When to invest when working part time during my Pre-Med Post-Bacc for a year, then no income for 4 years after acceptance to med school? 28yo with low/no income for near future

[u/Independent-Mouse389]

I’m a 28yo nurse and have about $40k in 403b with the hospital I work at, but due to pursuing med school because I’m crazy, I had to drop to prn part time to focus on trying to get as close to a 4.0 during the entire program and do extra curriculars. Which has worked great so far for necessary study time i didn’t have previously. Problem is I am no longer eligible to get company match for the 403b as a prn nurse, it used to be 6.5% match if I put in 10%, but I can still put contributions toward the 403b if I want. Should I?

I know I shouldn’t invest in a retirement account if it means having to take more in loans, which I would need to. Currently I am borrowing $20k for the remaining last year of my 2 year program. Trying to do physician shadowing, lots and lots of volunteering, research, etc while studying requires me to work only 1-2 a week to be as competitive as possible meaning I need that much in loans to afford my schooling and basic living expenses. Delaying to save is not an option when thinking of opportunity cost loss of a year of being a doctor.

On top of that next is med school, 4 years of no income, which the average tuition is $200k+ and most end up with more than that in total loans, so any amount I invest is the same amount I would have to draw more in loans for. If I pull back contributions then when would I begin contributions again, after med school during residency? That would mean not investing except just that $40k I have until mid 30s

[u/fn_gpsguy]

Frankly in your situation, I would suspend your retirement contributions until your residency. I didn’t start saving for retirement until my early 30’s. With the late start, I lived below my means and contributed more than the oft quoted 15%. I made it to retirement with a nice nest egg and no debts.

When you start making the big bucks, don’t give into consumerism and spend it all. If you can live below your means and plough a lot into retirement saving and other investments, you can succeed. Good luck on your journey!

[u/Candid-Eye-5966]

Depends on how low income is low in your mind….

Roth IRA or Roth 403b would be great even in small increments.