Does it make sense to MBA?
I always imagined myself getting an MBA after spending a few years climbing up the ladder, but I wonder if the cost (including opp cost) may be too much to recoup in a decent time.
I'm 29, work in insurance product management (Director level), and make $150K including bonus. The comp is great, but I don't think I'm in a position to make it to the Executive level, at least not in 10 years. The problem is, assuming 2 years of missed income and tuition expenses, I'd be over $400K in the hole after graduating. The numbers don't seem to add up, as I'd need to land a huge salary ($250K+) to hit breakeven in the next 6 years.
Basically, I think with the MBA I'd be in a position to make several hundred thousand in 10 years or so. WIthout it, I'll probably be in the high 100s. But the risk of not being able to land that initial high-paying job can't be ignored.
Any advice? I'm thinking it would be foolish to give up my job for such a speculative bet. I also do like my company, but there's probably a 50/50 chance I'll still be there in 3 years. Am I thinking about this the right way?
Without knowing too much about your situation, I'd say at least take the GMAT and get a good sense of what schools you could get into / get scholarships from. $250k all in first year out of b school is standard for MBB consulting roles, but they don't recruit everywhere.
Cheers, will do. I'd definitely be top 15 MBA or bust, so makes sense as a next step to figure out what's realistic. My undergrad GPA was only 3.2, but I think my work experience will give me a different perspective in class discussions than the high performers coming from banking and consulting.
Yeah, good luck with the test. With a low GPA, there will be extra attention on your GMAT as an indication of intellectual horsepower.
Even though PT gets a bad rap to losers on wso, it could be of worth to you. Better yet, if your company could sponsor your tuition.
Also, it's about how big of career switch do you need. They're very different, and once you're in, your infrastructure will make your zone od opportunity differ.
who has no life and passes these monkey shit along
$250k for a consulting job post MBA???? Good luck with that...
haha yeah this definitely confused me.
Hmm, if this is unrealistic then my break-even point will be unacceptably far away.
From Management Consulted.com - 2017 salary guides. For Deloitte S&O, assuming you can get the summer internship and can convert it to a full time hire (which is how they hire most of their senior consultants)
Base + Performance Bonus + Signing Bonus + Tuition Reimbursement for 2nd year of MBA = about $250k
Deloitte S&O MBA/Grad Salary
Base: $149,000 (Canada MBA: C$125,000) Performance Bonus: up to $37,250 (25% of base) Total Cash (sum of above): $186,250 Retirement: 1/4 match of first 6% into 401k for a total of 1.5% Tuition Reimbursement: full 2nd year tuition for returning interns Signing Bonus: $25,000 (additional $17,500 for returning interns) (Canada: C$20,000) Relocation: $2,500 if local; $10,000 otherwise
You should take the GMAT, see where you qualify, and then talk to alumni both recently out of school and 15+ years out of school. Many older alumni I spoke to found the real benefit from the MBA in their 40's, when they had the experience to qualify for senior level roles and the MBA network gave them consideration for those roles.
As an aside, 250k is realistic if you want to go into banking/AM. Consulting will be a small boost to your current income. Corporate I can't opine on with your background. The 5yr/10yr ROI is an important consideration, but don't forget the qualitative aspect of paragraph 1 from a top 10 program.
What is your purpose in pursuing an MBA? If it's only for greater financial gain then you need to rethink your path. If you want to switch industries/function then it's definitely a viable option. Paying off 200+k debt in 6 years is not bad and your compensation will only continue to increase as long as you don't suck at your job. Also, plenty of people are taking on a lot of debt and giving up high incomes to pursue an MBA because it is in line with their career goals.
I'll be honest. It's mostly about financial gain, a little about ego, and a tiny bit about being interested in the learning opportunity. Problem is that I'm unsure if staying in industry (perhaps going PT) or switching to consulting or IBD is a better route. Upside in banking is way higher, but I've already built a great rep in my company and semi-regularly get contacted by head hunters.
I'm confused about why you said that I need to rethink the path about financial gain but also that paying off the debt in 6 years isn't bad.
What I meant was that if it's solely for financial gain, it might be better to stick with your job for the long haul as you continue to get promoted. However, if you want to switch industry/function then don't be afraid of paying off the debt.
I would get the MBA, but I would also consider other programs such as the part time MBA program or programs in Europe such as Insead/Cambridge/Oxford which are only a year long (or Cornell's 1 year program) . You're pretty established in your career, but you are correct in thinking that you will need it when you hit your 40's and want to do a management role. For instance, I have come across a few people who did part time programs (at Baruch or other state schools) got the MBA and now are C-level execs at HF/BDs. But they were also pretty well entrenched in their careers by the time they decided to get the MBA.
Thanks, I found this particularly helpful. For PT, due to my job I'd have the option (assuming good GMAT) of either Emory or Georgetown (or any other DC or Atlanta area institutions). Top 25 but not elite, but for the industry route to C-suite, it might be good enough.
Actually, for weekend programs I could cast a wider net for good b-schools, especially from DC. UVA, Penn at least would be options.
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