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[quote=Anonymous][quote=Anonymous]OP here. Thanks for the responses. Yes, we will owe some interest for paying late, but it's minor. I don't think we owe a penalty, because it's the first time we had insufficient withholdings, even though we withheld more last year than we had in previous years.

As for incurring tax liabilities by selling stock, we're going to realize those capital gains sooner rather than later, anyway, since we need the invested money for a house down payment. So either we sell now, or we sell in 6 to 12 months.

The conundrum here, as some of you have noted, is really about the psychological benefit of erasing the debt now, rather than waiting 6 more months. And whether we'll be able to save up for the down payment once we do that. (I assume our savings rate will go down slightly once the baby comes; I'd just like to keep it in high gear until then.)

[b]By paying off the loans early using investments, I would like to give my wife whatever small sense of "freedom" she can get so long as she's working in "Big Law," where she feels trapped and unfulfilled--and overworked in a way that would be astonishing to even most driven people. [/b]

I am afraid she will honestly contemplate the SAHM choice once the baby comes. That is not an outcome I welcome, frankly. I hope in the coming years to be able to make more of the money in this partnership and allow her to lean back with a less demanding and more fulfilling job--but she has massively more earning potential than I do now, and it's not like living in this city is cheap. [/quote]

She hasn't even been working in big law for two years!!  Yeah, sounds like she has no drive and will be a SAHM mom as soon as you have that child.  If I was you I'd at least put off paying the loans with a large chunk of cash.  Do you know what you are doing for childcare yet?  We spend a ton on our nanny, but luckily it is only for a few years.  Not really sure why you two didn't wait another year before having a kid.  [/quote]

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