Description

Have you maxed out your 401(k) or 403(b)? What should you do now? There are a lot of different options—what do those look like, what might be a good out, and what to pass on. 

In this episode of the Finance for Physicians Podcast, Daniel Wrenne talks about  401(k)s and what to do after you max those out.

Topics Discussed:

• Max Contribution Amount: $20,500 for an employed physician
• Financial Plan: Allows you to match your goals with dollars to put them to work
• Is the 401(k) enough? If not, how much do you need to save? Assume more
• What’s the next best option? Maximizing tax shelters for added tax benefit
• HSA: Use as healthcare savings account instead of healthcare spending account
• Backdoor Roth IRA: Fund a traditional IRA and then convert it into a Roth
• More Options: 457(b), cash balance, deferred compensation, and after-tax 401(k)
• What to consider? Complexities, different structures, expenses, and side jobs
• Tax-Loss Harvesting: List of things you can do to minimize taxation
• Alternative: Investing in real estate business can be active or passive income
• Short- vs. Long-Term Capital Gains: Which are least and most tax-efficient?

Links:

E*TRADE

Robinhood

Using Your HSA To Build Wealth

Why the HSA is a Hidden Gem

Everything You Need To Know About Backdoor Roth IRA with Jennifer Quire

Are You Saving Enough For Retirement

Digging Into Tax Loss Harvesting

Before You Buy Into Passive Income

Why is Permanent Life Insurance Such a Terrible Short Term Investment

Contact Finance for Physicians

Finance for Physicians

Full Episode Transcript:

Hey, guys. Hope you’re having a great day. I am planning to talk about 401(k)s and what to do after you max those out. That’s a pretty common question that comes up, and I think there are a lot of different options after that, so we’ll talk through what those might look like, what might be a good out and what might be options to maybe pass on.

Before we get into that, I want to give you guys a quick update on just the podcast in general and tell you a couple of things we’ve been working on. If you’ve listened awhile, you know my goal is really to help physicians (in general) use money to live better. I think what’s different about us is we’re focused on the ‘live better’ part and not necessarily the ‘more money’ part. That’s been great to focus on that in this avenue.

In my day job, I work with a lot of individuals. It’s more of a one-on-one basis. Our planning firm—Wrenne Financial Planning—have several financial planners, including myself, working one-on-one with physician families. This has been a really great way for me to work more in a one-to-many avenue. It seems like, so far, we started to gain some traction.

Surprisingly, it’s been almost two years. I think it was October of 2020 when I started this, maybe more like a year-a...