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hamsmithfinal

I'm a student that needs to decide on a Major. Besides my credits being in a complicated mumbo jumbo from transfers and other what-have-you's I'm a normal student. I was doing some searching about philosophy majors and found your article on "Why I Should Major In Philosophy". So you have good things to say about the Majors. I'm split between a decision to major in phil or to major in phil/pol-sci/econ (a major that puts an equal, but diminished, emphasis on all three). After getting my bachelors I'm considering joining the military for the funding to get a masters degree, in something....I checked what you had to say about yourself and your career and despite being from opposite coasts, your interests are not dissimilar to my own (especially a love for garlic). You have a philanthropic blog and perhaps you could just help shed some light on my situation. How has a phil major helped you, has it been a burden ever, yada yada yada.

Thanks,
Andrew

Andrew asks some good questions and I thought I would address some specifics below.  

1. Major in one subject or do a combination of double majors or multiple minors?  
The first thing to realize about an undergraduate education is that it's opportunity for students to study a subject that they are actually interested in and that the first couple of years of an undergraduate education are going to be fairly broad (from a course selection perspective).  That is to say, most colleges and universities require that a student take a minimum amount of general education credits.  If it were up to me, I'd make it a requirement for all undergraduate students to obtain a dual major and, specifically, one major would be in the humanities and the other would need to be in some applied field such as Engineering, Agriculture, Economics, etc.  Universities should be producing thinkers and doers (not just one or the other).

2. I've talked about the benefits of completing a Philosophy major (Bachelor of Arts degree) in detail.  However, the prospective Philosophy major should also be forewarned in terms of:

- You will need plenty of self discipline to distil the real gold nuggets from a philosophy major; viz, critical thinking skills and ability to clearly write and communicate. 

- No one is going to hand you a job after you graduate with your degree and you will need to work extra hard to turn the skills you learned as a Philosophy major into practical, applicable, knowledge that translates well within the marketplace (sorry, this is just a reality).

- You may need a professional degree if you can't apply skills learned as an undergraduate into a job category that is in demand.  That is to say, you may need to quickly aquire an MBA, JD, or other professional degree to get a job.  I graduated from University in the late 1990's and the .com boom was underway and many jobs were available (this is currently not the case in the US) and I had a practical skill set thanks to work-study position I held for a number of years.

3. Has Your Philosophy degree ever been a burden?  
I think the only time I've felt negative about studying Philosophy as an undergraduate was during my first two years at University.  Studying Philosophy comes with lots of criticism from peers, parents, professors, etc. and it's especially tough to ignore the negative comments when you're still new to campus and college life, in general.  A typical scenario is your Engineering major roommate constantly bombarding you with questions on why you're wasting your time studying something so obtuse and unimportant (be ready with thick skin and a couple of good arguments).

4. I recommend doing a full Philosophy major because only then will you get to take some intense seminar level classes on specific philosophers and topics.  You may even become interested in some specific aspect of Philosophy (such as Philosophy of Mind) and may want to write a senior thesis (this is great practice for the real world in terms of thinking through an idea, justifying the idea, and thereafter defending the premise of your argument).  In addition to my Philosophy major I have two minors in Linguistics and Psychology.  Looking back, I may have opted for a dual major in Philosophy and Economics.  

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As of late, I've started to recieve some reader questions and going forward I will aim to answer key reader messages as they arrive in my inbox via Scordo.com.  If you have a question ask it in the comments or send an email to blog at scordo dot com.  

Question:


I have never bought a house before, so I'm really not savvy about mortgages or HELOC's.  However, my boyfriend and I are good savers.  We have enough money to liquidate our stocks/mutual funds and pay all cash for a house and still have enough cushion for maybe a year's worth of expenses.  However, my boyfriend prefers to keep even more assets on hand than that.  So we are planning to get a mortgage to pay for part of the home price.  Right now we can get a mortgage for about 5.25% interest, and of course there will be fees etc for setting up the loan.  

My question is ... would it be better for us to get the conventional loan on the mortgage when we buy the house, or would it be better for us to pay ALL CASH for the house and then get an equity line of credit for whatever amount that my boyfriend wants to have on hand for emergencies, etc?  Right now Charles Schwab is offering an equity line of credit with no lender's fees and an interest rate of 3.99%. 

Is it possible to get a 30-year fixed rate with regular monthly payments on the HELOC, something like what we would have on a regular mortgage?  If so, it sounds like it would make more sense to get the HELOC for 3.99% instead of the regular mortgage for 5.25%.  But if the HELOC interest rate is something varies all over the place, then it's probably a safer bet to go with the regular mortgage that we know will be only 5.25% for the next 30 years.

What do you think?
THANKS for your advice.
Anne in San Francisco

Answer:

- By liquidating your stocks/mutual funds will you therefore have nothing saved for retirement?  My general advice is to not touch your 401K dollars and/or retirement savings to pay for a house.  If possible, it's best to both save for retirement and a home purchase at the same time.

- Historically speaking 5.25% on a 30 year fixed mortgage is a good rate.  I do recommend putting down at least 20 percent on the purchase of a new home; but at 5.25% I would put down more than 50% (you can always pre-pay, just make sure your mortgage has no pre-pay penalties).

- If you have enough cash on hand to both purchase a house for cash and have a 12 month emergency fund then I would not recommend leveraging a HELOC for an emergency type fund.  It sounds like you have enough money to put down a great down payment (say 50%) and have an emergency fund at the same time (without using a home equity line of credit, regardless of interest rate).  

- Have you tried finding a rate on a 15 year fixed rate mortgage under 5% (those rates should exist, especially on a non Jumbo)? 

- Finally, remember I'm not a mortgage specialist so you should ultimately consult your financial advisor and mortgage specialist when making your final decision.  Also, remember that you need to live with your financial decisions for the rest of your life so think hard and make a logical decision.   
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