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[quote=Anonymous]15:55 back.  The Dave Ramsey advice is good for people without discipline who put themselves in a financial hole due to spending money they didn't have and don't have the ability to stop spending on their own.

You went back to school (medical school) later in life, did the residency, fellowship, and are raising a child on your own. You did not mention any consumer debt.  None of these things suggest a lack of control or discipline, in fact they suggest the opposite, as does your interaction with others who disagree with you here. You don't have a spending problem, just a large student loan which has allowed you the benefit of a very nice income.

Personally, I would pay the minimum on the loan while saving/investing the rest, but emotionally you might feel comfortably doing something else. I think 2k invested and 1500 to your loan is a sensible compromise. An extra 800 cushion in your budget is pretty good (9600/year).

To talk about goals - If you continue to put in the 401k max (including extra 5500 at age 50) and you put the 2k/month into the market from now until 65, you should have around 4M at 65 (again, assuming an 8% return - 1.8 in 401k, 2.2 in investment account). That's enough to give you 120-160k/year to live on without touch the principal.

I keep a spreadsheet tracking how well we are doing, updating it 1st of every month, tracking account balances and our actual contributions (what we have saved vs what the market has provided). I have goals for each year as far as how much we save and invest.  Run the numbers yourself, or if you aren't comfortable doing it or you need something more concrete, go to a financial planner and get them to draw up a plan you can use and walk you through how compounding works.

I believe that if you set a goal for yourself, understanding the logic and purpose behind it, you will accomplish it. If your 215k debt was from buying shoes, handbags, and a room full of memorabilia my advice would be different....well, actually, I wouldn't be giving any, I would just read, shake my head, and move on.

Best of luck! [/quote]

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