According to some measures, total student debt in the United States surpassed $1 trillion last spring and is now more than Americans owe on credit cards or auto loans.1

In 2010, about 56% of students who received a bachelor’s degree from a public college or university had an average debt of $22,000. Not surprisingly, debt was even more substantial for graduates of private not-for-profit schools, where 65% of students completed their studies with an average debt of $28,100. Borrowing rates were even higher at for-profit private schools.2
Research indicates that college graduates earn more over their lifetimes, have a lower rate of unemployment, and are generally happier and healthier than those with less education.3 Yet in today’s increasingly competitive economy, these benefits can come with a steep price, especially for recent graduates. From 2000 through 2010, average earnings for workers aged 25 to 34 with only a bachelor’s degree have dropped 15% while student loan debt of all new graduates rose 24%.4
It might be helpful to think of college as an investment, similar to buying a home. Before committing to a home purchase, you would probably analyze the total mortgage amount and the monthly payments and then decide whether owning that particular home was worth the long-term financial commitment.
The same logic could apply to college loans. You and your student may want to weigh the debt necessary to fund a specific educational path against a realistic assessment of the earning potential after graduation. There may be lower-cost options to achieve a similar educational goal. Or you might consider a degree path that is more likely to yield higher earnings in the future.
Of course, increasing your college savings could provide more options for your student and help him or her graduate with lower debt. In the class of 2009, 37% of students graduated with no debt at all (see chart). That’s a good way to start a career.
1) USA Today, April 25, 2012
2) The College Board, 2011
3) The College Board, 2010
4) The Wall Street Journal, April 27, 2012
The information in this article is not intended as tax or legal advice, and it may not be relied on for the purpose of avoiding any federal tax penalties. You are encouraged to seek tax or legal advice from an independent professional advisor. The content is derived from sources believed to be accurate. Neither the information presented nor any opinion expressed constitutes a solicitation for the purchase or sale of any security. This material was written and prepared by Emerald. Copyright © 2012 Emerald Connect, Inc.

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Despite the pick-up in volatility at the end of January, risk assets continued their upward ascent throughout the month. Expectations surrounding the implementation of the newly passed tax reform bill and the weakening US dollar served as positive catalysts for the month. Macroeconomic data was mixed; fourth quarter real GDP growth came in slightly below expectations but manufacturing activity accelerated and the US jobs report was positive. Although we have seen initial signs of rising inflation, levels remain subdued as low unemployment has yet to translate into meaningful wage growth.

With 39 percent of Americans feeling ill-prepared for retirement, according to the Employee Benefit Research Institute’s 2017 Retirement Confidence Survey, we are often challenged to come up with a solution to make saving easier.[1] Unfortunately, there are no easy solutions, and in the absence of unplanned windfalls, there are no shortcuts. There are, however, strategies that will help you overcome behavioral impediments by infusing discipline into your retirement savings plan.

In a widely anticipated move, the Fed increased interest rates by 25 basis points on March 15, 2017, the second interest rate hike in three months and there are talks of potentially two more raises this year. Positive economic data and a rise in business confidence served as a catalyst for the Fed to continue its interest rate normalization efforts with the possibility of as many as two additional rate increases later this year.

Global events, such as the intensely divided presidential election that we just lived through, are certain to generate some periods of market volatility of varying lengths in addition to a significant amount of stress. However, we urge financial advisors and investors to retain a few dos and don’ts to help manage post-election anxiety:

Don’t equate risk with volatility. Volatility does not equal risk. Risk is the likelihood that you will not have the money to live the life you want to live.

Maximizing tax credits offered by the IRS and various states around the US is key to maximizing your financial position. There are many types of tax credits available for both individuals and businesses. One of the better ones is for angel investors in the State of SC who invest in a qualified business. Investors can attain up to 35% as a tax credit.

There is no silver bullet when it comes to investing or wealth management in general… if there was, we would all be sitting on yachts and most likely not reading this article. However, there needs to be some clarity and calm on the very complex 'Brexit' subject for our US based clientele. 

We experienced first hand the creation of Exchange Rate Mechanism (ERM), Britain's exit from the ERM, the intro of the Euro, and now the exit from the EU (aka "Brexit").

After an extremely volatile quarter, the broad equity market indexes ended just about where they started. Risk assets began the year under heavy pressure, with the S&P 500 Index declining more than -10% to a 22-month low on February 11. Concerns over the global growth outlook and the impact of further weakness in crude oil prices weighed on investors, and investor sentiment hit levels of extreme pessimism.
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If you are looking for more information on any subject in this Blog, please Contact Us directly electronically or via phone
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