Financial Health Assessment
Bruce and Barbara: Critical Care Fellow Household Scores 53 Out of 100
By Ryan Inman
Published · Updated
Critical careFellow · Graduating summer 2021Couple, no children yet
Financial Health Assessment score
53 out of 100
Corrections
- Needs a workup 0 to 39
- Corrections 40 to 69
- Stable 70 to 84
- Healthy 85 to 100
The score grades the household on 19 measures across seven frameworks. Bruce and Barbara lands at 53, in the Corrections band, score 40 to 69.
Bruce is a critical care fellow graduating in summer 2021, earning about $70,000. Barbara is a software engineer earning $130,000, plus a 10 percent annual bonus and stock plan sales averaging $15,000 a cycle. Take home pay is $8,500 a month as stated. The assessment scores the household 53 out of 100, in the Corrections band.
Start with the saving. The household holds about $200,000 in Roth IRAs during training, $50,000 in a 401k, $50,000 in the stock plan account, and $25,000 in an HSA. Stated flows run $4,750 a month: $3,250 to the 401k and 403b, both maxed as stated, $500 to the HSA and FSA, and about $1,000 to backdoor Roth IRAs. On stated earnings of about $215,000 to $228,000, that is over 20 percent of stated earnings.
The loan plan is just as deliberate. The $133,000 student loan was refinanced privately at 1.95 percent, on a five year term the household plans to finish in four years, by January 2023, for a $4,000 early payoff bonus, at $3,285 a month. The missing layer is protection paperwork: no umbrella policy, no estate documents, and no life or disability cover stated for Barbara.
$133,000
Student loan · 1.95 percent private refinance
$200,000
Roth IRAs · combined, during training
$4,750/mo
Stated saving flows · about 25 percent of earnings
About $215,000
Stated household earnings · fellow plus engineer
59
Score with the two traced fixes · Corrections band
The short version
- The score: 53 out of 100, in the Corrections band. The Physician Wealth Equation earns the full 6 of 6 and the Decision Filter the full 6 of 6, while the Protection Stack earns 10 of 22.
- Saving flows of $4,750 a month run at over 20 percent of stated earnings, with both retirement accounts maxed as stated and about $1,000 a month to backdoor Roth IRAs.
- The $133,000 loan sits in a private refinance at 1.95 percent. On the resident path a private loan scores 0 on the loan strategy box, whatever the rate, and the page states that ruling plainly.
- Bruce carries individual cover: own occupation disability with Principal, and term life laddered at $2,000,000 for 30 years plus $1,000,000 for 20 years. No life or disability cover is stated for Barbara, the higher earner.
- Two traced fixes move the score 6 points to a 59: an umbrella policy at partial credit, and estate documents completed now instead of after the move.
Attending level saving, training level paperwork.
What They Did Right
A fellow household with attending habits. This is the machinery already running.
- $200,000 in Roth IRAs during training Combined Roth balances of about $200,000, built while one earner is still a fellow, alongside a $50,000 401k and a $25,000 HSA.
- Saving at over 20 percent of stated earnings $4,750 a month of stated flows on stated earnings of about $215,000 to $228,000. The Wealth Equation and the Savings Floor both earn full marks.
- Itemized to the dollar Fixed expenses of $5,700 and variable expenses of $2,270 itemized against $8,500 of take home pay. Named lanes earn the full 4 of 4.
- A loan plan with a finish date and a bonus The $133,000 refinance at 1.95 percent is set to end in four years, in January 2023, a year early, for a $4,000 early payoff bonus.
- Five goals in priority order Starting a family first, then the loan, travel, and retirement goals behind it. The Decision Filter earns the full 6 of 6.
The Score: 53 out of 100
The Financial Health Assessment grades a household across the same seven frameworks and lands the total in a band. Bruce and Barbara scores 53, in the Corrections band. This household is scored on the resident and fellow rubric path.
19
Measures graded
7
Frameworks
53
Bruce and Barbara's score
The 3 Bucket Framework earns 7 of 26. Milestones earn 0, because the milestone net cannot be determined from what the intake states. The emergency fund earns 0, because the cash amount and its months are not stated. Named lanes earn the full 4: fixed expenses of $5,700 plus variable expenses of $2,270 are itemized against $8,500 of take home pay. Goals funded earns 3, with dollars flowing to loan payoff, travel, and retirement goals that are not fully funded.
The Physician Wealth Equation earns the full 6 of 6: stated saving flows of $4,750 a month run at over 20 percent of stated earnings, which clears the resident full line. Residents are never scored on debt to income.
The Protection Stack earns 10 of 22. Health earns the full 4, with cover in place for the household at $360 a month plus HSA funding. Disability earns 2: an individual own occupation policy on Bruce, and no disability cover stated for Barbara, the second earner. Life earns the full 4 on Bruce's laddered individual term. Umbrella earns 0, absent by the household's own statement. Malpractice earns 0, type and tail not stated. Estate documents earn 0, because none exist.
The Transition framework earns 4 of 10. The loan strategy box earns 0: the student loan is a private refinance, and the resident box scores private loans at zero, despite the 1.95 percent rate and the early payoff plan. Cards and other debt earn the full 4, because the household states no other debt.
The Tax Ladder earns 4 of 8, at 2 and 2: a Roth 401k, a pre tax 403b, and backdoor Roth IRAs used side by side, with the bracket reason not stated, and two deliberate moves, HSA funding and backdoor Roth conversions, with the exact bracket not stated. The Decision Filter earns the full 6 of 6 on five stated goals in priority order.
The Lifestyle Guardrails earn 16 of 22: the Savings Floor at the full 12 on a rate at or above 20 percent, the leak at 0 because the unaccounted amount is not stated as zero, and wealth first automation at the full 4, on maxed payroll contributions plus the monthly backdoor Roth flow.
| Framework | What it covers | Points |
|---|---|---|
| 02 3 Bucket Framework | Milestones 0, emergency fund 0 (amount not stated), named lanes 4, goals funded 3 | 7 of 26 |
| 03 Physician Wealth Equation | Stretch saving 6 on flows at over 20 percent of stated earnings. Residents are not scored on debt to income | 6 of 6 |
| 04 Protection Stack | Health 4, disability 2, life 4, umbrella 0, malpractice 0, estate documents 0 | 10 of 22 |
| 05 Transition | Loan strategy 0, private refinance. Cards and other debt 4, no other debt stated | 4 of 10 |
| 06 Tax Ladder | Roth against pre tax 2, bracket plus moves 2 | 4 of 8 |
| 07 Decision Filter | Goals written 6, five goals stated in priority order | 6 of 6 |
| 08 Lifestyle Guardrails | Savings floor 12 at over 20 percent of stated earnings, the leak 0, wealth first automation 4 | 16 of 22 |
| Total | Corrections band | 53 out of 100 |
Read the shape, not just the total. Saving is at full marks: the Wealth Equation, the Savings Floor, and automation. The gaps are a Protection Stack at 10 of 22 with the paperwork boxes at zero, a loan strategy box that the rubric scores at zero for a private loan, at any rate, and an emergency fund, milestones, and leak the record does not state. The household saves like an attending household and is documented like a training one.
The Prescription
Two traced fixes, and the open items behind them.
- Complete the estate documents now, instead of after the move. This is the Protection Stack, and it gains 4 points, moving estate documents from 0 to 4. A will, a power of attorney, and a healthcare directive, written now rather than deferred until fellowship ends and a state is chosen. There are no minors in this household yet, so the set is the adult set.
- Obtain umbrella insurance. This is the Protection Stack, and it gains 2 points, moving umbrella from 0 to 2. The amount was not specified on air, so the traced gain is partial credit only.
- Put cover in place for Barbara. She earns $130,000 plus a bonus and stock plan sales, and no disability or life cover is stated for her. No point gain is traced for this item in the record's target. It is the file's largest stated gap after the two traced fixes.
- State the emergency fund. The cash amount and its months are not stated anywhere in the record, and the box earns 0 for that reason alone. Stating the figure is the first step. Funding it to a stated target is the second. No point gain is traced for this item.
Run both traced fixes and the arithmetic is 53 plus 6, a score of 59. The gains are 4 for completing estate documents now and 2 for umbrella insurance at partial credit. A score of 59 out of 100 keeps the household in the Corrections band.
What This Case Teaches
A great rate does not change the kind of loan. The household refinanced $133,000 at 1.95 percent and set a four year finish with a bonus at the end. The resident rubric still scores a private loan at zero, because the federal options are gone. Both facts belong on the page, and this case keeps them side by side.
Save like an attending. Document like one too.
The second lesson is sequencing. This household maxed accounts, funded backdoor Roth IRAs, then deferred the two cheapest items in the file: an umbrella policy and a set of estate documents. Deferred, the two items cost 6 traced points.
Behind the score
The Household
Bruce is a critical care fellow graduating in summer 2021, earning about $70,000. Barbara is a software engineer earning $130,000 a year, plus a 10 percent annual bonus and employee stock plan sales every six months averaging $15,000. Take home pay is stated at $8,500 a month, including the stock plan sales. The household has no children yet, and starting a family is goal one.
The balances are ahead of the training calendar. Roth IRAs hold about $200,000 combined. The 401k holds $50,000, the stock plan account $50,000, and the HSA $25,000. The stated allocation runs 40 percent large stock, 30 percent mid and small stock, 10 percent international, 10 percent real estate funds, and 10 percent bonds. The amount of cash and the size of the emergency fund are not stated.
Itemized to the dollar. The paperwork is sorted on one side of the household only.
The monthly system is itemized to the dollar. Fixed expenses run $5,700 and variable expenses $2,270, sorted against the $8,500 of take home pay. Saving flows run $4,750 a month: $3,250 to the 401k and 403b, $500 to the HSA and FSA, and about $1,000 to backdoor Roth IRAs.
The one debt is the student loan: $133,000 refinanced privately with First Republic at 1.95 percent, a five year term, a payment of $3,285 a month, and a plan to finish in four years, by January 2023, for a $4,000 early payoff bonus. The household states no other debt of any kind.
Protection is half built, and the built half is all on one side. Bruce holds an own occupation disability policy with Principal at $1,586 a year, and individual term life of $2,000,000 for 30 years plus $1,000,000 for 20 years at $1,820 a year. No disability or life cover is stated for Barbara. The household states it has no umbrella policy. Malpractice type and tail are not stated. There are no estate documents. The household has deferred them until fellowship ends and a state is chosen.
| Household fact | Where it stands |
|---|---|
| Careers | Critical care fellow graduating summer 2021. Software engineer |
| Household income | About $70,000 plus $130,000, a 10 percent bonus, and stock plan sales averaging $15,000 a cycle. Take home $8,500 a month as stated |
| Family | Couple, no children yet. Starting a family is goal one |
| Student loans | $133,000 private refinance at 1.95 percent, $3,285 a month, four year payoff plan to January 2023 with a $4,000 early payoff bonus |
| Other debt | None, stated |
| Emergency fund | Cash amount and months not stated |
| Saving | $4,750 a month stated: $3,250 to 401k and 403b, $500 to HSA and FSA, about $1,000 to backdoor Roth IRAs |
| Balances | Roth IRAs about $200,000. 401k $50,000. Stock plan account $50,000. HSA $25,000 |
| Disability | Own occupation policy for Bruce with Principal, $1,586 a year. None stated for Barbara |
| Life insurance | Term on Bruce only as stated: $2,000,000 for 30 years plus $1,000,000 for 20 years, $1,820 a year. None stated for Barbara |
| Umbrella | None, stated: the household does not have it |
| Estate documents | None. Deferred until fellowship ends and a state is chosen |
| Goals | Five stated goals in priority order, starting a family first |
The Two Frameworks Behind the Score
The score grades 19 measures across seven frameworks. Two of them carry this case: the Lifestyle Guardrails, which score 16 of 22 on the strength of the flows, and the Protection Stack, which scores 10 of 22 because the cover is built on one earner and the paperwork is missing.
Framework one
The Lifestyle Guardrails
The Guardrails grade whether today's lifestyle leaves room for the plan: the savings floor, the leak, and whether wealth is paid first. On stated flows of $4,750 a month, this household pays wealth first at an attending pace.
- The savings floor Built
- Stated flows run at over 20 percent of stated earnings of about $215,000 to $228,000. The box earns the full 12 of 12.
- Wealth first automation Built
- Maxed payroll retirement contributions plus a monthly backdoor Roth flow run off the top. The box earns the full 4.
- The leak Missing
- Expenses are itemized to the dollar, and the unaccounted amount is still never stated as zero, so the box earns 0 of 6.
Framework two
The Protection Stack
The Protection Stack grades the coverage that keeps one bad month from ending the plan. Here the income cover is real and one sided, and the liability and document layers do not exist yet: 10 of 22.
- Disability and life, on one earner Partial
- Bruce holds own occupation disability and laddered term life of $2,000,000 plus $1,000,000. No cover of either kind is stated for Barbara. Disability earns 2 of 4. Life earns the full 4.
- Umbrella Missing
- Absent, by the household's own statement. The box earns 0 of 4.
- Estate documents Missing
- No documents exist. The household deferred them until fellowship ends and a state is chosen. The box earns 0 of 4.
The 1.95 Percent Loan That Scores Zero
The first close look is the ruling this page has to state plainly. The student loan is $133,000, refinanced privately at 1.95 percent, with a $3,285 monthly payment and a plan to finish a year early for a $4,000 bonus.
The resident loan strategy box still scores it 0. The locked rubric scores private loans at zero on the resident path, because a private loan gives up the federal options, whatever its rate. The extraction record flags the same point: the rate and the payoff plan are strong, and the box is zero under the locked text. This page reports the ruling as written and does not adjust it.
The rubric grades the kind of loan, not the rate on it.
What the score does credit sits next door. Cards and other debt earn the full 4, because the household states no other debt at all. The Transition framework earns 4 of 10, and the whole 6 point gap to full marks is the one box.
The practical reading is narrower than the ruling. The household chose a rate of 1.95 percent and a four year finish, with a bonus for finishing early. Those facts stand on the page next to the zero, and a reader can weigh both.
Protection Built on One Side of the Household
The second close look is the shape of the Protection Stack. Bruce's side is built: an own occupation disability policy with Principal at $1,586 a year, and term life laddered at $2,000,000 over 30 years and $1,000,000 over 20 years, at $1,820 a year. Health cover is in place for the household, at $360 a month plus HSA and FSA funding.
Barbara's side states nothing. She is the higher earner, at $130,000 plus a bonus and stock plan sales, and no disability policy and no life policy is stated for her. The disability box earns 2 of 4 for exactly that split: individual cover on one earner, none stated on the other.
The higher earner's income is the one with no cover stated behind it.
The two empty boxes are the cheap ones. Umbrella cover is absent by the household's own statement, and there are no estate documents. The household's reason for the documents is timing: fellowship ends, a state gets chosen, then the paperwork follows. The score grades what exists today, and today the answer is none.
Goal one makes the timing matter more, not less. The household plans to start a family. Documents written now, before a move and before a child, are the version the prescription prices.
Milestones: Scored on What Is Stated
Inside the 3 Bucket Framework, the milestone checklist tracks the markers a training household has already hit. This checklist earns 0 for Bruce and Barbara, because the intake never states a milestone list the net can be computed from. The box pays only for stated milestones.
The rest of the bucket picture: the emergency fund earns 0 because its amount is not stated, named lanes earn the full 4 on the itemized sorting, and goals funded earns 3 of 6 on flows that reach the loan, travel, and retirement goals without fully funding them. The framework earns 7 of 26.
Questions this case answers
What score did Bruce and Barbara receive on the Financial Health Assessment?
Bruce and Barbara scored 53 out of 100, in the Corrections band. The Physician Wealth Equation earns the full 6 of 6 and the Lifestyle Guardrails 16 of 22, while the Protection Stack earns 10 of 22.
Why does a 1.95 percent student loan score zero?
The loan is a private refinance, and the resident loan strategy box scores private loans at zero under the locked rubric, whatever the rate. The household plans to finish the $133,000 loan in four years, by January 2023, for a $4,000 early payoff bonus.
What protection is missing for Bruce and Barbara?
The household states it has no umbrella policy, and there are no estate documents. No disability or life cover is stated for Barbara, the higher earner. Bruce holds own occupation disability and laddered term life of $2,000,000 plus $1,000,000.
What do the fixes do to Bruce and Barbara's score?
Run both and the arithmetic is 53 plus 6, a score of 59. The gains are 4 for completing estate documents now and 2 for umbrella insurance at partial credit. A score of 59 out of 100 keeps the household in the Corrections band.
Sources and Basis
This assessment is built from the household's own intake for the Financial Health Assessment and the episode assessment of it. Every figure on this page comes from that record, and the score is traced box by box under the locked resident and fellow rubric.
The resident and fellow rubric weights the seven frameworks at 26, 6, 22, 10, 8, 6, and 22, for a total of 100. The bands are Needs a workup from 0 to 39, Corrections from 40 to 69, Stable from 70 to 84, and Healthy from 85 to 100. Residents and fellows are scored on the Transition fork: the loan strategy, and the state of cards and other debt.