Long time WCI reader, first time poster, so here it goes.
I am interested in getting the WCI opinion to my dilemma of whether or not to start a taxable investment account vs. working harder to pay down debt.
A little background on my starting position. I am a fairly new Anesthesiologist who is just becoming a partner in my private practice group (about one year in). I have ridiculous amounts of debt which is almost exclusively student loan and mortgage, net worth is -888,000 roughly. Yes, I bought the big MD house, and both my wife and I are professionals with great salaries however we also have the accompanying student loan debts, but otherwise we are still fairly frugal. We definitely are living on less than 50% of net. We both max out retirement accounts, 18k for her and 52k for me and this is our first year of doing the backdoor Roth (thanks WCI). We have a emergency fund that I am comfortable with (won't give a number as that may spark a whole other debte).
The other part about me is that I am interested in a (fairly) early retirment, lets say 50-55. I am not a gunner, FIRE, person, but I don't want to be making life and death decisions at 70yrs old either. Previously I had been focused on debt however my father who is just turning 65 is in poor health and this make me think. Given the genes in my family, I will likely not live to see 75 or 80 even without being obese or smoking or any other crazy vices. Cancer, sucks. So while I am happy to max out retirement accounts I go back and forth on whether I should kill myself to payoff debt or start a new taxable account so that it could have time to grow (about 20 yrs until I am 50-55)? I don't want to work until around 65, have a huge retirement account that I can now tap, tax free, only to find myself tapping out soon thereafter. I would much rather retire young, enjoy life (travel, kids, second career etc) and am interested in the best way to do this while balancing getting debt free vs. having the cash on hand to live life.
Thoughts and opinions are welcome, facts and or calculators that may help make the decision more objective or even more appreciated.
I am interested in getting the WCI opinion to my dilemma of whether or not to start a taxable investment account vs. working harder to pay down debt.
A little background on my starting position. I am a fairly new Anesthesiologist who is just becoming a partner in my private practice group (about one year in). I have ridiculous amounts of debt which is almost exclusively student loan and mortgage, net worth is -888,000 roughly. Yes, I bought the big MD house, and both my wife and I are professionals with great salaries however we also have the accompanying student loan debts, but otherwise we are still fairly frugal. We definitely are living on less than 50% of net. We both max out retirement accounts, 18k for her and 52k for me and this is our first year of doing the backdoor Roth (thanks WCI). We have a emergency fund that I am comfortable with (won't give a number as that may spark a whole other debte).
The other part about me is that I am interested in a (fairly) early retirment, lets say 50-55. I am not a gunner, FIRE, person, but I don't want to be making life and death decisions at 70yrs old either. Previously I had been focused on debt however my father who is just turning 65 is in poor health and this make me think. Given the genes in my family, I will likely not live to see 75 or 80 even without being obese or smoking or any other crazy vices. Cancer, sucks. So while I am happy to max out retirement accounts I go back and forth on whether I should kill myself to payoff debt or start a new taxable account so that it could have time to grow (about 20 yrs until I am 50-55)? I don't want to work until around 65, have a huge retirement account that I can now tap, tax free, only to find myself tapping out soon thereafter. I would much rather retire young, enjoy life (travel, kids, second career etc) and am interested in the best way to do this while balancing getting debt free vs. having the cash on hand to live life.
Thoughts and opinions are welcome, facts and or calculators that may help make the decision more objective or even more appreciated.
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