US MBA/MS studies strategies:wait for GC or not ?

completed MBA now what's the next step

Hey Guys,
I'm in IT (oracle). last week I completed my Exec. MBA from CSU (which is not ivy league by far). I met a regional Accenture director who said that their Bus. Strat Consltng jobs are almost exclusively reserved for top 8-9 ivy league colleges, so I guess that option is out for me. Does anyone have suggestions as to how to best make use of my MBA? I dont want to be in IT (specially programming) anymore if I can help it and location is not important either. As of now the best option that I have seen so far is that my company would train me in FICO, SD, MM modules of SAP. They are saying that after one or two contracts(to learn the workings of SAP better) i can leverage my mba to positions in developing Bus. Strat templates etc. Does that sound like a good option or are there better options for me?
B
 
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Hello BobbySingh,

I have had lots of contacts from folks from Accenture. My school is 18th in the rank. At least in my area here similar I never heard about such ranking expectations to get in.

How about Microsoft Consulting Services ? You will need to travel a lot, but they are hiring now.
How about Delloite ? I have a friend who works there.
Perhaps you could also consider taking a position as a Technical Product Manager and later move on to more upper managerial roles ?







BobbySingh said:
Hey Guys,
I'm in IT (oracle). last week I completed my Exec. MBA from CSU (which is not ivy league by far). I met a regional Accenture director who said that their Bus. Strat Consltng jobs are almost exclusively reserved for top 8-9 ivy league colleges, so I guess that option is out for me. Does anyone have suggestions as to how to best make use of my MBA? I dont want to be in IT (specially programming) anymore if I can help it and location is not important either. As of now the best option that I have seen so far is that my company would train me in FICO, SD, MM modules of SAP. They are saying that after one or two contracts(to learn the workings of SAP better) i can leverage my mba to positions in developing Bus. Strat templates etc. Does that sound like a good option or are there better options for me?
B
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I'm in a MBA program too. But if I don't have a GC by the time I graduate, I will not be able to take any new/better job opportunities which SUCKS !!! At that point i dont think it makes sense to be in the US anymore. Just go where a better opportunity takes you.
 
TkNeo said:
This was a great thread until someone started talking about 401k. Damn.
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True ... especially since there is no obligation to remove the money from the account upon leaving the country. No need to link 401k decisions to the green card, since the option is always there to leave it in the account (or rollover into an IRA) until retirement age, regardless of whether you're in the US.

MBA is another matter though. In the US so many people have MBA's that they are dime-a-dozen unless from one the top schools, but outside the US it can be a good ticket to a high-paying job.
 
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LaborPains said:
I'm in a MBA program too. But if I don't have a GC by the time I graduate, I will not be able to take any new/better job opportunities which SUCKS !!! At that point i dont think it makes sense to be in the US anymore. Just go where a better opportunity takes you.
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Hey,

Why do you say that you won't be able to take any new/better job ? If you were on H1B before it means your future employer (post MBA) can get you the H1 visa right away as you wont be counted in the h1b cap... ?!?!

Thanks !
 
TkNeo said:
Why do you say that you won't be able to take any new/better job ? If you were on H1B before it means your future employer (post MBA) can get you the H1 visa right away as you wont be counted in the h1b cap... ?!?!
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The problem is that changing to a new and better job (i.e. not similar to the job on the labor certification) would involve having to restart the GC process.
 
gravitation said:
Let me provide some constructive criticism of that.

First of all, if you live in US, not putting money away in a retirement fund is a terrible idea. You can avoid it as late as the age of 35 years and still make up by slightly aggressive saving plan. If you wait till you're 40 to start saving, it's way too late and will adversely affect the quality of life in your golden years. Ideal time to start saving is the the age of 30. And No, house doesn't make a retirement fund.

The understanding of 401k among my friends is so abysmal that I shake my head in disbelief. Let's get some facts straight:

1. If you have some savings in your 401k, you can borrow from it. You pay it back with interest, the interest itself goes to your account. So you pay interest to yourself!

2. You may take out money before the age of 59.5, but then you pay 10% penalty and income tax. But let's put this in perspective in the next bullet point.

3. Most of the companies provide match. In my company the match the first 6% of my salary, dollar for dollar.

Let's use a hypothetical scenario of a person making $100,000 a year. This person saves 6% of gross which is $6,000 a years. Company matches it with another $6,000. This person saves for three years. After which the person had to return to India. To keep the math simple, we ignore salary raises and return on investments. Both of these will only positively affect the outcome.

This person has him/herself contributed $18,000. Due to company match, the sum stands at $36,000. The person withdraws it all and pays 10% fine, and still get 90% of it, i.e. $32,400. It's taxable, which can be avoided by withdrawing it a year after returning (when US salary income will be zero).

So, even if you've to withdraw it all and return, which is not very likely (unless you're very pessimistic), you still end up with an extra $14,400. Of course, if things go according to the plan, you've got extra $18,000, tax-free. You also don't pay taxes on the original $18,000 you contributed. How much is that at 30% tax bracket?

If your company provides any match, not saving in 401k is a very very costly financial mistake. Just do the math. You're leaving money on the table. Money is not a matter to be decided by the intuition of a layman, as shown in the above example. It's needs knowledge and analysis.

If the above example came as a shock to you, it's a sign that you know too little about money and need to read at least 3-6 books to be able to barely manage your finance.

Some disclaimers: you really need to save 20% of gross (including company match) for a retirement which matches your current life style. This is not complete primer on 401k, so read more if you wanna invest through a 401k plan.

My personal conviction is not to put your life on hold till GC clears. I'm currently enrolled in an evening MBA (company provides half of the total tution of 60,000). I've owned a 4-BR house for over two years now. Have been saving in 401k for three years with a nice little nest-egg to show for it and also have 529 for my son (just started so not much in it but contributing monthly).

GC will come when it'll come. Somethings you can't do till then. There's no need to have a mental block and not moving on with rest of your life.
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Sorry for keeping the 401K discussion going but...

Is it a good idea to borrow from 401K to pay off mortgage on a house?

We have about 40% equity in our condo and decent savings from 7 years in 401K, I am completely vested. I was wondering if there are any drawbacks to borrowing from 401K. Also if you do borrow and are making payments back to your 401K, are the payments pre-tax? (deducted from your gross pay?)
 
Repayments of the 401k are made with post-tax money. So if you pull out $75K from the 401k, you'll need around $100K of gross earnings to pay it back (exact amount will depend on your tax bracket, of course).

Also, most companies have a rule that the entire 401k loan must be paid back almost immediately upon leaving the job (whether voluntary job change or layoff), and if not repaid by the stated time it will be reported to the IRS and you will be liable for paying taxes and the 10% penalty for the outstanding loan amount.

I don't see any benefit in using the 401k loan to pay off the mortgage, unless it is an adjustable rate mortgage and the interest rate is going up. Otherwise, you're just exchanging one loan for another, and the mortgage interest is tax deductible, while the interest on the 401k loan isn't (with a higher interest rate, also). And under normal circumstances there is nothing forcing you to pay off the mortgage in a few weeks notice, but you'll probably have to repay the 401k loan quickly if you change jobs.
 
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Using 401k money to make the down payment is a different matter. I used a 401k loan to help make the 20% down payment, which allowed me to avoid paying PMI. But I also was expecting a big bonus soon afterwards, which allowed me to pay it off within 6 months.
 
saras back?:)

I nearly exited from this forum and now find my way back.
Guruji Saras is back:)

Hey guys, do an MBA now rather than wait for GC. I dont know how it helps especially if you have crossed 180days on 485.
I am writing this message from England. I decided to exit the GC business and get my MBA. By sheer luck my GC was approved few months before I started my MBA!

I decided to take all the risk to exit the GC process get my MBA and return to US.

So, keep moving. GC comes or not.
 
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