Guided Wealth Management
Investment Advisor Representative
Since 2009, Jonathan Swanburg has been an Investment Advisor Representative at Tri-Star Advisors. Today he runs the firm's Guided Wealth Management service, offering financial planning and investment advice to working age professionals. He has an extensive fixed income background having started his career analyzing mortgage backed securities, municipal bonds, and structured notes. Jonathan's financial commentary has been featured in publications including Time Magazine, The Financial Times, The Wall Street Journal, and Financial Planning Magazine.
Jonathan attended college at Pepperdine University where he graduated with a Bachelor of Arts degree in Economics. During that time he was a macroeconomic teaching assistant, the President of Phi Alpha Delta, and a caddy at Riviera Country Club. From there, he went on to receive his Juris Doctorate and Master of Business Administration from Baylor University where he concentrated in Business Transactions and was recognized as the outstanding MBA graduate, top presenter at the Big XII case competition, and two-time winner of the Baylor MBA ethics case competition. Jonathan earned the Certified Financial Planner© designation in 2013 and is an active member of the State Bar of Texas.
Outside of work, Jonathan volunteers with the Houston Young Lawyers Association and enjoys playing golf, tennis, fishing, writing and spending time with his wife and two sons.
BA, Economics, Pepperdine University
JD / MBA, Baylor University
Assets Under Management:
Jonathan Swanburg is a Registered Representative offering securities through Calton & Associates, Inc. Member FINRA/SIPC and an Investment Advisor Representative offering advisory services through Tri-Star Advisors, an SEC registered investment adviser. Calton & Associates, Inc and Tri-Star Advisors are separate entities.
Jonathan Swanburg, Advisor Insights Interview
This sounds like a terrible situation and if these were federal loans, the answer would be yes. In the case of your private Sallie Mae loans, however, the answer is unfortunately no. Here is an Investopedia post from November on this exact topic: "Can Sallie Mae loans be forgiven?"
I really wish I had better news. Sallie Mae may work with you, but there is no official program in place to forgive private student loans.
When a revolving line of credit is changed to a non-revolving line of credit, it means that your borrowing limit no longer returns to the initial level when you pay down the debt. In other words, if you started with $10,000 and you get the balance down to $5,000, the bank will no longer automatically loan you an additional $5,000 should you need it. If you just continued to pay the interest, the balance would be never go down.
Also, the numbers you used don’t completely add up. $175 / month of interest is an interest rate of 21% on $10,000. However, if you paid $220 / month on the balance at an interest rate of 18.50%, it would take 6 years and 7 months to pay down the loan. Over that time, you would have paid $7,349 of interest. If the interest rate is actually 21%, it would take 7 years and 8 months to pay down the debt and you will have paid $10,125 in interest. Here is a calculator from Bankrate if you want to play with the numbers.
In any case, it is definitely worth seeing if you can refinance the loan at a lower rate. Good luck.
You can do it. It will just take some budgeting and persistence. First, even if you can put $3 / day into an investment account for the next 25 years, you could save more than $60,000 by earning annual returns of 6%. Opening a Roth IRA could be a great idea. Also, since you will be putting in small amounts on a regular basis, it will be important that you create an investment account with no transaction fees or maintenance costs. Going directly with a company like Vanguard or a robo advisor like Betterment may be something to consider.
Second, if you can work until 70, your family’s Social Security benefits should meet or exceed your current income. Between Social Security and your savings, you should be able to have steady income and peace of mind in retirement.
Finally, the longer you can work and the more money you can save, the better off you will be.
These are really good questions to ask. The answer comes down to what you plan on doing with the money. If this is spending money, you are better off keeping it in the bank since stocks (and stock index funds) are going to be volatile and the value may not be higher when you need to sell. If this is long term money and your goal is to start growing your nest egg, then by all means open a Roth IRA and deposit your earnings up to $5500.
I can’t emphasize enough what a good idea it is to start saving early. If you put away $5,500 / year in a Roth IRA for 12 years and you earn 7% returns, you will have $98,386 by the time you are 30. At that point, even if you stopped contributing entirely, and kept the money invested earning 7%, you would end up with a tax-free $1,050,431 by the time you are 65.
On the other hand, if you waited until age 30 to start investing and committed $5500 / year annually for 35 years, assuming the same 7% return, at age 65 you would only have $760,302.
As for individual stocks v. funds, for long term allocations (especially when you are just getting started) the best option is going to be a low cost stock index fund.
Good luck and enjoy the summer.
PACE loans are attached to the property rather than an individual and repayments are secured by assessments in the property tax bill. If you sell the property, the new owner remains on the hook for the remaining costs of the energy upgrades. If you don’t pay the property tax bill, the government can foreclose on the property.