Student loan payments: get advice and actual numbers here

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Anonymous User
Posts: 329053
Joined: Tue Aug 11, 2009 9:32 am

Re: Student loan payments: get advice and actual numbers here

Postby Anonymous User » Thu Feb 07, 2019 9:37 am

mak_ wrote:Why are you shotgun posting the same silly responses throughout this thread? Not only is not immediately paying off your loans always “dumb,” it is often objectively the right move. His/her loans are only at 1.95%. You could be that even by just putting your cash in a high-yield savings account.


It's an odd troll/schtick. Maybe some Dave Ramsey acolyte? Regardless, it's someone who clearly doesn't understand how to use basic finance Excel functions like NPV and XIRR.

My brokerage account is in tax exempt bond funds so I'm exceeding the loan rate by 1%+ and only paying state income taxes on the interest with low risk/low volatility. And another reason I'm not paying off loans yet is the house purchase I alluded to in the 2018 post.

Anonymous User
Posts: 329053
Joined: Tue Aug 11, 2009 9:32 am

Re: Student loan payments: get advice and actual numbers here

Postby Anonymous User » Fri Feb 15, 2019 10:55 am

Anonymous User wrote:My stats:
3rd yr associate in biglaw in secondary market. Had $15k total scholarship at T6. For my first year, I kept my federal loans, which were around 6.5-9%. Then once I realized I wasn't getting fired anytime soon, I refinanced with SoFi for a 5yr fixed rate of 3.865%. My monthly payment is $3,700, but I pay $4,300, then put a good chunk of my bonus towards them. Hoping to pay them off in another 2.5 years.

February 2016: $223k
February 2017: $199k
February 2018: $157.5k

Investments:
Maxed out 401k each year
~$11k in Wealthfront at 9.0 risk. Contribute $500 a month.
~$9k in a rainy day fun. Contribute $100/m (my first year I contributed around $600/m). Admittedly, I consider wealthfront to be my very rainy day fund, at least while the market is good.
~$10k in crypto (I sold enough to recoup my initial investment so this is more play money. Not used to calculate net worth/what mortgage i could afford/or to be actually relied on etc.)


This is me from year ago, so I wanted to update my stats:

Now 4th yr biglaw associate in primary market. My monthly payment is still $3,700. I started paying $5k a month since last summer. Last year, I put a good amount of my bonus into moving and furniture. I am hoping to pay off the loans in March 2019 when my bonus hits, but that might get pushed back to save up for a down payment on a home. My biggest decisions right now are how to apportion between paying off loans and saving for a house, and whether I should leave biglaw immediately after paying off my loans or stick around as long as possible to get that paycheck.

February 2016: $223k
February 2017: $199k
February 2018: $157.5k
February 2019: $105.5k

Investments:
Max out 401K
~$18k in investments
$14k rainy day fund
lol@crypto.



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