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In the Military and want to get out and get a MBA in 3 years. Am I on target to meet my needs?
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BrentWill1
10-02-2008, 9:41 PM | Post #2570483 |
9 Replies
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Here is my current life position. I am 28 and a Captain in the Army. I have about 200K in various mutual funds (DODFX, FAIRX) and a $170K investment piece of property which I am getting about $500 a month from. I have no debt.I wish to get out of the Army on May 31, 2011. This will give my access to the post 9/11 GI benefits so I can pursue an MBA (and possible masters in accounting) and get the benefits from it. Those benefits should pay for tuition, housing (up to a point. I would get $1147 a month if I went to the University of North Carolina), and $1000 dollars a semester on books. I would get these benefits for 3 years. I also hope to get some scholarships to pay for living expenses, but this would not be a sure thing. I am also dating someone and we are serious. She is a lawyer, but has $100K in student loans. It is very possible that we will get married around the time that I start school or perhaps after the first Semester. Therefore, this is what I want to do. First, I do not want to touch my savings during any of this. This gives me two uses for a large sum of money in a little under three years. First, if I do marry “the Lawyer” I want to have enough money in 3 years to pay off her student loans and pay off a 20 percent down payment on a $150K house. My thoughts are that she should have her principal down to 70K to 80K by then. That means I need to have about 100K to 110K in the bank. After that, with me taking care of housing, we should be able to live off her salary for 3 years. If I pay these loans off, we will have a prenup agreement that will allow me to get that money back from her if things do not work out. The second reason would be if things do not work out, I need a large sum of money to again put a down payment on a house and to live off of for up to 3 years. I think for this, I would need 120K once I begin school.Right now, I have started cut out all my other investments besides my Roth IRA and $250 a month to FARIX. I am then starting this fund with $1K a month to into PRSIX. I consider that a reasonable safe investment for the short term. I think I will be able to up that to 2K a month. I also have another deployment to Iraq coming up. During this period, my expenses will be around zero for 1 year and I should be able to put into PRSIX about 75K. My question to you all is, first, is this the right fund to reach the goal I am trying to get at? Next, am I putting too little money to get to this goal?
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Re: In the Military and want to get out and get a MBA in 3 years. Am I on target to meet my needs?
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orygunduck
10-03-2008, 1:02 AM | Post #2570537
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Capt I retired from the AF in 1999 and your situation sounds a bit like mine did. I elected to go to CFP school, with financial planning being what I've done since 2001. What do you see yourself doing in 20 years? The answer to this really determines what kind of formal eduction you should pursue. An MBA is fine if you want to pursue business management either as a business owner or within a large corporation. But you need to be convinced of this. As to specific personal money management issues, this is small stuff that I wouldn't be too concerned with at this point. At 28 you've clearly mastered the ability to save (assuming your holdings come from saving and not the lottery or an inheritance) and avoid debt, so I suspect you'll continue doing this in later years when your formal training is done and you've got a new career. And as a student, depending on your new spouse's income, your should be able to deduct the student interest on your joint tax return as you do not have to itemize. This effectively reduces the net interest expense you have for student loans, so this needs to be compared with the investment return you'd be able to achieve by investing those dollars rather than paying off the debt. Good luck BruceM
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Re: In the Military and want to get out and get a MBA in 3 years. Am I on target to meet my needs?
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Limoman
10-03-2008, 10:31 AM | Post #2570695
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Well? IMO? 1. Why should have to pay off Her Student Loans and She is a Lawyer, making alot more than you are or will? Don't you think she should Focus on paying off that loan alot faster? 2. Live off Her salary for the next 3 yrs? Gee, If she is making $75k yr or more? I would sure hope so.. 3. good idea on the Pre-Nup in anycase..but odds are? She has the best shot at making alot more than you in decades ahead.. 4. as for PRSIX? IMO? > Nope..not for the short run ( less than 5 yrs ) and maybe even Never vs a more Conservative Bal. Funds like: OAKBX,FPACX,PRPFX or WMRIX/WMMRX and adding a Reit like the Index ( VGSIX ) might not hurt either. Best of Luck in IRAQ.. You're going to be needing it.. Better than Afganistan though.. Myself? I'd bail out of service now, you've done more than your fair share of Serving ..thus Get out while still ahead..and all in one piece..  67-71' Warning! > DYOR..DoYourOwnResearch.. Don't invest just on my or anyone else's opinons! I'm just a 60 yr old retired Blue Collar guy that is guessing like everyone else and I have just been lucky these past 8 yrs since being in these funds with my Retirement $ with ave. about a 13.5% apy. I compare my choices to Index Ports of VWELX, VWINX and other Index Ports by Pro's, like Fund Advice/PaulMerriman @ FundAdvice.com - Home , PAUL B. FARRELL's @ Lazy Portfolio's , Scott Burns @ AssetBuilder Inc. - Retirement Investment Advisor , Annex Wealth Management along with using Lipper Funds Research | SmartMoney.com & Bal. Fund Compare (Fund Compare) | SmartMoney.com ,& Bob Brinker's Land of Critical Mass :plus 25 other Sites and it's STILL a Guessing game.! Thus I put 80% of my $ into Balanced Funds of FPACX,OAKBX,PRPFX & WMRIX and just let them decide for me, since they have proven to do a better job of it than I ever have.., maybe you will do better, butt I doubt it.. Why? " The Odds R Against you" Read this> 11 reasons passive investors let Wall Street steal their money - MarketWatch > 90% of us Armatures Haven't Got a Chance at this Investing Game on our own ...;0>)
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Re: In the Military and want to get out and get a MBA in 3 years. Am I on target to meet my needs?
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Mr. Ed
10-03-2008, 10:53 AM | Post #2570711
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 BrentWill1: My question to you all is, first, is this the right fund to reach the goal I am trying to get at? Next, am I putting too little money to get to this goal?
You might also look at Vanguard LifeStrategy Income Fund (VASIX), with an e/r about .5% lower. It is also more conservative in its mix. I work for a large defense contractor, and have come to know many ex-military. You are entirely correct in looking towards the MBA. You will not rise to the level you should without it. However, also consider that you can get a job right away, and work to the MBA. You want to keep your clearance active. Reserves is one way, and working for defense contractor is another. Also, and I say this with respect, I would create a plan that works whether or not lawyer-wife is around in 3 years. If in six years you are a successful manager, have a wife and a 2-year old, then I'd worry about helping with student loans. Good luck with everything, and know that your work is appreciated.
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Re: In the Military and want to get out and get a MBA in 3 years. Am I on target to meet my needs?
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GolferJoe
10-04-2008, 11:16 AM | Post #2571279
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Capt: I will not comment on your financial plans other than to say you are doing fine. I am a career advisor at a top MBA program in the US. Ex military officers like you are highly prized students. I won't be surprised if a number of top programs offer substantial financial assistance/scholarships to youso look at all the top programs. The only thing to think about...I would not wait too long to get out of the military. You are at the ideal age right now for an MBA in terms of maximizing your salary post MBA. I honor your service(I got out as a captain a long time ago) and wish you Godspeed. When you get back from Iraq..... get out and get that MBA! Joe
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Re: In the Military and want to get out and get a MBA in 3 years. Am I on target to meet my needs?
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Rubiosa
10-04-2008, 1:56 PM | Post #2571347
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If you aren't settled for certain on North Carolina, the Carnegie Mellon MBA is ranked third in the world by the WSJ, and they have a three-year, one weekend per month on-campus AND on-line program that would allow you to work full time while completing your degree. Plenty of schools have similar programs, but CM grads are snapped up quickly by employers. You can google CM or the Tepper School of Business at CM for more details. I professed 35 years at a large university and don't remember any law or medical student running up a $100K student loan. BUT I've been retired 7 years and things may have changed by now. Thank you for your service and good luck with your next deployment.
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Re: In the Military and want to get out and get a MBA in 3 years. Am I on target to meet my needs?
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BrentWill1
10-06-2008, 5:34 PM | Post #2572466
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Well, I am not “set” on UNC, but the Post 9/11 GI Bill is based on in-state tuition (I am from North Carolina). UNC would provide me a cheap place to go to school and it is a very good school on top of that.
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Re: In the Military and want to get out and get a MBA in 3 years. Am I on target to meet my needs?
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BrentWill1
10-06-2008, 6:09 PM | Post #2572486
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Well, the deal with me waiting until May 11th, 2008 is that it would be my 8th year in service, thus giving me the full Post 911 GI Bill benefits. The way it works is you have to service 3 years in the time period after 911, but if you had your education paid for when you went to college, the time you served to pay back the Army for that doesn’t count. Since, I went to a service Academy, I owe 5 years from that. So on my 8th year, I would get full benefits from the Post 911 GI Bill. Anyway, it is good to know that MBA programs like military experience.
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Re: In the Military and want to get out and get a MBA in 3 years. Am I on target to meet my needs?
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San.stephens
01-02-2009, 1:52 AM | Post #2610163
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Captain, I feel taking a loan might help your situation. I want to tell you
about this site - http://www.militaryloans.com/ that provides loans to military
personnel for their personal needs. If you want to know more just login to
site and get more information. You take a loan based on your current
investments/savings, which may, in return and in a way, help you pay your
loan. I hope this helps. |
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Re: In the Military and want to get out and get a MBA in 3 years. Am I on target to meet my needs?
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USNSCPO
01-04-2009, 11:23 PM | Post #2611243
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San.stephens: | Hello Captain, I feel taking a loan might help your situation. I want to tell you about this site - http://www.militaryloans.com/ that provides loans to military personnel for their personal needs. If you want to know more just login to site and get more information. You take a loan based on your current investments/savings, which may, in return and in a way, help you pay your loan. I hope this helps. |
He has worked hard to save and stay out of debt and the best advice you can give him is to take out a loan? Did you even read his post?
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