There are diverse investment opportunities that one can do that will ensure that one achieves a good career and money for his future and retirement. One of the most efficient ways is to invest in pursuing an education and furthering education (Brewer & Brewer, 2012). Arguably, each has his or her reasons for pursuing a college degree or further a degree beyond undergraduate. In a general case, an individual often pursues a degree for their family, job requirement and to have a better life. In the contemporary day, it can be argued that a Masters of Business Administration degree is one of the most fundamental constants for everyone to embrace. Even in the sophisticated setting, a contemporary manager has to do what other managers in the past have been doing to be successful (Baldwin, Bedell & Johnson, 1997).
My decision to pursue an MBA is entirely for both personal and professional reasons. When making my decision, I had to take into consideration my absence and its impact on my family `for approximately 12 hours weekly on researching and homework. However, over the years, MBA degree has always been faced with different pessimistic connotation (CBS Money Watch, 2007). There are five distinct factors as described by Simmering and Wilcox that affects the decision for an individual to pursue and MBA graduate degree including goals to improve interpersonal skills, career exploration opportunity, increasing career mobility, personal prestige connected with MBA and entrepreneurial ambition (CBS Money Watch, 2007).
Delegate your assignment to our experts and they will do the rest.
It is evident that there are increased expenses that go into pursuing an MBA. Therefore in completing this paper, it is important to focus on the Master’s program using Ashford’s prices (Baldwin, Bedell & Johnson, 1997). The over price for an individual to attend Ashford University master’s class for MBA program is about $585 a credit hour/$1755 a class. I decided to go back and finish my degree about three years ago at age 47. I had about one year finished in education over the course of 27 years of working in retail banking. I have been attending Ashford University for three years and will finish at the end of this year. The total cost of my education will be about $45,000, and other expenses raise the cost to $85,000 yearly. I have already reached the top of my career, and my current salary will cover the education.
My desired job is retail banking regional manager. I firmly believe that my MBA will open diverse opportunities that would greatly benefit me in the future. With my degree, I am sure that I will be able to work as retail banking regional manager (Byrd, Hickman & McPherson, 2013). Based on the 2011 MBA class, it was determined that the average full-time salary for the retail banking regional manager was about $103,124. I will need to pay back federal loans when I am finished my education. The education might afford me the opportunity to work longer and will protect my resume against a possible reduction in force moves. I may not garner a raise from the education but will protect my future employment, or so I hope. I expect to pay it off in about three years following my graduation (Baldwin, Bedell & Johnson, 1997).
It is clear that my decision to invest in education would be founded on the overall return that I would be able to obtain. Therefore, the payback period for my retail banking regional manager occupation will be three years, and the first payout would be $110,000. Arguably, the payback period for my retail banking regional manager = 3 years+ ($110,000 – $90,000) / $79,806 = 3 years + $20,000/$50,000 = 3 years and 4.8 months. The NPV=$141,740 – $110,000 = $31,740. Based on this, it follows that the IRR for retail banking regional manager will be 21.05%. IRR for retail banking regional manager would be 21.05% which I strongly believe that it is good and worth investing because it seems higher compared to the overall cost of the capital.
The major issue associated with MBA is the overall financial cost of acquiring this degree. The tuition fee is about $45,000 per annum, but with the addition of other expense, the overall cost would be $85,000 yearly which would imply a cost of $170000 in a period of two years. Despite the fact that the cost for MBA is high, the average package for an MBA within the last decade was about $110000 up from $87,000 in 2007. A Bachelor’s degree graduate earned is about $48351 in 2011. Therefore, the variation between Bachelor and MBA would be about $45649. The return on investment is approximately 171.7 %, with the use of $170000 as the cost.
My reason to obtain an MBA is personal, and I believe that it is worth investing for a brighter future of my family and my retirement. Arguably, education investment might not of benefit at my present occupation regarding total earning; however, it has the potential to transform my capability and widen my marketability and competitiveness in the market when I plan to change my current job. Therefore, based on the above analysis, it is clear that the IRR is higher which means that the project is worthy investing. It also means that the benefits would be more than the cost which makes education investment worthy to pursue. It is an excellent investment opportunity for the future career and retirement.
References
Baldwin, T. T., Bedell, M. D., & Johnson, J. L. (1997). The social fabric of a team-based MBA program: Network effects on student satisfaction and performance. Academy of management journal , 40 (6), 1369-1397.
Brewer, K. L., & Brewer, P. D. (2012). Influencing variables and perceptions regarding MBA degree programs. Academy of Educational Leadership Journal , 16 (4), 27.
Byrd, J. W., Hickman, K. A., & McPherson, M. (2013). Managerial finance . Bridgepoint Education.
CBS Money Watch.(2007). Five hard truths about the MBA. Retrieved from http://www.cbsnews.com/8301-505125_162-51170538/five-hard-truths-about-the-mba/
