Preparing for grad school

[InDebtInDC]

Based on our discussion in the past, I've decided to apply to grad school.

Cliff's notes: I'm applying to law school at Harvard, Stanford, Yale in order of preference. If I can get into any one of those I'm definitely going. If not then I'll apply down the list.


My time frame is to be in class within 3 years or so, which means I have 1 year to prepare for the LAST and start applying. That leaves me 2 years to wrap it up.

Right now my only strategy is as follows:

* pay off all non-student loan debt
* liquidate all assets prior to leaving
* defer student loan debt
* put my 401(k) into a target fund and don't look back

That's all I can think of right now. Any money I have left over I'll just put it into savings.


The only thing I'm debating is whether to leave my retirement where it is (I may come back to my job) or roll it over into an IRA. The fees are really small where it is and it's earning decent returns.


Anything I forgot?

[sweeps]

Good luck to you, DC.

Any money I have left over I'll just put it into savings.

Note you can open a 529 for yourself, so you could save money for law school with no tax owed on the earnings. Also I believe you get a deduction on your DC tax return (if you actually live in DC). Since you're only a few years away from starting school, you'll most likely want to choose the conservative investment option(s) in the plan.

[LivingAlmostLarge]

How old are you? Why not move forward now? Are you earning a lot? Why delay earnings?

[InDebtInDC]

Good luck to you, DC.


Note you can open a 529 for yourself, so you could save money for law school with no tax owed on the earnings. Also I believe you get a deduction on your DC tax return (if you actually live in DC). Since you're only a few years away from starting school, you'll most likely want to choose the conservative investment option(s) in the plan.

Thanks for the comment.

I was actually looking into 529s, but I'm not worried about funding grad school. I'm more worried about taking care of my other debts so I won't have any payments in school.

At worst I can always take loans and get them paid off later, by me or my employer.

I don't actually live in DC. Nobody lives in DC except for extremely rich people and extremely poor people.

[InDebtInDC]

How old are you? Why not move forward now? Are you earning a lot? Why delay earnings?

27. It's strategic. How much is a lot? Again, it's strategic.


I may come back to my current employer. If I stayed 3 years, I'll be considered for a management position. If I left in 3 years and came back later with a law degree, I'll get a huge promotion.

If I left now and came back with a law degree, I'll have to go back to my same job now and ride it out another 3 years. I don't think I can maintain law school loans on my income.


Plus I think it will help on my application. Not many applicants will have a management position in the legal industry. I'll be practically ready to teach the second and thid year intellectual property classes.

[sweeps]

I don't actually live in DC.

Maryland and Virginia offer state tax deductions as well.

[InDebtInDC]

Maryland and Virginia offer state tax deductions as well.

VA does, but I need to wipe out as much debt as possible before I quit.