$300k Med School Debt – What Now?

This podcast addresses various financial questions submitted by listeners, ranging from managing significant student loan debt to prioritizing financial goals like homeownership and supporting aging parents. The hosts provide guidance based on the Money Guy Show's principles, emphasizing the importance of a well-defined financial plan and the 'Financial Order of Operations' to achieve financial freedom and avoid common pitfalls.

Med School Debt & Priorities

• 00:01:40 A listener asks about managing $300,000 in medical school debt while saving for a house and wedding on an income of $250,000. The hosts advise starting with the end in mind and having open conversations about financial goals, considering the potential for a large income increase upon residency completion. They caution against overspending and advise setting manageable expectations for the early stages of their careers.

Helping Parents Financially

• 00:08:30 A listener asks about the impact of supporting parents financially on their ability to achieve a 25% savings rate. The hosts acknowledge the importance of family support but emphasize the need to understand the opportunity cost of prioritizing parental support. They advise using tools like the 'Know Your Number' course to model how such a decision might affect their retirement timeline and consider the possibility of involving other family members in assisting their parents.

Renting vs. Selling First Home

• 00:14:30 A listener asks whether it's better to rent out their first home or sell it and invest the equity. The hosts advise considering the local real estate market and the potential for rental income to cover mortgage payments. They also highlight the potential tax benefits of selling a primary residence and emphasize the importance of adhering to sound financial principles like putting down 20% on subsequent home purchases.

Investing While in College

• 00:30:29 A listener asks about investing while in college, with minimal expenses and school paid for. The hosts suggest starting an automated investing plan with a low-cost index fund and dollar-cost averaging. They emphasize the power of compounding at a young age and encourage the listener to develop a habit of saving and investing early to set themselves up for future financial flexibility.

Saving for a Home

• 00:37:59 A listener asks how to save for a home using either a high-yield savings account or a brokerage account with index funds. The hosts suggest defining the amount needed and the timeline for homeownership to determine the appropriate strategy. They also highlight the importance of cash reserves and the potential risks of relying solely on investments for short-term goals, particularly given market volatility.