17 and wanting to Retire at 29

teentoere · Post by **teentoere** » Sun Sep 23, 2012 9:10 pm

Hello everyone,
I am 17, and have been reading the blog for about a year now, and thought that I would post something on the Forum. I am thinking of moving to NYC after I finish my Masters degree in Accounting. I am currently a high school and college student and will have my AA completed when I finish high school. I will have my Masters degree complete at the age of 21. I plan to retire in NYC and live in the summer in Ankorage. I was wondering if anyone had any advice for me.
Thank You

riparian · Post by **riparian** » Sun Sep 23, 2012 10:06 pm

Keep going, and don't get into anything that's hard to get out of. Life will change a lot, and half the things you believe will change. Make the choices that give you the most options. Invest in who you are, cause that's really all you've ever got.

44deagle · Post by **44deagle** » Sun Sep 23, 2012 10:17 pm

Whatever you do, do not buy a new vehicle. Just get the bare minimum for what you need.

KevinW · Post by **KevinW** » Sun Sep 23, 2012 10:25 pm

Since you're starting so young (kudos), some of the ideas in the "Create the PERFECT ERE Life" thread might be applicable: viewtopic.php?t=532
Also see the Snowbird thread: viewtopic.php?t=1244
Will the masters degree pay off? I had the impression that the more lucrative accounting career path was to get a BS and pass CPA exam. Maybe you could shave another 1-2 years off by skipping the MS.

teentoere · Post by **teentoere** » Sun Sep 23, 2012 11:07 pm

@KevinW
That is true, but my thinking was that if I had the Masters degree, and passed the CPA exam that I would be considered more valuable, because of the extra years of education.

George the original one · Sun Sep 23, 2012 11:13 pm

You can always return to school for the masters if you find you need it. You can't, however, get back the extra years in school if you find that you didn't need to be there.

teentoere · Post by **teentoere** » Sun Sep 23, 2012 11:18 pm

@44deagle
I have been looking into 49cc scooters because of their cheap insurance, and price. They also are perfect with gas mileage, and in some instances may be cheaper to use than public transportation.

KevinW · Post by **KevinW** » Sun Sep 23, 2012 11:54 pm

That is true, but the marginal salary increase from the MS may not make up for the opportunity cost since you won't be working very long. Consider two hypothetical scenarios:
BS+CPA at 19, work 10 years at $50k = $500k

MS+CPA at 21, work 8 years at $60k = $480k
Conventional wisdom says that the extra education eventually pays off, which is correct when you're deciding between 40 and 42 years of work. But when it's 8 vs 10 it's not so clear cut.

jennypenny · Post by **jennypenny** » Sun Sep 23, 2012 11:57 pm

Is the MA part of a combined BA/MA program? I ask because they are usually condensed and cheaper then pursuing a BA and then a MA separately. If yes, I'd get the MA.

teentoere · Post by **teentoere** » Mon Sep 24, 2012 12:02 am

@jennypenny
I do not think I understand what you mean, but what I was thinking was that I finsh my BA, and then start my MA, but I am still not 100% sure I will continue school and get the Masters degree.

jennypenny · Post by **jennypenny** » Mon Sep 24, 2012 12:08 am

Some colleges offer a combined BA/MA program. You are admitted to the BA, and at the end of sophomore year (if your GPA is high enough), you apply to the MA program. They allow you to count some of your upper level undergraduate classes toward the MA so you finish in five years instead of six. You are also billed at the undergraduate rate, and avoid fees and taking the GRE. I'm not sure how that would work since you're ahead of the game, but it's worth looking into. Maybe you could do it in 3 instead of 4.
Something like this

http://leeds.colorado.edu/bsmsaccounting#overview

teentoere · Post by **teentoere** » Mon Sep 24, 2012 12:11 am

@jennypenny
Ok now I understand. I am going to a community college, because I am in an early college program, and they do not offer that, but I am doing some courses for my BA in my AA program.

jennypenny · Post by **jennypenny** » Mon Sep 24, 2012 12:18 am

I would still try and apply for the MA/BA combo when you move on from CC, and finish in only 3 years if you can. Most state colleges offer these programs, they just don't advertise them. Because of the requisite hours in an accounting program, it might be easier to do a BA/MBA.

LonerMatt · Post by **LonerMatt** » Mon Sep 24, 2012 3:50 am

I'm a little older (22) and on a similar path.
My advice would be, save hard, but if you don't feel impending desires to quit your job (I don't), then try to find a balance, too.
This board provides excellent advice about escaping the job market, and of the uselessness and frivolity of employment and wage slavery. Employment is not always necessarily terrible, and if you enjoy your job revel in that. It's easy to lose sight of the here and now because we're dreaming of a future. It's also easier to loathe the here and now if it doesn't measure up to our aspirations.
If you're not in debt, and you enjoy what you do, and your finances are in order try some of the other experiences on offer (go on a trip a cheap way, etc).

BeyondtheWrap · Post by **BeyondtheWrap** » Mon Sep 24, 2012 4:43 am

Will the masters degree pay off? I had the impression that the more lucrative accounting career path was to get a BS and pass CPA exam. Maybe you could shave another 1-2 years off by skipping the MS.
In NYC, where the OP is planning on working, the CPA exam requires you to have 150 credits. Basically a master's.

teentoere · Post by **teentoere** » Mon Sep 24, 2012 11:43 am

My plan is to take 6 classes for all three terms, and then I will finish my degree almost 2 times as fast.

teentoere · Post by **teentoere** » Mon Sep 24, 2012 11:43 am

My plan is to take 6 classes for all three terms, and then I will finish my degree almost 2 times as fast.

Chad · Post by **Chad** » Mon Sep 24, 2012 12:29 pm

I worked as an internal and external auditor for roughly 5 years (banks and retail were my main clients), and I still have friends in the business (one of my close friends is about a year away from being a partner at PWC).
A masters in accounting is abnormal. The vast majority of people are just BS and CPA exam, and then work their way up. Almost everyone who gets a masters in accounting seems to go the tax accountant route, which is fine but I'm not sure the MS is necessary for that either.
Peronsally, and keep in mind I did not like accounting (it's a fine profession just not for me), if I were going to do accounting now I would get an accounting degree with some type of computer/information systems degree (my buddy at PWC did this). All accounting departments are now heavily computerized (mostly Oracle systems). Then if I wanted a masters I would just get an MBA, as it's more versatile.
Also, keep in mind that there is really no reason a lot of current accounting jobs can't be replaced by computers. The profession is just slow to adopt or admit it.
As Jennypenny noted there are programs where you can get a BS/MS in 5 years, which might not be a terrible idea. I know Pitt and Notre Dame both have BS/MBA programs of 5 year lengths. You can even get your MBA from Pitt in 1 year if you get a 4 year degree from another school.
Keep in mind what KevinW and LonerMatt are saying, which is that you need to decide your goal. If your main goal is to retire early I don't see how a masters in accounting will help. If you just love accounting then maybe you don't want to retire early, but just want to make good financial decisions and keep working. Then the masters in accounting may help.
No one on here can answer this for you. Just use the information and make your own decision.

teentoere · Post by **teentoere** » Mon Sep 24, 2012 6:03 pm

@Chad
I do enjoy accounting, and I was wanting to work for one of the big 4 accounting firms, but are you saying that it is not an in demand field anymore?

Chad · Post by **Chad** » Mon Sep 24, 2012 6:18 pm

@teentoere
No, sorry, I wasn't clear. I'm not saying it isn't in demand. It is very in demand. I'm suggesting that low end accountants in corporate accounting departments are in danger over the next 5-10 years. I'm also suggesting that in order to increase your demand and to future proof yourself, connecting your accounting degree with a computer/information systems degree is a very nice way to go. Plus, it generally doesn't take many more classes to do that.
My friend at PWC did this. He was ahead of the curve at the time, and has benefited greatly from having the dual degrees (accounting and computer/information).
Not only does this increase your earning potential, but it gives you leverage to make the job how you want it. Make yourself indispensable and most companies will work to meet your requirements, as opposed to the other way around.