With College Funding coming in at # 2, just behind retirement planning, as the most important Financial Planning topic … we watch the various statistics, public commentary and rules for trends, advanced planning techniques and rule changes that may be positive or negative in the coming years.
The History of Student Loans
The Federal Government began guaranteeing student loans in 1965. Here is our best found article on the complete history.
As a hot topic for any presidential administration, various laws have been passed since 1965, in most cases enhancing the ability for students/parents to obtain loans. Unfortunately, tuition costs have risen at a dramatic rate as well … a possible topic for another time.
Total Student Loan Statistics
The following chart from our friends at the St Louis Fed (FRED) shows the much spoken about total bulging student debt … often times called a crisis… yes, it is a large number and growing, but before you take a stance, we have more for you…
In our minds, student debt is one of the most acceptable debts from a Financial Planning perspective … yes we would prefer NOT to have any, and planning in advance helps this fact, but there are always situations where it is just not possible. Loans for higher education gives many the best opportunity for longevity of happiness in a career they may not otherwise had access…
Parents we would argue not sacrifice retirement for college funding, but we know there are many strong feelings on this topic…
Total Student Debt
Total Burden Per Person By State
This chart from our friends at HowMuch.com started the wheels turning for this article…. and is a per person debt load in each of the 50 states.
An Interesting and Important Statistical Chart
Student Debt is large, and clearly growing, however, much to our surprise, the growth rate of student debt has slowed dramatically in recent years….
This chart is the percentage change year over year in student loans, note the super high mid teens growth during the great recession … not a surprise given the lack of job opportunities at the time.
Happily the growth rate has steadily declined post great recession.
Have a Great “Student Debt Update” Day!
John A. Kvale CFA, CFP
May 2019 Podcast Video, Financial Planning and Capital Market Update – By John Kvale
Hello and Welcome to our May 2019 Financial Planning and Capital Market Update!
If you are too busy to read, feel free to listen as we describe our post and thoughts in friendly podcast format as well as Video!
Newbies – We like to articulate our thoughts and review on a Monthly basis our Financial Planning Tips, Capital Markets and current events!
May – 2019 Video
Financial Planning Tip (s) –
Why Reading the Fine Print is Still Important
Here in this post we discussed the need to keep an eye out for tricksters as the still find their ways into our lives…. this post was created after stumbling on to an offer of 99% annul charges on what looked like a request for a donation to a charity… can’t make this up.. even took the blurry (bad photographer) picture for proof…
Sharpening the Saw – Personal Income Tax Bracket Review
In our Sharpening the Saw post here, we posted from a local conference we were attending and grabbed our favorite Tax Chart as a reminder of the new tax law changes.
This chart, which is also making an appearance in the Q 3 Newsletter is a great review/update on the new tax brackets, especially those who are retired:
Capital Market Comments –
Yield Curve Inversion is back, as we had a brief few days in March, but as of the end of May we had a much more distinct inversion with the 10 year at 2.15% and the 90 day near 2.40%-
The following chart is from our own trading system and is the 10 year yield less the 19 week yield or the equivalent 90 day yield… the black line marks the zero point – anything below the zero is inversion !
It’s inverted now for sure…. Again, LOT’s more to come!
Have a Great Day – Talk to you at the end of June!
John A. Kvale CFA, CFP
Founder of J.K. Financial, Inc.
A Dallas Texas based fee only
Financial Planning Total Wealth
Management firm.
www.jkfinancialinc.com
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Posted in Economy, Education, General Financial Planning, Interest Rates, Investing/Financial Planning, Market Comments, Monthly Review, Podcast, Retirement Planning, Video
Tagged Fine Print, Retirement Planning, Retirement Tax Bracket, Tax Bracket