Then, Now, Later

This is my first blog post in the 2008 year. As such, I’ll try to fit multiple items into one blog post that I have entitled; Then, Now, Later.

Then

The year 2007 was a trying year for me. After I graduated college in 2006, I decided I was going to join the workforce for a few years, gain some experience and apply to medical school when I was ultimately ready. As time went on though, I began to pursue other interest outside of the pursuit of medicine. All throughout undergrad, I had always heard of careers in investment banking and management and strategic consulting, but with my pre-medical blinders on, I chose to ignore those career routes even though I had expressed early interest in them, evident by my ultimate choice to pursue an economic degree. In 2007, I sought to pursue this interest and attempted to transition into a new career in the banking industry. I pulled my application from medical school and sought instead to apply to business school (b-schools). I choose to apply to b-schools because I truly believe that b-schools were the path that would provide me the knowledge and expertise in the most accelerated, rigorous and structured path to allow for a success transition into a new career in the mergers and acquisition advisory at an investment bank. The problem with my hasty decision though, is that business schools search for different qualities in their students than do medical schools (which hitherto, I had been aim to meet medical school requirements) and now I’m struggling to show to the admission committees my story as to why I am a desirable candidate deserving of a seat in their business school.

Other aspects of my life did fall into order in 2007. Due to a renewed determination to better my current lot in life, I became serious about the decisions that affect my life, my finances, and my future. In 2007, I really began talks with my girlfriend in order to coordinate and manage our lives post (her) graduation. She, like I, is very ambitious and this ambition is driving her to medical school (bless her soul). So far, the conversations are going well and we’re working to collaborate and coordinate the directions that our passions are now pulling us towards.

In terms of finances, I started a Roth IRA in 2007 and I plan to continue that trend in the future. I also opened a taxable account to complete my desired asset allocation. My 401(k) at work will soon become available and I look forward to putting more funds in that cash deferred account.

While all my goals and aspirations were not met in 2007, I’m looking forward to pushing ahead in 2008 to try to achieve those goals.

Now

I’m contemplating what contingency plan I’ll engage if I don’t gain admittance to business school during this cycle. I’ve accepted the reality that the possibility exists that this might not be the year for me, but I know I can patiently wait and build up my candidacy for the day when the opportunity to enter into the career I desire arises (whether or not that path leads through business school). I’m currently awaiting the decisions from the schools I applied in the second round. I have decided that this is the last round that I will submit an application to, and if not successful in this round, I’ll accept that I need and can add to application by staying in the workforce and gaining extra work experience. Since I am unsatisfied in my current work position, I’ll seek to lateral into a new position if that is the route I am compelled to take.

For the first time since I carried a credit card, I’m carrying a balance from one month to the next. This is due to the application fees of the business schools I applied to. All of the balance is on a 0% interest card (currently) so I’m not too worried about carrying the balance from month to month. I’m paying down the principal with all available funds so as to avoid paying interest charges when the introductory rate expires. I’m still allocating and dollar cost averaging (DCA) into the market funds I own. The next couple of months will be a strain on my budget allocation as I continue to pay off this credit card debt, pay down my student loans, continuing adding to my Roth and taxable accounts and start a 401(k) plan. I’ve chosen an asset allocation plan (shown below) that I try to DCA into every moth. Hopefully, starting early in life, I can take advantage of compound interest to secure a financially independent future.

AA- 95% Equities, 5% Fixed Income

40% Vanguard Total Stock Market (VTSMX)
30% Vanguard FTSE All-World ex. US (VFWIX)
15% Vanguard Small Cap Value (VISVX)
10% Vanguard REIT (VGSIX)
5% Vanguard Inflation-Protection Securities (VIPSX)

Later

I have to consider what my options are in trying to ultimately end up in career in mergers & acquisition advisory at an investment bank within the next 5 to 10 years. I know if I follow stepwise a diligent plan, I will ultimately end fulfilling this desire.  I just have to find such a plan; that coordinated strategic plan that will make this desire a reality.

I do also have to factor in the fact that heading down this route will lead my life down a narrowly defined path, and I need to make sure that the path allows enough room for one more: my girlfriend. With her aspiration to enter medical school, I need to expect some difficulties that will come with combining both our lives.

So 2008 will be an interesting year. This is the year that I plan to make radical changes, whatever they may be. Here is to a new year, at least a 24 day old one.