Need some Financial Advice
#1
Need some Financial Advice
So where do I begin.
As it stand I currently am employed at a large pharma and making decent money. I have a 401(k) through them that I take out 6% of my check. they match 6% in full and I get 4% for retirement funding.
I have some debt however from student loans and the S2000. As of right now I have about $17k in the 401(k) and I'm looking at about $30k of debt. HOWEVER (here's the kicker) I'm about to leave my job for one that pays 50% less and am about to become a graduate student (getting my PhD). I'm facing a substantially LOW income for a very long time. How can I maximize my funds to pay off that debt / pay off the S2K ASAP. I've already budgeted out a larger payment so that I can pay off faster however when I take this lab job I will JUST make enough per paycheck to cover my base expenses.
As it stand I currently am employed at a large pharma and making decent money. I have a 401(k) through them that I take out 6% of my check. they match 6% in full and I get 4% for retirement funding.
I have some debt however from student loans and the S2000. As of right now I have about $17k in the 401(k) and I'm looking at about $30k of debt. HOWEVER (here's the kicker) I'm about to leave my job for one that pays 50% less and am about to become a graduate student (getting my PhD). I'm facing a substantially LOW income for a very long time. How can I maximize my funds to pay off that debt / pay off the S2K ASAP. I've already budgeted out a larger payment so that I can pay off faster however when I take this lab job I will JUST make enough per paycheck to cover my base expenses.
#2
Registered User
Sell the S2000, use the equity to pay cash for a cheaper car. If you have additional leftover equity, put it towards your student loans. If you're going back to school, see if you can have the student loan payments deferred until you graduate (preferably subsidized, so you don't accrue interest, either). Or refinance your existing student loans at a more favorable rate, if they're currently at a high rate.
If you're wanting me to tell you to stop investing in your 401(k), and/or cash it out to pay off your debts... that's not going to happen. 401(k)s are tax-advantaged accounts. If you don't take advantage of those tax benefits now, you never get that chance to do it in the future. Keep investing in your 401(k) (at least enough to get the free match from your employer). Adjust the rest of your lifestyle to meet your income. Live below your means.
If you're wanting me to tell you to stop investing in your 401(k), and/or cash it out to pay off your debts... that's not going to happen. 401(k)s are tax-advantaged accounts. If you don't take advantage of those tax benefits now, you never get that chance to do it in the future. Keep investing in your 401(k) (at least enough to get the free match from your employer). Adjust the rest of your lifestyle to meet your income. Live below your means.
#4
#5
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Join Date: Mar 2003
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In my experience, Pharma companies have phenomenal tuition reimbursement programs. Is there no way to get your current employer to pay for most of/all of your education?
Andrew
Andrew
#6
They SORT of offer reimbursement for a program like the one I'm going to but it would have to be approved by the VP of the company itself...in Europe...Not gonna happen...I heard they only give like 3 people that a year....
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