Should I pay off ~90k in student loans quicker or continue to fund mega back door 401k? For context, am a second year and have over that amount now separately in both the 401k and high yield savings account. Given the high yield savings pays more interest than the loan, I don’t see why I’d pay it off soon. However the recent democratic talk of taxing unrealized gains on 401k etc. has me questioning whether contributing that much is smart long term.

like
Posting as :
works at
You are currently posting as works at

I stopped contributing to mega backdoor bc 1) I realized that with my 401K and HSA, that’s way too much money locked up for retirement, 2) the paperwork got too complicated, and I have no confidence in policies standing behind mega backdoor, so I don’t want to risk having to back pay the taxes anyway, 3) I wanted to pay off student loans asap bc I just didn’t like having them, and 4) I prioritized buying real estate

like

A1, huh?

It’s probably better off to split it more evenly. I would at least start making more than the minimum payment each month on the student loans. Maybe pay it off in 5-10 years seems reasonable.

Personally, I paid off all student debt in first two years of big law. It was about $75k. I also already have a mortgage too with a low interest rate. So housing wasn’t an issue for me and I’ve invested in the house. I do agree with AS1 about investing in real estate as it should work out and give you some security.

I will say you never know what will happen later in life. If the debts gone it’s easier to pivot out of big law or into something else. You may want a career in big law or may not. They can also kick you out too. Most only last 3-5 years. So best to have an exit strategy.

like

Depends on interest rates

Unless you’re petrified of debt wait until treasuries are under 3% (ie your HSA)

Related Posts

Do I need to sell cash sitting in my fidelity core position to be able to use that?

like

Looking for a lawyer for get prenup done. Any recommendations will be helpful

likefunny

What price per sq foot to investors start buying in the north ATX home? My home is on the market and not moving. Trying to understand at what price point does it become attractive to investors

Let’s see if this is of interest?

like

Hey fishes, can someone tell me how the 80c bracket works, i know i can get exempt upto 1.5lakh under it, what i wanna know is does PF comes under it or not? For example if my yearly pf deduction is 20k and VPF is 10k so now will i still be able to show investment of 1.5lakh under 80c apart from PF and VPF or i'll be able to get exemption on only 1.2 lakh( 1.5lakh-30k= 1.2lakh)?

Thank you in advance!!

like

Have you received the salary today? Got the mail now but no credit yet in account 😕

like

Live in a HCOL area. Looking to buy in the next year. The least I can afford to buy would put a mortgage at 40% of my monthly take home pay (post tax + max out 401k) but 25% of gross income. Will 40% of take home pay make me house poor?

like

Does anyone have any book recommendations for information on buying a house?

like

Can one become financially stable after being discharged from the military?

like

Hi all, I am trying to DCA bi-weekly into Vanguard ETFs, (VO, VTI etc). It seems like Fidelity does not support auto buying of non-Fidelity ETFs. So I was wondering which of these options you think is best?

1. Open a Vanguard Invest account
2. Look for Fidelity ETFs that are similar to Vanguard ETFs
3. Use smaller brokerages like SoFi l, Robinhood etc.

I really do not want to manage nor be active. My goal is to log-in like once every 6 months.

Thank you all.

like

Hi guys! Looking to learn about real estate investing! I am a senior in college graduating with a degree in finance so I understand certain aspects, but am looking to learn more on my own about real estate specifically!

What books would you recommend I read?

like

HYSA anyone recommends?

like

Does anyone else think we should start investing in more light rail systems to cover some of the distribution problems we're having? I think it might be a good idea. Anyone have any thoughts about this?

like

Investing newbie here: pros cons of getting a rental property vs investing in stocks?

like

What things *can you negotiate when purchasing a new car? What things *should you negotiate always? Any differences in negotiation approach when buying used? Seems like I can afford considerably less, given the current interest rates 😭 Currently financing a car at 1.9% and it's killing me to buy, but I've had nothing but issues with the used car I bought.

Is this an aggressive position? Would you use final regulations effective for tax year beggining Dec 16, 2020 to support a deduction for calendar tax year 2020? Proposed regulations didn't include this exception. More details below.

I have a new prospect. Small business owner that wants to start a 401k for himself and his employees. Who would be the top 2-3 organizations I contact, and what questions should I ask the providers?

like

How is 99k salary in New Jersey area ? I have to settle with family (wife and kid 4yo). How much i will get post tax deduction ? Can any1 help with approx expenses (avg middle class living) per month

like

Can someone explain the LTA policy? What happens if I don't claim any travel bills? Can I claim it as a taxable component monthly?

like

How does pwc’s wealth builder plan work ?

like

More Posts

What is car lease policy in SAP Labs ?

Is it applicable for all SAP Labs employees at all level ?

like

Capgemini How to avail notice period buyout in capgemini if on bench.

like

Anyone in consulting and doing OE? Using bench time for J2+ seems like a good opportunity in this environment, considering it wouldn’t look out of place to remain on the bench for quite a while

like

When life returns to normal, would people prefer to WFH anywhere or return to their offices in NYC?

like

completed technical and behavioral interview with deloitte for QA Solution architect, what would be the next steps? what's the typical pay for this role, please advice, urgent

Not sure if this is okay to ask: anyone have experience refinancing a car loan? Having a difficult time getting a copy of the title from my current lender (so the new lender can pay it off) and I’m not sure if I have any other options.

Any good photographers for a birthday shoot in Portland,Oregon?

like

What would happen if I don't join a company after accepting offer letter?

like

How do you come up with your labs to make sure they are aligned with the unit.? I feel like I am doing well on EOC scores but I feel like my class is a drag because we just drill concepts and the labs are not making the connections I’d like between the lesson and the activity. It becomes them just following my instruction and not much scientific processing or troubleshooting to come up with the conclusion. I want to make scientist not just students that pass the EOC.

Salary range for lead analyst (band 28) non tech?

like

Visa friends! Had an interview in London, got the verbal, and am doing the visa dance. Started the process 2 weeks ago with HR and now they've ghosted me since then, though they said I have stuff to fill out ASAP. Normal? And am I too American pushy if I reach out to the hiring manager (and my future team) for an update instead?

like

Im working on creating job descriptions from scratch. Is it illegal or not a good practice to take ideas from other job descriptions on the web? I won’t be using word for word of course - a paraphrase and adding our company touch. Any advice?

like

Hello Fishes,

I'm currently looking for opportunities commensurate with my experience. I am a fellow member of ICSI with over 13 years of experience in corporate and secretarial matters. Having worked in Merchant Banking Companies, I have independently handled and executed assignments like IPOs, Rights Issue, Takeovers, Buy Backs etc.

Any referrals or leads would be highly appreciated.

Thanks

like

What is market hike rate for senior finance professional in current scenario for organisation change..

like

Accenture global SC - 17fixed 3var + 2JB Exp -4.7 any scope to negotiate further? If yes how much? Accenture

I am also looking for other opportunities if any of you can help refer

like

Packing Cube set recommendations....

like

Hi all,
I am working in IQVIA near sarjapur-marathalli road and planning to shift by october end, please suggest me affordable pg/flats nearby

like

Part of a BD now, thinking of going on my own as RIA. Costs would be about 50% less, which makes it seem like an obvious choice. Have a deep family friend relationship with current firm, though. I don’t want to burn a bridge, but am I crazy to be a bit upset that the relationship could keep me from doing what I think may be right? Really struggling with that part of the decision.

like

Anyone else find yourself tipping more to try and escape the “Asians are cheap” stereotype?

funny

Additional Posts in New York Big Law

Any POC M&A midlevels here actually feel you are treated fairly? What firm? Have been at 2 firms and have lost hope any M&A groups exist that grant us the same grace and opportunities as others :/

likefunny

Has a partner ever come back and asked you why you spent so much time on certain things? Im a first year and this hasn’t happened to me at my firm and they tell us not to cut our own time, but my first firm (short stint, small firm) did this to me allll the time and made me feel guilty — so just curious if this has happened to anyone in big law.

like

Does anyone have intel on signing bonus amounts (apart from Covid and year-end) for mid-level litigation associates? The move would be to a V10 firm. Thanks!

like

Any insight on Fragomen?

like

Top “lifestyle” litigation firms - what are they and what are the best ones in the nyc market?

like

If you are leaving your firm and putting in your two weeks notice, what should be on your checklist to make sure your transition is the smoothest, both for you and for the firm you’re leaving?

like

Fried Frank LLP finance vs. Willkie finance - talk to me. Better experience, wfh, hours, culture, etc?

like

Anybody have experience with adjournment requests in the 1st Dept App Division? We have a respondent’s brief due a week from Wednesday. This past we submitted an application for adjournment. I’ve convinced my partner that we have good cause (record issues that need a motion to resolve) but now I’m starting to get worried. Are adjournments usually granted?

like

Anyone have any advice for someone interested in getting an MBA to either go in-house or break into securities litigation. 5th year associate here.

like

How much money do you have saved up?😳

like

White & Case About to lateral into the project finance team of White & Case. Thoughts on the culture / dos and don’ts?

like

Anyone know what it’s like working at the SEC enforcement division?

like

Medical Malpractice Lawyer Recommendations in NYC? For post-surgery blindness due to eye infection

like

Associates - Care to share your rough budgets (income, spousal income/family support, rent, monthly spending, student loan payments, savings, etc.)?

like

2nd year here. Looking to lateral from a mid-sized regional firm to another WNY firm-specifically in the M&A/Corporate practice. Anyone have any good insights into big law firms with satellites in WNY (Buffalo in particular) or other regional firms? Barclay Damon, HS&E etc.

Looking for a group that values training and mentorship

like

I think I’m about to get my first experience of getting in trouble with a partner for work that I actually already sent for review and followed up on multiple times (and brought up during calls). Stay tuned… 😑

like

Hey. For people who’ve moved laterally, how did you deal with the request for references from your current employer?

like

one thing I do not do is pick up the phone before 9:30…after 7 years, you would think they’d learn.

likefunny

Going to a new firm and bringing a client or two with deadlines before I leave — can I do the work now but bill the time later at my new firm as long as I don’t double bill at my current firm?

like

Got an opportunity at a boutique firm. I’m a 2nd year in big law and never moved before. What are the pros and cons of leaving Big Law to go boutique? What should I be aware of before saying yes?

like

New to Fishbowl?

Download the Fishbowl app to
unlock all discussions on Fishbowl.
That was just a preview…
Sign Up to see all discussions
  • Discover what it’s like to work at companies from real professionals
  • Get candid advice from people in your field in a safe space
  • Chat and network with other professionals in your field
Sign up in seconds to unlock all discussions on Fishbowl.

Already a user?
Login here

Share

Embed this post

Copy and paste embed code on your site

Preview

Download the
Fishbowl app

See what’s happening in your industry
from the palm of your hand.

A phone with Fishbowl app

Scan your QR code to download
Fishbowl app on your mobile

Download app

Sign up for free to view this conversation on Fishbowl

By continuing you agree to Terms of Use and Privacy Policy

Already have an account? Log in

Sign up for free to continue using Fishbowl

By continuing you agree to Terms of Use(New) and Privacy Policy(New)
Messaging rates may apply

Already have an account? Log in

For account settings, visit Fishbowl on Desktop Browser or

General

Legal