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Investing or paying debt?

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  • Investing or paying debt?

    Hi all, young dentist here, would love advice.

    So I have 2 private loans: 1. ~60K 1.45%, 2. ~200K 3.75%.

    Due to COVID-19, I'm out of work and likely won't receive a paycheck for 3 months. But have living expenses covered until September. My wife will be an attending this September so I can replenish that fund pretty quickly, especially after I start working again. Been aggressively paying ($3K+/month on top of required) off loan #2 (200K, 3.75%). Because of the market, thoughts on slowing down on paying off loans and pouring money into the market for the rest of the year to take advantage of the bear market?

    Any other thoughts would be helpful.


  • #2
    how do you know you will start working in sept?
    make sure you have a 6 mo EFund. then invest. extra to loans is last.


    • #3
      I would probably stockpile cash until you start getting a paycheck again.


      • #4
        If no paycheck, then do not invest.

        If you are absolutely sure you will start getting paid in 3 months, then would be okay to invest. But not sure how you would know that in advance... The crisis can last longer than a few months, there is a lot of uncertainty...

        Definitely don't pay down that cheap debt, especially if you don't have a job and there is no rush.
        Last edited by xraygoggles; 04-01-2020, 05:53 PM.


        • #5
          Defer the loan payments 100%.

          Adding to the market is ballsy. What's your safety net if the wife gets deferred and you don't go back to work?

          From the morbid file, there are going to be some dental practices needing a new doctor to start immediately. If ownership is the goal, the next 3 months may be an excellent time to consider making the leap. Talk to brokers now and let them know if you're looking to purchase.


          • #6
            Neither. Pending further clarity of the job situations.
            Last edited by EntrepreneurMD; 04-01-2020, 08:19 PM.