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mikebrackett · 5 years

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3 Smart Tips for Increasing Your Credit Score

If you want to buy a house any time in the near future, your credit score matters. Lenders use your credit score to determine how risky it is to loan you money.

With a higher score, you’ll have a better chance of getting approved for a mortgage. Also, you’re more likely to qualify for a lower mortgage rate, as well. When you’re talking about a considerable-size loan like a mortgage, a lower half percentage point can mean thousands of dollars in interest savings over the life of the loan.

Since it’s such an important factor for your future borrowing needs, it’s incumbent on you to track your credit score and improve it as best you can. Rocket HQ can definitely help with the tracking part, but if you want to improve it, here are three smart tips to consider.

Pay Your Bills on Time

Your payment history counts for 35% of your credit score. If you’re paying your bills late or you have some accounts in collection, this seriously affects your score.

If you’re ready to grow your credit score, make a commitment to pay your bills and loans on time going forward. There are excellent mini-hacks to making late payments a thing of the past. Here are a few that I love:

Develop a Monthly Budget

Everyone knows their income, but not everyone knows their expenses. When you understand where your money is going, you’re less likely to have late payments.

Craft a budget with a digital tool like Tiller or YNAB so you know how you’re using your income each month. If you’re not into online apps, grab a piece of paper and start jotting down your monthly expenses. Start with the big expenses like housing, transportation, food, utilities, debts and entertainment. The first few budgets you create won’t be perfect, but you’ll improve over time.

The clarity that will come from this exercise will help you feel empowered and you’ll see that it’s easier to make your payments on time.

There is a lovely monthly feature with your credit card and utility bills called Auto Pay.

This feature will save you from missing your payments because…it’s automatic. You don’t even have to think about it. The due date arrives and as long as you’ve synched up a proper payment account (and there’s enough funds in your account), your bill is automatically paid.

Have an Emergency Fund

Perhaps you’re digging the idea of utilizing an auto pay feature, but you’re worried about having enough cash in your account. While your budget will definitely help, another layer of protection is to have an emergency fund valued at least one month of expenses in your checking account. This will cover any math errors on your end and will give you a safety net of cash reserves as you’re becoming used to your new budgeting lifestyle.

Keep Your Credit Utilization Low

The next most important element to concern yourself with when it comes to growing your credit score is not utilizing all the credit available to you. This factor counts for 30% of your overall credit score.

For example, if you have $10,000 of available credit and you’re using $9,000 of it, that will negatively affect your credit score. This type of activity shows creditors that you are a riskier borrower.

By keeping your credit utilization lower, you’re going to definitely increase your credit score. A good rule of thumb is to keep your utilization lower than 30%, but there is some debate on that specific percentage. Just know…the lower the better.

Here are some tactics to help with the process:

Decrease Your Spending with a “No Spend Challenge”

If you’re having difficulty keeping your credit utilization low, it might be time to go cold turkey on spending for a while. I’m not talking about starving yourself or not filling up your car with fuel. Simply analyzing your personal spending and practicing self-discipline by saying no to your “wants” for a while can go a long way.

For example, if you’re used to purchasing that $4 latte every day when you’re on your way to work, try brewing your own coffee for a full month and saying no to the lattes. This decrease in spending on your credit card (along with eliminating a few other pricey habits like clothes shopping, subscriptions, etc.) could go a long way in decreasing your utilization rate.

Increase Your Credit Limit

By simply reaching out to your credit card issuer and requesting it, you may be able to increase your credit limit. This action could automatically decrease your overall credit utilization rate.

Know that the credit issuer will make this decision (sometimes an online system does it as well) based on your credit history and how long you’ve been a card holder. Hey, it can’t hurt to ask. Just make sure you’re not spending more just because you have an increased line of credit. That’s a slippery slope that could prove counterproductive to improving your credit score

Set Up Balance Alerts

If you know you want your credit utilization rate lower than 30%, work with your credit card company to send you a notification via email or text when your balance approaches 25%. That way, you’re taking care of it before it becomes a problem.

A lot of credit card companies offer these complimentary alerts directly through their website. Sign up, save yourself the heartache and keep that utilization low.

Develop a Long History of Credit

The average credit account age is also a very important factor in increasing your overall credit score. This piece of the credit score puzzle has a 15% impact on your credit score. So, the longer you’ve been borrowing money from your lenders, the higher your score will be.

While it’s a great financial goal to pay off a credit card you’ve had for a while and close it, this can negatively affect your score. With this part of the credit score accounting for only 15% of your total, don’t feel too bad if you’re paying down your debt and eliminating lines of credit.

A win-win in this scenario would be to keep a card you’ve had for a while and pay for something very small with it each month (Netflix or Spotify subscription). That way, you’re growing your average account age and keeping your credit utilization low. If you end up utilizing a monthly budget, you’ll start to pay your bills on time and then you’ll truly hit the trifecta of credit score growth!

How are you growing your credit score? Please let us know in the comments below.

The post 3 Smart Tips for Increasing Your Credit Score appeared first on ZING Blog by Quicken Loans.

from Updates About Loans https://www.quickenloans.com/blog/3-smart-tips-increasing-credit-score

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mikebrackett · 5 years

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Keep, Donate or Toss: A Guide to Spring Cleaning

My method to decluttering isn’t exactly as inspiring as deciding what “sparks joy” and gently discarding the items that don’t. I tend to go with a tough love approach.

“Yeah, you loved that dress, but at this point it’s just taking up space.”

“Man, I wish people would quit loading me up with a bunch of junk ‘gifts’ that I’m just going to keep out of guilt for six months and then toss in the trash.”

“Stop pretending you’re cool enough to get invited to a party that would allow you to wear those sparkly pants. Get rid of them already!”

I’m a little bit ruthless, but it definitely helps me pare down all the stuff I own to items that I truly appreciate and am happy to have taking up valuable space in my home.

How can you channel this energy into your spring cleaning? Let’s take a look at some of the questions you should ask yourself anytime you’re trying to overhaul your large collection of “stuff.”

Figure Out Your Plan of Attack

First, you want to figure out how you’re going to sort through it all. Don’t resolve to do it all in one day – you don’t want to get burned out.

In fact, you might want to spread out your cleaning over several weeks, especially if you lead a busy life. Even doing a little bit each day helps. If you’re really limited on time, make it an ongoing, long-term project where you declutter as you go through your everyday actions.

For example, if you prepare your outfits the night before, take some of that time to do a quick once-over of your closet, looking for anything you haven’t worn in a while that can be put aside for donation.

You might also want to have a couple bins or boxes set aside so you can easily sort what’s going in the trash from what’s to be donated.

How do you decide what to donate and what to throw away? Basically, if it’s in good condition, you should consider donating it. Otherwise, it’s probably best to toss (or recycle) it.

Once you’ve decided on your strategy and are ready to get started, here are the questions you need to ask yourself when deciding to keep, donate or toss.

Would I Miss It?

One of the main questions you should be asking yourself when spring cleaning is, “If this item disappeared tomorrow, would I miss it?”

This won’t apply to everything (you might not miss your archive of tax documents, but you should still hold onto it), but it’s a good measure for things like clothes, books and other personal items. It helps you determine your emotional connection to an item.

If you have an old, beloved copy of a book you haven’t read in a while but are glad to have on your shelf, keep it. On the other hand, if you have a book that you’ve been promising yourself you’ll “get to” for several years now, it’s probably time to donate.

If you aren’t sure about something, give it a deadline. Stick it in the back of your closet for a month or so, and if you haven’t thought of it by the deadline, get rid of it.

Have I Used It Recently?

Even if an item has been really useful or important to you in the past, it doesn’t do any good to have a bunch of “Ghosts of Blue Jeans Pasts” cluttering up your space and limiting the room you have for newer, more useful items.

This can be especially helpful for sorting through clothing items. A lot of us have a tendency to hold onto things just in case we end up needing them – the beautiful but impractical pair of shoes that don’t go with anything in our closet, the shirt that fit us two sizes ago, the worn jeans we swear we’re going to turn into cutoffs one of these days.

Just because you haven’t used or worn an item recently doesn’t mean it automatically goes in the toss/donate pile. It just means that you need to evaluate why you haven’t used it in a while and if it’s really worth hanging onto.

Do I Need It?

Now, about those old tax documents.

You probably have a small stockpile of items that you either might need one day, or aren’t sure if it’s OK to throw out. While it’s generally a good idea to hold onto important documents you aren’t sure you’ll need, these records can start to pile up over the years, creating a big mess of paper that’s hard to navigate.

When it comes to important records and financial documents, here’s a basic rundown of how long you should keep them, according to finra.org:

Tax-related documents: 7 years

Property records: 6 years after sale of the home

Loan-related documents: Until the loan is paid off (you may want to keep proof that the loan was paid off indefinitely)

Paystubs: Until you receive your W-2

Bank and credit card statements: 1 month

Bills: Until payment clears

Keep any documentation of items that you plan to deduct/have previously deducted on your taxes. Additionally, if you make any large purchases, you should hold onto any related bills or receipts in case you ever need to substantiate an insurance claim.

What about the menagerie of junk drawer-type items you’ve got cluttering your home? Things like old remotes, cords that you aren’t sure what they belong to, old phone chargers and the like? That stuff is usually pretty safe to throw out. So are any instruction manuals you’ve kept for your belongings, since these are all online now. If you’re ever in need of instructions on how to use something, just type the item’s name and “manual” into your search engine.

Is It Taking Up More Space Than It’s Worth?

Sometimes, it’s nice to have some items on hand that you don’t necessarily use all the time but, when the occasion does arise, you’re glad you kept. A good example of this is a waffle iron.

Waffle irons are fun to have – especially if you have a kid who loves waffles. But realistically, how often are you making waffles? Once a month? Twice a year? For the other 300-plus days you aren’t using it, that waffle iron is just sitting there, taking up valuable cabinet space.

The key to these types of items is to ask yourself if they’re worth the space they take up when they aren’t in use. Maybe you consider whether to toss the waffle iron but decide that those Saturday mornings making waffles are more important than having the extra space.

Or you may decide that it’s not the end of the world if you have to make pancakes instead. There’s no right or wrong answer, as long as you’re being honest with yourself about an item’s usefulness.

Is There a Better Alternative?

The digital age offers many opportunities to minimize the amount of physical space things take up in your home. You can load photos onto a disc or flash drive, put your books onto an E-reader or get your music from a streaming service. If you have a giant DVD collection, save a few of your favorites, donate the rest and subscribe to a video streaming service to satisfy your entertainment needs.

Additionally, any physical resources and manuals you have can be given away and replaced with a simple internet connection. You don’t need multiple cookbooks or a set of encyclopedias when you have the World Wide Web at your fingertips.

If you have a bunch of files and documents that are taking up a lot of space, it might be worth it to spend a day scanning them onto your computer. Just be sure to back them up onto some sort of external drive.

While you’re doing this, go into all your important accounts and see which ones you can get paperless statements for. This will prevent a future build-up of document clutter and cut down on the amount of paper you have to shred.

While not everything in your life can (or should) be digitized, don’t be afraid to use technology to your advantage when it comes to decluttering and making the most of your space.

Get to a Comfortable (For You) Level of Clutter

This cleaning strategy requires you to be brutally honest with yourself. Asking yourself these questions will only get you so far if your answer to each one has you holding on to every single item.

We all have different tolerance levels for clutter, and while not everyone is going to end their spring cleaning as a minimalist with nothing but the bare essentials in their home, you should have at least a few bags of trash or donations to show for your hard work.

How do you know if you’re doing it right? If you end up with a house that’s got slightly less stuff in it and is easier to tidy, you’ve probably done a good job.

What are your top spring cleaning tips? Share them with us in the comments below!

The post Keep, Donate or Toss: A Guide to Spring Cleaning appeared first on ZING Blog by Quicken Loans.

from Updates About Loans https://www.quickenloans.com/blog/keep-donate-toss-guide-spring-cleaning

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mikebrackett · 5 years

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How to Get Rid of Private Student Loans

In 2012, 71 percent of college graduates left school with student loan debt, according to the Institute for College Access & Success (TICAS). Unfortunately, due to rising tuition costs, many students are forced to turn to private student loans.

But private student loans have high interest rates and lack the same protections and repayment programs of federal loans. This can make it difficult to know how to get rid of private student loans.

However, while you may not be eligible for Public Service Loan Forgiveness or income-driven repayment plans, you can still get help with private student loans.

The problem with private student loans

Private loans can be an essential tool in completing your education. If you’ve run out of federal loans, grants, and savings, taking out a private student loan can help fill the gap and keep you in school.

But private loans are typically more expensive than federal loans. While federal student loans can have interest rates as low as 4.45%, private lenders can charge more than 11% interest. Such a high rate can cause your balance to balloon over time, adding thousands to your loans.

In addition, if you have a variable-rate loan, your payments can fluctuate along with your interest charges. That can make it difficult to budget accordingly each month.

How to get rid of private student loans

If you’re struggling with your loans, there are options available to you to make your payments more manageable or to discharge your loans altogether. Here are seven ways to get private student loan debt relief:

1. Forgiveness programs

Only federal loans are eligible for the government’s Public Service Loan Forgiveness program. However, depending on your location and profession, you may be eligible for assistance from your state government or private organizations.

For example, if you are a licensed medical, dental, or mental health provider, you may be eligible for up to $50,000 to repay your student loans through the National Health Services Corps Loan Repayment Program. To qualify, you must commit to working full-time for two years in an underserved area.

Student Loan Hero has identified more than 120 repayment assistance or forgiveness programs. You can use the program search tool to look for programs in your area or profession.

2. Interest-only payments

If you cannot make your full minimum payment, some lenders will allow you to make interest-only payments on your loans. Instead of a payment that goes to the principal and interest, you’ll pay only the interest that accrues each month. LendKey is one of the lenders that allows borrowers to enter into an interest-only plan for up to two years.

This approach can significantly reduce how much you owe each month, but keep in mind that you’ll pay more on your loan over time.

To get on an interest-only plan, contact your lender’s customer service department. Your private loan lender may offer this payment option.

3. Forbearance

If you’re facing a financial hardship, such as unemployment or a medical emergency, some lenders, including College Ave, allow you to enter your loans into forbearance. That means you postpone making payments without going into default or delinquency.

However, interest will continue to accrue while your loans are in forbearance, so this should be a last resort when managing your loans. Make sure you understand all of the potential drawbacks of forbearance before applying.

4. Negotiating lower payments

Your lender wants you to keep making payments; they don’t want borrowers to default. So if you’re unable to make your payment each month, contact your lender and explain your situation.

If you’re going through a hardship, let your lender know. They may be willing to negotiate a lower payment for a limited time to help you get back on your feet. You can also try negotiating your interest rate. Some lenders offer interest rate deductions for setting up autopay, for example.

5. Disability Discharge

While federal loans are eligible for Total and Permanent Disability Discharge if you are severely injured and unable to work, private student loans do not qualify.

However, some private lenders will cancel a borrower’s debt in cases of permanent disability. There is not a set standard for this process, and it can vary from lender to lender. The best thing you can do is ask your lender if they offer disability discharge.

6. Bankruptcy

If you declare bankruptcy, you can cancel your debts, such as your credit card balance. In some cases, you may also be able to eliminate your student loan debt. However, getting private loans discharged through bankruptcy is much more difficult than with other forms of debt.

If you go this route, you must be able to prove an undue hardship, meaning you are incapable of paying back your loans while maintaining a basic standard of living.

Bankruptcy is a serious step that can have consequences that last for years, so it’s not something to enter into lightly. It also can cost you thousands in legal fees and court costs. Before filing for bankruptcy, make sure you have exhausted all of your other options.

7. Refinancing

If you need a lower monthly payment to make ends meet, another option is student loan refinancing. Through refinancing, you take out a new loan that covers the cost of some or all of your current loans. The new loan will have different repayment terms, such as length of repayment, interest rate, and monthly payment.

Some lenders offer repayment terms as long as 20 years. While you’ll pay back more in interest, extending your repayment period can make your monthly payment much more affordable.

Student Loan Refinancing CalculatorStep 1: Current loan infoStudent loan balanceAverage interest rateTermStep 2: New loan infoNew interest rateNew loan term (years)InterestMonthlyRateYears

OriginalNewSavingsInterest———Monthly———Rate———Years———

Refinancing $35,000 in student loans at a rate of 4.99% with a 10-year term would save — in interest paid and reduce your monthly payments by —.6 Best Banks To Refinance Your Student Loans10 Questions To Ask Before RefinancingTop Lenders To Refinance Your Parent PLUS Loan

Student loan refinancing rates as low as % APR. Check your rate in 2 minutes.

TotalMonthlyCurrentNew$0 Bottom line

While private student loans have fewer repayment options and benefits than federal loans, there are still ways to make your payments more manageable. If you are struggling with how to get rid of private student loans, contact your lender and explain your situation. Opening the line of communication can help you identify a solution and take charge of your debt.

Jolene Latimer contributed to this report.

Interested in refinancing student loans? Here are the top 6 lenders of 2019!

LenderVariable APREligible Degrees Check out the testimonials and our in-depth reviews! 1 Important Disclosures for SoFi. SoFi Disclosures Student loan Refinance:

Fixed rates from 3.890% APR to 8.074% APR (with AutoPay). Variable rates from 2.500% APR to 7.115% APR (with AutoPay). Interest rates on variable rate loans are capped at either 8.95% or 9.95% depending on term of loan. See APR examples and terms. Lowest variable rate of 2.500% APR assumes current 1 month LIBOR rate of 2.50% plus 0.00% margin minus 0.25% ACH discount. Not all borrowers receive the lowest rate. If approved for a loan, the fixed or variable interest rate offered will depend on your creditworthiness, and the term of the loan and other factors, and will be within the ranges of rates listed above. For the SoFi variable rate loan, the 1-month LIBOR index will adjust monthly and the loan payment will be re-amortized and may change monthly. APRs for variable rate loans may increase after origination if the LIBOR index increases. See eligibility details. The SoFi 0.25% AutoPay interest rate reduction requires you to agree to make monthly principal and interest payments by an automatic monthly deduction from a savings or checking account. The benefit will discontinue and be lost for periods in which you do not pay by automatic deduction from a savings or checking account. *To check the rates and terms you qualify for, SoFi conducts a soft credit inquiry. Unlike hard credit inquiries, soft credit inquiries (or soft credit pulls) do not impact your credit score. Soft credit inquiries allow SoFi to show you what rates and terms SoFi can offer you up front. After seeing your rates, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit inquiry. Hard credit inquiries (or hard credit pulls) are required for SoFi to be able to issue you a loan. In addition to requiring your explicit permission, these credit pulls may impact your credit score.

Terms and Conditions Apply. SOFI RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE. To qualify, a borrower must be a U.S. citizen or permanent resident in an eligible state and meet SoFi’s underwriting requirements. Not all borrowers receive the lowest rate. To qualify for the lowest rate, you must have a responsible financial history and meet other conditions. If approved, your actual rate will be within the range of rates listed above and will depend on a variety of factors, including term of loan, a responsible financial history, years of experience, income and other factors. Rates and Terms are subject to change at anytime without notice and are subject to state restrictions. SoFi refinance loans are private loans and do not have the same repayment options that the federal loan program offers such as Income Based Repayment or Income Contingent Repayment or PAYE. Licensed by the Department of Business Oversight under the California Financing Law License No. 6054612. SoFi loans are originated by SoFi Lending Corp., NMLS # 1121636. (www.nmlsconsumeraccess.org) 2 Important Disclosures for Earnest. Earnest Disclosures

To qualify, you must be a U.S. citizen or possess a 10-year (non-conditional) Permanent Resident Card, reside in a state Earnest lends in, and satisfy our minimum eligibility criteria. You may find more information on loan eligibility here: https://www.earnest.com/eligibility. Not all applicants will be approved for a loan, and not all applicants will qualify for the lowest rate. Approval and interest rate depend on the review of a complete application.

Earnest fixed rate loan rates range from 3.89% APR (with Auto Pay) to 7.89% APR (with Auto Pay). Variable rate loan rates range from 2.50% APR (with Auto Pay) to 7.27% APR (with Auto Pay). For variable rate loans, although the interest rate will vary after you are approved, the interest rate will never exceed 8.95% for loan terms 10 years or less. For loan terms of 10 years to 15 years, the interest rate will never exceed 9.95%. For loan terms over 15 years, the interest rate will never exceed 11.95% (the maximum rates for these loans). Earnest variable interest rate loans are based on a publicly available index, the one month London Interbank Offered Rate (LIBOR). Your rate will be calculated each month by adding a margin between 1.82% and 5.50% to the one month LIBOR. The rate will not increase more than once per month. Earnest rate ranges are current as of April 17, 2019, and are subject to change based on market conditions and borrower eligibility.

Auto Pay discount: If you make monthly principal and interest payments by an automatic, monthly deduction from a savings or checking account, your rate will be reduced by one quarter of one percent (0.25%) for so long as you continue to make automatic, electronic monthly payments. This benefit is suspended during periods of deferment and forbearance.

The information provided on this page is updated as of 04/17/2019. Earnest reserves the right to change, pause, or terminate product offerings at any time without notice. Earnest loans are originated by Earnest Operations LLC. California Finance Lender License 6054788. NMLS # 1204917. Earnest Operations LLC is located at 302 2nd Street, Suite 401N, San Francisco, CA 94107. Terms and Conditions apply. Visit https://www.earnest.com/terms-of-service, email us at [email protected], or call 888-601-2801 for more information on our student loan refinance product.

3 Important Disclosures for Laurel Road. Laurel Road Disclosures

FIXED APR Fixed rate options consist of a range from 3.75% per year to 5.80% per year for a 5-year term, 4.25% per year to 6.25% per year for a 7-year term, 4.55% per year to 6.65% per year for a 10-year term, 4.85% per year to 7.05% per year for a 15-year term, or 5.30% per year to 7.27% per year for a 20-year term, with no origination fees. The fixed interest rate will apply until the loan is paid in full (whether before or after default, and whether before or after the scheduled maturity date of the loan). The monthly payment for a sample $10,000 loan at a range of 3.75% per year to 5.80% per year for a 5-year term would be from $183.04 to $192.40. The monthly payment for a sample $10,000 loan at a range of 4.25% per year to 6.25% per year for a 7-year term would be from $137.84 to $147.29. The monthly payment for a sample $10,000 loan at a range of 4.55% per year to 6.65% per year for a 10-year term would be from $103.88 to $114.31. The monthly payment for a sample $10,000 loan at a range of 4.85% per year to 7.05% per year for a 15-year term would be from $78.30 to $90.16. The monthly payment for a sample $10,000 loan at a range of 5.30% per year to 7.27% per year for a 20-year term would be from $67.66 to $79.16.

However, if the borrower chooses to make monthly payments automatically by electronic funds transfer (EFT) from a bank account, the fixed rate will decrease by 0.25%, and will increase back up to the regular fixed interest rate described in the preceding paragraph if the borrower stops making (or we stop accepting) monthly payments automatically by EFT from the designated borrower’s bank account.

VARIABLE APR Variable rate options consist of a range from 2.75% per year to 6.30% per year for a 5-year term, 4.00% per year to 6.35% per year for a 7-year term, 4.25% per year to 6.40% per year for a 10-year term, 4.50% per year to 6.65% per year for a 15-year term, or 4.75% per year to 6.90% per year for a 20-year term, with no origination fees. APR is subject to increase after consummation. The variable interest rate will change on the first day of every month (“Change Date”) if the Current Index changes. The variable interest rates are based on a Current Index, which is the 1-month London Interbank Offered Rate (LIBOR) (currency in US dollars), as published on The Wall Street Journal’s website. The variable interest rates and Annual Percentage Rate (APR) will increase or decrease when the 1-month LIBOR index changes. The variable interest rates are calculated by adding a margin ranging from 0.25% to 3.80% for the 5-year term loan, 1.50% to 3.85% for the 7-year term loan, 1.75% to 3.90% for the 10-year term loan, 2.00% to 4.15% for the 15-year term loan, and 2.25% to 4.40% for the 20-year term loan, respectively, to the 1-month LIBOR index published on the 25th day of each month immediately preceding each “Change Date,” as defined above, rounded to two decimal places, with no origination fees. If the 25th day of the month is not a business day or is a US federal holiday, the reference date will be the most recent date preceding the 25th day of the month that is a business day. The monthly payment for a sample $10,000 loan at a range of 2.75% per year to 6.30% per year for a 5-year term would be from $178.58 to $194.73. The monthly payment for a sample $10,000 loan at a range of 4.00% per year to 6.35% per year for a 7-year term would be from $136.69 to $147.77. The monthly payment for a sample $10,000 loan at a range of 4.25% per year to 6.40% per year for a 10-year term would be from $102.44 to $113.04. The monthly payment for a sample $10,000 loan at a range of 4.50% per year to 6.65% per year for a 15-year term would be from $76.50 to $87.94. The monthly payment for a sample $10,000 loan at a range of 4.75% per year to 6.90% per year for a 20-year term would be from $64.62 to $76.93.

However, if the borrower chooses to make monthly payments automatically by electronic funds transfer (EFT) from a bank account, the variable rate will decrease by 0.25%, and will increase back up to the regular variable interest rate described in the preceding paragraph if the borrower stops making (or we stop accepting) monthly payments automatically by EFT from the designated borrower’s bank account.

All credit products are subject to credit approval.

Laurel Road began originating student loans in 2013 and has since helped thousands of professionals with undergraduate and postgraduate degrees consolidate and refinance more than $4 billion in federal and private school loans. Laurel Road also offers a suite of online graduate school loan products and personal loans that help simplify lending through customized technology and personalized service. In April 2019, Laurel Road was acquired by KeyBank, one of the nation’s largest bank-based financial services companies. Laurel Road is a brand of KeyBank National Association offering online lending products in all 50 U.S. states, Washington, D.C., and Puerto Rico. All loans are provided by KeyBank National Association, a nationally chartered bank. Member FDIC. For more information, visit www.laurelroad.com.

4 Important Disclosures for LendKey. LendKey Disclosures

Refinancing via LendKey.com is only available for applicants with qualified private education loans from an eligible institution. Loans that were used for exam preparation classes, including, but not limited to, loans for LSAT, MCAT, GMAT, and GRE preparation, are not eligible for refinancing with a lender via LendKey.com. If you currently have any of these exam preparation loans, you should not include them in an application to refinance your student loans on this website. Applicants must be either U.S. citizens or Permanent Residents in an eligible state to qualify for a loan. Certain membership requirements (including the opening of a share account and any applicable association fees in connection with membership) may apply in the event that an applicant wishes to accept a loan offer from a credit union lender. Lenders participating on LendKey.com reserve the right to modify or discontinue the products, terms, and benefits offered on this website at any time without notice. LendKey Technologies, Inc. is not affiliated with, nor does it endorse, any educational institution.

5 Important Disclosures for CommonBond. CommonBond Disclosures

Offered terms are subject to change. Loans are offered by CommonBond Lending, LLC (NMLS # 1175900). If you are approved for a loan, the interest rate offered will depend on your credit profile, your application, the loan term selected and will be within the ranges of rates shown.

All Annual Percentage Rates (APRs) displayed assume borrowers enroll in auto pay and account for the 0.25% reduction in interest rate. All variable rates are based on a 1-month LIBOR assumption of 2.49% effective March 10, 2019.

6 Important Disclosures for Citizens Bank. Citizens Bank Disclosures Education Refinance Loan Rate Disclosure: Variable rate, based on the one-month London Interbank Offered Rate (“LIBOR”) published in The Wall Street Journal on the twenty-fifth day, or the next business day, of the preceding calendar month. As of April 1, 2019, the one-month LIBOR rate is 2.50%. Variable interest rates range from 3.00% – 9.74% (3.00% – 9.74% APR) and will fluctuate over the term of the borrower’s loan with changes in the LIBOR rate, and will vary based on applicable terms, level of degree earned and presence of a co-signer. Fixed interest rates range from 3.89% – 9.99% (3.89% – 9.99% APR) based on applicable terms, level of degree earned and presence of a co-signer. Lowest rates shown are for eligible, creditworthy applicants with a graduate level degree, require a 5-year repayment term and include our Loyalty discount and Automatic Payment discounts of 0.25 percentage points each, as outlined in the Loyalty and Automatic Payment Discount disclosures. The maximum variable rate on the Education Refinance Loan is the greater of 21.00% or Prime Rate plus 9.00%. Subject to additional terms and conditions, and rates are subject to change at any time without notice. Such changes will only apply to applications taken after the effective date of change. Please note: Due to federal regulations, Citizens Bank is required to provide every potential borrower with disclosure information before they apply for a private student loan. The borrower will be presented with an Application Disclosure and an Approval Disclosure within the application process before they accept the terms and conditions of their loan. Federal Loan vs. Private Loan Benefits: Some federal student loans include unique benefits that the borrower may not receive with a private student loan, some of which we do not offer with the Education Refinance Loan. Borrowers should carefully review their current benefits, especially if they work in public service, are in the military, are currently on or considering income based repayment options or are concerned about a steady source of future income and would want to lower their payments at some time in the future. When the borrower refinances, they waive any current and potential future benefits of their federal loans and replace those with the benefits of the Education Refinance Loan. For more information about federal student loan benefits and federal loan consolidation, visit http://studentaid.ed.gov/. We also have several resources available to help the borrower make a decision at http://www.citizensbank.com/EdRefinance, including Should I Refinance My Student Loans? and our FAQs. Should I Refinance My Student Loans? includes a comparison of federal and private student loan benefits that we encourage the borrower to review. Citizens Bank Education Refinance Loan Eligibility: Eligible applicants may not be currently enrolled. Applicants with an Associate’s degree or with no degree must have made at least 12 qualifying payments after leaving school. Qualifying payments are the most recent on time and consecutive payments of principal and interest on the loans being refinanced. Primary borrowers must be a U.S. citizen, permanent resident or resident alien with a valid U.S. Social Security Number residing in the United States. Resident aliens must apply with a co-signer who is a U.S. citizen or permanent resident. The co-signer (if applicable) must be a U.S. citizen or permanent resident with a valid U.S. Social Security Number residing in the United States. For applicants who have not attained the age of majority in their state of residence, a co-signer will be required. Citizens Bank reserves the right to modify eligibility criteria at anytime. Interest rate ranges subject to change. Education Refinance Loans are subject to credit qualification, completion of a loan application/consumer credit agreement, verification of application information, certification of borrower’s student loan amount(s) and highest degree earned. Loyalty Discount Disclosure: The borrower will be eligible for a 0.25 percentage point interest rate reduction on their loan if the borrower or their co-signer (if applicable) has a qualifying account in existence with us at the time the borrower and their co-signer (if applicable) have submitted a completed application authorizing us to review their credit request for the loan. The following are qualifying accounts: any checking account, savings account, money market account, certificate of deposit, automobile loan, home equity loan, home equity line of credit, mortgage, credit card account, or other student loans owned by Citizens Bank, N.A. Please note, our checking and savings account options are only available in the following states: CT, DE, MA, MI, NH, NJ, NY, OH, PA, RI, and VT and some products may have an associated cost. This discount will be reflected in the interest rate disclosed in the Loan Approval Disclosure that will be provided to the borrower once the loan is approved. Limit of one Loyalty Discount per loan and discount will not be applied to prior loans. The Loyalty Discount will remain in effect for the life of the loan. Automatic Payment Discount Disclosure: Borrowers will be eligible to receive a 0.25 percentage point interest rate reduction on their student loans owned by Citizens Bank, N.A. during such time as payments are required to be made and our loan servicer is authorized to automatically deduct payments each month from any bank account the borrower designates. Discount is not available when payments are not due, such as during forbearance. If our loan servicer is unable to successfully withdraw the automatic deductions from the designated account three or more times within any 12-month period, the borrower will no longer be eligible for this discount. Co-signer Release: Borrowers may apply for co-signer release after making 36 consecutive on-time payments of principal and interest. For the purpose of the application for co-signer release, on-time payments are defined as payments received within 15 days of the due date. Interest only payments do not qualify. The borrower must meet certain credit and eligibility guidelines when applying for the co-signer release. Borrowers must complete an application for release and provide income verification documents as part of the review. Borrowers who use deferment or forbearance will need to make 36 consecutive on-time payments after reentering repayment to qualify for release. The borrower applying for co-signer release must be a U.S. citizen or permanent resident. If an application for co-signer release is denied, the borrower may not reapply for co-signer release until at least one year from the date the application for co-signer release was received. Terms and conditions apply. Borrowers whose loans were funded prior to reaching the age of majority may not be eligible for co-signer release. Note: co-signer release is not available on the Student Loan for Parents or Education Refinance Loan for Parents. 2.50% – 7.27%1Undergrad & Graduate

Visit Earnest

2.50% – 7.12%3Undergrad & Graduate

Visit SoFi

2.81% – 8.79%4Undergrad & Graduate

Visit Lendkey

2.50% – 6.65%2Undergrad & Graduate

Visit Laurel Road

2.55% – 7.12%5Undergrad & Graduate

Visit CommonBond

3.00% – 9.74%6Undergrad & Graduate

Visit Citizens

Our team at Student Loan Hero works hard to find and recommend products and services that we believe are of high quality. We sometimes earn a sales commission or advertising fee when recommending various products and services to you. Similar to when you are being sold any product or service, be sure to read the fine print to help you understand what you are buying. Be sure to consult with a licensed professional if you have any concerns. Student Loan Hero is not a lender or investment advisor. We are not involved in the loan approval or investment process, nor do we make credit or investment related decisions. The rates and terms listed on our website are estimates and are subject to change at any time.

The post How to Get Rid of Private Student Loans appeared first on Student Loan Hero.

from Updates About Loans https://studentloanhero.com/featured/how-to-get-rid-of-private-student-loans/

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mikebrackett · 5 years

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#FASuccess Ep 121: Crafting A Differentiated Investment Process By Engaging Clients And Community, with Rachel Robasciotti

Welcome back to the 121st episode of Financial Advisor Success Podcast!

My guest on today’s podcast is Rachel Robasciotti. Rachel is the founder of Robasciotti & Philipson, an independent RIA in the San Francisco area that oversees $140 million of assets for more than 100 individual clients.

What’s unique about Rachel, though, is the way that her firm built its own unique proprietary investment process, dubbed RISE for Return on Investment and Social Equity, by going beyond just doing socially responsible investing and actually engaging her local community to develop the screens that they would use to decide what companies would or wouldn’t be in their client portfolios.

In this episode, we talk in depth about Rachel’s journey through the socially responsible investing and ESG evolution over the past 15 years, why she ultimately moved away from traditional SRI mutual funds and ESG screens, how she developed her local RISE Community to ongoing quarterly feedback on her investment process, the tool she uses to take the feedback from her community and implement it into a portfolio of individually screened stocks, and the way that her engagement with the RISE Community she’s created has also become her biggest driver of marketing and business development anyways.

We also talk about Rachel’s own path through the financial services industry. How she was incredibly successful starting in a major insurance firm at a young age but ultimately decided to go out on her own as an independent at the age of 25, how the driver of her shift was not the financial opportunity of the independent channel but simply the ability to create the particular vision that she had about how to serve the clients that she wanted, the way that she wanted, while hiring the team and creating the culture she wanted, the way she survived in her early years of relative isolation and found community as a solo advisor until her firm grew, and how her approach to marketing and the way that she communicates with clients has changed over the years as she’s gained experience and professional credibility.

And be certain to listen to the end, where Rachel shares some of the unique challenges that she faced starting her firm not only as a young advisor, but as a young black female who came from a poor upbringing, who had no safety net or family to fall back on as she launched her firm from scratch, the sometimes stifling pressure on people from different cultures to act and talk certain ways to conform to the industry standard expectations of financial advisors, and how the reality is that everyone needs help from time to time, and often the biggest differentiator of success is not whether you need the help or not but how helpable you make yourself to receive that assistance and how easy you make it to be helped or not in the first place.

from Updates About Loans https://www.kitces.com/blog/rachel-robasciotti-philipson-woman-owned-rise-community-social-justice-investing/

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mikebrackett · 5 years

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Retail Sales Surge While Housing Starts Fall Off – Market Update

I hope everyone had a good holiday if you were celebrating! My family was in town, so it was a good weekend. Detroit is abuzz because a local legend is coming back to be the general manager of the Red Wings. It’s early, but hope springs anew that Hockeytown might soon be restored to its former glory.

We’ll have to see if retail sales numbers for April received a bump because of increased activity from our season ticket purchases. It’s a stretch, but I’ve got to do something to spice up the beginning of these articles. Let’s jump into the headlines.

Headline News

Industrial Production

Industrial production numbers fell by 0.1% in March and manufacturing was flat. Meanwhile, capacity utilization in factories fell 0.2% to 78.8%. However, utilization numbers for February were upwardly revised by 0.8% to 79%.

Business equipment was up 0.4% and has risen 3.8% on the year. Businesses are ordering more machinery in order to ramp up production. However, production of consumer goods was down 0.2% and has fallen 0.1% on the year. Meanwhile, manufacturing volumes overall are only up to 1% on the year versus 2.8% for overall industrial production.

Vehicle production also dropped 2.5% on the month and has fallen 4.5% on the year. Meanwhile, growth in the high-tech sector was up 0.2% monthly and 3.5% on the year.

Production in utilities was up 0.2% in March, while mining production fell 0.8%. Despite this, production in the sector is still up 10.5% yearly.

Housing Market Index

In numbers for April, home builder sentiment went up one point to 63, matching expectations. The index has been slowly climbing back from a downturn at the end of the year and recent lower mortgage rates have helped.

Current cells are up a single point to 69, while the outlook for future sales over the next 6 months was down a point at 71. Finally helping the numbers was a three-point increase in the amount of traffic going through new homes at 47. However, this remains a week number.

On a regional basis, the West is in front at 69. Meanwhile, the South is close on its heels at 67. The Midwest and Northeast are a ways off at 53 and 51, respectively.

MBA Mortgage Applications

With interest rates ticking back up slightly, refinance applications were down 8%, and overall applications fell 3.5% despite a 1% uptick in purchase applications.

The average rate for a 30-year fixed conforming mortgage was up four basis points to 4.44%.

International Trade

The U.S. trade deficit decreased by $1.7 billion in February to come in at $49.4 billion. Exports were up 1.1% while imports rose just 0.2%.

Exports of goods were up 1.5% to $139.5 billion. Orders of civilian aircraft were up by $2.2 billion. While that was the big driver, there was also a $600 million increase in exports of monetary gold, and consumer goods exports of food and other farm-based products were down 200 million. However, exports of services were up 0.3% at $70.1 billion.

On the import side, these settled at $259.1 billion overall. Consumer goods imports were up $1.6 billion, and industrial supplies were down $1.2 billion, even accounting for an $800 million rise in oil imports.

Jobless Claims

Initial jobless claims were down 5,000 to come in at 192,000 overall. This brought the 4-week moving average down to 201,250, a decrease of 6,000 on the week.

Meanwhile, on the continuing claims end, these were down 63,000 to 1.653 million. Meanwhile, the 4-week average was down 22,750 to about 1.713 million.

Retail Sales

Retail sales for March were up 1.6%, which was well above analyst expectations. While this is a good thing, gains have also been uneven. The report points out that sales were down 1.6% in December.

Taking out cars and trucks, sales were still up 1.2%. When further removing gas, these were up 0.9%. Finally, sales in the control group were up 1%.

Vehicle sales were up 3.3% in March, while gas station sales were up 3.5% as the cost of fuel rose. Restaurant sales were also up 0.8% and have notched three consecutive monthly gains along with furniture and home stores, up 1.7% in March.

General merchandise sales were up 0.7%, but department store sales were flat and overall merchandise purchases have shown weakness lately.

Housing Starts

Starts were at their weakest points since May 2017, being down 3,000 to 1.139 million on a seasonally adjusted annual basis. However, the changes were worse than that because starts from the month of February were also revised down by 20,000. Starts are down a total of 14.2% on the year.

On the permits side, single-family permits were down 1.1% in March and 5.1% on the year, with the overall permits settling at 1.269 million on an annual basis. Single-family permits were down 5.1% on the year with overall building permits falling 7.8%.

The lone piece of good news is that completions were up 11.9% to 938,000 on the single-family side.

Mortgage Rates

Fixed rates were up a bit last week after several weeks of going lower. Still, if you happen to be in the market to purchase or refinance, they’re still lower than they were last year at this time, so it could be advantageous to lock your rate now.

The average rate for a 30-year-fixed mortgage with 0.5 points paid in fees was up five basis points to 4.17% last week. This is down from 4.47% a year ago.

Meanwhile, on the shorter end of things, the average rate for a 15-year fixed mortgage with 0.5 point was up a couple of basis points to 3.62%. This is down from 3.94% last year.

Finally, the average rate for a 5-year treasury-indexed, hybrid adjustable rate mortgage (ARM) was down two basis points to settle at 3.78% with 0.3 points paid. This is up from 3.67% at the same time in 2018.

Stock Market

Image search and sharing platform Pinterest had its first day on the public stock exchange Friday along with videoconferencing company Zoom. Pinterest shares were up 28% from the offering price to finish the day at $24.40. Meanwhile, shares in Zoom were up 72% to close at $62. These were just a harbinger of a good day for the market in general.

The Dow Jones Industrial Average was up 110 points on the day to close at 26,559.54 up 0.56% on the week. The S&P 500 finished the week down 0.08% after closing at 2,905.03. It was up 4.58 points on the day. Finally, the Nasdaq was up 0.17% on a weekly basis after finishing the day up 1.98 points to close at 7,998.06.

The Week Ahead

Monday, April 22

Existing Home Sales (10:00 a.m. ET) – Existing Home Sales tallies the number of previously constructed homes, condominiums and co-ops that were sold during the month. Existing homes (also known as “home resales”) account for a larger share of the market than new homes and indicate housing market trends.

Tuesday, April 23

FHFA House Price Index (9:00 a.m. ET) – The Federal Housing Finance Agency (FHFA) House Price Index (HPI) covers single-family housing using data provided by Fannie Mae and Freddie Mac. The HPI is derived from transactions involving conforming conventional mortgages purchased or securitized by Fannie Mae or Freddie Mac.

New Home Sales (10:00 a.m. ET) – This report measures the number of newly constructed homes with a committed sale during the month. This will be the report for January.

Wednesday, April 24

MBA Mortgage Applications (7:00 a.m. ET) – The mortgage applications index measures applications to mortgage lenders. This is a leading indicator for single-family home sales and housing construction.

Thursday, April 25

Durable Goods Orders (8:30 a.m. ET) – These are based on new orders placed with domestic manufacturers for factory goods.

Jobless Claims (8:30 a.m. ET) – New unemployment claims are compiled weekly to show the number of individuals filing for unemployment insurance for the first time. An increasing trend suggests a deteriorating labor market. The 4-week moving average of new claims smooths out weekly volatility.

Friday, April 26

Gross Domestic Product (GDP) (8:30 a.m. ET) – This release measures the monetary value of all final goods and services produced within the U.S. This report is released on a quarterly basis.

Consumer Sentiment (10:00 a.m. ET) – The University of Michigan’s Consumer Survey Center questions 500 households each month on their financial conditions and attitudes about the economy. Consumer sentiment is directly related to the strength of consumer spending.

We get both new and existing home sales as well as a look at the overall economy with GDP next week. It’s going to be busy and we’ll have it all covered in Market Update.

Mortgage rates and economic data certainly aren’t everyone’s thing. If you’ve got a craving for something a little less dry, we’ve got plenty of home, money and lifestyle content to share with you if you subscribe to the Zing Blog below. Today is Earth Day, but practical tips on how to conserve and be more mindful of resources are helpful year-round. Here are seven ways to celebrate Earth Day every day. Have a great week!

The post Retail Sales Surge While Housing Starts Fall Off – Market Update appeared first on ZING Blog by Quicken Loans.

from Updates About Loans https://www.quickenloans.com/blog/retail-sales-surge-housing-starts-fall-off-market-update

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mikebrackett · 5 years

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Sen. Elizabeth Warren Unveils Ambitious Student Loan Plan

2020 presidential hopeful Sen. Elizabeth Warren (D-Mass.) rolled out her proposal Monday for addressing the student loan crisis, including an estimated $640 billion in debt forgiveness.

In a policy prescription she described as “truly transformational,” Warren said she would seek to cancel up to $50,000 per person for 42 million borrowers. The plan would provide an economic stimulus for the middle class and help reduce inequalities among African American, white and Latino students, she said.

Warren also advocated for making all two- and four-year college programs free of tuition or fees, while expanding Pell Grants by an additional $100 billion to help fund other student costs beyond tuition.

Warren and other candidates have offered a variety of ideas on making college affordable and dealing with the current mass of student debt (see here and here, for example), but Warren’s latest policy plank, unveiled in the online magazine Medium, is among the most comprehensive so far in terms of size and detail.

While the one-time cost of loan forgiveness would run about $640 billion, the free college initiative would require an estimated $1.25 trillion over the first 10 years, Warren said.

She added, however, the costs could be “more than covered” by a separate Warren proposal for a marginal 2% annual tax on wealth above $50 million — something the senator said would impact about 75,000 high net worth families.

In terms of the forgiveness plan, it would offer full forgiveness to those from households with annual incomes below $100,000, while those from families making $100,000 to $250,000 would be eligible for partial forgiveness.

Additional elements of the plan include a special fund for Historically Black Colleges and Universities and Minority-Serving Institutions, as well as prohibiting public colleges from considering citizenship status in its admissions process.

Interested in refinancing student loans? Here are the top 6 lenders of 2019!

LenderVariable APREligible Degrees Check out the testimonials and our in-depth reviews! 1 Important Disclosures for SoFi. SoFi Disclosures Student loan Refinance:

3 Important Disclosures for Laurel Road. Laurel Road Disclosures

All credit products are subject to credit approval.

4 Important Disclosures for LendKey. LendKey Disclosures

5 Important Disclosures for CommonBond. CommonBond Disclosures

Visit Earnest

2.50% – 7.12%3Undergrad & Graduate

Visit SoFi

2.81% – 8.79%4Undergrad & Graduate

Visit Lendkey

2.50% – 6.65%2Undergrad & Graduate

Visit Laurel Road

2.55% – 7.12%5Undergrad & Graduate

Visit CommonBond

3.00% – 9.74%6Undergrad & Graduate

Visit Citizens

The post Sen. Elizabeth Warren Unveils Ambitious Student Loan Plan appeared first on Student Loan Hero.

from Updates About Loans https://studentloanhero.com/featured/elizabeth-warren-student-loan-plan/

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mikebrackett · 5 years

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How Student Loans Impact Your Debt-to-Income Ratio

You recently applied for student loan refinancing, a car loan or maybe a mortgage, but soon after are notified that your application was not accepted. Denied. Your credit score is solid, you make a decent living and you’ve never missed a payment. So, what gives?

There’s one factor you might not be considering: your debt-to-income ratio.

What is a debt-to-income ratio?

Your debt-to-income ratio is a percentage of how much debt you owe relative to your income. Often referred to as “DTI” for short, it’s an important number in your financial life.

When applying for a loan or other type of credit, many lenders look not only at your overall credit score, but also at your DTI to determine if you’re a good candidate. If a large chunk of your income is going to debt each month, lenders may be wary of extending further credit.

The lower your debt-to-income ratio, the better. But if you have pesky student loans, they could be pushing your DTI into the red zone, which can make you look risky to creditors and make it difficult to reach your financial goals.

Front-end vs. back-end DTI

As if the whole concept of DTI weren’t complicated enough, you actually have two different debt-to-income ratios: front-end DTI and back-end DTI.

Your front-end debt-to-income ratio is how much of your gross income goes toward housing costs, such as mortgage payments and insurance. If you don’t yet own a home and are applying for a mortgage, your front-end DTI is what you would be paying if you were approved.

Your back-end debt-to-income ratio is how much of your gross income goes toward all of your debt obligations, including credit card payments, student loan payments, mortgage — even child support and alimony.

Typically, lenders would like your front-end DTI to be 28% or less. For back-end DTI, the standard benchmark is typically 36% or less. These numbers aren’t set in stone and may vary by lender, but if you have a generally high debt-to-income ratio, you may have difficulty getting approved for new loans.

In fact, according to the Consumer Financial Protection Bureau, 43% is the maximum DTI a borrower can have in order to get approved for a qualified mortgage.

How student loans impact your debt-to-income ratio

Your student loans aren’t accounted for in the front-end debt-to-income ratio, but that debt certainly impacts the back-end. If you have a steep student loan balance, your DTI can be high — in some cases, too high, effectively limiting your options to buy a house while owing student loans, to refinance your student debt, and more.

For example, let’s say you are applying for a mortgage. Your gross income (before taxes) is $3,000 per month and your monthly debt breakdown looks like this:

Estimated mortgage payment and insurance = $1,000 Student loan payment = $300 Credit card payment = $50 Car payment = $200

In this scenario, your total debt payments add up to $1,550 per month. To find out your DTI, you’d divide your total debts by your gross income or use the calculator below.

With either method, you’ll find that your monthly debt of $1,550, divided by an income of $3,000, comes out to a DTI of 51.6%. Yikes!

Debt-to-Income (DTI) CalculatorYour infoGross annual incomeMonthly housing costMonthly minimum credit card paymentsMonthly auto loan paymentsMonthly student loan paymentsMonthly personal loan paymentsOther monthly debtBased on an income of $60,000, monthly housing costs of $900 and $100 in other monthly debt payments, your Front-End DTI is — and your Back-End DTI is —.6 Best Banks To Refinance Your Student Loans6 Ways To Lower Your Debt-to-Income RatioHow Your Student Loans Can Affect Your Mortgage Application

Student loan refinancing rates as low as % APR. Check your rate in 2 minutes.

TotalFront-End DTIBack-End DTI

Your debt-to-income ratio, student loans and how they affect your mortgage

If over half of your income would be going to your debt obligations — as in the example above — you won’t get approved for that mortgage.

“I think debt-to-income ratios are about to become very problematic for people who carry student loan debt and want to buy a house,” said Aaron LaRue, borrower-experience lead at Clara Lending, which is now part of SoFi.

“When applying for a home loan, debt-to-income ratios can be one of the largest limiting factors when calculating home affordability. I’d argue that this is a bigger issue than having a low credit score. As far as qualifying, it’s right up there with how much you have for a down payment,” LaRue added.

And if you don’t have much for a down payment, your DTI could matter even more. A down payment is a way for lenders to reduce risk — the more you pay up front, the less they need from a mortgage. A 20% down payment is the standard amount if you want to avoid paying private mortgage insurance, although the Federal Housing Administration loan program offers mortgages down payments as low as 3.5%.

But for millennials, student loans may make home ownership a tough goal to achieve. Only 34% of millennials with student loans own a home, according to an October 2018 study by MagnifyMoney. (Note: Both MagnifyMoney and Student Loan Hero are owned by LendingTree.) The study also found that millennials with student loans who did own a home tended to have less valuable properties and higher mortgages than those without student loans.

How to improve your debt-to-income ratio, student loans and all

If you’re thinking of applying for a credit card, mortgage, car loan, student loan refinancing or another type of funding, it’s important to not only maintain good credit, but a healthy debt-to-income ratio as well.

For example, when mortgage lenders examine your back-end DTI, a large student loan payment can be “a killer,” according to LaRue. “A monthly payment of a few hundred dollars can translate to a loss of tens of thousands of dollars off of your maximum home purchase price,” he explained.

Before you go after a big financial goal, calculate your debt-to-income ratio. If it’s too high, you may want to hold off for a while until you improve your situation. Otherwise, you’re much more likely to face rejection.

I’ll let you in on a little secret: I was actually rejected for student loan refinancing because of my debt-to-income ratio. And honestly, I should’ve known better, considering I was making $30,000 at the time and my student loans balance was also at $30,000. If your loans are the same level or even higher than your salary, it’s likely your DTI is also too high!

But before you give up on applying for a mortgage or refinancing forever, there are ways you can improve your debt-to-income ratio:

Ask for a raise Earn more through side hustling Pay off your debt ASAP

In other words, to improve your DTI, you need to earn more, get rid of some debt, or both. Given the example above, if you were to focus on eliminating your student loans and car loan, you’d be left with a prospective $1,000 mortgage payment and $50 credit card bill each month. And $1,050, divided by $3,000, comes out to a more reasonable 35%.

If you want to improve your debt-to-income ratio to pursue your big life goals, make it a point to pay off your debt as soon as possible and find ways to supplement your income. It could mean the difference between getting a letter that says, “Congratulations!” and one that begins, “We regret to inform you…”

By preparing now and understanding how student loans affect debt-to-income ratio, you can take the necessary steps to go after what you want without being automatically rejected.

Dillon Thompson contributed to this report.

Interested in refinancing student loans? Here are the top 6 lenders of 2019!

LenderVariable APREligible Degrees Check out the testimonials and our in-depth reviews! 1 Important Disclosures for SoFi. SoFi Disclosures Student loan Refinance:

3 Important Disclosures for Laurel Road. Laurel Road Disclosures

All credit products are subject to credit approval.

4 Important Disclosures for LendKey. LendKey Disclosures

5 Important Disclosures for CommonBond. CommonBond Disclosures

Visit Earnest

2.50% – 7.12%3Undergrad & Graduate

Visit SoFi

2.81% – 8.79%4Undergrad & Graduate

Visit Lendkey

2.50% – 6.65%2Undergrad & Graduate

Visit Laurel Road

2.55% – 7.12%5Undergrad & Graduate

Visit CommonBond

3.00% – 9.74%6Undergrad & Graduate

Visit Citizens

The post How Student Loans Impact Your Debt-to-Income Ratio appeared first on Student Loan Hero.

from Updates About Loans https://studentloanhero.com/featured/student-loan-debt-to-income-ratio/

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mikebrackett · 5 years

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The Economics Of Growth: Why The Second 100 Clients Are Far Less Profitable Than The First

The traditional path to growing an advisory firm – or any business – is fairly straightforward: craft a product or service that you can deliver profitably, and then deliver it profitably to more and more people. The greater the number of clients or customers who are paying for the solution, the more total revenue the business generates, and the more in profits that accrue to the owners (assuming a reasonable profit margin in the first place). In the early years in particular, when a financial advisor still has a lot of capacity (i.e., time) and not a lot of clients, adding more clients and the revenue they bring can quickly ramp up the income of the financial advisor themselves.

But only up to a point: the individual capacity of a financial advisor is typically no more than 100 clients in an ongoing advisory relationship. As once the advisor’s individual capacity is reached, the only way to continue to add more clients is to add more staff to service them, including another advisor to work with them. Which suddenly makes the next 100 clients not nearly as profitable to the advisor as the first 100 might have been.

Because the reality is that for a financial advisor’s first 100 clients, the advisor is actually paid in two ways: part of the revenue compensates the advisor for the work he/she does in the business, while the (smaller) remainder is compensation as profits for being the owner of a successful advisory business. While for the next 100 clients, the next advisor is paid for doing the advisory work in the business, while the advisory firm owner is “only” compensated with the profits of growing the business larger. Which means in practice that an advisory firm owner might take home 70% to 80% of the revenue from the first 100 clients in combined profits… but only 20% to 30% of the revenue for the next 100!

Of course, continuing to grow an advisory firm, and participate in the profits, is still a goal of the business (and the income of the owner), for those who have a goal to grow further. But it also means that for many advisors, it may actually be far easier and more efficient to grow not by adding another 100 clients, but trying to replace the existing 100 clients with others who are more affluent and can pay higher fees. Effectively generating more revenue for the firm not from more clients in total, but revenue per client instead. All of which drops to the bottom line take-home pay of an advisor-owner with fixed overhead costs.

At a minimum, though, the key point is simply to recognize that what it takes to generate more income, once an advisor reaches capacity, is very different depending on whether the advisor tries to grow a larger business with more clients, or simply via more revenue from each client. Not that there is necessarily a “right” or “wrong” path, but growing the firm with more clients does mean added staff, overhead, and risk, in an effort to grow a larger business with less incremental profit that comes with it. Which means if advisors are going to go the path of growth through more clients, it should at least be done with eyes wide open… and an awareness that there are (potentially more efficient) alternatives to growth instead!

from Updates About Loans https://www.kitces.com/blog/economics-growth-second-100-clients-less-profitable-economies-of-scale-wages-profits/

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mikebrackett · 5 years

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What’s the Fastest Way to Get Student Loan Forgiveness?

It’s little surprise that many of America’s 45 million student loan borrowers are looking to loan forgiveness programs to ease their burden.

But while loan forgiveness sounds like a dream come true, you might be waiting a while: Some programs don’t discharge your loan for a decade or more.

If you’re looking to get rid of your student loans ASAP, here are your options — from the quick to the slow and everything in between.

1. Student loan discharge for special circumstances

Amount of time for loan forgiveness: Immediately

If you have a special circumstance that makes you unable to pay your loans, student loan discharge programs could get rid of your balance right away. While most borrowers probably won’t have these exceptional circumstances, they’re worth noting in case you qualify.

Among the criteria that could discharge your loan balance immediately:

Total and permanent disability discharge: For borrowers who have suffered a permanent disability. Closed school discharge: If your school closed while you were enrolled or shortly after you withdrew Discharge for false certification, unauthorized payment or unpaid refund: For victims of identity theft or if your school didn’t pay a refund owed to the government or a lender Borrower defense discharge: Available to those who can prove they were defrauded by their school — though note that the courts just recently ordered the Department of Education to reinstate this rule, so there’s a large backlog of applications Discharge in bankruptcy: If you can qualify under Chapter 7 or Chapter 13 bankruptcy (rare but not impossible)

Apart from the time it takes to collect and process documents, these loan discharge programs should cancel your student loan debt right away if you qualify (assuming there are no more roadblocks from the federal government).

2. Student loan repayment assistance programs (LRAPs)

Amount of time for loan forgiveness: Varies, but typically two to three years

Chances are, you don’t have a special circumstance that qualifies you for the loan discharge programs above. But you might be eligible for a loan repayment assistance program (LRAP) from the federal government, state government, private organization or university.

Unlike forgiveness programs, which cancel your debt balance, most LRAPs give you money to pay off a big chunk of your debt at once. Some will also pay off a percentage of your debt each year until your debt is gone.

Most LRAPs have professional requirements, asking that you work in a certain field for a few years, often in a nonprofit organization or with an underserved population. But unlike the Public Service Loan Forgiveness (PSLF) discussed below, these programs don’t ask for 10 years of service.

Some jobs that qualify for various loan repayment assistance programs include doctors, nurses, teachers, veterinarians, pharmacists, dentists and military service members and veterans. But there are still others — the state of Maine, for example, also has an LRAP for STEM professionals.

Here are just a few examples of LRAPs so you can get a sense of how they typically work.

NURSE Corps Loan Repayment: Forgives up to 60% of your student loan balance after two years of working as a nurse in an underserved area, plus an additional 25% for a third year of service. John R. Justice Student Loan Repayment Program: Awards up to $10,000 per year in student loan assistance to public sector lawyers for a maximum of $60,000. National Health Service Corps (NHSC) loan repayment assistance: Provides up to $50,000 to health care providers who commit to working at an eligible site for two years. California State Loan Repayment Program: Offers up to $110,000 to health care providers who commit to two to six years in a professional shortage area in California. University of Virginia School of Law Loan Forgiveness: Provides benefits that will cover 100% of your law school loans if you graduated from the University of Virginia and go on to make less than $55,000 per year.

These LRAPs could help you pay off a hefty portion of your student loans, and many only ask for two to three years of service. Even if you don’t want to stay in your role long term, this award of loan assistance could be worth spending a little while in a qualifying job.

3. Teacher Loan Forgiveness

Amount of time for loan forgiveness: Five years

Next up is the Teacher Loan Forgiveness program, which forgives up to a certain amount of your loans if you work for five consecutive years in a qualifying school.

Most elementary school teachers receive up to $5,000 in loan forgiveness at the end of their five years. But high school teachers who work in math, science or special education could get up to $17,500 in loan forgiveness.

Although you don’t have to spend your entire career in a low-income school or educational agency for this program, five years is still a significant amount of time. Think about your career and financial goals so you can decide whether this program is the right choice for you.

4. Public Service Loan Forgiveness (PSLF)

Amount of time for loan forgiveness: 10 years

Perhaps the best-known student loan forgiveness program, PSLF forgives your federal student loans after 120 qualifying payments, which typically span 10 years. You can get PSLF if you work in an eligible organization, such as a nonprofit or government agency.

It usually doesn’t matter what your specific job is, as long as your workplace qualifies. So while PSLF offers more flexibility in terms of what job you do, it does entail a fairly large time commitment.

If you’re already drawn to public service, spending a decade at a nonprofit probably won’t feel like a sacrifice. But if you’d prefer to move into the private sector (perhaps with a company that offers a student loan-matching benefit), you’ll have to weigh your options.

After all, you could potentially make a higher income in another job, which could be more valuable than the loan forgiveness you’d get from PSLF. Plus, finding a job that’s fulfilling and makes you happy over the long run is an important consideration, too.

Outside of making the best personal decision, it’s also worth noting that PSLF isn’t guaranteed to be around forever. It’s also notoriously difficult to qualify, so make sure your job is 100% eligible before putting all your eggs in the PSLF basket.

5. Forgiveness from income-driven repayment plans

Amount of time for loan forgiveness: 20 or 25 years

A final option is getting forgiveness from income-driven repayment plans, but you’ll have to be seriously patient. Income-driven plans, such as Income-Based Repayment and Pay As You Earn, require 20 or 25 years of student loan repayment before canceling your remaining balance.

On the plus side, your monthly payments shouldn’t be burdensome, as they’ll be adjusted in accordance with your discretionary income. But you will pay more in interest over the long run since you’ll be stretching repayment out over two decades or more.

This approach could be the right choice if you need a lower monthly payment and don’t see your income rising significantly in the future. But while income-driven repayment plans offer some light at the end of the tunnel, you won’t be seeing loan forgiveness from them very quickly.

How long would you wait for loan forgiveness?

Although loan forgiveness programs can be a huge help, most won’t cancel your student loan debt overnight, and some take a lot longer than others. So before dedicating years to a loan forgiveness program, make sure you’re not sacrificing too much in other areas.

For instance, you might not want to dedicate 10 years of your career to working in public service if PSLF is your only reason for doing so. And income-driven repayment plans might not be worth the loan forgiveness in the end if you want to get out of debt sooner and spend less on interest — in that case, you might be better off refinancing your loans instead.

Make sure to weigh the pros and cons of any loan forgiveness program before committing to it. That way, you can make smart decisions with your student loans while still staying on track toward your other professional and personal goals.

Interested in refinancing student loans? Here are the top 6 lenders of 2019!

LenderVariable APREligible Degrees Check out the testimonials and our in-depth reviews! 1 Important Disclosures for SoFi. SoFi Disclosures Student loan Refinance:

3 Important Disclosures for Laurel Road. Laurel Road Disclosures

All credit products are subject to credit approval.

4 Important Disclosures for LendKey. LendKey Disclosures

5 Important Disclosures for CommonBond. CommonBond Disclosures

Visit Earnest

2.50% – 7.12%3Undergrad & Graduate

Visit SoFi

2.81% – 8.79%4Undergrad & Graduate

Visit Lendkey

2.50% – 6.65%2Undergrad & Graduate

Visit Laurel Road

2.55% – 7.12%5Undergrad & Graduate

Visit CommonBond

3.00% – 9.74%6Undergrad & Graduate

Visit Citizens

The post What’s the Fastest Way to Get Student Loan Forgiveness? appeared first on Student Loan Hero.

from Updates About Loans https://studentloanhero.com/featured/fastest-student-loan-forgiveness/

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mikebrackett · 5 years

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Weekly Roundup: 7 Superb Stories You Missed This Week

With life’s busy schedule, it’s hard for most of us to dig through all the information thrown our way. Each week we scour the media universe to find the most interesting and helpful articles, so you don’t have to. Take a look at what we’re reading this week.

How to avoid financial infidelity with your partner

Couples fight about money all the time. But if you’re like 71% of these survey respondents, you’ve also lied to your significant other about money or a financial issue. Not only does this create distrust in a relationship, but it also probably doesn’t help the financial problem. Check out this guide to avoiding financial infidelity. (Fox Business)

11 Mother’s Day gifts for ‘mums’ obsessed with the royal family

If your mom is counting down the days until Duchess Meghan gives birth, you need to check out this list. With everything from “royal bingo” to Kate Middleton-approved essential oil, you’ll be sure to make your own queen happy with one of these presents. (PureWow)

Best online grocery delivery services

In this day and age you don’t even have to leave your house to go grocery shopping — so why would you? But before you hit up your go-to delivery service, you may want to compare with other companies. Check out this list that ranks online grocery delivery and can help you save money. (Consumer Reports)

Why do we still use QWERTY keyboards?

The most common layout for English keyboards dates back to the 19th century, but why hasn’t it been updated since then? NPR’s Planet Money investigates the economic lessons we can learn from our reliance on QWERTY. (NPR)

10 signs you’re more stressed than you think

Typically when we get stressed out, we know it. But sometimes little things could be building up in the recesses of your mind without you realizing that they’re taking a major toll on your mental wellness. Learn how to spot the signs of hidden stress and how to tackle it. (Brit + Co.)

What to expect as you’re shopping for a new or used car

If you’re looking to show up to summer with some new wheels, read this guide first. Whether you’re looking for something new or something that’s just new to you, make sure you understand the process and know what to expect. (Yahoo! Finance)

Comma mistakes you might be making

No matter which side of the Oxford comma debate you take, make sure you know how to use this piece of punctuation. Up your grammar game and send expertly styled emails with this explainer on common comma mistakes. (The Everygirl)

Interested in refinancing student loans? Here are the top 6 lenders of 2019!

LenderVariable APREligible Degrees Check out the testimonials and our in-depth reviews! 1 Important Disclosures for SoFi. SoFi Disclosures Student loan Refinance:

3 Important Disclosures for Laurel Road. Laurel Road Disclosures

All credit products are subject to credit approval.

4 Important Disclosures for LendKey. LendKey Disclosures

5 Important Disclosures for CommonBond. CommonBond Disclosures

Visit Earnest

2.50% – 7.12%3Undergrad & Graduate

Visit SoFi

2.81% – 8.79%4Undergrad & Graduate

Visit Lendkey

2.50% – 6.65%2Undergrad & Graduate

Visit Laurel Road

2.55% – 7.12%5Undergrad & Graduate

Visit CommonBond

3.00% – 9.74%6Undergrad & Graduate

Visit Citizens

The post Weekly Roundup: 7 Superb Stories You Missed This Week appeared first on Student Loan Hero.

from Updates About Loans https://studentloanhero.com/featured/weekly-roundup-42/

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mikebrackett · 5 years

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Living in a Converted Camper Van

For some, the modern American dream isn’t about having gobs of money. In an age when many folks suffer from “time famine,” which is when the individual has too much to do but not enough time, the ultimate dream seems to be about having more freedom – the freedom to spend your time the way you want, to spend your money so it’s in step with your values and to carve out a blueprint that’s in step with your best life.

That’s why bold, off-the-grid ways of being can be so appealing. Whether it’s living the Bohemian lifestyle, where you follow your artistic passions, seeing the world by way of a catamaran or a school bus seems so amazing.

Turning the Camper Van Dream into a Reality

Dustin Van Ells was one of those who longed fantasized about enjoying the freedom that a camper van provides. Van Ells’s dream slowly turned into a reality about a year ago. At the time, he was working as a field engineer for a military subcontractor and traveling quite a bit. “On average, I was home for 9 days a month while paying $2,000 for an apartment in Portland, Oregon,” says Van Ells, who’s 29 and the owner and engineer of The Van Plan. “It occurred to me that I could just build a sweet van and pocket all that rent money.”

When he was let go from his job in the summer of 2018, Van Ells took advantage of his free time in “funemployment” to finish converting the van, which included installing solar panels to the roof. It saved him from homelessness while he plotted his next step.

Camper Van Life

Van Ells has a fridge and running water on board that makes it fairly easy to eat simply. “I built my van to be able to enjoy the normal things that people have in their home, but just on the go,” says Van Ells. His converted camper van has one burner stove and an iron skillet which he uses most often. He also installed enough solar and battery storage to use an Instant Pot in his camper van.

The only housing-related expenses Van Ells now has are his car insurance and note, which accounts for a little over half of his monthly bills, and adds up to $540. His other living expenses includes gas for his van, food and sundry personal items – which adds up to about $400 a month. Van Ells, who’s a veteran, is able to takes advantage of fringe benefits that are offered to military service persons, such as permanent registration for his vehicles and free health care. “With a lot of careful and meticulous planning, I’ll be able to save up and invest more than half of my income without living off of rice and beans,” says Van Ells.

Turning It into a Business

Earlier in 2019, Van Ells was chilling on the side of the road, when a man came up to tell him how much he liked his van. He then asked if Van Ells was interested in being hired to add a solar panel system to the man’s own recreational vehicle (RV).

Fast forward to the present. By a stroke of good timing, luck or pure serendipity, Van Ells is now self-employed and fully booked for the next few months with jobs doing full van and RV conversions, solar panel installations, solving electrical issues and one-off builds. He divides his time between Los Angeles and Portland and now has a woodshop in Los Angeles.

If you’re considering a van camper conversion to experience your own taste of freedom, there are a few things to consider.

Know the Pros and Cons

Before you roll up your sleeves and convert a camper van — or hire someone like Van Ells to do the heavy lifting — you’ll want to be fully aware of the advantages and downsides of the #CamperVanLife. As Van Ells describes, the freedom to travel is one of the obvious perks. Other benefits include getting rid of your stuff and the potential to live on very little money.

Plus, you get to meet like-minded folks who see that there’s more to life than a rent payment and a 9-to-5 job, points out Van Ells. Not to mention that you own a unique converted camper van, which is bound to be a conversation starter.

Downsides include finding a place to park your van. Similar to RV living, you’ll have to do a bit of research to figure out which spots are optimal because “House people don’t want van people hanging around their neighborhood, especially if they have a nice view,” he added.

What’s more, you won’t have a bathroom on board. And while it’s convenient to have all your belongings packed in a small space, there’s also the risk of theft, vandalism or some incident that could damage your belongings. And of course, there’s the initial start-up costs and maintenance.

Tally the Costs

As you might expect, the cost depends on the type of van and the scope of the build. The total costs to build Van Ells’ Club Wagon was less than $7,000. He purchased it for $4,200, spent $1,200 on the electrical and solar panels and another $2,000 on building materials. It took a span of 3 months to do it all on his own and working at a steady pace. While it’s certainly not cheap, the resale value can be quite significant. Recently someone offered Van Ells $30,000 for his converted van.

Know the Process

While a lot of work and innovation goes into a van conversion, it starts with the van, he points out. Van Ells likes older models because they’re cheap, reliable, the parts are readily available, and they have a ton of character. He spent a month devising his plans for the build and scrapped at least a dozen different floor plans before landing on his final blueprint. “Once I came up with my master plan, it took me about 1 week to make it livable,” he said. “I parked in my friend’s driveway until it was finished, and just got to work.” Living in your own converted camper van definitely has its perks. Knowing what the lifestyle is all about, and what it requires to build, will help you gauge whether it’s a good fit for you. Are you interested in the camper van life? Let us know in the comments!

The post Living in a Converted Camper Van appeared first on ZING Blog by Quicken Loans.

from Updates About Loans https://www.quickenloans.com/blog/living-converted-camper-van

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mikebrackett · 5 years

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Weekend Reading for Financial Planners (Apr 20-21)

Enjoy the current installment of “weekend reading for financial planners” – this week’s edition kicks off with the big news that the FPA has released the second iteration of its OneFPA Network initiative, which backs off the key controversial requirement for chapters to be dissolved and “nationalized”… but still doesn’t seem to effectively answer the question of why such a big organization-changing initiative is so necessary, instead of simply focusing on the key items from a better membership database to more engaging strategic committees that FPA members and chapter leaders have been asking for in the first place. Also in the news this week was the announcement that New Jersey is now the latest to put forth a state-level fiduciary requirement out of concern that the SEC’s Regulation Best Interest isn’t stringent enough… and the proposed state fiduciary rule is being driven directly by the state’s regulators (not their legislators), which suggests a much greater likelihood that the rule will actually come to pass.

From there, we have a number of practice management articles, including a major new white paper from the CFP Board’s Center for Financial Planning to articulate a standardized career path that advisory firms can use for their next generation advisors, why managing “human capital” is becoming so much more important in the age of fee-based firms (with the recurring revenue that both supports and then necessitates a growing staff infrastructure), and a look at whether financial planning programs today are doing enough to prepare students for the realities of what it takes to be a successful financial planner (and how far they’ve already come in just a few short decades).

We also have several articles on retirement planning, from a fascinating research study on how retirees tend to be happiest when they spend their time on “active” activities rather than “passive” ones (but how as we age, reduced mobility tends to shift our time from the happiness-inducing active activities to the less-happy passive ones), tips to better maintaining friends and social relationships as clients get older in retirement, and tips to consider as retirees face four major transitions when they age (health care, financial decision-making ability, living/lifestyle, and transportation).

We wrap up with three interesting articles, all around being more “unplugged” and engaging in more “digital minimalism”: the first is a look at one financial advisor, who went to Australia for an extended work trip, found internet access was more limited, and ended out positively reshaping his digital habits in the process; the second looks at one company that pays its employees an extra bonus of up to $750 on their vacations for not checking email or Slack while they’re gone (both to encourage them to really unplug and recharge, and also because it better forces teams to learn how to delegate to and reinforce each other when someone is out); and the last is a look at how to more actively engage in “digital minimalism” itself, which isn’t just about unplugging and eliminating the smartphone and internet from your life, but instead just being more deliberate about which parts of your digital life you do want to remain engaged in (and then consciously eliminating the rest that doesn’t really matter after all).

Enjoy the “light” reading!