Events & Promotions
|
|
GMAT Club Daily Prep
Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.
Customized
for You
Track
Your Progress
Practice
Pays
Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.
Apr 2511:00 AM EDT
-01:00 PM EDT
Looking to secure a coveted spot at a top business school? Our team of seasoned MBA admissions consultants, including top B schools alumni and industry leaders, is here to help turn your dreams into reality. Let’s kick-start your journey to success!
Apr 2908:00 PM EDT
-09:00 PM EDT
Join us for a live Ask Me Anything (AMA) session with Juno’s Co-Founder, where we’ll break down everything you need to know about financing your MBA in today’s rapidly changing landscape.
Apr 3010:00 AM EDT
-11:00 AM EDT
Applying to business school from a finance background? Personal MBA Coach is here to help with this quick tips video on how to set yourself apart during the MBA application process!
Apr 3010:00 AM EDT
-10:30 AM EDT
Sia Admissions Founder Susan Berishaj will walk through why reach/target/safety produces the wrong list for many specific profiles, how admissions committees at different programs read the same background differently, and more...
Apr 3012:00 PM EDT
-01:00 PM EDT
Starting at $975 and offering up to $545 of savings, our new Amplify Hourly Packages offer structure and support in certain high-value areas (story development, resume, essays, interviewing) to help get your applications across the finish line.
Apr 3009:00 PM IST
-10:00 PM IST
Thinking about PE/VC? Most consultants are. Few actually make it. Learn how to position your profile, build the right skills, and break into Private Equity & Venture Capital.
May 0108:30 AM EDT
-09:15 AM EDT
Get the inside scoop on what makes Emory’s Goizueta Business School great, learn how you can present a strong MBA application, and connect with an Admissions Director to get your questions answered.
May 0108:00 PM PDT
-09:00 PM PDT
Inquire for a free profile evaluation and guarantee statement for possible admits and scholarships!
UNCBOUND
Current Student
Joined: 15 Apr 2013
Last visit: 24 Oct 2019
Posts: 34
Own Kudos:
Given Kudos: 13
Location: United States (TX)
Concentration: Finance, Healthcare
Schools: Duke '20 (WL) Kenan-Flagler '20 (M)
GMAT 1: 710 Q47 V41
GPA: 3.35
Products:
15 Aug 2016, 11:09
Kudos
Bookmarks
Hello!
Thanks in advance for your input. I'm planning on matriculating to a full-time B-school in the Fall of 2018. My wife and I decided to downsize to an apartment and cash out of the real estate market. We sold our home and have around 60k in profit that is going to be set aside for B-school (extremely grateful for this provision!). I will most likely use the money for living expenses during the program, and will take out loans for tuition.
My question is- how would you invest that 60k in the time leading up to the program? Here are a few options I've considered:
- 529 plan. Downside is if the MBA falls through- I'll be penalized for using it on other things.
- CD or bond- low interest, low risk.
- Low risk mutual fund- higher risk than the CD or bond, potential for greater return.
- Head to Vegas, win big, screw loans.
(obviously joking)
I have about 24 months before I'll need to draw on the funds. What would you do?
Thanks in advance for your input. I'm planning on matriculating to a full-time B-school in the Fall of 2018. My wife and I decided to downsize to an apartment and cash out of the real estate market. We sold our home and have around 60k in profit that is going to be set aside for B-school (extremely grateful for this provision!). I will most likely use the money for living expenses during the program, and will take out loans for tuition.
My question is- how would you invest that 60k in the time leading up to the program? Here are a few options I've considered:
- 529 plan. Downside is if the MBA falls through- I'll be penalized for using it on other things.
- CD or bond- low interest, low risk.
- Low risk mutual fund- higher risk than the CD or bond, potential for greater return.
- Head to Vegas, win big, screw loans.
(obviously joking)
I have about 24 months before I'll need to draw on the funds. What would you do?
24 Aug 2016, 22:53
Kudos
Bookmarks
Good job on taking advantage of the RE market!
This question probably applies to anyone who has $60K and a 2-3 year spend horizon so everyone is out there hunting for the answer (with exception of the 529 option that is on the table for you).
Ultimately it depends on how much fun you think it will be to develop an investment strategy vs. how burdensome it is. While I don't think it is going to be possible to generate substantial growth/dividends from this sum, you can still do well and get 10%+ perhaps if things work out, so definitely worth the hassle. Of course, the yield reality is that CD's and savings accounts are not going to produce more than just 1-2% per year since the rates are low. Stock market is doing better than ever, which some feel means, it is not a great time to buy, esp with your short-term horizon. Bonds and date-based funds are going to be just weak in terms of the yield.
I am not an investment adviser and you should research it on your own. However, you could built out a custom portfolio with 20-30% in Stock funds (growth), 20-30% in Bonds and 20-30% in Cash CD's/High Yield Savings accounts. You can then start with cashing out your best performer (either stocks or bonds) and then draw down the other instruments. Make sure you consider the tax implications. There are good and bad - good is that you won't have much income in school years but you will be taxed on dividents along the way so you may want to consider tax-free bonds (depending on your tax bracket). This would give a good chance to capture any growth from equities but also protect yourself with bonds and cash. Should the worst case happen and some of your equities go down more than 10%, you can always not sell them and wait for the market to recover. However, the percentages should be based on your risk tolerance, at our age, it tends to be pretty good since most of our productive lives are ahead.... and yes, get a life insurance.
Good Luck!
This question probably applies to anyone who has $60K and a 2-3 year spend horizon so everyone is out there hunting for the answer (with exception of the 529 option that is on the table for you).
Ultimately it depends on how much fun you think it will be to develop an investment strategy vs. how burdensome it is. While I don't think it is going to be possible to generate substantial growth/dividends from this sum, you can still do well and get 10%+ perhaps if things work out, so definitely worth the hassle. Of course, the yield reality is that CD's and savings accounts are not going to produce more than just 1-2% per year since the rates are low. Stock market is doing better than ever, which some feel means, it is not a great time to buy, esp with your short-term horizon. Bonds and date-based funds are going to be just weak in terms of the yield.
I am not an investment adviser and you should research it on your own. However, you could built out a custom portfolio with 20-30% in Stock funds (growth), 20-30% in Bonds and 20-30% in Cash CD's/High Yield Savings accounts. You can then start with cashing out your best performer (either stocks or bonds) and then draw down the other instruments. Make sure you consider the tax implications. There are good and bad - good is that you won't have much income in school years but you will be taxed on dividents along the way so you may want to consider tax-free bonds (depending on your tax bracket). This would give a good chance to capture any growth from equities but also protect yourself with bonds and cash. Should the worst case happen and some of your equities go down more than 10%, you can always not sell them and wait for the market to recover. However, the percentages should be based on your risk tolerance, at our age, it tends to be pretty good since most of our productive lives are ahead.... and yes, get a life insurance.
Good Luck!
