Forum Replies Created
Do solar farms make any respectable ROI? Probably not the same appeal as seeing a whole load of fruitful crops. I’m more just curious.
What’s more important to you? Crushing the debt or getting a 5-6% return after taxes by passively investing?Click to expand…
Where do you get that kind of return guaranteed?Click to expand…
You’re right. I should have said possible average yearly return of 5-6%. The paying off debt was the only guaranteed return.
I guess my question is, would you all be putting everything you had into paying down such a large amount of debt? Should I refinance for a shorter payment period/rate? Is my current rate of 4.9% low enough that I should just focus on saving and/or investing my cash in other ventures? Hope this makes some sense, any help/advice appreciated. Thanks!Click to expand…
I would try to pay down that debt as quick as possible. A guaranteed 4.9% return isn’t too shabby. Additionally, there is the psychological benefit of paying down loans and being free of debt. I think that gets discredited a little too often for the sake of the slightly higher financial return you can get by otherwise investing instead of making bigger debt payments.
As Lordosis said, you don’t really need to refinance, but I don’t think it usually costs much to refinance student debt. I haven’t done it myself, so I only have blog posts to go off of.
What’s more important to you? Crushing the debt or getting a 5-6% return after taxes by passively investing?
I did not read every post, but I did see the WCI post about getting your spouse on board. I figured I would drop the MMM one here as well. Good luck, I’m rooting for you both.Click to expand…
I hate to be a wet blanket, but didn’t the MMMs’ divorce?Click to expand…
Quoted From MMM’s blog:
Update:Some of the negative speculators have assumed “your wife dumped you because you were too frugal.” This part may be necessary to address because of the money theme of this blog.
The answer is NO. I was the one who asked for the separation so you can blame me for it. And no, there were no frugality issues because earning and accumulating money was always extremely easy for us. We spent whatever we wanted, we just happened to have finite desires. Plus I was not the “boss” of the house. Mrs. MM has always been an independent-minded person who is good with money and decides on her own spending.Click to expand…
Well, I was not aware of all this. Thank you all for educating me on potential biases and weaknesses of my sources.
I did not read every post, but I did see the WCI post about getting your spouse on board. I figured I would drop the MMM one here as well. Good luck, I’m rooting for you both.
I don’t know your entire situation and choosing disability insurance and riders is pretty situational I think. I found this article that might help you though.
So your combined income will be ~$700k and your combined student debt will be ~$650k.
You would need 8 more years at a qualifying company and need to go through all the hassle associated with keeping all your records to qualify for PSLF. Have you run the numbers on the student loan calculators on how much would be forgiven? If I was going to have a 1:1 debt:income or better, I would likely just refinance and get it done. I think it frees you up both mentally and financially sooner. When I ran my numbers on loans, I would have paid my loans off just one year shy of loan forgiveness.
I believe you have the means to pay it off quicker than PSLF would allow. What actually makes sense for you and your future wife given your other goals?June 7, 2019 at 3:40 pm MST in reply to: Huge Student Loan Debt with High Income Spouse-HELP! #219997
In your situation, you likely do not need a buyer’s broker. However, just be sure that you didn’t sign anything with your broker saying that you would use them for buying a home with a term of x amount of months. There are some brokers who have you sign an agreement like that prior to or after showing a couple of houses.
I agree with the folks who say to refinance and pay it off. Your student debt:income ratio will be less than 1:1 once you’re married. I am assuming that your partner has no debt because you didn’t say anything about it above. From the various blog posts I have read, the gross amount of loans matters less than your debt:income ratio in terms of how long it will take to pay off.
As far was when to refinance, I would stay with whatever payment plan you currently have until getting married and then refi at that point.June 7, 2019 at 3:12 am MST in reply to: Huge Student Loan Debt with High Income Spouse-HELP! #219800
Here is a short article from https://www.biggerpockets.com/ about REOs. I would suggest reading more on BiggerPockets if you are going to delve further into real estate.
As with any partnership, don’t be afraid to ask them to give examples of their track record (i.e. pictures and numbers from previous flips in this case). I hope this helps!June 4, 2019 at 12:13 pm MST in reply to: Bank owned properties (REO) purchase and resale tips #219245Liked by tintin
I think that the possible small benefits of daily or even weekly TLH are overshadowed by the fact that you’ll have to sit down every day and go through the motions of doing that. I also think you’ll kind of run out of acceptable alternative funds that are similar but not the same fund. You wouldn’t want to throw off your stock/bond mix you have for yourself just because you were tax loss harvesting all the time.
I would say do your rebalancing every 6 months at the same time, and do TLH if the market takes a big hit. It’s ok for investing to be boring.June 4, 2019 at 3:02 am MST in reply to: is tax loss harvesting worth more than a very diverse portfolio? #219111Liked by FCP
As a rising MS4, I just wanted to say congrats on paying off that private loan and getting a game plan together for the loans you still have! It is very encouraging to see someone a year ahead having success tackling the mountain of loans. I’m also impressed by your living expenses that you shared. Good luck during you intern year!May 30, 2019 at 6:27 pm MST in reply to: Incoming EM Intern married to lawyer, is my strategy appropriate? #218243
Do you deposit cash often? I wonder if it is even worth it for you to have a brick and mortar bank. Ally has always been good for all of my needs and has never charged me any fees.
@wonka31 I think starting salary for an OT is right around what a resident makes, but the upper end of their income potential is under $100k. OT school isn’t as good a financial deal as becoming a doctor, but life isn’t all about money.
@anne and @cordmcnally I’m not shocked by your responses, and I agree that the point of PSLF isn’t to make up for poor financial choices. Also, you make good points about stipulations regarding how student loan money is legally allowed to be used. So I’ll do the balance transfer idea because 12 months should be plenty of time for her to throw her income at that debt emergency. If we take the credit card debt out of the equation, do you two think I am wrong for utilizing PSLF to pay off my personal student loan debt? I agree docs make higher incomes than most of the target audience for the program, but I think the education is also more expensive and lengthier than some of those other professions.
@peds Good question. I flipped a house with my family last year which made me enough for a down payment (+ rehab costs) on a house in my area. My mother was nice enough to help me out as a cosigner for the loan. As soon as I can, I’ll refinance so that she isn’t on the hook for anything.
@zzz I have already started teaching her about personal finance through Mr. Money Mustache and WCI. She comes from a family that wasn’t exactly transparent about money and there was a lot of anxiety about it growing up.
I appreciate the input so far, thanks everyone!
Welcome to the forum LLB,
I am currently an M2 in Virginia, and I agree with the sentiments about choosing the cheapest and best school for you. I think choosing MD over DO if you have the choice is a good one. I don’t have the bias of one being better than the other, but I know residencies occasionally do. I paid a $1500 deposit to the first DO school that accepted me, and I ended up at an MD school after I got that call. There were other factors at play as well for me.
I think your house hacking idea is actually a good one. My friend is actually doing that right now to cut back on the cost of housing. He bought a 3 or 4 bed with 2 baths with the help of his parents for cosigning the loan, and now he essentially lives in a home for free. I definitely would recommend finding other med students to live with you because they understand that quiet study time is important, and they understand your joint struggle. Additionally, thinking a little longer term, if you get multiple years within the house at some point, you could just have a student rental if you decide to leave the area for residency. It is possible that I have been spending too much time on BiggerPockets lately though and the docs on here may not agree with me.
Alternatively with that money, you could mostly keep yourself out of debt for a year. Unsubsidized Stafford loans are now at 6% and Grad Plus are up to 7%, I am thinking that they will continue to go up next year. It may be worth it to use at least some of that money to keep your loan burden low during one of your school years. I know there is a lot of stress over debt, especially when we have no ability to begin to pay it off, but you’ll be ok. You are in the right place for advice, and you are developing an excellent financial mindset moving forward.
Congrats on getting accepted, and I look forward to seeing how your journey goes!