Looking for some advice from the DPSubmitted by Freedom means l... on Mon, 07/29/2013 - 01:00
I am looking for financial advice from the group of people I believe have it right the most.
Here is my situation:
I recently graduated from pharmacy school and recently got a job at a chain making 95K/yr. I have a wife who is an occupational therapist who makes approximately 70K/yr. We have 111K student loan debt from me and 70K student loan debt from her totaling 171K debt averaging about 5% interest rate. We currently live with her parents and pay rent (1k/month) to help them out (her dad lost his job recently). We own 2 cars (Honda Pilot and GMC Sierra) which are our only assets besides wedding rings and clothes and a little furniture. Her parents own a cabin on a lake in Minnesota that is almost paid off and is very nice but a tiny lot and not much room to garden. My family owns land in South GA (my grandpa is still living there) with a house and plenty of farmland.
Here is my thought process moving forward.
Buy a nice home in a place we like (West Knoxville, TN) in a super nice country subdivision that should hold its purchasing power for ~350K and play the game with a low interest rate (4%), pay off loans over 10 years or so, pay the mortgage off in about 20 years, and have a tiny bit to buy some food store (rice, honey, salt, canned goods, coffee, liquor), a little silver (1/3 of savings), and a little cash (1/3 of savings). My chain matches 4% of 401K plus profit sharing up to another 4% on a good year (essentially 6-8K bonus that is stuck in 401K). I would probably do that if we stay with this plan but am open to suggestions. Pretty much live the (upper) middle class life and hope everything stays afloat...
Scenario B (The doomsday collapse preparation):
Pay off our debt as fast as possible, move up to Minnesota where we could live by ourselves most of the year, buy food stores, buy a bunch of silver and eventually move some of it to gold as silver piles up, have a good bit of cash stored in an immovable safe (heavy mofo), buy seed and gardening gear, fishing gear (including ice fishing - winters are HARSH up there), water distill, vitamins, etc. And if no collapse occurs, we eventually get comfortable enough to play the game as above.
If we don't buy at these interest rates (Scenario A), we may never afford a house like this and may be pinching ourselves.
However, if a collapse happens, we will be pinching ourselves that we didn't set ourselves up for a sustainable living in a post collapse America (such as in Scenario B)
After my grandpa passes, we could move to South GA and set up a small farm in addition to jobs we commute (30+ minutes at least) to, but my wife wouldn't be nearly as happy down there. It is pretty dull and would be a warzone in a collapse I would imagine. We could do the whole migration thing after my grandpa passes but he is a hearty fella who may last another 20 years we hope lol.
What would you suggest? Is there a combination of the two that you see could work? What would you do? What questions should I be asking?
Thanks for the discussion, DP