Taylor is the CEO and founder of Kovar Capital Management LLC. After starting his finance career with a major Wall Street firm, Taylor decided to branch off and start Kovar Capital in order to provide his clients with a more personal wealth management experience. He has been quoted and published in a variety of different media on topics ranging from healthcare to youth ministry to technology to, of course, personal financial management. Before founding Kovar Capital, he was a key member of the team that helped launch and implement one of the fastest growing healthcare technologies in the United States, HealthTrust Software.
Kovar Capital is a luxury boutique wealth management firm nestled in the heart of beautiful downtown Lufkin. As fee-based, fiduciary professionals, Taylor and his team most often serve in the role of financial life managers for successful business owners, healthcare specialists, c-suite executives, and other public figures such as politicians and professional athletes. In this capacity, Taylor's team monitors, manages, and implements strategic plans for their client’s vast array of assets, regardless of their type or location. With a strong focus on providing truly holistic advice, taylor is committed to serving families and businesses with an exclusive wealth management experience.
His passion in life is to be the example of what a Godly husband, father, and businessman represents. He lives his life and treats others the way that he wants to be treated and it is this lifestyle that has made him a trusted advisor to individuals and businesses across the globe.
Taylor is married to his high school sweetheart, Megan, and they live in Lufkin with their two young children.
BBA, Finance, Stephen F Austin State University
Assets Under Management:
The common sense disclaimer: This is a public website and questions are asked in an informal setting so all users should take into account that I do not know all of the details of your situation and as such cannot be held liable for your actions/outcomes/etc based upon my ideas.
Yikes. Sorry to hear these miserable student loans got their hooks in you. You don’t need me to explain why your situation isn’t ideal, so let’s just look at the options.
Many people would pretend this loan never happened and spend the rest of their lives running from collectors. I don’t advise you take this route, as the repercussions will haunt you forever. You don’t want to deal with wage garnishment and constant collections calls, not to mention atrocious credit and having to explain your situation to employers and landlords.
The other option is to work 20 hours a day, live off ramen, and try to speed up the payment process. To me, that sounds impossible, and it certainly won’t be enjoyable. If that’s the type of work ethic you have, give it a try; I think life is too short to let these loans dictate every minute of your day.
The last option is to take this one step and one payment at a time. Keep paying the minimum and fight as hard as you can to stay on the hardship program. For the time being, you just have to think of the payment the same way you do a monthly gas bill; don't measure it against the total balance. Just keep working hard, do what you can to increase your earning potential, and stay away from borrowing more if you can help it. You might not be able to get rid of the debt anytime soon, but that’s just the reality of your situation.
If you can earn enough to cover all your bills, pay the minimum loan amount and still put some money in an IRA or a Betterment account, go for out. It’s going to be hard to invest substantially, so you need to put your money somewhere with limited fees, and you need to remember not to compare your investment to your debt, as that will be very discouraging.
You’re in a bind. There are no two ways about it. However, this is the beginning of your miraculous comeback story. When you get to the other side of this, it won’t be because you bought a winning lottery ticket - it’ll be because you worked hard, managed your money wisely, took advantage of every opportunity to up your earnings, and chipped away until you beat the debt.
That’s a hefty car payment, so it’s a good idea to get that out of the way and free yourself up to invest more. Don’t go crazy and pay it all off tomorrow, but the money you’re saving is getting undermined if you have interest building on a $25,000 loan.
You mention $600 going toward debt - does that refer to the car loan, or do you have another balance you’re paying off? If there are no other credit cards or student loans with worse rates, pay the car off aggressively. If you care about your finances above all, you might want to consider trading the vehicle in for something cheaper. If that’s not in the cards, push most of that $1,100 toward the car. The faster you’re done with those payments, the more you’ll be able to grow your overall wealth.
It sounds like you’re earning good money and have your sights set on the future. Get that debt out of the way and then get to work building your retirement and investment accounts.
Until you’re back at work, you don’t want to become overleveraged. You should pay off the credit card debt immediately, because that will reduce your monthly payments. After that, spend as little as possible while you look for your next job.
Have you been receiving unemployment since getting laid off? If you have money coming in that covers most of your bills, you should be safe to invest around $5,000. Once you’re working again, I’d invest another $10,000 or so (your total investment should be between $15,000 and $25,000, assuming you get back to work sooner than later). Consider putting that money in either a municipal bond, a quality, dividend-paying stock, or some other fund that won't come with too many fees or penalties.
You should also look at how this money can assist you professionally. Is there a course that will help you earn a higher paying position with another company? Can you purchase software that will enable you to work freelance and get back to work right away? Marketing is an excellent and competitive field, and this could be a good opportunity to get ahead. There’s a fine line to walk with a windfall like this; you don’t want to spend money while you’re not generating income, but investing in yourself is usually the best way to increase your future earning potential.
While you think about your next move, try to keep about $45,000 in the bank. Pay off your credit card, invest a small amount if you’re receiving unemployment, and see how quickly you can get back to work.
Before deciding what to do, think a little on your and your mother’s immediate plans. With your current living situation, can you expect to continue without the burden of rent or utilities for an extended period? With your annual earnings and the amount of student debt you have (which I assume has a relatively low interest rate), buying the house seems like a good option, but that’s on the condition that you won’t be forced to start paying rent anytime soon.
As for your mother, is she retired, planning to retire soon, or thinking about moving as she enters her later years? Does she still live in this house or is it just an asset she owns? Whether or not you assume her mortgage should hinge on these factors, as it won’t be fun to deal with an unexpected change in plans.
I’m sure you can get a better interest rate if you refinance, and with your mother this far along in her 30-year mortgage, you should be able to get a 15-year policy with solid terms. As long as you don’t foresee any drastic changes in your living situation, this seems like a good opportunity to invest in a property you’ll be able to own outright in a relatively short amount of time. That will help your mom and provide you with a good investment down the road.
Whatever you choose, shoot for a lower interest rate. If you have the flexibility to pick, I think buying the house from her and getting a new mortgage is your best option.
I’m going to assume, if you’re buying a house at 19 and have a 401(k), you have steady income and earn a decent salary. If that’s the case, the loan is probably the best choice. Both options can work, and while I usually don’t encourage people to borrow for a down payment, I think you should avoid getting into the habit of borrowing against your retirement. That’s money you only want to see grow as you get older, and starting at 19 you’re in an excellent position to have plenty of savings down the road. As long as you won’t have trouble making monthly payments and you can get a good rate, take out a loan and leave your 401(k) out of the equation. However, you need to be sure you won’t have any issue reimbursing the lender while also dealing with the other expenses that come with homeownership. Buying a house can be a great move, but not if you ruin your credit and hamstring your cash flow in the process.