I recently was diagnosed with stage 3 colo-rectal cancer. My chances of survival look very good. I have a job for now, but will be unemployed come March. My rent is covered entirely as is my healthcare.
That said, I’m trying to get my finances in order and looking for ideas about future budget and investment. My parent recently passed and left me a large sum that I’ve been conservative with and keeping it in a money market fund. I know I’ve done a poor job putting more into my 401k over the years, but it is what it is at this point. Looking to increase my percentage in the future.
All that said, by biggest question is if I should bother to pay off my student loans. The best idea seems to make the minimum payment to cover some interest and principal a bit and leave the vast majority invested. My only worry is my future Debt to Income Ratio when I want to obtain a mortgage for a home in the future.
Generalized numbers:
Income: $65,000 but about to be jobless at the end of March.
Rent: $0 (free)
401K: $36,000
Roth IRA: $14,500
VMRXX: $400,000
HYSA: $50,000
Student loan debt: $85,000 at 5.5%
Edit: I hold no other debt besides a credit card I pay off in full every month.
Cancer, future finances, and student debt
byu/scorelesscrescent inpersonalfinance
Posted by scorelesscrescent
1 Comment
Don’t worry about debt to income ratio. When you are rid of your cancer, and have a new job, and find a new house you want to buy and talk to a loan officer and they say it’s an issue is when you should look at it.
You’re so far away it’s not at all a concern. Cancer, current expenses, new job. Healthcare and insurance and surviving this. You’ve got it. Debt to income shouldn’t even be something you think about for a moment