Money Meets Medicine Podcast
MMM #36: Ways to Take Money Out Before Age 59.5
Are you planning on retiring early? What do you do with all of those retirement investments? How can you avoid all of the annoying penalties and fees? We share all of the secrets on how to take the money out of your accounts before age 59.5. Keep on reading to find out!
What You’ll Learn:
In this episode of Money Meets Medicine, “Ways to Take Money Out Before Age 59.5,” you’re going to learn…
- How to get money out of your 401k before the time.
- How to avoid all of those annoying penalties.
- What to do with all of your different retirement accounts?
- And more!
Resources from the Episode:
6.5 Ways to Overcome The Early Retirement Gap to Age 59.5
This Episode’s Sponsor
Instead of a sponsor for this episode, we thought we would make sure you know about our other shows. So, if you can’t get enough of Ryan you can head over to Financial Residency where he goes more into financial topics and, if you enjoy Jimmy’s take on things, you can check out his new podcast on coaching for doctors, which is aptly named The Physician Philosopher podcast where I provide an uncurated and unapologetic look into physician life so that you can build the life you deserve. One Thought at a Time. So, check out Financial Residency and The Physician Philosopher podcasts in your favorite podcast player.
Listener Question of the Week:
Today’s listener question comes from Dr. Astle:
“My wife just graduated from PA school last month and just started a job that will pay between $157,000 and $210,000 based on RVU. I am a dental student still and thus have no income. Suddenly we are going from the lowest tax bracket to about 22%. I know the Roth limit is about $206k for a married couple, but if she passes that 206k and reaches 210k, are we still eligible to contribute directly to Roth IRAs since our current tax filing still has us in the lowest bracket? Or will we still need to do backdoor Roth?”
Each episode, we are going to start including listener questions as they are provided to us. So, if you have a specific question you’d like answered on the podcast reach out to us! Email [email protected] or [email protected]
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Show Me the Money (In the Financial Industry)
The personal finance industry is meant to help you manage your assets, but particularly for doctors, many questions remain around what that kind of support actually means.
Does your financial advisor have your best interest at heart? Do you know how they get paid? Are they transparent in their disclosures about how their company actually works? Where are the conflicts of interest?
Because you can rest assured there are conflicts of interest. It’s just a matter of how they show up. And once you can say “Show me the money” and find them, that’s when you can make intentional, informed decisions regarding your personal finance.
In tackling this topic, we wanted to acknowledge the two main reasons you may be considering your options for charitable giving, especially as a high-earning physician.
One is that you may have religious convictions that make you feel more inclined to give. Even if you don’t hold to the same belief system that we do – specifically around tithing and the historical background of that concept – giving to your community is very valuable. Not just for the recipient, but for you, the giver.
This leads us into reason two, which is that giving money (or other valuable resources) and helping others has been shown to increase long-term satisfaction and fulfillment in your life.
There’s also a practical side of financial charitable giving to consider, which are the tax advantages you can use to create the most bang for your buck – literally.
Charitable Giving for Physicians
Does tithing or charitable giving play a part in your personal finances? Should it? As usual, we’re not shying away from taking a deep dive into a very personal topic. Personal finance is personal, maybe never more so than when it comes to deciding how you want to give back.
In tackling this topic, we wanted to acknowledge the two main reasons you may be considering your options for charitable giving, especially as a high-earning physician.
One is that you may have religious convictions that make you feel more inclined to give. Even if you don’t hold to the same belief system that we do – specifically around tithing and the historical background of that concept – giving to your community is very valuable. Not just for the recipient, but for you, the giver.
This leads us into reason two, which is that giving money (or other valuable resources) and helping others has been shown to increase long-term satisfaction and fulfillment in your life.
There’s also a practical side of financial charitable giving to consider, which are the tax advantages you can use to create the most bang for your buck – literally.
Making the Most of Your Paycheck
You’ve done it – your training is complete and now you’re finally getting a paycheck fit for an attending physician. You think, “I’ve arrived! I’m going to start making so much more money.”
Famous last words. If you’re not prepared, that is.
Seemingly unassuming, everyday expenses still have the potential to wreck your new paycheck and your budget. I’ve seen it many times over the years: you try to be careful, but you (understandably) want to enjoy your hard-earned money. Costs creep up on you, things snowball. Suddenly, your post-tax paycheck is no different than it was in residency.
You thought you knew how to spend money wisely, but now you wonder, “What was the point of all my hard work to get here?”
Don’t worry. You can still enjoy the money you make while being aware of five main money traps that a high-income earner like you could be susceptible to if you’re not paying attention.
Are you ready to live a life you love?
© 2021 The Physician Philosopher | Website by The Good Alliance
There is another way to get money out of retirement accounts before 59 1/2. If you retire from a company after age 55, you can access your 401K or 403B accounts from that organization. Not helpful at age 50, but still might help some people.
Also an update from a prior podcast when you guys mentioned the Mayo Clinic physician salary cut due to COVID: The clinic just announced they are paying back the amount cut and making us whole. Also they have reinstated 403B match for the year. I hope other companies are able to do the same.