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The Shakiba Report: 5 reasons your parents financial advice is probably wrong

Reaching financial success now, is probably different compared to 30+ years ago

HOUSTON – Over the past 30 years, college tuition, student loan debt and home prices have soared. 

The way to reach financial success now, probably looks a bit different compared to the way your parents would have gone about it. 

Private wealth advisor with Ameriprise Financial, Trevor Shakiba, breaks it all down. 

I saw this article, I think it was a week ago on the Wall Street Journal, so I want to give them credit, and I knew that would get everyone's attention... The old playbook is, 'Go to college, get a job and buy a house,' the problem there is that two of those things have exponentially increased when it comes to college and home prices... so all of those things can be good things, all I'm really saying is pause, and really understand the numbers," said Shakiba. 

Click here, for the Wall Street Journal article mentioned by Trevor.

THE SHAKIBA REPORT
 

THE OLD PLAYBOOK IS NO LONGER VALID 

  • It used to be: 'Go to college, get a job, buy a house!'
  • These can all be good things still, but it isn't like it used to be
     

THE NUMBERS NEVER LIE

  • College tuition has soared 1,375% since 1978 (Labor dept.) 4 times the rate of inflation
  • Student loan debt has quadrupled since 2005 ($1.48 trillion)
  • Median home prices in metro areas have soared. In 1989 in Seattle, a house was $77k, now it's $542k.
     

ANY AND ALL EDUCATION DEBT IS NOT GOOD DEBT

  • Investing in yourself is great, but you can go overboard
  • More than 2 million borrowers have defaulted in the past 6 years
  • What is your career path? 
  • Return on your investment
     

DON'T JUST ASSUME YOU SHOULD BUY A HOUSE

  • It is not automatically a fantastic investment
  • Is it really an asset or is it a liability?
  • Calculate all the costs along with your time frame
     

NOT ALL OF THE OLD RULES ARE DEAD

  • Live below your means
  • Start saving and investing asap
  • Develop a plan
     

For more information or to request a complimentary consultation with The Shakiba Group, click here or call 281-724-9917.

The initial consultation provides an overview of financial planning concepts. You will not receive written analysis and/or recommendations. 

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