Student Loans: The Good, The Bad, and The Ugly

Are student loans good for your financial health? They are certainly in the news a lot and often not in a good way. But loans are an important financial tool for financing a college education and can be all three: Good, Bad, and Ugly.

Good Debt and Bad Debt

First of all I want to explain my view of debt. There is good debt and there is bad debt. Good debt is any debt which you take out to pay for an asset which has a good likelihood to appreciate in value. If you live in your home for 10 years or more, then it has a pretty good chance to appreciate in value so a mortgage is good debt. Bad debt is any debt you take out to pay for assets which depreciate in value or maybe have no value at all. Credit card debt used for clothing purchases is a perfect example of bad debt. What do you think used clothing is worth? As soon as you walk out of the store and put it on, its worth pretty much nothing. Many people borrow to pay for their cars and even though sometimes you have to get an auto loan because you don’t have $30,000 lying around, it is also bad debt. Cars depreciate incredibly fast when you leave the showroom and debt used to buy them is definitely bad debt. read more

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Workplace Benefits During Job Transitions and Retirement

Leaving a job, no matter what the reason, is a time of emotional turmoil and disruption. Sometimes these transitions are planned, such as getting a better job at another employer. In some cases, the transition will be unplanned, such as having your job eliminated or moved. During these transitions it’s very important to understand what the options are for your workplace benefits. Employers make some benefits portable and employees need to know what to sign up for and what to skip. You should be talking with your financial advisor during times of transition to get the advice you need on this complex topic. read more