How much student loan you got? how much is too much??

[confettiflyer]

I just rolled my eyes reading stupid advices
-_____-; takes too much effort to educate someone.

Oh well, it’s all a zero sum game anyway...so you and I do much better when people are stupid with their money.

A fool and his money are soon parted.




Sent from my iPhone using SDN mobile

---

Members don't see this ad.

 

[Greeney]

I graduated in 2014 with 185K total debt

I graduated the same year. That's the amount most of my classmates and I owed in principal. With interest accruing over the years while in school, it ballooned to well over 200k for everyone.

 

[trailerpark]

I graduated the same year. That's the amount most of my classmates and I owed in principal. With interest accruing over the years while in school, it ballooned to well over 200k for everyone.

185K was my complete total after ballooning. I'm hoping to pay it off before Jan 1st 2020

 

[trailerpark]

How much is left? A-a-a-asking for a friend....

85K

 

[NITRAS]

Oh well, it’s all a zero sum game anyway...so you and I do much better when people are stupid with their money.

A fool and his money are soon parted.




Sent from my iPhone using SDN mobile

Zero sum game? Really?

Being serious?

 

[W19]

Zero sum game? Really?

Being serious?

Well, it's a fact of life...

What he said isn't shocking...

 

[NITRAS]

The economy isn’t zero sum. You doing poor investing doesn’t improve my investments.

 

[Amphetamine Salts]

Again, dumb/extreme advice you shouldn’t follow.

Pay yourself first, then your debtors.

1) 3 month emergency fund
2) 401k/403b up to the match
3) high interest loans
4) low interest loans
5) another 3 months into emergency fund
6) maximize 401k/403b
7) after-tax savings (Brokerage, backdoor Roth)
8) 529’s/other misc tax advantages accounts

And buy low ER total market funds or ETF’s from Vanguard. Don’t take investing advice from SDN (laughs)


Sent from my iPhone using SDN mobile

did you read what i said? unless you can get a guarantee higher % with the investment in the stocks compared to your loans then you should continue paying the loans

obviously save for the emergency fund and match your 401k. i did not say to avoid these things

 

[Arjw2]

When I graduate I believe I’ll have somewhere around 400k BUT that’s because it took me 10+ years and a lot of bad choices to get my bachelors degree then I got my masters degree.. so I walked into Pharmacy school with 100k and a baby. I know I see “Why Go” but for me I feel like if I didn’t go I wouldn’t have been able to pay the loans I had already accrued.

 

[PharmFarmed]

When I graduate I believe I’ll have somewhere around 400k BUT that’s because it took me 10+ years and a lot of bad choices to get my bachelors degree then I got my masters degree.. so I walked into Pharmacy school with 100k and a baby. I know I see “Why Go” but for me I feel like if I didn’t go I wouldn’t have been able to pay the loans I had already accrued.

Everyone has their approaches and nothing is a "mistake" especially at the end when you receive a pharmD. Very few people hold a degree as advanced as you. I graduated pharmacy and medical school with over 500K. Dont regret it for a second. Just make sure you do well in school. Ive had classmates from both programs fail out the end of their second year and wasted 60k+. Only then should you ever feel regret.

 

[pencilandpen]

Thanks everyone for your posts and sharing your info.
Wow thats a lot of loans out there. wish you all the best luck in paying them off and hope the economy stays good....

 

[johnpharm01]

When I graduate I believe I’ll have somewhere around 400k BUT that’s because it took me 10+ years and a lot of bad choices to get my bachelors degree then I got my masters degree.. so I walked into Pharmacy school with 100k and a baby. I know I see “Why Go” but for me I feel like if I didn’t go I wouldn’t have been able to pay the loans I had already accrued.

400 k holy ****! If you can pay that off, you could probably bail out sears/kmart.

 

[Swishers]

I'll share a screenshot of my loan repayments. My original plan was 5 or 6 years, but I managed to get it done in about 25 months. No spouse/kids but I do rent an apartment, bought a used car with cash which I wrecked and repaired ($20k expenses overall), and I went on multiple big vacations over that time span.

 

[radio frequency]

I'll share a screenshot of my loan repayments. My original plan was 5 or 6 years, but I managed to get it done in about 25 months. No spouse/kids but I do rent an apartment, bought a used car with cash which I wrecked and repaired ($20k expenses overall), and I went on multiple big vacations over that time span.

That is a rice and beans budget right there! I like that you made both a 52 cent payment as well as an $86k payment.

 

[wagrxm2000]

I'll share a screenshot of my loan repayments. My original plan was 5 or 6 years, but I managed to get it done in about 25 months. No spouse/kids but I do rent an apartment, bought a used car with cash which I wrecked and repaired ($20k expenses overall), and I went on multiple big vacations over that time span.

Unless I'm reading this wrong you made 186k in payments over 2 years plus spent 20k on a car plus we'll say 5k in vacation and oh 30kish in total rental payments (might be way off there).

How did you afford around $240k on a pharmacist salary? A ton of overtime?

I assume I'm looking at something wrong. If I'm not wrong, my second thought Is dang you just lost 3 million dollars by not investing 200k assuming 7% annual return over 40 years.

 

[Swishers]

Unless I'm reading this wrong you made 186k in payments over 2 years plus spent 20k on a car plus we'll say 5k in vacation and oh 30kish in total rental payments (might be way off there).

How did you afford around $240k on a pharmacist salary? A ton of overtime?

I assume I'm looking at something wrong. If I'm not wrong, my second thought Is dang you just lost 3 million dollars by not investing 200k assuming 7% annual return over 40 years.

Between 2016 and 2017, I made $175k at work (after taxes and 401k). I worked an average 15 hours per month "overtime" at regular hourly rate - there's no time-and-half at my company. An additional $80k came in January 2018 from an investment/speculation windfall which I used to finish clearing out the loans. My loose monthly budget for rent, utilities, food, car insurance, etc. was $2,000-$3,000. Also spent a few $1,000 on stocks/ETFs in 2016 that I don't plan on selling for a while.

My original plan was to go on PAYE and invest the money I wasn't putting into loans. But I didn't want to risk getting screwed by the govt at some point during the 2o years of repayments.

 

[wagrxm2000]

Between 2016 and 2017, I made $175k at work (after taxes and 401k). I worked an average 15 hours per month "overtime" at regular hourly rate - there's no time-and-half at my company. An additional $80k came in January 2018 from an investment/speculation windfall which I used to finish clearing out the loans. My loose monthly budget for rent, utilities, food, car insurance, etc. was $2,000-$3,000. Also spent a few $1,000 on stocks/ETFs in 2016 that I don't plan on selling for a while.

My original plan was to go on PAYE and invest the money I wasn't putting into loans. But I didn't want to risk getting screwed by the govt at some point during the 2o years of repayments.

80k huh? What did you speculate on?

 

[Momus]

If you see some people here can amass $1M+ NW as a single income in 10 yrs, you can pay 300k-400k loan in 10 yrs. It's not rocket science.

80k huh? What did you speculate on?

He tripled his $ on BTC

 

[wagrxm2000]

If you see some people here can amass $1M+ NW as a single income in 10 yrs, you can pay 300k-400k loan in 10 yrs. It's not rocket science.

He tripled his $ on BTC

Excellent investment

We're going to have that to negative returns over the next five years.

 

[PA_dud3]

By the time I finish undergrad I'll have less than 22k or so if I work, which I plan on doing. Plus Pharmacy School, it comes to around 140k or less, probably a good bit less if I do a lot of intern work and my family helps a bit. I plan on living at home if I can after school unless I do a residency. I'm content, because I know I will pay them off aggressively.

Also, we took a Dave Ramsey class in high school. I didn't agree with much of it at all, because I knew paying off lower interest loans first was idiotic for people who have six figures of school loans. Just my take on it.

 

[confettiflyer]

By the time I finish undergrad I'll have less than 22k or so if I work, which I plan on doing. Plus Pharmacy School, it comes to around 140k or less, probably a good bit less if I do a lot of intern work and my family helps a bit. I plan on living at home if I can after school unless I do a residency. I'm content, because I know I will pay them off aggressively.

Also, we took a Dave Ramsey class in high school. I didn't agree with much of it at all, because I knew paying off lower interest loans first was idiotic for people who have six figures of school loans. Just my take on it.

Wasn’t he averse to taking out student loans for high paying jobs like pharmacy and medicine? I went on his site just to see what he says and all he talks about is saving up money for school.

If I listened to that advice, I’d be in my miserable but relatively high paying finance job and would probably die early from bad health habits and/or depression from said job.


Sent from my iPhone using SDN mobile

 

[PA_dud3]

Wasn’t he averse to taking out student loans for high paying jobs like pharmacy and medicine? I went on his site just to see what he says and all he talks about is saving up money for school.

If I listened to that advice, I’d be in my miserable but relatively high paying finance job and would probably die early from bad health habits and/or depression from said job.


Sent from my iPhone using SDN mobile

Yep. Nail on the head. I was going to mention this in my earlier post but I'm 99% certain Dave Ramsey's advice caters to people who complete a bachelor's or less and make less than $60k a year. Nowhere in the entire course was a word spoken about post baccalaureate studies of any variety, masters or doctorate. He and his daughter kept insisting that you don't have to take out loans for school and, get this, if you "work your butt off during school you won't have to pay a dime." I'm no financial genius or anything, but I fail to see how anyone doing moderately well academically in college can cover their entire costs working part time somewhere. Techs get paid fairly well in terms of college jobs and I still can only pay a few thousand a year towards it.

He's very anti-loan/anti-debt, I feel like debt (in terms of school loans anyway) are just sort of a "tool" so to speak to reach an end without compromising one's goal. Needless to say I don't place much stock in his strategies. (sorry for lengthy reply)

 

[confettiflyer]

Yep. Nail on the head. I was going to mention this in my earlier post but I'm 99% certain Dave Ramsey's advice caters to people who complete a bachelor's or less and make less than $60k a year. Nowhere in the entire course was a word spoken about post baccalaureate studies of any variety, masters or doctorate. He and his daughter kept insisting that you don't have to take out loans for school and, get this, if you "work your butt off during school you won't have to pay a dime." I'm no financial genius or anything, but I fail to see how anyone doing moderately well academically in college can cover their entire costs working part time somewhere. Techs get paid fairly well in terms of college jobs and I still can only pay a few thousand a year towards it.

He's very anti-loan/anti-debt, I feel like debt (in terms of school loans anyway) are just sort of a "tool" so to speak to reach an end without compromising one's goal. Needless to say I don't place much stock in his strategies. (sorry for lengthy reply)

He’s an extremist, like a terrorist holds to a perverted and unrealistic ideology.

100 virgins in heaven if you don’t take out student loans!!


Sent from my iPhone using SDN mobile

 

[PA_dud3]

He’s an extremist, like a terrorist holds to a perverted and unrealistic ideology.

100 virgins in heaven if you don’t take out student loans!!


Sent from my iPhone using SDN mobile

Here's an excerpt from his radio show that illustrates the "work your tail off" BS mentioned earlier. In medical school, no less.

 

[confettiflyer]

Here's an excerpt from his radio show that illustrates the "work your tail off" BS mentioned earlier. In medical school, no less.

What a dumb f*ck. Dave Ramsey is dumb f*ck.


Sent from my iPhone using SDN mobile

 

[PA_dud3]

What a dumb f*ck. Dave Ramsey is dumb f*ck.


Sent from my iPhone using SDN mobile

Don't get me wrong, I'm not jumping up and down at the fact that I will have 100k or so in loans after Pharmacy School, but I've also done all I can (within reason) to lower that as much as I can (hefty undergrad scholarships, working as much as I can while I'm in school, etc.) I feel anyone would be hard pressed to enter a doctoral program and not take out loans. It's not undergrad, even if Dave Ramsey thinks it may be. Just have to weigh your options I suppose.

 

[GypsyHummus]

Wow, I bet it feels real nice to be debt free.

Now, if you keep your style of living the same, you can invest all that money and be a multimillionaire in like 20 years. Have compounding interest work for you for once lol.

Between 2016 and 2017, I made $175k at work (after taxes and 401k). I worked an average 15 hours per month "overtime" at regular hourly rate - there's no time-and-half at my company. An additional $80k came in January 2018 from an investment/speculation windfall which I used to finish clearing out the loans. My loose monthly budget for rent, utilities, food, car insurance, etc. was $2,000-$3,000. Also spent a few $1,000 on stocks/ETFs in 2016 that I don't plan on selling for a while.

My original plan was to go on PAYE and invest the money I wasn't putting into loans. But I didn't want to risk getting screwed by the govt at some point during the 2o years of repayments.

 

[d2rx]

Ha! Dave Ramsey is a amazing for people who have no willpower with money, and who want it to be simple. That happens to be a lot of the population and he does good for those people. People who are reckless with money is his target audience.

Advanced it is certainly not.

Totally agree with this. I also do not agree with cutting up your credit card. It's stupid. You need to have the will power to not spend that money. The same will power you have not to steal. I only use my credit cards if I can pay it off the next month. I just refuse to pay interest if I can help it.

 

[d2rx]

Graduated in 2015 with ~225k. Down to 118k (3.15% fixed rate). Made 64k working only 4 months in 2015 and put in 12k into 401k. Also maxed out 401k contributions in both 2016 and 2017. I decided to splurge on a car in 2017, spending 27k on a used luxury car, now with 17k balance @ 1.4% fixed ($770/month). I know buying such an expensive car was a stupid move, considering my loans. I currently have 26k in cash and pay 2k monthly towards my student loans. I have no immediate need for my cash savings but its just for emergencies and job loss, etc. I will probably dump a lump sum into my loans at a later time. Rent is $1250/month. I am considering reducing my 401k contributions to the company match for now and focus on loans. I am single and was using 401k to limit my tax exposure.

I am open to feedback and ideas on how to proceed. Thanks!

 

[rxdawg21]

Graduated in 2015 with ~225k. Down to 118k (3.15% fixed rate). Made 64k working only 4 months in 2015 and put in 12k into 401k. Also maxed out 401k contributions in both 2016 and 2017. I decided to splurge on a car in 2017, spending 27k on a used luxury car, now with 17k balance @ 1.4% fixed ($770/month). I know buying such an expensive car was a stupid move, considering my loans. I currently have 26k in cash and pay 2k monthly towards my student loans. I have no immediate need for my cash savings but its just for emergencies and job loss, etc. I will probably dump a lump sum into my loans at a later time. Rent is $1250/month. I am considering reducing my 401k contributions to the company match for now and focus on loans. I am single and was using 401k to limit my tax exposure.

I am open to feedback and ideas on how to proceed. Thanks!

I think you are on the right track. You should have your loans paid off in the next 2-3 years. Will have a paid off car. Will have 26-30k in savings (I hope you are in a high yield account at least) and will have 6 figures in 401k balance hopefully (barring unforeseen crash. I don't see a need to quickly pay off your car as it has a lower interest rate. After your loans are gone if you live similarly you will have 200k plus saved up in a taxable account plus whatever market returns are at that time, plus more than that in your 401k which is a good start considering where you started from.

 

[d2rx]

Thanks for the feedback. I also have 98k in total investments in the same time frame (401k, Roth, vanguard index funds and taxable accounts).


Sent from my iPhone using Tapatalk

 

[d2rx]

Yep. Nail on the head. I was going to mention this in my earlier post but I'm 99% certain Dave Ramsey's advice caters to people who complete a bachelor's or less and make less than $60k a year. Nowhere in the entire course was a word spoken about post baccalaureate studies of any variety, masters or doctorate. He and his daughter kept insisting that you don't have to take out loans for school and, get this, if you "work your butt off during school you won't have to pay a dime." I'm no financial genius or anything, but I fail to see how anyone doing moderately well academically in college can cover their entire costs working part time somewhere. Techs get paid fairly well in terms of college jobs and I still can only pay a few thousand a year towards it.

He's very anti-loan/anti-debt, I feel like debt (in terms of school loans anyway) are just sort of a "tool" so to speak to reach an end without compromising one's goal. Needless to say I don't place much stock in his strategies. (sorry for lengthy reply)

Personally, I believe Dave Ramsey is anti student loan because he thinks he (taxpayers) will end up footing the bill. He has the same view for med school tuition. He advocates scholarships and working your butt off. He is 100% anti loan for college. I wonder how his kids paid for college.

 

[BMBiology]

I decided to splurge on a car in 2017, spending 27k on a used luxury car, now with 17k balance @ 1.4% fixed ($770/month). I know buying such an expensive car was a stupid move, considering my loans

Used and luxury do not go together. Would you get your gf a used LV purse?

With 27 k, you could have used that money for a down payment on a house.




Sent from my iPhone using SDN mobile

 

[Amphetamine Salts]

why do people max a 401k before they've paid off their loans? i thought the best process was: get the employer match, save an emergency fund, then focus your income on paying off the loans. maxing a 401k and investing in other things will eat into your monthly income. this monthly income could be better used paying down your loans which will accrue more interest as time goes on, slowly draining and killing you. it seems that trying to make investments while you still have loans is a bad idea, and you should only do it if you know you can get a guarantee return that is a higher % than the interest on your loans

 

[PA_dud3]

I would contribute to 401k at least up to the match. Depending on the amount of loans and your situation it would also be wise to max it out if you can.

 

[Momus]

why do people max a 401k before they've paid off their loans? i thought the best process was: get the employer match, save an emergency fund, then focus your income on paying off the loans. maxing a 401k and investing in other things will eat into your monthly income. this monthly income could be better used paying down your loans which will accrue more interest as time goes on, slowly draining and killing you. it seems that trying to make investments while you still have loans is a bad idea, and you should only do it if you know you can get a guarantee return that is a higher % than the interest on your loans

I am kind enough to respond to this right now coz I am bored. Tax savings, withdraw at a cheaper tax rate later, compounded dividend and gains, you only have access to the 401k space once (you miss it this yr, kiss it good bye forever). With $140k income, you have more than enough to do both maxing and paying down student loan. You shield your money against creditor/lawsuit in 401k. Who the hell cares if you delay paying student loans by a mere 6 months? You make enough money to do both. You can refinance and find a better rate around 3-4% with private lender. After missing out JUST 1 year of 401k space $18.5k, you'd lose about $185k in your retirement account total balance after 30 years of compounded gains (8% average return), just because YOU want to pay off your loan 6 months earlier. Dummies like Dave Ramsey followers probably will stop contributing to 401k without thinking rationally. Use your brain, not emotion when dealing with money.

Contribute to 401(k) or Pay Off Student Loans? - The Biglaw Investor

 

[d2rx]

I am kind enough to respond to this right now coz I am bored. Tax savings, withdraw at a cheaper tax rate later, compounded dividend and gains, you only have access to the 401k space once (you miss it this yr, kiss it good bye forever). With $140k income, you have more than enough to do both maxing and paying down student loan. You shield your money against creditor/lawsuit in 401k. Who the hell cares if you delay paying student loans by a mere 6 months? You make enough money to do both. You can refinance and find a better rate around 3-4% with private lender. After missing out JUST 1 year of 401k space $18.5k, you'd lose about $185k in your retirement account total balance after 30 years of compounded gains (8% average return), just because YOU want to pay off your loan 6 months earlier. Dummies like Dave Ramsey followers probably will stop contributing to 401k without thinking rationally. Use your brain, not emotion when dealing with money.

Contribute to 401(k) or Pay Off Student Loans? - The Biglaw Investor

Your explanations are the reasons why I max out my 401k every year. Tax savings for one. As a single pharmacist making 140k a year you pay ~6k less in taxes maxing out your 401k! I refinanced a few months after graduating (4 times so far) and have paid <3% on average on my loans. I recently refinance again, this time at 3.15% fixed. So I’ve been aggressive on both my loans and investing. You don’t get the years you missed out on maximizing your 401k back once gone! I have 78k in my 401k balance right now. So it has appreciated quite a lot. I’m also older than the average new grad, so I don’t have the luxury of waiting to start investing.

 

[GypsyHummus]

Pharmacists make 140K/year? And you tell people to not pursue this field because.....?

 

[PA_dud3]

Your explanations are the reasons why I max out my 401k every year. Tax savings for one. As a single pharmacist making 140k a year you pay ~6k less in taxes maxing out your 401k! I refinanced a few months after graduating (4 times so far) and have paid <3% on average on my loans. I recently refinance again, this time at 3.15% fixed. So I’ve been aggressive on both my loans and investing. You don’t get the years you missed out on maximizing your 401k back once gone! I have 78k in my 401k balance right now. So it has appreciated quite a lot. I’m also older than the average new grad, so I don’t have the luxury of waiting to start investing.

Does your company match? How long have you been contributing to your 401k? Also, do you recommend doing any additional investing to supplement the 401k and/or a traditional IRA? Sorry for the specific questions just curious.

 

[d2rx]

Pharmacists make 140K/year? And you tell people to not pursue this field because.....?

I work a lot of overtime. It’s a free world. Be an astronaut if you want. No one is stopping you.

 

[d2rx]

Does your company match? How long have you been contributing to your 401k? Also, do you recommend doing any additional investing to supplement the 401k and/or a traditional IRA? Sorry for the specific questions just curious.

Just a 3% match. The match is irrelevant to be honest. The tax advantages are more important as a single pharmacist. I graduated in 2015 and have always maxed my 401k. Also maxed out Roth one year. I listen to Dave Ramsey all the time but don’t really follow his advice, which is really meant for people who have no self control.

 

[d2rx]

Does your company match? How long have you been contributing to your 401k? Also, do you recommend doing any additional investing to supplement the 401k and/or a traditional IRA? Sorry for the specific questions just curious.

I also put in 10k in a vanguard index fund early 2016, which now has a little over 13k balance.

 

[NITRAS]

Your explanations are the reasons why I max out my 401k every year. Tax savings for one. As a single pharmacist making 140k a year you pay ~6k less in taxes maxing out your 401k! I refinanced a few months after graduating (4 times so far) and have paid <3% on average on my loans. I recently refinance again, this time at 3.15% fixed. So I’ve been aggressive on both my loans and investing. You don’t get the years you missed out on maximizing your 401k back once gone! I have 78k in my 401k balance right now. So it has appreciated quite a lot. I’m also older than the average new grad, so I don’t have the luxury of waiting to start investing.

Personally, I'm investing in ROTH (ROTH 403b and back door roth IRA). I'm not going to guess at tax rates in 30 years. That is a fool's game, but 25 or 30 years of investing heavily should be a large chunk of change. By using ROTH options, I've effectively investing more and I have more control by avoid RMD.

 

[d2rx]

Personally, I'm investing in ROTH (ROTH 403b and back door roth IRA). I'm not going to guess at tax rates in 30 years. That is a fool's game, but 25 or 30 years of investing heavily should be a large chunk of change. By using ROTH options, I've effectively investing more and I have more control by avoid RMD.

The only time I did Roth was my first year working, when my income was below the limit. How do you do the back door roth?

 

[NITRAS]

Make a non-deductible traditional IRA, then roll to ROTH.

You can't have traditional IRAs for it to work, but it isn't hard.

 

[Amphetamine Salts]

Your explanations are the reasons why I max out my 401k every year. Tax savings for one. As a single pharmacist making 140k a year you pay ~6k less in taxes maxing out your 401k! I refinanced a few months after graduating (4 times so far) and have paid <3% on average on my loans. I recently refinance again, this time at 3.15% fixed. So I’ve been aggressive on both my loans and investing. You don’t get the years you missed out on maximizing your 401k back once gone! I have 78k in my 401k balance right now. So it has appreciated quite a lot. I’m also older than the average new grad, so I don’t have the luxury of waiting to start investing.

my issue with the 401k is that it's irrelevant until you cash it out when you're 60 years old. so at this point you're just taking away from your monthly income, now you have less cash available to actually enjoy your life while you're young and do fun chit with the high salary that you have. all because it's going into an account that you will not see benefits from for decades.

my situation is different. by the time i'm 60 years old i'll already be a massive baller. i'm planning to launch a company and essentially become a mult millionaire in the coming years. how successful will i be when i'm 60? forget about it, i'll have so much money in the bank that a 401k won't matter to me. i have over 3 decades to amass a high net worth. i do not need to rely on a 401k. plus, a 401k is not very satisfying at all. getting a ton of money when you're 60? that's extremely lame. who wants to be an old piece of chit with a lot of money driving an expensive car, super dumb. i would rather use that extra money to enjoy my life when i'm young and still have my youthful energy. i would also rather invest that money in things that will produce quicker results, compared to a 401k that literally offers you no benefit before age 60. now if i ever get to the point where i am balling out earlier than i expected, meaning my monthly net income is very high, then i don't see the problem in maxing a 401k since i'll have plenty of money to do so

Pharmacists make 140K/year? And you tell people to not pursue this field because.....?

right now i have a 120k/year salary once i'm licensed in a month, based on 40 hours per week, and i'm 23 years old. i don't recommend pharmacy because it is too saturated. there are more pharmacists graduating than there are jobs. the job growth for this profession is dead, don't do it

Does your company match? How long have you been contributing to your 401k? Also, do you recommend doing any additional investing to supplement the 401k and/or a traditional IRA? Sorry for the specific questions just curious.

i see that you're pre-pharmacy, here let me give you some helpful advice: get out now. the saturation is too much and the job market is chit

 

[BC_89]

my issue with the 401k is that it's irrelevant until you cash it out when you're 60 years old. so at this point you're just taking away from your monthly income, now you have less cash available to actually enjoy your life while you're young and do fun chit with the high salary that you have. all because it's going into an account that you will not see benefits from for decades.

my situation is different. by the time i'm 60 years old i'll already be a massive baller. i'm planning to launch a company and essentially become a mult millionaire in the coming years. how successful will i be when i'm 60? forget about it, i'll have so much money in the bank that a 401k won't matter to me. i have over 3 decades to amass a high net worth. i do not need to rely on a 401k. plus, a 401k is not very satisfying at all. getting a ton of money when you're 60? that's extremely lame. who wants to be an old piece of chit with a lot of money driving an expensive car, super dumb. i would rather use that extra money to enjoy my life when i'm young and still have my youthful energy. i would also rather invest that money in things that will produce quicker results, compared to a 401k that literally offers you no benefit before age 60. now if i ever get to the point where i am balling out earlier than i expected, meaning my monthly net income is very high, then i don't see the problem in maxing a 401k since i'll have plenty of money to do so


right now i have a 120k/year salary once i'm licensed in a month, based on 40 hours per week, and i'm 23 years old. i don't recommend pharmacy because it is too saturated. there are more pharmacists graduating than there are jobs. the job growth for this profession is dead, don't do it


i see that you're pre-pharmacy, here let me give you some helpful advice: get out now. the saturation is too much and the job market is chit

“Massive Baller”.... 60 and rich being “extremely lame”..... “planning” to launch a company...... + “the saturation is too much” + 23 years old.

I needed a good chuckle

 

[confettiflyer]

If maxing out your 401k puts a dent in your lifestyle, you probably need to reevaluate life.


Sent from my iPhone using SDN mobile

 

[confettiflyer]

I am kind enough to respond to this right now coz I am bored. Tax savings, withdraw at a cheaper tax rate later, compounded dividend and gains, you only have access to the 401k space once (you miss it this yr, kiss it good bye forever). With $140k income, you have more than enough to do both maxing and paying down student loan. You shield your money against creditor/lawsuit in 401k. Who the hell cares if you delay paying student loans by a mere 6 months? You make enough money to do both. You can refinance and find a better rate around 3-4% with private lender. After missing out JUST 1 year of 401k space $18.5k, you'd lose about $185k in your retirement account total balance after 30 years of compounded gains (8% average return), just because YOU want to pay off your loan 6 months earlier. Dummies like Dave Ramsey followers probably will stop contributing to 401k without thinking rationally. Use your brain, not emotion when dealing with money.

Contribute to 401(k) or Pay Off Student Loans? - The Biglaw Investor

+100 for this post

To add in.... remember folks, it's $18,500 per year. THAT'S IT. We make enough that the fact that it's a limit, actually limits our abilities to save.

Every year that passes, that limit is gone, you don't get to make it up as time goes on. If you miss the opportunity in 2018 to put away $18,500, that opportunity is gone forever. Your next best option is to save in a taxable brokerage account (or you can backdoor $5500 into a Roth IRA), but again, missed opportunity.

There should be no excuse given our income levels that we can't max out 401k's and pay down student loans in a reasonable manner.

Consider the math here:

$160,000/yr salary
$18,500 considered below

Option 1: Match 3% first, the rest to student loans
$4800 - pretax, sheltered, sent to 401k
$13,700 - 30% for taxes (it's probably more) = $9590 sent to student loans (above and beyond minimum payment, call it)

Option 2: Max 401k
$18,500 - pretax, sheltered, sent to 401k
--> You did not send $9590 to student loans, therefore that accrues at simple interest of 4% (that's the refi rate now, right?) = $383.60 cost of interest that year.


So... you forego preferential tax treatment, the ability to shield your wealth from civil tort/liability, and paying yourself first....just to save $383/yr on interest?

But we're pharmacists, go pick up some extra shifts if you want to send more to student loans. Easy.

 

[owlegrad]

“Massive Baller”.... 60 and rich being “extremely lame”..... “planning” to launch a company...... + “the saturation is too much” + 23 years old.

I needed a good chuckle

I hate to make fun of someone or degrade their plans/dreams (oh to be young) but "planning to be muliti-millionaire" did cause me to involuntarily LOL

If it were that easy we should all do it! Maybe he and that other poster/entrepreneur will get together and show us all up.