Talk me off this ledge - freaking out over finances

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helpdoc111

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I'm nontraditional - to say the least (early 30s,married, have a 1 year old). I have been accepted into an excellent medical school in a low cost of living city. But I'm leaving a stable and relatively lucrative career to move forward with this dream. We also own two properties (one in the city that we will live in for school, and another that we'll rent out - which should help us actually earn a little income). I have enough saved up for 6 months of mortgage for each property and 6 months of childcare - but NOTHING else. My husband has a pretty good job. We have no debt otherwise. I have probably 200K total in retirement savings. That will end for the next several years.

But 280K (not even considering interest) in debt. So more like 350 to 400K for school?
We want to have another child in the next few years. How the heck....? Should I take a year off?
I'm crazy aren't I? I love the people I work with . But I hate what I actually do. I want to LOVE what I do.

Do I take out the full amount of loans that have been offered? I'm concerned that I may need funds for emergency situations. Also. We haven't been on a vacation in about 5 years. We need to do something to reconnect. Even just a weekend away.

I'm freaking out. I know. Please someone. Tell me it will be okay.

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helpdoc111,

It will be okay (because it has to). I am a financial planner and I can tell that you and your husband are very disciplined (which is probably why you're freaking out a bit). To be in your early 30s with over $200,000 for retirement saved and no debt (other than student loans)-that is amazing!

If you don't love what you do now, wait 30 years. But, it'll be harder to leave then. My thought is that if you can go to school, get into the field of medicine that you'd like, you might as well take advantage of that now.

Yes, you want to have money saved for an emergency which you do with your 6 months of mortgage saved. You also have $200,000 in retirement accounts that you can tap into as a last resort.

Go on a small vacation 3-4 day weekend, relax, and reconnect.

I suspect that the reason you're so upset is because you guys seem to have a pretty good handle on things and this new venture throws a few things off (I'm the same way). You'll pin it down-just work through it bit by bit.

Good luck and have fun on your mini-vacation!
 
I think your biggest worry is school with a family. Sadly, time off once medical school starts is considered a red flag. Depending on which specialty you desire, free time is difficult to come by. Large personal sacrifices will be made on your journey. Residency often includes 70 + hour work weeks.

If you successfully complete everything to independently practice, I don't think the debt is a concern. The biggest problem is when people drop out or fail out. They are stuck with debt and nothing to show for it.
 
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Doctors do find ways to have families. Taking a leave of absence during medical school isn't as big a deal as it used to be, and I do know people who have had children during medical school. Many more who have done so during residency. Pregnant female residents abound at our teaching hospital. Some specialties are more conducive than others.

As for your financial situation? You are FAR better set than me or most premeds, even nontrads. And you will have a working spouse? No problem. You are gonna be fine. Wish I were as set as you.
 
Also, I wouldn't come to SDN for reassurance or encouragement if I were you. There are some people here who really seem to love nothing more than to undermine others and tear them down. Gunner mentality abounds. If they can knock a few other people out of the way, they will feel more competitive.

Look to your spouse and other real life support network members to give you their advice. Find out from them how much they are going to be willing to help you if the going gets tough. Make sure they know how much of the burden you are going to need to ask them to shoulder for the next few years, and that they are willing and able to do so.

And definitely have that get away/reconnect before you go much further down this path. Make sure that, before you disappear into your studies, the people who matter to you know that you love them and will come back out again to be with them again.
 
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I'm nontraditional - to say the least (early 30s,married, have a 1 year old). I have been accepted into an excellent medical school in a low cost of living city. But I'm leaving a stable and relatively lucrative career to move forward with this dream. We also own two properties (one in the city that we will live in for school, and another that we'll rent out - which should help us actually earn a little income). I have enough saved up for 6 months of mortgage for each property and 6 months of childcare - but NOTHING else. My husband has a pretty good job. We have no debt otherwise. I have probably 200K total in retirement savings. That will end for the next several years.

But 280K (not even considering interest) in debt. So more like 350 to 400K for school?
We want to have another child in the next few years. How the heck....? Should I take a year off?
I'm crazy aren't I? I love the people I work with . But I hate what I actually do. I want to LOVE what I do.

Do I take out the full amount of loans that have been offered? I'm concerned that I may need funds for emergency situations. Also. We haven't been on a vacation in about 5 years. We need to do something to reconnect. Even just a weekend away.

I'm freaking out. I know. Please someone. Tell me it will be okay.

You're actually in better circumstances than a lot of medical students. You have a pretty good amount set aside for retirement already. You have a spouse with steady income. You are going to a low cost of living school.

So...you will be okay. Probably more than okay.

As for your loans...you'll have to decide what you want to do. It would likely be possible to take less than the full amount, depending on your husband's income. You'll need to sit down and do some hard planning on that and set realistic budgets for both short term and long term.

As for having a kid - it's certainly possible. I have a friend who was pregnant while on the general surgery interview trail! Realistically though, most women I knew who had kids took time off. They avoided the "stigma" of this by doing a research year and the pregnancy/baby was just a "coincidence" wink wink.
 
You're starting out on a great foot. The fact that you have enough saved up for 6 months of mortgage and childcare is amazing. Your husband has a job, and you have no debt. Your retirement will continue to accrue interest, though, true, you won't be contributing much to it (though I still think you're pretty well off there--I'm in my mid-20s and it will take me many, many years before I can accumulate that much thanks to my current income and debt load).

Children: I had one classmate who actually had a baby, and two male classmates whose wives had babies during med school. They planned it for fourth year, so they could spend some time with the child before going the whirlwind way to residency. It's possible to do without taking a year off. Whether it's appropriate for you to do that will depend on the support of your husband and any other supports you have in the area.

You should take out what you need to cover tuition and school expenses, and then determine a budget with your husband's income to see if you need anything additional for living expenses. You may or may not. If you don't, you shouldn't take it out. You can ALWAYS go to the financial aid office if an emergency comes up and you somehow have already wiped out your savings and need additional loans. You aren't stuck with only the amount you take out at the beginning of the year (though if you take out the full COA, it becomes more difficult to take out more).

And please, take a weekend away. Heck, do a week before starting. Or plan something for your first break. I can tell that you're careful with your money, but that is something that will be worth the expense.

It will be okay.
 
Had a baby during residency. Took 5 weeks off, finished residency on time, didn't have to extend.

Had a baby during fellowship, took 5.5 weeks off, finished fellowship on time.

You can do it.

Good luck.
 
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You can have kids in med school and residency. Maybe not MS3. I'd probably try to avoid having one or being pregnant during intern year too. But come on, life happens. You're in fantastic shape financially and almost surely don't need to take out full loans.

Just be DARN sure that medicine is what you DO want to do the rest of your life. That would be the only really big mistake here.
 
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If you already have a good career, I wouldn't go back to school and collect debt only to have to wait at least 7 years to make a decent income and provide for your family. This is considering your age and the fact that you plan to have another kid on the way...

Your significant other is probably not going to be as happy either vs keeping your current job right now.

Medicine is a field with decreasing reimbursements and is becoming increasingly less noble and it will continue towards that trend. People think doctors are only in it for the money and blah blah blah.

It is a long grind so you better be sure you're willing to put yourself and your family through this before you commit to it.

This wouldn't be a big deal if you are younger or didn't have a family. But that's just my 2 cents.
 
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