Avoid student loan regret with 4 tips

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Avoid Student Loan Regret With These 4 Tips

• AUGUST 22, 2019
• FINRA STAFF

Nearly half of all Americans with student loan debt regret not going to a cheaper college, according to the FINRA Foundation's 2018 National Financial Capability Study.
And the study suggests many with student loans did not fully understand what they were getting into when they took out that debt, with just 43 percent reporting they tried to estimate monthly payments before taking out the loan.
If you or your child are among those who must borrow at least some amount to pay for college, fear not. Here are four ways to stave off buyer's remorse when it comes to that college education.

 Avoid regret with these four tips.

1. Understand the True Cost.  
2. Manage Your Salary Expectations.
3. Find Ways to Borrow Less.  
4. Know Your Goals—And How to Achieve Them. 

Read the details at: 

http://www.finra.org/investors/highlights/avoid-student-loan-regret-these-4-tips?utm_source=MM&utm_medium=email&utm_campaign=S%5FAI%5F082719%5FFINAL 

How much of your portfolio should be invested in stocks in pre-retirement and in early retirement?

The stock market has been extremely volatile in past few weeks. How much volatility can you tolerate on the verge of retirement?
Investors getting ready to retire should have no more than 60% of their portfolios in stocks, writes John Coumarianos, a former Morningstar analyst. A simulation showed that a person retiring in 2000 with $500,000 saved and withdrawing 4% annually would have $424,000 left in 2018 at 60% stocks, $508,000 at 30% stocks, and less than $200,000 left if fully invested in stocks.
Other analyses suggest that pre- and early retirees should have no more than 30-40% invested in stocks. Keep in mind that we are in the longest bull market in history. That doesn't mean a bear market is around the corner but... what if it is? Could you stand to lose (at least on paper and in the short run) up to 50% of your stock portfolio? especially if you have no guaranteed pension?
Time to review your asset allocation and recognize that your tolerance for risk is not as high as you think it is. 

Big drop in investment values in mid-August

Investment performance indexes across the world dropped 3% or more on August 14, 2019. Now is a good time to revisit your asset allocation and risk tolerance in relation to the time horizon for your investment goals.
Numerous studies and the experience of many financial advisors confirms that investors think they have a high tolerance for volatility and risk... as long as markets are going up. But the same people often freak out when big drops occur, confirming that their tolerance for risk is much lower than they thought.
Of course, losses are only on paper (or online) until you actually sell.
How soon will you need your money? No one knows when the next large drop will occur. We are experiencing the longest bull market in history. How long can it last, especially with the current president's crazy trade policies and erratic national policies.
Time to check out some of my blog posts on asset allocation and risk tolerance.

529 Education Savings Plans

Check out this updated info from FINRA about 529 plans which can know be used for K-12 expenses as well as college: http://www.finra.org/investors/alerts/529-savings-plans-before-invest?utm_source=MM&utm_medium=email&utm_campaign=S%5FAI%5F081319%5FFINAL

Also check out: 529 Savings Plan Investor Tips http://www.finra.org/investors/highlights/529-savings-plan-investor-tips?utm_source=MM&utm_medium=email&utm_campaign=S%5FAI%5F081319%5FFINAL
Among the tips: "Be aware that plans sold by brokers and advisers are generally more expensive than direct-sold plans sold by a state. If you're comfortable choosing a plan and selecting your investment options on your own, you can often save money investing in a direct-sold plan."

Utah's 529 plan has been consistently rated among the best state plans due to it's low expenses, age-based options and state tax benefits. Check out https://my529.org/
Utah's age-based plans start with an aggressive mix and automatically become more conservative as college enrollment nears. It's easy to choose the best investment option for your child, your spouse or yourself. Yes! adults can fund a 529 plan for their own education. 

Just Do It! Now! Today! Protect your identity and your credit

1. Freeze your credit!
2. Place a fraud alert with each of the 3 major credit reporting agencies.
3. Get credit monitoring; it's free if you've been affected by a credit breech.
4. CHANGE YOUR PASSWORDS! And, please, don't reuse passwords.
Details at:
https://www.experian.com/
https://www.equifax.com/personal/
https://www.transunion.com/
Note the lock symbol and the "S" in https?