2016 Wrap-up

Favignana island, Italy[/caption] 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! ]]>

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5 Comments

  1. Hatton1 on January 7, 2017 at 10:17 am

    Hey Bonnie, great start to a blog. Great bio. Now you need advertisers and soon you will be putting up numbers like WCI. Hatton1



  2. DrColleenS on January 8, 2017 at 1:34 pm

    Great start for a blog and off to financial independence! It’s always good to do a year end review and nothing better than using it as a starting point for this new venture.

    I find Net Worth to be a troublesome figure for myself, owning a few properties and knowing what mint via willow says they are worth vs the unknown of what they could actually sell for means a variance of $100k or so in net worth (we’ll not talk about what the bought prices were before base realignments). But using the equation above (albeit with an average salary lower than current d/t my military service) I’m at 2x my ENWD, so this is my favorite blog post for a while!



  3. Physician on FIRE on January 8, 2017 at 2:42 pm

    Great goals, Bonnie!

    I read your “money history” post, too. To come from where you’ve been to where you are now is an awesome transformation.

    Cheers to Green Numbers in next year’s recap!
    -PoF



  4. Biglaw Investor on January 8, 2017 at 9:25 pm

    Those are some great goals for 2017! Knocking out $50K in student loans makes the burden so much better. For a doc, you don’t have that much in total loans so these will be gone before you know it at that rate.



  5. SomeRandomGuyOnline on January 10, 2017 at 3:43 pm

    Sounds like great goals for the coming year! Also, kudos to the solid savings rate this past year. It won’t be too long until you’re in the positive for your net worth.



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