Listen to one of our advisors and Certified Financial Planners, Andrew Bonetti discuss the basic steps you should take in planning for your future.
Currently there is more than $1.5 trillion of outstanding student loan debt in the country. This topic is a growing concern for many of our clients and our client’s children. Here are a few keys to understanding student loans and how to effectively manage them.
As a financial planner working with clients at all stages of their financial life, you likely have clients who want to make sure their adult children take the right financial path as they start their careers.
CCR Wealth Management Partner Jonathan Albano offers three important points of guidance for financial advisors working with clients who have children who have recently graduated from college. In Post-College Financial Planning and Debt Relief Tips for Your Clients’ Children, recently published in Financial Advisor Magazine, Jonathan gives three specific tips for advising these clients, noting that:
Every parent wants to see their children make wise choices—and avoid mistakes the parent made at their age. And many people who start earning money for the first time develop bad habits with bill payment and credit cards unless shown the proper path. Sharing best practices with a client’s adult child is also a prudent relationship management best practice. The advisor can strengthen client retention efforts with the parent, lay groundwork for a new client relationship with the child and increase the chance of getting referrals from both.
For parents sending their kids to college this year, the numbers are staggering: The average out-of-state tuition for a four-year public institution is nearly $25,000, according to the College Board. After factoring in other expenses, including room, board and books, the yearly price tag is about $37,000, which over the course of four years comes to roughly $150,000. And, as we all know, it’s typically far more expensive to attend a private school.
As young people continue to amass piles of educational debt, which have the potential to haunt them for decades, student loans have emerged as a big issue during the campaign season. While there is currently no clear answer to student debt reform, it’s safe to say that making higher education more affordable is something that many voters support.