Saw this on bogleheads.org and thought it was interesting. Two doctor household going through residency. Carrying $700k+ of student loan debt. Plus a car loan. Seems the juice isn't worth the squeeze from a financial standpoint.
"Household Income
2 physician household, currently in last year of residency
Income: $110k through this June,
Increasing to $200k next summer.
Summer 2020 should increase to $350k range when I am an attending, and then $500k+ after Summer 2022 when she is an attending.
Debt:
-His student loans: $464,000 at 6.4%
Monthly payment $450 now, with expected increase to up to $2,200 in 2022
Plan to aggressively pay this down to the tune of $6000-10,000 per month over 5 years
-Her student loans: $252,000 at 6.0% (will qualify for PSLF)
Monthly payment $250 now, with expected increase to up to $1,100 in 2022
Plan to use PSLF, but save enough in a safeguard fund to be able to pay if off after 10 years if necessary.
-Car loan: $8,000 at 4.6%
Assets:
-Total Assets: $78,000
-Emergency fund (checking + high yield savings at 2%): $24,000
-Roth IRA: $44,000 90/10 in Vanguard. We contribute $11,000 a year to this.
-403b: We will finally have access to a match this year, so we'll both be contributing to 403b at the max amount ($36k yearly) starting this summer.
-PSLF safeguard fund: $5,000 in a CD at 3%."
"Household Income
2 physician household, currently in last year of residency
Income: $110k through this June,
Increasing to $200k next summer.
Summer 2020 should increase to $350k range when I am an attending, and then $500k+ after Summer 2022 when she is an attending.
Debt:
-His student loans: $464,000 at 6.4%
Monthly payment $450 now, with expected increase to up to $2,200 in 2022
Plan to aggressively pay this down to the tune of $6000-10,000 per month over 5 years
-Her student loans: $252,000 at 6.0% (will qualify for PSLF)
Monthly payment $250 now, with expected increase to up to $1,100 in 2022
Plan to use PSLF, but save enough in a safeguard fund to be able to pay if off after 10 years if necessary.
-Car loan: $8,000 at 4.6%
Assets:
-Total Assets: $78,000
-Emergency fund (checking + high yield savings at 2%): $24,000
-Roth IRA: $44,000 90/10 in Vanguard. We contribute $11,000 a year to this.
-403b: We will finally have access to a match this year, so we'll both be contributing to 403b at the max amount ($36k yearly) starting this summer.
-PSLF safeguard fund: $5,000 in a CD at 3%."
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