Invest during Medical School?

[Rclark42]

I was curious if anyone would recommend taking out the full amount of medical school loans to have extra money to invest during the medical school years. I have a little over $29,000 that I saved during undergrad and have been investing the last couple of years. My investment returns for last year ranged from 10-18%. Any additional loan money is at a 6% interest rate. At most, it would be a couple thousand to gain unless Apple and Amazon have another year at +50%. Did anyone invest during medical school or is it best to just play it safe?

[Zaphod]

no. learn medicine.

[Gamma Knives]

No I would not take out a 6% loan to invest it.

[DMFA]

That's too high a leverage rate imo.  These double-digit return years aren't sustainable.  Since you'll already be losing a pretty high amount to finance charges (which at least doesn't compound), there's probably too great an uncertainty in trying to beat year-in, year-out what you know you'll be losing to interest accrual.

Besides, you likely won't have any earned income if you're on loans, and that money would be going into a taxable account instead of, for instance, a Roth IRA, and those capital gains, dividends, and sale of shares will eat into your return a little.

Plus, your energies are better directed toward doing well in medical school and on your USMLE.

[q-school]

i'm not sure i understand the question.

you are asking whether you should invest 29k?

you are asking whether you should take extra loans and invest the money?

 

probably your likely need for the money for medical school was so high we would have told you not to invest in the first place.

then you wouldn't have your 29k.

so the question is whether you should continue (be independent thinker) or take the profit and run (follow traditional recommendations and be glad you didn't get burned)?

[nachos31]

Crixus wrote:

It’s this kind of thinking you see at market tops.

Click to expand...

where's crixus and what have you done with him?!

[Rclark42]

Thanks for the advice. To clarify, currently have 29K of non-loan money invested. Myself and friends from school are toying with the idea of whether to invest additional loan money. This market has given us a false sense of reality. I'm sure we will change our perspective after losing our first 10%.

[q-school]

Rclark42 wrote:

Thanks for the advice. To clarify, currently have 29K of non-loan money invested. Myself and friends from school are toying with the idea of whether to invest additional loan money. This market has given us a false sense of reality. I’m sure we will change our perspective after losing our first 10%.

Click to expand...

or 50%

 

[engerland66]

In a way, I'm glad I didn't discover WCI/personal finance blogs until residency. It allowed to me to take out the loans I needed without stressing. I could throw myself completely into learning medicine. I wouldn't put stock trading on your plate while trying to learn medicine. I would have found it an unnecessary distraction.

[sir_throckmorton]

It's good you saved 29k prior to med school. I would start using that to pay for some of your med school tuition and take out less loan money.