Activate Wealth

BIG NEWS ON FEDERAL STUDENT LOANS..... see below for some details In his first day of office, Joe Biden has decided to extend federal student loan deferment via an executive order for an additional 8 months. A few things to note:... - If you have outstanding federal student loans (this does not apply to private loans), you are not required to make a payment until after 9/30/21. - During this period, zero interest will accrue (similar to what was going on during 2020). - This has absolutely nothing to do with student loan cancellation. Think of them as 2 separate issues. - If you are on an income based repayment plan (i.e. PSLF, PAYE, REPAYE, etc.), your non payments will continue to count towards your total payment number (sweeeeet). - All of this is completely optional. You can still make payments that will directly pay down your principal balance (no interest). That's a little shaky with cancellation still a possibility, but if you can afford it, it might not be a bad idea. https://www.forbes.com//biden-pauses-student-loans-for-8/

Are your financial goals for 2021 too vague/general? "Spend Less Money" "Pay Down Debt" "Plan For Retirement"... Hear from me and a few other advisors in this article and get more granular on your 2021 financial goals From Activate Wealth... - Focus on savings goals instead of budget goals - Pay down high interest debt first and watch out for variable rate debt - Find an accountability partner https://www.inquirer.com//millennial-money-3-vague-financi

What should you consider when buying your first home? Home ownership can be an excellent first step towards wealth creation for you and your family. Before diving into such a large commitment, you'll want to do your homework. Check out our recent article contribution ("A First Time Home Buyers Guide") to InvestorsObserver to learn about:... 1. Good and bad reasons to buy a home 2. The exact and hidden costs of home ownership https://www.investorsobserver.com//a-first-time-home-buyer

As some of you may know, President Trump's recent executive order extends the deferment of federal student loan payments through the end of 2020 (under the CARES Act, the deferment was scheduled to end on 9/30). During this period, you are not required to make your monthly loan payments and these loans have a temporary interest rate of 0%. There is one MAJOR difference.......... If you are paying for student loans under an income based repayment plan (i.e. PSLF, PAYE, REPAYE,... etc.), the non payments from October through December will NOT count towards your total payments under your plan. For example, lets say you have to make a total of 120 payments under PSLF to have your loans forgiven. If you do not make a payment from October to December, those months will NOT count towards the 120 total. Under the CARES Act, your non payments DID count towards the total. Tip: If you can afford to do so, start making your federal loan payments (particularly under an income based repayment plan) after 9/30 and benefit from a 0% interest rate. https://www.forbes.com//trumps-executive-order-hurts-tho/

What is a 529 plan and should you use one to fund college expenses? That question can get quite complex. Check out our contribution to Investors Observer on this topic and learn: 1. The basics of a 529 plan... 2. Some of the pros and cons of using one 3. Questions you should be asking yourself before funding these accounts https://www.investorsobserver.com//pers/what-is-a-529-plan

Do yourself a favor...... stop paying so much in taxes Check out our most recent blog, Financial Planning Pillar 2: Avoid Unnecessary Tax Burdens Learn how to:... - Reduce income taxes - Reduce taxes from investments - Diversify your tax profile https://www.activatewealthllc.com//financial-planning-pil/

THIS FRIDAY! 5pm-6pm EDT! I will be co-hosting a FREE Zoom webinar with Professional Coach Ralph Andracchio, CEG We’ll be talking about how the quarantine has affected spending and saving habits, planning for your financial future, available gov't programs, and what you can do about it all! .......... Register online at this link:... https://us02web.zoom.us//tZMtceqgrTsjGdbGIuJkz9o0saJT2dltm See you Friday!

What is the number 1 tool for long term wealth accumulation? CASH FLOW You need to create a spread between your income and expenses. This spread will enable you to accelerate the wealth building process ... Your household cash flow is the oxygen to your financial well being Check out our most recent blog post Financial Planning Pillar 1: Cash Flow is Oxygen https://www.activatewealthllc.com//financial-planning-pil/