Hi pfinance. I know you folks gets the occasional med/dent person in here and more specifically I know how much you guys love to tear 'em down. Please feel free! But seriously, I've got some PF questions for you and I hope someone is kind enough o help me answer them. So i'm about to be a new grad. I've got major loans of course ~560k. I am fortunate enough to have a wife and child (Wife 27 years/ Me 30 years/ infant) with me as well and my lovely bride has been accepted to and will matriculate into dental school in the fall (we really love crushing student debt in our household ). Her education will cost around 69k a year for the next four years. Student loans will be required for these expenses across the four years. I intend to pay off the interest that accrues against her loans during the duration of dental school bringing her around** 276**k in total loans.
While she is in school according to my math anyway, I see no other way for me to approach the student loans than to choose the extended REPAYE (revised pay as you ear).
My real question is, how the eff do we become financially responsible adults? Buying a house seems like an insane option (although the housing market in our area is absolutely booming). We live in northern New England in a smallish city. Heres the jist of my budget across the next year (although its itemized further on my excel sheet).
Net Housing including grocery - (rent 1500 with heat/insurance) groceries family of 3 (500) a few other things = 2,260
Student Loan Me 850; Wife 449 (undergrad) = 1299
Auto Expense (200 gas + 264 car lease) = 464
Cell Phone Family =175
Standard Health Insurance 433 + HSA 50 + Life 30 + Disability 28 =650
Childcare = 800
Incidentals (anything fun across the month including things purchased for child, unexpected auto exp etc) = 800
Misc Alcohol = 100
Monthly Income/Salary after tax = 8,540
Net Monthly Expense = 6,470
Net Monthly Savings = 2,070
As you can all see I have no retirement contribution at the moment. At my job i'm eligible for bonus's at my work which will likely round to about an additional 1,500 monthly once I have worked 90 days. Once that starts coming in I'm intending to put that either directly towards retirement, paying off additional wife student loans or saving for a house (if that makes any sense?). Looking for some guidance here.
Without getting too deep into the student loan stuff, with REPAYE I'll pay 15% of my discretionary income after taxes against the loans for 25 years at which point i'm forgiven on the (now enormous because I haven't even touched the principal) balance of the loans and taxed on what is forgiven. Estimated to be around 350k total (in 25 years).
Does anyone have any thoughts on ways I can best manage the savings? I.E. save until you have 20 k or save for your children's college fund or immediately start putting for retirement once you have an emergency fund set up, or PAY THOSE LOANS.
All thoughts, comments, questions or answers are deeply appreciated.
Submitted April 21, 2018 at 07:57AM by VisualEngineering https://ift.tt/2F6mloa
