I am 1.33 years out of residency. Using White Coat Investor's net worth formula, I ended 2016 not up to par:
Expected Net Worth of a Doctor (ENWD) = Average Post-Residency Income X Years Since Training X 0.25
= + $93,100
or is it this equation from his actual book:
ENWD = Salary X Years in Practice X 0.3 – 200,000
= – $88,280
At the end of the day, Net Worth = Assets – Liabilities.
2016 ended with: – $92,000
But what that negative number doesn't reveal is that I had:
$10,000 cash savings
$85,000 retirement accounts
and of course, student loans, at $187,000. I finished residency with $200,000 in loans.
I did not count my very small 529 account.
My 2016 savings rate was 27.4%. I included retirement savings, cash savings, and extra payments towards student loans.
2017 Financial Goals:
- Cross over into positive net worth
- Knock out 50K of student loans (this is in addition to the min. payments)
- Max out all available tax advantaged accounts ($47K, not including employer contributions)
- Start a taxable account
M and I hired a financial planner just before the New Year and we are excited to start planning!
How did your net worth grow in 2016? Comment below!