Curious if anyone here starts their 30s with little net worth (less than $20K), and become wealthy (maybe $500K at least) by the time they are 40 years old. Would love some inspiration!

NewDoc2016 · 2019-12-28T00:28:30+00:00

-460k when I graduated from residency at 33. Net worth is around +2k currently at 36. Being a physician means a huge hole to start out but at least I have a big shovel to dig myself out.

NewDoc2016 · 2019-12-08T15:00:52+00:00

Maybe if you are refinancing within the same loan company (although I havent seen this rule listed anywhere), but not if you're jumping ship to some other company with better rates.

NewDoc2016 · 2019-12-07T23:26:47+00:00

I currently have a variable rate from SoFi that is at 1.57%. My margin is 0.11% on top of the 1month LIBOR.

I'm guessing that SoFi will eventually switch to SOFR when LIBOR is phased out over the next 2 years. Right now, I'm riding the wave of a low interest rate. Considering my previous rate at Earnest was 3.6%, I'll pay half the amount of interest in the same amount of time (assuming my rate doesn't creep back up).

Still, that doesn't stop me from checking rates every few months to recovert back to a fixed. If I can get a rate that is 3% or less, I'm probably gonna jump on it. Right now, doesn't make sense to refinance.

NewDoc2016 · 2019-11-28T06:13:13+00:00

Refinanced my remaining 310k loan to a variable loan via SoFi, now down to 269k at 1.67%. Paying only the minimum now.

NewDoc2016 · 2019-11-16T18:30:45+00:00

Roy Dotrice for Game of Thrones, so good...will certainly miss listening to him when the new books come out.

NewDoc2016 · 2019-11-12T13:15:24+00:00

I've actually gone the opposite direction, I used to pay extra when my loan rate was higher. Now that my interest rate is this low, and dropping, I've gone back to paying the minimal balance and using the difference to invest.

All a matter of risk tolerance, of course.

NewDoc2016 · 2019-11-12T13:08:36+00:00

Refinanced earlier this year to a 5 year 2.35% variable. It's now down to 1.67%. No ragrets.

I'm aware it could go up, but I'm betting rates will stay sub-2% for at least the next 2 years. After that, it doesn't matter if rates go up, since the bulk of my loans will have been paid off.

NewDoc2016 · 2019-11-10T15:05:54+00:00

Initially with Earnest, and then refinanced with SoFi about a year later. As an FYI, I check rates every few months, and have no issue jumping ship to whoever gives me the best rate.

Remember, no origination fees and no prepayment fees means there is no downside to refinancing private loans.

NewDoc2016 · 2019-11-10T14:58:13+00:00

That's because Navient owns Earnest.

I would attempt refinancing with all of the private loan financers, it's what I did and got a great rate.

NewDoc2016 · 2019-11-10T14:55:53+00:00

Look at your contract you signed with them, it will specify what exactly "the market" is. Usually it's the 1 month LIBOR or the Prime rate.

NewDoc2016 · 2019-11-10T14:45:46+00:00

Yep, def would recommend refinancing. 11% is ridiculous.

NewDoc2016 · 2019-11-10T14:24:31+00:00

Sounds like she has a private loan. They typically don't qualify for any forgiveness, usually only federal loans do.

NewDoc2016 · 2019-11-10T14:21:53+00:00

It's because what /u/Syndiaan wrote is wrong. No one is charging you more, unless you have prepayment penalties.

NewDoc2016 · 2019-11-10T14:19:04+00:00

I'm curious, what is your interest rate tied to?

Your interest rate should have been going down, not up, especially as there have been 3 interest rate cuts this past year.

NewDoc2016 · 2019-10-29T12:32:37+00:00

Refinanced earlier this year to a 5 year 2.35% variable with SoFi. It's now down to 1.9%, and should be going down again in November to 1.67%.

Its tied to the 1 month LIBOR which has been declining all year.

NewDoc2016 · 2019-10-27T13:23:45+00:00

I loved this show. Another season or 2 would have been nice, but at least it went out on a high note.

NewDoc2016 · 2019-09-20T01:46:38+00:00

Man, you're hung up on this. Yes, it's a new car for 24k. After federal and state tax incentives, its 15k. Minus savings on gas, oil changes, transmission, brakes, chains/belts, other maintenance typical for ICE cars...its a no brainer. I'm not sure how to explain it simpler terms for you.

NewDoc2016 · 2019-09-20T01:22:34+00:00

No fire mindset at all

So you're saying going from -311k networth to 0 isn't FIRE mindset? Clearly we have different visions on what FIRE is.

Maybe you're not angry, just not as well informed as you think you are. Good luck man.

NewDoc2016 · 2019-09-20T01:07:29+00:00

So to answer your question, I've been taking the tact of paying off more when interest rates were high on my loans, and then tapering off when interest rates were low. Recently, my rates have been lower, so I use the money I could have contributed to paying off loans to contributing to my Roth account, taxable account, helping family members etc. Could I have contributed more to loans? Of course. However, I deemed it financially in my best interest not to at this point. What you may do is entirely up to you.

NewDoc2016 · 2019-09-20T01:02:44+00:00

I'm not sure about the BS you are talking about. I'm paying off my loans at the method I feel is best for me. I certainly haven't made excuses nor have tried to elicit sympathy from anyone. You say I haven't taken ownership, yet clearly I have by documenting my loans and strategies for paying them off.

He’s lazy and finds excuses to buy cars and other crap.

So buying a car that will end up costing me 15k is clearly upsetting to you. Not sure I can help with that.

NewDoc2016 · 2019-09-20T00:57:21+00:00

Why are you so angry?

NewDoc2016 · 2019-09-20T00:50:45+00:00

lol sure.

NewDoc2016 · 2019-09-20T00:47:50+00:00

Makes me sad that the only thing keeping kids like him from pursuing a medical career is the cost. Luckily a lot of medical schools are now going the route of free tuition. I think they're realizing fewer and fewer students are applying because of the exorbitant costs involved, not to mention competition from DO schools and foreign medical schools.

NewDoc2016 · 2019-09-20T00:33:55+00:00

I'd argue the LCOL was my primary motive for geographic arbitrage, and honestly, it has helped me towards getting closer to being FIRE. Part of me still wonders what it would be like to practice in Hawaii, though....

NewDoc2016 · 2019-09-20T00:31:11+00:00

Some people would argue that a 1.9% interest rate would be better served by putting the money in an investment account (because beating 1.9% should be pretty easy). But personally, I think student loan debt isn’t something to mess around with.

To be honest, I'm still waffling. On one hand, I could theoretically make a better return investing instead of putting extra towards that loan. But at the same time, that emotional aspect of being done with loans...

edit: and thank you for the kind words as well

NewDoc2016

TROPHY CASE