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Hey all, I'm a first year anesthesia resident, and I have a question about the best type of investment account to open for a 10 year saving goal.
The background is that I have around $350k in loans from my over-priced private med school. I'm also in a dual training residency program with 5 years of residency total and likely a year of fellowship after, so given the level of debt and length of training staying on REPAYE and going for PSLF makes the most sense for me. I've done a ton of research on PSLF and I'm doing everything correctly at this point. However, given the well-publicized problems with PSLF I also want to save aggressively during the next 10 years in case something falls through I can have a big lump sum ready to throw at the loans then if needed. Basically I don't want to act like my loans are going to be taken care of for 10 years then get screwed if it doesn't work out.
I'm already fully funding Roth IRA and have a 6 month's income rainy day fund in savings. With my additional income, my question is what the best type of account would be to save up for the possibility of PSLF failure. On one hand, I could open a taxable robo-traded investment account and put money there, and pay capital gains taxes when I need to take it out. Alternatively, I could use my program's Roth 403b (no matching) for this purpose and have tax advantages for retirement if I end up not needing the money for loans, however I would face penalties for early withdrawal if I needed it before then. I'm sure there are lots of other options I haven't thought of, and maybe it doesn't matter too much in the end, just thought I'd see if anyone has thoughts!
The background is that I have around $350k in loans from my over-priced private med school. I'm also in a dual training residency program with 5 years of residency total and likely a year of fellowship after, so given the level of debt and length of training staying on REPAYE and going for PSLF makes the most sense for me. I've done a ton of research on PSLF and I'm doing everything correctly at this point. However, given the well-publicized problems with PSLF I also want to save aggressively during the next 10 years in case something falls through I can have a big lump sum ready to throw at the loans then if needed. Basically I don't want to act like my loans are going to be taken care of for 10 years then get screwed if it doesn't work out.
I'm already fully funding Roth IRA and have a 6 month's income rainy day fund in savings. With my additional income, my question is what the best type of account would be to save up for the possibility of PSLF failure. On one hand, I could open a taxable robo-traded investment account and put money there, and pay capital gains taxes when I need to take it out. Alternatively, I could use my program's Roth 403b (no matching) for this purpose and have tax advantages for retirement if I end up not needing the money for loans, however I would face penalties for early withdrawal if I needed it before then. I'm sure there are lots of other options I haven't thought of, and maybe it doesn't matter too much in the end, just thought I'd see if anyone has thoughts!
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