300k in loans or invest?

[wagrxm2000]

For some, going to school and ending with 300k in loans may not be worth it. If you instead invested $833 every month (10k per year) starting at age 18 for 30 years it will be worth anywhere from 1.6 to 4.5 million in 47 years (retirement at 65) depending on 5 to 8% annual rate of return. This is obviously simple math.

For some, like myself, it wouldn't make sense seeing as I enjoy my job and will end up investing way more then 10k a year. For everyone else that hates their job this might have made sense.

Obviously you would have to find a different job to support your lifestyle so it would come down to what matters most, money and a certain lifestyle or not being stressed at work everyday. Heck McDonald's will pay you $15 an hour, you and your significant other could make a combined $60k a year.

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[TheBlaah]

Are you accounting for inflation over 47 years? 2 million is probably 1/4 its original value after that much time.

 

[wagrxm2000]

Are you accounting for inflation over 47 years? 2 million is probably 1/4 its original value after that much time.

Obviously when investing you should raise your amount at a minimum of at inflation. However, that amount would be in today's dollar.

The main focus though was how much you are losing by taking these loans for a job that it appears a lot of people here hate.

 

[confettiflyer]

How does an 18 year old HS graduate come up with $10k a year, after feeding/clothing/housing themselves?


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[wagrxm2000]

How does an 18 year old HS graduate come up with $10k a year, after feeding/clothing/housing themselves?


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Look up young adults living at home. Some show as high as 30%. So there are no expenses. Also the government takes care of these people for some reason.

My point though is to show how much is lost. There are plenty of other cheaper options to get an education or blue collar jobs.

 

[confettiflyer]

Look up young adults living at home. Some show as high as 30%. So there are no expenses. Also the government takes care of these people for some reason.

My point though is to show how much is lost. There are plenty of other cheaper options to get an education or blue collar jobs.

Mooching is always an option in life. I mean, one can always mooch, live rent free, wait for parents to die, and inherit the house when you're in your 60's. Work full time at McDonald's and bank the $21k/yr (CA minimum wage $10.50/hr)...

Kinda hard attracting women with a McDonald's uniform and your old high school bedroom as backdrop, though.


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[wagrxm2000]

Mooching is always an option in life. I mean, one can always mooch, live rent free, wait for parents to die, and inherit the house when you're in your 60's. Work full time at McDonald's and bank the $21k/yr (CA minimum wage $10.50/hr)...

Kinda hard attracting women with a McDonald's uniform and your old high school bedroom as backdrop, though.


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What's wrong with being a painter, welder, construction worker, etc.

Again I'm just showing the amount lost by pursing a career with high loans and many people here hating their jobs.

 

[Mad Jack]

For some, going to school and ending with 300k in loans may not be worth it. If you instead invested $833 every month (10k per year) starting at age 18 for 30 years it will be worth anywhere from 1.6 to 4.5 million in 47 years (retirement at 65) depending on 5 to 8% annual rate of return. This is obviously simple math.

For some, like myself, it wouldn't make sense seeing as I enjoy my job and will end up investing way more then 10k a year. For everyone else that hates their job this might have made sense.

Obviously you would have to find a different job to support your lifestyle so it would come down to what matters most, money and a certain lifestyle or not being stressed at work everyday. Heck McDonald's will pay you $15 an hour, you and your significant other could make a combined $60k a year.

Anyone spending 300k on a pharmacy education is an idiot- the ROI is just too low and the job market is too poor.

 

[Sine Cura]

You would also have to be an idiot also to go into pharmacy for lifestyle reasons. For every cushy desk job with banker's hours there are a hundred chain retail jobs. Then if you have 300k in debt enjoy your $5k monthly installments if you can even get your take-home pay above $6k.

 

[PharmtoCS]

This thread pretty much sums up why I keep trying to push pre-pharms into other careers such as computer programming and finance instead of taking out $200k+ in loans to go into the health professions.

 

[lane one]

Pretty sure if you graduate pharmacy school at 25 with 150k or so in loans, pay them on a 10 year plan and contribute 10% income (5% match) you're gonna come out way ahead of your mcdonald's employees. Especially if you begin contributing more at 35 after you pay those loans off. Either strategy just depends on how dedicated you are to not balling out and saving money.

 

[samuricool]

Mooching is always an option in life. I mean, one can always mooch, live rent free, wait for parents to die, and inherit the house when you're in your 60's. Work full time at McDonald's and bank the $21k/yr (CA minimum wage $10.50/hr)...

Kinda hard attracting women with a McDonald's uniform and your old high school bedroom as backdrop, though.


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Mooching is also using PSLF, in my opinion.


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[wagrxm2000]

Pretty sure if you graduate pharmacy school at 25 with 150k or so in loans, pay them on a 10 year plan and contribute 10% income (5% match) you're gonna come out way ahead of your mcdonald's employees. Especially if you begin contributing more at 35 after you pay those loans off. Either strategy just depends on how dedicated you are to not balling out and saving money.

Does your opinion stay the same at 300k and you have to work in an area over an hour away from a major city or if you had to float? Also please remember its impossible to know what pharmacy will be like in 6 years.

 

[lane one]

Does your opinion stay the same at 300k and you have to work in an area over an hour away from a major city or if you had to float? Also please remember its impossible to know what pharmacy will be like in 6 years.

Yes it stays the same. Look, I get your math but having a higher income allows you more flexibility. Life is full of unforseen expenses and you're gonna be better off with a high income, even if you have to accrue significant debt to get there. Not arguing that pharmacy is the best income/debt ratio by any means, but the more skills you acquire the more financial security you'll have.

In response to your 6 year outlook point, burger flippers will be replaced by robots way before people with doctorate level education.

 

[wagrxm2000]

Yes it stays the same. Look, I get your math but having a higher income allows you more flexibility. Life is full of unforseen expenses and you're gonna be better off with a high income, even if you have to accrue significant debt to get there. Not arguing that pharmacy is the best income/debt ratio by any means, but the more skills you acquire the more financial security you'll have.

In response to your 6 year outlook point, burger flippers will be replaced by robots way before people with doctorate level education.

What about unemployment 6 years from now?

It's going to get bad in the future. I had a staff go on vacation and was checking out the floaters. None were getting more then 4 shifts per week. We're talking 3 to 4 shifts, 20 to 40% less then your typical paycheck and they have to travel. If you want a horrible working life, this is going to be bad in 6 years.

That 300k is going to look even better being invested 6 years from now and doing something you enjoy more.

I'm just glad I have my store in a nice area.

 

[McPharmd]

For some, going to school and ending with 300k in loans may not be worth it. If you instead invested $833 every month (10k per year) starting at age 18 for 30 years it will be worth anywhere from 1.6 to 4.5 million in 47 years (retirement at 65) depending on 5 to 8% annual rate of return. This is obviously simple math.

For some, like myself, it wouldn't make sense seeing as I enjoy my job and will end up investing way more then 10k a year. For everyone else that hates their job this might have made sense.

Obviously you would have to find a different job to support your lifestyle so it would come down to what matters most, money and a certain lifestyle or not being stressed at work everyday. Heck McDonald's will pay you $15 an hour, you and your significant other could make a combined $60k a year.

Too bad people care about impressing their family/friends more than making smart financial decisions.

The guy who went to USC pharmacy school will get a lot more praise and respect from family/friends than the guy who went to a state school and majored in accounting/computer science even though the later will come out on top financially, live a better lifestyle, and have more options on places to live.

 

[confettiflyer]

What's wrong with being a painter, welder, construction worker, etc.

Again I'm just showing the amount lost by pursing a career with high loans and many people here hating their jobs.

I'm not built for labor, I pull muscles putting on shoes.


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[ldiot]

You realize that the average 401k balance for Americans at age 65 is 100k... I agree with the general point you are making but the average person is ignorant when it comes to the value of investing let alone the value of saving and on top of that is illiterate in general finance. I just don't see many people with discipline when it comes to budgeting/saving.

Though I agree you have to be out of your mind to blow 300k when you can get the same degree for 100k or even less. Then again we have people in this country 6 figures in debt with degrees in history/art/etc so it doesn't even surprise me.

Take 100k in loans, pay it off in 3 years and max 401k, max Roth IRA, and throw the extra into more stocks!

 

[lane one]

What about unemployment 6 years from now?

It's going to get bad in the future. I had a staff go on vacation and was checking out the floaters. None were getting more then 4 shifts per week. We're talking 3 to 4 shifts, 20 to 40% less then your typical paycheck and they have to travel. If you want a horrible working life, this is going to be bad in 6 years.

That 300k is going to look even better being invested 6 years from now and doing something you enjoy more.

I'm just glad I have my store in a nice area.

Yeah that's one of the reasons I left retail. Unless you're an accomplished RXM (like yourself), then you're dispensable. Those floaters are probably getting screwed over because they're the bottom of the barrel. I don't consider myself a "dispensable" pharmacist so I'm too worried about the future job market.