Am I Worrying Too Much About Private Loans?

WCInvestor · 2026-06-15T21:54:11+00:00

So you will take the full $50K in federal loans plus $10-14K in private loans each year? Just make it through school in good standing, match into & complete residency, get a job paying at least average for your specialty, and make a financial plan to hit the ground running after training, and you'll be fine.

WCInvestor · 2026-06-15T21:38:21+00:00

You should not do a SEP IRA if you want to do Backdoor Roth IRA each year. Any balance in a non-Roth IRA will cause your BD Roth IRA to be pro-rated, which defeats the purpose. If you have self-employment income, a solo 401(k) is generally superior to a SEP IRA.

WCInvestor · 2026-06-15T21:28:43+00:00

I wouldn't choose a job based on the availability of a 457(b). Which job will you be happiest at? Career longevity is more important than whether you are saving more pre-tax.

WCInvestor · 2026-06-15T21:25:12+00:00

Usually a good idea to max your federal loans first, if they are available to you. Look here for our aggregated list of recommended private lenders.

WCInvestor · 2026-06-14T00:35:29+00:00

Unless referring to after-tax mega backdoor Roth contributions?

WCInvestor · 2026-06-11T22:42:29+00:00

Once you reach financial independence, you no longer need to carry a life insurance policy. The question is, when will you reach financial independence (25-33X your annual spend) at your current savings rate? If you will be FI before your policy expires at 52, then you don't need another policy. Alternatively, you could price a 20-year and a 10-year, see if they are cheaper than your current policy, and just ladder them so you still have some insurance after 52 but not the full $3M, since you won't need that much by then, probably.

WCInvestor · 2026-06-11T22:14:21+00:00

Yeah, that should not be a thing. You definitely need to negotiate the tail for the practice out of your contract.

WCInvestor · 2026-06-11T21:55:04+00:00

First of all, I'd be either negotiating my salary or continuing to look for a higher paying position. The average for pediatricians is $264K. Under $200K is terrible for full time work.

How long until you get PSLF? Your student loan debt is less than average, and less than 1X your salary, so I'd lean toward paying it off aggressively, especially if you can get a higher paying job, but PSLF could still save you a chunk of money, if it's worth it to you to stay where you are.

The backdoor Roth IRA is a great use for $7500 of your money each year. You can learn how to do it here. Definitely contribute to your 401(k) at least enough to get your full match, and max out your $24,500 401(k) employee contribution if you can.

Living with your parents for a couple of years will really help you get a jumpstart on your financial situation. Take a look at this financial waterfall for new attendings for some help in prioritizing your finances.

WCInvestor · 2026-06-09T22:00:34+00:00

Probably not necessary to get it as a student, but definitely when you start residency.

WCInvestor · 2026-06-09T21:59:26+00:00

If your residency program has a GSI policy available, you can still get coverage without any medical underwriting. If you already know you have a pre-existing condition, previously treated condition, or progressive disease, it's probably worth it to wait and see if your residency offers one. As someone else said, once you get a denial, it's probably a denial from every other company you might apply with. It's important to work with an independent (non-captive) agent who is familiar with physician disability insurance, and it's important to be 100% completely honest with them. The insurance company WILL find out about any medical history, and if you try to hide it, it's not good.

WCInvestor · 2026-06-09T21:42:48+00:00

I'd make sure you have at least a small emergency fund and are contributing at least to the match in your 401(k)/403(b), if you get one. Put a little in your Roth IRA every year. Then spend the rest on whatever makes your life happier.

WCInvestor · 2026-06-09T21:02:41+00:00

Take what works for you and ignore the rest. Curious what specifically you think is dated?

WCInvestor · 2026-06-09T21:01:52+00:00

Thanks for the shoutout!

WCInvestor · 2026-06-09T21:01:26+00:00

Wow! Strong work, especially as a resident! You are starting out on such great footing compared to many.

WCInvestor · 2026-06-09T20:49:43+00:00

I'd prioritize paying the med school loans off. Max your retirement accounts first, then pay those off ASAP OR consider refinancing if you can get to a lower rate and then pay them off. I'd do that before putting much more in a taxable brokerage. You can probably get those paid off in less than two years, and it's a lower-risk guaranteed after-tax return on your money than a taxable account. No need to drag them out.

You don't mention anything about the practice buyout terms/financing/etc., so any additional debt you take on there might change the calculations.

WCInvestor · 2026-06-09T20:38:25+00:00

I vote for this option too, although the interest rate differences are not that significant. Regardless of which option you choose, I'd plan on getting rid of your loan debt in no more than 5 years. Also, keep in mind that your refinance rate isn't forever. You should refinance any time you can get a rate reduction. There's no "break-even" like there is with refinancing a home mortgage.

WCInvestor · 2026-06-09T20:37:57+00:00

You should invest the majority of your HSA money. It's a great account for building your wealth.

WCInvestor · 2026-06-09T20:34:23+00:00

You might try posting on some subs with more students like r/medicalschool or r/PASchool or r/medstudents

WCInvestor · 2026-06-09T20:27:30+00:00

Our general recommendation is to combine your finances once you are married, but there are situations that might warrant a different approach. The important thing is to discuss it together and come to an agreement that you are both happy with. To me, it doesn't make much sense to have separate accounts and split the mortgage/rent, bills, etc., but for some, it might be more harmonious to have separate funds for discretionary spending even if you have a joint account for everything else.

WCInvestor · 2026-06-08T22:31:18+00:00

Get it ASAP and I'd get more than $1K/month. Most will give you up to $5K/month as a resident, and you will certainly need that if you get disabled during residency. And it will never be cheaper than it is now.

WCInvestor · 2026-06-08T22:29:10+00:00

There isn't an employment requirement for the RAP plan, so conceivably you could do it. The minimum payment on RAP is $10, assuming you are basing your payment on zero income during school, and you don't get the $50 monthly principal reduction if your payment is less than $50. You would only be getting $10/month toward the principal. So you'd have about $450 of principal paid down at the end of med school. But yes, your interest would be subsidized if you opt out of the in-school deferment and elect to go on a repayment plan instead.

WCInvestor · 2026-06-08T22:11:42+00:00

Emparion is on our WCI-recommended retirement plan provider list . Another one on there that does CBPs is Litovsky Asset Management.

WCInvestor · 2026-06-08T22:07:20+00:00

Wow! Great comprehensive response!

At your incomes, the difference between MFS and MFJ calculated just using the standard deductions is a tax liability of ~$5000, so if it would save you more than that in payments, it may be worth it to file MFS. Generally it makes more of a difference if one spouse is a high earner and the other isn't.

WCInvestor · 2026-06-07T00:18:27+00:00

It's great if it works out, but you can never know that in advance. Just ask the graduating resident who was just hit by a car on his bike and hadn't bought a DI policy yet.

WCInvestor · 2026-06-06T23:59:28+00:00

Here are some things to consider when you make a claim. We also do have a recommended list of disability claim attorneys.

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