Sam Bohmiller - The Bulfinch Group

08/24/2022

💥 Big time news for Federal student loan borrowers 💥

Here are the highlights:

- $10k debt cancellation for individuals earning less than $125k and for couples earning less than $250k

- COVID payment freeze extended for “final time” through 12/31

- New income-driven repayment plan that caps monthly payments at 5% of discretionary income, down from 10%

New one-time student loan cancellation to be granted based on income; and student loan payment pause extended through Dec. 31, 2022

04/05/2022

The freeze on Federal student loan payments was just extended AGAIN - this time through the end of August.

Officials are eying an extension through the end of August.

07/15/2021

As of now, the student loan payment & interest freeze is set to expire at the end of September. The time to get organized and make plans for payments resuming is NOW.

Here is the first question you want to be asking:

“Does my strategy require me to pay this debt to $0, or do I have a plan that offers either long-term forgiveness on an IDR plan or via PSLF?”

While we are still months away from the payment freeze being lifted, advisors can look ahead to help their clients strategize for the resumption of payments.

06/15/2021

Cash sitting on the sidelines? Want to invest but struggling to decide how and when to get going?

This guide unpacks key considerations/questions to ask when moving from cash to investments.

TLDR: The best time to invest was yesterday - time IN the market is more important than timING the market.

This is a story many of you will be familiar with. You have money to invest that’s been sitting in cash, either from the sale of a business, a recent inheritance, or built-up savings. This is money you don’t expect to need or access for more than 20 years, if ever. You know that cash […]

11/16/2020

There is a financial lesson or two in here somewhere...

- Consistently making good plays over and over and over will yield a more powerful and predictable result than making one or two great plays that can't be repeated

- "Focus on what you want to do" / control what you can control vs. spectating and emulating others

- Bryson can be +10 or -10 in any given round. While it's worked for him on the golf course, we're not wired to accept such a wide range of potential outcomes with our finances. People want certainty, stability, predictability. The same characteristics Langer had on display this weekend.

golfweek.usatoday.com

10/19/2020

About 25% of employers, including some big-name companies, have considered suspending or reducing their retirement savings match.

With open enrollment right around the corner, it wouldn't be a surprise to see cuts in other areas as well - insurances, fringe benefits, discounts, etc.

Benefits packages can be worth tens of thousands of dollars. Don't just "check the box" before consulting with your team of advisors to make sure your elections are properly coordinated with the rest of your planning.

hbr.org

09/30/2020

It took 3+ years, but I've learned to appreciate personal finance is much more than math.

If someone wants to hold 3, 6, 12 months more cash than "experts" suggest because it makes them feel more secure and helps them sleep at night, who am I to say, "No, you shouldn't do that."

If someone wants to overpay their mortgage or student loans so they can be debt-free sooner, it may not make the most sense mathematically, but there may be an emotional benefit that's worth more than the difference in numbers.

Sometimes, the math prevails but it doesn't mean we should discredit or disregard the emotional impact of financial decision-making.

09/22/2020

When the risk of loss is too high, best practice is to transfer that risk to an insurance company.

This is true whether you're insuring a $25,000 car, a $500,000 home, or millions of dollars in future earnings.

Apparently, the Chiefs felt $140M in guaranteed money with the potential to grow to $503M over the next ten years was too much to leave to chance.

www.espn.com

09/15/2020

"Good investing isn't necessarily about earning the highest returns, because the highest returns tend to be one-off hits that can't be repeated.

It's about earning pretty good returns that you can stick with and which can be repeated for the longest period of time."

- Morgan Housel, The Psychology of Money

09/10/2020

New Voya research finds that 71% of employees plan to spend more time reviewing their voluntary benefits as a result of COVID-19 than they did during the last enrollment period. And more than half (53%) plan to make changes to their benefits offered through their employer.

Don't feel like you have to go at it alone. Don't just choose what your friend or co-worker chooses. Talk to HR, talk to your spouse, and talk to a financial professional so that your elections are in line with the rest of your personal planning.

www.kiplinger.com

08/25/2020

If I had a nickel for every time the rent vs. buy question came up, I'd have enough money to rent AND buy...

"People get so focused on which one is financially better that they're missing the big issue. The right question to be asking yourself is, How much are you spending and saving in each scenario?"

www.kiplinger.com

08/17/2020

** For those with Federal student loans **

The temporary forbearance period, originally set to expire on September 30th, has been extended through December 31st. This means the interest rates on all Federally held loans will remain at 0% and payments aren't required.

While you can choose to continue paying, this 0% interest and penalty-free forbearance period may provide a unique opportunity to build up cash savings and/or pay off other higher-interest debt.

President Trump issued a new order Aug. 8 to extend forbearance for federal student loans through the end of the year. The reason for relief: COVID-19, of course.