<prompt> Human: A few lucky family property investments have resulted in my personal share of 200k. About my financial situation: between my spouse and I, we have 60k in emergency funds. We are maxing out our company sponsored retirement plans. I have a Roth IRA; my spouse does not. We have no other investments. I have 180k in students loans and plan to consolidate this year to a 5 year, 1.95 fixed rate. With this particular bank, if I pay off my loans within 4 years, they will give me back the interest paid against my loan for up to 2.00 of the original loan balance. We have no other debt. We live in a high cost of living are but currently live with the parents rent free. Im a resident physician currently and will graduate this year. My pay will be in the 300k range starting out and in three years it will be in the 400k range as per my contract. My spouse makes significantly less but my spouses family is the one that owns the properties and giving us this share.Our goals: I want to pay off my loans and we want to buy our own house. I would love to own our own place asap as we are still living like college students in terms of our spending. We are fortunate to live rent free but we spend very little. We have an 8 month old baby and would like to save for college. We want to learn how to invest. I want to use this 200k in a way that makes the most sense for us. What would you guys do?  <response>: So youre fortunate to live in an area with First Republic bank. : Nice.First off, youre in an amazing financial situation. Last year of residency, no consumer debt and substantial emergency funds.Its recommended to have 3-6 months of emergency funds but I would imagine that you would not need 60k. I dont know what your monthly burn rate is but you probably currently live on 5k net a month or less, correct? 5k times 6 is 30k. Even that is pretty conservative since a physician has a VERY stable job. Im a resident also I hope you have the 60k in a high-yield online savings account giving you 1.5 a year. You dont have to have ALL your emergency fund in a completely liquid account. You could have 3 months in a savings account, and 3 months in a mixed bondstock taxable non-retirement account for higher return but this is controversial. Id take 30k of your emergency funds and put it in a taxable account with fidelity or vanguard. Id do a low-expense ratio mutual fund that is fairly aggressive for asset allocation depending on what your risk tolerance is.People here may recommend putting a lot more money towards your student loans but you have a 1.95 interest rate which is literally free money. In its history the S and P 500 has given off 10.5 or so; with inflation calculated the CAGR is like 8.5. Yes, over a shorter time period your returns will likely be different but Im advocating a buy and hold strategy; youre HIGHLY likely to beat 1.95.Your pay is high enough that you will be having 200k net and then 250-260k net in a few years. You can pay off your loans in three years while taking advantage of the low interest rate while putting 65k a year net annually towards the loans. Youll still have 130-180k NET annually to increase your net worth.Now this ONLY works as long as you dont ball out and get a new BMW 7 series, a 2 million dollar mortgage, a golf cart...etc. Just live like a resident like White Coat Investor recommends for a few years and youll be straight. Now regarding the extra 200k I would probably put most of it towards a sensible mortgage since your mortgage interest rate will likely be higher than your student loan interest as long as you dont move within 3 years. You can use the rest for investments in mutual funds. Or put it mostly towards your student loans while renting in an economical houseapartment if you dont think youll be able to resist having an attending lifestyle. Youre in a GREAT situation. 