I paid off my student loans

[Pharmist1720]

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And I feel like a huge idiot for doing so. I graduated 10 years ago and my workplace qualified for PSLF, but at the time didn't know much about it and didn't trust the program. I paid off 175k in 5 years, now paying 5k/month on my wife's student loans we recently refinanced with Sofi so no 0% interest. Add in that most of my younger, recent grad co-workers are doing PSLF, and talk it about it all the time, I am feeling extremely bitter at the moment. Anybody else regretting actually paying your bills with the new developments lately?

 

[confettiflyer]

And I feel like a huge idiot for doing so. I graduated 10 years ago and my workplace qualified for PSLF, but at the time didn't know much about it and didn't trust the program. I paid off 175k in 5 years, now paying 5k/month on my wife's student loans we recently refinanced with Sofi so no 0% interest. Add in that most of my younger, recent grad co-workers are doing PSLF, and talk it about it all the time, I am feeling extremely bitter at the moment. Anybody else regretting actually paying your bills with the new developments lately?

I have the technical capacity to pay all my bills but am taking advantage of all the COVID-19 related reprieves (SBA grant, possible mortgage pause, student loan pause, COVID 19 airline waivers, etc...).

 

[VictorOfHungerGames]

I have the technical capacity to pay all my bills but am taking advantage of all the COVID-19 related reprieves (SBA grant, possible mortgage pause, student loan pause, COVID 19 airline waivers, etc...).

Brah... didn't you know you could do this... SBA grant? what that is?! lol

 

[VictorOfHungerGames]

And I feel like a huge idiot for doing so. I graduated 10 years ago and my workplace qualified for PSLF, but at the time didn't know much about it and didn't trust the program. I paid off 175k in 5 years, now paying 5k/month on my wife's student loans we recently refinanced with Sofi so no 0% interest. Add in that most of my younger, recent grad co-workers are doing PSLF, and talk it about it all the time, I am feeling extremely bitter at the moment. Anybody else regretting actually paying your bills with the new developments lately?

With PAYE plans, I would end up paying about 75% of my actual principal. Not sure about the tax bomb later but based on what I figured, if you have more than $150k, make less than $120k, much better to do PAYE. Why the heck are you and your wife paying 5k a month?! how much does she owe and what does she do?

 

[BMBiology]

With PAYE plans, I would end up paying about 75% of my actual principal. Not sure about the tax bomb later but based on what I figured, if you have more than $150k, make less than $120k, much better to do PAYE. Why the heck are you and your wife paying 5k a month?! how much does she owe and what does she do?

Can you show your calculation? How much is left over after 20 years?

 

[confettiflyer]

Brah... didn't you know you could do this... SBA grant? what that is?! lol

Haha, if you have a side business of any sort (i.e. had 1099 or Schedule C income in 2019, or operated an LLC/Corp with its own entity #), you can apply for a "loan" from the SBA for up to 2.5x your payroll costs (or supposedly 6 months of COGS, I haven't seen that written though).

$10k is advanced to your account in an expedited manner.

The rule is, if you spend the $10k on specific costs (rent/utilities, payroll, etc...) by June 30th, that amount is forgiven (which effectively turns it into a grant). If you don't spend by June 30th, it converts to a loan at like 4% interest over 10 years.

Note: you can't just open a business today and claim it, they'll ask for info (business start date) and ask for your 2019 P/L numbers (revenue and COGS).

COVID-era programs - Small Business Administration

Access information on SBA’s pandemic-era programs. COVID-19 Economic Injury Disaster Loan (COVID-19 EIDL) The COVID-19 EIDL program provided loans and advances to help businesses recover from the economic impacts of the pandemic. Paycheck Protection Program (PPP) This SBA loan program helped...

covid19relief.sba.gov

 

[VictorOfHungerGames]

Haha, if you have a side business of any sort (i.e. had 1099 or Schedule C income in 2019, or operated an LLC/Corp with its own entity #), you can apply for a "loan" from the SBA for up to 2.5x your payroll costs (or supposedly 6 months of COGS, I haven't seen that written though).

$10k is advanced to your account in an expedited manner.

The rule is, if you spend the $10k on specific costs (rent/utilities, payroll, etc...) by June 30th, that amount is forgiven (which effectively turns it into a grant). If you don't spend by June 30th, it converts to a loan at like 4% interest over 10 years.

Note: you can't just open a business today and claim it, they'll ask for info (business start date) and ask for your 2019 P/L numbers (revenue and COGS).

COVID-era programs - Small Business Administration

Access information on SBA’s pandemic-era programs. COVID-19 Economic Injury Disaster Loan (COVID-19 EIDL) The COVID-19 EIDL program provided loans and advances to help businesses recover from the economic impacts of the pandemic. Paycheck Protection Program (PPP) This SBA loan program helped...

covid19relief.sba.gov

Excellent. Just spoke to my parents who own a small business. They said they already applied through their CPA. I may use that on my index funds as well lol

 

[Pharmist1720]

With PAYE plans, I would end up paying about 75% of my actual principal. Not sure about the tax bomb later but based on what I figured, if you have more than $150k, make less than $120k, much better to do PAYE. Why the heck are you and your wife paying 5k a month?! how much does she owe and what does she do?

We're both pharmacists. She's got 198k at 4% interest. Min payment is $1500, but trying to pay it off as quick as possible.

 

[Monsterdaddy]

With PAYE plans, I would end up paying about 75% of my actual principal. Not sure about the tax bomb later but based on what I figured, if you have more than $150k, make less than $120k, much better to do PAYE. Why the heck are you and your wife paying 5k a month?! how much does she owe and what does she do?

FYI, loans forgiven under PSLF are NOT taxable by law. Enjoy!

 

[VictorOfHungerGames]

FYI, loans forgiven under PSLF are NOT taxable by law. Enjoy!

Exactly. Which is why once I leave this $#!!ty profession, join the military and work for them for 10 years, I won't have to worry about this crap. I sure will enjoy.

 

[Gombrich12]

The government thanks you for your sacrifice.

 

[Sine Cura]

At least you had the option for PSLF.

 

[rxkrafted]

We're both pharmacists. She's got 198k at 4% interest. Min payment is $1500, but trying to pay it off as quick as possible.

You should really work out the numbers before and weigh in other factors (other debt and other possible debt) as well. I had my loans paid off at ~135K in 4 years only because the income based repayment plans would end up costing me >$50K more (not including the tax bomb on forgiven amount). I have friends who went with PAYE because it made more financial sense making them pay less overall at the end up the term.

Correct me if I'm wrong but if you were to lose your job and had a hard time finding another job as a pharmacist while you signed up for an IBR plan, you'd get hit with a bigger tax bomb because your new (non-pharmacy) job could be paying significantly less which would mean a larger forgiven debt amount at the end. Just other factors to consider. If I were you, I would have gone with PAYE for your wife's situation considering the current state of the economy and inflation over time.

 

[confettiflyer]

You should really work out the numbers before and weigh in other factors (other debt and other possible debt) as well. I had my loans paid off at ~135K in 4 years only because the income based repayment plans would end up costing me >$50K more (not including the tax bomb on forgiven amount). I have friends who went with PAYE because it made more financial sense making them pay less overall at the end up the term.

Correct me if I'm wrong but if you were to lose your job and had a hard time finding another job as a pharmacist while you signed up for an IBR plan, you'd get hit with a bigger tax bomb because your new (non-pharmacy) job could be paying significantly less which would mean a larger forgiven debt amount at the end. Just other factors to consider. If I were you, I would have gone with PAYE for your wife's situation considering the current state of the economy and inflation over time.

So from a non-PSLF perspective, it's tricky to judge the eventual effects of the tax bomb. Not only is that going to be 15-25 years down the road (depending where you are in the payment cycle), you have all of these factors that can and will affect it:

1) Future legislation - trend is a liberalization of payment plans and terms, even Trump was proposing 15% of discretionary income over 30 years for graduate degree holders (with tax bomb eliminated). Every single proposal that has been proposed (and not enacted, hah) eliminates the tax bomb.

2) Future inflation - inflation helps borrowers with fixed interest rates as it raises income. This is the trickiest of all to plan for if you have federal loans and are contemplating consolidation out of the federal system. You have to decide whether it's more beneficial to maintain the higher interest rate and gamble on a tax bomb removal & forgiveness vs. refinancing and counting on inflation to reduce the net total liability of your student loan in present terms.

3) Future income - this is actually easy to model, but if you feel you're at risk for income loss, federal is the way to go as the lowest IDR payment is $0. What you mentioned (the size of the tax bomb/total amount forgiven) is also a consideration, but again that ties into future legislation.

tl;dr: basically, everyone has to calculate their own situations & risk tolerances for upcoming changes. each one will yield a slightly different outcome. extra credit for anyone who wants to run a Monte Carlo simulation on this, haha.

 

[BMBiology]

So from a non-PSLF perspective, it's tricky to judge the eventual effects of the tax bomb. Not only is that going to be 15-25 years down the road (depending where you are in the payment cycle), you have all of these factors that can and will affect it:

1) Future legislation - trend is a liberalization of payment plans and terms, even Trump was proposing 15% of discretionary income over 30 years for graduate degree holders (with tax bomb eliminated). Every single proposal that has been proposed (and not enacted, hah) eliminates the tax bomb.

2) Future inflation - inflation helps borrowers with fixed interest rates as it raises income. This is the trickiest of all to plan for if you have federal loans and are contemplating consolidation out of the federal system. You have to decide whether it's more beneficial to maintain the higher interest rate and gamble on a tax bomb removal & forgiveness vs. refinancing and counting on inflation to reduce the net total liability of your student loan in present terms.

3) Future income - this is actually easy to model, but if you feel you're at risk for income loss, federal is the way to go as the lowest IDR payment is $0. What you mentioned (the size of the tax bomb/total amount forgiven) is also a consideration, but again that ties into future legislation.

tl;dr: basically, everyone has to calculate their own situations & risk tolerances for upcoming changes. each one will yield a slightly different outcome. extra credit for anyone who wants to run a Monte Carlo simulation on this, haha.

The side effect of income based repayment is that it encourages you to not make as much as you can while you are still young. The more you make, the more you have to pay so why bother? Your life is going to evolve around your student loan repayment for the next 20-25 years.

How is this debt going to affect your ability to buy a house? Some lenders are already calculating 1% of your total student loan debt as your monthly debt, not your low IBR. So if you have $300 k, they will calculate your monthly student loan debt as $3000. Your debt to income ratio is going to be so high that you might not qualify for a mortgage.


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[Pharmist1720]

The side effect of income based repayment is that it encourages you to not make as much as you can while you are still young. The more you make, the more you have to pay so why bother? Your life is going to evolve around your student loan repayment for the next 20-25 years.

How is this debt going to affect your ability to buy a house? Some lenders are already calculating 1% of your total student loan debt as your monthly debt, not your low IBR. So if you have $300 k, they will calculate your monthly student loan debt as $3000. Your debt to income ratio is going to be so high that you might not qualify for a mortgage.


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Only other debt is mortgage 140k at 3%, no plans for more debt in the near future. I hated the thought of paying student loans for 20-25 years with her situation, so I refinanced them and hope to keep at this pace to pay them off in less than 5 years.

 

[confettiflyer]

The side effect of income based repayment is that it encourages you to not make as much as you can while you are still young. The more you make, the more you have to pay so why bother? Your life is going to evolve around your student loan repayment for the next 20-25 years.

How is this debt going to affect your ability to buy a house? Some lenders are already calculating 1% of your total student loan debt as your monthly debt, not your low IBR. So if you have $300 k, they will calculate your monthly student loan debt as $3000. Your debt to income ratio is going to be so high that you might not qualify for a mortgage.

Ah it affects your drive to make income.... but it does so in a different way, and in some ways, it doesn't help at all.

I'm still incentivized to work extra because the 1.5x OT multiplier in California is far and above more beneficial than having to pay more in 2 years because of the lag time. But I'd agree with you that, if I lived in a different state without that law, I probably wouldn't work more.

I'm now incentivized to put a LOT more money into tax vehicles that reduce AGI (HSA, 401k/403b, 457).

I'm also incentivized to incorporate and earn income in a separate entity that is taxed separately, or encourage my spouse to do so to avoid having their income lumped into my AGI.

Proper planning can mitigate these, but proper planning is key. And we've beaten to death the whole "can't afford a house" thing cuz clearly that hasn't been a hinderance to me or anybody else I know.

 

[Splenda88]

Only other debt is mortgage 140k at 3%, no plans for more debt in the near future. I hated the thought of paying student loans for 20-25 years with her situation, so I refinanced them and hope to keep at this pace to pay them off in less than 5 years.

3% is great. Is that on a 15-yr note?

Assuming your household income is ~ 250k given that both you and your spouse are pharmacists, 140k+198k are not crushing debt. You can actually pay both in less than 5 yrs...

Where in the country one can get a house for 140k without seeing people in every street corners or hearing gun shot everyday in that neighborhood?

 

[Pharmist1720]

3% is great. Is that on a 15-yr note?

Assuming your household income is ~ 250k given that both you and your spouse are pharmacists, 140k+198k are not crushing debt. You can actually pay both in less than 5 yrs...

Where in the country one can get a house for 140k without seeing people in every street corners or hearing gun shot everyday in that neighborhood?

Bought the house 9 years ago for 200k in a nice neighborhood. Just refinanced a few months ago to 15 year 3%. Yes household income is 250-260 each year depending on extra shifts and 1099 job.

 

[Wickett]

3% is great. Is that on a 15-yr note?

Assuming your household income is ~ 250k given that both you and your spouse are pharmacists, 140k+198k are not crushing debt. You can actually pay both in less than 5 yrs...

Where in the country one can get a house for 140k without seeing people in every street corners or hearing gun shot everyday in that neighborhood?

Rates are super low right now. I got 3.2% on a 30 year loan and 15% down this past week. I may be able to get a lower rate if it drops anymore during the closing process on the house I am buying this month.

 

[Splenda88]

Rates are super low right now. I got 3.2% on a 30 year loan and 15% down this past week. I may be able to get a lower rate if it drops anymore during the closing process on the house I am buying this month.

That is great! I got 3.25% on a 15-yr note in 2011. Even if I refinance now, I don't think I will be able to get 2.25%...

Are you sure you want to buy a house right now? The housing market might be on a shaky ground in the next few months. I would not do it if I were you?

 

[Wickett]

That is great! I got 3.25% on a 15-yr note in 2011. Even if I refinance now, I don't think I will be able to get 2.25%...

Are you sure you want to buy a house right now? The housing market might be on a shaky ground in the next few months. I would not do it if I were you?

No one knows what will happen, so I stopped trying to predict the future. All I know is me and my wife are secure in our jobs, are more than ready to own a home, and we have no plans on moving anytime soon. If things get so bad that the whole housing sector is still collapsed 5+ years from now when we would ever possibly move, there are bigger problems to worry about.

 

[researchpharma]

And I feel like a huge idiot for doing so. I graduated 10 years ago and my workplace qualified for PSLF, but at the time didn't know much about it and didn't trust the program. I paid off 175k in 5 years, now paying 5k/month on my wife's student loans we recently refinanced with Sofi so no 0% interest. Add in that most of my younger, recent grad co-workers are doing PSLF, and talk it about it all the time, I am feeling extremely bitter at the moment. Anybody else regretting actually paying your bills with the new developments lately?

I paid off my loans rapidly a couple of years ago by working two jobs. Then I quit the retail job, bought a house, and honestly, I feel good only having one thing to pay off at a time. The most common regret of people on their deathbeds is wishing they had worked less. You are lucky to have a job that qualifies for PSLF— I imagine your job is much cushier than CVS/Walgreens. And all pharmacists, even the ones on the lower end of the pay spectrum make enough money to be happy. My humble opinion is that life temporary, and you must find a balance between time and money so that you experience joy in your limited number of days alive. Live like you might live until you’re 110 years old and like this is your last month on Earth. You cannot predict when you die, just like you could not have predicted the economy would’ve turned into what it did recently. So my advice would be not to feel so bitter about something you couldn’t predict. You’ve got a great job, a home, and a wife. Focus on what you can control instead.

 

[MilknCheerios]

My wife and I did the same thing thing, except we don't regret it. We worked full time while married and chunk after chunk we paid them off completely before our 30s. We then bought and paid off a house and began raising a family. It feels good being in this debt-less position, but I also understand how some people would say we wasted prime investing years.

From my perspective, once you have enough money, the incremental amount of happiness you get from having even more money is not as important as maintaining what keeps you satisfied. I've been slow to learn to invest because I have been blessed with so much already and the stress of having to learn a new skill that could potentially just lose money sometimes doesn't seem worth it... but I will continue trying. I guess what I'm trying to say is, don't fret about past decisions and do your best with the information you have now.

 

[Splenda88]

My wife and I did the same thing thing, except we don't regret it. We worked full time while married and chunk after chunk we paid them off completely before our 30s. We then bought and paid off a house and began raising a family. It feels good being in this debt-less position, but I also understand how some people would say we wasted prime investing years.

From my perspective, once you have enough money, the incremental amount of happiness you get from having even more money is not as important as maintaining what keeps you satisfied. I've been slow to learn to invest because I have been blessed with so much already and the stress of having to learn a new skill that could potentially just lose money sometimes doesn't seem worth it... but I will continue trying. I guess what I'm trying to say is, don't fret about past decisions and do your best with the information you have now.

You follow Dave Ramsey's advice to a T.

 

[confettiflyer]

My wife and I did the same thing thing, except we don't regret it. We worked full time while married and chunk after chunk we paid them off completely before our 30s. We then bought and paid off a house and began raising a family. It feels good being in this debt-less position, but I also understand how some people would say we wasted prime investing years.

From my perspective, once you have enough money, the incremental amount of happiness you get from having even more money is not as important as maintaining what keeps you satisfied. I've been slow to learn to invest because I have been blessed with so much already and the stress of having to learn a new skill that could potentially just lose money sometimes doesn't seem worth it... but I will continue trying. I guess what I'm trying to say is, don't fret about past decisions and do your best with the information you have now.

Glad things went well for you. My primary concern would be for my life age 60-95. I fully intend to keep working into my 70s part time, but I have to hedge that with the possibility that my health would preclude that.

I also have to plan for a 30yr retirement (age 95) even if my avg LE is 86ish years.

That’s why I started investing in my 20s, investment outcomes from age 20-60 is much much different from age 40-60. It’s still doable, but it requires a LOT more capital and a more aggressive investment (risk) strategy.

I also have worked with many 50-55 year olds with barely 1-2yrs worth of income in retirement, and that’s scary. To achieve modest goals (to be able to have $50k/yr in retirement) almost requires a heroic amount of money with only 10 investing years to go.

Obviously being debt free in your 40s but not having saved as much as another person for retirement has its perks, I just couldn’t make the #’s work when factoring everything else (life, housing goals, etc...).

But hey, you picked a good time to start kicking up your investments! Nothing like starting during a recession.


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[mentos]

We paid off our loans in under 3 years and it was the greatest feeling ever. We're considering paying down our mortgage aggressively now. Yes it's not the most economical way but having no debt is amazing.

 

[BMBiology]

I don’t know any wealthy person who still have a boatload of student loan debt. I am not talking about a measly $100 k here. I am talking about 7, even 8 figures.

First, they are smart enough to know not to borrow $300 k so you can make $120 k a year.

Second, they know bad debt limits their ability to make real money. In order to make a lot of money, you have to know when and how to leverage. You can’t leverage when you have a boatload of bad debt. No sane bank would let you.

Third, they know bad debt is the ultimate ball and chain. Do you want every major decision you make to be influenced by this stupid debt?

So what if some joe blow ends up saving some money. He is not going to have a peace of mind for the next 20-25 years.

 

[confettiflyer]

I don’t know any wealthy person who still have a boatload of student loan debt. I am not talking about a measly $100 k here. I am talking about 7, even 8 figures.

First, they are smart enough to know not to borrow $300 k so you can make $120 k a year.

Second, they know bad debt limits their ability to make real money. In order to make a lot of money, you have to know when and how to leverage. You can’t leverage when you have a boatload of bad debt. No sane bank would let you.

Third, they know bad debt is the ultimate ball and chain. Do you want every major decision you make to be influenced by this stupid debt?

So what if some joe blow ends up saving some money. He is not going to have a peace of mind for the next 20-25 years.

So you’re advocating paying everything off first? Cuz that would not give me peace of mind at all.

And who do you know that has a $10M+ student loan debt?!? I want to know!


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[mentos]

So you’re advocating paying everything off first? Cuz that would not give me peace of mind at all.

And who do you know that has a $10M+ student loan debt?!? I want to know!


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LoL he obviously meant a wealthy person who has 8 figures of assets, not student loan debt.

 

[confettiflyer]

LoL he obviously meant a wealthy person who has 8 figures of assets, not student loan debt.

Yeah totally misread that at one in the morning, hahah.

I probably won’t ever amass 8 figure wealth :::: that probably won’t be the fault of student loans, either


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[TerryTerry]

I would pay it off ASAP too if my minimum payment was $1500 a month.
Holy ****.

 

[owlegrad]

Yeah totally misread that at one in the morning, hahah.

I probably won’t ever amass 8 figure wealth :::: that probably won’t be the fault of student loans, either


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don’t feel too bad, I read it that way at first too. I was like...that doesn’t make sense.

I am curious if people with eight digit wealth ever had any student loans. My guess would be the vast majority would have never needed to have student loans too being with but I could be wrong. What degree paths lead to that kind of money and why didn’t I go to those programs?

Seems like you need to be an athlete, actor, or business owner to make that kind of money and I don’t know how prevalent student loans are in those groups. I would guess not high?

 

[mentos]

don’t feel too bad, I read it that way at first too. I was like...that doesn’t make sense.

I am curious if people with eight digit wealth ever had any student loans. My guess would be the vast majority would have never needed to have student loans too being with but I could be wrong. What degree paths lead to that kind of money and why didn’t I go to those programs?

Seems like you need to be an athlete, actor, or business owner to make that kind of money and I don’t know how prevalent student loans are in those groups. I would guess not high?

The most successful guy I know owns a business and did not go to college. Just worked tons his whole life. He nearly paid off a 1.5 million dollar home at age 33 in Socal. That was over ten years ago so I'm sure he's close to 8 figures now.

Another successful guy I know got an MBA at a top ten business school and landed some kind of executive position. Not really sure what he does but he makes around $400k/year. I guess doctors, dentists, software engineers can make me than that.

 

[confettiflyer]

The most successful guy I know owns a business and did not go to college. Just worked tons his whole life. He nearly paid off a 1.5 million dollar home at age 33 in Socal. That was over ten years ago so I'm sure he's close to 8 figures now.

Another successful guy I know got an MBA at a top ten business school and landed some kind of executive position. Not really sure what he does but he makes around $400k/year. I guess doctors, dentists, software engineers can make me than that.

Most likely some form of deferred compensation plan or payment in restricted stock, that’s pretty common these days but. It in the context of normal “doctor or engineer” work.

As for people who identified a niche/need, built a business, and were successful...I salute you. I believe the failure rate for businesses is 86% at year 3. Success bias by looking at who survived and thrived.


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[BidingMyTime]

Where in the country one can get a house for 140k without seeing people in every street corners or hearing gun shot everyday in that neighborhood?

There are LOTS of places in BFE where you can buy a mansion for only 140K! You won't have to worry about seeing *anyone*, other than maybe your mail carrier (who is actually a mail-driver.) You might sometimes hear gun shots from hunters, but they will be off in the distance.

Of course, the trade off will be your lengthy commute to work. But it will be on mostly deserted roads, far more relaxing than rush-hour traffic.

 

[TateThePharmacist]

And I feel like a huge idiot for doing so. I graduated 10 years ago and my workplace qualified for PSLF, but at the time didn't know much about it and didn't trust the program. I paid off 175k in 5 years, now paying 5k/month on my wife's student loans we recently refinanced with Sofi so no 0% interest. Add in that most of my younger, recent grad co-workers are doing PSLF, and talk it about it all the time, I am feeling extremely bitter at the moment. Anybody else regretting actually paying your bills with the new developments lately?

Based on how many kids you have, it is very likely that you overpaid. I ended up paying off my student loans really quick, and calculated that I likely payed around 25k more by paying off my loans faster than if I had them forgiven by PSLF. I'm in the same boat as you, in that I don't quite trust these programs. I just can't see in 10 years these programs surviving so that I can take advantage. I mean millions if not billions would be forgiven by that point, it just doesn't make sense that any program could do that. In 10 years time I could be wrong, however there's something to be said for being student loan free for 9.5 years.

Glad things went well for you. My primary concern would be for my life age 60-95. I fully intend to keep working into my 70s part time, but I have to hedge that with the possibility that my health would preclude that.

I also have to plan for a 30yr retirement (age 95) even if my avg LE is 86ish years.

That’s why I started investing in my 20s, investment outcomes from age 20-60 is much much different from age 40-60. It’s still doable, but it requires a LOT more capital and a more aggressive investment (risk) strategy.

I also have worked with many 50-55 year olds with barely 1-2yrs worth of income in retirement, and that’s scary. To achieve modest goals (to be able to have $50k/yr in retirement) almost requires a heroic amount of money with only 10 investing years to go.

Obviously being debt free in your 40s but not having saved as much as another person for retirement has its perks, I just couldn’t make the #’s work when factoring everything else (life, housing goals, etc...).

But hey, you picked a good time to start kicking up your investments! Nothing like starting during a recession.


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Whenever I've run 401k calculator's online, if you simply contribute 10% of your income as a pharmacist (and your employer matches something like 4%) for 30 years, you should be able to pull your pharmacist salary for 30 years after retiring before you'd dry up your 401k fund. That isn't accounting for social security (assuming it's still around) or for inflation (which I completely understand would change your standard of living).
With all that in mind, I've always questioned if it's worth the hassle to constantly be penny pinching and constantly worrying about investing and growing my wealth. I wonder if you just make sure you contribute those amounts and not worry about it. Then again, I'm never content with what I have and have a constant drive to improve myself and my financial standing haha.

 

[babybull]

voting for Trump in November. useless socialist Bernie and the democrats. 6 months of student loan forgiveness so far -- may go further!

now if you're wondering about biden -- he just outlined a student loan forgiveness plan more generous than Warren's!!!!!!! look it up!!

times have changed and this is game changing, so remember to be wise, because being responsible does not always pay.

be careful out there my fellow indebted millenials...

 

[Klueril]

I've been following the sentiment for a couple years and while I used to be hardcore pay your loans of quick kinda guy, I can no longer advocate that. Take a look at the political temperature of the room---even some repubs are calling for loan forgiveness. The total debt load is inflating too quickly. I predict it will happen in 5-10years when it is too large to ignore. Anyone else think along the same lines?

 

[BMBiology]

I've been following the sentiment for a couple years and while I used to be hardcore pay your loans of quick kinda guy, I can no longer advocate that. Take a look at the political temperature of the room---even some repubs are calling for loan forgiveness. The total debt load is inflating too quickly. I predict it will happen in 5-10years when it is too large to ignore. Anyone else think along the same lines?

If it does happen, most likely there will be an income restriction or only undergraduate student loans.

 

[trailerpark]

If it does happen, most likely there will be an income restriction or only undergraduate student loans.

Do you know how many people are still going to want bailouts from Corona? Way more than student loan forgiveness. This is merely to get the Bernie bros to support Biden. This will never pass Congress!

 

[Momus]

Haha, if you have a side business of any sort (i.e. had 1099 or Schedule C income in 2019, or operated an LLC/Corp with its own entity #), you can apply for a "loan" from the SBA for up to 2.5x your payroll costs (or supposedly 6 months of COGS, I haven't seen that written though).

$10k is advanced to your account in an expedited manner.

The rule is, if you spend the $10k on specific costs (rent/utilities, payroll, etc...) by June 30th, that amount is forgiven (which effectively turns it into a grant). If you don't spend by June 30th, it converts to a loan at like 4% interest over 10 years.

Note: you can't just open a business today and claim it, they'll ask for info (business start date) and ask for your 2019 P/L numbers (revenue and COGS).

COVID-era programs - Small Business Administration

Access information on SBA’s pandemic-era programs. COVID-19 Economic Injury Disaster Loan (COVID-19 EIDL) The COVID-19 EIDL program provided loans and advances to help businesses recover from the economic impacts of the pandemic. Paycheck Protection Program (PPP) This SBA loan program helped...

covid19relief.sba.gov

I have no recurring business expenses described above.

Nice free 10k though.