I'm finishing fellowship in 3 months and the hubby already is an attending; starting in August, we'll both be starting jobs where we'll take home total ~$49k/month after taxes (his salary will be $550k+ bonuses, mine is $475k). Here's a breakdown of our expenses:
-I just refinanced my student loans of $334k @4.7% x 7 year fixed, payment will be $4.7k/month. Hubby has no student loan debt
-Hubby pays child support of $2.5k/month, no kids of our own but hoping for in near future
-We are looking to rent initially at around $2.5k/month and save to buy a home (next year or two?) with max budget of $700-900k
-No other debts, no major expenses anticipated, we are both pretty frugal
-Have about $200k in cash/emergency fund now between us, $400k in retirement funds
-Have all our specialty-specific disability insurance & life insurance in place
My question is: How would you divide up the money each month? My major instinct is to pay off my loans, and quickly. Was thinking of paying $14k/month (triple payments) and paying them off in a little over two years- or even faster than that. Hubby is concerned that if we do that we might be losing out on returns from putting that money in the market instead. In my mind, saving that interest is guaranteed money in our pockets.
Also, we want to save for a down payment on a house to avoid PMI when we buy- how would you decide what to save per month for this versus what we save for retirement? We had a ball park number of $10-15k/month to bank for savings, but don't know if this sounds reasonable or if we are overshooting here.
Appreciate any input! I didn't handle my student loans in the best fashion (didn't know about forgiveness until I was a third year resident, and deferred payments during the first half of my residency) so I want to make sure we go forward on the right foot here on out.
-I just refinanced my student loans of $334k @4.7% x 7 year fixed, payment will be $4.7k/month. Hubby has no student loan debt
-Hubby pays child support of $2.5k/month, no kids of our own but hoping for in near future
-We are looking to rent initially at around $2.5k/month and save to buy a home (next year or two?) with max budget of $700-900k
-No other debts, no major expenses anticipated, we are both pretty frugal
-Have about $200k in cash/emergency fund now between us, $400k in retirement funds
-Have all our specialty-specific disability insurance & life insurance in place
My question is: How would you divide up the money each month? My major instinct is to pay off my loans, and quickly. Was thinking of paying $14k/month (triple payments) and paying them off in a little over two years- or even faster than that. Hubby is concerned that if we do that we might be losing out on returns from putting that money in the market instead. In my mind, saving that interest is guaranteed money in our pockets.
Also, we want to save for a down payment on a house to avoid PMI when we buy- how would you decide what to save per month for this versus what we save for retirement? We had a ball park number of $10-15k/month to bank for savings, but don't know if this sounds reasonable or if we are overshooting here.
Appreciate any input! I didn't handle my student loans in the best fashion (didn't know about forgiveness until I was a third year resident, and deferred payments during the first half of my residency) so I want to make sure we go forward on the right foot here on out.
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