Month: May 2022

Do you have a college student who just graduated? Congratulations! Now it’s time to study up on the best way to pay off those student loans. Federal student loans come with benefits such as flexible payments, forgiveness and forbearance or deferment so they should be evaluated separately from other types of loans. Should you focus on paying off high-interest loans first or paying as little as possible? What about using a loan consolidator to refinance the debt? While not addressed in the following article, please keep in mind that student loan repayment, interest, and collections are paused through August 31, 2022 as part of Covid relief and rumors are swirling that the Biden administration is planning to cancel $10,000 in student debt per borrower.

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Inflation is higher than it's been in decades, which is creating an interesting opportunity to invest in US I Bonds. I Bonds are a special type of US Savings Bond that earn interest based on combining a fixed rate and a variable inflation rate that gets announced every 6 months. Historically low yielding, I Bonds are currently paying 9.62% annual interest through October. This is a fantastic rate for a low risk bond! Depending on your situation, I bonds may be a good place to park cash or become part of your bond portfolio. Before rushing out to buy them, know that there is a $10,000 per person annual purchase limit, you can’t touch the money for at least 12 months, and there’s a penalty for selling within five years. Additionally, you can only buy them in electronic form through an account with the US Treasury, known as TreasuryDirect. Keep reading for more information.

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