For an audio version of this post, please click on the speaker icon (top left).
Welcome to this episode of The Doctor’s Bill (Can You Afford It?).
Wonder if you should buy that big ticket item or not?
Well here’s your chance to have a wealth management expert, Johanna Fox Turner, of Fox & Company Wealth Management analyze your overall finances and make a final verdict on whether or not you can indeed swing for the fences and splurge on yourself or whether you should just walk away.
[Johanna and I have no current financial relationship]
Disclaimer: This is not meant to be a substitute for paid professional advice but only meant to serve as a suggestion/guideline.
The following are the details from our submission form:
Permanent move to Puerto Rico (will continue working – Both physicians)
$75000 per year x 57 years
On A Happiness Scale of 1-10 (10 Being Happiest), rate what this item/experience will do for you A) Short Term and B) Long Term:
A) 10 B) 10
How Many Years Till Planned Retirement?
20 – (will downshift to 0.75 FTE in 3-5 years)
What is your total household income?
$300,000 – currently
What is your % Annual Savings Rate? (savings/gross income)
Primary Home Equity (Market Value-Debt) [For Renter =$ 0]
Additional Real Estate Holdings Equity (Market Value-Debt):
Current Liquid Asset Value (Savings, Checking, Etc.):
Retirement/HSA Combined Value:
Miscellaneous Asset Value:
Student Loan Balance:
Will have to buy home ($300,000) at PR – which is why liquid asset value at 100k
Future College Funding Needed (Today’s Dollars)
$0 – DINK [Dual Income, No Kids]
Future Parental Support Funding Needed (Today’s Dollars):
Additional Future Obligation Support (Today’s Dollars):
Any other pertinent information not addressed?
Would want to know if can move to PR and retire comfortably at 75k per year spending rate.
As this submitter provided an email, Johanna was able to ask additional questions:
1. Moving in 3 – 5 years? Is that when you downshift? Until then, dual-doc household earns $300k total?
Moving to PR in 3-5 years at the latest.
Technically we are not downshifting, but the initial medical salary and time commitment due to the economic downturn/situation will have us starting in the lower side of the income side as well as PT work.
Until then dual doc household earns $300k total (Wife is finishing up her fellowship).
2. Annual budget including taxes when you downshift is $75k/yr and you’ll each earn ~$125k (total $250k)? Or one of you will earn $125k?
Annual budget including taxes is $75k/year.
We both will earn 125K total for both of us for the next 5-10 years due to possibility of children (SAHM [Stay At Home Mom]) and part time work with a charity where one or both of us will be donating our time as well.
That is why we feel we need to save up front initially to adjust for any bumps down the road.
3. Future children planned?
Currently no children but planning on one in the next 2 years.
Planning on just one for the time being.
4. Will you be taking care of parents after you move? Estimated cost?
Taking care of parents for now will be difficult to calculate.
We may estimate around 10k per year in about 10 years, they are still both young (63/62) with no major chronic heart illnesses at the time.
They have between SS and Savings a pretty comfortable retirement.
5. Does the $75k/yr include house payments, vehicle replacements, travel?
We are planning of having a paid of house so no mortgage payments.
Vehicle replacements and travel will be included in those costs.
COL [Cost of Living] is very low where we plan to move.
So given the information above, what do you think?
Are these doctors soon to be Puerto Rico bound or would you put an end to their Puerto Rico dreams?
Click on the Doctor’s Bill Image and find out the verdict:
After you see the verdict please come back to this page and comment whether you agree or not with the decision (and no cheating by looking at comments first!)
If you would like to submit your own Doctor’s Bill request please fill out the submission form (and remember email subscribers to XRAYVSN will get priority)
NOTE: The website XRAYVSN contains affiliate links and thus receives compensation whenever a purchase through these links is made (at no further cost to you). As an Amazon Associate I earn from qualifying purchases. Although these proceeds help keep this site going they do not have any bearing on the reviews of any products I endorse which are from my own honest experiences. Thank you- XRAYVSN