Hi everyone,
I am a 26 year old male who is married. I'm an engineer who is looking to start an MBA program in Fall of 2018 (two year program). I am looking at highly selective programs so there is a decent chance that I won't be accepted so this adds some uncertainty. My wife is starting graduate school to be an architect in July. We currently have a decent net worth. We don't really know what is best to do to plan.
Expected Expenses:
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$3200 a month during graduate school.
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Tuition for my wife: $90,000 total ($30,000 a year)
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Possible tuition for me: $200,000 ($100,000 a year).
Our Assets:
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$42,000 in savings
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$63,000 in a 401k
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We own our home which we could sell for $200,000. Our mortgage balance is $130,000. We are planning to sell our house in August of 2018 before I would start school.
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We also have a 529 plan with $30,000 in it.
Our current plan: Pay my wife's tuition with the 529 plan for her first year and then live off of our savings while taking out loans to cover tuition. I plan on working during the first year my wife is in school (~$70,000 pre tax earning).
My big questions are:
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Should we be doing something with our money other than having it sit in a checking account? I would want something that is low risk.
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Is there any way to get around paying taxes on the capital gains from our house sale? That would be great.
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What critiques would you have of our approach?
Submitted May 17, 2017 at 06:38AM by ingwe13 http://ift.tt/2qrN4Yt
