Welcome back to another installment of FitBUX's Weekly Financial Update – your personalized bulletin for all things finance.
Our mission? To empower our community of young professionals, aged between 20 and 40, with the most compelling financial news and insights.
From the latest on student loans, real estate trends, to stock market movements, and financial planning, we have you covered.
Our expertise? Guiding our community to navigate over $2.6 billion in assets and debts.
As your authoritative finance partner, we are committed to offering clarity, instilling confidence, and reducing financial stress.
So, let's jump into this week's noteworthy updates and help you optimize your financial health.
Student Loans
On our latest episode of our podcast, we delve into the heart of financial wellness and empowerment for the modern young professional. In this special episode, our founder and leading financial expert, Joseph Reinke, takes an in-depth look at the newly announced plans announced by the Biden Administration for student debt relief.
With a fine-tooth comb, he will dissect the proposals, their potential impact, and the reality behind the numbers.
Are these plans a beacon of hope for millions, or a political move with the elections in mind? Joseph doesn't just lay out the facts; he invites you to weigh in with your thoughts on whether these proposals will see the light of day.
From discussing who benefits from the cancellation of unpaid interest to the nuances of automatic debt cancellation for certain borrowers, this episode promises clarity in the complex world of student loans and financial freedom.
But that's not all. Joseph is not just talking dollars and cents; he’s discussing the tangible and intangible aspects of financial freedom. How do these plans affect your financial wellness, and what does it mean for your journey towards financial independence?
Be sure to listen in to stay informed about all the proposed changes to student loan repayment.
Financial Planning
Tax-Day is tomorrow! Many of you often ask what a good return is and what you should do with it. Among the myriad of financial topics, the concept of a tax refund is one that often carries with it a mix of emotions and misconceptions.
A tax refund is the return of excess amounts of income tax that a taxpayer has paid to the state or federal government throughout the financial year. When you have a return, you are essentially getting back a interest free loan you lent to the IRS.
Joseph Reinke, CFA and founder of FitBUX, highlights the importance of viewing a tax refund through a critical lens. “The real question,” Reinke suggests, “isn’t about how large your refund is, but why it’s there in the first place and how you can better manage your finances throughout the year.
For those who do receive a refund, there’s an opportunity to use this to your financial advantage. Here are a few strategies:
- Debt Reduction: Applying your refund towards high-interest debt can save you money in the long run.
- Investment: Consider using your refund as an investment in your future, whether through stocks, bonds, or a retirement account.
- Emergency Fund: Boosting your emergency fund can provide a financial safety net for unexpected expenses.
On another note, the Backdoor Roth has become ever more prevalent for many of you. If you are filing separately on your taxes, or meet the Roth IRA income limits, be aware that you CANNOT directly contribute to a Roth IRA.
The Backdoor Roth allows people to funnel money into a Roth account throughout the year without making direct contributions. However, when utilizing this method, it is extremely important for you to understand the potential for pro-rata rules.
Tune in to this video where Joseph breaks down pro-rate rules, how the tax obligation works, and who is subject to pay them.
Want to Learn More About Managing Your Personal Finances?
We understand that most Americans have never had the opportunity to learn about personal finance. It's increasingly essential for households nationwide to develop their financial literacy and feel confident in their behavioral money management and financial planning strategy.
We have been working hard to find a way to offer you the opportunity to learn about personal finance in an easy-to-follow and well-rounded way. With that said, you are the first to have access to our brand-new Financial Planning course for young professionals.
The FitBUX Curriculum includes lifetime access to over 5 hours of content. Once you enroll, it's yours to keep forever. Plus, we will add content regularly to keep the course current at no extra charge.
You will learn how to develop and implement a holistic financial plan which will help you:
• Customize a student loan repayment strategy
• Prioritize financial goals
• Budget correctly
• Invest smartly
• Save for a home
• Reduce financial risk
• Discover the impact of tangible and intangible financial freedom
Want to learn more? Send us an email at info@fitbux.com or go here to get started!
How long do you think it will take for real estate to drop by 30-50%?
It depends on how long mortgage rates stay up/increase. The home affordability isn’t going to get better unless wages go up, house prices go down, or mortgage rates decrease again. Wages aren’t going to go up fast so what is more likely to happen first: rates going down or prices going down?
Also, it really depends on the location as well….
They’ve stayed resilient nationwide the last year on average. However, in my area they are down 25% from the high…
Next week we’ll be doing a massive one hour update on housing.