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  • #16
    All good points. From the outset, my preferred approach/philosophy with investing is to avoid using what has already been invested and could otherwise grow. Our rate of investment will be lower while we repay the student loans, but our plan is to get aggressive with debt repayment once we have the "larger shovel" of his attending salary on the (somewhat near) horizon after fellowship.

    We're currently writing our IPS...my hope is to use the time of slower investment during debt repayment to make sure we have our plan down, then increase contributions on investments once the debt is gone. At that point, ideally we'll be following through with the same plan we've made, just with higher volume.

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    • #17
      My first reaction to postpone SL debt repayment until he finishes fellowship because of being unable to recover if the marriage doesn’t work out was completely negative. Framing the issue brings up so many other points.

      A better way is matching a debt to the asset.
      House to mortgage.
      Practice buy-in to partnership income.
      Student loan to attending income.

      Its up to you both jointly live on combined finances. Agree not using current assets (of either) to payoff SL. But for a different reason.

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      • #18
        Originally posted by FIREshrink View Post
        I cannot imagine it taking you 30 years to get to $3 million in retirement. With two medical incomes that's probably more like a 10-15 year goal.
        Agree. If not even sooner than 10y post-training. Depending on where/how you live

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        • #19
          Originally posted by Tim View Post
          My first reaction to postpone SL debt repayment until he finishes fellowship because of being unable to recover if the marriage doesn’t work out was completely negative. Framing the issue brings up so many other points.

          A better way is matching a debt to the asset.
          House to mortgage.
          Practice buy-in to partnership income.
          Student loan to attending income.

          Its up to you both jointly live on combined finances. Agree not using current assets (of either) to payoff SL. But for a different reason.
          Philosophically, Tim summarized our perspective well.


          childay and FIREshrink, you bring up a good point regarding financial goal setting. We made the 3M in 30 yrs goal somewhat to make sure it's attainable. Being somewhat early in my path on learning more about personal finance, loan repayment, and investing, the thought of actualizing accumulating wealth is a mindset shift for me. Still feels somewhat fictitious after years without income in school or low income in training. I think it further highlights the value of an IPS. With a defined plan, the rate will increase, but the goal and path to it could/should remain the same.
          We live in a relatively low cost of living area (Midwest), and I have a strong tendency toward frugality, so I have a feeling that once we have a year or two of income potential realized, I will feel more comfortable adjusting timeline.

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          • #20
            It looks like you fell into the trap of early investors hearing the need for diversification and therefore buy multiple mutual/index funds/etfs thinking this diversifies your holdings further. Buying multiple funds doesn't add more diversification, it just adds slight sector/company tilts for more complication.

            1. As a W2 employee there's not many options for tax advantaged accounts. 401k and backdoor Roth IRA. Then HSA if you're eligible.

            2. Just pick FXAIX or FZROX (low/zero cost Fidelity S&P/TSM funds) and stick with that until you need to tax loss harvest later. Fidelity funds are just fine and you don't have to switch to Vanguard unless you want to.

            3. Lump sum wins statistically but with current macro trends, I would favor DCA over the next 3-6 months. Investing more with every large dip we get until you're fully invested through the dips or over the allotted time. To be clear, this is a form of market timing and may or may not be better than lump sum investing. You just need to get your chosen asset allocation and fund selection set and just put it on autopilot. Once you're comfortable with your selections, it's just second nature.

            4. As others have said, I wouldn't aim to pay off student loans aggressively if you're able to refinance to a great rate. Unfortunately most of us are spoiled by refinancing to historically low rates and by the time your SO graduates and refinances, it might not be great anymore. Once you find out that rate in the future, determine if it's worth paying off that debt early or not.

            As for your goal of $3M, with your salary and a random $400k salary for a radiologist, you'll make $560k a year. Saving 20% is $112k a year. Investing $9333 a month at an average of 7% interest for 15-16 years gets you to your $3M goal. Keep doing that for 30 years, that's $10.6M.

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            • #21
              "I think it further highlights the value of an IPS. With a defined plan, the rate will increase, but the goal and path to it could/should remain the same.
              We live in a relatively low cost of living area (Midwest), and I have a strong tendency toward frugality, so I have a feeling that once we have a year or two of income potential realized, I will feel more comfortable adjusting timeline."

              Close. Forget about the "results" of your process in two years. Was it skill of luck? Reevaluate or judge your process. Up 20% in year one and down 10% in year two is an average of 10% that will give you different results.

              https://www.physicianonfire.com/tale-of-4-physicians/

              You need a tool to see where your plan will take you. Use it like a GPS map that shows you an approximate arrival time. How fast your drive (over save) is controllable, but the mileage and traffic (market) aren't. You might be able to get there sooner, but what for? You have got this. No need to wait for two years to plan your journey.
              Personally, $3m is fine. Once you get there, make it $3.5m or $4m. Rinse and repeat until you don't care.

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