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Financial Planning
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The Coming College Loan Crisis: Lawmakers Face A Tough Decision On Offering Financial Aid |
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Monday, June 03, 2013 18:05
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Tags: college planning
Congress has applied a double standard in which businesses are bailed out from under their debt load while today’s graduates are left saddled with college loans likely to take the average college graduate decades to pay back. That’s the argument from an economics professor who are likely to see the borrowing rate on federally guaranteed Stafford loans double to 6.8% in July unless Congress overcomes its partisan differences and temporarily reduces the rate for a year while a longer term solution can be explored. This Website Is For Financial Professionals Only
“The rolling thunder of accumulating student debt sounds a lot like the perfect storm of mortgage liabilities that threatened major financial institutions and precipitated the Great Recession in 2007,” says Nancy Folbre, an economics professor at the University of Massachusetts, Amherst, in today’s New York Times.
“The number of student borrowers increased 54% from 2005 to 2012, while the average debt per borrower increased 56%, to $25,000,” says Folbre, citing Federal Reserve Bank of New York data.
Folbre says today’s graduates won’t be able to afford homes and cars and that will slow U.S. economic growth. “High default rates in turn, raise the cost of the loans, fueling the conservative argument that interest rates on them should be set much higher than those on loans to banks,” says Folbre. “Of course, loans to large banks are more secure in part because they are bailed out when they get into temporary trouble. My students wish that they, too, were too big to fail.”
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The Coming College Loan Crisis |
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Monday, June 03, 2013 17:54
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“The rolling thunder of accumulating student debt sounds a lot like the perfect storm of mortgage liabilities that threatened major financial institutions and precipitated the Great Recession in 2007,” says Nancy Folbre, an economics professor at the University of Massachusetts, Amherst, in today’s New York Times.
This Website Is For Financial Professionals Only
Folbre decries what she sees as a double standard legislated by Congress in which businesses are bailed out from under their debt load while today’s graduates are saddled college loans that are likely to take the average college graduate decades to pay back.
“The number of student borrowers increased 54% from 2005 to 2012, while the average debt per borrower increased 56%, to $25,000,” says Folbre, citing Federal Reserve Bank of New York data.
Folbre says today’s graduates won’t be able to afford homes and cars and that will slow U.S. economic growth.
“High default rates in turn, raise the cost of the loans, fueling the conservative argument that interest rates on them should be set much higher than those on loans to banks,” says Folbre. “Of course, loans to large banks are more secure in part because they are bailed out when they get into temporary trouble. My students wish that they, too, were too big to fail.”
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Free, Unbiased Real Estate Agent Referral Service, Using Hyper-Local Data, Connects Consumers To The Highest-Performing Agent |
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Friday, May 17, 2013 19:19
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Tags: real estate | technology Say you're selling a home and want to find the best real estate agent to represent you. You can rely on word of mouth and referrals, but why not use data to decide on who will best represent you?
This Website Is For Financial Professionals Only
Agent Ace (www.agentace.com), afree online resource, connects home buyers and sellers to the highest-performing real estate agent relative to a specific home.
"Consumers usually don't properly vet the person who will be responsible for one of the largest financial transactions in their lives," says Agent Ace founder, Mazen Fawaz. "The majority of the population, 90% in fact, find their agent based on advertisements or personal referrals from friends and family who have limited expertise in the area. Agent Ace provides an unbiased recommendation based on an agent's actual performance, giving the client the best opportunity for success with their real estate transaction."
Agent Ace uses quantitative historical data, analyzed by a patented proprietary algorithm, to recommend the best agent for a specific location, price, school district, demographics, and other local factors. Agent Ace does not publicly rank agents and only the users know who is recommended.
In addition, Agent Ace does not accept advertising from agents or allow agents to edit their profiles. "Unbiased information based on pure performance history allows consumers to trust that they're getting the very best agent for their real estate transaction," says the company.
Interestingly, Keith Krach, chairman and CEO of Docusign and Chairman of Angie's List, is on Agent Ace's board of directors. DocuSign is used by many securities brokerages and RIAs.
Will be interesting to see if such a methodology will be applied down the road to generate referrals to private wealth advisors.
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Mind Mapping Streamlines A Business Negotiation |
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Thursday, April 25, 2013 19:08
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Tags: mind maps "It was an ugly business divorce with a lot of moving parts," says Rob O'Dell, whose firm manages $135 million for 71 clients through offices in Wheaton, Ill., and Naples, Fla. "There were other siblings involved who didn't have ownership in the business, there was real estate, there were family dynamics and some complicated business finances."
This Website Is For Financial Professionals Only
Those complexities led Mr. O'Dell to a solution that changed his entire approach to financial advising. What was needed, Mr. O'Dell realized, was a way for each brother to see the situation from the other's perspective. And Mr. O'Dell had a method to literally make that happen: Mind mapping.
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New Financial Advisor Replacement App Targets Retail Investors Promising 4% A Year With No Expenses |
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Monday, April 01, 2013 18:38
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Tags: Advisor businesses | competitors | online financial advice FinancialAdvisorReplacement.com (FAR), an app named for its mission, was launched today, promising investors a 4% annualized return over the next five years with no management expenses.
This Website Is For Financial Professionals Only
The app is funded by a two Silicon Alley executives who got the idea from a Wall Street broker they met on the subway in New York.
“The New York subway system has long been recognized as a breeding ground,” says Marty Cohen, CEO and Founder of FAR. “But not for financial ideas.”
Cohen, a successful venture capital investor, and his partner, Raj Choudrysakian, CFA, have attracted investments from some of Silicon Alley’s biggest names as well as former top Wall Street executives.
FAR’s business model of providing advice for free for five years has attracted $1 billion in the last three months and assets are growing 123% monthly.
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