I am pretty much one step above clueless in my investing knowledge, so I apologize if these questions are overly basic or aren't worded correctly! The only book I've read so far is WCI, but just ordered others such as Boglehead's, 4 Pillars, etc. I'm about to graduate residency and begin a faculty appointment at an academic hospital in July where I'll make about 300k. I have about 250k in loan debt at 3% interest, but no other debt. How aggressively should I pay down the loans based on this interest rate and income?
I have three primary avenues to invest pre-tax dollars through work. The first is a 5% employee contribution with 8% match which I will obviously max out. The second and third are 403b and 457 plans (max 17k apiece). However, with these two plans, what's only been shown to me so far have been variable annuities where the Mortality and Expense Risk Charge is 0.80%. Does this make sense? I specifically asked them if plain old mutual funds were available and they said no. My limited knowledge tells me this isn't the wisest investment, but is this better than anything else I can do with the money? I've heard terms thrown around such as backdoor Roth IRA, SEP-IRA, and Solo 401k - are any of these applicable and/or good for me? I plan to read more up on these in the near future.
Thanks in advance!
I have three primary avenues to invest pre-tax dollars through work. The first is a 5% employee contribution with 8% match which I will obviously max out. The second and third are 403b and 457 plans (max 17k apiece). However, with these two plans, what's only been shown to me so far have been variable annuities where the Mortality and Expense Risk Charge is 0.80%. Does this make sense? I specifically asked them if plain old mutual funds were available and they said no. My limited knowledge tells me this isn't the wisest investment, but is this better than anything else I can do with the money? I've heard terms thrown around such as backdoor Roth IRA, SEP-IRA, and Solo 401k - are any of these applicable and/or good for me? I plan to read more up on these in the near future.
Thanks in advance!
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