First off I thought this post was different enough from BeltwayExplorer's https://saverocity.com/forum/threads/payments-to-make-before-contributing-to-a-529.335623/ to warrant its own thread but we can merge them if y'all want.
I am currently applying and anticipate going to business school this upcoming August to earn my MBA, however I won't know for certain until March if/where I'll be admitted. It's probably a whole different discussion, but any Saverocity members with a strong MBA opinion feel free to send me a PM as I am looking for all the advice I can get.
If accepted to a school in March, what would be my best savings strategy to minimize student loan debt?
I plan to work until July at my current job (leaving about a month before school starts to hang at the beach / burn some AA miles). I understand this is obviously not the most efficient way to save as I'll be missing out on a month's worth of paychecks but it'll be nice to have a break after working 5 years.
My job matches contributions up to 5% to my TSP (currently contributing significantly more) but after that I have a good bit of income, both from my job and MS, to allocate to other savings instruments.
I could up my TSP contributions up to my intended savings level. I have read those funds can be used to pay college education expenses under certain circumstances I believe would apply to me.
I could open a 529 savings account (live in VA, would know beforehand if attending a VA business school) and contribute all savings into that.
I could invest my savings in another instrument, maybe Betterment?
I could simply stockpile after tax savings into an interest earning account such as Alliant or a combination of accounts like Mango.
I have no other debts beside a few thousand in student loans that I would pay today if not for a 2.5% interest rate.
Note I do plan to use MS cashback (less than my yearly W-2 income) to majorly supplement my savings contributions if that factors into any of these instruments.
What do y'all think is the best plan of action?
I am currently applying and anticipate going to business school this upcoming August to earn my MBA, however I won't know for certain until March if/where I'll be admitted. It's probably a whole different discussion, but any Saverocity members with a strong MBA opinion feel free to send me a PM as I am looking for all the advice I can get.
If accepted to a school in March, what would be my best savings strategy to minimize student loan debt?
I plan to work until July at my current job (leaving about a month before school starts to hang at the beach / burn some AA miles). I understand this is obviously not the most efficient way to save as I'll be missing out on a month's worth of paychecks but it'll be nice to have a break after working 5 years.
My job matches contributions up to 5% to my TSP (currently contributing significantly more) but after that I have a good bit of income, both from my job and MS, to allocate to other savings instruments.
I could up my TSP contributions up to my intended savings level. I have read those funds can be used to pay college education expenses under certain circumstances I believe would apply to me.
I could open a 529 savings account (live in VA, would know beforehand if attending a VA business school) and contribute all savings into that.
I could invest my savings in another instrument, maybe Betterment?
I could simply stockpile after tax savings into an interest earning account such as Alliant or a combination of accounts like Mango.
I have no other debts beside a few thousand in student loans that I would pay today if not for a 2.5% interest rate.
Note I do plan to use MS cashback (less than my yearly W-2 income) to majorly supplement my savings contributions if that factors into any of these instruments.
What do y'all think is the best plan of action?