Weekly Financial News

Welcome to another edition of FitBUX's Weekly Financial Update, your trusted source of noteworthy financial news tailored specifically for the 20 to 40-year-old demographic.

As always, we're here to provide you with the most recent and relevant information on student loan updates, developments in the real estate market including mortgage rates and home affordability, and fluctuations in the stock market.

Here's the latest financial news that you need to know to make informed decisions and optimize your financial health. Let's dive right in!

Student Loan News

The SAVE program is causing a buzz, and we need to address it NOW.

REPAYE is SAVE, as simple as that. If you were on REPAYE, you've been shifted to SAVE, no questions asked.

Noticed a slight drop in your upcoming payment? That's SAVE doing its magic with a higher poverty line deduction.

SAVE has no deadline. Apply whenever you want. But, if you switch to SAVE now, you MUST immediately update your payment with new income information. Therefore, some of you may want to wait because your payments were currently lower under the plan you had prior to COVID.

Is SAVE perfect for everyone? Absolutely not. It needs to be pitted against your other options.

If we've chatted before and we suggested REPAYE, then SAVE will be a better choice for you. If PAYE was proposed, it's high time for a follow-up consultation to check your financial plan.

For those eyeing long-term IDR forgiveness, SAVE has its fair share of advantages and disadvantages when compared to PAYE.

PAYE enrollment stops after 7/2024. So, if you want this plan for your forgiveness path, you MUST apply before then.

The big question is: SAVE or PAYE? SAVE offers a lower payment and an interest discount, but for graduate students it has a 25-year timeline for forgiveness for graduate loans. PAYE has a 20-year forgiveness timeline. That's five years less!

We're running a ton of head-to-head comparisons, discussing not just numbers, but also what YOU value most: saving the most overall or getting loan forgiveness five years earlier.

Sometimes, the math just works out - shortest timeframe and lowest total cost. Your situation matters, so it's worth hashing out in a follow-up chat with a FitBUX Financial Strategists.

Home Buying News

It's a tough time out there for home buyers.

The 30-year fixed rate has soared to a six-month high of 7.62%, and despite a slight decrease in house prices, affordability remains a significant stumbling block.

Buyers are resorting to 10/1 ARM mortgages or buying mortgage points to reduce their loan rates.

However, these alternatives come with their own set of risks.

On the brighter side, you don't have to navigate these rough waters alone.

A conversation with a FitBUX Financial Strategist can open up new perspectives and options.

They're here to help you understand the implications of different mortgage products on your financial plan and to devise strategies to mitigate the risks associated with adjustable rate mortgages.

Stock Market News

What a ride! The stock market is soaring, up a whopping 16.5% this year alone! Sure, we've had our share of turbulence, but the market is proving itself to be as resilient as ever.

This just goes to show why dollar cost averaging in retirement accounts is like the secret superpower of your financial portfolio. Remember those big drops we experienced last year? They're a distant memory now, replaced by the impressive gains we've seen this year!

Now you may be wondering, is this the calm before the storm? Well, the future is always uncertain. But what is certain, is the importance of continuing your contributions to retirement accounts. Keep sailing!

But hey, let's not forget, it's all about balancing risk and reward. Your investments should mirror your comfort with investment risk. That's where we come in.

Our shiny new investment allocation technology, coupled with a chat with our savvy FitBux financial strategists, can ensure that your investments are perfectly calibrated to your risk tolerance. So, let's celebrate this good news and also take a moment to review your investment strategy. After all, being proactive is part of the fun!

Joseph Reinke, CFA

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About the Author

Joseph Reinke is a Chartered Financial Analyst (CFA) Charter Holder and founder of FitBUX which has helped over 14,000 young professionals on their journey to financial freedom. Joseph has been personally investing since he was 12 years old.

In addition, he has experience in student loans, mortgages, wealth management, investment banking, valuation, stock trading, and option trading. He has been on 100s of podcast and has been invited to 100s of universities to discuss financial planning with their soon to be graduates.

    • 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….

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