As a follow up to our post earlier this week, today CNNMoney published an article on the differences between public & private loans in the case of death of the borrower. This illustrates another big difference between the two types of loans.
Click the link below for the article.
http://money.cnn.com/2014/07/28/pf/parents-student-loans/index.html?iid=Lead
Single Point of View is our way to occasionally share planning ideas relating to personal finance. Our goal is to pass along concepts that you may not be exposed to on a daily basis.
July 29, 2014
July 24, 2014
Student Loan Repayment Options
In our previous post we briefly mentioned the various options available to recent graduates for repayment of their student loans. Here is an overview of those options along with some important resources to consider when deciding the best strategy for yourself.
July 8, 2014
Essential Financial Steps for Young Workers
Now that graduations season is over, hopefully your recent college grad is starting their first job in the real world. There's a great article in the WSJ for those in their first 5 years on the job, with 6 things to make sure you are doing. Click here to read the entire article.
Here's the CliffsNotes (with our own thoughts sprinkled in) if you don't want to click on the article to read the entire thing:
1) Set a budget: (There is a lot of great free software out there to help track your expenses & budget. Check out mint.com to start).
2) Save for emergencies: Establish 3-6 month reserved of living expenses (in my opinion 6-12 isn't a bad idea).
3) Take stock of debt: This is especially important to pay attention to if you have student debt. There are a number of relatively new debt repayment options for graduating students that have been put in place under the Obama administration. The issue is you need to spend the time to understand the options and analyze which is best for you.
4) Think about Retirement: Consider a Roth IRA if no plan is available through work. Plan to increase savings % as you get raises.
5) Manage Risk: Evaluate insurance coverage (of particular note: renters, auto, health, disability).
6) Manage Taxes: Adjust your withholdings to avoid a big tax due, and to avoid a big refund. Track tax deductible expenses (charitable donations, student loan interest).
Here's the CliffsNotes (with our own thoughts sprinkled in) if you don't want to click on the article to read the entire thing:
1) Set a budget: (There is a lot of great free software out there to help track your expenses & budget. Check out mint.com to start).
2) Save for emergencies: Establish 3-6 month reserved of living expenses (in my opinion 6-12 isn't a bad idea).
3) Take stock of debt: This is especially important to pay attention to if you have student debt. There are a number of relatively new debt repayment options for graduating students that have been put in place under the Obama administration. The issue is you need to spend the time to understand the options and analyze which is best for you.
4) Think about Retirement: Consider a Roth IRA if no plan is available through work. Plan to increase savings % as you get raises.
5) Manage Risk: Evaluate insurance coverage (of particular note: renters, auto, health, disability).
6) Manage Taxes: Adjust your withholdings to avoid a big tax due, and to avoid a big refund. Track tax deductible expenses (charitable donations, student loan interest).
April 25, 2014
Single Point of View | Identity Theft Protection
The recent Heartbleed security breach has heightened concern of identity theft. Below we highlight a few resources everyone should take into consideration so you can be proactive in protecting your identity.
Also know that The Federal Trade Commission has a dedicated website with a lot of great information. http://www.consumer.ftc.gov/features/feature-0014-identity-theft
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April 2, 2014
NerdWallet: Maximizing Contributions
I am 32 and max out my retirement savings every year through 401k and IRA. I also save an equivalent amount that I put into savings/investment accounts. How should I think about trading off between maximizing my contributions to retirement accounts versus putting less in my retirement accounts so I have more liquid assets to put towards a downpayment?
The bottom line is my net worth is now divided equally between liquid and illiquid (retirement) accounts. I would like to buy property, and I need more cash for a downpayment on my dream home.
February 23, 2014
NerdWallet: Roth IRA Contribution
I made a non-deductible "Backdoor" Roth IRA Contribution (to get around income limits), and my taxes went up in TaxAct when filing taxes.
I am using a 1099-R that I received with a Gross distribution (box 1) and Taxable amount (box 2) in agreement, plus 2b checked (taxable amount not determined). Distribution code is showing "02 - "Early distribution, exception applies (under age 59.5)". Is the key here that this distribution code was messed up by the provider of the 1099-R (Vanguard), in which case it should be a "G - Direct rollover of a distribution ... to a qualified plan" ?
February 12, 2014
NerdWallet: Life Insurance Policy
I'm 40 years old, in good health, and considering a life insurance policy for the benefit of my wife and one-year old. Would you rather get a whole life insurance policy, or a term life insurance policy and "invest the difference" in the market?
I'm also contributing to a 401K, a 529 account, and have about $1M in loan liabilities.
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