Each week, FitBUX provides a weekly financial news update for each of the finance topics below.
We specifically discuss topics and trends that apply to those that are between 18 and 40 years old. Be sure to bookmark this page and check back each week.
This weeks podcast episode isn’t available. However, below is the podcast we released on how far down we believe real estate prices will drop.
Student Loan News
A few big items about student loans:
- Two lawsuits were filed this week. The first is already dead in my opinion. However, the second may stand up in court. We’ll see what happens in the coming weeks.
- If you are on PSLF and you know 100% you are going for forgiveness, you may want to hold off from getting the 10k to 20k in forgiveness. Some states are taxing it so you are better off waiting until all your loans are forgiven.
- The Biden administration announced FFEL and Perkins loans will not qualify for the 10k/20k in loan forgiveness.
The following is from last week but I’m leaving it because its important to know.
Forgiveness applications for the 10k in loan forgiveness will be available starting mid/late October so keep an eye out on that.
On that front, when a loan is forgiven in this country there is a tax due. For Federal taxes, that law has been suspended until 2025. However, states also charge income taxes on loans forgiven.
If you live in one of the following states, you will most likely have to pay taxes unless your state legislature changes the law over the coming months:
- New York
- North Carolina
- South Carolina
- West Virginia
The S&P 500 had another significant drop this week.
The S&P 500 is now down 25% on the year.
I spoke to a few traders I know. They believe we have a ways to go down. Their opinion is that tech stocks have been hit hard but they believe retail/consumer discretionary stocks still have a long way to go.
As I’ve been saying, I think markets are going to keep going down. Some people I know have reduced how much they are putting towards investments and trying to time the market so they can invest more once it drops.
Research shows though that timing is extremely hard to do. Even investment professionals have an extremely hard time doing it.
Therefore, when it comes to managing your money keep dollar cost averaging into your retirement accounts. There may be some rocky roads ahead but if you try to time the market you may lose out on great opportunities.
Also, make sure the risk you are taking with your investments matches your ability to take risk. As always, your investments should always reflect your ability to take risk.
Also, FitBUX recently released our new investment technology and service to make your investing life easy. Check it out!
The big news is that mortgage rates hit 7.0% this week. Will they keep going up, who knows.
What I do is home affordability is at a 40 year low. Therefore, I strongly believe real estate will continue to drop.
Here is a podcast that deep dives into my thoughts in regards to how far prices can go:
Other Financial News
Grab onto your hats, the coming recession may be a really bad one. I just saw a new stat… Credit card debt is higher than it was in 2020!
To me that is amazing. When COVID hit and every thing shut down, people didn’t get checks so they were using credit. Therefore, total credit card debt spiked.
We now have more credit card debt than then! Think about that, the economy literally shut down and we are now in a worse situation than that….
Start tightening up now!