Saving For a Home Purchase When You Still Have Outstanding Student Loans

A 45-second read by Nicholas Scheibner: Many young people face the dilemma of looking to purchase a home while still having student loan obligations. For example, you might question, is it better to pay off the student loan in its entirety and then work towards saving for a home purchase? Or continue paying off the student loan while saving for the home purchase?

Of course, the answer depends on your specific circumstance, but here are some ideas to consider:

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Social Security Increases Benefits by 2.80% for 2019

A 30-second read by Nicholas Scheibner:  Social Security will begin increasing payments beginning in January of 2019. 

Why did this happen – because October 11th is the date when the U.S. Bureau of Labor Statistics releases its report of inflation. Social Security uses the Bureau of Labor Statistics’ Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) as their measure of inflation. 

Cost of Living Adjustment (COLA) is Social Security’s term for inflation. Social Security uses the CPI-W to determine if an adjustment is needed to Social Security benefits. 

(Note: Social Security benefits do not go lower if inflation decreases)

You can read the official press release from Social Security here:

Contact your Baron Team for more information on social security benefits.

Who should be the account owner for a 529 plan? Does it Matter?

A 30-second read by Nicholas Scheibner:  When you are planning to fund your child’s college education, the 529 plan can provide several tax-benefits for your savings.  A 529 plan is a plan operated by a state or educational institution, with tax advantages and potentially other incentives to make it easier to save for college and other post-secondary training, or for tuition in connection with enrollment or attendance at an elementary or secondary public, private, or religious school for a designated beneficiary, such as a child or grandchild.

If you apply for financial aid through the U.S Government ( you will be filling out a FAFSA (Free Application for Federal Student Aid) form and you will want to consider who should be the account owner for the 529 plan. 

In regards to financial aid based on the FAFSA form, the form does distinguish between parents and grandparents in the following way:

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BFG’s Nicholas Scheibner Quoted in The New York Times

“5 Steps to Take if the Bull Market Run Has You Thinking of Unloading Stocks”, an article written by Tara Siegel Bernard in the Aug. 22, 2018 edition of The New York Times, discusses the extended bull market that we are currently experiencing and what, if anything, we should do differently with our investments.  According to Baron Financial Group’s, Nicholas Scheibner, CFP®,

Many people feel that they only have two options: Invest or not invest,” said Nicholas Scheibner, a financial planner with Baron Financial Group. “However, you have a third option — adjust.”

 Read the entire New York Times article here

Please reach out to the Baron Team for a second opinion on your portfolio.

Should You Reduce the Amount of Stocks in Your Portfolio When You Retire?

A 60-second read by Nicholas Scheibner: The theory of, “reduce my risk as I near retirement” has been a long-standing investment mantra for many years.  However, a reduction in risk at retirement age may not be the best course of action for every investor. The theory of reduction in risk as you near retirement needs to be looked at more closely. 

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