First, I am aware that going to law school is a major risk, but I have wanted to go for many years and have thought this out over a few years, tried brushing the idea away and it keeps returning. I plan on studying my ass off for the lsat over the next 7 months. I am asking to please first critique my current situation and then gather ideas on the best course of action. Thanks!
I currently make 40k a year. I am 27 and have nearly 12k in my 401k after saving for about 1.5 years at 15% plus company match. I have 3 mutual funds the breakdown is (S&P 500 index 50%, small cap 35%, international 15%) totally 3,400k. I have 6,800 in cash as an emergency fund, saving, etc. I have 0 student debt, my car is paid off, and rent is about 400. I also will be eligible for my first profit sharing (on average ppl say its 5% and it’s been a good year!) starting this year and plan on saving that along with tax returns over next 2 years. Ideally would like to divide money among all 3 current accounts- savings, 401 and mutual funds.
My question is: I plan on applying next fall to law school with one in particular I am aiming for with the plan of starting fall 2019, so I will be working for at least another 20 months. Should I continue to put 15% into 401k and continue buying into mutual funds knowing that I will have to take massive loans out? Or is it better to start right now keeping more savings on hand so I don’t have to live on as much borrowed money? Ideally I’d like to use loans for school and use my savings for food, rent etc. during school. Though maybe it’s better to graduate and have a few grand on hand for the first half year paying back the loans. Also, I plan on proposing to my girlfriend over the next year or so and don’t want to be a financial burden on her during those 3 years, though she fully supports me in going.
I realistically think if I continue on my current track I can quit my job with over 20k in my 401, about 20k saved up in cash, and probably 6k in mutual funds, if I continue on my current path. I know it’s not much but I’ve been trying, thanks Reddit!
Submitted December 22, 2017 at 01:23AM by gocamping http://ift.tt/2p9rQ2P
