Hi all,
First post here. I'm about to start my PGY2 year in a Psychiatry residency program and I have some questions regarding how to best proceed with my debt and retirement. not sure if this is in the right forum, so I apologize in advance!
Background information:
1. PGY2 psych resident, income is approximately $56k/year (pretax), wife makes about $33k/year, and we have a 6 month old newborn at home
2. student loans: $350k balance, all direct or grad plus loans, interest rate anywhere from 6.41% to 7.8% for each loan, I once calculated the weighted average of my loans and it's just under 8%, I've accrued about $11k in interest since my loans capitalized when i started PAYE in January 2016.
i did not consolidate my loans, partly because out of ignorance that I was unsure if this would somehow affect me negatively in the future, as I was partly hoping to keep my options open for PSLF. I pay ~$129/month at the moment
3. my program DOES remove a portion of my paycheck each month for a 403b (currently has roughly $3500), and in addition I started saving up for a roth IRA, I currently have $3k and I was going to open an account with vanguard. Prior to this, I have not saved up for retirement (I'm currently 30 years old).
Not sure how to best proceed with my debt and retirement. I read a previous blog post that it would be smart to try to max out my roth IRA while in residency and it sounds like this would still be the case in spite of my substantial medical school debt. Was wondering if there was any additional advice on how to manage my debt, aside from pay it off ASAP once I graduate residency... thank for all your help!
First post here. I'm about to start my PGY2 year in a Psychiatry residency program and I have some questions regarding how to best proceed with my debt and retirement. not sure if this is in the right forum, so I apologize in advance!
Background information:
1. PGY2 psych resident, income is approximately $56k/year (pretax), wife makes about $33k/year, and we have a 6 month old newborn at home
2. student loans: $350k balance, all direct or grad plus loans, interest rate anywhere from 6.41% to 7.8% for each loan, I once calculated the weighted average of my loans and it's just under 8%, I've accrued about $11k in interest since my loans capitalized when i started PAYE in January 2016.
i did not consolidate my loans, partly because out of ignorance that I was unsure if this would somehow affect me negatively in the future, as I was partly hoping to keep my options open for PSLF. I pay ~$129/month at the moment
3. my program DOES remove a portion of my paycheck each month for a 403b (currently has roughly $3500), and in addition I started saving up for a roth IRA, I currently have $3k and I was going to open an account with vanguard. Prior to this, I have not saved up for retirement (I'm currently 30 years old).
Not sure how to best proceed with my debt and retirement. I read a previous blog post that it would be smart to try to max out my roth IRA while in residency and it sounds like this would still be the case in spite of my substantial medical school debt. Was wondering if there was any additional advice on how to manage my debt, aside from pay it off ASAP once I graduate residency... thank for all your help!
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