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# B-School Tuition money evaporating

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Manager
Joined: 19 Aug 2006
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15 Jan 2008, 13:47
I was planning to pull my b-school money out of the market closer to enrollment time, but that was a bad idea. the market is down about 10% in 2008, meaning I have that much less money to pay my tuition. D'oh. At least interest rates are dropping so paying uncle sam back will be a bit easier. Anyone else nervous about the equities market situation?

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Re: B-School Tuition money evaporating [#permalink]

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15 Jan 2008, 13:52
yeah I'm nervous
On a serious note, i did a catch-up in 2008 for 2007 Roth IRA and invested the entire \$5,000 into 2008 IRA in the beginning of January. Now i see how all of it went down in value in a matter of a week. Now i'm thinking that I should have waited longer to invest in my Roth. That way, at least I would have continued earning my 4.75% or so in my savings account...

But at the end of the day, it's near impossible to time the markets, and I am investing long-term. So I guess in a long-run I am not too worried. There always be ups and downs in the stock market, depending on the state of the economy.

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GMAT Club Legend
Joined: 10 Apr 2007
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Location: Back in Chicago, IL
Schools: Kellogg Alum: Class of 2010
Re: B-School Tuition money evaporating [#permalink]

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15 Jan 2008, 13:54
Nervous if you put the 5K into Roths for '07 and '08 does that eliminate that money, or is it just for '07? I havent really looked into all this but I think I should start stashing money.
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Kellogg Class of 2010...still active and willing to help. However, I do not do profile reviews, don't offer predictions on chances and am far to busy to review essays, so save the energy of writing me a PM seeking help for these. If I don't respond to a PM that is not one of the previously mentioned trash can destined messages, please don't take it personally I get so many messages I have a hard to responding to most. The more interesting, compelling, or humorous you message the more likely I am to respond.
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Senior Manager
Joined: 30 Mar 2007
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Schools: Darden '15
GMAT Date: 12-07-2011
Re: B-School Tuition money evaporating [#permalink]

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15 Jan 2008, 13:55
You guys should invest in Eastern Europe!
I am getting 10% interest rate on Certified Deposits!!! (the safest investment out there) in a country with 2% inflation rate .... therefore my net gain is 8%!!
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Re: B-School Tuition money evaporating [#permalink]

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15 Jan 2008, 13:58
riverripper wrote:
Nervous if you put the 5K into Roths for '07 and '08 does that eliminate that money, or is it just for '07? I havent really looked into all this but I think I should start stashing money.

Contrubution limits for Roth IRA:
2007 - \$4K
2008 - \$5K
You can do a catch-up contribution to your 2007 IRA in 2008 until April's tax deadline. So that's what I did.

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Re: B-School Tuition money evaporating [#permalink]

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15 Jan 2008, 14:02
Does the aid form use last years numbers or if I max my '08 roth is that reflected? The only thing I am worried about is having to take money from it and paying the 10% penalty...though once school starts you can probably be exempted from that by claiming its a school expense.
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Kellogg Class of 2010...still active and willing to help. However, I do not do profile reviews, don't offer predictions on chances and am far to busy to review essays, so save the energy of writing me a PM seeking help for these. If I don't respond to a PM that is not one of the previously mentioned trash can destined messages, please don't take it personally I get so many messages I have a hard to responding to most. The more interesting, compelling, or humorous you message the more likely I am to respond.
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VP
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Re: B-School Tuition money evaporating [#permalink]

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15 Jan 2008, 14:03
Darden2010 wrote:
You guys should invest in Eastern Europe!
I am getting 10% interest rate on Certified Deposits!!! (the safest investment out there) in a country with 2% inflation rate .... therefore my net gain is 8%!!

I still remember the time when people lost all of their savings in Russian banks. I've been very cautious about investing in Eastern Europe's bank system since then.

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CEO
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Re: B-School Tuition money evaporating [#permalink]

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15 Jan 2008, 14:03
Try euro pacific capital

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Re: B-School Tuition money evaporating [#permalink]

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15 Jan 2008, 14:05
riverripper wrote:
Does the aid form use last years numbers or if I max my '08 roth is that reflected? The only thing I am worried about is having to take money from it and paying the 10% penalty...though once school starts you can probably be exempted from that by claiming its a school expense.

river, you can take the principal out of your Roth IRA without penalty at any time.

see the below;

http://en.wikipedia.org/wiki/Roth_IRA

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Re: B-School Tuition money evaporating [#permalink]

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15 Jan 2008, 14:10
Praetorian wrote:
Try euro pacific capital

Praet, I own American Funds EuroPacific Gr A (AEPGX) shares.
It's been performing very well over the past 3 years.

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Re: B-School Tuition money evaporating [#permalink]

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15 Jan 2008, 14:19
nervousgmat wrote:
Praetorian wrote:
Try euro pacific capital

Praet, I own American Funds EuroPacific Gr A (AEPGX) shares.
It's been performing very well over the past 3 years.

Yes, europe and asia is where the action is at, for now at least.

Not trying to invite a flame war, but to estimate our GDP, our govt. assumes a ridiculously low rate of inflation to dress up our indices. The reality is different.

I am just a biz news junkie - its always nice to do your own research. I watch CNBC in the gym - people look at me as if I am crazy and they indeed should.

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Senior Manager
Joined: 30 Mar 2007
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Re: B-School Tuition money evaporating [#permalink]

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15 Jan 2008, 14:37
nervousgmat wrote:
Darden2010 wrote:
You guys should invest in Eastern Europe!
I am getting 10% interest rate on Certified Deposits!!! (the safest investment out there) in a country with 2% inflation rate .... therefore my net gain is 8%!!

I still remember the time when people lost all of their savings in Russian banks. I've been very cautious about investing in Eastern Europe's bank system since then.

Oh come on that was like 10 years ago the world and Russia has moved on sice then. If you invest in Eastern Europe you 'might' lose some money, but if you invest in the USA you 'will' lose some money with the way the economy is going there.
And also... the my deposits are insured by the government, an unitary goverment (not a federation of states) .... federation of states fall apart but unitary govermnments in Eastern Europe don't
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Joined: 04 Jun 2007
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Location: SF, CA, USA
Schools: UC Berkeley Haas School of Business MBA 2010
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Re: B-School Tuition money evaporating [#permalink]

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15 Jan 2008, 15:12
I put in my 4K for 2007, but will have to come up with 5K for 2008, probably later in the year. And yes, you can always take out the principle you put in, just not the money you earned from the principle. That's why I decided to put everything I can into Roth.

I'm keeping most of my money in stocks even in school. My funding will come from my condo sale, which hopefully will hold at its current price and give me enough money to survive through both years.
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SVP
Joined: 01 Nov 2006
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Re: B-School Tuition money evaporating [#permalink]

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15 Jan 2008, 15:33
You can take money pre-retirement from a Roth without penalty, provided it's for appropriate uses. But there's also a rule about it having to be in the account for a certain amount of time...can't remember how long it is, though.

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Manager
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Re: B-School Tuition money evaporating [#permalink]

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15 Jan 2008, 15:44
kryzak wrote:
My funding will come from my condo sale, which hopefully will hold at its current price and give me enough money to survive through both years.

That right there is another impending disaster. If my condo sells in less than 120 days I'll be happy, meaning I need to get it on the market ASAP in order to get it all done before school starts.

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Director
Joined: 18 Dec 2007
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Location: Hong Kong
Concentration: Entrepreneurship, Technology
Schools: Hong Kong University of Science and Technology (HKUST) - Class of 2010
Re: B-School Tuition money evaporating [#permalink]

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15 Jan 2008, 15:52
I have my investments in offshore mutual funds, tax free havens

From what i garner, India and China are still good places to invest as the expected GDP over the next 2 years for these countries are expected to be around 10%

Also, asian property is going through a boom, places like Hong Kong and Singapore are suffering housing shortages and massive housing inflation. Moreover, Singapore predict a population of 6.5 million, mostly through immigration. This means an increasing demand for property. I`ve invested into an asian property fund to try to capitalise on it.

http://www.openpr.com/news/35067/2007-T ... eview.html
http://findarticles.com/p/articles/mi_m ... _n17218848

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Re: B-School Tuition money evaporating [#permalink]

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15 Jan 2008, 16:55
well, I guess I'm kind of lucky to be in the SF Bay Area. Housing prices have steadied, but houses are still selling within 30 days at 40% over what I bought it for 5 years ago. Not too bad.
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Re: B-School Tuition money evaporating [#permalink]

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15 Jan 2008, 18:02
kryzak wrote:
well, I guess I'm kind of lucky to be in the SF Bay Area. Housing prices have steadied, but houses are still selling within 30 days at 40% over what I bought it for 5 years ago. Not too bad.

only 33% for my place in London , i bought it 5 years ago too.

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Re: B-School Tuition money evaporating [#permalink]

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15 Jan 2008, 18:51
well, at one point it got up to 51% (in 2006)... but I'm happy with 40%.
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Re: B-School Tuition money evaporating [#permalink]

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16 Jan 2008, 16:24
togafoot wrote:
kryzak wrote:
well, I guess I'm kind of lucky to be in the SF Bay Area. Housing prices have steadied, but houses are still selling within 30 days at 40% over what I bought it for 5 years ago. Not too bad.

only 33% for my place in London , i bought it 5 years ago too.

But make it in USD to see how much it has gone up, even with the the sterling coming down a little...

Man, South Kensington, Chelsea and neighborhood are just insane in terms of prices... Well Actually the whole London is insane in terms of housing prices...
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Re: B-School Tuition money evaporating   [#permalink] 16 Jan 2008, 16:24

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