I have a friend who is finishing his family practice residency. He was asking me about setting up an IRA (Roth vs traditional, etc.).
I asked him about his financial situation and he revealed that he owes $460K in student loans! I felt his top priority should be to develop a detailed strategy to attack that 800 lb gorilla. As far as how to do that, I'm not sure. I tend to think the old fashion way is best. Work extra. Cut expenses. Don't buy a house. Don't buy a new car, etc. He also needs to look into refinancing and maybe hope for a government bailout like the banks and auto companies get? Would you put the IRA investing on hold? What else would you advise?
I asked him about his financial situation and he revealed that he owes $460K in student loans! I felt his top priority should be to develop a detailed strategy to attack that 800 lb gorilla. As far as how to do that, I'm not sure. I tend to think the old fashion way is best. Work extra. Cut expenses. Don't buy a house. Don't buy a new car, etc. He also needs to look into refinancing and maybe hope for a government bailout like the banks and auto companies get? Would you put the IRA investing on hold? What else would you advise?
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