Dear Mustachians,
I'd like your help and advice. I have a dilemma and I'd like an outsider's perspective.
I'm 41 y/o, carry $83,000 in consolidated student loans (4.65% interest) and have $146,000 saved between my IRA/Roth.
The loans are currently in an Income-based repayment plan. I currently pay $0 per month because I earn so little. I don't want to earn at poverty for 20 years just to have the debt monkey off my back. However, if I start earning more the payments jack up to $700/month, which I can't afford. Right now, I also have time to devote to my life passion and goal: writing, directing and making films. I'm committed to this dream like most of you are to FI/RE.
UPDATED w Financial Snapshot
Rent: $995 for a bedroom in a shared flat in Los Angeles
4 Months Avg Income $2871.25
Emergency Fund: $2600
No car.
No pets.
No assets.
Yes frugal.
I'm curious to get your Badass advice on this question: does it make sense to liquidate my savings, wipe out the student loans, and start building my savings all over again?
The alternatives, ranked by pragmatic likelihood, are: (a) give up my life and passion as a writer, actor and director to work in corporate hell to pay back the loans, or (b) earn less than $20,000 for 20 years therefore the government discharges my loan in 20 years and I won't have to pay on the loan for that time.
You may have a creative solution to my situation I've not thought of yet. I'm open to hearing them.
Thank you mes badass amis!
- Gordi Knott
PS. I enjoy working as a writer, actor and director so I'm not looking to FIRE myself from my passion.