Chicago, IL (PRWEB) August 31, 2013
JonasInsuranceAdvisors.com tackled the issues of student debt, the need to plan for the future through the purchase of insurance (such as burial insurance), retirement planning, and debt elimination following CNBC’s August 26th article, called “Parents Face the Student Loan Double Whammy”. The article deals with the reality of student loan debt carrying over well into midlife and even beyond, creating financial troubles for grandparents, parents, and children alike.
Eamon Javers’ above-mentioned article begins with an example of a 51 years old woman still struggling to pay off her student loans. She has three children, all in college, who are compounding the families’ debt by entering into student loans to pay for their college tuition. The woman’s plight is not an unfamiliar one; countless American families struggle under the weight of generational student debt—debt that has increasingly begun to transcend generation gaps. Like most people entering into student loans, the woman in Javer’s article did not intend to still be working on eliminating her loan payments at age 51, leading to a failure to properly prepare for the future, including how she will get by in retirement. According to a government study conducted in 2008, student loan debt numbers continue to rise without a cap in sight. Javer’s reports that Americans aged 50-59 owed over $100 billion in student loan debt. The average debt owed by recent college graduates exceeds $20,000 per person. Though some analysts argue that the risk of taking out a student loan is often rewarded the numbers tell a different story.
Student loan debt seems almost to be a disease plaguing the vast majority of American households. Student loan debt is accepted as a fact or necessity. Many college graduates do not enter into positions that pay enough to pay significant portions of student loan debt off. While jobs in the field of computers and technology continue to grow, jobs in other fields continue to decline, including radio disc jockeying and woodworking. As more fields rely on technology rather than human effort, the economic difficulty for those in declining positions continues to soar. In order to adequately prepare for the future, then, JonasInsuranceAdvisors.com encourages students to consider careers based more on job growth. Choosing a career with a higher job growth trajectory may assist in eliminating students loan debts more quickly, freeing up more money to put toward retirement planning, the purchase and upkeep of insurance policies, and developing an emergency savings fund. For those who have already gradated, JonasInsuranceAdvisors.com encourages creating a strict budget designed with the elimination of debt and saving for retirement in mind. Though student loans may seem insurmountable, discipline in money-spending habits can go a long way, both in abolishing debt and in paving the way for a comfortable retirement.
Eamon Javers is a writer for CNBC. Javers has been writing for CNBC for three years, following his work as a White House reporter. Javers was responsible for investigating government bailouts and stimulus work, as well as covering Barack Obama’s presidency and related news.
In the wake of CNBC article discussing student loan debt and its persistence among adults of middle age and older, JonasInsuranceAdvisors.com discussed ways to avoid allowing student debt to survive past middle age while simultaneously planning for retirement. Though the easiest method of avoidance is prevention, JonasInsuranceAdvisors.com also encourages readers to take action. Rather than despair over the possible need to sell family heirlooms or collectibles, consider setting a strict monthly budget, focusing all excess money toward eradicating student loan debt and building funds for retirement. Jonas Insurance Advisors urges worried readers to look away from the potential of a cardboard box for a home, and instead work hard to allocate income wisely to pay off debt and save for the future.
About JonasInsuranceAdvsors.com: JonasInsuranceAdvisors.com is an online source for insurance and financial advice, offering readers up-to-date news and financial counsel.