Student loan question

[Tobra]

Originally Posted by Esel Mann

Please feel free to call me FoS cuz no amount of Debbie Downing is gonna ruin my day!!! Lol.

Do you even know what an anesthesiologist does?



I do, which is why I am a podiatrist.

We disagree on a heck of a lot, but he is the voice of experience on this one. How many six figure debts have you racked up to get a piece of paper?

[ramonesfreak]

Originally Posted by pavulon

Anyone able to kill all of their student loans in less than a year might be want to consider how many people have to wear their student debt every day, week, month and year for 20-30 years. It is a soul crushing experience.

graduated law school 24 years ago and have about 5 more payments to go. if i made anesthesiologist money i wouldn’t worry about a damn thing for even a split second. and oh hey, look it’s 9:20 pm and i just stopped working for the day.

[Skillet83]

Pay that biotch off!!!!!!!!!!!

[ramonesfreak]

Originally Posted by pavulon

Have you done any cardiac anesthesia? Let's hear about it!

If you had, you'd understand that an honest mistake or lapse in judgment can spell big, big problems in being able to make payments on a $300k nut at 7%.

in my opinion, a student loan default is not the thing to worry about. ruining your income stream and defaulting on your mortgage is far worse. there are any number of ways to delay collection on a student loan during times of hardship. i spent a decade foreclosing on people’s homes, watching them drive off in a van full of their stuff….doctors, plumbers, lawyers, dentists….everyone is one mistake away from real disaster. defaulting on a student loan is at the bottom of my list of worries and i’ve dealt with my own $200k plus student loans

that said, if the guy can pay them off soon, he should go for it

[Seahawk]

Saw this earlier this morning, thought of this thread. FYI only!

https://article.smartasset.com/financial-advisor-secrets/?utm_source=pocket&utm_medium=cpc&utm_campaign=poc__falc_content_firefoxnewtab&utm_content=7secrets_questions_green

[Bugsinrugs]

Originally Posted by Seahawk

Saw this earlier this morning, thought of this thread. FYI only!

https://article.smartasset.com/financial-advisor-secrets/?utm_source=pocket&utm_medium=cpc&utm_campaign=poc__falc_content_firefoxnewtab&utm_content=7secrets_questions_green

Thanks, I sent the link to my son.

[Fast Freddy 944]

I flipped burgers to pay for my schooling. Nothing was free for me. Now I owe nothing...

[MRM]

Bugs, Paul's article is a good guide to selecting the type of financial planner that is a stockbroker. Before your son signs on with a stockbroker/financial planner, he should form a relationship with a personal finance financial planner who helps him plan his personal finances and investment strategies. This kind of financial advisor doesn't sell anything. Instead, he charges by the hour or on a flat fee to review the client's situation and establish a plan for him. This would include evaluations like your immediate question of whether to pay off student loans, when is a mortgage vs buying outright makes sense, etc. In addition, a personal financial advisor would help deciding asset allocation, Roth IRA vs 401(k) selection, tax strategies, insurance needs, tax strategies, etc. A stockbroker will tell you he can do these things but they really don't have the expertise. And your son shouldn't trust investment and personal financial strategies to anyone who earns a commission selling anything. Think of a personal financial planner as the transmission that allows your son to put all of his financial engine's power directly onto the road.

Once he gets his strategy in order he will be ready to establish a relationship with someone at a brokerage house who can supervise his investments. He should keep meeting with his financial advisor (not stock broker) at least twice a year to review his asset allocation and again at the end of the year for tax planning. If he does this, he may find he has little need for an investment advisor and that he doesn't need to pay anyone to tell him to balance his investments in three or four index funds.

Here is a short article on the different names 'financial planners" use and what is the real difference in what they do. I would really encourage him to see a fee-based financial counselor before doing any specific investments. https://www.forbes.com/sites/feeonlyplanner/2012/03/15/the-difference-between-a-stockbroker-financial-advisor-and-planner-explained/?sh=4917bf52981a

[Bugsinrugs]

Thanks so much for your insight MRM. I shared this information with my son and he should be sending a PM to follow up on your post. Appreciate your time, careful consideration and assistance.

Originally Posted by MRM

Bugs, your son is in a unique situation that requires specialty advice from someone who has expertise in working with newly high net worth individuals. He is very young, had a very high income, and is emerging from his starving student days with debt that is significant but dwarfed by his immediate future earnings. Ordinary rules of financial planning don’t apply to people like him. He needs to have a plan to maximize the value of his income, savings and investments rather than the more typical advice of paying down debt, establishing a savings account, live below his means, and start a retirement account, etc. The dynamics of financial planning remain the same, but a 30 something making mid-six figures who will soon be a 40 year old earning seven figures or close to it had different needs and should start planning that way from the beginning. He’s going to need tax advice, personal finance advice, investing advice, and everything in between.

He’s making so much money that he doesn’t need financial planning to be affluent for the rest of his life, no matter what he does. His issue is going to be making the most of the money he has coming in and spending and investing it wisely. Even with his student loans, with his income he deserves to live a bit. He’s beyond the beans and mac & cheese to save money days. He’s a high net worth individual with all the privileges and problems that come with that situation. It’s not a matter of being able to retire early and well. It’s more that What he does with his money in his 30s will determine whether he retires with enough for a comfortable condo in Naples or his own island in the Caribbean. That’s a nice planning problem to have, but income at that level will cover up a lot of financial planning sins. It won’t reduce his standard of living to live smarter. That’s what a financial planner can help him do.

He should find a fee-only financial advisor who works with high net worth individuals and has a track record of working with people who rapidly transition from student debt to affluence. He needs to get referrals from people who are satisfied with their financial advisors. Ideally he will have a relationship with someone who holds his brokerage accounts who is different than his financial planner. If you want a referral, PM me and I’ll send you our planner’s information. He would be a good choice and he does not sell securities or work on any commission. That’s the type of planner your son needs to find.

[MRM]

Thanks Bugs. I’m very happy to talk with your son. I still remember the phone call that propelled my wife and I from impoverished grad students with a mountain of debt into upwardly mobile members of the middle class. I hope he’s able to benefit from our experience.

[roccod]

Pay off the loan asap or get it refinanced through the resources like https://norskrefinansiering.no/ . Though you should use a local service

[jamesnmlaw]

$200,000 in the bank? Send that cash to Uncle Sugar. He could down the rest of the student loan in a year.

[Bugsinrugs]

Happy to say…. Because of the expert advice from the community my son will concentrate on paying off his loan before anything else. Thanks all!!!!

[otto_kretschmer]

pay off the loan and wait for the economy to crash to buy a house

live in a box until its paid off

[Bugsinrugs]

Well my son called me today and told me he paid off his loan in full. I told him that I am extremely proud of him. After all the pictures new Porsches he sends me he can now buy a toy. I suggested a house first but it’s his money. Thanks for all the feedback gentlemen!

[A930Rocket]

Fantastic news. Congratulations to him!

[Bugsinrugs]

Originally Posted by A930Rocket

Fantastic news. Congratulations to him!

Thanks, I will pass it on.

[Dantilla]

Excellent!
Nobody ever said: "Gee, I wish I still had student loans hanging around my neck"

That he is asking the questions of what the wise decision is tells me he is heading towards a very secure financial future.

[Bugsinrugs]

I need to throw a shout out to MRM. He talked to my sons girlfriend and gave them great advice along with a referral to a financial planner that my wife and I now use.

[jhynesrockmtn]

Originally Posted by Fast Freddy 944

I flipped burgers to pay for my schooling. Nothing was free for me. Now I owe nothing...

I did as well but did you go to medical school? Completely different situation than me graduating in 1985 with an accounting degree.

Good for your son and paying off his loans quickly. The sky is the limit for him!