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

Matt and I hired a financial planner just before the New Year and we are excited to start planning!

[Main photo: Favignana island, Italy April 2016]

How did your net worth grow in 2016?