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deleted992230
I am an MD/MBA (obtained MBA later at top institution while working) whereby I specialized in Anesthesiology. I have a trust that I will be inheriting with about 8M and I'm current worth approximately 3M, so the total assets come out to be 11M. Assets are mostly liquid in a mix of stock index funds and bonds, with about 50K in misc Gold holding and 425K in a house that I bought with cash.
When I run the NPV numbers at 7% (assumption for long term returns) for 10.5M in assets (liquid portion), I obtain a negative 4.3M with a 500K cashflow after 30 years. Considering the 500K is "post tax" money, I would need to earn about 800K to obtain 500K post tax. The tax drag on trust assets for post tax assets would only be 15% for Long Term Capital Gains and income on 401K monies (approximately 3.5M of assets). So for the assumption to take into account tax drag, the pre tax income would be closer to 700K to make a fair comparison for NPV.
My questions include:
1) Does it make sense to continue to practice Anesthesiology considering the risk for high cost lawsuits? Even at 90+ percentile MGMA, I would never be able to replace this money if lost in a large malpractice. Is it logical to go to part time?
2) Go back for Pallative Care Fellowship whereby income would be closer to 230K or so but very low risk for malpractice . I could potentially use my MBA to get hospital based administrative positions as well.
3) Go into non medical field with utilization of MBA to get into consulting or related fields in insurance companies.
4) Retire. I would be very nervous to retire at early 40s and it would seem like a waste.
Any thoughts on the goal for this situation?
When I run the NPV numbers at 7% (assumption for long term returns) for 10.5M in assets (liquid portion), I obtain a negative 4.3M with a 500K cashflow after 30 years. Considering the 500K is "post tax" money, I would need to earn about 800K to obtain 500K post tax. The tax drag on trust assets for post tax assets would only be 15% for Long Term Capital Gains and income on 401K monies (approximately 3.5M of assets). So for the assumption to take into account tax drag, the pre tax income would be closer to 700K to make a fair comparison for NPV.
My questions include:
1) Does it make sense to continue to practice Anesthesiology considering the risk for high cost lawsuits? Even at 90+ percentile MGMA, I would never be able to replace this money if lost in a large malpractice. Is it logical to go to part time?
2) Go back for Pallative Care Fellowship whereby income would be closer to 230K or so but very low risk for malpractice . I could potentially use my MBA to get hospital based administrative positions as well.
3) Go into non medical field with utilization of MBA to get into consulting or related fields in insurance companies.
4) Retire. I would be very nervous to retire at early 40s and it would seem like a waste.
Any thoughts on the goal for this situation?
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