Student loan debt vs Index funds investments?

[Sar29]

Hello fellow Moustachians!  I’m wondering, what percentage of my savings for financial independence should go into my student loans vs index funds? This is the money remaining after 401K, HSA, IRA etc

I’m finishing up residency now and beginning in July my salary will be $380,000 up from $50,000, with $325,000 in student loans from medical school (I did an md/mba so it compounded more during medical school).  By my rough measures after taxes, not including 401k and various deductions, I think it’ll be $270,000 take-home.

What percentage of savings should go to my student loans (6.25% fixed) vs investments in retirement funds and index funds for my financial independence? 

Thank you!

[talltexan]

You're welcome to use the "investment order" pasted elsewhere in the thread.

But--if being in debt bothers you--consider this post from the Financial Samurai.

https://www.financialsamurai.com/pay-down-debt-or-invest-implement-fs-dair/

[MDM]

What percentage of savings should go to my student loans (6.25% fixed) vs investments in retirement funds and index funds for my financial independence? 

At that interest rate, probably all money left over after tax advantaged investments (e.g., 401k, Roth IRA using the backdoor process, HSA).

Have you tried refinancing (e.g., SOFI)?

[BrightFIRE]

I think you are the perfect candidate to check out White Coat Investor - he has a subsection about student loans from the doctor's perspective.
https://www.whitecoatinvestor.com/ultimate-guide-to-student-loan-debt-management-for-doctors/

[wageslave23]

I would recommend:
1. 401k company match
2. HSA
3. 401k
4. Student Loans

[therethere]

Follow the investment order linked above, paying attention to the interest rate caveat. I started investing instead of paying down my loans once I paid off or refinanced anything above 5%. Consider what you would have put towards loan payoff as "untouchable" until the balance of that brokerage account is > than the loan balance. 

That being said. Large student loan balances can take an emotional toll on you. If you tend to side more with feelings than math, pay them down.

[wageslave23]

Also, don't stress out.  Congratulations, you make BANK now!  Live on $50-70k a year and you have $200k/yr to invest and pay of loans.  If you pay $175k towards student loans every year, you will have them paid off in 2 years.  5-7 more years after that and you are FIRE. But most likely you will keep working if you are like most doctors I know who don't want to stop working after putting in so much effort to become a doctor.