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Make Sure You Snatch the Blended Retirement System Match

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Here’s a tip from one of my favorite blogs and authors, Jonathan Clements from Humble Dollar:

SNATCH THE MATCH. Are you on track to contribute enough to your 401(k) to get this year’s full matching employer contribution? If not, crank up your contribution now, so you can spread the required sum over this year’s remaining paychecks. In 2020, the maximum 401(k) contribution is $19,500, or $26,000 if you’re age 50 or older.

For nearly my entire career this wasn’t an issue for those in the military, but it is now due to the new Blended Retirement System (BRS) and its matching Thrift Savings Plan (TSP) contributions. To refresh your memory, if you contribute 5% of your pay to the TSP you get up to a 5% match. If you are in the BRS and you don’t contribute at least 5% every month, you are leaving free money on the table:

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Also, you want to make sure you don’t fill up your TSP too early. While many service members will find it hard to get to the 2020 annual limit of $19,500, for those that do they want to space it out over the whole year. If you fill up your TSP in October and can no longer contribute for November or December, you won’t a get a match that month and will lose out on that money.

While I’m not in the BRS, I do a few things with my TSP contributions that I’d recommend everyone do:

  1. Contribute from your basic pay and not from bonuses or other variable or one-time pays. Your basic pay is the most consistent so use that.
  2. Spread it out over the whole year. For 2020, I’m contributing about $1625/month so that I come in just at the $19,500 limit in December.
  3. I see how much of my TSP is left after the November LES is released, and adjust December to get as close to the limit as possible.

Finance Friday Articles

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Here is an article about the pay raise we just got:

Biggest military pay raise in years takes effect Jan. 1; check out the complete chart

 

Here are my favorites this week:

3 Examples of Why Workaholic Real Estate Investors Have It All Wrong

6 Subjects That Should Have Sparked Your Curiosity in 2019

SECURE Act — 8 Things You Need to Know

 

Here are the rest of the articles:

7 Financial Planning Tips for Locums Docs

11 SMART Financial Goals for Your New Year’s Resolutions

An Unkind Act – The SECURE Act

Donating to a Vanguard Charitable Donor Advised Fund from a Vanguard Brokerage Account

How The SECURE Act Changes Your Retirement Planning

Investing in a Three Fund Portfolio Across Numerous Accounts. Get the Spreadsheet!

Is Buying Stocks at an All-Time High a Good Idea?

It’s So Important to Diversify Your Real Estate Portfolio

Risk Management in Private Real Estate: 3 Types of Uncertainty

SECURE Act And Tax Extenders Creates Retirement Planning Opportunities And Challenges

Thanks for Nothing, Financial Advisor

There are two versions of the S&P 500 index — this is the better investment

The Keys to Financial Success Are Incredibly Mundane (Sorry!)

The SECURE Act: What You Should Know About Retirement Account Reforms

When Are You Saving Enough?

2020 State of the Blog, the Facebook Group, and The Book

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At the beginning of every year I give a general update on how the blog is doing. Enjoy!

Profit

As during previous years, profit was negative $99. I make no money on this, and it costs me $99/year.

Blog Traffic

Here’s a graph of blog traffic since the blog was started in mid-2015:

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The lighter color is page views and the darker color is visitors:

  • 2015 – 3,705 visitors viewed 10,870 pages with 66 posts published
  • 2016 – 18,373 visitors viewed 43,673 pages with 133 posts published
  • 2017 – 32,569 visitors viewed 88,263 pages with 194 posts published
  • 2018 – 56,674 visitors viewed 151,044 pages with 212 posts published
  • 2019 – 60,771 visitors viewed 169,684 pages with 371 posts published

10 Most Popular Blog Posts and Pages in 2019

Here are the 10 most popular pages and posts in 2019:

  1. Joel Schofer’s Promo Prep – 4,065 views
  2. LCDR Fitreps – Language for Writing Your Block 41 – 3,682 views
  3. Joel Schofer’s Fitrep Prep – 3,035 views
  4. Useful Documents – 2,791 views
  5. POM20 Navy Medicine Billet Reduction – 2,556 views
  6. CV, Military Bio, and Letter of Intent Templates – 2,367 views
  7. Useful Links – 1,989 views
  8. Personal Finance – 1,407 views
  9. What are AQDs and How Do You Get Them? – 1,223 views
  10. About Me – 1,083 views

MCCareer.org Private Facebook Group

Some of the blogs I read have vibrant forums and Facebook groups where members interact and ask each other questions. I once started a forum on MCCareer.org, but no one used it so I folded it up. I still have a private Facebook group, though, with over 260 members.

Despite people joining the Facebook group, no one ever posts comments or questions to it. I think there’s only been one in two years. Plenty of people contact me individually to ask questions, so I know there are a lot of questions out there. In 2020, I’d encourage readers to use the Facebook group to get opinions and answers from people other than me.

MCCareer.org “The Book”

Very slowly we’ve been posting “chapters” to the MCCareer.org “book.” Book is in quotes because it really isn’t a book, but more of a collection of on-line posts or chapters. Interest in writing “chapters” has been low so far, although a few authors other than me have pitched in. Most chapters thus far have been written by me.

I’ve begun the process of adding all of my posts to the book page, as you’ll see if you take a look. Slowly but surely I’ll fill out the content outline with what I’ve already written, and if there are holes I’ll write content to fill it in.

I considered creating a wiki page instead, but I’m not willing to give up editorial control. Occasionally someone will post something inappropriate to the blog, and I need to make sure nothing gets posted that would derail my Naval career.

Check out “The Book” when you get a chance and see if there is something you’d be interested in contributing. If there is, contact me.

Automate Your Bill Paying

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Here’s a tip from one of my favorite blogs and authors, Jonathan Clements from Humble Dollar:

AUTOMATE YOUR BILL PAYING. That way, you’ll avoid late payments—crucial to maintaining a good credit score. The downside: You need to be vigilant about keeping enough in your bank account, so you don’t trigger fees for overdrafts or insufficient funds. This is a particular concern with credit card bills, which can vary so much from one month to the next.

How do you do this with USAA, which is where I do my banking?

To sign up with USAA, go here:

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Authorship and Academic Careers in the Navy

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I recently gave a talk to the Emergency Medicine residents at NMC Portsmouth about authorship and academic careers in the Navy. Here is the outline of the talk and some tips…

Academic Career Options

There are a number of options for those who are interested in establishing an academic career in Navy Medicine. Here are the ones I know of:

  • Residency programs at a medical center – Serving as teaching faculty at a residency program at Walter Reed, San Diego, or Portsmouth.
  • Family Medicine (FM) teaching hospitals – Serving as faculty at the FM residency programs in Ft. Belvoir, Lejeune, Camp Pendleton, and Jacksonville. This opportunity is not just for FM physicians, but for Internists, Pediatricians, subspecialists, etc. as the FM programs need all of those people to support the education of their residents.
  • Japanese internships – Both Yokosuka and Okinawa have internships that are structured like Transitional Internships and allow Japanese physicians to learn how American medicine is conducted. Most graduates try to obtain letters of recommendation and apply for graduate medical education (GME) in the US. Taking a leadership role in these programs can prepare you to lead GME programs when you PCS back to the US.
  • Transitional internship programs – Leadership opportunities in Transitional Internships are open to just about every specialty, and many physicians have used Transitional Internship Program Director as the stepping stone to O6.
  • Uniformed Services University of the Health Sciences (USUHS) billets – Many specialties have billets at USUHS that allow you to take a leadership role in the departments and teach medical students.

Authorship Options

The opportunities to publish have increased dramatically during my 18.5 year career. For example, you’re reading this blog and that didn’t exist when I started. Here are the opportunities to publish that currently exist with some tips listed after each:

  • Apps – This is the only thing on this list I haven’t tried, but there are articles that explain how to do it and tell stories of physicians who made money doing it.
  • Blogs – This isn’t hard to do, so there’s nothing but time and effort preventing you from putting your opinion out there for others to read. Don’t underestimate how much time this takes, though, so know what you are getting into. I have literally spent thousands of hours on this blog.
  • Books and book chapters – I’ve published 4 books (you can see 3 of them on Amazon here) by working with my specialty society, so that is one opportunity to pursue when it comes to books. The easiest way to start writing books chapters is to find someone you know that is senior to you who already writes chapters and offer to be a co-author for the next edition. If you go to your department head/chair or residency director, they should be able to tell you who writes book chapters in the department.
  • Case reports – This is the entry path to publishing and where I made most of my initial academic bones. Frankly, publishing case reports gotten me a lot of my academic reputation, fitrep impact in block 41, and subsequent promotion to O4 and O5. Nowadays, there are a lot of journals and it is easier than ever to get something accepted, especially if you are open to publishing cases on blogs or in newsletters.
  • Humanities – Many journals regularly publish 1-2 page articles about the experience of being a physician, ethics, military medicine, and other related topics. A common way to get one of these published would be to deploy and then write a humanities piece while deployed or upon returning about your experience.
  • Newsletters – I wrote a personal finance column in one of our specialty society newsletters for 7 years. If you can get a regular gig like this, it will force you to write on a regular basis and really build your CV and academic reputation. Every specialty has newsletters and “throw away” journals that arrive in the mail. Contact the editors, offer to write something, and see if this is something you enjoy.
  • Podcasts – Similar to blogs, this is fairly easy to do with some free software (Audacity), a $50 USB microphone headset, a podcast host (I host on this blog’s WordPress site but here are other hosts out there), and the time to figure out how to post your content on the Apple store. Like blogging, it is very time consuming. Personally, it is not my favorite thing to do (which is why my podcast has lagged way behind) because I have zero interest in learning how to properly edit recordings, but there is nothing preventing you from getting your voice out there.
  • Research manuscripts – If you want to do research, you should start with the Institutional Review Board (IRB) that your command is subject to. There will be resources available to help you, but in my experience it is a pull system (you have to inquire and go get them) and they are not pushed to you. Typically, you’ll find grant writers, statisticians, and sources of money to do research. You’ll also find additional military rules and regulations heaped on top of all of the already existing IRB rules and regulations. This latter fact is what dissuaded me from doing a lot of research in my academic career.
  • Review articles – Most journals solicit authors to write review articles, so it is hard to get one accepted if it is unsolicited. That said, if you shorten it a bit by focusing on a more narrow topic and build it around a case presentation, you can get them accepted as case reports.

How to Build Your Academic Career in the Navy

What is the easiest way to build an academic career? It is simple but not easy. Not that many people follow through on it. Here are the steps:

  1. Obtain a USUHS faculty appointment – This blog post tells you how to do it.
  2. Progress toward promotion

This 2nd step is the step that most people fail to follow through on. They get appointed as an Assistant Professor, and then they stop working toward promotion to Associate Professor or full Professor.

In general, an Assistant Professor is a local/regional expert, an Associate Professor has established themself as a regional/national expert, and a full Professor has reached national or international acclaim. If you touch base with your USUHS department once a year and get their assessment about what steps you need to take to get promoted, you will be forcing yourself to progress in your academic career.

For example, I’m an Associate Professor of Military & Emergency Medicine and recently applied to be a full Professor. The feedback I was given was that I needed 3-4 more peer-reviewed publications as the first author. I may or may not choose to try and get them, but at least they gave me an honest assessment of what I needed to do. If you do this annually, you’ll get actionable feedback that you can address as you build your academic chops.

Asset Location

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Here’s a tip on asset location from one of my favorite blogs and authors, Jonathan Clements from Humble Dollar:

After deciding what investments to buy, we should consider asset location. What’s that? It involves divvying up investments between taxable and retirement accounts. If investments generate large annual tax bills—think taxable bonds and actively managed funds—we’ll typically want to hold them in a retirement account.

Jonathan’s advice is the traditional advice. Put your taxable bonds, like the Thrift Savings Plan (TSP) F and G funds, into your retirement accounts. This is what I do. My F and G funds are in the TSP, clearly a retirement account, and my international bonds (which they don’t have in the TSP) are in an individual retirement account (IRA).

I don’t own actively managed funds, and I also don’t invest in real estate investment trusts (REITs), although I have in the past and I think about it pretty frequently.

There is another school of thought, though. The White Coat Investor has a different take. You can read about them in his posts entitled My Two Asset Location Pet Peeves and Bonds Go in Taxable!

Of note, just about everyone says to put actively managed funds or REITs in a retirement account, so you won’t find any arguments there.

If you’re really interested in this concept/discussion, the Bogleheads Wiki on tax efficient fund placement is a great read as well.

Check Your Beneficiary Designations

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Here’s a tip from one of my favorite blogs and authors, Jonathan Clements from Humble Dollar:

CHECK YOUR BENEFICIARY DESIGNATIONS. Your retirement accounts and life insurance will typically pass to the beneficiaries specified on those accounts, not the people named in your will. If your family situation has changed, or you simply don’t remember who you listed, take a moment to review your beneficiary designations.

Don’t let the ex-spouse get your money when you die! Update your beneficiaries.

How to See Your Beneficiaries for the Thrift Savings Plan (TSP)

If you log on to the TSP page, you need to click on the link along the lower left, marked by the large red arrow:

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Then you’ll see this, and you can change them at the bottom:

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