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I -- -- -- -- you friends if you have a financial question we'll try to squeeze this in.
-- -- Sherry olds in here she can talk about the economy at a global level and would you be doing your house sold the financial press store's name her book your five step plan for adapting a prospering.
In the new economies we just tuning in the first two that we went over briefly to five steps are adapting your banking and borrowing.
Fixing your credit and debt and we know that a 150 billion dollars has gone into the hands of collections -- and knowing your rates if it comes to those guys is real important.
Protecting your saving investment and retirement deciding if homeownership rate for you and last but not least figuring out ways to spend less money.
And earn more money and then we got some supplemental -- -- -- on how to choose the right professional including negotiating fees and things like that to help you with all these services.
And also on the future of education and how that plays into.
Economy and employment and wages right so as we tried to supplement education give -- -- -- higher education these private colleges have I have a reaction to that.
Since the more money's coming in what do we make the tuition higher exactly and unfortunately the non graduation rate is higher.
And the time it takes average folks to graduate from some of the credit card colleges is -- -- it takes you six years to graduate obviously that's gonna question a lot more.
But there is an important role even for those institutions it's really up to us to recognize that their businesses and know how to use them I mean students can't be.
Deciding on education now based on where their friends are going or what's convenient.
At and a career based on what sounds like -- this needs to be a business decision based on return on investment and that's we've got to approach -- capsule it's supposed to be inexperienced but you -- -- to they believe the stats that show.
The percentage of people coming out of college to get jobs have X degree whether it's business counting.
Theatre whatever it's not only get jobs and not only starting wages but potential for upward mobility over the career and now we know.
People who keep their jobs during periods that we just went through I mean folks who have a college degree.
Or five times more likely to keep their job than folks who didn't finish college right -- the other thing is.
As we as we look right now -- the individual is is also responsibility.
-- the concerns you.
-- it was the worst thing in the world if you ever had to be for clothes and a mortgage.
And -- -- in its humiliating death now it's a tactic it for a lot of people it is it is a strategy and there's a culture and folks who are buying a home today for the first time -- sitting at the closing table.
Knowing that if it doesn't work out I mean look five years ago no one even knew what a short sale was I mean if you if you're in a room and asked anyone who knew someone who went into foreclosure.
Ten years ago to raise their hand.
Maybe you'd have one person raise their hand now.
I would bet everyone in the room -- -- -- my question is ten years from now how many people are gonna raise their hand.
Right see you're seeing that there is -- website -- there -- until he would go to would but there's what's it gives you a strategy.
How do basically walk out of your home you can become a member of a club and they have the silver gold and platinum levels and they will coach you on how to walk away from your mortgage.
The thing that really gets me is now they've got this new program that they'll coach what had to get a new mortgage afterwards so how do you have a both ways CEO you also Vernon another element we are the reason -- that we are the world's currencies -- we've been the most stable economy.
And also people's view us as upstanding not and we can't have everybody is always bad apple amongst them.
Police he would have would these mortgage securities in the selling off to other banks.
People are looking and it's the same way you know that our country has always been the gold standard in terms of ethics.
And with scandals like Barclays rate fixing or even the S&P issue over over our ratings.
That becomes questionable and certainly at the average American level -- -- we've got millions of Americans who are gonna sit at their dining room table tonight and decide whether they want to or can afford to pay their mortgage those discussions they're having -- -- their kids so it makes you wonder where's our next generation gonna fall in terms of this ethical threshold and the thing is if you don't have that contract and upon the whole system full support.
In less you feel as though there's going to be a lot of Americans who say there's an 800000 dollar home I have that in my savings of -- it as long as there's a need for mortgages.
There's gonna be need for that bond to.
But still that mortgage obligations and if there isn't it all falls -- -- right well and and not honoring your financial obligations where's the line can move from your mortgage to your car -- cheer your credit card.
And so on fortunately most folks still do I believe.
And and you know we need -- the for those folks who don't we need to make sure that it's not because there.
Feeling as if they're victims and that's where financial fresh start comes back in it really gives folks.
That empowerment so that they're not victims of the banks or anyone -- and they can navigate these things for themselves I -- in the future do you see a situation where the banks have tightened up their credit.
They have they're they're lending practices.
How do you get them to release some of the money that they have and -- being given in some cases.
Right well you know and that goes to the government's role in housing and we know that -- -- Freddie Mac are certainly were taken into conservative ship in 2008.
-- definitely be on the radar screen in terms of reforms the same thing goes for FHA.
And now Dodd-Frank has this new standard called qualified residential mortgage which is basically going to make mortgages.
Much less accessible.
And much more expensive for average Americans.
So in a sense it's like those those safety detectors at the airport you know we're all going to be subject to this just because some guys didn't follow the rules.
Now there's -- new dating there's a new website for your credit score.
And it's credits were -- -- -- really yes.
Where you could understand maybe if you have somebody you matched up with who might have the same -- you.
Do you think that's important for a nuts and bolts thousands and rarely give very interesting and I would say that your credit score is probably a better reflector of who you are -- your Harsco.
I -- you -- -- take that over that this sun and the moon position.
But as a as a look who is happening here.
With a 401K.
This is what I was told 34 years ago when people are asking about your 401K and people are getting panicky about it.
Don't look at.
-- you do you agree with I do but you know -- far away from retirement yeah yeah well and here's the thing for average Americans is 401 -- Iraq and iris to actually the lowest lying fruit because less than a third of Americans are using them and maximizing them.
And one of the big problems is a lot of folks who lost their jobs most folks who lost their jobs cashed out those retirement savings and have not started those accounts again.
So that's bad for them but it's also bad for all of us because of the -- -- got to support them -- absolutely and we know with sequestration and you know eventually there's gonna be cut backs eventually you -- I are not going to be able to retire as early -- not -- to be able to count on those benefits as much and so this is really all about.
Becoming a little more self sufficient taking a little more ownership.
Not relying as much on government programs because what we know some of them are gonna go way.
And figuring out a plan B for those things and you talk about -- is again we hear a lot about the 520 -- Your thoughts about of them sitting of a college.
Savings camp by between guys pay off -- -- certain levels of them that you think we should look for I think it really depends on your own self discipline.
I mean for folks who are able to really invest otherwise I mean look.
Traditionally that home equity has been news for colleges and events like that I mean that's -- 75% of Americans.
Used because they weren't able to discipline themselves.
And unfortunately we lost thirteen trillion dollars during a crash but homeownership for example is essentially a forced savings plan.
So for folks who are able to discipline themselves I think there's a wide array maybe you know government.
Endorsed college savings plans.
But for those who can't you're better off with if something it's gonna force you to put that money is that you would before that automatic withdrawals with the 520 -- knowing that.
It's zero 80 in terms of in terms of fees.
-- you go to get it out.
Yeah it really you know what it really depends on your own financial situation again how how much you can discipline yourself to do -- a lot of these colleges I mean a lot of states also have prepaid.
College funds where you can -- in and use that money for a state.
Sponsor school -- -- specific school which is another alternative for folks but the point is now a days we need to rely on.
Other resources for education and as it's in real quick they were for those people say sooner or later.
The house is our best investment will come back again should they be patient absolutely it you know a lot of it is a matter of -- rain but I still believe homeownership is the backbone for America's.
Across financial fresh start go get it answers all the questions -- Olson thanks so much.
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