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Soon to be new attending in the wake of corona - advice?

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  • Soon to be new attending in the wake of corona - advice?

    Last edited by BigMac; 01-05-2022, 01:25 PM.

  • #2
    Welcome to the board (first post but you've been here for a while I guess)

    I'd put your money into the market. I always advocate lump sum investing. But I can't go against dollar cost averaging into the market right now. Personally a CD isn't attractive to me unless the funds would be needed "soon".

    But... What is the rate on your student loans? Might make sense to take advantage of the interest rate waiver until it's up then kill the loans off. Then CD (or stable bond fund) would be a better choice.

    I wouldn't hold money up for future real estate investing.

    Why are you selling your home?
    $1 saved = >$1 earned. ✓


    • #3
      I would keep $30K -to all of it in high yield savings, as an emergency fund, especially starting out. I’d open a taxable account, and start dollar cost averaging into a two or three fund portfolio when you start working. I’d max my portion of the 401k, and backdoor Roth what I could. But that’s just me.....

      How much cash will be coming your way from the sale of the house? What is your vehicle situation? What are you housing plans when you graduate?


      • #4
        Moving is a good reason...

        At 5.7% I'd pay off the loans before long term investing. So I'd find a high yield savings account & hit the loans hard when the interest kicks back in.
        $1 saved = >$1 earned. ✓


        • #5
          ^^^ Yes. Paying off your loans is a guaranteed 5.7% return on your investment (your payments). Historically the market has returned 10% per year, but looking ahead I always presume 5-6% annual returns. So do many brokerage groups. Future casting & postulating but paying off your loans also gives you stability.

          But if you could get 2%... then I'd be tempted to keep the loans & invest. My personal cutoff is ~5%, but for others I say 4%. Loan rates under that I'd keep the loans. Above that I'd pay the loans off.

          My opinion.
          $1 saved = >$1 earned. ✓