403b LOANS: EMPLOLYEE RETIREMENT PLANS
A 403(b) loan is much different from a loan you might get from a bank. There’s no credit check, and the loan terms can be quite favorable compared to those of a personal line of credit, a cash advance on your credit cards, or even a secured line of credit like a HELOC. In essence, you’re just withdrawing funds from your 403(b)with the intention of putting them back over time. As long as you pay the money back on schedule, you won’t incur the taxes and fees associated with early withdrawals. Each plan has different terms for its loan option, so it’s important to
NATIONAL DEBT STATISTICS
STUDENT LOANS: 1.56 trillion dollars in 2020, 1 in 5 families with this debt, average is $37,000 with many over 100k. 44.7 million Americans with student loan debt. 92% of student loans are federal. There are more than 2.8 million students with debts over 100k. 34% of borrowers are between 18 & 29. Average loan payment is $393. 10% of borrowers are unable to purchase cars due to this debt and a large percentage of student loans result in low home ownership. COLLEGE COSTS: The average cost of tuition, fees, room and board for 2019-2020 for a 4 year college
TERM LIFE INSURANCE VS WHOLE LIFE INSURANCE:
When you have a family, you must protect it and them in the event something happens to you. you need to have a death benefit of 10 to 12 times your salary to give your family the proper protection in the event of your death. So for example, if you make $50k per year, you need 500-600k of life insurance for your family. The simplest, most efficient and cheapest way to achieve this is with a simple death benefit called term insurance. Pros and cons For most people, the negatives of whole life insurance outweigh the positives. But a whole life policy may
CREDIT REPORTING, FAIR CREDIT REPORTING ACT, AGENCIES
There are 3 credit reporting agencies-Trans Union, Equifax and Experian. Their job is to take the information provided to them by creditors, loan agencies, bankers, mortgage companies, car companies and much more and report on how you handle your credit. this is from if you pay on time and if not when, how much you pay (do you pay off monthly), number of lines or credit cards you have and utilization rate and inquiries. The things that will raise your score the quickest are paying off early and fully every month, and how you utilize that credit-for example: let’s say you have
SIDE HUSTLES
The idea behind side hustles is to earn extra income in our spare time and by doing this both increase income and reduce debt at the same time. I have worked with many clients who have done this and earned as much as an extra $2,000 per month and this is huge in terms of debt reduction. Even teenagers are getting into this by babysitting through care.com or even pet sitting or tutoring. I will outline below many methods to accomplish these goals, but note that one of the best ones during covid was driving for door dash, clients earned a lot of money doing
COLLEGE COSTS IN AND OUT OF STATE AND TRADE SCHOOLS
When you are in debt and you or your child want to get a great education, but save money doing it; you should strongly consider a community college or in state school with lower tuition-at lest for the first two years before transferring credits. For public community colleges, the average tuition is approximately $5,014 per year for in-state students and $8,725 for out-of-state students (2021). For private colleges, the average yearly tuition is approximately $15,507 per year. Tuition at community colleges on average is $3.660 per year. But in reality, many students end up paying far less in tuition. Published tuition costs do not account for
CAR LEASING VS CAR BUYING
Buying a car will allow you to pay it off and not have a monthly payment again until you buy a new car. Leasing a car allows you to trade in your car every few years but you will always have a monthly payment. What are the pro’s and cons in leasing a car? Leasing Pros and Cons Advantages of a Car Lease. Fewer maintenance headaches. … Disadvantages of a Car Lease. Selling price is often full MSRP. … Watch Out for Mileage Limits! Most leases sent in by our visitors have a limit of 12000 miles/year, but I am seeing too many
BUYING A HOME VS RENTING AN APARTMENT
Both renting and buying have their financial advantages, and owning a home isn’t right for everyone. Unlike homeowners, renters have no maintenance costs or repair bills and they don’t have to pay property taxes. Amenities that are generally free for renters aren’t for homeowners, who have to pay for installation and maintenance. Both renting and buying have their financial advantages, and owning a home isn’t right for everyone. Unlike homeowners, renters have no maintenance costs or repair bills and they don’t have to pay property taxes. Amenities that are generally free for renters aren’t for homeowners, who have to pay for installation and maintenance. Renting usually requires a
ESTATE PLANNING
Learn about use of powers of attorney, wills, trusts, probate, estate taxes and more. understand probate varies from state to state. you need to do all this to protect your family, along with the right insurances; find out who you trust to do these things for you. Remember if you have kids it is even more important. Estate planning is about planning to take care of your family if something happens to you and it involves many different forms and is governed by laws about probate and more from state to state and how you lay it all out depends
DEALING WITH DEBT COLLECTORS
Learn the law-understand the Fair Debt Collection Practices Act, know what collectors can and cannot do. empower yourself to resist unfair collection practices. know how and when to communicate with creditors. Always protect the following first-food, shelter, utilities, clothing. Learn about things like mortgages, (types, underwriters, process, costs, interest rates, pre payment penalties and more. home buying, all types of insurance, (auto, medical, renters, life and more)types of car sales (ex: buying vs leasing), all types of insurance and investment vehicles. learn about banking and work ethic. Many of the clients I mentor have this problem of debt collectors, nasty
Topics
- Auto Purchases (1)
- Budget (1)
- Buying a Home (1)
- Debt (4)
- Estate Planning (1)
- Financial Goals (5)
- Insurance (1)
- Side Hustles (1)
- Student Loans (2)
