Pharmacists take home pay?

[RimzyA]

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I was talking to a pharmacist and he was saying that basically take home pay is about 60% of your actual salary. He also said that we don't qualify to have our interest paid on student loans deducted from our taxes. I was wondering if this is true? Can anyone be so kind to give a breakdown of their paycheck? Thank you!

 

[steveysmith54]

see this thread
http://forums.studentdoctor.net/threads/how-accurate-is-this.1173318/#post-17201614

It is very accurate in CA. Each state has their own income tax. In states like Texas, you keep more, while in CA you keep less.

In CA, the chains pay anywhere from 60 to 66 dollars an hour. Hospital really vary, i've seen between 48 dollars t0 78 dollars per hour..... I think most pharmacist that I know keep between 6 to 7K per month.

 

[Lnsean]

I was talking to a pharmacist and he was saying that basically take home pay is about 60% of your actual salary. He also said that we don't qualify to have our interest paid on student loans deducted from our taxes. I was wondering if this is true? Can anyone be so kind to give a breakdown of their paycheck? Thank you!

This is true. You can only deduct interests on student loans if you make less than a certain amount (I think <75,000??). 60% take home is about right after taxes, insurance and all the other deductions.

 

[confettiflyer]

Everyone will have slightly different numbers based on personal characteristics, but 55-60% sounds about right.

 

[pezdispenser]

With $120k income and single, this is how much federal income tax will be withheld according to how many allowances you claim on your W-4:

0: 21.7%
1: 20.8%
2: 19.8%
3: 18.9%

By the way, the baseline number of W-4 allowances to claim if you are single with no other income or deductions is 2. One is for the $4,000 personal exemption and one is for the $6,300 standard deduction that everyone gets. You only go lower if you have other income like per diem jobs or investment income. In fact, you may be able to increase your allowances by 1 for every $4,000 that you exceed the standard deduction.

So, using California as an example:

19.8% Federal income tax
6.2% Social Security
1.45% Medicare
7.6% CA income tax
0.9% CA disability insurance
=====================
36% total taxes

1% health insurance
5% 401(k) contribution
=====================
42% taken out, leaving you with 58% take-home pay

 

[Mad Jack]

With $120k income and single, this is how much federal income tax will be withheld according to how many allowances you claim on your W-4:

0: 21.7%
1: 20.8%
2: 19.8%
3: 18.9%

By the way, the baseline number of W-4 allowances to claim if you are single with no other income or deductions is 2. One is for the $4,000 personal exemption and one is for the $6,300 standard deduction that everyone gets. You only go lower if you have other income like per diem jobs or investment income. In fact, you may be able to increase your allowances by 1 for every $4,000 that you exceed the standard deduction.

So, using California as an example:

19.8% Federal income tax
6.2% Social Security
1.45% Medicare
7.6% CA income tax
0.9% CA disability insurance
=====================
36% total taxes

1% health insurance
5% 401(k) contribution
=====================
42% taken out, leaving you with 58% take-home pay

5% 401k contribution? Enjoy never retiring. Should be at 10%, or even higher if you'd like to retire before 65.

 

[Mad Jack]

• Annual Gross Pay $120,000.00
• Federal Withholding $20,091.25
• Social Security $6,621.60
• Medicare $1,548.60
• California $7,777.04
• SDI $939.40
• Benefits (ins etc) $1,200.00
• 401k $12,000.00

Net Pay

• Net Pay $69,822.11

• Check Date 12/09/2015
• Gross Pay $120,000.00
• Gross Salary YTD $0.00
• Pay Frequency Annual
• Federal Filing Status Single
• # of Federal Allowances 2
• Additional Federal Withholding $0.00
• State for withholdingCalifornia
• Additional State Withholding 0
• Additional Allowances 0
• Regular allowances 0
• California SDI true
• Supplemental Type NONE
• Exempt State false
• Filing Status S
• 401k 10%
• Benefits (ins etc) 1%

 

[pezdispenser]

5% 401k contribution? Enjoy never retiring. Should be at 10%, or even higher if you'd like to retire before 65.

True. I max mine out at 15%/$18k, but for new grads with heavy student loan payments, rent for an apartment in a trendy neighborhood or perhaps even a mortgage, they may not have the ability to do that. Besides, they are already complaining that 58% take-home pay after a 5% 401k contribution doesn't leave enough to live the good life.

 

[Mad Jack]

True. I max mine out at 15%/$18k, but for new grads with heavy student loan payments, rent for an apartment in a trendy neighborhood or perhaps even a mortgage, they may not have the ability to do that. Besides, they are already complaining that 58% take-home pay after a 5% 401k contribution doesn't leave enough to live the good life.

That sort of thinking is exactly what screws people hard when it comes time to retire. The earlier you start investing, the better, and it's much easier to put away 10% that you've never had than to put away 10% you're used to having later. Compound interest is your friend, and, due to taxes, you're really only losing about 6.5% of your pay at a 10% contribution, which really isn't all that much. Couple that with whatever paltry match your company gives you (probably 3-5%) and you end up with a LOT more capital you can access (you can take loans on your 401k for a house, a car, whatever, and you pay back the interest to yourself, for those of you here that aren't aware) when you need it.

Just trying to plant the seeds of financial responsibility 😉

 

[RimzyA]

Thanks for all the information. Another question? Do pharmacists typically receive a tax return? Even with an allowance of 2?

 

[confettiflyer]

That sort of thinking is exactly what screws people hard when it comes time to retire. The earlier you start investing, the better, and it's much easier to put away 10% that you've never had than to put away 10% you're used to having later. Compound interest is your friend, and, due to taxes, you're really only losing about 6.5% of your pay at a 10% contribution, which really isn't all that much. Couple that with whatever paltry match your company gives you (probably 3-5%) and you end up with a LOT more capital you can access (you can take loans on your 401k for a house, a car, whatever, and you pay back the interest to yourself, for those of you here that aren't aware) when you need it.

Just trying to plant the seeds of financial responsibility 😉

Been saying this for years, a lot of people are so single mindedly "GOTTA PAY DOWN MY LOANS ROARR" that they screw themselves over by not saving for retirement.

Even if you try to "catch up" once loans are paid off, you're a) limited to $18k ish a year pre-tax 401k/403b and b) you're just never going to catch up because of compounding.

 

[rxlea]

5% 401k contribution? Enjoy never retiring. Should be at 10%, or even higher if you'd like to retire before 65.

Most places only match to 5 or 6% tops. Depending on age, might be better to contribute only what the employer matches and then utilize other investment options (Roth IRA, IRA, etc.)

 

[BidingMyTime]

Thanks for all the information. Another question? Do pharmacists typically receive a tax return? Even with an allowance of 2?

You mean a tax refund? (obviously all employed people with must do a tax return-unless their income is being claimed on someone else's return) Ideally you want neither a refund or a bill on your tax return. Do most pharmacists end up with a tax refund? Probably, because most people are ignorant and think its a good think to get a tax refund. It isn't, if you are getting a refund, then you need to adjust your exemptions so you don't (and this will be different for everyone, even people making the same salary, someone taking 2 exemptions might get a refund, or they might get a bill, it depends on the actual exemptions and deductions they take on their tax return.)

 

[BMBiology]

Been saying this for years, a lot of people are so single mindedly "GOTTA PAY DOWN MY LOANS ROARR" that they screw themselves over by not saving for retirement.

Even if you try to "catch up" once loans are paid off, you're a) limited to $18k ish a year pre-tax 401k/403b and b) you're just never going to catch up because of compounding.

I can only speak from my experience. Paying off debt reduces risk. I am no longer chained to my job. I can therefore take on more risk and make more money.

I don't think contributing 5% vs. 10% to your 401 k is not going to make that much of a difference for the next couple of years. The bull market has run its course. You now must weigh potential stock market gain/loss vs. student loan interest rate.

My rule is if you owe less than 150 k then it is better to pay it off as soon as possible.

 

[trailerpark]

I agree giving the government a tax free loan is stupid, but some people are so inept at saving that maybe it's the only way for them to put a little money aside each week via the government. But then again those same people probably blow their entire refund on a flat screen TV or to upgrade from the iPhone 6 to the 6s so whatevs.

 

[BMBiology]

There are a few simple ways to reduce your taxable income:

(1) max out your 401 k (18 k)
(2) contribute to your health saving account (3.4 k) or flex spending account
(3) state income tax is deductible. This is huge if you live in a state like California
(4) mortgage interest rate

The best way is not to make money from your job but from investment. Your profit will be taxed as capital gain (15-20% for those earning a pharmacist salary). You still have to pay state tax but you don't have to pay social security tax or medicare tax (for most people).

 

[pezdispenser]

Thanks for all the information. Another question? Do pharmacists typically receive a tax return? Even with an allowance of 2?

New grads will usually get a large refund because:
- you only work half a year making ~$60k but your employer still withholds taxes like you're making $120k, unless you jack up your withholding allowances to like 8+.
- if your last semester of tuition was paid in Jan of that year, you may be able to claim the $2,000 Lifetime Learning Tax Credit. The income phaseout is $55k-65k.
- you may still be able to deduct up to $2,500 in student loan interest because the income phaseout is $65k-80k. This is on top of the standard deduction.

Otherwise, if you're single with one job, no other income and take the $6,300 standard deduction, then 2 allowances should result in close to a 0 refund.

Like I said, you may increase your allowances by 1 for every $4,000 that you exceed the standard deduction, so add up all your state income tax, property taxes, mortgage interest, etc.

If you're married and both work, I highly recommend that on your W-4 you check the box that says "Married, but withhold at higher Single rate". This is to avoid under-withholding at the 'doubled-up' married tax brackets for both people, which will result in a massive tax bill.

 

[confettiflyer]

Yeah I went from a $6k refund to a $6k tax bill my first years out. I'm finally in a steady groove and keep a detailed spreadsheet updated quarterly of a 1040 tax form with actual and projected income on there. I tweak numbers about once a quarter.

 

[Swishers]

New grads will usually get a large refund because:
- you only work half a year making ~$60k but your employer still withholds taxes like you're making $120k, unless you jack up your withholding allowances to like 8+.
- if your last semester of tuition was paid in Jan of that year, you may be able to claim the $2,000 Lifetime Learning Tax Credit. The income phaseout is $55k-65k.
- you may still be able to deduct up to $2,500 in student loan interest because the income phaseout is $65k-80k. This is on top of the standard deduction.

Otherwise, if you're single with one job, no other income and take the $6,300 standard deduction, then 2 allowances should result in close to a 0 refund.

Like I said, you may increase your allowances by 1 for every $4,000 that you exceed the standard deduction, so add up all your state income tax, property taxes, mortgage interest, etc.

If you're married and both work, I highly recommend that on your W-4 you check the box that says "Married, but withhold at higher Single rate". This is to avoid under-withholding at the 'doubled-up' married tax brackets for both people, which will result in a massive tax bill.

So would I put 2 allowances in federal withholding? Or should I put 1 allowance for federal and 1 for state withholding? I ran the numbers on a tax estimator and it projects my refund to be much higher than I expected (withholding is currently 0 for both). I've only been working since July.

 

[pezdispenser]

So would I put 2 allowances in federal withholding? Or should I put 1 allowance for federal and 1 for state withholding? I ran the numbers on a tax estimator and it projects my refund to be much higher than I expected (withholding is currently 0 for both). I've only been working since July.

For 2015, it's probably too late to change your withholding since we're already in December. You'll probably get a refund of several thousand dollars for this year.

But for 2016, yes you should put 2 allowances for federal. I don't know anything about how your state taxes and deductions work so I can't advise you on that.

 

[Eichhoernchen]

I started RPh work in September and set my allowances to 3 so my taxes are around ~31% (I work 32 hours though, not 40). I will change it back to 1 in the new year. Hope I still get a return...

 

[pezdispenser]

Yeah I went from a $6k refund to a $6k tax bill my first years out. I'm finally in a steady groove and keep a detailed spreadsheet updated quarterly of a 1040 tax form with actual and projected income on there. I tweak numbers about once a quarter.

Yeah I also made a spreadsheet with all my paychecks and investment income, with columns for taxes withheld, 401k, etc. Total up each column at the bottom. Then calculate the taxes for the whole year which is basically:

Income + interest + non-qualified dividends + short-term cap gains
- deductions - exemptions
= taxable income. Use the tax brackets to figure the tax on this amount.
+ 15% of qualified div + long-term cap gains
= total tax

Compare this to the taxes withheld and excess Social Security and adjust W-4 allowances to get close to 0.

 

[W19]

Been saying this for years, a lot of people are so single mindedly "GOTTA PAY DOWN MY LOANS ROARR" that they screw themselves over by not saving for retirement.

Even if you try to "catch up" once loans are paid off, you're a) limited to $18k ish a year pre-tax 401k/403b and b) you're just never going to catch up because of compounding.

There is another side to this argument... Some people might argue that when they are debt free, it gives them more freedom to explore other business opportunities... But with the salary of a pharmacist (120k+/year), one can certainly contribute to your 401k while paying your student loan aggressively...

 

[trailerpark]

There is another side to this argument... Some people might argue that when they are debt free, it gives them more freedom to explore other business opportunities... But with the salary of a pharmacist (120k+/year), one can certainly contribute to your 401k while paying your student loan aggressively...

Especially when your company matches 6% like mine does. I can't give up that free money.

 

[W19]

Especially when your company matches 6% like mine does. I can't give up that free money.

That's very generous! The highest I have seen is 5%, and most only match 3% ...

 

[trailerpark]

That's very generous! The highest I have seen is 5%, and most only match 3% ...

Walmart, surprisingly.

 

[pharmgirl2440]

After taxes I make about 5 to 6 k a month . I used to make 7k but i got tired of working so many hours.

 

[PharmDBro2017]

Walmart, surprisingly.

Walmart matches 6%?

 

[trailerpark]

Walmart matches 6%?

Yeah, but you have to wait a year until they will start matching, but your immediately 100% vested after that. You can start contributing yourself at hire though, just have to wait a year for that sweet spot of 6% match and 100% vested.

 

[bananaface]

If you are married and your spouse doesn't work or works a low earning job, you may still be able to deduct up to 2500 in student loan interest. I set my 401k contribution at 13% for now, which is enough to keep our taxable income in the range where student loan interest is deductible.

If you have loans that are not ginormous, refinancing the through SoFi can be helpful. I got my interest rate halved from what Direct Loans was charging.

For those who say save for retirement instead of paying down loans, think of loan interest rates vs investment interest rates. Not paying off these enormous debts down to a refinanceable level before they grow out of hand is just financial suicide via the snowball effect. On a related note, IBR is a joke since what gets forgiven at the end is taxable. A sad, sick joke.

I am taking home about 60 of my paycheck. My state has no state tax, which was a large incentive to move back.

 

[TonyRx]

I'm an RxM, salary is 128K, take home is 91K. Florida, so no state taxes. I do put 4% in 401k profit sharing and pay for health insurance. Not too shabby, seems like Californians have it much worse.

 

[W19]

I'm an RxM, salary is 128K, take home is 91K. Florida, so no state taxes. I do put 4% in 401k profit sharing and pay for health insurance. Not too shabby, seems like Californians have it much worse.

How come your tax liability is so low?

 

[Prepharm1214]

I'm an RxM, salary is 128K, take home is 91K. Florida, so no state taxes. I do put 4% in 401k profit sharing and pay for health insurance. Not too shabby, seems like Californians have it much worse.

I'm currently sitting at $137,597.15 Salary and $83,529.12 take home 🙁; 5% match

 

[confettiflyer]

I'm an RxM, salary is 128K, take home is 91K. Florida, so no state taxes. I do put 4% in 401k profit sharing and pay for health insurance. Not too shabby, seems like Californians have it much worse.

With state taxes yes, but based on your #'s the higher salary in California just about makes up for it (so it's about even). I think I ran through a scenario where a CA RPh making ~$160k is the almost the same as a Pittsburgh, PA $80k.

 

[wagrxm2000]

How many are making $160 though, seems the average is in the $130s and $140s which puts you way worse with taxes and higher cost of living.

 

[cj98]

I make about 140k annually, take home ~80,000. After monthly pharmacy school loan payments, my actual take home is closer to ~55,000 annually. :-(

 

[confettiflyer]

How many are making $160 though, seems the average is in the $130s and $140s which puts you way worse with taxes and higher cost of living.

That's $76/hr, which is about right for Silicon Valley, SF, and the inner Bay Area. It's less in other parts of Northern California, but COL is less in those areas. n = 30.

This isn't starting though, this is more like ~3 years on the job.

 

[Carboxide]

5% 401k contribution? Enjoy never retiring. Should be at 10%, or even higher if you'd like to retire before 65.

It depends on your company matching, though. I put in 6% but currently with my "retirement number" (age + years of service) I actually net 10% of my salary per year, which is the recommended amount per our financial advisers in my age group. As the retirement number increases, that increases as well - so when my number hits 45, I will be netting 15% a year while only contributing 6%.

 

[Mad Jack]

It depends on your company matching, though. I put in 6% but currently with my "retirement number" (age + years of service) I actually net 10% of my salary per year, which is the recommended amount per our financial advisers in my age group. As the retirement number increases, that increases as well - so when my number hits 45, I will be netting 15% a year while only contributing 6%.

It's best to contribute more earlier than more later, care of the lovely thing that is compound interest- most financial advisers really suck at getting people a secure retirement.

Let's do some simple math for illustration, and say you put in 10% of 100k from the age of 25-45, then increase it to 15% from 45-65. At 45, you have $494,031.52, at 65 you have $3,044,003.59. Now, let's flip it around. At 45 with 15%, you have $741,343.76, and at 65 with 10% you have $3,949,403.04. That's a million dollar difference, and this was all assuming an 8% return throughout, which actually minimizes the difference. If you had an aggressive portfolio at 25-45 that netted 10% followed by a less aggressive portfolio that nets 7.5% from 45-65, the difference grows to $4,712,666.78-$3,373,469.84=$1,339,196.94. That's a lot of money to leave on the table- at a 4% sustainable withdrawal rate, the greater of the two nets you a retirement salary of $188,506.67, while the latter nets you $134,938.79, plus whatever bone social security throws you. And this gives you a good amount of money to leave for your children or grandchildren that would likely be exhausted if you followed the typical financial advice that poor people buy into (spend all your money before you die, save the minimum, leave nothing for your kids, etc).

 

[Carboxide]

It's best to contribute more earlier than more later, care of the lovely thing that is compound interest- most financial advisers really suck at getting people a secure retirement.

Let's do some simple math for illustration, and say you put in 10% of 100k from the age of 25-45, then increase it to 15% from 45-65. At 45, you have $494,031.52, at 65 you have $3,044,003.59. Now, let's flip it around. At 45 with 15%, you have $741,343.76, and at 65 with 10% you have $3,949,403.04. That's a million dollar difference, and this was all assuming an 8% return throughout, which actually minimizes the difference. If you had an aggressive portfolio at 25-45 that netted 10% followed by a less aggressive portfolio that nets 7.5% from 45-65, the difference grows to $4,712,666.78-$3,373,469.84=$1,339,196.94. That's a lot of money to leave on the table- at a 4% sustainable withdrawal rate, the greater of the two nets you a retirement salary of $188,506.67, while the latter nets you $134,938.79, plus whatever bone social security throws you. And this gives you a good amount of money to leave for your children or grandchildren that would likely be exhausted if you followed the typical financial advice that poor people buy into (spend all your money before you die, save the minimum, leave nothing for your kids, etc).

I don't disagree as far as the rate of return. Obviously the more time you have to accrue interest, the greater your overall return is. Our retirement company has done a report on how much you need to contribute each year to be able to retire on time, and that's what I've been going with. Once my loans are paid off in 10 years I will be contributing a lot more - but right now 20% of my takehome pay goes straight to that.

 

[wagrxm2000]

It's best to contribute more earlier than more later, care of the lovely thing that is compound interest- most financial advisers really suck at getting people a secure retirement.

Let's do some simple math for illustration, and say you put in 10% of 100k from the age of 25-45, then increase it to 15% from 45-65. At 45, you have $494,031.52, at 65 you have $3,044,003.59. Now, let's flip it around. At 45 with 15%, you have $741,343.76, and at 65 with 10% you have $3,949,403.04. That's a million dollar difference, and this was all assuming an 8% return throughout, which actually minimizes the difference. If you had an aggressive portfolio at 25-45 that netted 10% followed by a less aggressive portfolio that nets 7.5% from 45-65, the difference grows to $4,712,666.78-$3,373,469.84=$1,339,196.94. That's a lot of money to leave on the table- at a 4% sustainable withdrawal rate, the greater of the two nets you a retirement salary of $188,506.67, while the latter nets you $134,938.79, plus whatever bone social security throws you. And this gives you a good amount of money to leave for your children or grandchildren that would likely be exhausted if you followed the typical financial advice that poor people buy into (spend all your money before you die, save the minimum, leave nothing for your kids, etc).

You plan on working until 65? I'd much rather you change your numbers to reflect someone who maxes out their 401k and ira then retires at 55.

 

[Mad Jack]

You plan on working until 65? I'd much rather you change your numbers to reflect someone who maxes out their 401k and ira then retires at 55.

Hey, I was just providing numbers with what they were proposing, not my personal plan.

I'm planning to invest 60% of my earnings and retire at 45-49, depending on how things go. Going to buy a lot of investment properties, max out the 'ol 403b and Roth, etc.

 

[RimzyA]

Is it smart to just put enough to get the company match while paying off student loans then start adding the match determined by the government afterwards? This is assuming a 6 year plan to pay down loans aggressively. That's what I am planning to do post graduation.

 

[pezdispenser]

Is it smart to just put enough to get the company match while paying off student loans then start adding the match determined by the government afterwards? This is assuming a 6 year plan to pay down loans aggressively. That's what I am planning to do post graduation.

I think 6 years is getting a bit too long to start saving for retirement. You'll be in your early 30s right? Which leaves around 30 years to save so you'll need to do about 15%. The longer you wait, the higher the percentage you'll have to save. Also, the most you can put in a 401k each year is $18k which is 15% of $120k, so keep this limit in mind. In your 30s you may also be thinking about buying a house or starting a family which will put even more strain on your budget, such that you may not be able to save 15% anyway.

Best case is to borrow no more than $100k and pay it off within 1-3 years. You can do this by going to cheap pharmacy schools, working as an intern during school and on breaks, and slashing expenses to the bone.

 

[RimzyA]

I think 6 years is getting a bit too long to start saving for retirement. You'll be in your early 30s right? Which leaves around 30 years to save so you'll need to do about 15%. The longer you wait, the higher the percentage you'll have to save. Also, the most you can put in a 401k each year is $18k which is 15% of $120k, so keep this limit in mind. In your 30s you may also be thinking about buying a house or starting a family which will put even more strain on your budget, such that you may not be able to save 15% anyway.

Best case is to borrow no more than $100k and pay it off within 1-3 years. You can do this by going to cheap pharmacy schools, working as an intern during school and on breaks, and slashing expenses to the bone.

I do appreciate the insight. I am graduating in May, with at least 180K in student loans, undergrad + pharmacy school. That's why I was considering this option, extending the payment period and paying more interest is a concern that's why I was considering paying It off ASAP while at least getting the match

 

[Ackj]

It's best to contribute more earlier than more later, care of the lovely thing that is compound interest- most financial advisers really suck at getting people a secure retirement.

The problem is that your loans are also compounding. It is honestly a very close call, and small $ amounts could change the outcome as to which is better. It's complicated also. You have to factor in how much tax you're avoiding/deferring by putting more into 401k. Also people have may have several different interest rates on their loans. Depending what rate of return you expect on the investment, it may very well be better to get rid of the compounding loans.

I'm not going to recommend one over the other, it's a lot of calculation and partially a judgement call. Really needs to be looked at case by case.

 

[pezdispenser]

I do appreciate the insight. I am graduating in May, with at least 180K in student loans, undergrad + pharmacy school. That's why I was considering this option, extending the payment period and paying more interest is a concern that's why I was considering paying It off ASAP while at least getting the match

With 180k in loans, you'll have to plan carefully, work hard and make some sacrifices, but you should still be able to make it.

Consider the amount of the match and any waiting period or vesting. Some make you wait 1 year before they match, so I probably would not contribute in the first year to put more towards loans. Some require you to put in 6% and only match half so you only get 3%. I probably wouldn't do this either. A good match is you putting in 4-6% and the employer matching 4-6%, so that's a total of 8-12% for your retirement which should start you off on the right track, and you can increase it some more in 3-5 years when your loans are paid off.

You'll also have to work hard to increase your income. This probably means skipping residency and going straight to retail where you can make $60/hr and pick up overtime as well. If you end up raking in $160k/yr you could live cheaply and pay off $180k in 3 years.

 

[RimzyA]

With 180k in loans, you'll have to plan carefully, work hard and make some sacrifices, but you should still be able to make it.

Consider the amount of the match and any waiting period or vesting. Some make you wait 1 year before they match, so I probably would not contribute in the first year to put more towards loans. Some require you to put in 6% and only match half so you only get 3%. I probably wouldn't do this either. A good match is you putting in 4-6% and the employer matching 4-6%, so that's a total of 8-12% for your retirement which should start you off on the right track, and you can increase it some more in 3-5 years when your loans are paid off.

You'll also have to work hard to increase your income. This probably means skipping residency and going straight to retail where you can make $60/hr and pick up overtime as well. If you end up raking in $160k/yr you could live cheaply and pay off $180k in 3 years.

Thank you! Definitely going to work as much as possible in the first couple of years, so I can make as much as possible. I am currently considering an offer at the corner of happy and healthy.

 

[panasoniku]

With 180k in loans, you'll have to plan carefully, work hard and make some sacrifices, but you should still be able to make it.

You'll also have to work hard to increase your income. This probably means skipping residency and going straight to retail where you can make $60/hr and pick up overtime as well. If you end up raking in $160k/yr you could live cheaply and pay off $180k in 3 years.

Not to change topic, but you have to do what you find joy in. I thought I was on the 3 year loan repayment plan but I burned out of retail and only lasted 11 months. Took a BIG pay cut (I'm talking a brand new Mercedes car every year) but didn't let that affect my outlook on loans *too* much. I now make more than retail so its time to get aggressive with loans again 🙂

 

[pezdispenser]

Not to change topic, but you have to do what you find joy in. I thought I was on the 3 year loan repayment plan but I burned out of retail and only lasted 11 months. Took a BIG pay cut (I'm talking a brand new Mercedes car every year) but didn't let that affect my outlook on loans *too* much. I now make more than retail so its time to get aggressive with loans again 🙂

Sure, that's a fair point and everyone's path is going to be different. My point was just to encourage people to get out of debt, because being debt free gives you so many more options in life. I'm not trying to brag but I paid off all my student loans and mortgage at age 33 and it feels so amazing since I can now do whatever I want. I have about $5-6k/mo in free cash flow which is plenty to buy most things without getting too wild. Or I can throw the money into investments so that it will grow and provide a passive income. Or I could cut my hours or take unpaid time off to go on a vacation. Or I could take a pay cut for the less stressful jobs like you did. Or...