Financial Floyd Blogspot

Good Morning, Last weekend the Venture Capitalist/Billionaire Robert Smith set the world on fire by paying off the debt of the 2019 graduating class of Morehouse. During an online conversation with Rendel Solomon, we vaguely discussed the economic impact of this move, but outside of the financial impact he also changes the thought process for how people will view this action. Usually, I highlight a couple of main points from an article, but this entry will be slightly different. I will touch upon the financial and behavioral impact that this move has on the masses. 1. The economic impact is easy to assess which is where I will start. Based on the approximate average monthly loan payment of $300 a month (based on a study produced by Studentloanhero.com on 2/4/2019), Mr. Smith puts that money back into the graduate’s pocket, but it gets more complex. If these students contribute these savings to their company 401-k or a basic IRA/Roth IRA account, they receive the following benefi...

**Note I talk about two different articles and a podcast within this blog post** Good Afternoon, Everyone has known that inequality exists, but over the past couple of years, new studies have been done highlighting the impact it has on societies. A couple of weeks ago the Milikin Institute in conjunction with JP Morgan released the results of a business case they are presenting for closing the wealth gap between ethnicities. From the article, a couple of stark points stood out: 1. 20% of African American Households are unbanked 2. In 2016 the Federal Reserve released a report showing that the average African American family had a net worth of 17k, while the average white household had a net worth of $171k 3. If People of Color owned business at the same rate as white entrepreneurs it would result in 9 Million more jobs and $300 Billion (yes, Billion) in worker income The net worth gap is significant, but it is partially a derivative of homeownership being a bulk of the average Am...

Good Morning, Last Friday CNBC(link below) reported that Consumer Financial Protection Bureau filed a lawsuit against two companies(Lexington Law and Creditrepair.com). The government agency claims that these companies are using fraudulent activities to gain clients. From the article two points that stood out were: 1. The government agency wants to end the upfront fee and deceptive marketing techniques (bait and switch) 2. Some credit repair companies charge hefty fees of $79.95 to $129.96 per a month I have noticed that there are more sites and advertisement for credit repair, and with low rates it is advantageous to have the best credit rate possible. Unfortunately, I’m not familiar with who or what are the best programs, so I would consider gathering a couple of different options then decide which option is best for your situation. The cost does matter because the prices mentioned in the article equate to $1,000+ a year which could be used for paying down debt. Doing some ...