Comments on: Student Loan Advocates and Borrowers have a Message Problem https://studentloansherpa.com/student-loan-advocates-borrowers-message-problem/ Expert Guidance From Personal Experience Tue, 20 Jul 2021 17:52:55 +0000 hourly 1 https://wordpress.org/?v=6.7.1 By: The Student Loan Sherpa https://studentloansherpa.com/student-loan-advocates-borrowers-message-problem/comment-page-1/#comment-1382 Sat, 13 Jan 2018 01:39:00 +0000 https://store.eptu0ncx-liquidwebsites.com/?p=5532#comment-1382 In reply to dougm.

I couldn’t agree more with regards to not being able to rely upon Social Security. I hadn’t thought about the Roth rules changing, but I suppose it is a possibility.

Even if smart financial planning dictates not relying upon government policy, does that justify Congress going back on its word? I feel like we as citizens put up with way too many lies and deceit. Shouldn’t we demand more from our leaders? Expecting some accountability for the promises they make isn’t exactly setting the bar high.

]]> By: dougm https://studentloansherpa.com/student-loan-advocates-borrowers-message-problem/comment-page-1/#comment-1381 Fri, 12 Jan 2018 17:55:00 +0000 https://store.eptu0ncx-liquidwebsites.com/?p=5532#comment-1381 It is frustrating when the rules change. Unfortunately, there are many examples of that. For example, people have paid into Social Security for decades and now there are rumblings about reducing benefits. Those counting on full benefits at 65 are being bumped up to 67, with talk of 70. A number of Enron employees saw six-figure 401(k) balances wiped out. We have been told over the years that we should not depend on SS; that we should diversify our investments—including 401(k) accounts. I would not be surprised that at some future date, our politicians decide that distributions from a Roth are taxable. Remember when we got to deduct interest on auto loans and credit cards? That changed in 1986. The result was a shift to home equity loans. Now, those deductions have been eliminated in 2018. If people are borrowing money to attend expensive colleges, they should be smart enough to figure out that rules can change. They should have taken an approach where loan forgiveness might be in the cards, but don’t bet the farm on it. They should have planned to pay their loans off, and if they end up benefiting from forgiveness, it’s a bonus. I would advise those with Roth accounts to take the same approach—if they get tax-free withdrawals at retirement, it’s a bonus. Otherwise, consider them to be regular, taxable accounts. Financial rule #1: Don’t count on the government. Rule #2: Expect rules to change. Rule #3: Never borrow more than you can afford to pay back, even if you think somebody else (government, parent, employer, spouse) is going to pay it for you. Why See Rule #2.

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