Getting a Financial Adviser for Your Student Loans

One the biggest investments in our lives is getting a college degree. We know that graduating can provide us a lot more opportunities to have a higher quality of life. Before attending school, I planned how I was going to fund my four years of education. Next year, I will be a senior, so I have figured out the proper way to start paying off my loans after graduating. Lisa Skinner and Alessandra Malito wrote on their article Financial advisers help clients graduate from student debt for InvestmentNews explain how a financial adviser can guide every specific case to pay off student loans.

Meeting up with a financial adviser

Student loans are a specific topic, very different from a stock investment or an insurance purchase. It is ideal to meet up with a professional who is knowledgeable in this type of economic planning. Each student has a particular situation and unique needs. For example, I have used different sources such as federal options and merit-based opportunities. Skinner and Malito even point out how many people don't manage their loans correctly, as it may affect their way of living in the near future. We can see in figure 1.0 how some students may take more than twenty years to pay off their debt.

   Figure 1.0 - Figure showing millennials' college debt.

Source: https://www.cnbc.com/2017/01/25/women-carry-bigger-burden-of-student-loan-debt-than-men.html

Questions to ask your adviser

Most financial institutions offer the services of a financial adviser by appointment only, so you can have the time to talk about your specific case. I usually meet with my adviser twice a year. I recommend to have the right paperwork, information about all of the loans and awards throughout your career, and bring questions with the concerns you would to inquire about. While everyone has different needs, there are some standard questions we must investigate:

When should I start repaying my loan and which one should I pay first?

Every loan has a different payment option. Most of them have a six-month period of grace where you get a chance to start your life after college and find an appropriate job in your field. Skinner and Malito say that a financial adviser can guide you checking dates or even requesting an extension until you start generating an income.

How can I finance a Master's degree?

Communicate with your financial adviser what your plans are now that you have a college degree and your desire to attend graduate school. Depending on your preference, graduate schools offer different loans regardless of what you already owe on your undergraduate degree. Once you are accepted into the school of your choice, meet with your financial adviser to go through different options and how you can afford them.

Can you help me design a financial plan?

Getting a bunch of different bills after graduating is overwhelming and you probably won't know where to start. A financial adviser can guide you set up plan payments depending on your budget and even help you enroll in plan built upon your income. An example Skinner and Malito bring up in the article, is of a student who consolidated all of her debt, as the number of loans was bad for her credit score.

A professional economic adviser that specializes on student loans can help us simplify our finances. It may seem a complicated subject, but with their guidance we can understand each loan, create a budget, and organize our payments. In my case, it is helping me enjoy a good quality of life without having to worry about our money.



Resources:

Skinner, Lisa, and Alessandra, Malito. "Finacial advisers help clients graduate          from student debt." InvestmentNews - The Investment News Source for            Financial Advisers, www.investmentnews.com/article/financial-adviser-          help-clients-graduate-from-student-debt

[Untitled image of millenials debt statictics for CNBC] (2016). Retrieved                 November 05, 2017 from https://www.cnbc.com/2017/01/25/women-               carry-bigger-burden-of-student-loan-debt-than-men.html

Understanding the Need of Financial Adviser

There is a time in our lives when we decide to make an investment: a new car, a house or even a college degree. How do we know we are getting a good deal and who can guide us throughout the process? I have decided that I want to become a financial adviser, but not everyone knows exactly what that title means. Barry Glassman, a contributor for Forbes magazine, describes on his article what does a financial advisor do? how needing a financial adviser is pretty much as requiring a mechanic at some point in our lives. Nobody wants their car to break down and having to deal with the hassle of figuring out what is wrong with the vehicle. Instead, you place your trust on someone who is knowledgeable in the matter to prevent or fix the issue, so we can keep moving on with our lives.

Understanding the profession

I was doing some money transactions at my local bank, and my personal banker told me that financial institutions have realized that the phrase "financial adviser" sounds a little scary, so they have come out with terms to use instead, such as “savings specialist” or “wealth manager”. Glassman explains in his article that regardless of their title, the main objective is to achieve your economic needs. When I become a financial representative, I know I have to gain my customers' trust, build a solid relationship and coach them through different economic decisions, as everyone has unique expectations. A good financial adviser must be not only well-informed on different subjects such as investments, savings, and banking, but also should guide you in understanding what exactly is going to happen with your assets in the future. 

Looking for favorable conditions

Financial advisers are always on the look out to make the most out of their clients' investments while also looking for opportunities to save them money. Nobody likes to see stock losing its value, and making bad decisions under pressure that could make the situation even worse. An adviser provides management and can help you comprehend the projection of the investment to plan out the next move; ultimately it is our decision what is going to happen with our assets. Glassman reminds us that a financial adviser can assist us in looking for good investments, seek for favorable circumstances in the market that we might have missed and releasing some stress. Figure 1.0 is an example on what a Merrill Lynch financial adviser may show you to understand how to generate liquidity from your assets.

                             Figure 1.0 - Generating liquidity from assets.

Source: https://www.ml.com/articles/generating-liquidity-for-tax-payments.html

What to ask your financial adviser

Let's never assume anything. A good point Glassman brings is that most individuals are smart enough to manage their own assets, but an adviser is a professional who can keep us away from errors. The first question should always be: how can you generate me more money? We must understand every step, as it is our assets we are talking about. Another important matter I do every year is inquiring about my taxes, as a skilled financial person could potentially save you some money. Finally, request the adviser what other services he could provide you. Maybe you have some bonds or trust funds and don't understand how to deal with them. Remember, there are no senseless questions when it comes to your money. 



Resources:

Glassman, Barry. "What Does A Financial Advisor Do?" Forbes, Forbes Magazine, 8              Feb. 2017, www.forbes.com/sites/advisor/2017/02/08/what-does-a-finacial-                    advisor-do

[Untitled image for generating liquidity from Merrill Lynch] (2017). Retrieved                         Novemeber 12, 2017,  from https://www.ml.com/articles/generating-liquidity-for-           tax-payments.html