How does it go again? death and taxes. Well financial planners deal with both. And today, Jake is talking about your final Will and Testament, oh and what to do with all your accumulated wealth after you've shrugged off your mortal coil.
Have financial questions? Email Jake@youandifinancial.com and Jake Rivas may read your questions on the show!
Follow jake on Twitter and Facebook @jakestwocents
Securities and advisory services offered through Commonwealth Financial Network, Member FINRA/SIPC, a Registered Investment Adviser. Fixed insurance products and services offered through CES Insurance Agency. Actual performance and results will vary. These interviews do not constitute a recommendation as to the suitability of any investment for any person or persons having circumstances similar to those portrayed. Consult a Financial Advisor regarding your specific circumstances. I*financial is located at 1901 NW Military Hwy. STE. 102. San Antonio, TX 78213. Phone number 210-342-4346
This is one of the biggest misconceptions a financial planner deals with. in this quite episode Jake explains the many benefits of working with a financial planner, no matter what your current level of income.
I recently re-certified my student loan repayment plan, which got me thinking...does student debt impact my credit the same as any other type of debt? Let's find out.
If you've finished college within the last few years, chances are you're paying off your student loans. What happens with your student loans now that they've entered repayment status will have a significant impact —positive or negative —on your credit history and credit score.
It's payback time
When you left school, you enjoyed a grace period of six to nine months before you had to begin repaying your student loans. But they were there all along, sleeping like an 800-pound gorilla in the corner of the room. Once the grace period was over, the gorilla woke up. How is he now affecting your ability to get other credit?
One way to find out is to pull a copy of your credit report. There are three major credit reporting agencies, or credit bureaus — Experian, Equifax, and Trans Union —and you should get a copy of your credit report from each one. Keep in mind, though, that while institutions making student loans are required to report the date of disbursement, balance due, and current status of your loans to a credit bureau, they're not currently required to report the information to all three, although many do.
If you're repaying your student loans on time, then the gorilla is behaving nicely, and is actually helping you establish a good credit history. But if you're seriously delinquent or in default on your loans, the gorilla will turn into King Kong, terrorizing the neighborhood and seriously undermining your efforts to get other credit.
What's your credit score?
Your credit report contains information about any credit you have, including credit cards, car loans, and student loans. The credit bureau (or any prospective creditor) may use this information to generate a credit score, which statistically compares information about you to the credit performance of a base sample of consumers with similar profiles. The higher your credit score, the more likely you are to be a good credit risk, and the better your chances of obtaining credit at a favorable interest rate.
Many different factors are used to determine your credit score. Some of these factors carry more weight than others. Significant weight is given to factors describing:
Student loans and your credit score
Always make your student loan payments on time. Otherwise, your credit score will be negatively affected. To improve your credit score, it's also important to make sure that any positive repayment history is correctly reported by all three credit bureaus, especially if your credit history is sparse. If you find that your student loans aren't being reported correctly to all three major credit bureaus, ask your lender to do so.
But even when it's there for all to see, a large student loan debt may impact a factor prospective creditors scrutinize closely: your debt-to-income ratio. A large student loan debt may especially hurt your chances of getting new credit if you're in a low-paying job, and a prospective creditor feels your budget is stretched too thin to make room for the payments any new credit will require.
Moreover, if your principal balances haven't changed much (and they don't in the early years of loans with long repayment terms) or if they're getting larger (because you've taken a forbearance on your student loans and the accruing interest is adding to your outstanding balance), it may look to a prospective lender like you're not making much progress on paying down the debt you already have.
Getting the monkey off your back
Like many people, you may have put off buying a house or a car because you're overburdened with student loan debt. So what can you do to improve your situation? Here are some suggestions to consider:
The accompanying pages have been developed by an independent third party. Commonwealth Financial Network is not responsible for their content and does not guarantee their accuracy or completeness, and they should not be relied upon as such. These materials are general in nature and do not address your specific situation. For your specific investment needs, please discuss your individual circumstances with your representative. Commonwealth does not provide tax or legal advice, and nothing in the accompanying pages should be construed as specific tax or legal advice. Securities and advisory services offered through Commonwealth Financial Network®, Member FINRA/SIPC. A Registered Investment Adviser. Fixed Insurance products and services offered through CES Insurance Agency
Estate planning is not just for the rich! I sat down with Texas certified estate planning attorney Amanda Batsche of Batsche Law to talk about why estate planning is important and what documents you should have created to protect you and your loved ones. In this episode we discuss:
You won’t want to miss this very interesting episode with a lot of important topics!
Have questions? Email Jake@youandifinancial.com and I may read your questions on the show!
Follow jake on Twitter and Facebook @jakestwocents
i Financial does not provide legal or tax advice. You should consult a legal or tax professional regarding your individual situation. Securities and advisory services offered through Commonwealth Financial Network, Member FINRA/SIPC, a Registered Investment Adviser. Fixed insurance products and services offered through CES Insurance Agency. Actual performance and results will vary. These interviews do not constitute a recommendation as to the suitability of any investment for any person or persons having circumstances similar to those portrayed. Consult a Financial Advisor regarding your specific circumstances. I*financial is located at 1901 NW Military Hwy. STE. 102. San Antonio, TX 78213. Phone number 210-342-4346