Being financially "balanced" can mean different things to different people we meet. From our perspective as financial planners, balance means maintaining quality of life today while taking the steps to secure quality of life in the future. Often this discussion involves the issue of paying down debt efficiently while still addressing other financial concerns. We recently met with someone who was working on paying down debt while trying to aggressively save for retirement at the same time. Her focus on these two items had lowered her current quality of life significantly. This post describes the approach we recommended to balance out her current financial needs with her future financial goals.
Daniel J. Dorval, CFP® | January 18, 2016
Student loan debt has exploded over the past decade leaving many college graduates in a deep hole as they begin their careers. This is particularly true in Minnesota where the average student loan debt is about $31,000, ranking us 5th in the country. Unfortunately, many of these loans are at relatively high interest rates relative to other types of loans. It is common for us to see student loan interest rates approaching 7% or more.