Should you pay off medical school debt or invest in the stock market?

I am frequently asked the following question: “Should I pay off my student loans before I put money aside to invest in the stock market?” The person asking this quick and simple question is looking for a yes or no answer. The problem I am faced with is there is not enough information in the question to give a proper answer. Therefore, I say, it depends. It depends on how the debt sits in your overall financial picture. If you are drowning in debt and struggling each month to get by, then the first step must be to restore a workable balance. There are more than financial ramifications to overwhelming debt. Arguments over finances are the leading cause stated for divorce. Burnout and suicide are both linked to overwhelming debt. In this situation, all efforts need to go toward debt elimination, until balance and breathing room are re-established — even to the extreme of stopping all 401(k) or other retirement investing until balance is restored. In the investment world, that’s heresy. You should be maxing out your 401(k), shouldn’t you? Not if you are seriously out of balance and at risk of drowning in debt. Continue reading ... Your patients are rating you online: How to respond. Manage your online reputation: A social media guide. Find out how.
Source: Kevin, M.D. - Medical Weblog - Category: General Medicine Authors: Tags: Finance Practice Management Source Type: blogs