No Clue What to Do. Help

**bjl584** · 11-07-2011, 07:27 AM

Do you think going back to school will earn you enough income in the future to justify student loan debt? Do you have to go back to school now? Can you wait a few years until you are in a better position financially?

**disneysteve** · 11-07-2011, 07:32 AM

How much will school cost?
What will your income be while in school?
Will you qualify for any financial aid other than loans?
What will your projected income be after getting the advance degree?

**hokies2688** · 11-07-2011, 07:36 AM

I'll try to get into a top 10 MBA program probably in about 3 years. I'd guess the loans would probably be around $150,000 at the end of the program assuming my parents don't help me out. When I graduated, I'd hope that my salary would be no less than $125,000 with bonuses.

**hokies2688** · 11-07-2011, 07:37 AM

Also, I'm not going to work while in school unless I can get some of part time bartending gig. I have no idea if I'll qualify for aid, but I'll definitely apply. I didn't in undergrad because everything was through my parents, but maybe if it's with my salary, I will get aid.

**YLTL_Dan** · 11-07-2011, 12:45 PM

What are your motives for the MBA? Is it to get a job you really want, or do you just see it as more money and a way out of what you're doing now? I fought through that decision through my 20s as I had a great job at a consulting firm, but I wasn't satisifed with my work or what I had accomplished. I felt the MBA or law degree was my way out.

I left the consulting firm for a better job, but I'm working on my 'side hustle' that I eventually want to take full time. I'm glad I didn't go into massive debt to help me find my way.

I just wrote a whole blog article on this... it might be worth reading.

**snafu** · 11-07-2011, 07:08 PM

It would be in your interest to use the 3 yr. period to determine the value vs cost of higher ranking MBA programs. Unless you have very specific goals, most clients don't ascribe value to specific schools; they are more interested in deliverables.

Time well spent researching scholarships you would qualify for. Many excellent schools offer 'distance Ed' MBA programs or on-line courses which have been designed so that motivated individuals can remain in their positions while completing course work using employment experiences

**bjl584** · 11-08-2011, 06:03 AM

I have my MBA, but I worked while obtaining it. I took night classes. You may want to consider this option, as there is no way that I would have been able to stop working for the 3 years that it took me to get my degree.

**hokies2688** · 11-08-2011, 06:19 AM

Hey everyone, I appreciated all the responses, but I'd rather get advice on what I should do with my money now. I've gotten different responses from family members so I'm looking for other peoples' ideas. I do plan on going to back to school full time because it's something that I just need to do to fulfill my career objectives. The loans I have to take out are just a worst case scenario in case my parents decide they don't want to pay for all or part of my degree. I'm not worried about any debt I'd have because I'd be able to wipe it out in five years or so anyway. So back to my main question. Should I be putting money in my roth, the market, or just an online savings account/CDs for the next few years. How would you break up the extra $1300/I have a month to invest. Thanks everyone!

**snshijuptr** · 11-08-2011, 07:13 AM

1) Your workplace most likely offers a 401k not an IRA. There is a big difference there.
2) If you put your money into a Roth IRA, you can withdrawal your contributions, but not your gains at any time. It just takes a little bit of paperwork. If you are maxing out an IRA, you cannot also contribute to a Roth IRA. I'm pretty sure your employer offers a 401k.
3) As a graduate student, I highly, highly recommend working through your degree. You will want the extra years of work experience and the networking available from continuing a job. Consider taking an internship through your school or finding a job now that will work with you to pursue your MBA. No student should graduate without a job already lined up. The easiest way to do this is to work while you go to school. You can go to school full time and work part time, but it just takes commitment.

**hokies2688** · 11-08-2011, 07:29 AM

snshijuptr - I'm already contributing the 6% that my company matches to my 401k through work. You can still contribute up to $5000 to a Roth IRA every year which I have not done. As for working, I will definitely do internships in the summer and things like that. What I meant by not working was that I am not going to do an evening MBA program while I'm still working my 9-5 during the day. I'll also pick up any side jobs I can to make extra money. I'll hustle any way possible, but I just don't want a full time job to go with my full course load.

**LMA** · 11-09-2011, 04:48 AM

Originally posted by hokies2688 View Post

Location: Washington DC

Income: $60,000 annually/financial consulting

Debt: zero

Expenses: rent+utilities:$1000

Assets:
Checking: $1000
Online Savings: $1000
Roth IRA: $1000
Work IRA: $4000
Stocks: $6000
Car: $6000

If you live in DC and your rent is just $1,000 you must be doing something right...

A car is not an asset IMHO

When you say work IRA what do you mean? Are you referring to a 401K instead?

If you have an IRA some withdrawals are allowed for qualified education expenses, you might want to check that.

Have you quantified the cost of school? How much is it going to cost you per year/total?

Once you do that then I would recommend putting all your savings towards paying for school. You don't want to pay for school with debt or at the very least take the minimum amount of debt you absolutely have to. School loans will be with you for a very long time so if you can avoid them that would be better.

**hokies2688** · 11-09-2011, 07:42 AM

Yea I live in a 4 bedroom house with my fraternity brothers and rent is $850 + utilities. I'm actually in Arlington, but it's almost just as expensive.

A paid off car is definitely an asset. It's just a depreciating one.

Yes, I am talking about my 401k

I have heard about the education tax credits so I will be looking into that.

I believe school will cost around $150,000, but I have no idea what portion I will pay, my parents will pay, and grants/scholarships I will receive.

So I'm guessing all my savings should go into CD's or my online savings account as it is the least risky investment for the short time I'll be holding it?

**riverwed070707** · 11-09-2011, 07:52 AM

Originally posted by hokies2688 View Post

Yea I live in a 4 bedroom house with my fraternity brothers and rent is $850 + utilities. I'm actually in Arlington, but it's almost just as expensive.

A paid off car is definitely an asset. It's just a depreciating one.

Yes, I am talking about my 401k

I have heard about the education tax credits so I will be looking into that.

I believe school will cost around $150,000, but I have no idea what portion I will pay, my parents will pay, and grants/scholarships I will receive.

So I'm guessing all my savings should go into CD's or my online savings account as it is the least risky investment for the short time I'll be holding it?

I guess what I'm struggling to understand here is why you're parents paying your school is in question. Why would you expect them to pick up the tab for your masters? You are an adult -- plan to pay your own way and if they happen to offer a gift to help, they you're very lucky.

What should you do with your money? Definitely savings. Don't worry about investing/interest, just be putting away as much as you can so you can graduate with minimal debt. I think $150k for a masters program is ridiculous, but if that's what you're set on then you need to start saving now. I'd cut expenses like you're already in school and put all that excess away. There's no reason why you couldn't save up a fairly significant portion of your expenses in 3 years. I think the problem is you're already set on taking out loans and accepting handouts from mom and dad that you don't really care about being proactive in figuring out how to pay for it. You have a good opportunity here, be smart about it. Regardless of whether that $150k could be repaid in 5 years after you graduate, think about all the other ways that money could be working for you -- house dp, investing and earning more interest than your paying on your loans, traveling, etc.

**disneysteve** · 11-09-2011, 08:08 AM

Originally posted by riverwed070707 View Post

I guess what I'm struggling to understand here is why you're parents paying your school is in question. Why would you expect them to pick up the tab for your masters? You are an adult -- plan to pay your own way and if they happen to offer a gift to help, they you're very lucky.

accepting handouts from mom and dad

I disagree with this comment. Yes, OP is 23 and an adult but that doesn't mean he can't still be getting help from his parents. When I was 23, I was in medical school and I can certainly tell you that my parents were helping out. I had no money and no time for a job. I did borrow about 85K to get through med school but I would have needed to borrow a lot more had they not helped out.

No Clue What to Do. Help