How much student loan you got? how much is too much??

[Adsum]

I knocked out 220k in loans and squirreled away 100k for retirement in 3.5 years by following the “middle path”.

1. Live below your means.

2. Max out 401k for free money in the form of contributions and income tax savings.

3. Max out backdoor Roth for tax savings.

4. Put the rest towards loans (think of them as bonds with a guaranteed 3-6% return).

With this approach you get the best of both worlds.

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[gwarm01]

I knocked out 220k in loans and squirreled away 100k for retirement in 3.5 years by following the “middle path”.

1. Live below your means.

2. Max out 401k for free money in the form of contributions and income tax savings.

3. Max out backdoor Roth for tax savings.

4. Put the rest towards loans (think of them as bonds with a guaranteed 3-6% return).

With this approach you get the best of both worlds.

This is the path! I'm acting similarly. I didn't go out and buy a new BMW and giant house in the suburbs. I live below my means, max my retirement, and am on an income based repayment plan for my loans. They will be forgiven in five years, and if that goes away I'll have them paid off in about another year anyway. I live very comfortably and am setting myself up for an early retirement.

 

[Sugoi Travis]

148k after capitalization last November. Currently at 128k. Should have them paid off in 2 years.

 

[PharmacistFl12]

What the hell. You skip contributing to a 401k but you bought a brand new car????

My God what are they teaching you.


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The car was my reward for 4 years of hard work in Pharmacy school. It was a mistake because I did not know about Dave Ramsey teaching after I graduated. Ended racking $20,000 in credit card debts and brand new car and house. Fortunately, mortgage is only $864 monthly.

 

[gwarm01]

The car was my reward for 4 years of hard work in Pharmacy school. It was a mistake because I did not know about Dave Ramsey teaching after I graduated. Ended racking $20,000 in credit card debts and brand new car and house. Fortunately, mortgage is only $864 monthly.

Dave Ramsey is baby's first financial class. Someone with your earning potential shouldn't be following his method. You can do better.

 

[PharmacistFl12]

Dave Ramsey is baby's first financial class. Someone with your earning potential shouldn't be following his method. You can do better.

Ironically, if you follow his show you'll see that most of his followers and guests are successful professionals such as Lawyers, Pharmacist, Doctors, Dentist, CPAs and other high income earners. It sounds like baby classes but it is really the most advanced financial course you will have in your life. People who are not highly educated or poor or reckless with their money will never want to hear his teachings because it goes against the popular American consumerism mindset.

 

[gwarm01]

Ironically, if you follow his show you'll see that most of his followers and guests are successful professionals such as Lawyers, Pharmacist, Doctors, Dentist, CPAs and other high income earners. It sounds like baby classes but it is really the most advanced financial course you will have in your life. People who are not highly educated or poor or reckless with their money will never want to hear his teachings because it goes against the popular American consumerism mindset.

Doesn't he recommend paying off smaller loans over those with higher interest rate because it makes you feel like you are making more progress?

 

[Prepharm1214]

"Most advanced financial course you'll ever have in your life"...you have to be kidding me. I'm not saying it's good general advice for the average American but it's definitely not advanced or the best financial blueprint.

There's several issues with his plan which have already been highlighted - skipping 401k early in career, paying down smaller loans rather than high interest ones for the 'snowball' effects or feel good aspect. For being in a professional career your finances need to be run like a business not chasing a feel good illogical repayment plan that worries about 'getting side tracked' or overwhelmed. Payoff the highest interest rate loans first, take your free 401k match money. These are nobrainers where the math is very obvious which path to take, don't blindly follow someone's advice because they've published a book or have a talk show. His plan may very well work out for you, but it's definitely not the best approach long term.

 

[OmiPharmD]

Missing two years in retirement isn’t the end of the world. He will be fine if he plays through.

Dave Ramsey’s plan works if you follow it. His plan addresses the root cause of most financial problems: behaviors. Disagree if you like, but his plan has gotten more people out of debt and probably made more millionaires than anyone’s else.

Last week I heard a Dave Ramsey episode on Stitcher (Is Financing a Car at 0% Interest a Good Deal? Hour 3) - a mom called in asking how to pay for her kid's pharmacy school tuition at the end of the hour.

Dave said pharmacists were being snapped up as soon as they graduate and mom should check with Wags, CVS, hospitals because they might give you money if you agree to work there after graduation.

In Tennessee. How many pharmacy schools do they have now?! Just no...

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[johnpharm01]

Dave Ramsey has some good advice and a lot of it is common sense. Should I use this maxed out credit card to buy a starbucks? But I would not take it wholesale, I would analyze it first and see if it works. I would have an emergency fund and contribute to a 401k from from the get go even if it just to get the employer matching contribution. The fact that you have to contribute so much of your net income to your college education is a bad sign. Like I said earlier what if you had no debt and instead of contributing madly to an investment portfolio?

 

[confettiflyer]

Use your brain. I’ll admit, Suze Orman was my “baby financial literacy class” and as annoying as she is, most of her lessons carry forward to my professional years - she has a better philosophy on snowball paying of debt, 401k matches, and emergency funds.

But neither of them can provide the high level tax advice or estate planning that professionals making >$150k-$200k a year require, nor can their advice fully scale up when you eventually marry another professional and start having AGI’s of >$400k or more.

Debt is just a tool, not some devil for a fire and brimstone preacher to rail against. Use your brain. That’s all.


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[johnpharm01]

Use your brain. I’ll admit, Suze Orman was my “baby financial literacy class” and as annoying as she is, most of her lessons carry forward to my professional years - she has a better philosophy on snowball paying of debt, 401k matches, and emergency funds.

But neither of them can provide the high level tax advice or estate planning that professionals making >$150k-$200k a year require, nor can their advice fully scale up when you eventually marry another professional and start having AGI’s of >$400k or more.

Debt is just a tool, not some devil for a fire and brimstone preacher to rail against. Use your brain. That’s all.




My ex wife would have liked "that debt is a tool" before she filed for bankruptcy. If it is a tool its akin to fire where a controlled or friendly fire is ok but when it gets out of control its a problem. Most Americans carry way too much debt everything is financed and people are out of touch with any financial reality.

 

[Greeney]

I don't know a single newer RPh (graduating within the last 5 years) with less than 200k in loans upon graduation. I envy those with loans less than 100k.

 

[Schwimmy]

Public Uni probably only cost $80k for the program then not including undergrad, so while I know of people who had up to $150K that was rare. I got something like 85K in scholarship money, so I had about 25K in student loans, BUT:

I took out the max in deferred payment loans (the kind that don't start to accrue interest until after your schooling ends) and invested it in mutuals. Then when I got out and had a job that October they sent me a bill for it and I pulled the money, sent them a big fat check and enjoyed the rest (big tv that got upgraded after a week and an Ashley recliner if I do recall, and a pair of cats).

 

[abrahamdrinkin]

Ironically, if you follow his show you'll see that most of his followers and guests are successful professionals such as Lawyers, Pharmacist, Doctors, Dentist, CPAs and other high income earners. It sounds like baby classes but it is really the most advanced financial course you will have in your life. People who are not highly educated or poor or reckless with their money will never want to hear his teachings because it goes against the popular American consumerism mindset.

Ha! Dave Ramsey is a amazing for people who have no willpower with money, and who want it to be simple. That happens to be a lot of the population and he does good for those people. People who are reckless with money is his target audience.

Advanced it is certainly not.

 

[johnpharm01]

Public Uni probably only cost $80k for the program then not including undergrad, so while I know of people who had up to $150K that was rare. I got something like 85K in scholarship money, so I had about 25K in student loans, BUT:

I took out the max in deferred payment loans (the kind that don't start to accrue interest until after your schooling ends) and invested it in mutuals. Then when I got out and had a job that October they sent me a bill for it and I pulled the money, sent them a big fat check and enjoyed the rest (big tv that got upgraded after a week and an Ashley recliner if I do recall, and a pair of cats).

That is something I wouldn't be posting on a public forum, its probably felony fraud even with loan repayment.

 

[PharmacistFl12]

Doesn't he recommend paying off smaller loans over those with higher interest rate because it makes you feel like you are making more progress?

Yes he does. It sounds stupid right? That's what I thought when I first read his books. I decided to give it a try. I had credit debts for 8 years. It took me 7 months to payoff 4 credit cards using the method of paying off smaller balance first despite higher interest rate. Trust me, I was a pessimist too and thought he was stupid.

 

[PharmacistFl12]

Dave Ramsey teachings are very controversial and not for everybody. He has his followers including me and there are plenty who disagree with his suggestions. All I know is I started reading his books and following his advice 1 year ago and within that time frame managed to payoff all my credit card and auto loan. Now, I'm 2 years away from paying off my student loans completely. Beside from buying my house after the housing market collapse (now double in value), incorporating Dave Ramsey's teaching was the second greatest financial decision I have made. Paying off debts is one of the greatest feeling. Honestly, I feel happier knocking off debts than driving a new BMW or Mercedes.

 

[abrahamdrinkin]

Dave Ramsey teachings are very controversial and not for everybody. He has his followers including me and there are plenty who disagree with his suggestions. All I know is I started reading his books and following his advice 1 year ago and within that time frame managed to payoff all my credit card and auto loan. Now, I'm 2 years away from paying off my student loans completely. Beside from buying my house after the housing market collapse (now double in value), incorporating Dave Ramsey's teaching was the second greatest financial decision I have made. Paying off debts is one of the greatest feeling. Honestly, I feel happier knocking off debts than driving a new BMW or Mercedes.

Right. Dave Ramsey is great for people that do not have willpower with money. His method will work for people who feel like nothing else has worked Bc they need his psychological tricks (like paying down debt smallest amount first).

However, there are many people who don’t have this problme and have never had credit card debt, don’t buy new cars, etc. In these cases, he really has nothing to offer except math that doesn’t produce the greatest return.

 

[emac4rx]

I hear so many people with 100k plus loans, really curious to see the reasoning behind peoples decision to take out that much loans. How much loan is too much?
I graduated from Rutgers 2 years ago as an in state student and had 45K in loans. Did Not think too much of it at first until after started working and realizing the difference between "making" and actually taking home.

I met fellow grads from this other for profit school of pharmacy in my state with 150k plus in loans and I just feel so bad for them having student loans eat up all their take home pay for the next 10 years

 

[Schwimmy]

That is something I wouldn't be posting on a public forum, its probably felony fraud even with loan repayment.

I'd be interested in knowing more. Considering that most of the students I know used the extra money to go on a cruise or moose hunting in Canada while still in school and are still paying it off to this day, I'm really not concerned if they decide to give me an audit.

 

[Modest_anteater]

nope, not worth it. why? because this:

i don't need to say more

17,400/10 = 1,740 new jobs made a year
16,000 new grads graduating a year.
roughly 3,000 pharmacists retiring/dying a year

16,000 - 4,740 = 11,260 new grads unemployed a year

Can someone explain to me how this is not going to end in complete disaster? This is 11,000 students that will never have a pharmacy job each year... in 10 years that is 111,000 unemployed pharmacists...

 

[Modest_anteater]

i'm gonna have to push back on that, full time pharmacists should be happy if they can pay off their loans within 10 years, anything earlier is a bonus.

not everyone only has 100k loans. i know plenty of people with over 200k loans. this forum is not an accurate representation of the typical pharmD student. these kids will rack up TONS of debt, especially if they go to private schools. i personally am at 190k and see to pay that off within 6-7 years preferable.

really, it depends on how much per month are you willing to put into your loans. you can knock down loans within 5 years, but at what cost? you basically live like a piece of chit for 5 years. sounds super fun right? you go to school for 6 years eating ramen box noodles and stealing napkins from restaurants because you're too poor to afford otherwise. then you get a full time 6 figure job but you're still struggling because now all your money is dumped into loans.

don't be an idiot. treat yourself to a good life. have reasonable funds, buy a few stupid stuff here an there, but don't go crazy about it. then put enough money to pay off your loans in 10 years + the extra money that happens to be left over.

i still stand by my original statement: buying stupid stuff here and there is good for your health. do you want to be an uptight chit hole that cannot enjoy their life because they are trying to save every penny? or do you want to be a normal person with a few hobbies that you spend your money on?

I have worked with pharmacists that are in their 60's still paying off their loans. I think having pharmacy school debt is a good thing. It's a hedge against government collapse.

 

[Amphetamine Salts]

17,400/10 = 1,740 new jobs made a year
16,000 new grads graduating a year.
roughly 3,000 pharmacists retiring/dying a year

16,000 - 4,740 = 11,260 new grads unemployed a year

Can someone explain to me how this is not going to end in complete disaster? This is 11,000 students that will never have a pharmacy job each year... in 10 years that is 111,000 unemployed pharmacists...

it is going to end in a complete disaster. which is why you prepare for it by not relying on pharmacy to be your sole income for the next few decades

 

[Momus]

Yes he does. It sounds stupid right? That's what I thought when I first read his books. I decided to give it a try. I had credit debts for 8 years. It took me 7 months to payoff 4 credit cards using the method of paying off smaller balance first despite higher interest rate. Trust me, I was a pessimist too and thought he was stupid.

You are his target audience, someone who can't control their spending and didn't know any better. I haven't had a credit card balance for 16 years.

Dave Ramsey teachings are the bare minimum financial education for someone who doesn't get math, who needs to fix his behavior towards money, it's for everyone who is a simpleton, who can't control his spending well. He has his followers including me and there are many smarter people who disagree with his dumb sh1t.

Fixed. Just follow his teachings man, you might get to go to heaven with 2000 virgins :-D

You know when someone believes in something and nothing you show can change their mind? Like the earth is flat believer? This dude reeks it.

 

[Amphetamine Salts]

just follow the teachings bro, it'll be okay

 

[John Detter]

I went to private school. Took out $180,000. It ballooned to $220,000 after graduation. Currently at $135,000. I'm paying $4,400 monthly towards by loan. Will finish paying off by summer 2020.

Do you live in a box on the street? How are you able to drop $4,400 a month on loans? Do you have a higher than typical salary because you live in a high cost of living area?

 

[HandsomeVampire]

Borrowed 215k, grace period ended, interest rack up to 240k in 2015.
Finally got it into the 5 figures at this point in time. It's been pretty difficult picking up many shifts and missing many holidays, events, family gathering.
Now, I won't be able to pay it off as fast. There are hours cut for everyone and no OT for anyone except for special cases/emergencies.

 

[PharmacistFl12]

Do you live in a box on the street? How are you able to drop $4,400 a month on loans? Do you have a higher than typical salary because you live in a high cost of living area?

I got lucky buying a house during housing market recession, so only paying $864 mortgage. I leave in very low cost no tax state. I also work full time as staff rph.

 

[johnpharm01]

I'd be interested in knowing more. Considering that most of the students I know used the extra money to go on a cruise or moose hunting in Canada while still in school and are still paying it off to this day, I'm really not concerned if they decide to give me an audit.

Well if I understand you correctly:
1. You took out students loans
2. The loans intended purpose to to pay for educational expenses (probably in writing)
3. Instead you invested the money and benefited by interest

Is this accurate?

 

[wagrxm2000]

Do you live in a box on the street? How are you able to drop $4,400 a month on loans? Do you have a higher than typical salary because you live in a high cost of living area?

That's $52800 per year. A person should be able to easily live off $20k. That's what your tech lives off of......

 

[lord999]

That's $52800 per year. A person should be able to easily live off $20k. That's what your tech lives off of......

Not quite easily. At a rate of $9.62/hour for 2080 hours, that's only 200% of the FPL for one, and how many techs do you know who do not have a dependent? That's because of EIC and other concessions given to low-income earners. This is actually the crux of the TANF problem for the actuaries, at what point are you going to actually work rather than just take a check? So, $20k is doable, but not very comfortable, and there's no safety net at that level. Part of the reason we all went to school is that living off of $20k is not a problem that you or I want to have. It's better to worry about personal cardiac arrest or professional manslaughter charges thatnstay poor. There's that problem, and what are you giving up for the remainder? Time becomes more and more of a precious commodity when you realize that you don't get any back.

I mean, we all had our salad (ramen) days, but in retrospect, did you really "save" all that much considering the grief you went through? And, what's the difference between $20k, $40k, $80k, $140k, and $220k marginally? The difference between $140k and $220k is obvious higher on numerical terms, but the purchasing power parity loss is nowhere as bad as the $20k to $40k scenario.

Say what you will about making the real money, we certainly make enough such that it's nice not to have to worry about it *necessarily* and only as an interest. As @wagrxm2000 and the others comment, you do have choices to make that don't have to be extreme. It is a completely different life problem to be necessarily worried about money tradeoffs. It's important to realize what position you really are in, and that being desperate about the matter is something that work against you. Meet your obligations, but only sacrifice for those that you really want as a personal goal (e.g. There was no reason in my case to pay off the mortgage as inflation is greater than my 2.9% interest rate, but I paid it off mainly to say GTH to the bank). Hopefully, you'll have enough work and time to pay off your obligations before the sky falls down like this doom and gloom board keeps on predicting.

 

[wagrxm2000]

Not quite easily. At a rate of $9.62/hour for 2080 hours, that's only 200% of the FPL for one, and how many techs do you know who do not have a dependent? That's because of EIC and other concessions given to low-income earners. This is actually the crux of the TANF problem for the actuaries, at what point are you going to actually work rather than just take a check? So, $20k is doable, but not very comfortable, and there's no safety net at that level. Part of the reason we all went to school is that living off of $20k is not a problem that you or I want to have. It's better to worry about personal cardiac arrest or professional manslaughter charges thatnstay poor. There's that problem, and what are you giving up for the remainder? Time becomes more and more of a precious commodity when you realize that you don't get any back.

I mean, we all had our salad (ramen) days, but in retrospect, did you really "save" all that much considering the grief you went through? And, what's the difference between $20k, $40k, $80k, $140k, and $220k marginally? The difference between $140k and $220k is obvious higher on numerical terms, but the purchasing power parity loss is nowhere as bad as the $20k to $40k scenario.

Say what you will about making the real money, we certainly make enough such that it's nice not to have to worry about it *necessarily* and only as an interest. As @wagrxm2000 and the others comment, you do have choices to make that don't have to be extreme. It is a completely different life problem to be necessarily worried about money tradeoffs. It's important to realize what position you really are in, and that being desperate about the matter is something that work against you. Meet your obligations, but only sacrifice for those that you really want as a personal goal (e.g. There was no reason in my case to pay off the mortgage as inflation is greater than my 2.9% interest rate, but I paid it off mainly to say GTH to the bank). Hopefully, you'll have enough work and time to pay off your obligations before the sky falls down like this doom and gloom board keeps on predicting.

Well of course. It was more of a dig at people saying how can anyone live off $20k when in fact a lot do..... With the help of the government.

I don't think $20k is hard to live off of though. Biggest cost will always be housing which has many options: parents, roommates, or significant other.

Everyone who makes the decision to take that big of a loan will be to face the consequences.

 

[Chriskahn]

I'm no finance expert but cant you technically lose all of your 401k if the economy tanks? Missing out on the employer contributions (free money) sucks but isn't it safer to just save for retirement on your own?

 

[GypsyHummus]

110K/year after taxes is like what, 80K take home? Thats about 6.5k/month roughly. Live off 2K a month in anywhere but Cali or New York, put the remaining 4.5K to debt for 5 years and pay off the 200K+ loan.

Idk where the poster lives, but you can find a 500-600$/month apartment pretty easily in most areas of the country. Add in car, gas, insurance, food, and you can budget out for 2K/month. Its not fancy living, but you wont be "poor".

Do you live in a box on the street? How are you able to drop $4,400 a month on loans? Do you have a higher than typical salary because you live in a high cost of living area?

 

[Momus]

I'm no finance expert but cant you technically lose all of your 401k if the economy tanks? Missing out on the employer contributions (free money) sucks but isn't it safer to just save for retirement on your own?

No.

You contribute $1, the company gives you $1 free. Total $2. 100% return free money from your employer right now. How else do you make 100% return immediately?
Stocks down 30%, your $2 now becomes $1.4 (still a gain of 40% still with 30% down market). Do you lose money?
Stocks down 50%, your $2 now becomes $1. Do you lose money?
Now, ask yourself, do you see stocks are going down soon? Economic collapse soon? Unemployment at all time high?

Investing in stocks mean you know businesses will make profit. If you think businesses will fail, you do not invest. Not investing in stocks means you are betting against businesses. The same thing as saying, your corner CVS/employer doesn't make make any profit, yet somehow can just dole out 140k to you every year... Only a fool bets businesses not making profits in the long run.

MITTX MFS® Massachusetts Investors Trust Class A Fund MITTX chart. Take a look at the chart, it's the longest dated mutual fund. Is the graph going up or down?

You don't lose all your money in 401k even if your company goes bankrupt, the money is held in a separate custodian. It's yours forever even if you quit the company/company gets a nuclear strike and cease to exist tomorrow. At most, you may lose 50% on your principal if world economy go into a deep bear market, but it will go back up and double (generally this happens every 10 years). Again, take a look at the chart.

The benefits on contributing to retirement accounts 401k means you get to save on some tax every year, get free money match from your employer, shelter part of your money from most lawsuits, compound your gain/dividend without paying any tax every year. How is it better to save on your own?

 

[BidingMyTime]

The car was my reward for 4 years of hard work in Pharmacy school. It was a mistake because I did not know about Dave Ramsey teaching after I graduated. Ended racking $20,000 in credit card debts and brand new car and house. Fortunately, mortgage is only $864 monthly.

Some things never change. I remember many of the guys (and gals) in my pharmacy class saying their 1st purchase would be a new car. Which would be fine, since we all needed new cars, but they didn't just want a new car, they all wanted new expensive models to showcase their new wealth. Dumb, dumb, dumb. I was almost 2 years out of pharmacy school before I bought a new car, and it was a moderate model that had been a "program" car. Not that all my financial decisions have been wise, not by a long shot. But the new expensive car, too many people get suckered into that.

Ha! Dave Ramsey is a amazing for people who have no willpower with money, and who want it to be simple. That happens to be a lot of the population and he does good for those people. People who are reckless with money is his target audience.
Advanced it is certainly not.

That has always been the feeling I've gotten from talking/reading posts from people who use Dave Ramsey. His financial advice is far from the best, but it's a lot better than what the people who follow him had been doing previously. So I guess it's a win for those people.

I have worked with pharmacists that are in their 60's still paying off their loans. I think having pharmacy school debt is a good thing. It's a hedge against government collapse.

I have seen that too, sad and scary. In the US as a whole, there are retired people on Medicare who are still paying off their college loans.

That's $52800 per year. A person should be able to easily live off $20k. That's what your tech lives off of......

True....but every tech I work with either 1) has a spouse bringing in the same or more money 2) lives with their parents and pays no rent or 3) has children and gets at least some form of federal subsistance (at the minimum medicaid, I've seen others who've gotten housing assistance, and who even qualified for food stamps! They were all working full time, other than the one who qualified for food stamps.)

I'm no finance expert but cant you technically lose all of your 401k if the economy tanks? Missing out on the employer contributions (free money) sucks but isn't it safer to just save for retirement on your own?

Yes....but inflation will also eat away the value of your money. While the US is probably never going to see hyperinflation like Brazil, where money is almost worthless, saving money in a traditional savings account can leave you with very little to live on when you retire. Statistically, a diversified 401-k is by far the better choice. Even if you don't know anything about diversifying, just picking 3 different funds, one from the stable, moderate, and risky funds that your employer offers, will give you a far better return than just putting your money in a savings account.

 

[confettiflyer]

I'm no finance expert but cant you technically lose all of your 401k if the economy tanks? Missing out on the employer contributions (free money) sucks but isn't it safer to just save for retirement on your own?

If you have a 30-40 year time horizon, then short term losses are irrelevant, especially if you diversify.

The only sure loss is loss of buying power through inflation. If you stick your money in a mattress, you’re guaranteed to lose your buying power. Guaranteed.


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[GypsyHummus]

Unless there is a complete societal collapse like Venezuela.

Then the best hedge against inflation is food.

If you have a 30-40 year time horizon, then short term losses are irrelevant, especially if you diversify.

The only sure loss is loss of buying power through inflation. If you stick your money in a mattress, you’re guaranteed to lose your buying power. Guaranteed.


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[Momus]

Yes....but inflation will also eat away the value of your money. While the US is probably never going to see hyperinflation like Brazil, where money is almost worthless, saving money in a traditional savings account can leave you with very little to live on when you retire. Statistically, a diversified 401-k is by far the better choice. Even if you don't know anything about diversifying, just picking 3 different funds, one from the stable, moderate, and risky funds that your employer offers, will give you a far better return than just putting your money in a savings account.

This is not the way to build a portfolio choosing 3 funds with different purposes at once: stable, moderate, risky funds but this is an entirely different topic. If you invest in stable funds (which invest in short term government bonds), you aren't making anything above inflation, basically it's the same as checking/savings account but at least you still get the free money match from your employer (which you can't beat getting 100% return immediately). There are also overlap issues combining such funds stable + moderate + risky funds.

Some examples of well built portfolio:
Invest Simple with Lazy Portfolios - MarketWatch.com
Lazy portfolios - Bogleheads
150 Portfolios Better Than Yours | The White Coat Investor - Investing And Personal Finance for Doctors

Just pick one and stick to it. You might not get all the options in 401k but you can get close to it.

 

[wagrxm2000]

Everyone knows the best way to invest is in individual stocks.

Do you see what FAANNMG has done?

 

[confettiflyer]

Everyone knows the best way to invest is in individual stocks.

Especially ones that end in Q! hahah


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[spacecowgirl]

Paid 150k off in 10 years. Could have been faster but had competing priorities, none of them being a new car. In fact I just sold my 14 year old car when I got a company vehicle.

I don't think there's a prize for minimal interest paid when you die. We've chosen balanced spending. 401k. 529s, home improvements that we enjoy not for resale, minor vacations. Finances are the least stressful part of my life so I consider that success.

 

[Amphetamine Salts]

whatever you do, do not start investing in stocks or any of that stuff until you pay off your loans asap. why? because unless you can gain at least 5% per year on your investment of these stocks, it's not worth it, you'd be better off paying the loans. because the interest rates on these loans are higher. paying them off with any extra money is guaranteeing you savings. compared to investing in stocks that cannot provide you with enough profit to be worth it.

long story short: pay off loans first, then invest

 

[trailerpark]

I don't know a single newer RPh (graduating within the last 5 years) with less than 200k in loans upon graduation. I envy those with loans less than 100k.

I graduated in 2014 with 185K total debt

 

[Modest_anteater]

I graduated in 2014 with 185K total debt

How much is left? A-a-a-asking for a friend....

 

[Schwimmy]

Well if I understand you correctly:
1. You took out students loans
2. The loans intended purpose to to pay for educational expenses (probably in writing)
3. Instead you invested the money and benefited by interest

Is this accurate?

The first two are, but the third one is dubious. Is the money I invested from student loans? Is it from my 80k in private scholarships? Is it from parental financial assistance? Is it from any of my many part time jobs? Are there even records from that many years ago?

Methinks if a govt agency wanted to waste there time trying to figure it out they'd have better luck randomly investigating a spring-break visitor of South Padre Island this March.

 

[confettiflyer]

whatever you do, do not start investing in stocks or any of that stuff until you pay off your loans asap. why? because unless you can gain at least 5% per year on your investment of these stocks, it's not worth it, you'd be better off paying the loans. because the interest rates on these loans are higher. paying them off with any extra money is guaranteeing you savings. compared to investing in stocks that cannot provide you with enough profit to be worth it.

long story short: pay off loans first, then invest

Again, dumb/extreme advice you shouldn’t follow.

Pay yourself first, then your debtors.

1) 3 month emergency fund
2) 401k/403b up to the match
3) high interest loans
4) low interest loans
5) another 3 months into emergency fund
6) maximize 401k/403b
7) after-tax savings (Brokerage, backdoor Roth)
8) 529’s/other misc tax advantages accounts

And buy low ER total market funds or ETF’s from Vanguard. Don’t take investing advice from SDN (laughs)


Sent from my iPhone using SDN mobile

 

[Momus]

Again, dumb/extreme advice you shouldn’t follow.

Pay yourself first, then your debtors.

1) 3 month emergency fund
2) 401k/403b up to the match
3) high interest loans
4) low interest loans
5) another 3 months into emergency fund
6) maximize 401k/403b
7) after-tax savings (Brokerage, backdoor Roth)
8) 529’s/other misc tax advantages accounts

And buy low ER total market funds or ETF’s from Vanguard. Don’t take investing advice from SDN (laughs)


Sent from my iPhone using SDN mobile

I just rolled my eyes reading stupid advices
-_____-; takes too much effort to educate someone.

 

[Digsbe]

I graduated total with interest and all at 275k. I'm paying income based payments and using extra cash to save up for a home and putting into savings. At this time I'm not aggressively trying to pay them off.