Suggestions on what to do next

[RocketBooster]

-Me: 32yo w/ salary 180k
-Wife: 30yo w/ salary 70k (will be 90-100k+ in 2 years)


Assets:
-6 months emergency fund in bank
-Maxing my 401k and HSA ~130k combined
-Taxable account ~20k
-Fully paid off 2014 vehicle


Liabilities:
-220k in federal loans @ 5.63%- on pause d/t covid. Was in PSLF but now have a good job in a for-profit hospital, but still on track for REPAYE forgiveness. Always thought I would end up back in a non-profit hospital down the road and would switch back to PSLF 10 year track... my crystal ball is blurry now.
-Home 250k @2.875% - Zestimate of 395k
-2020 vehicle 34k left @0%


Suggestions on what to focus on next? Having a hard time deciding; loans obviously are a gorilla on my back but with covid going on and pause on payments it makes me hesitant to refinance.
-Refinance my large federal loans or continue to REPAYE/PSLF?
-Max wife's 403b? (currently at 12%)
-IRAs?
-Pay off 2020 vehicle?
-Other thoughts/advice? Thanks in advance WCI forum.

[WorkforFIRE]

Refinance your student loans. 5.63% is high. max wife 403B. Then put everything else in student loans to pay those off ASAP.
You have solid household income.
live like a resident for 5 years. Get debt controlled.

good luck

[CordMcNally]

1. I’m honestly no longer well versed on the various repayment programs so I’ll refrain from commenting. I do think federal loans will have 0% interest for a long time and maybe forever.

2. Definitely try to max out all your (you and your wife) tax advantaged accounts.

3. I’m generally not a fan of taking out loans for a vehicle but I’d have a hard time telling you to pay it off at this point.

4. It sounds like you’ve got a level head and a plan. The hard part is done. All you have to do is to keep doing things according to your plan. Don’t forget to enjoy life along the way.

[JBME]

1) Max out your wife's 403b.
2) Prioritize Roth IRA/backdoor Roth IRA over taxable.
3) Refinance loans.
4) Kids in the future? anyone planning to take an extended leave from work once baby is born? Do you need to save up for that?
5) Pay off the car. 0% is great but get rid of the payments

[RocketBooster]

1. I’m honestly no longer well versed on the various repayment programs so I’ll refrain from commenting. I do think federal loans will have 0% interest for a long time and maybe forever.

2. Definitely try to max out all your (you and your wife) tax advantaged accounts.

3. I’m generally not a fan of taking out loans for a vehicle but I’d have a hard time telling you to pay it off at this point.

4. It sounds like you’ve got a level head and a plan. The hard part is done. All you have to do is to keep doing things according to your plan. Don’t forget to enjoy life along the way.

#4 is often forgotten while preparing for the future... you are so right.

1) Max out your wife's 403b.
2) Prioritize Roth IRA/backdoor Roth IRA over taxable.
3) Refinance loans.
4) Kids in the future? anyone planning to take an extended leave from work once baby is born? Do you need to save up for that?
5) Pay off the car. 0% is great but get rid of the payments

I like this plan of action. Definitely kids in the future - likely 2023/2024 timeline. Have a 529 started but just a few grand in it.

[Ozarka]

1. I’m honestly no longer well versed on the various repayment programs so I’ll refrain from commenting. I do think federal loans will have 0% interest for a long time and maybe forever.

2. Definitely try to max out all your (you and your wife) tax advantaged accounts.

3. I’m generally not a fan of taking out loans for a vehicle but I’d have a hard time telling you to pay it off at this point.

4. It sounds like you’ve got a level head and a plan. The hard part is done. All you have to do is to keep doing things according to your plan. Don’t forget to enjoy life along the way.

I feel like with all this talk of student loan forgiveness, I never see "politician" promote just dropping the interest rate to something nominal...even something like < 1%. Obviously a heated debate on forgiveness or some $-amount of forgiveness, but I think everyone would agree that not committing usury would be common ground

[Lordosis]

When in doubt it almost always makes sense to save for retirement in tax advantaged accounts. So max those out and do the BDRIRA. If you still have extra money you are left between paying down low interest debt vs taxable account. That can be a tough call and the math probably works for the taxable but paying off the debt is better for cash flow and safer. Might not be a bad idea to knock off the car note prior to any additions to the family just for cash flow purposes in case there is an extended leave.

Student loans?? Who knows. If they start charging you again then of course refinance and pay it off.



Good income for pharmacy. Leadership position or hard to recruit area?

[childay]

Disability insurance?

[endo4jc]

I feel like with all this talk of student loan forgiveness, I never see "politician" promote just dropping the interest rate to something nominal...even something like < 1%. Obviously a heated debate on forgiveness or some $-amount of forgiveness, but I think everyone would agree that not committing usury would be common ground

Excellent usage of the word “usury”.

[RocketBooster]

When in doubt it almost always makes sense to save for retirement in tax advantaged accounts. So max those out and do the BDRIRA. If you still have extra money you are left between paying down low interest debt vs taxable account. That can be a tough call and the math probably works for the taxable but paying off the debt is better for cash flow and safer. Might not be a bad idea to knock off the car note prior to any additions to the family just for cash flow purposes in case there is an extended leave.

Student loans?? Who knows. If they start charging you again then of course refinance and pay it off.

Good income for pharmacy. Leadership position or hard to recruit area?

Leadership position in a semi-hard to recruit area.

I do think I'll wait until early next year when the pause is supposed to end before making the decision to refinance.

Disability insurance?

STD and LTD via employer. I need to get my own... any recommendations on who to use?

[childay]

Leadership position in a semi-hard to recruit area.

I do think I'll wait until early next year when the pause is supposed to end before making the decision to refinance.



STD and LTD via employer. I need to get my own... any recommendations on who to use?

We used one of wci advertisers. You want an independent agent who can run multiple companies quotes. Gender, specialty, medical hx etc all may play a role in best option