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Category: Guidance

Countdown to College

 

Most parents want to give their children the best opportunity for success, and getting into the right college may help open doors. According to the latest income-per-education-level data available from the Bureau of Labor Statistics, American adults who have a bachelor’s degree had median weekly earnings of $1,173 and a jobless rate of 2.5% in 2017, compared with median earnings of $712 and unemployment of 4.6% for those with just a high school diploma.[i]

 

Unfortunately, being accepted to the college of one’s choice may not be as easy as it once was. These days, preparing for college means setting goals, staying focused, and tackling a few key milestones along the way.

 

Before High School

The road to college begins even before high school. As early as elementary and middle school foster your child’s love for learning. Encourage good study habits and get them dreaming about college. A trip to a nearby university or your alma mater may help plant the seed in their minds. When your child reaches middle school, take the time to find out which prerequisite courses may set the right track for math and science in high school.

 

The earlier you consider how you expect to pay for college costs, the better. The average student loan borrower owes $32,731 in education debt, which amounts to between 65-111% of first-year salary.[ii]

 

Freshman Year

Before the school year begins, consider meeting with your child’s guidance counselor. Discuss college goals and make sure your child is enrolled in classes that are structured to help them pursue those goals. Also, encourage your child to choose challenging classes. Many universities look for students who push themselves when it comes to learning. At the same time, keep a close eye on grades. Every year on the transcript counts. If your child is struggling in a subject, don’t wait to get a tutor. One-on-one instruction can be a huge benefit when mastering difficult material.

 

In addition to academic performance, many colleges want prospective students to be well rounded, so encourage your child to engage in extracurricular activities, such as sports, music, art, community service, and social clubs.

 

Sophomore Year

During their sophomore year, some students may have the opportunity to take a practice SAT. A practice exam is a good way to give your child a feel for what the test entails as well as any possible areas improvement they may have. If your child is enrolled in advanced placement (AP) courses, encourage good performance on AP exams. High exam scores show universities your child can succeed at a higher level of learning.

 

Sophomore year is also a good time to get some depth in extracurricular activities. Help your child identify passions and stick to them. Encourage your child to read as much as possible. Whether they read Crime and Punishment or Sports Illustrated, they will expand their vocabulary and critical thinking skills. Summer may be a good time for sophomores to get a job, do an internship, or travel to help fill their quiver of experiences.

 

Junior Year

Near the beginning of junior year, your child can take the Preliminary SAT (PSAT), also known as the National Merit Scholarship Qualifying Test (NMSQT). Even if they won’t need to take the SAT for college, taking the PSAT could open doors for scholarship money. Junior year may be the most challenging in terms of course load. It is also a critical year for showing good grades in difficult classes.

 

Top colleges look for applicants who are future leaders. Encourage your child to take a leadership role in an extracurricular activity. This doesn’t mean they have to be drum major or captain of the football team. Leading may involve helping an organization with fundraising, marketing, or community outreach.

 

In the spring of junior year, your child will want to take the SAT or ACT. An early test date may allow time for taking the test again in senior year, if necessary. No matter how many times your child takes the test, colleges will only look at the best score.

 

Senior Year

For many students, senior year is the most exciting time of high school. They will finally begin to reap the benefits of all their efforts during the previous years. Once your child has decided to which schools they wish to apply, make sure you keep on top of deadlines. Applying early can increase your student’s chance of acceptance.

 

Now is also the time to apply for scholarships. Your child’s guidance counselor can help you identify scholarships within reach. Also, find out about financial aid and be thorough. According to research by NerdWallet.com, well over $2 billion in free federal grant money is going unclaimed each year simply because students are failing to fill out the free application.[iii]

 

Finally, talk to your child about living away from home. Help make sure they know how to manage money wisely and pay bills on time. You may also want to talk about social pressures some college freshmen face for the first time when they move away from home.

 

For many people, college sets the stage for life. Making sure your children have options when it comes to choosing a university can help shape their future. Work with them today to make goals and develop habits that will help ensure their success.

 

 

Investment advisory services are offered through CapSouth Partners, Inc., dba CapSouth Wealth Management, an independent registered Investment Advisory firm. Information provided by sources deemed to be reliable.  CapSouth does not guarantee the accuracy or completeness of the information.  This material has been prepared for planning purposes only and is not intended as specific tax or legal advice.  Tax and legal laws are often complex and frequently change.  Please consult your tax or legal advisor to discuss your specific situation before making any decisions that may have tax or legal consequences.

 

This article contains external links to third party content (content hosted on sites unaffiliated with CapSouth Partners). The policies and procedures governing these third-party sites may differ from those effective on the CapSouth company website, as outlined in these Disclaimers. As such, CapSouth makes no representations whatsoever regarding any third-party content/sites that may be accessible directly or indirectly from the CapSouth website. Linking to these third-party sites in no way implies an endorsement or affiliation of any kind between CapSouth and any third party, including legal authorization to use any trademark, trade name, logo, or copyrighted materials belonging to either entity.

[i] https://www.bls.gov/careeroutlook/2018/data-on-display/education-pays.htm

[ii] https://www.valuepenguin.com/average-student-loan-debt

[iii] https://www.azcentral.com/story/money/personalfinance/2018/10/17/free-college-money-unclaimed-fafsa/38172299/

The Value of Insuring Against Life’s Risks

When you are planning for your future, what do you think about? You may think about your retirement, enjoying having the time and money to take trips and pursue your interests. Maybe you think about your home and enjoying the feeling of stability that can come with home ownership. In making these plans, people often find that their long-term view involves money, in some fashion.

 

That said, life also involves risk, and the unforeseen events that can change our plans in an instant. As an example, sudden injury or disability could leave you in a financial bind, unable to work for an extended period of time, if ever again. For this reason, among others, insurance can be an important tool in your pursuit to build and maintain your wealth and help protect it from unforeseen and destructive forces.

 

Did you know that:

  1. Sixty-eight percent of American workers have no long-term disability income protection,[i]
  2. Roughly 70 million Americans aged 18-38 have no life insurance,[ii] and
  3. About one in eight drivers is uninsured?[iii]

 

If you ask a homeowner, replacing a roof is probably the least satisfying expense he or she will ever face. While the value of such an investment is obvious, it doesn’t quite provide the satisfaction of new landscaping. Yet, when a heavy rain comes, ask that same owner if he or she would have preferred the nice flowers or a sturdy roof.

 

Insurance is a lot like that roof. It’s not a terribly gratifying expenditure, but it may offer protection against the myriad of potential financial storms that can touch down in your life.

 

The uncertainties of life are wide ranging, and many of them can threaten the financial security of you and your family. We understand most of these risks — a home destroyed by a fire and a car accident are just two common risks that could subject you to outsized financial loss.

 

Similarly, your inability to earn a living to support yourself and your family due to death or disability can wreak long-term financial havoc on those closest to you.

 

Insurance exists to help protect you from these forms of wealth destruction.

 

Some insurance (e.g., home or car) may be required. When it isn’t (e.g., life or disability), some individuals may be tempted to avoid the certain financial “loss” associated with insurance premiums and assume the risk of much larger losses that are less likely to happen.

 

But insurance premiums aren’t a financial “loss;” they are designed to help protect you and your family as you build personal wealth. Keep that in mind as you consider your coverage options and make decisions about your future; it’s possible that you are making a decision that could affect the rest of your life.

 

Investment advisory services are offered through CapSouth Partners, Inc., dba CapSouth Wealth Management, an independent registered Investment Advisory firm. Information provided by sources deemed to be reliable.  CapSouth does not guarantee the accuracy or completeness of the information.  This material has been prepared for planning purposes only and is not intended as specific tax or legal advice.  Tax and legal laws are often complex and frequently change.  Please consult your tax or legal advisor to discuss your specific situation before making any decisions that may have tax or legal consequences.

 

This article contains external links to third party content (content hosted on sites unaffiliated with CapSouth Partners). The policies and procedures governing these third-party sites may differ from those effective on the CapSouth company website, as outlined in these Disclaimers. As such, CapSouth makes no representations whatsoever regarding any third-party content/sites that may be accessible directly or indirectly from the CapSouth website. Linking to these third-party sites in no way implies an endorsement or affiliation of any kind between CapSouth and any third party, including legal authorization to use any trademark, trade name, logo, or copyrighted materials belonging to either entity.

[i] https://www.ssa.gov/news/press/factsheets/basicfact-alt.pdf

[ii] https://www.ajc.com/business/personal-finance/free-term-life-insurance-yep-thing-and-here-how-you-can-get/zzoBg0QQqRgjoBMAN1QfWM/

[iii] https://www.insurancejournal.com/news/national/2018/03/15/483414.htm

Help Reach your 2019 Financial Resolutions

The start of the new year always seems to represent new beginnings. It’s a time to remake our priorities and to reimagine our futures. Although the calendar may not recognize its significance, our humanity marks the passing of the old year with poignancy.

We awaken to the opportunities that surely await us—just over the proverbial horizon. We may suppress our yearnings, but, nonetheless, we lay our hopes on the promise that the new year will be different, more fulfilling, more exciting, more focused. We’ll achieve our goals in the new year.

Never mind the statistics about short-lived New Year’s resolve. We are beginning again. Putting the missteps and misgivings aside, we take aim. The more daring and adventuresome among us, emboldened by even greater prospects ahead, develop resolutions—or at least we aspire to do so.

So, how do you develop sound, achievable New Year’s resolutions, especially those involving your finances? And why are they so important?

Here are five tips about goals and resolutions:[I]

  1. Successful resolutions should be constructed with goals. And goals should include benchmarks or steps, each leading you closer to fulfilling your resolution.
  2. Your brain speaks the language of resolutions. Your brain instinctively performs executive functions, which draw you closer and closer to what you resolve.
  3. Goals provide focus. They give you direction and vision. You have a place to go. Goals give clarity to your resolutions.
  4. Goals provide purpose. You know what you want, you make resolutions, and goals provide the catalyst.
  5. Goals make you feel good, so say neuroscientists who study the brain’s emotional circuits.

Setting New Year’s resolutions can be easy and fun, and lead to some exciting changes in your life. Making your goals, based on your resolutions, become reality requires a few steps.[i]

  • Keep them short and easy. Create achievable resolutions. Setting Herculean goals will only set you up for failure.
  • Take it easy. Do one behavioral change at a time. Replacing unhealthy behaviors that have developed over a lifetime may take time.
  • Share your aspirations. When you discuss your resolutions with your family and friends, you create a kind of support (or accountability) group. You may have others wanting to join you in your pursuits. Going to the gym. Saving money. Investing. The more who are signed on, the more likely you (and they) are to achieve the goals.
  • Get help. You may want to adjust your resolutions along the way, making them more challenging or, on the other hand, more realistic. And if you get overwhelmed, seek advice from a trusted friend or a professional. They may give you all the encouragement you need at the time. Financial professionals can provide invaluable guidance to pursuing your goals.

Developing goals to achieve your New Year’s resolutions can be challenging. A goal, technically, differs from a resolution. Goals help you produce the desired results in your life.[i] Resolutions are designed to bring change to aspects of your life: health, diet, finance, behavior. Goals provide the stepping stones to achieving your resolution.

Resolutions are the “what.” Goals are the “how.” And your dreams are the “why.”

Here are some principles to help you to develop your goals:[ii]

Develop goals that inspire and motivate you. Think about what and why something is important to you. Your goals should have a sense of urgency to them. You simply must achieve them.

Put it in writing. Writing out your goals reinforces your commitment. Use strong command words like “will” or “shall.” Don’t use “would like to” or “might.” The weaker words convey hesitation and doubt. Goal setting is as much mental as physical.

Develop a plan. Although the idea of achieving a goal may excite, you can’t ignore the journey, your action plan. Write down the steps to achieve your goal (which brings you closer to your New Year’s resolution), and cross off the steps as you complete them.

Stay at it. Don’t give up. Goal setting involves dedication. Remind yourself regularly to keep on track. Monitor your plan and look forward to achieving each of your goals. Keep yourself motivated. One day you’ll be able to look back with pride at achieving your dream.

As you look forward to the promise of a new and better year, we encourage you to develop resolutions and to stay focused on your plan. We are available and ready to help you with pursuing your financial goals and creating your happy financial future. 800.929.1001

From all of us at CapSouth, have a happy, healthy, and fulfilling New Year!

[i] http://www.differencebetween.info/difference-between-goal-and-resolution

[ii] https://www.mindtools.com/pages/article/newHTE_90.htm

[i] https://www.apa.org/helpcenter/resolution.aspx

[i] https://www.psychologytoday.com/us/blog/smashing-the-brainblocks/201512/8-reasons-we-really-do-need-make-resolutions

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