Money and Investment

[gabar1]

Advertisement - Members don't see this ad

"Who Else Wants To Cut Their Gas Cost Down to $0.00 By Selling the Most Wanted eBook on the Internet?...

And...Be Able To Resell It Through Our Affiliate Program With 100% Instant Commissions!"

Visit here to find out more: http://shorl.com/dedustogymypra

Why are gas prices rising so quickly?

Big oil companies are making most of their money by producing crude oil. They invested in oil fields when prices were much lower, with the expectation that they could break even at, say, $25 per barrel. Since the market price is now more than $70 a barrel, the extra money is gravy. It's like a farmer who can raise corn for $1.50 a bushel. If the market price is $1.75, he makes a quarter per bushel. If the market price jumps to $2.25, his profits jump as well. (If the market crashes to $1 per bushel, the farmer loses money. That can happen to oil companies as well.) Oil companies, like the farmer, are the beneficiaries of high market prices, but they can no more control those prices than a farmer can dictate what he gets for a bushel of corn.

Visit here to buy a copy of the e book for only $10.


Visit: http://shorl.com/dedustogymypra

🙂

 

[gabar1]

🙂 "Who Else Wants To Cut Their Gas Cost Down to $0.00 By Selling the Most Wanted eBook on the Internet?...

And...Be Able To Resell It Through Our Affiliate Program With 100% Instant Commissions!"

Visit here to find out more: http://shorl.com/dedustogymypra

Why are gas prices rising so quickly?

Big oil companies are making most of their money by producing crude oil. They invested in oil fields when prices were much lower, with the expectation that they could break even at, say, $25 per barrel. Since the market price is now more than $70 a barrel, the extra money is gravy. It's like a farmer who can raise corn for $1.50 a bushel. If the market price is $1.75, he makes a quarter per bushel. If the market price jumps to $2.25, his profits jump as well. (If the market crashes to $1 per bushel, the farmer loses money. That can happen to oil companies as well.) Oil companies, like the farmer, are the beneficiaries of high market prices, but they can no more control those prices than a farmer can dictate what he gets for a bushel of corn.

Visit here to buy a copy of the e book for only $10.


Visit: http://shorl.com/dedustogymypra

 

[MTGas2B]

🙂 "Who Else Wants To Cut Their Gas Cost Down to $0.00 By Selling the Most Wanted eBook on the Internet?...

And...Be Able To Resell It Through Our Affiliate Program With 100% Instant Commissions!"

Visit here to find out more: http://shorl.com/dedustogymypra

Why are gas prices rising so quickly?

Big oil companies are making most of their money by producing crude oil. They invested in oil fields when prices were much lower, with the expectation that they could break even at, say, $25 per barrel. Since the market price is now more than $70 a barrel, the extra money is gravy. It's like a farmer who can raise corn for $1.50 a bushel. If the market price is $1.75, he makes a quarter per bushel. If the market price jumps to $2.25, his profits jump as well. (If the market crashes to $1 per bushel, the farmer loses money. That can happen to oil companies as well.) Oil companies, like the farmer, are the beneficiaries of high market prices, but they can no more control those prices than a farmer can dictate what he gets for a bushel of corn.

Visit here to buy a copy of the e book for only $10.


Visit: http://shorl.com/dedustogymypra

I found a way to cut my gas bill to $0. I ride my bike to work. Parking is cheaper too.

 

[foil]

Gains in a down market?
Check out the various Sin Stocks.



Foil

😛

 

[SleepIsGood]

After the discovery of oil over the Gulf of Mexico did you guys see how much Chevron and Devon Engergy went up😳 😳 ...especially Devon

 

[dhb]

it will only be exploitable in +- 5 years so i don't see the gains holding over the long term so i'll definatly keep an eye on those stock to pick them up if they hit a low point
if you look at Statoil (STO) owner of 25% of the field it's stock only rose 60 cents or 2% could be interrestong....

 

[Hockeyguy]

Re-shorted BZH at 58.50 - locked in a good profit previously and re-shorted with it all. This baby is entering a nice steady downtrend...

MC

In case anyone is still following this thread - this week I am going to close out this trade at 38. Man I rocked this stock for like 30+ points between the two trades. I hope some of you traded it too. Also I entered F (finally - for those who been following) at 7.60. I will keep posting any trades so that if any of you out there are still reading you can get after it - intership is OK but it keeps away from the stocks too much 🙂. Later MC

 

[TheSandMan]

In case anyone is still following this thread - this week I am going to close out this trade at 38. Man I rocked this stock for like 30+ points between the two trades. I hope some of you traded it too. Also I entered F (finally - for those who been following) at 7.60. I will keep posting any trades so that if any of you out there are still reading you can get after it - intership is OK but it keeps away from the stocks too much 🙂. Later MC

Hey, good to see you back Hockey. looks like you had some nice plays there. haven't really been keeping up with stocks since starting my ca-1 year, but will be getting back in soon enough 😉

 

[proman]

Just curious. Let's say you have a mid 5 figure sum to invest. Stocks only, I don't do mutual funds and I don't know how to do options/bonds/etc. How would you split up the money and what would you buy?

I already have an airline (AMR, 150% return and 3 ulcers), so something probably a little less risky than that. My Roth has JDSU (bought at 1.60), MSFT (bought at 26 + special div) and NLS (bought at 15). This for my regular account for now.

 

[miamidc]

Dsco,dsco, Dsco. About To Get Fda Approval, Currently Aat 2.13. Is About To Skyrocket. Went Up 30% Just On News That They Are Talking To The Fda Again After A Slight Delay. I Would Do Your Research But I Have Been Trading This Monster For The Past Month And A Half And Have Made Thousands. It Is So Easy To Trade This Stock, Very Predictable. But I Am Sure To Buy Up All The Shares As Soon As It Dips Because It Is Going To Go To $4 $5 Dollars Very Soon, And Then Double That In The Matter Of Months. Do Your Research, But Believe Me I Am Throwing You Guys A Bone. (they Are Going To Corner The Market On Synthetic Surfactin Which Will Be The Standard Of Care In The Nicu And Other Applications. Good Luck.

 

[miamidc]

WWWHHHHHOOOOOO!!!!! Hope you guys got in

 

[proman]

Missed it. Had an order in at 2.00 for a while and never got filled. Oh well, good suggestion.

 

[foil]

do not get complacent



http://www.washingtonpost.com/wp-dyn/content/article/2006/10/23/AR2006102301257.html

 

[logos]

Dsco,dsco, Dsco. About To Get Fda Approval, Currently Aat 2.13. Is About To Skyrocket. Went Up 30% Just On News That They Are Talking To The Fda Again After A Slight Delay. I Would Do Your Research But I Have Been Trading This Monster For The Past Month And A Half And Have Made Thousands. It Is So Easy To Trade This Stock, Very Predictable. But I Am Sure To Buy Up All The Shares As Soon As It Dips Because It Is Going To Go To $4 $5 Dollars Very Soon, And Then Double That In The Matter Of Months. Do Your Research, But Believe Me I Am Throwing You Guys A Bone. (they Are Going To Corner The Market On Synthetic Surfactin Which Will Be The Standard Of Care In The Nicu And Other Applications. Good Luck.

Did you manage to dump it at the top? It had a nice pop, but now its going back to around 2 for awhile i bet. Probably get another pop when they resolve their issues with the FDA (less than 90days from now right?). But, i'd imagine it will tank a little if/when they spin off more stock to generate the $$ they're going to need soon.

 

[miamidc]

Actually I have ben playing this stock pretty well. I have managed to buy and sell this stock bout 3 or 4 times in the last 2 months and have bought low and sold high with good signals. I bought at 2.60 and it went up to 2.90 bout a week and a half ago, thought it was going to keep pushing, it didn't but sold at 2.60, with no loss. Waited until friday when it was 2.20s and got in BIG, I knew it was temp, and the upswing was coming, way to oversold. It went up 8% today, and willing to bet its going to hit 2.80 tom. I think its still good to get in this wave if you get in right now. Still a great play. But not going to get past 3.50 or over $4 till FDA approval then $8-10 is not out of the questionl, actually anything strongly positive will make this stock push $4. Good luck, these are the types of stocks that will make you BIG$$ bucks, just got to keep an eye on them, I got 15K on this and am hoping to make at least 50K if I play my cards right. Ill let you know.😀

 

[PGY2]

Been buying up this stock... UWNK. New company started by Nolan Bushnell (founder of Atari and Chuck E. Cheese). Do you due diligence. Good luck.

 

[ambientbaby]

Sounds like a great restaurant idea. Wish I got in a few months ago. Is it too late???

 

[PGY2]

No, I dont think it's too late... but did you see the pop over the last two days? I am thinking a goal of about $6-7/share by the 2nd quarter of next year... maybe sooner on news of franchises.

 

[huron]

No, I dont think it's too late... but did you see the pop over the last two days? I am thinking a goal of about $6-7/share by the 2nd quarter of next year... maybe sooner on news of franchises.

UWNK.OB

Only one restaurant open and 40m market cap?
52 wk range .20 to 2.40 current 2.11..

I guess the pink sheets are not for the timid.

I bet it will go back under a dollar long before in hits 6-7

 

[huron]

Just curious. Let's say you have a mid 5 figure sum to invest. Stocks only, I don't do mutual funds and I don't know how to do options/bonds/etc. How would you split up the money and what would you buy?

I already have an airline (AMR, 150% return and 3 ulcers), so something probably a little less risky than that. My Roth has JDSU (bought at 1.60), MSFT (bought at 26 + special div) and NLS (bought at 15). This for my regular account for now.

You need to work on getting diversified.

Four stock, is not enough, create you own mutual fund.

Diversification is the only free lunch.

If I own more than 2% of my portfolio in any single stock, 10% is a sector I get worried and sell.

Which way do you think the market is headed? I am going to cash and waiting for the correction..

 

[ambientbaby]

I'm relatively new to the market, but here are my thoughts: Was the correction in spring/summer the end to a four year cycle?? If so, then we are headed for at least another 2 years bull. Some would say it was too soft to be the end of a cycle, but I am bull through 2007. Interesting thoughts though. I was thinking of selling, but have decided to hold through end of year. Don't think there will be major correction at least in 2006.

 

[huron]

I'm relatively new to the market, but here are my thoughts: Was the correction in spring/summer the end to a four year cycle?? If so, then we are headed for at least another 2 years bull. Some would say it was too soft to be the end of a cycle, but I am bull through 2007. Interesting thoughts though. I was thinking of selling, but have decided to hold through end of year. Don't think there will be major correction at least in 2006.

I think correction occur about once or twice per year. mid July 06 was the last one and before that early Nov. 05, mid April 05, late October 04. The market is up significantly since mid July, the economic data is mixed at best so I do not see his trend continuing. This all depends on you trading window the market may go up through 2007 but I feel there will be a correction soon which will be a good buying opportunity.

 

[foil]

Old piece of junk finally came back to life with heavy trading.
NT was awarded a $20 M contract to rebuild 35 cities in Iraq.


foil😱

 

[asdfasdfasdf]

Not sure where to write this but has anyone heard anything about MCW pain fellowship. What do you think of it? How many procedures do you do per week, etc.?
Thanks!

 

[AnesthesiaLogs]

everytime i see people talking about stocks, i have to either sit quietly or I have to chime in. in this case I have to chime in: real estate blows away stocks! and all the talk about this or that stock always seems moot to me. Wouldn't you rather have a guaranteed 100-200% return the moment you buy a below market-price property, rather than a buy-and-hope attitude as in with stocks?

think about this:
$80k house
Purchased with 10% down or $8000
Market value: $110,000
Equity = $110,000 - $80,000 = $30,000
Rehab $5000 + closing costs $3000 = $7000
Total invested = $8000 + $7000 = $15000
Return on Equity = $30,000 / 15,000 = 200%

Plus you get cash flow:
$200 / month or $2400 / year
$2400 / $15,000 = 16% return

go to http://www.gcproperties1.com

The properties we have pay for more than half my residents salary, plus I've more than doubled my equity. Plus there's tax benefits and appreciation too!

I'm telling you all. Real estate blows away stocks!

 

[ambientbaby]

What do you guys think about IMAX. It's down and fairly risky with possibility of cooking books. Can this go much lower?

 

[PGY2]

Sounds like a great restaurant idea. Wish I got in a few months ago. Is it too late???

franchise news out... nice pop in the stock price today...

http://www.redherring.com/Article.aspx?a=20021&hed=Atari+Founder+Bullish+on+Social+Gaming%2c+Wii+
i'm bullish on this one.

 

[asdfasdfasdf]

everytime i see people talking about stocks, i have to either sit quietly or I have to chime in. in this case I have to chime in: real estate blows away stocks! and all the talk about this or that stock always seems moot to me. Wouldn't you rather have a guaranteed 100-200% return the moment you buy a below market-price property, rather than a buy-and-hope attitude as in with stocks?

think about this:
$80k house
Purchased with 10% down or $8000
Market value: $110,000
Equity = $110,000 - $80,000 = $30,000
Rehab $5000 + closing costs $3000 = $7000
Total invested = $8000 + $7000 = $15000
Return on Equity = $30,000 / 15,000 = 200%

Plus you get cash flow:
$200 / month or $2400 / year
$2400 / $15,000 = 16% return

go to http://www.gcproperties1.com

The properties we have pay for more than half my residents salary, plus I've more than doubled my equity. Plus there's tax benefits and appreciation too!

I'm telling you all. Real estate blows away stocks!

Thanks for this interesting e-mail. Just wondering how much you've made in real estate, what is your cash flow right now and how long have you been at it?
Thanks!

 

[AnesthesiaLogs]

Thanks for this interesting e-mail. Just wondering how much you've made in real estate, what is your cash flow right now and how long have you been at it?
Thanks!

Well, suffice it to say that with the last house I purchased, my loan broker faxed me a copy of the loan application document to be sent to the lender listing all my assets and liabilities and income and expenses. He had filled it out already because he knew what I had purchased already up to that point and what I had before we started buying.

I was very pleasantly surprised when I found that I had more than doubled my net worth. But I had somewhat expected it as I had briefly run the numbers for myself in my head before the mortgage broker sent me the loan app copy. Remember, this was after 6-8 months of slowly acquiring one, 8-unit multifamily and 4 other single families (below market price) and then renting them out.

The very rapid doubling of my net worth testifies to the power of real estate. But we're also receiving about $1150 in cash flow per month on all our units. That's a little on the low side of what we should be receiving, but we are slowly improving on it. Granted about $400 dollars is now going to our new Prius since we bought it after purchasing all these houses, but it's nice to not do anything but pick up rental income at the PO Box and still have your car payments paid.

If you ask me, real estate is fastest way to increase one's equity. It's not overnight-get-rich-quick, but it is build-equity-relatively-quickly. Compared to stocks, which I had been doing before, I think real estate is far superior. Heck it even beats a matched 401k!

I honestly enjoy anesthesia more simply because I know that it's not my only source of income.

 

[foil]

I honestly enjoy anesthesia more simply because I know that it's not my only source of income.[/QUOTE]



No doubt, real-estate is a solid, tangible and profitable investment.
Like any prudent investment, it too requires time to maintain and manage it wisely.
Having done property management myself, you, as owner, can be hands on, or
contract it out to a property management firm.I would prefer receiving less profits of a management group, to the midnight plumbing calls or trying to catch the late renter.
Not to mention , these bad guys having no ownership in the property, will freely destroy it.

Stocks can evaporate overnight with one sneeze, real estate can collapse with fire, earthquake or when the neighborhood goes bad.

I have no problems with real estate..............just don't put all your eggs in one basket, including stocks.
Just as you pick stocks to fill your well rounded portfolio, so should be your total investment strategy.


Foil 🙂

 

[Jinterpol]

Ok I know this isn't the Stocks/Bonds forum, but since they say anesthesiologists are the 'wallstreet junkies' of medicine, I thought perhaps this would be pertinent, atleast different from the daily grind on this forum.

I've heard that this new drug called BYETTA for the tx of DMII is coming out. Supposedly it's a combined effort b/w Amylin and Eli Lilly.

Check this link out:
http://uk.biz.yahoo.com/050610/241/fkvcc.html

I know that the above link isnt to the NEJM or anything, but I've even heard from pharmacists that this new drug is going to be the biggest hit. I'm thinking of investing in Amylin. Anyone know any reasons not to?

Thanks

P.S. I dont work for Amylin or Eli Lilly...just providing some that'll HOPEFULLY help us pay back our loans

Okay. For those of you who don't know BYETTA is just exendin-4, a long acting analogue of glucagon-like peptide 1...you do now. Yes, it works miracles, and there is a plethora of papers with mouse data on this...however, patients don't tolerate it so well. Furthermore, the research I was involved with at the U of C eludes to the fact that prolonged treatment of exendin-4/BYETTA to patients with DMII actually leads to a mild degree of islet glucose insensitivity. There is only one paper on this, but I think others will soon follow. The transcription factors it elevates/activates result in islet regeneration alone, and poor glucose response over long periods of time. It's no miracle drug, but it will work well in short-term therapy or in low doses.

 

[ambientbaby]

Any new feelings on GTC Biotherapy?? It was once recommended on this thread I believe.

 

[foil]

Heads up,
New research.

Plastic Semiconductor Chips




foil

 

[foil]

http://news.yahoo.com/s/csm/20070226/cm_csm/ynavarro;_ylt=Alwm3h_1l5DM22CwhihsByADW7oF

 

[matt1234321]

here is a couple great buys

NVD 1.37
DSCO 2.01

better get in while the gettin is good!!!

 

[matt1234321]

I also like FRO becuase of the monster yield at over 20% a year. Even if this stock flatlines at 31 dollars. its a great buy.

 

[matt1234321]

i hope you guys got in these stocks wont be goin back down any time soon

 

[timtye78]

Ok I just read some of the Wallstreet and Gas posts, and there were some powerful nuggets of advice for new grads and a few hints at what do with their money once we start getting that long-awaited raise. But I would like to to hear from the practicing attendings where they diverted their extra dough-

Did you pick the debt with the highest interest rate to pay off first -eg mortgage, credit cards,etc. Did you buy that $500 K house and attack student loans?

Someone alluded to a statement that due to the high amount of debt, banks will hesitate to loan you $500 K for a house even up to a year out? Is that right?

(Personal info here, but I am in a similar crowd) My credit report is excellent, but obviously I have a large amount of loan debt, and the printout makes a comment about this and that this might negatively affect my score/buying power.

If this is true, and banks do not put much faith in my income generating power, then it seems to me that paying off those loans, even at 2.87%, might be the way to go first. But in my mind, I cannot justify, since my current mortgage rate is 6.0%. What do you guys think?

 

[Lonestar]

eventhough i am not not an attending (about to be a CA3), my plan is to live like a resident for next 3 yrs and pay off most of my student loans (currently at 160k @ 4.5% interest). This way i can also save up for a down payment for my house in the future. In my mind, it is fiscally irresponsible to put yourself in more debt when you have the means to get out of the debt.

 

[EtherMD]

eventhough i am not not an attending (about to be a CA3), my plan is to live like a resident for next 3 yrs and pay off most of my student loans (currently at 160k @ 4.5% interest). This way i can also save up for a down payment for my house in the future. In my mind, it is fiscally irresponsible to put yourself in more debt when you have the means to get out of the debt.

Very wise for someone so young. But, you can live a little better than a Resident. PAY OFF YOUR LOANS because Universal Health Care may change things in the future. This means if you live big now you may not have the income later to pay off your debt. I doubt Medicare will care about your situation.

 

[proman]

I would do just the opposite (CA1 in July). Debt tolerance is a very subjective personal issue. I've posted before the huge financial benefit of investing vs paying off debt. I plan on paying the $1000 a month x 30 years that my 210K at 1.8% requires. I don't plan on living like a resident, but do plan on living below my means. That means no $1 million house or $100K car, but does mean a reasonable house and car plus vacations. But, all my excess cash will go to investing, because the time we've lost in training is gone. When it comes to retirement, we're behind the 8 ball*. And, no matter what happens to our health care system, we're still going to have the ability to live better than the majority of the country.

*By retirement I don't think the SEPs or 401(k)s are going to be enough. I'm talking about investing in addition to what ever the group/employer sets up. You can start as a resident by contributing to your hospital 401(k) or 403(b) up to the maximum match, and then to Roth, and then to a regular investment account. I personally don't believe in mutual funds or ETFs etc. I invest in individual stocks.

 

[EtherMD]

Ok I just read some of the Wallstreet and Gas posts, and there were some powerful nuggets of advice for new grads and a few hints at what do with their money once we start getting that long-awaited raise. But I would like to to hear from the practicing attendings where they diverted their extra dough-

Did you pick the debt with the highest interest rate to pay off first -eg mortgage, credit cards,etc. Did you buy that $500 K house and attack student loans?

Someone alluded to a statement that due to the high amount of debt, banks will hesitate to loan you $500 K for a house even up to a year out? Is that right?

(Personal info here, but I am in a similar crowd) My credit report is excellent, but obviously I have a large amount of loan debt, and the printout makes a comment about this and that this might negatively affect my score/buying power.

If this is true, and banks do not put much faith in my income generating power, then it seems to me that paying off those loans, even at 2.87%, might be the way to go first. But in my mind, I cannot justify, since my current mortgage rate is 6.0%. What do you guys think?

Okay. Where will you be in 5 years financially? The answer to this question is very important because you would not like being forced to sell your home.
If scenario three (see my post in Universal Health Care) becomes reality in 5 years will you be able to afford your home AND the loan payments?

Why not be conservative and address your debt to a level that even if scenario three occurs you can keep your home. Dont't worry about your FICO or your ability to get a loan. As long as you make those payments on time and your income rises to match your debt load the FICO will be fine.

My Group has used the same bank for 15 plus years. All I have to do is make a phone call to get money, buy a second home, etc., In addition, if we "vouch' for our new guy (after 12 months of work) the bank will loan him what he needs at very good terms.

 

[EtherMD]

I would do just the opposite (CA1 in July). Debt tolerance is a very subjective personal issue. I've posted before the huge financial benefit of investing vs paying off debt. I plan on paying the $1000 a month x 30 years that my 210K at 1.8% requires. I don't plan on living like a resident, but do plan on living below my means. That means no $1 million house or $100K car, but does mean a reasonable house and car plus vacations. But, all my excess cash will go to investing, because the time we've lost in training is gone. When it comes to retirement, we're behind the 8 ball*. And, no matter what happens to our health care system, we're still going to have the ability to live better than the majority of the country.

*By retirement I don't think the SEPs or 401(k)s are going to be enough. I'm talking about investing in addition to what ever the group/employer sets up. You can start as a resident by contributing to your hospital 401(k) or 403(b) up to the maximum match, and then to Roth, and then to a regular investment account. I personally don't believe in mutual funds or ETFs etc. I invest in individual stocks.

So, if in 2017 your income falls to $150,000 plus benefits you have enough money to KEEP your home and pay those loans? A word of advice: it is much harder to sell something you have worked hard for and acquired than never to have acquired it at all. In other words, the psychological aspect of debt must be a factor as well. Do you really want payments for 30 years? I hate payments of any kind and the psychological boost of not being in debt was positive for me.

On a strictly financial level, investing in the market makes good fiscal sense. Your returns should far exceed 1.8% annually. However, your income is NOT secure for the future so you may need to sell your stock during a down-turn in the market. Reward vs. Risk is your decision.

 

[Noyac]

I would not pay off the loans. especially at that interest rate. You can do much better even with a measily CD earning 5%. Let your money work for you. The loans won't hurt your credit score. Look at it this way, if you pay off your loans, you are making less than 3% with that money. Take the CD for example (not that you would put your money in a CD). It will earn 5% therefore you are making about 2% more than if you paid off your loans straight. Thats the worst you will do if you invest wisely.

By the way, any bank will be eager to lend you the money for a BIG house.

 

[proman]

So, if in 2017 your income falls to $150,000 plus benefits you have enough money to KEEP your home and pay those loans? Do you really want payments for 30 years? I hate payments of any kind and the psychological boost of not being in debt was positive for me.

On a strictly financial level, investing in the market makes good fiscal sense. Your returns should far exceed 1.8% annually. However, your income is NOT secure for the future so you may need to sell your stock during a down-turn in the market. Reward vs. Risk is your decision.

Absolutely. I'm buying time, something that can't ever be recouped.

 

[VolatileAgent]

i think there are multiple ways to skin this cat. i'd suggest hiring (if you haven't already) a good accountant and financial advisor. not as easy to come by as you might expect. fortunately for me, i'll be continuing to use the same advisor my parents have used prior to their retirement. he has made a crap pile of money for them over the past 15-20 years. i will be shopping for an accountant. of course, i've already squirreled away a lot of "untouchable" assets prior to even going down the whole med school/resident/soon-to-be attending path.

despite having an mba myself, i think it's always a good idea to have an extra set of eyes looking at your numbers. some of the stuff you may already know, but they may have other ideas you haven't thought of. consider it a "consult" from another service where you're still the primary. it's a relatively small amount of money that is usually very well spent.

and, to sort of echo noyac, think long-term gains, not short term ones. paying off your entire school loan debt may feel good in the short run, but it may not be the best use of your money.

just my $0.02.

 

[Mman]

I'm sitting here with around $170,000 in debt. I plan on deferring as long as possible and paying the minimum as long as possible because my loans are locked in at 1.7% interest annually because I hit the jackpot graduating in 2005. I have plain old savings accounts at places like ING and HSBC paying over 5% right now. It'd be financial suicide to pay off loans that accrue less interest then you can make by saving/investing.

 

[EtherMD]

I'm sitting here with around $170,000 in debt. I plan on deferring as long as possible and paying the minimum as long as possible because my loans are locked in at 1.7% interest annually because I hit the jackpot graduating in 2005. I have plain old savings accounts at places like ING and HSBC paying over 5% right now. It'd be financial suicide to pay off loans that accrue less interest then you can make by saving/investing.

You are correct. But, $170,000 SEEMS like a lot of money to you now. Over the next three years you could have three categories of savings: Student Loans, House down-payment and investment/general savings. This way you can pay off some debt while acquiring money for the other two categories.
You can even vary the percentage you place in each category depending on your priorities.

The stock market can be a dangerous place and the earnings are not guaranteed. Historically, you will earn 7-8% (after taxes and fees) on your returns but there is no guarantee that the market won't slump for a few years. I wouldn't want to carry $170,000 of student debt with me for life.
But, the interest rate is extremely low and you can do better investing in just about anything else. That said, there is great personal satisfaction in paying off those loans. The day that I paid my last loan off felt almost as good as the day I bought my First Mercedes-Benz. A truly momentous occasion with great satisfaction.🙂

 

[Taurus]

I agree with EtherMD. Pay off your debt. You'll sleep better at night.

 

[EtherMD]

I agree with EtherMD. Pay off your debt. You'll sleep better at night.

I want to add that Earnings growth (your money will earn 8% annually) is THEORETICAL while debt incurred is reality. You can work on the former but not without some of the latter as well.

I know many MD's who took a real hit during the stock market crash of 2000-2002. Here it is five years later and they are still not 100%. Many will tell you that they haven't made any real money since 1999. In other words, anyone promosing you more than 9% per year returns on average going forward today is full of crap. Your real return may be even be negative for the next three years and during this time you could have paid off those student loans.

This is why you need to develop a strategy for paying off debt and saving money. There is no reason to completely ignore one and focus on the other.
There are many things you will purchase in the future for personal satisfaction: cars, jewelry, watches, vacations (Vail or Disney), etc. All of these items may total $100,000 or more over the next few years. Yet, you will purchase them because life is about more than just saving money.
After all, you could rent a rat-infested apartment, drive a 20 year old Honda and eat dog food. Imagine how much money you would save over three years by doing this as an attending Anesthesiologist. Now, compound that money at 7% for a lifetime. Interested?

My point is that life is more complicated than just the obvious. Student Loan debt while cheap is not something SOME of us want to carry until retirement.
However, for the risk takers out there cheap debt should never be paid off because there is opportunity to earn more elsewhere.

History has shown that this philosophy has its own set of pitfalls. A person can easily get in over his head by ignoring CHEAP debt and purchasing items he may not be able to afford in the future.