of service, you will receive automatic company contributions of 1% of pay up to $1,000 a year. After five years of service, you’ll  receive 2% of  pay up to $2,000. The company match is $1 for $1 up to 3% of pay and 50˘ for each dollar on the next 2% of pay. You begin receiving matching contributions after one year of service.

Heckler

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Re: In need of advice (a bit long, sorry)
« Reply #31 on: July 19, 2015, 09:01:39 AM »
Next, look into any vesting rules - how long do you need to be with the company before you outright own, and can sell the shares?  Is there anything preventing you from selling them?

Chesterfield

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Re: In need of advice (a bit long, sorry)
« Reply #32 on: July 19, 2015, 02:34:23 PM »
So you should seriously look into becoming a "mid-level provider". I am an NP and it took me 2 years to get my master's / at Vanderbilt bridge program. I did loan repayment ( which by the way is the same $ for NP or MD) 50k for a 2 year commitment NHSC ( same amount of money as it was in 1994) Nurse practitioners are "encroaching" on MDs in family practice because the vast majority of complaints in primary care/ you don't need to be a doctor for. Now, NPs are soon going to require a doctorate (Doctor of Nursing Practice- DNP) to be an NP. That is why you should look into PA school, unless you want to deliver babies in which case you should go to Midwifery school. Takes far less long, pay is really quite good. Best decision I ever made. I have been an NP for 20 years now, I work as a substitute (locum) for a community health center and only work 1-3 days a week- sometimes less. Perfect for early retirement or early partial retirement. 2 or 3 years of schooling sets you up for a great career in demand, pays >$50 an hour. My wife is a physician, med peds  certified, just finished infectious disease fellowship ( she is currently PGY -9) will work her whole life. Still making less than an attending salary. M.D. is a long road. I recommend you look into other options. Especially if you want to do primary care. It is way too much education for the vast majority of complaints. It's why so few MDs want to go into primary care.

dess1313

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Re: In need of advice (a bit long, sorry)
« Reply #33 on: July 20, 2015, 04:05:01 AM »
I overheard my dentist speaking with a young guy who was considering dentistry or medecine.  I've never heard it put so simply.  You can have a life, or you can save a life.   His example of dentistry often lets you set hours, choose you level of work etc.  Medicine not so much.  you work a lot of hours, late hours, weekends, holidays and such on top of a its a long long road to become a doctor.  Its a lot of stress and wear and tear on your body

Have you looked at other medical fields such as Respiratory therapy, physiotherapy, nursing, or other programs that are 3-5 years(here anyways) long and still giving good pay while being fairly transferable?  Much better outlook than a 10+ years being a slave in residency and 150k+ in debt.  Sometimes being the one in charge isn't as much fun as you'd think.  Much better being the middle man (my experience anyways)

And also save your money and get an emergency fund.  keep it in some sort of savings account.  you're not sure of a lot of things right now, wait until things have settled a bit before getting crazy about investing.

Jeremy E.

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Re: In need of advice (a bit long, sorry)
« Reply #34 on: July 20, 2015, 07:07:29 AM »
The advice that your looking for isn't whether or not you should get an MD or not, but since lots of people are giving that advice, I'll throw my 2 cents in too. I think if you want to be an MD, GO FOR IT! But if you don't get in after 2 years, don't keep trying, go for something else like a NP or Dentist. Some people will keep applying to med school for 4+ years... They can't take a hint. Meanwhile they are getting paid minimum wage, letting their undergrad loans accrue interest, and saving little to no money.

dess1313

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Re: In need of advice (a bit long, sorry)
« Reply #35 on: July 21, 2015, 12:57:48 AM »
First thing is are you SURE that is exactly what you want to be a family doctor?  What part of it attracts you?  what parts don't attract you?  Why did you pick it?

Here's a synopsis of my story.  i was SURE i wanted to be a physiotherapist. I did job shadows, and research and everything.  I had to do a general studies year before i could apply so i did all my pre req's and got all my ducks in a row.  I applied, and even though i got an interview, i did not get a spot in the program.  So i had to stop and think.  1.what could i do to improve my chances  2.what do i do if i don't get in next year?

Well i retook a course with a poor mark to boost my GPA.  I also dabbled in a few other courses that had interested me, and i wanted to see if i would like them.  I also went to an information session about the course held by the univeristy.  By total accident i found out about another program that set off a huge lightbulb above my head.  Ding ding ding this sounds AWESOME!  So i did what i could to boost my GPA that year, did a bunch of shadowing to show my excitement and commitment and reapplied to PT AND also respiratory therapy.  I got into RT school and never looked back.  As much as i loved the idea of PT, the RT program totally fit perfect for me.

And again i was SURE i wanted to work with kids.  I was SURE until i got there.  people are great, kids are great, but something just didn't fit right.  When i got involved in the adult side and especially the trauma side that light bulb went off again.  I currently still work in the trauma center and still love it to this day

So all i am trying to say is although you are wanting to become a family doctor, don't put on blinders and ignore other opportunities.  Look at what part of it attracts you, and why.  And for your sake, have plan B started.  Don't depend wholly on getting into Med school.  Where would i be now if i spent 4 years trying to get into PT and never looked at my other options?  In a ton of debt with no job, still having to go back to school to get into an actual program.  I know several docs who started off as nurses, RTs, etc and used that as an income source, and a way to get into med school with a slightly easier path since they knew a lot from their previous training

the_fella

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Re: In need of advice (a bit long, sorry)
« Reply #36 on: July 22, 2015, 12:13:48 PM »
First thing is are you SURE that is exactly what you want to be a family doctor?  What part of it attracts you?  what parts don't attract you?  Why did you pick it?

Here's a synopsis of my story.  i was SURE i wanted to be a physiotherapist. I did job shadows, and research and everything.  I had to do a general studies year before i could apply so i did all my pre req's and got all my ducks in a row.  I applied, and even though i got an interview, i did not get a spot in the program.  So i had to stop and think.  1.what could i do to improve my chances  2.what do i do if i don't get in next year?

Well i retook a course with a poor mark to boost my GPA.  I also dabbled in a few other courses that had interested me, and i wanted to see if i would like them.  I also went to an information session about the course held by the univeristy.  By total accident i found out about another program that set off a huge lightbulb above my head.  Ding ding ding this sounds AWESOME!  So i did what i could to boost my GPA that year, did a bunch of shadowing to show my excitement and commitment and reapplied to PT AND also respiratory therapy.  I got into RT school and never looked back.  As much as i loved the idea of PT, the RT program totally fit perfect for me.

And again i was SURE i wanted to work with kids.  I was SURE until i got there.  people are great, kids are great, but something just didn't fit right.  When i got involved in the adult side and especially the trauma side that light bulb went off again.  I currently still work in the trauma center and still love it to this day

So all i am trying to say is although you are wanting to become a family doctor, don't put on blinders and ignore other opportunities.  Look at what part of it attracts you, and why.  And for your sake, have plan B started.  Don't depend wholly on getting into Med school.  Where would i be now if i spent 4 years trying to get into PT and never looked at my other options?  In a ton of debt with no job, still having to go back to school to get into an actual program.  I know several docs who started off as nurses, RTs, etc and used that as an income source, and a way to get into med school with a slightly easier path since they knew a lot from their previous training


Oh, I'm definitely NOT planning only on getting into medical school. I have a number of possibilities if I don't. I'm considering getting a teaching license, or even applying to the District Manager position at Aldi (starting salary of $80,000, with great benefits). The only requirement for the Aldi DM job is that you have a bachelor's degree (which I do). I've also considered applying to the Foreign Service. As I mentioned above (I think), most medical students change their minds about their speciality once they start rotations. ie: in med school, students rotate through a bunch of different specialties, to give them a better idea of what field they'd like to practice in. I also have interests in psychiatry and Gerontology. We'll see. But I haven't even gotten in yet. I'm waiting on my final letter of evaluation (the person forgot about it). They said they'd have it in by the end of last week, but Idk if they actually submitted it or not. I contacted them but have yet to hear back.