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Writer's pictureNate Baim, MBA, CFP®

Diving Deeper into IDR Plans


Enjoy this week's edition of the Planner's Beta


Beta (n) - climber's jargon that designates information about a climb This digest's purpose is to share observations, ideas, and treasures found this week which you may also find insightful. Sharing does not mean it's an endorsement. I am endorsing the pursuit of knowledge and exploration.




Diving Deeper into Income-Driven Repayments Plans for Federal Student Loans


Are you bogged down with how to manage your student loans? Administrative forbearance will likely come to an end later this year; having a plan to manage your debt will be essential. Borrowers use IDRs when they have qualifying student loans and have a significant amount of debt compared to their income. In this video, I discuss:

  • The basics of IDR plans

  • How the monthly payments work under IDRs to free up your monthly cash flow

  • Which plans provide an interest subsidy, avoiding unnecessary additional interest if managed properly

  • Avoiding possibly costly mistakes related to interest capitalization

  • How each plan includes your spouse's income, and why it's essential to think through your tax filing status when managing student loan debt with an income-driven repayment plan.



This video is the fourth video of a multipart series focused on helping folks understand student loans and their options. The next video will provide details on the Public Service Loan Forgiveness (PSLF) Program.



This Month's Financial Planning Item -

Reviewing Your Property and Casualty Insurance Policies


Your property and casualty insurance policies are a vital part of your overall financial plan. It's important to review these policies each year to ensure that you have the coverage you need. If there are gaps, now is the time to implement changes to acquire proper coverage.


This month I encourage clients to review their auto, home, and personal property insurance policies. In this month's financial planning item, we focus on issues to consider when reviewing your policies, including:


Real Estate/Property Insurance

  • Did you recently buy or sell a primary residence or vacation property? It's important to review this insurance coverage, and perhaps your insurer, to ensure that the policies cover an adequate amount of the property's replacement value.

  • Have you made substantial improvements to your property, or has the property appreciated significantly in value? You need to be sure that their coverage keeps up with any increases in the property's value.

Auto Insurance

  • You should review your collision and comprehensive coverage. Depending upon the age of the vehicle and other factors, you may want to make some adjustments.

  • Are your children now of driving age? If so, you need to be sure that your children are covered as drivers and that your liability limits are adequate.

Personal Property and Umbrella Insurance

  • If you own personal property (i.e., antiques, collectibles, or coins) with a value that exceeds the ordinary policy limits, you may need to schedule these items to ensure coverage.

  • If you need additional liability coverage over and above what your homeowner's policy offers, you may need an umbrella policy.

Here is a comprehensive checklist of the types of issues you should consider when reviewing your property and casualty insurance policies. These policies play a crucial part in your overall financial planning and protect your family's assets from losses.


If you need independent advice on managing income and savings, please review the services I offer and place an introductory appointment on my calendar.


If you are a current Pursuit Planning and Investments client, securely upload any documents needing review to PreciseFP. We will discuss these items in our next scheduled check-in meeting. Or you may place an appointment on my calendar.

View this 19 point check list to help you organize your thoughts to optimize your property and casualty risk management plan.





Quote of the Week

"Hope is a good breakfast, but it is a bad supper." Francis Bacon


 

Have something on your mind? Schedule a free call with Nate.

 

Pursuit Planning and Investments, LLC is an Investment Adviser registered with the State of Oregon. All views, expressions, and opinions included in this communication are subject to change. This communication is not intended as an offer or solicitation to buy, hold or sell any financial instrument or investment advisory services. Any information provided has been obtained from sources considered reliable, but we do not guarantee the accuracy or the completeness of any description of securities, markets or developments mentioned. We may, from time to time, have a position in the securities mentioned and may execute transactions that may not be consistent with this communication's conclusions. Past results do not guarantee future results. Please contact us at 971-803-5948 if there is any change in your financial situation, needs, goals or objectives, or if you wish to initiate any restrictions on the management of the account or modify existing restrictions.  Additionally, we recommend you compare any account reports from PPI with the account statements from your Custodian.  Please notify us if you do not receive statements from your Custodian on at least a quarterly basis.  Our current disclosure brochure, Form ADV Part 2, is available for your review upon request, and on our website, www.planyourpursuit.com. This disclosure brochure, or a summary of material changes made, is also provided to our clients on an annual basis.


Investing involves risk. Past results do not guarantee future returns. This content should not be used as a primary basis for investment decisions and is not intended to serve as impartial investment or fiduciary advice. The performance of an index is not representative of any particular investment, as you cannot invest directly in an index.


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