Financial Planning

How to Pay Down Student Loans

How to Pay Down Student Loans

Student debt is a real problem for many college graduates.  Over 70% of students will graduate with loans in 2015, according to the Wall Street Journal, and the average debt per borrower is an astounding $35,000.  What are some of the best ways to pay down that student debt as quickly as possible?

Roth VS. Traditional 401(k) - Calculators and Behavior

Roth VS. Traditional 401(k) - Calculators and Behavior

If you’ve been reading my blog you’d know that I think Roth savings are a great opportunity for many, many investors.  If you plan to max out your contributions this year you can effective save more by saving in a Roth, whether an IRA or 401(k).  Recently I’ve run across a common calculator available on the internet.  When a user puts in their details it is supposed to help you compare saving in a Roth 401(k) or traditional 401(k).  However, the default assumption is that when you decide how much to contribute you will reduce the amount you will be saving in a Roth by the amount of taxes you would have to pay.  That seems like something a rational investor would do, right?

Selecting Life Insurance? Choose Term.

In general, I think it is smart for young people to buy 20 or 30-year term insurance.  It takes care of the period where your family is most vulnerable.  You get coverage when you are young and healthy, because you don’t know what tomorrow will bring.  Then save and invest to build up assets to meet the needs you may have when the term policy runs out...