Saturday, June 3, 2017

Thrifty Thinking: Crushing Student Debt Could Leave the Average College Grad with No Hope of Retirement

A recent survey found that the burden of college debt is keeping millions of young people from saving for retirement.
“Forty percent of young people report that paying off college debt is preventing from planning for their future,” says Nicole Mayer, AIF, CDFA, RFC and Partner at RPG-Life Transition Specialists,  “That could devastate their plans for retirement, especially as programs like Social Security falter and as healthcare costs continue to soar.”
Mayer says that while retirement is the last thing on most college grads’ minds, young people who desire financial stability in their golden years must begin now. Here, he outlines his best tips for college grads who are trying to save money for retirement and pay off crushing student debt at the same time:
  • Saving money isn’t just about squirreling money away in the bank. Make sure you to keep your money in a tax-free account such as a 529, so that you can pay college debt with as many tax-free dollars as possible.”
  • Consider if your are going to get a return of investment on your education.  For example, if you are choosing a profession that is only going to start paying you $35 to $40k per year when you graduate --- going to a University that costs $50k plus may not be worth it.
  • If you have to get loans, make sure you know the type of loans you are getting and know what the total cost of your education is going to be with INTEREST when all is said and done.
  • Make plans to live at home when you are done with school it may not be financially possible to live on your own. You do not want to keep deferring your loans, as you want to start paying them off as soon as possible.

About RPG – Life Transition Specialists Located in Riverwoods, Illinois, RPG is a financial planning firm committed to tailoring the retirement process for each individual client and providing financial education programs for corporations.  With a 95% client retention rate over the course of 16 years, the experienced staff of financial professionals takes time to counsel each prospect and deliver a plan designed to meet each individual’s specific needs. They have been featured in esteem publications like the Wall Street Journal and Crain’s Chicago Business.  RPG – Life Transition Specialist is located at 2610 Lake Cook Road, Suite 250, inRiverwoods, Illinois.  They can be reached at (800) 596-0253.  Find them online at  Securities and advisory services offered through National Planning Corp.  (NPC), Member FINRA/SIPC.  A Registered Investment Adviser.  RPG and NPC are separate and unrelated companies.

No comments:

Post a Comment