Ep. 436: HELP! My Employer Doesn’t Have A Good 401(k) Plan

We want to answer your questions about money. Email us and you may hear yours on the air: askpete@petetheplanner.com

This week on the Pete the Planner Show, Pete pushed his limits tooooo far with a giant 2PM cold brew coffee. 🥴  …Bad idea.

No time to listen?  Here’s a preview of what happened and when:

Show Notes:

WHY WASHINGTON WON’T FIX STUDENT DEBT PLANS THAT OVERLOAD FAMILIES: [4:13]

  • (Discussing an article of the same name in the Wall Street Journal): If you step back from time to time and look at horrendous issues that plague us here, you could ask: Do they really even want to fix that?
    • PETE: Number one reason why Congress isn’t doing anything to prevent the debt yet to come:
    • DAMIAN: Changes are a hard sell. Preventing student loan debt is a unique problem. Those who see the need to changes to be made are typically those saddled with the debt. Those who don’t (yet) think they need the debt to get to and through school.
    • Reason 2: The PLUS Loans have historically been a money-maker for the government.
    • Reason 3: Universities would likely fight any changes proposed that negatively impact their budgets.
    • Reason 4: Borrowers aren’t often who Congress expected.
    • Reason 5: Congress doesn’t think it’s important enough.

 

WHAT TO DO WITH AN INHERITANCE: [26:18]

  • “Hello Pete and Damian! I’m a 57-year old African-American divorcée with 2 adult daughters – ages 21 and 19 – both in college. My oldest secured a job with a major company in her field of study in her favorite place: California. She’s coming out of college debt-free. My youngest is in private school in Washington D.C., but she will also come out debt-free. I always try to impart the wisdom you two share on this show. They both have inherited $35,000 from their grandparents’ estate. They cannot have the money until they are 35 years old. What is the best investment strategy to grow this for them? I would like them to use this money as the cornerstone of their retirement nest egg. I’m looking at a 30-40 year investment horizon and I’m fairly risk tolerant because of that.
    • PETE: What a great mom! They can’t access the inheritance until they’re 35 years old, so she is in control of it now?
    • DAMIAN: If she’s a trustee, she might be able to. Irrespective of that, she can use this experience as a tremendous learning experience. Get them involved with a financial professional to see how it can play out in the future. If used correctly, it could impact generations.
    • PETE: It’s time to bring out The Rule of 72. Help them visualize how many times their investments could double in their lifetimes. (about every nine years for them) …Do the math. 🧐

 

Looking for the headline article? It’s segment number three. So yeah, don’t let these previews stop you from enjoying the whole thing.

 

Play the rest of the show for more!  —  click PLAY below.

 

SIDE NOTE:

— Before you go, give your personal finances a facelift. Peep our personal guidance platform: Hey Money.

 

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