It is most definitely not a great time to be graduating from college with the unemployment rate high, the low starting salary, and student loans averaging around $22,000. How are all of these unemployed, underpaid, college graduates supposed to be able to afford the college loans they are stuck with after graduation.

Many college graduates are now wondering about consolidation.  Paying several different companies at different times throughout the month can make consolidation an appealing option. However, we do suggest you look into consolidation and understand the current options before you jump head first into consolidation.  Sometimes, consolidation isn’t the best option, even though it may be the easiest.  

Here is a bit about what is currently happening in the world of consolidation:

• Starting July 1, 2009 graduates that have federal college loans can possibly qualify for a new government program which can reduce monthly payments by basing it on income
• If you have a variable-rate stafford or Plus loan, don’t consolidate until after July 1 when the T-bill investment rate is finalized
• Don’t consolidate fixed-rate loans for a variable rate loan
• If you are struggling to make payments, look into Graduated Repayment and Income-Sensitive Repayment plans which begin low and grow as your career grows

So if your question is should you or should you not consolidate, it is not a simple yes or no answer.  Analyze your loans, sit them out in front of you, and calculate your rates compared to a consolidated loan rate. If this sound too complicated for you, contact Creative Financial Group.  We can help you find the best possible option for you.

If it werent’ so sad, it would be laughable! That is, the huge numbers the government keeps throwing at us – billions and trillions of dollars of debt that’s supposed to fix our economic problems. Seriously, it’s hard to wrap you mind around that kind of debt.

What we know to be true, though, for our clients is that none of us is getting a bailout or a free ride and that means we still need to be astute about financial planning, estate planning, investments and credit.

Our clients tell us that now, more than ever, they are leaning on us to guide and direct them through the rocky seas of the economy and its impact on their financial well-being. Because we consistently perform for them, they are able to ride through this storm with confidence and ease knowing that they are taken care of.

It’s that kind of relationship that makes our clients relax and enjoy the results of their hard work. Visit Creative Financial today to start the same kind of relationship with us that will help you weather the ups and downs of the economy.

Worried about retiring?

There are three major retirement potholes to avoid.

1) Do not underestimate the costs of healthcare. Many companies are dropping retired workers from their healthcare so look to buy long term care insurance early on.

2) Do not misjudge your life expectancy. With medical technology increasing daily, there is a good chance that you may live well past 90. Make sure to calculate the large possibility of a long, happy life into your retirement planning.

3) Do not presume you will work a long time. Many people believe they will have a long amount of time to plan for retirement and save money towards it, however, many unseen problems, such as disability, layoffs, or caring for a family member, may come into view that one might not have predicted.

The old way of retirement planning seems to be changing. The old method was referred to as the 3 leg stool. The three legs of retirement planning were defined benefit pension, social security benefits, and private savings. With pensions and social security benefits being reduced, we must start looking for other options for our retirement planning. Especially now that life expectancies are up and early retirements are more prevalent, we cannot be left to rely on these flimsy means of saving. Basically, more years being spent in retirement = more money needed to maintain the lifestyle we are accustom to living.

The new leg to our now four legged stool is IRAs. This leads to the question “what is an IRA?” IRA stands for Individual Retirement Account and there are two main types: a Traditional and a Roth IRA. There are many ways of deciding which kind of IRA is best for you. Creative Financial’s associates will help lead you through these options to create the retirement living you have looked forward to from the start of your career.

We’re the Creative Financial Group.  We’ve been in business since 1972 and we have unique systems and processes to help you get your financial house in order.

This blog is intended to be a resource for you to share your concerns, ask questions, comment on our content and help you create a stronger financial future.  We have over 200 people on our team who can be on your team.  It’s like having an army of financial soldiers who have your back.  Not a bad way to start the year!

Talk to you soon.  Scott Trotter – www.creativefinancialgroup.com