What does this mean? Some first year associates make 40K, some make 140K. What is PV? A net loss of 250K at 70?
Sorry..I'm an finance guy so I tend to use terms like that in common conversation. I am going to law school to attain absolute power beyond my wildest dreams so no $40k/yr for me (that's more than a 65% paycut right now anyways). PV= Present Value of an investment or annuity. I calculated how much I'd expect to be making from my first year as an associate till I retire at 70 and I discounted it at my effective rate of interest to come up with what its worth today, then compared the same formula with a one year deferral and the net loss was $250k, in present day terms.
I'm assuming what you're saying is that you make good money now but if you have to take out loans to pay for law school, that will decrease the amount you earn over your lifetime by 250K. That is exactly the same situation that most of us are facing. Law school is expensive.[/quote]
Er..not really. I meant that in that if I deferred for one year...I'd lose $250k in today's money when I retire at 70
Most of us older folks (I'm only 32, but around here thats pretty old) make the career switch because we want to be attorneys, not because we want to make more money. So if that is the case for you, what does it matter how much money you end up with (as long as its comfortable)?[/quote]
You aren't old..don't be bashful. See comment about attaining power beyond my wildest dreams..you get the money, then the power and then (in my case)..the world
If you want to go to school, then take the loans and go to school. Or else start saving money and go to school in a few years. You'll save some money in interest that way, but of course it will be that much longer before you're an attorney.[/quote]
I'm trying to minimize my exposure to debt even though I won't get need based aid and merit aid. Any help will do before digging deep into debt.