Case study on whether parents should help pay for graduate school
53 min

Jake wants to attend dental school while Carissa has enrolled in an occupational therapy program.

See how they plan to finance their educations and why going for student loan forgiveness is a better option than Carissa’s parents paying for grad school.

In today’s episode, you'll find out:

  • How Jake and Carissa decided on their specific programs
  • How their choice of schools affects their future student debt
  • Their plan for future work post-graduation
  • Carissa’s plan for financing her degree
  • Why parents helping pay for grad school can be a bad idea
  • Why PSLF is a good gamble
  • Possible scenarios if Carissa chose to work in the private sector
  • Why trading PSLF away isn’t a good deal
  • Why Travis recommends Jake and Carissa borrow the max amount
  • The possible future of tax bombs — and why it’s political
  • The low downside risk of PSLF and tax bombs
  • Should you pay interest or investigate forgiveness while in school?
  • Why don’t we hear more about student loan forgiveness?
  • When refinancing can also be a valuable option

Full show notes at: http://studentloanplanner.com/38

The Power Of Zero Show
The Power Of Zero Show
David McKnight
My Post-Mortem on the Presidential Election
At the time of recording this podcast the results haven’t been certified but it looks like Joe Biden will be the next US president. There are a couple of different outcomes that you need to pay attention to. The first involves him not controlling the Senate. In order to win the Senate Democrats would have to win two seats in a runoff election on Jan 5 but pundits are saying that result is unlikely. If Republicans control the Senate there will be a lot of obstruction for Joe Biden’s agenda. Everything that Joe Biden campaigned on is going to be effectively neutralized and he will probably have to postpone any changes until the midterms two years from now. This means you can expect two years of relative status quo, but if the Democrats do win those Senate seats in the midterm elections or want to press his program, he will likely try to make the most of the opportunity and push through his agenda more aggressively. If you make more than $400,000 per year, you are essentially a marked man or woman. For example, if you live in California you will have to pay a 13.3% State tax, a 39.6% Federal tax, an additional 14% additional Social Security tax for every dollar over the $400,000, and finally a 3.8% for an Obamacare surcharge. This scenario results in 1970s style tax rates where you would be paying 70.7% in taxes. You will also have fewer ways to mitigate that tax and be unable to deduct 401(k) contributions on the margin as well. Joe Biden has proposed considerable changes to the way 401(k) deductions are done so we are going to start to see deductions phasing out for people in the higher income levels. Joe Biden wants to be able to tax you at high marginal tax rates and doesn’t want to give you a lot of recourse in terms of mitigating that tax. If you have significant income, your long term capital gains could become short term gains. If Joe Biden wins the Senate he will have two years to put this into law but in the process will likely upset a lot of people and potentially lose the Senate after the midterms, however this means that for the first two years you better duck and cover if you make $400,000 a year or more. If you make less than $400,000 a year, a Joe Biden presidency is relatively good news for you. Joe Biden plans on letting the tax cuts expire for the people that make $400,000 or more but for those who make less, he plans on making the tax cuts permanent. This could make contribution to your 401(k) a bit more complicated and for those above the $400,000 threshold they will probably want to consider some other options. In terms of the Power of Zero paradigm, it is largely good news if you believe that Joe Biden will make the tax cuts permanent for those who make less than $400,000 per year. We can’t afford to keep tax rates this low and have actually gone beyond the point of no return. We would have to tax 103% for every dollar made over $400,000 just to prevent the deficit from growing. This doesn’t include actually paying off the debt. Unless you believe in Modern Monetary Theory there doesn’t seem to be any other way to solve our problems other than ultimately raising taxes on the middle class. Joe Biden is kicking the can down the road and it’s going to compound our problems over time, but if you’re looking to take advantage of this opportunity before we come face to face with reality, this is a great opportunity to shift money to the tax-free bucket. If Joe Biden wins over the Senate there’s going to be a lot of shock and awe in the first two years of his administration as they push through a number of pieces of legislation that will disproportionately impact people who make more than $400,000 a year. If he doesn’t win the Senate he will bide his time until the midterms to gain the seats he needs to implement this agenda.
14 min
Retirement Answer Man
Retirement Answer Man
Roger Whitney, CFP®, CIMA®, RMA, CPWA®, AIF®
What Are the Chances We Have a Market Crash, and How Do I Protect Myself?
This is a time of year when many people give thanks for what they have. On this episode of Retirement Answer Man, I explore the definition of thankfulness and gratitude with our Rock Retirement Club retirement coach, BW. He even brings us 5 tips that can help us to cultivate gratitude on a regular basis. Tanya Nichols joins me again to help answer listener questions. You’ll learn what you can do if you are worried about a market crash, what to do if you think you are too old for long-term care insurance, and we’ll discuss Roth conversions from a 403B. Press play now to join me to hear the answers to listener questions and more. What are you thankful for? The definitions of thankfulness and gratitude are very similar. Thankfulness is the consciousness of benefit received from others. Gratitude is a thankful appreciation for what an individual receives both tangible and intangible. One way to combat worry is to create a habit of thankfulness. I have done this personally and it has changed my life. Practicing gratitude contributes to greater happiness and it allows us to focus on what we have rather than what we lack. Listen in to hear what I am grateful for this year. 5 tips to help cultivate gratitude on a regular basis Cultivating a gratitude practice can seem like a good idea but it often falls by the wayside after a few days or weeks. The beauty of practicing gratitude is that it shifts your mindset. You can use these 5 tips to help you become more thankful by creating your own practice of gratitude each day. * Write and send a thank you note to someone who has had an impact on your life each month. * Get in the habit of saying thank you to at least one person each day. * Keep a gratitude journal. You get bonus points if you try and come up with different things to be thankful for each day. * Pray. If you are religious, praying can help you cultivate gratitude. * Meditate. Instead of focusing on your inner self, try focusing on gratitude in the moment. Does sequence of return risk keep you up at night? The world around us seems so unstable right now. Many people worry that we could be at the start of the next big crash. What if we are at the beginning of several years of zero returns? Sequence of return risk is one of the biggest worries of those on the cusp of retirement. Although people worry about sequence of return risk, if you look back at history and study bear markets, youĺl see that even within those years there were good years and bad years. It’s also good to remember that your portfolio won’t directly reflect the S&P 500, we simply use it as a planning tool. How to balance market risk against inflation risk Why do we take market risk when we are worried about sequence of returns? Inflation! Inflation risk is just as big, but it creeps up slowly over time. You have to balance the risk of inflation with market risk. You can take market risk. You just have to know how much you are comfortable with. The first thing you need to do is understand the minimum effective dose of investment risk you need in order to create the life you want. Next, you’ll want to time segment your money by building your cash flow model early in retirement. Plan for statistically probable outcomes and then test for outliers. Listen in to hear the details of how you can protect yourself from both inflation risk and market risk. OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN WHAT DOES THAT MEAN? * [1:30] What is thankful? PRACTICAL PLANNING SEGMENT * [5:02] Is Chris too old for long-term care insurance? * [8:11] A 403B and Roth conversion question * [12:12] A new learning experience as a couple * [14:06] What are the chances that the market crashes? COACHES CORNER WITH BW * [22:09] Practice gratitude to improve your happiness * [26:17] 5 tips to help cultivate gratitude on a regular basis TODAY’S SMART SPRINT SEGMENT * [30:16] Give yourself and everyone around you some grace this Thanksgiving Resources Mentioned In This Episode Align Financial Rock Retirement Club Roger’s YouTube Channel - Roger That BOOK - Rock Retirement by Roger Whitney Work with Roger Roger’s Retirement Learning Center
34 min
Simply Tax
Simply Tax
Damien R. Martin, CPA
AICPA Advocacy Updates: PPP & Beyond #113
The American Institute of CPAs (AICPA) Tax Policy & Advocacy Team and volunteer members continually monitor and advocate on legislative, regulatory, and administrative tax matters—and 2020 has been an exceptionally busy year. Guest Amy Wang, AICPA tax policy and advocacy senior manager, joins host Damien Martin to share what the team has been up to and provide an update on Paycheck Protection Program (PPP) loan forgiveness. Here’s what’s covered: * Update on PPP loan forgiveness and related activity in Washington @01:16 * The latest with AICPA tax policy and advocacy efforts @06:51 * Ways the AICPA has made a difference in the guidance implementation process @17:58 * Key areas of focus going forward @21:12 * Closing thoughts @24:44 BIO FOR GUEST Amy Wang is a member of the AICPA Tax Policy & Advocacy Team, whose mission is to serve the public interest by helping AICPA members be the most trusted professional providers of tax services, while also advocating sound tax policy and effective administration. She plays a key role in the development of AICPA testimony for tax-related congressional hearings. Learn more about our guest and get additional resources here. GET MORE “SIMPLY TAX” We’re excited to also provide video content to strengthen your tax mind! Check it out on our YouTube channel. A complete archive of our episodes is available on our website and YouTube playlist. We’d love to hear from you! Email feedback and questions to SimplyTax@bkd.com. Connect with Damien on social media! LinkedIn | Twitter | Instagram | YouTube
28 min
Frequent Miler on the Air
Frequent Miler on the Air
Greg Davis-Kean
Rocking Cyber Monday | Ep74 | 11-28-20
0:27 Reader feedback: The opposite of the "joy of free" is "the pain of fees". 6:11 What crazy thing did Citi do this week? First up: ThankYou points devaluation https://frequentmiler.com/citi-devalues-thankyou-points-transfers-to-shop-your-way-lose-20-bonus/ 12:04 Next crazy thing: Amex hides away 10x earnings on Platinum card. 14:17 link: https://frequentmiler.com/yes-your-new-platinum-card-is-earning-10x-where-appropriate/ 16:59 What crazy thing triple header! What happened to Delta this week? 21:10 Mattress running the numbers: Choice promo for 2K / 5K points for 2 or 3 night stays https://frequentmiler.com/choice-hotels-promo-stay-2-nights-earn-2000-points-stay-3-nights-earn-5000-points/ 23:32 Rocking Cyber Monday: Avoid the stress, beware the hype https://frequentmiler.com/amazon-discount-with-membership-rewards-points/ https://frequentmiler.com/awesome-amex-offer-get-8-points-per-dollar-at-amazon/ https://frequentmiler.com/awesome-amex-offer-get-8-points-per-dollar-at-amazon/ https://frequentmiler.com/targeted-3x-10x-chase-spending-offers-on-a-plethora-of-cards/ https://frequentmiler.com/citi-cards-5-back-for-online-shopping-november-24-30/ 51:41 Post Roast Feeling thankful: https://frequentmiler.com/feeling-thankful-in-2020/ 57:00 Question of the Week: Can you take back a suite night award and then get a do-over on the upgrade request? Should you? Music credit: Annie Yoder Don't forget to like, subscribe, and leave a comment!
2 hr 14 min
Money! with Stacy Johnson
Money! with Stacy Johnson
MoneyTalksNews.com
How One Hour Today Could Be Worth $1,000 Next Year (Year-End Planning)
Can you really invest an hour today and find yourself $1,000 richer next year? Absolutely. Take taxes, for instance. Much of what you can do to lower your tax bill has to be done before December 31. There are exceptions: For example, you can fund an IRA up until the day you file your taxes. But when it comes to things like batching or prepaying deductible expenses and using up your flexible spending account, once the year is over, so is your opportunity to lower your tax bill. In this week's "Money" podcast ( https://www.moneytalksnews.com/podcasts/ ) , we're going to talk about a few things you should do before the year is out that can make next year less taxing, as well as other end-of-year planning tips and organizational tricks. Links: * 5 Year-End Moves to Make Now and Save Big at Tax Time ( https://www.moneytalksnews.com/30-minutes-now-can-save-you-1000-tax-time/ ) * 10 Ways Your Taxes Will Change in 2021 ( https://www.moneytalksnews.com/how-your-taxes-will-change-in-2021/ ) * 10 Smart Year-End Money Moves You Can Make During Commercial Breaks ( https://www.moneytalksnews.com/make-these-10-money-moves-before-the-year-ends/?all= ) Hosts: * MoneyTalksNews ( https://www.moneytalksnews.com/ ) * MirandaMarquit.com ( https://mirandamarquit.com/ ) Ask us a question ( https://www.moneytalksnews.com/contact/ ) ------------------------------------------------------------- Hey Money! listeners if you have a question, topic or life lesson you want to share with everyone, leave us a voice message by calling 1-833-669-8557 then press 0 to leave a message. We'd love to hear from you. Support this podcast at — https://redcircle.com/money/donations Advertising Inquiries: https://redcircle.com/brands
26 min
The Podcast by KevinMD
The Podcast by KevinMD
Kevin Pho, MD
Why physicians need personal loans designed by doctors for doctors
This episode is brought to you by Doc2Doc Lending (https://www.doc2doclending.com/), a novel lending platform created for doctors, by doctors, with the aim of facilitating fast access to personal loans at rates that make sense. "For the vast majority of us doctors, a career in medicine will also mean spending a significant portion of our adult lives carrying multiple forms of debt. Understanding student loans (the average medical school graduate in 2019 had $201,490 in student loans while the average dental school graduate had $292,159), credit card debt, home mortgages, car loans, and practice loans, becomes a worthy exercise given the potential impact – both positive and negative – these products can have on our personal and professional lives as we consume them. We’d like to propose a methodology to understand and assess loan options, using a doctor-specific perspective, to better appreciate when the pros outweigh the cons or vice versa. This methodology is based on our experience in speaking with applicants through the Doc2Doc Lending platform (the platform facilitates personal loans exclusively to physicians and dentists, and as part of the application process offers each applicant a call with a doctor-member of our Doc2Doc team to speak through the product, application process, and the applicant’s goals) and it is by no means meant to be financial advice. Through these conversations, we have observed many similar themes that arise from applicant to applicant which has formed the basis for this construct. In our experience, there are three common areas that will generally be the determining factors as to whether a loan may make sense: * the immediate and future impact on cash flow * the total cost of the money borrowed over the entire term of the loan * the degree of flexibility built into the terms of the product As doctors, debt is a real and important part of our personal and professional lives. We hope this framework may serve as a starting point for better understanding when a loan is the right decision for you." Kenton Allen and Zwade Marshall are anesthesiologists. They are cofounders, Doc2Doc Lending (https://www.doc2doclending.com/), a novel lending platform created for doctors, by doctors, with the aim of facilitating fast access to personal loans at rates that make sense. Doc2Doc Lending was founded on the belief that doctors are a unique group that are more responsible in repaying debt obligations than the general population. Doc2Doc Lending employs a proprietary underwriting algorithm that considers doctor-specific metrics to enable interest rates that are often more favorable than those found at traditional banks. Drs. Allen and Marshall are neither licensed financial nor investment advisors; they are not accountants or attorneys. Any opinions expressed above are solely their own. Learn more at www.doc2doclending.com.
30 min
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