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It’s hard enough planning for risks that could affect your current income. Start to think about potential risks to your income in retirement, and it’s harder still. Since many of the people I talk to aren’t aware of the risks to their current income, it...
When you hear the term money action plan, what does it make you think? Hopefully, it conjures thoughts of executing a plan. In our busy lives, we often have more time to think about a plan, than time to execute a plan. What’s your money...
Most people that I talk to don’t have a spending plan and feel financial independence is a pipe dream. True financial independence means having enough wealth to live on without working. For you it may mean living a certain lifestyle. However, most of the people...
Do you have a spending plan based on maintaining your lifestyle? How long can you sustain your current lifestyle? Have you stopped to envision what retirement lifestyle you want to enjoy? Is it visiting grandchildren, taking trips around the world are taking time for some...
Saving for college costs is important. But there’s more to college planning than just saving money. Consider these ideas to help you cut back on the cost of college. Remember, every dollar that you don’t have to put toward college tuition can be reallocated for...
The term financial planning gets thrown around casually. The terms financial advisor are often used interchangeably. Some financial planners deliver what I would call an assessment that does not have to be in your best interest a suitability assessment, rather than a best interest assessment....
I recently met a couple who had a strategy for their retirement investments, but no strategy for claiming Social Security. Using advanced software, I projected they would potentially increase their lifetime income sufficiently by using the replay strategy highlighted in “Get What’s Yours, The Secret...
In my experience, most people focus on their children’s college goals at the expense of their retirement. Depending on you, you’re paying for private school, cars, homes and food that supports them today. Heck, you’re enjoying having them around. That doesn’t mean you don’t want...
Flexible spending accounts aka FSA are underutilized. If I ask, “How would you like to save, say for example, 20% off your healthcare and summer camp bill, you may think differently. Your discount will depend on your tax rate. Let me give you some background...
Each year, the Free Application for Federal Student Aid (FAFSA) application period opens October 1. It’s important that you file this paperwork as close to October 1 as possible. Why? The FAFSA is used to apply for federal, state, and college-based financial aid. This paperwork...
Paying for college is about more than saving money. It’s also about reducing the cost of attending. If you have college-bound children and plan to help pay for school, this information can help you prepare and pay for college costs. Create a plan to pay...
I regularly meet pharmacists, lawyers and MBAs with $200,000 in student loan debt, struggling to pay off interest years after graduation. When you borrow money to invest in your education, you know that paying interest on that student loan debt is simply part of the...
I regularly meet pharmacists, lawyers and MBAs with $200,000 in student loan debt, struggling to pay off interest years after graduation. When you borrow money to invest in your education, you know that paying interest on that student loan debt is simply part of the deal. But interest can seem like an abstract notion when you first take out loans. Over time, it becomes a force to be reckoned with, especially if you have six-figures worth of student loan debt to repay. Fortunately, as the student loan market has grown, so too have the repayment options available to borrowers. There’s also the option to refinance using a private loan, given today’s historically-low interest rates. Here’s what you need to know about various repayment plans, as well as student loan refinancing.
Refinancing student loans is similar to refinancing a mortgage. If you’re able to refinance your student loans at a lower interest rate, you may be able to:
There’s a lot of misunderstanding, even among highly-educated professionals, about the details surrounding their student loans. To start, many students take out federal student loans. Federal loans offer a few different repayment options that are not available with private lenders, including a graduated repayment plan where payments start small and increase over time. There are also income-driven repayment plans that allow borrowers with high debt-to-income ratios to make lower monthly payments, with the remaining principal eligible for forgiveness after 20 to 25 years.
The problem with relying too heavily on the details in outlined by the government is that the rules can change. In the course of a 25-year repayment, you have the potential for seven different presidents and 13 different Congressional sessions.
Some borrowers may choose to refinance federal student loans using a private lender. This may lead to a lower interest rate or better terms, but can mean sacrificing some of the protections built in to federal student loans and the associated repayment plan.
It’s confusing, complicated and time-consuming to figure out all of the details and competing factors that can influence student loan repayment. Especially if you already spent years studying law, medicine, or business. This is one area where a specialist, like a financial planner, can help. After all, the consequences of a misstep can cost you significantly — potentially thousands of dollars in interest.
No matter how confusing you feel like your student loan debt is, Envision Wealth can help you develop a detailed, customized plan. Any money we’re able to save you an be reallocated to a better quality of life. That may mean buying a home, buying a business, building a family or growing your wealth.
Connect with us so we can learn more about your situation to see how our team might reduce your burden.
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