Theoretically, can a specialist pay back their 200k loan in 2-3 years?

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kb11 said:
Was very fortunate to have received a small trust fund prior to starting college and immediately started investing with w financial planner. I foresee that I'll have roughly 60k of loans, hopefully can pay off within 2-3 years into residency. I don't see how it's possible though to pay back 200k within that time frame unless you are a SINK or married to someone with low debt and a high income/ a DINK. Start investing early! Most people though will prob be starting families/going through divorces/ putting a down payment for a house which is why I think it is realistically not possible
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Why would you ever put down a down payment on a house (incurring a lot of debt) when you are already carrying hundreds of thousands in debt? I know that many people do, and that your description is probably accurate, but I just don't understand this kind of mentality. When did we start buying things based on which down payments we could afford, rather than, y'know, what we could actually afford overall?
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mehc012 said:
Why would you ever put down a down payment on a house (incurring a lot of debt) when you are already carrying hundreds of thousands in debt? I know that many people do, and that your description is probably accurate, but I just don't understand this kind of mentality. When did we start buying things based on which down payments we could afford, rather than, y'know, what we could actually afford overall?
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You're looking at debt in a vacuum. It's like I ask you, how did Mississippi State play last night? And you answer, great! They scored 41 points!! Well that might sound like a lot but it doesn't tell me anything, because it turns out their opponent scored 51 points and they lost.

Debt burden is only a relevant concept in light of net income. Although I haven't crunched the numbers myself, and this is going to vary based on many factors, it seems likely that the reason so many physicians take out mortgages despite being in debt for school would be because with the salary & lifestyle of a physician, a modest mortgage is easily serviceable.
 
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BlueLabel said:
You're looking at debt in a vacuum. It's like I ask you, how did Mississippi State play last night? And you answer, great! They scored 41 points!! Well that might sound like a lot but it doesn't tell me anything, because it turns out their opponent scored 51 points and they lost.

Debt burden is only a relevant concept in light of net income. Although I haven't crunched the numbers myself, and this is going to vary based on many factors, it seems likely that the reason so many physicians take out mortgages despite being in debt for school would be because with the salary & lifestyle of a physician, a modest mortgage is easily serviceable.
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To me, it's more like asking "how did Mississippi State do last night?" And you answer "great! They're projected to be ahead by 81 net points at the end of the season!" But it turns out that they lost last night's game by 24pts, only no one cares because they know they'll eventually be winning if nothing goes wrong.
 

Considering I know a couple med students who remind me of her, I'm going back and forth as to whether or not she's actually a troll. I reply mostly for the benefit of anyone who reads these posts down the line.... because someone who isn't trolling might actually have these questions. Just hopefully not all of them.
 
mvenus929 said:
Considering I know a couple med students who remind me of her, I'm going back and forth as to whether or not she's actually a troll. I reply mostly for the benefit of anyone who reads these posts down the line.... because someone who isn't trolling might actually have these questions. Just hopefully not all of them.
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Also because troll-hunting is 80x more annoying than the initial trolls. Keep on keeping on, mvenus...ignore the annoying, condescending troll-hunting.
 
sterlingh87 said:
Yeah I volunteered for five years straight while raising two kids and working minimun wage jobs. I never had to spend a dime on volunteering thank-goodness! You just have to look in the right places :)
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sounds like a gigantic waste of time.

Maybe I'm just selfish, but volunteering was a means to an end for me. It got me where I needed to go and that was that. I don't think I can understand the person who actually gives up time willingly because I'd rather be doing a million things instead of volunteering.
 
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notbobtrustme said:
sounds like a gigantic waste of time.

Maybe I'm just selfish, but volunteering was a means to an end for me. It got me where I needed to go and that was that. I don't think I can understand the person who actually gives up time willingly because I'd rather be doing a million things instead of volunteering.
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I am unsure if this post is genuine or if you are riding along with my post's healthy dose of sarcasm...
 
sterlingh87 said:
Yeah I volunteered for five years straight while raising two kids and working minimun wage jobs. I never had to spend a dime on volunteering thank-goodness! You just have to look in the right places :)
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I meant, if I put in work into something, I want to either enjoy it a lot, or get money out of it.
 
kb11 said:
Am not a troll and am actually a senior in undergrad. I'd recommend opening an AMEX high yield savings, which offers 0.8 % ish APY, waiting until you're 30-32 to get married if you're #1 goal is to dissolve and eradicate your debt. You'd be surprised.. My FP tells me physicians are notoriously bad with managing their money. Many blow it on expensive homes and cars shortly out of residency. Your best shot of quickly getting rid of your debt will be educating yourself or hiring someone to manage and provide guidance with your money
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With what money are you opening up a high yield savings account for? Why wouldn't you just pay down your medical school tuition/cost of living in the first place if you have spare money to invest.

Educating yourself is your best bet. Coming from finance, the types of people who manage money either are not great at managing money well or have only their own best interest at heart. Your money growth is only secondary to their earnings. Either way if you educate yourself well, then hiring a financial manager is literally a waste of money.
 
streampaw said:
I meant, if I put in work into something, I want to either enjoy it a lot, or get money out of it.
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If you are going into medicine you had better like volunteering. What you dont seem to understand is that many adcom members view medicine as more than just a secure job, they see it as a calling which only chooses civically motivated and service oriented individuals. Yes, being smart is a part of the equation but its not going to get you into any school by itself. Explaining to an adcom that you didnt do any community service because you wouldnt get paid and didnt think it sounded fun is a one way ticket to rejection.
 
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sterlingh87 said:
If you are going into medicine you had better like volunteering. What you dont seem to understand is that many adcom members view medicine as more than just a secure job, they see it as a calling which only chooses civically motivated and service oriented individuals. Yes, being smart is a part of the equation but its not going to get you into any school by itself. Explaining to an adcom that you didnt do any community service because you wouldnt get paid and didnt think it sounded fun is a one way ticket to rejection.
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Ugh, I guess I will have to do it then. Bummer.
 
kb11 said:
Am not a troll and am actually a senior in undergrad. I'd recommend opening an AMEX high yield savings, which offers 0.8 % ish APY, waiting until you're 30-32 to get married if you're #1 goal is to dissolve and eradicate your debt. You'd be surprised.. My FP tells me physicians are notoriously bad with managing their money. Many blow it on expensive homes and cars shortly out of residency. Your best shot of quickly getting rid of your debt will be educating yourself or hiring someone to manage and provide guidance with your money
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If I have $1000 saved up, and put it into that savings account with 0.08%, then I will gain approximately $8 per year. Um. I don't think that's going to work.
 
sterlingh87 said:
If you are going into medicine you had better like volunteering. What you dont seem to understand is that many adcom members view medicine as more than just a secure job, they see it as a calling which only chooses civically motivated and service oriented individuals. Yes, being smart is a part of the equation but its not going to get you into any school by itself. Explaining to an adcom that you didnt do any community service because you wouldnt get paid and didnt think it sounded fun is a one way ticket to rejection.
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You forget, OP is an expert liar. She fooled an ice cream shop manager once, med school will be a breeze.
 
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gosh, it's a typo. Take a break man
 
darkjedi said:
take it easy bro, i'm just having fun with ya, aren't you having fun
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No time for fun. Prepping to get full ride to Harvard to leverage full ride to OHSU to match derm.
 
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streampaw said:
Ugh, I guess I will have to do it then. Bummer.
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What exactly is the issue? Do have any interests, at all, besides yourself?
Use your interests, find something to volunteer with that incorporates that.
If you like to tutor, go to the YMCA and tutor there (please don't mentor anyone though!!), I love animals so I volunteer with a dog rescue.
 
ciestar said:
What exactly is the issue? Do have any interests, at all, besides yourself?
Use your interests, find something to volunteer with that incorporates that.
If you like to tutor, go to the YMCA and tutor there (please don't mentor anyone though!!), I love animals so I volunteer with a dog rescue.
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To be honest, I don't really know what kind of interests I have, aside from making money. I suppose there is that one computer tutoring place where I can teach people the basics of computers. I'm good at that already. Would this be a good one? http://www.freegeek.org/volunteer/internships/descriptions/#teaching
 
That is what college is for. To learn about what interests you have. Not to fret about your biological clock.
 
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ciestar said:
You have ZERO interests? There has to be something you enjoy doing...
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I enjoy socializing, making money, winning, playing games, listening to music, making new fun friends... Idk what else. And by socializing, I don't mean customer service. I hate customer service lol. And I can't play any musical instrument or whatever, so that's out of the question. I used to resell electronics to make money (buy for cheap, sell for more), but I only did it for a few months until I lost some money, and then I gave up.
 
streampaw said:
I enjoy socializing, making money, winning, playing games, listening to music, making new fun friends... Idk what else. And by socializing, I don't mean customer service. I hate customer service lol. And I can't play any musical instrument or whatever, so that's out of the question. I used to resell electronics to make money (buy for cheap, sell for more), but I only did it for a few months until I lost some money, and then I gave up.
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Duh-Winning-55132393261.png
 
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streampaw said:
I enjoy socializing, making money, winning, playing games, listening to music, making new fun friends... Idk what else. And by socializing, I don't mean customer service. I hate customer service lol. And I can't play any musical instrument or whatever, so that's out of the question. I used to resell electronics to make money (buy for cheap, sell for more), but I only did it for a few months until I lost some money, and then I gave up.
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Retail sucks. It is what it is, but it really taught me patience and I know I'll be dealing with difficult patients for the rest of my life, like I do now.
Then find some kind of organization, and be part of their fundraising committee, come up with ideas on how to make an organization money (although, I doubt you'd enjoy that...)
Or plan some kind of social event...Find some kind of philanthropy on your campus, they exist, just find one and get involved.

There are legit endless opportunities out there.
 
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ciestar said:
Retail sucks. It is what it is, but it really taught me patience and I know I'll be dealing with difficult patients for the rest of my life, like I do now.
Then find some kind of organization, and be part of their fundraising committee, come up with ideas on how to make an organization money (although, I doubt you'd enjoy that...)
Or plan some kind of social event...Find some kind of philanthropy on your campus, they exist, just find one and get involved.

There are legit endless opportunities out there.
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Hmm. I don't know what kind of fundraising committee I should join. Is it possible to start one?
 
streampaw said:
I enjoy socializing, making money, winning, playing games, listening to music, making new fun friends... Idk what else. And by socializing, I don't mean customer service. I hate customer service lol. And I can't play any musical instrument or whatever, so that's out of the question. I used to resell electronics to make money (buy for cheap, sell for more), but I only did it for a few months until I lost some money, and then I gave up.
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What type of games do you like to play? Maybe do something with that.
 
KnuxNole said:
What type of games do you like to play? Maybe do something with that.
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I'm not a hard-core gamer or anything. I'm thinking about games like sims 2, alchemy on android, etc.
 
kb11 said:
Am not a troll and am actually a senior in undergrad. I'd recommend opening an AMEX high yield savings, which offers 0.8 % ish APY, waiting until you're 30-32 to get married if you're #1 goal is to dissolve and eradicate your debt. You'd be surprised.. My FP tells me physicians are notoriously bad with managing their money. Many blow it on expensive homes and cars shortly out of residency. Your best shot of quickly getting rid of your debt will be educating yourself or hiring someone to manage and provide guidance with your money
Click to expand...

Or waisting money hiring someone. Educate yourself, done.
 
streampaw said:
I enjoy socializing, making money, winning, playing games, listening to music, making new fun friends... Idk what else. And by socializing, I don't mean customer service. I hate customer service lol. And I can't play any musical instrument or whatever, so that's out of the question. I used to resell electronics to make money (buy for cheap, sell for more), but I only did it for a few months until I lost some money, and then I gave up.
Click to expand...

Since you want a bunch of kids, perhaps this means you would enjoy playing/spending time with kids (children that are not yours, that is)? I'm sure you could find some type of opportunity to work with children in your community.

Also.. medicine may not be quite like retail... but I would say there is a big "customer service" aspect to it.
 
kb11 said:
@darkjedi , see your point that many FP just want a commission but there are also a handful of competent FP that are fantastic at their jobs. It depends on several factors- quality, experience, training, etc. I'd go with someone who frequently deals with high income earners, network and I'm sure you can find someone. I see that educating oneself is a smart alternative, but at the end of the day its like this situation- if you break your ankle and need surgery, you'd want to go to an Ortho specialist who does the same procedure on a daily basis than a doc who does the procedure less frequently. AMEX savings would be for potential health blips, emergency situations, travel, etc.
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I used to intern at Smith Barney, now the private wealth management group under the umbrella of Morgan Stanley. These people are no smarter than the average person, but successful ones are typically great salespeople.

The most talented individuals in finance are typically working at places like hedge funds, investment banks, venture capital/private equity firms. These are the people that typically have the talent and experience that can actually build any significant value over market. It is not until you approach very high income, in the tens of millions or higher, that you begin to have access to the right fund managers that can potentially get you in with hedge funds and the sorts. A run of the mill FP from a private wealth management branch will more likely than not underperform the market, but still take commission off your money. They are effectively glorified salespeople, albeit very well compensated, perhaps unfairly.
 
darkjedi said:
I used to intern at Smith Barney, now the private wealth management group under the umbrella of Morgan Stanley. These people are no smarter than the average person, but successful ones are typically great salespeople.

The most talented individuals in finance are typically working at places like hedge funds, investment banks, venture capital/private equity firms. These are the people that typically have the talent and experience that can actually build any significant value over market. It is not until you approach very high income, in the tens of millions or higher, that you begin to have access to the right fund managers that can potentially get you in with hedge funds and the sorts. A run of the mill FP from a private wealth management branch will more likely than not underperform the market, but still take commission off your money. They are effectively glorified salespeople, albeit very well compensated, perhaps unfairly.
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And so the rich get richer.
 
kb11 said:
Agree with what you said about best quality. My cousin works at citadel and mom for a private wealth group, so I consider myself lucky I receive free counsel. At the same time though, it's not something you just learn overnight, it takes months and even years from what I've observed to become proficient in and it seems like you have a strong foundation which a lot of med students/residents etc don't have. Finance major or family in finance? on top of this, gambling with a large portion of money is scary, and there comes a point where you have so much money you're better off putting it in CDs with high interest
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You are certainly right about it not being something you can learn overnight. I do however think personal finance is a critical life skill, in the same lines as like knowing how to swim. Personal investing is an extension of good personal financial management. There is definitely not enough emphasis on teaching good personal finance skills to students nowadays. Unless you take finance classes or are lucky enough to have knowledgable and responsible parents/relatives, it is difficult to get exposure to what proper personal finance means. Things like how to properly build credit, knowing your budgets, and knowing how to invest should be things that people learn for themselves.
 
darkjedi said:
I used to intern at Smith Barney, now the private wealth management group under the umbrella of Morgan Stanley. These people are no smarter than the average person, but successful ones are typically great salespeople.

The most talented individuals in finance are typically working at places like hedge funds, investment banks, venture capital/private equity firms. These are the people that typically have the talent and experience that can actually build any significant value over market. It is not until you approach very high income, in the tens of millions or higher, that you begin to have access to the right fund managers that can potentially get you in with hedge funds and the sorts. A run of the mill FP from a private wealth management branch will more likely than not underperform the market, but still take commission off your money. They are effectively glorified salespeople, albeit very well compensated, perhaps unfairly.
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Sadly, very, very true, particularly the bolded parts. I've done much better with my own portfolio simply buying low cost 'market index' funds of various investment types and minimizing the commissions.
 
notbobtrustme said:
To be fair, volunteering is a waste of time. I really haven't met anyone that actually wants to volunteer outside of SDN. Pre-meds do it because it's required. If it was required to finger a donkey to orgasm, pre-meds would end up sucking it up and getting at it.
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Negative. I volunteered at an after school center every week for the past few years and I LOVED it. Playing with/mentoring kids was a real pleasure and I looked forward to it every week. So did all the other volunteers.
 
Don't get mad. I was backing up and I bumped into this.
 
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