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01-28-2018, 03:12 PM | #1621 | |
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Location: Scott City KS
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01-28-2018, 03:15 PM | #1622 |
In Search of a Life
Join Date: Jul 2009
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It is fixed on some of the loans and not on some.
If I wanted to be a dentist, I didn’t really have much other options s than take the loans. I graduated and bought a practice right out of school which was scary but I’m a year away from having the practice paid off. Once I can pay off the student loans and the office, it should free up about 6500 per month to really start doing some things with |
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01-28-2018, 03:17 PM | #1623 | |
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Location: Scott City KS
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01-28-2018, 03:17 PM | #1624 |
In Search of a Life
Join Date: Jul 2009
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Dentistry is a great field, don’t get me wrong. It has its faults And isn’t the ideal job as it was for the older dentists here who got out 30 years ago, but still a good gig.
If all goes well, I should be debt free (outside of a mortgage for the house) at 34. So I’m hopeful. It hasn’t and won’t be easy but it is what it is |
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01-28-2018, 03:20 PM | #1625 |
MVP
Join Date: Jan 2007
Location: Missouri
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01-28-2018, 04:42 PM | #1626 | |
Seize life. Be an ermine.
Join Date: Jul 2001
Location: My house
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Quote:
Assuming you can't get your loan interest down, your loan payments are the equivalent of a guaranteed 7% return. If you can deduct the payment, then they're kind of a guaranteed 10% return. Paying into an IRA has the same tax benefit, so if the loan interest is deductible then you have to beat a 7%return, recognizing that it's a guaranteed return. That's probably a breakeven proposition to do over a period of years, and I'd rather eliminate debt. If the loan interest is not deductible, then you just need to beat roughly a 4% guaranteed return on the IRA (7% - tax deduction), which is easy to do in the long term. Did I do the math right there? Someone double check. |
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01-28-2018, 04:50 PM | #1627 | |
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Location: Scott City KS
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01-28-2018, 04:58 PM | #1628 |
In Search of a Life
Join Date: Jul 2009
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I could deduct the interest but I’m not sure on the new tax bill
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01-28-2018, 08:34 PM | #1629 |
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Location: Scott City KS
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01-28-2018, 08:46 PM | #1630 |
In Search of a Life
Join Date: Jul 2009
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Psychologically, I just hate having that over my head. I work my ass off and it’s just a mental drain to think I’m set up to pay that shit until I’m 46.
I just wanna get out from under it. I’ll deal with retirement later. It may not be the best way to go about it but it just wears on me |
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01-28-2018, 09:09 PM | #1631 | |
Seize life. Be an ermine.
Join Date: Jul 2001
Location: My house
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01-28-2018, 09:18 PM | #1632 | |
In Search of a Life
Join Date: Jul 2009
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I know I may miss out on some retirement or some investing, but for my mental stability, I just have to get this done ASAP. It wears on me daily. |
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01-28-2018, 09:36 PM | #1633 | |
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Join Date: Apr 2007
Location: Scott City KS
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My personal philosophy is they’re not collateralized so I work harder on the collateralized loans first. But mine is $240 a month and as cheap interest as my mortgage. |
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01-28-2018, 09:39 PM | #1634 | |
Veteran
Join Date: Oct 2008
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In the coming 12-18 months I foresee market returns exceeding 10%, so it would be economically smarter to be investing over that period, and revisit your strategy afterwards. Obviously, the emotional aspect of paying off debt is difficult to quantify. But from a numbers perspective it makes more sense to invest right now. But ultimately, it's whatever helps you sleep at night. |
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01-28-2018, 09:48 PM | #1635 |
In Search of a Life
Join Date: Jul 2009
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Thanks for the advise guys
My issue is just the length of the payout. I feel like I can still be putting into retirement but I’m just feeling like maxing the debt repayment works better mentally for me. Getting those done in that short of time will free up so much capitol I feel the gains I can make then will make up for it |
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