July 2020 Newsletter (Wedding gifts, student loans & credit scores, online money saving tips, personal quality of life story)Submitted by Dorval & Chorne on July 1st, 2020
By Keagan Kinsella | July 2020
Welcome back to this month’s newsletter, and happy Fourth of July! Here’s a preview of what we’re going to talk about today!
- It’s wedding season!: Want to hear about a unique and financially-fun gift for brides and grooms this year?
- Question of the week: Will keeping my student loans around longer improve my credit score, or will paying them off ding it?
- Saving money tip: A different kind of online shopping… Face to Face-book! Have you experienced the magic of Marketplace?
- Quality of life after quarantine: Gyms open once again! What have you been missing?
Going beyond the registry: You can give a gift that keeps on giving!
Summer is here…and while it is the most unusual summer in a while (did you ever think you’d be saying, “Where’s my mask?!” while rummaging around your car?), many brides and grooms are still walking down the aisle. With weddings comes wedding gifts! Are you looking to give something more interesting than a toaster? Do they like coffee? How about giving them a slice of ownership in Starbucks!
How do you do this? Well, I recently learned of Give-A-Share.com, which is a website where you can gift a share of stock to someone! There are 120 stocks to choose from—ranging from Disney to Hershey, and the lucky recipient gets the one share stock certificate and becomes a real shareholder entitled to annual reports, declared dividends, & any shareholder perks. I thought this was such a fun and unique idea, that could be very profitable! Also, quite easy to wrap .
Question of the week: Will keeping my student loans around longer improve my credit score (or will paying them off ding it?)
We recently met with someone come in who had been working to pay off student loans and he was down to $5,000 remaining. He was also saving up to buy a house, and paying attention to his credit score (which was already quite high). His question was- “if I pay off this student loan, will my credit get worse—therefore negatively affecting my house financing?” Credit is a complicated topic, and but here is a breakdown of the different factors that affect your credit score:
To keep it simple: The length he has been making the student loans, the amount of the loans, the other types of loans he has, and if he pays on time all affect his score! Did you know that the people with the best credit scores have both installment loans (cars, mortgages, student loans) and credit cards? It is a little counterintuitive that having more loans means you have better credit—but in this case, we are focused on cash flow. The impact on your credit score will likely be minimal, but in this case, he would be debt-free and no longer paying interest! This is more important in the grand scheme of things than a couple of points on your credit score (assuming it is decent to start with).
A different kind of online shopping: Face to Face-book!
With the world shutting down and many stores being closed for months, it was a weird sensation to have to think twice about whether or not a shop was open! Plus, with many facing lesser income or job loss, shopping in affordable, alternative ways has become a more popular concept. One of my favorites is Facebook Marketplace—I swear by it, and according to Forbes, I am just one of the 800 million+ people using it globally each month!
If you haven’t heard of it, check the lower bar of the app for the icon of a little storefront. You can search for anything! I recently have been using to not only buy, but sell. I found a road bike, in great condition for a bargain, and picked it up later in the day. When I got home, I snapped a few pictures of my old bike, typed up a description—and within an hour I already had multiple offers to come pick it up later that evening. How convenient! I also feel like it is much safer than Craigslist as well, because you can see the profile of the person you are talking to (many times we actually have mutual friends).
So, what do you have laying around your house, garage or attic that you could be making money on?
Quality of life story: Quarantine renewed my appreciation for the ordinary
Everyone has heard the adage, “You don’t know what you’ve got, till it’s gone!” which is an idea I think the COVID pandemic and the accompanying quarantine and restrictions has enforced for many! Among other things such as standing closer than 6 feet next to someone at the grocery store, or attending church in person—being able to branch out from the yoga mat in the living room and into the gym again has been something that many have missed! I could not do another burpee!
I know it was personally a good reset for me and made me excited and thankful for the privilege it is to exercise with a variety of equipment once again. Just another reminder on focusing on things that bring quality of life— I may complain about the pricey membership dues, but the quality of life it brings is worth every penny! Have you experienced a similar feeling lately as things are opening once again? Sometimes we need a break to bring forth a newfound appreciation.
All right, that’s it for this month! Stay tuned for my next newsletter where I will continue to share and inform in new and creative ways. If you want to sign up for the newsletter email, click HERE and you'll be added to the list! And let others know they can sign up! Also, let’s connect on LinkedIn!
Advisory services provided through AdvisorNet Wealth Management (AWM). Dorval & Chorne Financial Advisors and AWM are not affiliated.