Top Law Schools

Hello,

I was accepted Georgetown with a 80% tuition scholarship.



I work in government. My salary is $65,000 a year. I am 2 years away from becoming a vested employee meaning I am guaranteed at least 13% of my current annual salary every year past age 65. Every 5 years increases the percentage by 13%. I could probably get promoted in the next year or so and make more, probably around $70-80K.



Should I wait to start law school in 2 years? Is it worth staying another 2 years at my job. I don't hate it and there is small room for growth. I just want to kick myself in the rear if this is an opportunity wasted.



I am interested in doing Big Law and my total debt including college loans will be around $150,000.

I would see if they will let you defer. I'm in a similar situation and not fully vested either, but I absolutely hate my job so no promotion or retirement money is going to keep me. I guess it depends on how much those that 13% is worth to you over getting started on law school.

Yes

How old are you now? If you're in your 40s, then I'd probably say yes because it's a free $8,450 a year after your 65th birthday but the value of $8,450 will probably be closer to $5k in 30 years.

Regardless, I'd probably still do it because if you live to be 80 - that's essentially a $100,000, which could be your child's college fund.

That pension isn't worth a ton in today's dollars. Assuming the 4% withdrawal rule, it's equivalent to having an extra $200k or so in your retirement portfolio at 65. Getting into biglaw two years earlier is probably worth about that much when you account for inflation and everything.

The bigger concern here is that GULC doesn't really guarantee you a biglaw salary, and you'll really be up a creek if you strike out. I would hold onto what sounds like a decent career for now and pay down that undergrad debt before making the leap - hitting pension milestones just makes that an easier choice.

LSATWiz.com wrote:How old are you now? If you're in your 40s, then I'd probably say yes because it's a free $8,450 a year after your 65th birthday but the value of $8,450 will probably be closer to $5k in 30 years.

Regardless, I'd probably still do it because if you live to be 80 - that's essentially a $100,000, which could be your child's college fund.

I am 30 years old. Do you think it's still worth pursuing at this age?

Also, if I pass away soon, I can always delegate my pension to a family member.

The Lsat Airbender wrote:That pension isn't worth a ton in today's dollars. Assuming the 4% withdrawal rule, it's equivalent to having an extra $200k or so in your retirement portfolio at 65. Getting into biglaw two years earlier is probably worth about that much when you account for inflation and everything.

The bigger concern here is that GULC doesn't really guarantee you a biglaw salary, and you'll really be up a creek if you strike out. I would hold onto what sounds like a decent career for now and pay down that undergrad debt before making the leap - hitting pension milestones just makes that an easier choice.

If I crash and burn, then I would have truly made a mistake.

But there's a 60% chance that I don't and makes it worthwhile... sigh, this decision is hard to make.

I am giving up salary, time, and now a pension to go to law school

Federal pensions are usually inflation-adjusted.

If you get biglaw, as others have pointed out, it may be a wash financially. I also don't know I'd count on a pension being honored in a few decades.

I think a lot of it comes down to preference. I was really excited to go to law school and get my legal career started. I don't think I would have been too happy to hold off for to years. That said, sounds like you don't hate your job. Certainly no harm in holding off, paying down some undergrad debt, and earning the pension. And you could always make TLS and spend that two years retaking.

ghostoftraynor wrote:If you get biglaw, as others have pointed out, it may be a wash financially. I also don't know I'd count on a pension being honored in a few decades.

It seems unlikely that many states or the federal government will default on their pension obligations to retirees.

It's probably worth OP speaking to a financial advisor to work out the actual value of their pension. If it is inflation adjusted then it's obviously a lot more valuable. However, it may also reduce their social security payments, meaning it won't seem as valuable as it might otherwise (assuming you believe social security will exist when you're 65).

If it is worth $200k and is inflation adjusted, that's quite a bit to give up, even if you expect to retire with quite a bit more set aside than that.

albanach wrote:

ghostoftraynor wrote:If you get biglaw, as others have pointed out, it may be a wash financially. I also don't know I'd count on a pension being honored in a few decades.

It seems unlikely that many states or the federal government will default on their pension obligations to retirees.

It's probably worth OP speaking to a financial advisor to work out the actual value of their pension. If it is inflation adjusted then it's obviously a lot more valuable. However, it may also reduce their social security payments, meaning it won't seem as valuable as it might otherwise (assuming you believe social security will exist when you're 65).

If it is worth $200k and is inflation adjusted, that's quite a bit to give up, even if you expect to retire with quite a bit more set aside than that.

While obviously speculatory, I think it's very likely that SS will be cut - probably significantly, if any cut is made - at some point in the next 37 years. Most likely this will take the form of hiking the full retirement age, as has been done before. (It's gone up from 65 to 67, and arguably should be raised yet again simply to account for the rise in average life expectancy.) A vested government pension, OTOH, is about as secure as one can get.

Yes delay 2 years

Any chance of switching to the part time program? You'd be able to have your cake and eat it too.