APTA Member Benefit Education Finance Program Administered by: MEDebt Solutions/EAS Group, LLC Informed Solutions For Protecting the Value of Your Human.

APTA Member Benefit Education Finance Program Administered by: MEDebt Solutions/EAS Group, LLC Informed Solutions For Protecting the Value of Your Human Capital; Your Physical Therapy Degree and Career Earnings! “Uninformed and Improperly Managed Debt May Be the Most Harmful and Devastating Threat to the Success of Physical Therapy Students and Graduates” Leon Johnson, Jr., MBA, DEd President & CEO EAS Group, LLC/MEDebt Solutions APTA National Student Conclave Hyatt Regency Minneapolis 9:00 AM – 10:00 AM Saturday, October 23, 2011 Copyright © 2011 MEDebt Solutions/Education Association Services (EAS) Group, LLC. No reproduction, in whole or in part, without written permission. 1

APTA Member Benefit Education Finance Program Administered by: MEDebt Solutions/EAS Group, LLC
For a copy of this presentation or more information on personalized MEDebt Solutions Debt Evaluation & Budget Affordability Assessment & Planner your request to Please reference APTA - NSC Copyright © 2011 MEDebt Solutions/Education Association Services (EAS) Group, LLC. No reproduction, in whole or in part, without written permission. 2

THIS IS A WARNING!!!! Warning this presentation may cause acute fear, anxiety, pain and stress to some, perhaps many and possibly most if not all in this room because finding out what you don’t know about “Finance,” money, debt, particularly your student loans can be harmful to every aspect of your current and future life; physically, psychologically, and fiscally. This presentation/intervention also strives to help you understand the core principles of finance, manage all forms of debt, particularly student loans and ENCOURAGE and URGE you to PROTECT YOURSELF from the ravages of not being informed.

Prologue Before we can explore protecting the value of your physical therapy education investment through better management of debt, money, financial aid and future earnings we must first change the conventional intuitive conception of ‘Debt & Money’ and gain a financially accurate understanding of Finance, Human Capital and the Core Principles of Personal Finance; goal setting, time/value/risk, saving/investing, debt, credit and behavior.

Finance is a science Finance is a science of funds management and resource allocation which includes saving money, investing money, lending money, borrowing money, spending money and the interrelatedness of time and risk. Only those who have been educated, trained and/or experienced and committed to fiduciary principles in the disciple have the ability to intelligently navigate and guide others through this maze. Finance is NOT financial aid. Unless one is a trained experienced financial professional with student loan expertise one would typically not know how to best assess and manage student loan debt in combination with a given salary, expenses and goals.

Human Capital is the value of your future earnings
Human Capital is the value of your future lifetime career earnings based upon your education, health, knowledge, motivation, work ethic, energy and skills. In practice it is unlike Financial Capital (your actual savings/investments) in that human capital cannot be monetized. You can cash out and spend all of your savings and investments all at once, but you cannot cash in the next 40 or more years of future earnings.

Human Capital If you are young and have many working years (15 – 40+) ahead of you, your human capital is high, and you can take more financial risk now. Just how much depends on how comfortable you are in taking that risk, your goals, your money IQ and commitment to the core principles of finance, your behavior, attitude, how much you borrow and how you manage your student loans. MEDebt Solutions/EAS Group

Human Capital Your future earnings will eventually become monetized.
Your total future earnings are currently unknown but will be finite and be a different amount for each of us. This is why Human Capital and your Money and Debt must be managed with “financial intelligence and proficiency” if you are to reach your goals and achieve the success you deserve.

Your Values & Debt The way you spend reflects your values and what you think is important in the world. Carrying an ongoing credit card balance is an indicator that you cannot afford your life. According to Warren Buffett, “The only types of debt that make any reasonable sense are student loan debts, mortgage debt on a reasonable small home, and car debt on your very first car. After that, you should do everything in your power to avoid further debt.” APTA – Member Benefit Education Finance Program

Confucius didn’t say it but it’s true
“…human beings don’t want to be controlled. We want to be in control.” “The only way to get the financial future you want is to begin creating it now!” “The problem is not how much we earn…it’s how much we spend.” “Most of us don’t really think about how we spend our money—if we do, we often focus solely on the big ticket items while ignoring the small daily expenses that drain away our cash.” Quotes from: The Automatic Millionaire: A Powerful One-Step Plan to Live and Finish Rich by David Bach, Broadway Books:NY, 2004

Academic Degrees & Intuition is not enough
MOST OF US ARE NOT AS SMART AS WE THINK WE ARE WHEN IT COMES TO “FINANCE” UNLESS WE HAVE BEEN EDUCATED AND TRAINED IN THE DISCIPLINE AND EVEN THEN MANY ARE NOT AS SMART AS WE THINK WE ARE. OVERCONFIDENCE IS WHAT HAPPENS PRECISELY BECAUSE WE THINK WE KNOW A LOT ABOUT THE SUBJECT, BUT IT CAN LEAD US TO MISTAKES THAT IN HINDSIGHT WILL BE GLARINGLY OBVIOUS. THE TRICKY PART IS THAT WE DIDN’T KNOW IT AT THE TIME. Source: Investing With the Heard, Carl Richards, Bucks, the blog about money at nytimes.com/bauks NYT, January 22, 2011 APTA – Member Benefit Education Finance Program

Investing is about behavior, not skill.
Investing is about behavior, not skill. Successful investing is about how you behave. Buying high and selling low is dumb. It’s important to remember that you could own a “mediocre” mutual fund, and if you behave correctly you can outperform 99 percent of your neighbors. On the other hand, if you spend your whole life searching for the “best” investment, you can ruin your entire lifetime return in one single behavioral mistake.

Personal finance is about impulse control
Personal finance almost always comes back to impulse control. If you can’t control your impulses and desires when it comes to spending money, financial success will almost always be elusive in your life. You won’t get ahead if you can’t control yourself.

Men & Women are Different
Men and women invest differently, a growing body of research has found. And in at least one important respect, women may be better at it. The latest data comes from Vanguard , the mutual fund company. Among 2.7 million people with I.R.A.’s at Vanguard, found that during the financial crisis of 2008 and 2009, men were much more likely than women to sell their shares at stock market lows. Those sales presumably meant big losses — and missing the start of the market rally that began a year later. Male investors, as a group, appear to be overconfident, said John Ameriks, head of Vanguard Investment Counseling and Research and a co-author of the study. “There’s been a lot of academic research suggesting that men think they know what they’re doing, even when they really don’t know what they’re doing,” he said. Source: How Men’s Overconfidence Hurts Them as Investors, The New York Times, Jeff Sommer, March 13, 2010

Men & Women are Different
Women, on the other hand, appear more likely to acknowledge when they don’t know something — like the direction of the stock market or of the price of a stock or a bond. Staying the course and minimizing costs — selling high and buying low, if you trade at all — are the classic characteristics of good long-term, buy-and-hold investors. But during the financial crisis, a Vanguard study showed, men were more likely than women to trade — and to do so at the wrong times. Source: How Men’s Overconfidence Hurts Them as Investors, The New York Times, Jeff Sommer, March 13, 2010

The Legend of Earl Crawley
For more than 40 years, Earl Crawley, who struggles with dyslexia has been a parking lot attendant, never earning more than $20,000 a year. Mr. Crawley without benefit of a college degree build a net worth of more than $1 million? Most of us could learn quite a lot from Mr. Earl. Be sure to Goggle him and learn his story.

You Cannot Start Saving Too Soon!
An early accumulation of funds is more important than interest rate and can be used to help finance some of your most important and expensive goals such as a home, a business/practice, retirement, kid’s education and philanthropic endeavors. MEDebt Solutions - Informed Solutions For Student Loans, Debt, Money & Beyond

Saving for retirement in your 40’s & 50’s versus starting in your 20’s
How much do you need to save so that you can retire at age 65? People in their 40’s and 50’s spent a big chunk of their adult life not having to save for retirement. This gave them more flexibility with their money in their twenties and thirties than people who were already saving for retirement. On the other hand, people who start saving early don’t have to save as much overall as people who start later on. Which approach is better? Source: The Simple Dollar, “How Important Is It to Start Early?” November 3, 2011

Let’s say you’re 20 years old right now. You want to have $2 million set aside for retirement at age 65 and, magically, there’s an index fund out there that will return 7% a year (based on the 7% on what Warren Buffett suggests is a good number to use for average stock market returns going forward). Source: The Simple Dollar, “How Important Is It to Start Early?” November 3, 2011

If you start investing at age 20, you’ll need to put aside about $510 a month to reach this goal. If you start at age 25, you’ll need to set aside about $725 a month to reach this goal, but you don’t have to save anything from ages 20 to 25. If you start at age 30, you’ll need to set aside about $1,050 a month to reach this goal, but you don’t have to save anything from ages 20 to 30. If you start at age 35, you’ll need to set aside about $1,530 a month to reach this goal, but you don’t have to save anything from ages 20 to 35. Source: The Simple Dollar, “How Important Is It to Start Early?” November 3, 2011

If you start at age 40, you’ll need to set aside about $2,270 a month to reach this goal, but you don’t have to save anything from ages 20 to 40. If you start at age 45, you’ll need to set aside about $3,480 a month to reach this goal, but you don’t have to save anything from ages 20 to 45. If you start at age 50, you’ll need to set aside about $5,600 a month to reach this goal, but you don’t have to save anything from ages 20 to 50. Source: The Simple Dollar, “How Important Is It to Start Early?” November 3, 2011

As you read through those previous scenarios, you probably thought that the amounts early on were quite manageable, but when you got to age 50, you’re likely thinking that it’s bordering on impossible. That’s the lesson here. You can forego the early retirement savings, but catching up later on can be incredibly punishing and the longer you wait, the more punishing it gets. Thus, the advice is to start saving for retirement right now, no matter what age you are. Even if you can’t save very much, start by saving something. If you’re not saving, you need to be doing something else that’s financially urgent with your money. Source: The Simple Dollar, “How Important Is It to Start Early?” November 3, 2011

For example, if you just save $100 per month starting at age 20 in the above retirement account, increase it to $200 a month at age 30, $300 a month at age 40, $400 a month at age 50, and $500 a month at age 60, you’ll have $720,000 saved for retirement. Double each of those numbers and you’re getting close to where you need to be. There’s no greater important financial lesson than to Start Saving Now, even if it’s just a little bit. Don’t burden your future self with crippling amounts of retirement savings or employment until the very end of your life. Source: The Simple Dollar, “How Important Is It to Start Early?” November 3, 2011

Your specific investment choices matter less than the simple fact you’re investing. So often, people put off investing because they’re afraid of making a mistake and investing in the wrong thing. That, in itself, is a far bigger mistake. You’re far better off investing in a poorly-returning investment than not investing at all. You’re better off starting the first possible day on your retirement plan because it’s your investing dollars that make the difference when you’re just starting out, not the perfect investment. Source: The Simple Dollar - The Simple Dollar - “Ten Things College Graduates Need to Know About Finances and Careers”

Even putting money in a savings account is a form of investment (it’s a stable and highly liquid investment with low returns). You’re far better off starting a savings plan now than you are putting it off because you’re not sure exactly where to put the money. If you don’t know how or where, put your money in a savings account. You can always move it later. Don’t let your uncertainty about the specifics keep you from saving and investing money now. If you don’t know for sure, just go as simply as possible. Source: The Simple Dollar - The Simple Dollar - “Ten Things College Graduates Need to Know About Finances and Careers”

Building wealth, can be easy!
Take a blank sheet of paper and designate it an amount of money you plan on starting your saving. $10 $100 $1000 $10,000 $100,000

For example your sheet represents $1,000. Tear the sheet in half. You now have $2,000

Tear the sheet in half again. You now have $4,000 You now have $8,000

Tear the sheet in half again. You now have $16,000 You now have $32,000

Tear the sheet in half again. Having started out with just one sheet of paper and never adding another sheet of paper you now have 64 pieces of paper. Applying the Rule of 72 if the interest rate was 10% your single $1,000 deposit final balance would be $64,000 THIS IS THE POWER OF COMPOUNDING INTEREST. in approximately 44 years – and all you needed was to start early and let time work for you.

Had you started with the single $1,000 and added just $100 each month (about $3.30/day) for deposits totaling $53,8000 your Final Savings Balance: $ 1,027,730.94

Start Saving Early Hazel and Bob both save $1,000 per year ($83.33 per month or $19.23 per week – something everyone here can do). The money each saves earns 10% interest per year. Hazel starts at age 22 and stops at age 30 (8-years). Bob starts at age 30 and stops at age 65 (35-years).

Start Saving Early Age Hazel Invests Growth Bob Invests 22 1,000 1,100
23 2,310 24 3,641 25 5,105 26 6,716 27 8,487 28 10,436 29 12,579 MEDebt Solutions - Informed Solutions For Student Loans, Debt, Money & Beyond

Start Saving Early Age Hazel Invests Growth Bob Invests 30 13,837
13,837 1,000 1,100 31 15,221 2,310 32 16,743 3,641 33 18,418 5,105 34 20,259 6,716 35 22,285 8,487 36 24,514 10,436 37 26,965 12,579 38 29,662 14,937 39 32,628 17,531 40 35,891 20,384

Start Saving Early Age Hazel Invests Growth Bob Invests 40 35,891 1,000 20,384 41 39,480 23,523 42 43,428 26,975 43 47,771 30,772 44 52,548 34,950 45 57,802 39,545 46 63,583 44,599 47 69,941 50,159 48 76,935 56,275 49 84,628 63,002 50 93,091 70,403 MEDebt Solutions - Informed Solutions For Student Loans, Debt, Money & Beyond

Start Saving Early Age Hazel Invests Growth Bob Invests 51 102,400 1,000 78,543 52 112,640 87,497 53 123,904 97,347 54 136,295 108,182 55 149,924 120,100 56 164,917 133,210 57 181,409 147,631 58 199,549 163,494 59 219,504 180,943 60 241,455 200,138

Start Saving Early Age Hazel Invests Growth Bob Invests 61 265,600 1,000 221,252 62 292,160 244,477 63 321,376 270,024 64 353,514 298,127 65 388,865 329,039 Value at Retirement $388,865 Value At Retirement $329,039 Less Total Contributions $(8,000) $(35,000) Net Earnings $380,865 $294,039 Hazel invested $8,000 total. • Bob invested $35,000 Total - $27,000 more than Hazel ...and Bob never catches up. Hazel has $27,000 more than Bob to use for other important priorities and goals. Hazel has also net earning of $86,862 (26.53%) more than Bob.

State of American Financial Literacy
A study done by the National Council of Economic Education found that one-third of Americans are illiterate when it comes to personal financial concepts and the status of the economy. 41 percent of U.S. adults, or more than 92 million people living in America, gave themselves a grade of C, D, or F on their knowledge of personal finance. Source: National Foundation for Credit Counseling, 2009 Financial Literacy Survey, April 2009 MEDebt Solutions - Informed Solutions For Student Loans, Debt, Money & Beyond

State of American Financial Literacy
Parents often do a poor job teaching their kids about finance. The 2011 National Foundation for Credit Counseling financial literacy survey found that 42% of Americans picked up their money habits from their parents. Yet 56% of those adults do not have a budget, 28% don't pay their bills on time, 32% don't save for retirement and 33% don't save at all. Kids pick up on parents' financial actions, but it's not always clear to them what they should be emulating or avoiding. That has long-term financial consequences. Source: National Foundation for Credit Counseling, 2009 Financial Literacy Survey, April 2009

Parents providing for adult children
Nearly 60% of parents are providing some kind of financial support for adult children, according to a recent survey from the National Endowment for Financial Education. But the bulk of parents can ill afford that extra expense: 26% have taken on more debt to help their kids, and 7% have delayed retirement. Keep in mind that 47% of Boomers have saved $100,000 or less for retirement, according to the 2011 Scottrade American Retirement Survey. Source: Smart Money Ten Things Your Parents Won’t Tell You, August 10, 2011

Adult children providing for parents
It is a very real risk that adult children will need to use their own savings to help care for an aging parent, whether that parent still has some financial resources or not. MetLife estimates 17% of men and 28% of women care for an aging parent, up from 3% and 9%, respectively, in 1994. Source: Smart Money Ten Things Your Parents Won’t Tell You, August 10, 2011

Adult children providing for parents
Even without out-of-pocket expenses, care-giving costs the average woman $324,000 in lost wages, pension and Social Security benefits, while men lose $284,000 Last year, the average rate for a private nursing home room increased 4.6%, to $83,585 a year, according to MetLife's annual survey, while fees for an assisted living facility rose 5.2% to $49,516. Source: Smart Money Ten Things Your Parents Won’t Tell You, August 10, 2011

Adult children and parents should plan together
Parents should assess their finances as though they will live to be 100-plus, says certified financial planner Ballou. That might mean buying long-term care insurance to supplement lackluster savings, as well as reviewing benefits earned from employers and the government. Adult children should also ask parents about their retirement plans and the likelihood of them needing help, so there are no surprises and they can start planning, too, she says. Source: Smart Money Ten Things Your Parents Won’t Tell You, August 10, 2011

What is your relationship with money?

What does MONEY mean to you?

What’s Your Money Personality
Hoarder - Budgets and saves carefully, hesitates on unplanned purchases. Spender - Buys spontaneously and impulsively. Worrier - Talks a lot about money. May be obsessed with it. Avoider - Hates to deal with money at all. Money Monk - Thinks money is dirty and corrupting. Money Amasser - Self-worth depends on how much spent or saved. Take the Money Personality Quiz at: Source: Money Harmony: Resolving Money Conflicts In Your Life and Relationships, by Olivia Mellan

What's your personal finance IQ?
A QUIZ!

1. After my payment history, the largest single factor that determines my credit score is: (a) The length of my credit history (b) Amount of debt I owe (c) The number of credit cards I have (d) The number of credit applications I've made within the last year Source: What's your personal finance IQ? By David Pitt, Associated Press, Copyright St. Petersburg Times, Sunday, April 3, 2011

1. (b) After your payment history (35 percent), the second largest factor used to determine your credit score is the amount you owe. According to FICO, it counts for 30 percent. This isn't simply the total amount you owe, but weighs several related issues; among them: what's owed on specific types of accounts; the number of accounts with balances; and the proportion of your total available credit that's used. Check here for more details: . Source: What's your personal finance IQ? By David Pitt, Associated Press, Copyright St. Petersburg Times, Sunday, April 3, 2011

2. Recent changes to credit card regulations mean that the interest rate on an existing credit card balance can't be raised unless payments are 60-days past due (a) True (b) False Source: What's your personal finance IQ? By David Pitt, Associated Press, Copyright St. Petersburg Times, Sunday, April 3, 2011

2. (a) True. Credit card reforms enacted in 2010 added various consumer protections. Rates on existing balances, can't be raised unless the account is at least 60 days past due. If payments are made on time for six consecutive months, the original rate must be restored. Source: What's your personal finance IQ? By David Pitt, Associated Press, Copyright St. Petersburg Times, Sunday, April 3, 2011

3. What's the biggest difference between an Individual Retirement Account (IRA) and a Roth IRA? (a) The investments you can choose from stocks, bonds or CDs; (b) When you will pay taxes; (c) Where you can open an IRA — a bank or brokerage house Source: What's your personal finance IQ? By David Pitt, Associated Press, Copyright St. Petersburg Times, Sunday, April 3, 2011

3. (b) The biggest difference is when you pay taxes. All or part of traditional IRA contributions are tax deductible depending on your circumstances, and you pay taxes when you make withdrawals from the account. Roth IRA contributions are not tax deductible, but upon withdrawal the earnings and principal are tax free if you've followed all the rules. The mix of investments you may choose are generally the same for both accounts. Source: What's your personal finance IQ? By David Pitt, Associated Press, Copyright St. Petersburg Times, Sunday, April 3, 2011

4. When applying for a loan, what does the acronym APR stand for? (a) Average Principal Return; (b) Average Percentage Rate; (c) Annual Percentage Rate Source: What's your personal finance IQ? By David Pitt, Associated Press, Copyright St. Petersburg Times, Sunday, April 3, 2011

4. (c) Annual Percentage Rate. It is the cost of a loan over a year's time, typically including interest, insurance and origination fees (also called points). It's used for home and car loans, and credit cards. Source: What's your personal finance IQ? By David Pitt, Associated Press, Copyright St. Petersburg Times, Sunday, April 3, 2011

5. What's the difference between a money-market account and a money-market fund? (a) There is no difference; (b) One pays interest, the other does not; (c) One is offered by a bank and is insured by the FDIC, the other is not Source: What's your personal finance IQ? By David Pitt, Associated Press, Copyright St. Petersburg Times, Sunday, April 3, 2011

5. (c) A money-market account is an interest-bearing savings account offered through a bank and is insured by the FDIC. A money-market fund is short for money-market mutual fund, which invests in short-term debt such as Treasury bills or short term corporate bonds. Although their yields are now at historical lows, money-market funds generally offer a slightly higher return than money-market accounts. Source: What's your personal finance IQ? By David Pitt, Associated Press, Copyright St. Petersburg Times, Sunday, April 3, 2011

6. If I've been automatically enrolled in my 401(k) at work I should be on track with my retirement savings. (a) True (b) False Source: What's your personal finance IQ? By David Pitt, Associated Press, Copyright St. Petersburg Times, Sunday, April 3, 2011

6. (b) False. You need to take an active role in managing your account. An automatic enrollment plan likely starts you at a low level of contributions, often 3 percent of your income. That may not even be enough to capture your company's match, which means you're leaving free money on the table. In addition, the investments your money is placed in may not correspond to your personal retirement goals. Source: What's your personal finance IQ? By David Pitt, Associated Press, Copyright St. Petersburg Times, Sunday, April 3, 2011

7. A tax credit is deducted from a person's taxable income. (a) True (b) False Source: What's your personal finance IQ? By David Pitt, Associated Press, Copyright St. Petersburg Times, Sunday, April 3, 2011

7. (b) False. There's a difference between a tax credit and a tax deduction. A tax deduction reduces the amount of your income that is taxable; such as the deductions parents take for dependent children. A tax credit is different in that the amount is deducted directly from the taxes you owe. A tax credit lowers your tax bill dollar for dollar. A deduction shaves money off your taxable income, so the value depends on your tax bracket. If you're in the 25% bracket, a $1,000 deduction lowers your tax bill by $250. But a $1,000 credit lowers the bill by the full $1,000, no matter in which bracket you are. Source: What's your personal finance IQ? By David Pitt, Associated Press, Copyright St. Petersburg Times, Sunday, April 3, 2011

8. The broadest indicator of how U.S. stocks are performing is: (a) Dow Jones industrial average; (b) Standard & Poor's 500 index; (c) Nasdaq composite; (d) Russell 2000; (e) Wilshire 5000 Source: What's your personal finance IQ? By David Pitt, Associated Press, Copyright St. Petersburg Times, Sunday, April 3, 2011

8. (e) The Wilshire 5000 with more than 5,000 companies is considered the broadest measure of the U.S. stock market, tracking nearly all actively traded U.S. stocks. Although the Dow may be the most cited index and the most watched by Main Street investors, it includes just 30 companies. The S&P 500 is mostly large companies and is used frequently by fund managers and other institutional investors. The Nasdaq composite index tracks stocks on that exchange. The Russell 2000 tracks 2,000 small companies. Source: What's your personal finance IQ? By David Pitt, Associated Press, Copyright St. Petersburg Times, Sunday, April 3, 2011

9. Comprehensive auto insurance coverage means that you can be reimbursed for the cost of any damage to your car caused by a collision. (a) True (b) False Source: What's your personal finance IQ? By David Pitt, Associated Press, Copyright St. Petersburg Times, Sunday, April 3, 2011

9. (b) False. Despite its name, comprehensive coverage refers only to a portion of an auto insurance policy that covers damage to the policyholder's car not caused by a collision, such as weather, theft or vandalism. Source: What's your personal finance IQ? By David Pitt, Associated Press, Copyright St. Petersburg Times, Sunday, April 3, 2011

10. Of the three credit reporting agencies, I really need to look at just one report a year to make sure everything's okay. (a) True (b) False Source: What's your personal finance IQ? By David Pitt, Associated Press, Copyright St. Petersburg Times, Sunday, April 3, 2011

10. (b) False. There are three credit reporting agencies. They are Equifax, Experian and TransUnion. Federal law requires that they allow you to see your report at least once a year for free. The reports aren't identical so you should look at all three. It's best to look at one every four months to monitor your credit throughout the year. Get the free reports at or call Source: What's your personal finance IQ? By David Pitt, Associated Press, Copyright St. Petersburg Times, Sunday, April 3, 2011

11. If I own a target-date mutual fund in my 401(k), which minimizes my risk of stock market losses as I approach retirement, I shouldn't invest in other mutual funds. That's because a target- date fund is designed to be an all-in- one investment. (a) True (b) False Source: What's your personal finance IQ? By David Pitt, Associated Press, Copyright St. Petersburg Times, Sunday, April 3, 2011

11. (b) False. That said, there is nothing wrong with using a target-date mutual fund as the only investment if an investor decides, based on risk tolerance and time frame until retirement, that one fund fits his or her needs, says John Ameriks, head of Vanguard Investment Counseling & Research. In some cases, however, investors may choose to own shares in a target-date fund in addition to stock in the company for which they work. He adds company stock should be limited to a modest percentage of the overall portfolio. Secondly, using a target-date fund as a core holding and adding additional stocks for a more aggressive portfolio, or bonds to be more conservative, can provide adequate diversification, Ameriks says. Source: What's your personal finance IQ? By David Pitt, Associated Press, Copyright St. Petersburg Times, Sunday, April 3, 2011

SCORING SYSTEM 0-3: It's never too late to learn. But it's time to get started. 4-5: You show some progress, but how about picking up a few personal finance books or checking out some websites. 6-7: This is not bad, but could be better. With a little work you show promise. 8-9: Very good, you should be on solid financial footing. 10-11: Perfect! You have an exceptional wealth of personal finance knowledge. Source: What's your personal finance IQ? By David Pitt, Associated Press, Copyright St. Petersburg Times, Sunday, April 3, 2011

Financial Aid System Flawed!
A former U.S. secretary of education, Margaret Spellings called the financial aid system a "fundamentally flawed" system.

Financial Literacy & the Academy
Not surprisingly most educational institutions do not teach financial literacy and personal money and debt management competency. As a result we allow innocent financially inexperienced young adults to enter into student loan agreements without a clear understanding of the debt they are incurring or how to manage it. APTA – Member Benefit Education Finance Program / MEDebt Solutions

Why don’t colleges and universities do the same?
The U.S. Military mandates financial literacy for pretty much the same age cohort – Why Not colleges and universities? Since 2004 the Pentagon has mandated service members are required to take a course in basic personal finance as part of their early training, and additional instruction is available online or in classes at major installations. The services also encourage enlisted personnel to have military lawyer review contracts before signing them, a free benefit. Why don’t colleges and universities do the same?

Education debt unsustainable?
Patrick Callan, president of the National Center for Public Policy and Higher Education stated, “The level of debt we’re asking people to undertake is unsustainable.” Article: The New York Times, October 21, 2009 – College Costs Are on Rise, As Is Concern About Effect by Tamar Lewin MEDebt Solutions - Informed Solutions For Student Loans, Debt, Money & Beyond

Student Loan Debt Grows
Some education policy experts say the mounting debt has broad implications for the current generation of students. Susan Dynarski, a professor of education and public policy at the University of Michigan, said student debt could generally be seen as a sensible investment in a lifetime of higher earnings. In some circles, student debt is known as the anti-dowry. As the transition from adolescence to adulthood is being delayed, with young people taking longer to marry, buy a home and have children, large student loans can slow the process further. Source: Burden of College Loans on Graduates Grows, By Tamar Lewin, New York Times, April 11, 2011

Student loan debt outpaced credit card debt for the first time in As recently as 2000, student debt stood at less than $200 billion, barely registering as a factor in overall household debt. Source: Burden of College Loans on Graduates Grows, By Tamar Lewin, New York Times, April 11, 2011

Student loan debt now amounts to over $1.17 trillion. Student loan debt has grown 25% since 2008, according to FindAid.org. "Students who borrow too much end up delaying life-cycle events such as buying a car, buying a home, getting married (and) having children," says Mark Kantrowitz, publisher of FinAid.org. Source: PolicyMicNYU's Andrew Ross Tackles Student Loans at Occupy Wall Street -

What does one TRILLION dollars look like?
We'll start with a $100 dollar bill. Currently the largest U.S. denomination in general circulation. Most everyone has seen them, slighty fewer have owned them. Guaranteed to make friends wherever they go. Source: PageTutor.com -

A packet of one hundred $100 bills contains $10,000
A packet of one hundred $100 bills is less than 1/2" thick and contains $10,000. Fits in your pocket easily and is more than enough for week or two of shamefully decadent fun. Source: PageTutor.com -

$1 million dollars This next little pile is $1 million dollars (100 packets of $10,000). You could stuff that into a grocery bag and walk around with it. Source: PageTutor.com -

$100 million While a measly $1 million looked a little unimpressive, $100 million is a little more respectable. It fits neatly on a standard pallet... Source: PageTutor.com -

$1 BILLION dollars And $1 BILLION dollars... now we're really getting somewhere... Source: PageTutor.com -

ONE TRILLION dollars Next we'll look at ONE TRILLION dollars. This is that number we've been hearing so much about. What is a trillion dollars? Well, it's a million million. It's a thousand billion. It's a one followed by 12 zeros. $1,000,000,000,000

Source: PageTutor.com - http://www.pagetutor.com/trillion/index.html

Understanding Student Loans
Student loans are unique forms of debt. Student loans are very different than consumer revolving and installment loans. Student loans have more and different nuisances, complexities and regulations that have changed several times within the last decade. Education debt has now also been made more complicated by the national and global financial and credit crisis.

Student loans are a unique form of debt
Education debt is unlike other debt in that excessive amounts of loan money is available to pay for higher education to almost everyone and anyone enrolled in post secondary education and it only requires demonstrated “financial need.” - Just complete a FAFSA! To receive student loans you do not have to demonstrate “financial affordability” - the ability to repay the loan; a job, proof of income, collateral, credit history, credit score or an acceptable debt-to-income ratio. It is important that students and graduates understand and know how to evaluate and assess the risk of their debt and develop informed money management plans, skills, behaviors and habits in order to repay the debt. If you do not understand and have a plan for your student loans…….

Congratulations!!

Too Much Debt? Too much debt is where the borrower is over-leveraged and payments cannot be reasonably made when due and borrower's goals, ambitions and perceptions are altered based upon money issues and concerns. It is unfortunate and shameful that the financial aid and student loan process, including the institutions, student and graduate's financial naiveté and student schedules and pressures do not make it possible for students to recognize, calculate and comprehend the critical importance of understanding and managing money and debt, particularly in the early years of their education and independent adult professional lives.

Too Much Debt? Another important measure of too much debt is any level of debt that changes your perspective, goals and influences choices based upon the amount of debt you are responsible for repaying. Most students and graduates do not want to be in a position where their personal and professional choices are determined or highly influenced by a salary and/or specialty choice. With an informed debt and money management plan which minimizes debt and emphasizes living within and below your means even those who still find themselves highly indebted and overleveraged can in a relatively short time become financially stable and secure – but the process must begin immediately

If you must borrow If you must borrow most of the cost of your education, borrow only what you absolutely need; basic not lifestyle. “Don't forget you're poor!" If loans make it possible for you to attend school, you need to remember that “Your life is a ‘Financial Illusion’ and that in reality you're broke.” Because you're broke, you should act like you’re broke and not spend and act like it's all paid for from lottery winnings. APTA – Member Benefit Education Finance Program

If you must borrow - be informed! – Know..
how much you have borrowed? your lender(s)? your interest rate(s)? your payment amounts? how much will you payback in total (principle + interest)? what are your payment options? what are your payment amounts? financial experts and consult with them before choosing/accepting loans and repayment option? how much is too much debt for you? how to determine “too much”? how much will you earn and have available to make loan payments? what percentage of your earnings will be devoted to student loan payments? MEDebt Solutions/EAS Group

Federal Loans Repayment Options Stress Test * Combined Consolidation
Lender Name Student Loan Loan Balance Interest Rate Direct Federal Direct Stafford Loans $ 26,000 6.8 % $ 28,000 Subtotals $ 80,000 Based on a $60,000 annual gross salary. Standard Plan Monthly Payment Total Interest Interest Rate Repayment Plan # Years $ 299 $ 9,905 6.8 % 10 Years $ 322 $ 10,667 $ 921 $ 30,477 *18.42% Extended Repayment Monthly Payment Total Interest Interest Rate Repayment Plan # Years $ 180 $ 28,138 6.8 % 25 Years $ 194 $ 30,302 $ 555 $ 86,577 Combined Consolidation Monthly Payment Total Interest Repayment Plan # Years $ 526 $ 109,195 30 Years 6.875% *10.52% *11.10% *Student loan payments are considered manageable when kept to no more than 12% of gross monthly income.

Federal Loans Repayment Options Stress Test * Combined Consolidation
Lender Name Student Loan Loan Balance Interest Rate Direct Federal Direct Stafford Loans $ 35,000 6.8 % Subtotals $ 105,000 Based on a $60,000 annual gross salary. Standard Plan Monthly Payment Total Interest Interest Rate Repayment Plan # Years $ 403 $ 13,334 6.8 % 10 Years $ 1,208 $ 40,001 *24.16% Extended Repayment Monthly Payment Total Interest Interest Rate Repayment Plan # Years $ 243 $ 37,878 6.8 % 25 Years $ 729 $ 113,633 Combined Consolidation Monthly Payment Total Interest Repayment Plan # Years $ 690 $ 143,319 30 Years 6.875% *13.80% *14.58% *Student loan payments are considered manageable when kept to no more than 12% of gross monthly income.

PT Education debt is often misunderstood & mismanaged
PT education debt is harmful because of what is most often said and believed about it – “it’s too much!” Such thoughts are a dangerous distraction which obfuscates the real issues; “ financial literacy and affordability”. Now this is not to say that the cost of a PTA, PT, DPT education and the amount of debt being assumed by students is not problematic and requires reform, it does. Schools need to be held more accountable and transparent in their pricing and fulfillment of their social contracts and students need to be more proactive in understanding and taking responsibility for their finances.

Whose to blame? Undergraduate and graduate school borrowers too often are not required to become financially literate. Undergraduate and graduate school borrowers too often are not provided access to personal finance counseling/coaching, education, tools and information they need to assess affordability so as to be able to proficiently manage debt and money to avoid repayment problems and pursue goals. Students need to be financially educated or given access to financial experts so that they can intelligently assess the affordability and formulate an informed repayment strategy/plan for the debt they take on in order to finance their education.

Whose to blame? Higher education has never been more expensive than it is today. “The College Board projects that in 15 years, the cost of a four year college education at a private university will approach $400,000.” Today the cost of higher education creates a necessary evil barrier to increased earnings. The price of attending a public university doubled, after inflation, over the last two decades, and family income and student financial aid have not kept pace. In the last 25 years, the cost of a college degree at both public and private institutions has risen 440 percent; that is a 17.6 percent per year average increase. Source: College Board, "Average Published Tuition and Fees in Constant (2008) Dollars, to ," Trends in College Pricing, available at:

Whose to blame? Just 10 years ago the cost of a four-year public college education amounted to 18% of the annual income of middle-income families. Annual college tuition and fees now amount to an average of 25 percent of a family’s income. In 1993, overall, only 32 percent of undergraduates borrowed to attend college. As recently as the mid-1990s, borrowing was the exception. Now it’s the rule. As a result, students have no choice but to borrow more. Source: College Board, "Average Published Tuition and Fees in Constant (2008) Dollars, to ," Trends in College Pricing, available at:

Whose to blame? College students and families are borrowing more money than ever before. Ten percent of students who graduated from four-year colleges and universities in 2008 owed at least $40,000 in student loans, up from 3% in 1996 (in constant 2008 dollars). That represents a nine-fold increase in the number of graduates with high debt, from 23,000 in 1996 to 206,000 in 2010. College students are also taking on more of the riskiest debt: unregulated private student loans. Source: High Hopes, Big Debts (Class of 2008) (May 2010) The Project on Student Debt.

Whose to blame? Students need to understand and utilize repayment options—such as forbearance, deferral, income-based repayment, and public service loan forgivingness—to avoid delinquency/default and meet their goals. NEITHER THE EDUCATION SYSTEM OR THE FINANCIAL AID OR LENDING SYSTEM PROVIDE THE TOOLS, ACCESS TO EXPERT INFORMATION OR INCENTIVES FOR STUDENTS/GRADUATES TO MAKE FINANCIALLY PROFICIENT INFORMED DECISIONS.

Student loan repayment is a serious problem
Huge numbers of student borrowers struggle to pay back their federal student loans.

Protected while enrolled – Naked once you graduate
Students while enrolled in school are somewhat protected in that payments are generally not required. However, once you graduate (or become less than a half-time student) the clock starts and payments become due and the quality of your future is dependent upon knowing your options; precisely what to do (budget, spend & save) and how to do it. It is very important to understand and establish financially proficient strategies, tactics, behaviors and habits that will support and enhance your uniquely individual goals.

Default rate higher than reported
The default rate is much higher than the government leads us to believe. Officially, the default rate on federally insured loans is running at 7 percent, up 55 percent from its low in But this only measures the loans that went into default during their first two years. It doesn’t count loans whose payments are being deferred for one reason or another — for example, financial hardship. Many of those borrowers will default as soon as payments come due again. Source: Jane Bryant Quinn,7 Things They Don’t Tell You About Student Loans - MEDebt Solutions - Informed Solutions For Student Loans, Debt, Money & Beyond

EVIDENCE The recent sobering report by the Institute for Higher Education Policy, "Delinquency: The Untold Story of Student Loan Borrowing” which focused on the nearly 1.8 million student loan borrowers who entered repayment in 2005 during their first five years of repayment, found that the low default rates as publicly reported paint an incomplete picture of the severity of the impact of student loan debt because they exclude borrowers who have difficulty repaying their loans but avoid default. Since the study did not include private student loans, it’s most likely the situation is even more horrendous and the magnitude of the problem is vastly understated.

EVIDENCE A majority of students (56%) struggle to repay their loans
The report revealed: A majority of students (56%) struggle to repay their loans Overall, the study found that of the 56% who struggled to repay, an incredible 41% of these borrowers became delinquent or defaulted. More than a quarter, 26 percent, became delinquent but did not default. About 15 percent became delinquent and defaulted.

EVIDENCE The report revealed: 16 percent of the borrowers used deferment and forbearance to postpone their payments and avoid delinquency. Another 7 percent entered into deferment because they re-enrolled in school. Overall, only 37 percent of the borrowers in the study managed to repay their student loans throughout the study period without postponing payments or becoming delinquent.

Default You are in default on most student loans if you fail to make even one loan payment or make alternative arrangements for your loan payment in over 270 days—that’s almost 9 months! The entire loan balance becomes due once you default. Many would say that there is no excuse for loan default because the student loan have so many alternative choices available. If repayment options/choices and strategies are not known, emphasized and understood by the borrowers or the borrowers do not have access to the necessary expertise to counsel them then the alternative choices may as well not exist.

Consequences of Default & Delinquency
The government and collection agencies can beat you with tactics not allowed for other types of loans - tools unavailable to the collection of other kinds of unsecured consumer debts. For example, the federal government can suspend payments or participation from other federal payment programs; they can seize tax refunds, garnish up to 15 percent of your disposable income, and seize part of your Social Security or disability payments if you receive more than $750 a month — all without getting a court order. Defaulted loans when turned over to collection agencies, the liability for collection and court costs are added – as much as an additional 25% or more. Many private lenders can go after a borrower's estate upon their death. Source: Jane Bryant Quinn,7 Things They Don’t Tell You About Student Loans -

Many states can also cancel your professional licenses, such as those for teachers, lawyers, and healthcare workers, making it impossible for you to find the work you’re trained for. On federal loans, you can be dunned until you die. States limit the period of time that private lenders have to sue, but once they get judgments they can come after you for years. One reader, a grandmother of six, tells me she is still being harassed. Lenders almost never negotiate a reduced payoff. Source: Jane Bryant Quinn,7 Things They Don’t Tell You About Student Loans -

Debtors can shed credit card debt and other unsecured obligations through bankruptcy but can get out of student loans only if they can show “undue hardship.” That term is not defined by the bankruptcy code and, lawyers have said, judges often take a narrow view of its meaning. “The cases are so harsh in measuring what an undue hardship is that anybody who is working and maintaining any kind of home life has very little chance of discharging these things in bankruptcy,” said Cathleen Cooper Moran, a bankruptcy lawyer in Palo Alto, Calif. APTA – Member Benefit Education Finance Program

Default is costly Bankruptcy is virtually a non-existent option with the exception of filing for Chapter 13 which as a last resort puts a freeze on lender’s add-on and interest charges (which could easily add on 25% of the balance or more) but does not resolve the debt up to that point. Of the 72,000 federal student loan borrowers who filed for bankruptcy in 2008, just 29 succeeded in getting part or all of that debt discharged, according to the most recent data from the Education Credit Management Corporation.

Delinquency can lower borrowers' credit scores and their ability to obtain future loans, such as mortgages and auto loans, and the terms upon which those loans are offered; which makes everything that one buys on credit more expensive and lessens one’s ability to save for future goals.

Default is costly In essence what students and graduates don’t know and understand about managing educational and All debt (which is different from just making payments) is costly and destructive to the quality of personal and professional life and goals for the rest of their life.

Is a Physical Therapy Education
Worth the Money?

Is a Physical Therapy Education
Worth the Money? IT DEPENDS?

It depends Whether the student graduates.
Whether the student and graduate has the background, experience or expertise or access to such knowledge to thoroughly understand their unique debt and its enduring implications (assess risk and affordability).

Debt – Is a Physical Therapy Education Worth the Money?
It depends? It depends on your goals, what you know about finance & student loans, your tolerance for debt, the expertise and experience of the professionals who you work with, your attitude and discipline to live below your means and defer gratification in order to build you assets/net worth via saving and investing . MEDebt Solutions/EAS Group

It depends On your future goals and earnings.
On your understanding of your loans and how to manage and make payments of your loans which requires a working familiarity of economics, finance, financial strategies, financial planning, risk, money, the psychology of money, spending, saving and investing behavior and commitment as well as budgeting skills, money personality and the ability to mange income, credit and all other debt.

Financial literacy is needed
Isaac Bowers, a senior program manager for Educational Debt Relief and Outreach at Equal Justice Works wrote in an online U.S. News & World Reports article, Avoid Loan Delinquency and Default, commenting on the report wrote: A few lessons are clear: • Student loan servicers, guaranty agencies, financial aid offices, and other organizations should ensure student loan borrowers have the information and counseling they need to avoid repayment problems. • Students need to carefully consider the amount of debt they are able to take on in order to finance their education. They also need to understand and utilize repayment options—such as forbearance, deferral, income-based repayment, and public service loan forgivingness—to avoid delinquency and default. • We should all reconsider the effectiveness and the equity of relying on student loans to finance the cost of a higher education. Source:

The U.S. Military mandates financial literacy for pretty much the same age cohort – Why Not colleges and universities? Remember, since 2004 the Pentagon has mandated service members are required to take a course in basic personal finance as part of their early training, and additional instruction is available online or in classes at major installations. The services also encourage enlisted personnel to have military lawyer review contracts before signing them, a free benefit.

Financial Aid vs. Financial Planning
Managing debt, especially education debt is a complicated and confusing process. Financial aid and financial planning are two distinct areas of expertise which to date are seldom integrated into the education finance process or academic curriculum. But for young financially inexperienced and mal-informed professionals who are indifferent or overwhelmed by debt, recognizing how to begin righting one’s financial ship in an informed financially proficient manner can mean the difference between a successful career and life or a disappointing career and “Ugly Life.”

The Ugly Life As an old football coach described it:
“The Ugly Life is one where you feel that you have an: Ugly Job, Ugly Boss, Ugly Car, Ugly House, Ugly Furniture, Ugly Spouse, Ugly Children, Ugly Neighbors – every thing in your life looks and feels UGLY!”

ONE LESSON OF OUR CURRENT FINANCIAL CRISIS
UNINFORMED, ILL-CONCEIVED OR IMPROPERLY MANAGED DEBT HAS A NASTY TENDENCY TO BACKFIRE IN UNEXPECTED, PAINFUL AND UGLY WAYS.

This is what physical therapy students and graduates can expect life to be like if they do not understand and execute a plan which emphasizes the “core principles of financial proficiency” in assessing the affordability of their debt and management of future earning. The Ugly Life!

An Investment in Knowledge Pays the Best Interest!
- Benjamin Franklin

Time is the biggest lever in creating wealth!
It’s not the end of the world if you can’t save as much or invest as well as you want - as long as you save and invest longer. An early accumulation of funds is more important than interest rate and can be used to help finance some of your most important and expensive goals such as a home, a business/practice, retirement, kid’s education and philanthropic endeavors.

Time is the biggest lever in creating wealth but you need some good luck for good returns as well!
Save and invest diligently for 30 years, then cross your fingers and pray your investments will double over the last decade before you retire. The problem is that even if you do everything right and save at a respectable rate, you’re still relying on the market to push you to the finish line in the last decade before retirement. Why? Reaching your goal is highly dependent on the power of compounding — or the snowball effect, where your pile of money grows at a faster clip as more interest (or investment growth) grows on top of more interest. But if you’re dealt a bad set of returns during an extended period of time just before you retire or shortly thereafter, your plan could be thrown wildly off track Source: With Retirement Savings, It’s a Sprint to the Finish, The New York Times, January 21, 2011, Tara Siegel Bernard

Money is a finite resource
Money is a finite resource for each of us, different amounts but finite. By its very nature, we constantly make choices about our money and our choices determine our experiences in life. Informed choices makes for better experiences.

Median weekly earnings of the nation's full-time wage and salary workers
Median weekly earnings of the nation's million full-time wage and salary workers were $740 in the third quarter of 2010. $740 x 52 = $38,480 Source: Bureau of Labor Statistics - MEDebt Solutions/EAS Group

Source: Bureau of Labor Statistics, Department of Labor - www.bls.gov
PT Employment Trends 2008 – 2018 Total Employment: Outpatient Care Centers 2008: 29,000 2018: 43,000 Source: Bureau of Labor Statistics, Department of Labor -

What you need to cover basic expenses and save for retirement and emergencies - attaining economic stability According to a recent report, a single worker needs an income of $30,012 a year — or just above $14 an hour — to cover basic expenses and save for retirement and emergencies. That is close to three times the 2010 national poverty level of $10,830 for a single person, and nearly twice the federal minimum wage of $7.25 an hour. A single worker with two young children needs an annual income of $57,756, or just over $27 an hour, to attain economic stability, and a family with two working parents and two young children needs to earn $67,920 a year, or about $16 an hour per worker. That compares with the national poverty level of $22,050 for a family of four. The most recent data from the Census Bureau found that 14.3 percent of Americans were living below the poverty line in 2009. Source: Many Jobs Seen as Failing to Meet Basic Needs, March 31, 2011, The New York Times -

Source: Many Jobs Seen as Failing to Meet Basic Needs, March 31, 2011, The New York Times - The New York Times

National Salary Data – Physical Therapist Salary $ 49,207 - $80,508
Bonus $ $ 5,533 Profit Sharing $ $ 9,832 Total Pay $ 51,004 - $ 89,208 Source: PayScale.com Country: United States | Currency: USD | Updated: 8 Oct 2011 | Individuals Reporting: 7,158

Median Salary by Years of Experience DPT Degree
Less than 1 year 1 – 4 years 5 – 9 years 10 – 19 years 20 years or more $58,615 $61,541 $68,453 $74,252 $86,817 Country: United States | Currency: USD | Updated: 16 Oct 2011 | Individuals Reporting: 982 Source: PayScale.com Country: United States | Currency: USD | Updated: 23 Oct 2010 | Individuals Reporting: 4,186 MEDebt Solutions - Informed Solutions For Student Loans, Debt, Money & Beyond

Median Salary by Skill / Specialty (DPT) Degree
$64,161 $68,269 $60,420 $60,776 $72,279 $60,173 $63,000 $69,000 $60,463 $65,550 Orthopedics Physical Therapy Pediatrics Rehabilitation Geriatrics Acute Care Home Health/Home Care Leadership Neurophysiology Patient Education Country: United States | Currency: USD | Updated: 16 Oct 2011 | Individuals Reporting: 321 Source: PayScale.com Source: PayScale.com

Employees with a Doctor of Physical Therapy (DPT) Degree
Median Salary by City City New York, New York $66,069 Pittsburgh, Pennsylvania $54,452 Philadelphia, Pennsylvania $63,081 Chicago, Illinois $64,694 Atlanta, Georgia $63,279 Seattle, Washington $62,315 Phoenix, Arizona $64,546 Country: United States | Currency: USD | Updated: 16 Oct 2011 | Individuals Reporting: 955 Source: PayScale.com

Median Salary by Gender (PT) Jobs
Females: $55,693 - $69,626 Males: $56,578 - $72,580 Mid-Points: Females: $62,659 Males: $64,579 Male Advantage = $ 1,920 3% over 30 years = $ 93,238 Source: PayScale.com APTA – Member Benefit Education Finance Program

Understanding The Gender Gap
A study found that men and women who recently earned a master’s degree in business negotiated similar salaries when they had clear information about how much to ask for. But in industries where salary standards were ambiguous, women accepted pay that was 10 percent lower, on average, than men. Source: The New York Times – Your Money, A Toolkit For Women Seeking A Raise, Tara Siegel Bernard, May 15, 2010

“In our experiments, we found that with ambiguous information, women set less ambitious goals,” said Ms. Riley Bowles, an associate professor at Harvard’s Kennedy School of Government who ran the study. “They asked for less in a competitive negotiation and got less.” That theory also holds in other areas where there aren’t set expectations, like executive bonuses and stock options. “You get bigger gender gaps in those less standard forms of pay,” she added. Source: The New York Times – Your Money, A Toolkit For Women Seeking A Raise, Tara Siegel Bernard, May 15, 2010

Experts say that many women, despite strides in education and in the workplace, simply aren’t as confident and knowledgeable about financial matters as men. “Research has shown that women, even professional women with good jobs and successful careers, tend to be less financially literate than men,” said Annamaria Lusardi, an economics professor at Dartmouth College. Not all women lack financial skills and many may simply lack time. But studies show that women don’t find money and investing as interesting as men. Source: The New York Times – Your Money, Hot Topic for Women: Our Budgets, Ourselves, Tara Siegel Bernard, April 24, 2010

According to a 2007 study on gender differences by Tahira Hira of Iowa State and Cazilia Loibl of Ohio State University, women are still less likely to be socialized in financial matters, and they are more likely than men to find investment decisions stressful, difficult and time consuming. The study also found that it often takes a life event, like getting married, to prompt women to save and invest, whereas men were more likely to start investing gradually. Source: The New York Times – Your Money, Hot Topic for Women: Our Budgets, Ourselves, Tara Siegel Bernard, April 24, 2010 MEDebt Solutions/EAS Group

Women also prefer to learn about money in person or in groups with others in their situation, as opposed to curling up with a book. While women may be less likely to enjoy investing, studies show that they may inherently be better investors than men. Females are less prone to risky behavior and unlike their confident male counterparts, they’re more likely to fess up to their own ignorance. “One reason that women might be better financial decision makers, despite displaying, in general, lower literacy than men, is that women know what they do not know,” said Professor Lusardi, director of the Rand Financial Literacy Center. Source: The New York Times – Your Money, Hot Topic for Women: Our Budgets, Ourselves, Tara Siegel Bernard, April 24, 2010

Understanding The Gender Gap – 50% decrease in income
“On average, women experience a 50 percent decrease in income upon becoming widowed and only a 20 percent decrease in expenses.” Maureen Mohyde, Director of Corporate Gerontology, Hartford Financial Services Group MEDebt Solutions/EAS Group

Understanding The Gender Gap – the data
According to the National Center for Women and Retirement Research, as many as 9 out of 10 women will be solely responsible for their finances at some point in their lives. The cosequences of such circumstances can financially cripple many women. The numbers speak for themselves: Over 75% of women are widowed at an average age of 56, and 1 in 4 of these women are broke within two months of being widowed. Source: Women and Investing: Take Charge of Your Financial Life, Kathleen Williams, August 2, 2009, Women’s Media -

Understanding The Gender Gap – the data
Less than 15% of women who are married or living with a significant other feel responsible for planning retirement. Only 41% of women participate in their employer’s 401(k) plan. 87% of poverty stricken elderly Americans are women. Source: Women and Investing: Take Charge of Your Financial Life, Kathleen Williams, August 2, 2009, Women’s Media -

Understanding The Gender Gap – some money moves for women
Some money moves women can make: Get involve in managing the family’s finances. As a couple, spend about 15 – 30 minutes per week discussing the family finances. Make this a regular routine. Understand what is going on with the investments. Review all bank and investments statements monthly. Know where your money is. Keep organized records. Be sure to have your own retirement account. Women often do not have their own retirement accounts. Stay-at-home mothers frequently use all of the household money for the children and food. Nothing is put into retirement plans for these women. Meanwhile, the husband’s account is racking up the dough. Then they divorce. Don’t let this happen to you. Get professional financial advice. Be sure to get financial advice before you suddenly become single because of divorce or widowhood. This will make your financial road smoother and will prepare you prior to these life events. Source: Investing Wisely: What Women Need to Know, Kathleen Williams, 24 April 2011 ,

Plan your financial life as if you will be on your own someday. Unfortunately the statistics are real. Half of all marriages end in divorce. Women outlive men by seven years. Plan your life with this in mind. Manage your finances together, have separate credit cards in your name. Make sure that your name appears on all investment accounts accumulated during the marriage. Get adequate term life insurance coverage that will cover all last expenses and replace at least 60% of joint earnings. Source: Investing Wisely: What Women Need to Know, Kathleen Williams, 24 April 2011 ,

Don’t use your 401(k) as an in-and-out fund. Many women use their retirement accounts to rescue their families from tight financial jams. This account should be used for retirement, not as an emergency or vacation fund. Establish a money market account for emergencies and leave your retirement funds for what they are meant to be used for – your retirement. Write down your financial goals. Sit down and make a list of all your financial goals. Knowing what you want helps to put you on the road to finacial success. Whether it’s learning to make wise investments, or planning for retirement, you have to know what you want in order to plan how to achieve it. The Certified Financial Planner Board of Standards Research has found that consumers who use professional financial advisors worry less about their financial futures. Source: Investing Wisely: What Women Need to Know, Kathleen Williams, 24 April 2011 ,

A study from the Hartford Financial Services Group and the MIT AgeLab found that couples who divide up financials tasks, where one spouse handles day-to-day bill paying and the other investment management, fare better, being more likely to have more savings and to develop a financial plan for the surviving spouse than those who hand over the financial reins to one person while the other takes a back seat. MEDebt Solutions/EAS Group

The Gender Gap Explained
Part of the pay gap can be easily explained away. Women are more likely to leave the work force to care for children, for example, so they end up with fewer years of experience. Men also tend to work in higher-paying occupations and industries. “But what you find is that when you pull out all of those factors, you still have about 40 percent of the wage gap — or 9.2 cents — unexplained,” said Ariane Hegewisch, a study director at the Institute for Women’s Policy Research. Academic research on gender and negotiation suggests that part of the unexplained gap may be tied, at least in part, to the negotiating process itself. It may be that some women have lower pay expectations. Men, on the other hand, have been found to be more likely to negotiate higher starting salaries. Source: The New York Times – Your Money, A Toolkit For Women Seeking A Raise, Tara Siegel Bernard, May 15, 2010

Girls and women are taught to be more communal and focus on the needs of the group, while boys and men are encouraged to be more self-promoting and look after their own needs and interests. For example, girls are asked to help look after younger siblings and do housework, which is for the greater good of the family. Meanwhile, boys are asked to do singular tasks like shovel the walk or mow the lawn, which requires setting a specific goal and accomplishing it. Parent are more likely to pay for those chores done by boys as opposed to those more commonly done by girls. Source: The St. Petersburg Times – Low pay plagues women, Emma Johnson – Rtailmenot.com, November 2,2011.

Women are heavily socialized to protect relationships. They worry that if the economy is bad, their boss can’t afford to pay more or they worry that the meat of the negotiations for salary reflects a conflict between the negotiators – just business. Studies show that there is a gender difference when it comes to what is perceived as acceptable behavior when it comes to negotiations for more money. Women do get more push-back than men when it comes to negotiations for money. Neither men nor women like what they consider to be aggressive behavior in a woman, and negotiating by a woman is perceived by many of both sexes as aggressive behavior. For a woman to be influential and persuasive, she has to be likable. Source: The St. Petersburg Times – Low pay plagues women, Emma Johnson – Rtailmenot.com, November 2,2011.

It has been recommended that women use their social skills and go a little easier on the interpersonal dynamics to make the negotiating experience more pleasant for everyone and come out with a relationship that is enhanced rather than strained. Recent research shows that win-win and collaborative agreements have better outcomes for both sides, rather than the old zero-sum approach. The problem is that a lot of people in the very senior positions are old guys with the devil-take-the-high-most approach who don’t even notice they are bullying people and damaging relationships. Source: The St. Petersburg Times – Low pay plagues women, Emma Johnson – Rtailmenot.com, November 2,2011.

When asking for a raise be prepared with data, like compensation information from Salary.com or a professional organization. But start with a compliment like, “I love working here, this is a great company and I feel I’m contributing more than when I was hired, thanks to how much I’ve grown under your guidance. I hop my compensation can reflect what I bring to the job right now.” Then reference what others in your position are getting or, better yet, what your firm’s competitors pay. You must value yourself before others value you. In our society there is the perception that things that cost more money are more valuable, even if that is not always true. Source: The St. Petersburg Times – Low pay plagues women, Emma Johnson – Rtailmenot.com, November 2,2011.

Tools To Help Fix The Gender Gap
Women need to be prepared. Informational Web sites like Payscale.com and Salary.com can help uncover what people are being paid for a particular position in your geographic area. And Glassdoor.com and Vault.com provide intelligence on pay inside a company — employees share their salaries online. Part of your preparation may also include talking to peers. But remember that women tend to be less connected to male networks in the workplace and are more likely to compare themselves to people they think are similar, Ms. Riley Bowles said. That means they may be comparing their salaries with other women. “If a woman asks her girlfriends how much they are paid and a guy asks his guy friends, Jane and Jim will come up with different numbers,” Ms. Riley Bowles added. Source: The New York Times – Your Money, A Toolkit For Women Seeking A Raise, Tara Siegel Bernard, May 15, 2010

Money & Debt Money and debt are “Tools” to be used to accomplish things - build wealth and support goals, not merely to buy things. Like any tool you must hone your skills, practice and take control/action if the tools are to work for you and become productive, efficient and effective! MEDebt Solutions/EAS Group

Money is an intense personal issue, often difficult to acknowledge and usually unspoken – the last taboo. We all see money in the relative, relative to our own money experiences, rather than standard measures. People, most students and many professionals, who feel they should know about money but don’t, find it less embarrassing not dealing with the issue. APTA – Member Benefit Education Finance Program

Money is never just about money.
Money and our relationship with money is an emotional issue. Money and our relationship with money are about power, dependency, control, communication, conflict, resolution, status, ego, comfort, security, fantasy, escape, anxiety and freedom. Money is even about happiness. Money cannot buy happiness, but it plays a critical role.

Money & Debt Aptitude + Attitude = Success!
The rich know that wealth, economic security, financial stability, assets and most financial obligations are build on the savvy use of “good” debt, debt which is leveraged, hedged and manageable when given access to favorable rates. Good debt is the informed intelligent use of OPM (Other People’s Money) at favorable rates to buy value at today’s prices and pay with tomorrow’s dollars.

Create A Personal Money Success Plan
Don’t kid yourself; no plan to achieve success will work until you refine the way you think about, act with and manage money and debt. MEDebt Solutions - Informed Solutions For Student Loans, Debt, Money & Beyond

Hint: It’s about financial aid!
Higher Education’s Dirty Little Secrets? Hint: It’s about financial aid! MEDebt Solutions/EAS Group

Dirty little secrets “It’s too easy for students to borrow the maximum loan amount and too many students treat their financial aid like lottery winnings”

Andy Winchell, Bankruptcy Lawyer, Summit, N.J.
Financial Aid’s Dirty Little Secret “Student loans debt is liken to tattoos: They’re easy to get and people tend to get them when they're young, and they’re awfully hard to get rid of.” Andy Winchell, Bankruptcy Lawyer, Summit, N.J. MEDebt Solutions/EAS Group

Dirty little secrets Too many students think a job will make all their financial problems disappear. They're wrong. Too many students have an unrealistic idea of how much money they'll make when they enter the work force. Too many students forget that a healthy percentage of their pay will be taken out for taxes, health insurance, Medicare, Social Security and other deductions. Too many students let their loans become an afterthought with no idea of how much they borrowed and how they are going to pay it back. An overpriced degree or no degree can be financial suicide. APTA – Member Benefit Education Finance Program

Dirty little secrets Schools have insufficient incentive to keep the cost of education down thus with increasing cost comes increasing levels of borrowing. Without institutional or government intervention student unknowingly become responsible for figuring out whether they can afford their student loans. APTA – Member Benefit Education Finance Program

Dirty little secrets “ At the time that people graduate from school, almost every student who borrows, although technically unlikely not able by regulation, is literally bankrupt because they have liabilities that exceed their assets.” Shelly Repp, general counsel at the National Council for Higher Education Loan Programs MEDebt Solutions/EAS Group

Debt is uniquely personal
Because each individual presents a financial situation that is uniquely personal (levels of debt, other debt, committed financial obligations, financial assets and liabilities, money IQ, goals, career plans, personal plans, tolerance for debt, money personality), every financial plan must be personalized. In the case of personal financial planning and money management, one size does not fit all; each person must be comprehensively reviewed, evaluated and assessed. There are many pieces of each student’s and graduate’s financial puzzle that may look alike in general but there is only one YOU; and the plan must be specific to a level of debt, income and goals. MEDebt Solutions - Informed Solutions For Student Loans, Debt, Money & Beyond

Dirty little secrets Unless you are one of the very fortunate grads who will complete your PT education debt free or with minimum debt – You will join one of the fastest growing groups in America – financial disabled young adults, with Negative Net Worth who are Virtually Bankrupt and don’t know it.

To properly manage your debt you need
To earn your degree and GRADUATE! Your degree is the tool which allows you to earn more money and thus reasonably manage more debt without creating a personal financial imbalance where you are overleveraged (borrowed too much money and cannot make payments on the debt ) with declining net worth where your liabilities are growing faster than your assets. MEDebt Solutions - Informed Solutions For Student Loans, Debt, Money & Beyond

To properly manage your debt you need
An in-depth grasp and/or access to experienced professionals with expertise in economics, finance, financial strategies, financial planning, risk, the psychology of money, spending, saving, investing as well as federal and private student loans, credit and debt are all critical ingredients to success and in a huge degree, personal and professional significance and happiness. MEDebt Solutions - Informed Solutions For Student Loans, Debt, Money & Beyond

Have a plan and be informed
To protect the value of your education investment you must keep your student loan debt manageable. To keep your student loan debt manageable you must comprehensively understand your situation, in detail, preferably before you agree to it. This seldom happens. Don’t be insulated from your loans; know what you are borrowing: (type of loan, name of loan, amounts, interest rates, terms, repayment options) and what resources and options you will have to manage your loans. MEDebt Solutions - Informed Solutions For Student Loans, Debt, Money & Beyond

Your first defense against unmanageable debt is having a plan – a comprehensive financially informed plan which is in harmony with your goals, incorporates living within your means, preferably below your means and emphasizes saving and investing that begins no later than with the first post-grad pay check; Your plan begins with a clear articulation of your goals and an informed counseled understanding/assessment of affordability – not needs as with financial aid or wants.

Your plan must include an affordability assessment which will give you guidance in knowing the future implications of borrowing, how much you should or are willing to borrow, what sort of payback your borrowing will entail, and just how little or how much your expenses will be covered after saving/investing. Do you know what your monthly payments will be for your student loans? Do you know what your monthly income will be and what percentage of it will be required for loan repayment?

Uninformed decisions Intuitive financial decisions for virtually all indebted professional school students and graduates, makes you vulnerable to life-long financial stress and instability because uninformed financial decisions severely lessen the value of the degree by reducing the amount of earnings you get to keep and use as you would like and need over a 30 year or more career. As such, new graduate’s precious and limited money is most often being used inefficiently and ineffectively.

If you choose not to read the directions…
Failure to comprehend the financial reality of your debt and not understanding and taking control of your debt and money by having an informed plan to manage your debt and money is a near certain plan for personal and professional hardship, disappointment, anguish, unhappiness, failure, bankruptcy or being eternally on the precipice of financial catastrophe; just one paycheck, one illness, a disability or a divorce away .

Failure to comprehend debt
MEDebt Solutions - Informed Solutions For Student Loans, Debt, Money & Beyond

Core Principles of Personal Finance
Savings is at the center of the core principles of personal financial proficiency and for most it’s often the toughest task. No personal finance plan, no investment strategy, no path to self-growth can work without internal commitment from yourself and it may be painful because it usually requires change to some element of our behavior, and as human beings we are creatures of routine - we don’t like to change our behavior. Without changing the way you act today, you can never change the life you’ll have tomorrow If you do not adapt core principle changes you will not achieve the financial success and stability you deserve.

make debt and money management a priority. commit to the core principles of personal finance; spending less than you earn, being mindful of your spending and do not take on or at least minimize new debt for 5 – 7 years, preferable 10-years post your first “real” salary paying job, understand and improve your credit, understand the power of compounding interest and saving/investing for the future. organize and understand your debt. organize and read your promissory notes so as to understand your debt. understand the difference between making “student loan payments” and “managing your debt.”

seek and consult informed experienced professional financial counsel and advise who are knowledgeable in both “student loans” and “financial planning” to help you understand and make personalized informed decision about your “student loan repayment” and “debt management” options. improve your financial and economic IQ. live within and preferably below your means.

commit to building your assets and net worth. immediately start to establish emergency fund savings representing at least 3 – 6 months of expenses (add an additional 3 months for every dependent) in a federally insured account for graduates and at least $500 for students. for graduates make saving and investing a priority with an ultimate goal of saving/investing 15% - 20% of household income.

for students in addition to a $500 emergency fund strive to set aside/save at least 5%/year of the financial aid money remaining after all education expenses which are paid directly to the college/university (tuition, fee) and books have been paid. for example financial aid totals $45,000 per year. Tuition, fees and books total $35,000 leaving a balance of $10,000. You should save $500/year ($10,000 x 0.05 = $500). over the course of 3-years you would have at least $1,500 to use toward meeting those expenses associated with graduation, licensing, employment and relocation. as a student if you are paying your expenses from borrowed money if it can wait until you earn a paycheck don’t buy it.

as a student, if you are receiving student loans do not add any debt that is not directly associated with the completion of your education/degree. minimize adding any additional debt following graduation and through the early practice years (5 – 10 years). as a graduate preferably do not add any additional “bad debt” at any time but especially following graduation and the early practice years. preferably do not take on any new debt until financially prudent (when you can pay in full or make a substantial down payment) during your early income earning years your money is more valuable left in your savings and investments – remember compounding! monitor and work to improve your credit profile and score.

spend, save, borrow, budget, work, eat, exercise, sleep, live life abundantly and invest diligently and intelligently

Financially Proficient Best Practices – Ways to Never Run Out of Money
Set short, medium-and long-term spending goals. For the best results as soon as possible boost your retirement deferrals from the typical initial 3% to at least 10% with a goal of 15% - 20%. Prioritize retirement over college for the kids. Among pre-retirees who had consulted a financial planner within the 12 months ending in October 2010, 67% reported gains in their retirement accounts during that period. Those who hadn’t met with their planner recently, 59 percent saw investment gains and 57% with no planner experienced gains as well. Saving more money and investing more in retirement accounts had the greatest payoff during the period, planner or no planner. Perseverance – Those who continuously contributed to their retirement plans doubled their average account balance in the 10 years ending the third quarter of 2010, which included the financial fiasco of 2008 and 2009.

Take advantage of a Roth IRA. If you are single and under 50, and your modified adjusted gross income is less than $122,000 (less than $179,000 for couples filing jointly), you can put up to $5,000 of after-tax income into a Roth IRA and avoid any additional federal tax on that money and its gains if you have the account for five years and wait until age 59 1/2 to begin taking it out.

Diversity your holdings. Having a variety of investments-stocks, bonds, and real estate, among others-correlated highly with net worth regardless of income. Retirees with seven or more types of investments had an average net worth of $1.4 million. Those with three of fewer had an average net work of $678,000.

You should periodically assess your asset allocation – how your money is divided among stocks, bonds, and cash and regularly rebalance. As you age, you might want to move more of your assets into less-risky investments. John Bogle, founder of Vanguard advises that the percentage of your portfolio allocated to bonds and cash should equal your age. Pay off debt. Accelerate payments on your mortgage with an eye toward paying it off by retirement. This might seem counterintuitive, but you do not want to be in a position that just as you are ready for retirement, you are stuck with losing investments and a mortgage still to be paid. This can also be accomplished by investing in a fund established expressly to be used to pay off your mortgage. In this way you allow compounding interest to work for you. You may consider putting extra money into the market up to years prior to retirement where you then move it to a secure investment to preserve principal. However Consumer Reports survey found a correlation between satisfaction in retirement and lack of significant debt. In addition it found an alarming 39% of retirees still had at least $25,000 in mortgage debt.

If you think you will have more than $2 million, you can probably afford to pay for your own care, if needed. Those in between might want to consider a long-term-care insurance policy, though be aware that those polices are expensive and complicated. Each year that you delay your Social Security payment benefits currently up to age 70, earns you up to 8% more in income depending on your age. Budget for health-care costs. Fidelity Investments found that the typical couple retiring in 2010 would incur $250,000 in healthcare costs during their retirement years, outside of their Medicare benefits. This figure does not take into account the cost of long-term care. If you expect your assets in retirement to be under $300,000 (not including your home), you probably can’t afford long-term-care insurance, though you might qualify for government help should you need long-term care.

Tread carefully with annuities. Among the possible concerns: high management fees, stiff sales commissions, and the potential loss of cash value if you die prematurely. A new type of deferred annuity called longevity insurance holds some promise for those concerned they will live beyond their assets. Preserve your nest egg by withdrawing only 4% a year. Withdrawing 4% annually form your retirement funds has been shown to preserve your capital for at least 30 years in even strained economic environments, assuming you rebalance regularly. Hedge against inflation. To protect yourself in retirement, continue to invest a portion of your money in stocks and devote 5 to 10 percent of your money to TIPS (Treasury Inflation-Protected Securities) and I-Bonds. When Inflation heats up, TIPS grow in value, throwing off more income. I-Bonds pay both a fixed rate of return and a variable inflation rate. Interest on I-Bonds and TIPS are exempt from state and local income taxes. MEDebt Solutions/EAS Group

Work longer. Twenty two percent of Consumer Reports respondents worked part-time in retirement; 37 percent of that group said they need the income. More than half said working made them feel useful; 38 percent said they enjoyed work too much to give it up. Forty-five percent of semi-retired workers under 65 were already collecting Social Security benefits which are often not a wise choice for those below full retirement age. For every $2 you earn above $14,160, Social Security deducts $1 from your benefits. Once you reach full retirement age, you are entitled to all your benefits, regardless of how much you make. See ssa.gov/pub/10069.html for more information. Source: Consumer Reports, February 2011, 15 ways to never run out of money.

Pay attention to investment expenses. If two types of funds have the same return, you have to take the different costs into account. Index funds buy every stock in a particular market, say all stocks in the Standard & Poor’s 500-stock index. Active managers try to eke out a better return than index funds by buying, say, a subset of large United States stocks that they hope will outperform the collection of stocks in an index fund. Source: Why 401(k)’s Should Offer Index Funds, The New York Times, May 13, 2011, Ron Lieber.

For the 20-year period that ended in December 2010, 72 percent of actively managed mutual funds that invest in United States stocks (including those that closed during that time period) did worse than their benchmark index. In United States bond funds, the figure was 81 percent. International stock mutual funds showed similar results over a 15-year period. Some actively managed fund managers do outperform their benchmark index over long periods of time. But it’s awfully hard to figure out which ones will do so when they start funds, let alone which ones will continue to over your many decades of investing. Source: Why 401(k)’s Should Offer Index Funds, The New York Times, May 13, 2011, Ron Lieber.

One big reason index funds do better than actively managed ones is that they are much cheaper to run, since active managers spend a lot of money to conduct research and trade securities. So if cost is a consideration, index funds are usually the better choice. As for the risk of large losses, the lack of big bets on any single security gives index funds an advantage, too. “Wouldn’t you rather, as a plan sponsor, invest with someone who focused on decreasing costs and decreasing risks, which are two factors over which they actually have control?” said W. Scott Simon, a principal with the 401(k) consultant Prudent Investor Advisors. Source: Why 401(k)’s Should Offer Index Funds, The New York Times, May 13, 2011, Ron Lieber.

May 14, 2011 Source: Why 401(k)’s Should Offer Index Funds, The New York Times, May 13, 2011, Ron Lieber.

6 WAYS TO SAVE The nation’s personal savings rate was hovering at zero three years ago has risen to 5.5% (April 2011) according to the Federal Reserve Bank of St. Louis. Source: MEDebt Solutions/EAS Group

6 WAYS TO SAVE ROLL YOUR CHANGE - Watch the pennies, and the dollars will take care of themselves. American households have an estimate $10 billion in spare change stashed in jars and piggy banks, according to Coinstar. TRACK EVERY CENT – This helps to avoid status purchase-shared experiences bring more happiness than material goods. For free online tools to help track expenses and save money, check out Money Right at 3 . PAY CASH – Stash your credit and debt card and pay cash for purchases-you’ll spend up to 20 percent less, studies show. “Cash has a face value, so it feels more real, more transparent – there’s a little pain attached to parting with it” say Priya Raghubir of New York University’s Stern School of Business. “Credit cards, gift certificates and debit cards are like Moneoply Money.” MEDebt Solutions/EAS Group

6 WAYS TO SAVE 4. MATCH YOUR MONEY - A new nonprofit, SaveTogether, makes it easy to spread the message while helping others reach their financial goals. Using an online philanthropy model, SaveTogether helps low-wage individuals triple their savings through the power of matched savings accounts. A saver puts aside $25, a donor makes a secure, tax-deductible $25 donation on the website, which is then matched by $25 from government and participating nonprofits. Prescreened savers are profiled on the website and file reports on their progress saving for college, a new home or a business start-up. SaveTogether.org will soon include a map of local programs that sponsor Individual Development Accounts, matched savings accounts for the working poor. Last year, eight Michigan credit unions pooled resources to award a $100,000 grand prize and smaller monthly cash prizes in a savings raffle. For every $25 deposit, participants earn a chance to win, up to 10 times a month. Save to Win has been so successful, with 11,700 account holders putting away $8 million, that the program will continue this year. Prize-linked savings programs, which blend the thrill of a lottery with a traditional savings account, are popular in more than 20 countries, says Harvard Business School professor Peter Tufano, who helped design Save to Win. “The average American household already spends $514 a year on lottery tickets, and in poor families lottery tickets are the savings plan.”

6 WAYS TO SAVE 5. NO-SPENDING MONTH – Declare a month where you place a ban on restaurants, movies, even coffer shop lattes. Clean out the pantry and the freezer, buying only milk, fresh produce and some generic items – Economic Camping. You will find extra time because you are not running to the store. Instead of dining out, host potlucks, borrow movies from the library, or look for free activities like playing cards. No-spending month can save $2,000 to $3,000 and heightens appreciation for life without adding anything more. 6. GO AUTOMATIC - Pay yourself first by saving automatically on a regular basis, either through a workplace retirement plan or on your own. Have your bank or credit union transfer a modest amount every month or pay period. Set a goal of saving 15 cents of every dollar earned and pretend that the money doesn’t exist and live off the rest.

Changing Reality & Taking Control
Real change occurs most easily when there is an emotional connection made, a new relationship with someone or a group that inspires and reinforces that change. Source: Change or Die by Alan Deutschman

Learn More…. Form A Money Support Group (MSG) or Investment Club Research is fairly strong in noting that the people around you affect how you approach and value important decisions such as education, family and consumption; all determinates of the ability to manage money and create wealth. MONEY magazine research reported 64% of wealthy individual reported networking helped them succeed. To be successful in managing your money and debt, you will need to talk about it with your mate, friends and relatives or start your own Money Support Group/Network or Buddy system to continue your money management education. In addition, just by saying, “I/we are paying off our debt or keep my student loan debt to a minimum,” will evoke respect and empathy as well as take away any lingering “I am a doctor!” pressure to maintain a financial façade. Open discussion of your objectives also holds you accountable to others and more likely to fulfill your goals. MEDebt Solutions/EAS Group

Build Your Financial Team
Professional Financial Adviser/Planner Attorney Professional Accountant (CPA) Banker Professional Insurance Advisor MEDebt Solutions Advisor/Coach Financial Aid Professional while in school MEDebt Solutions/EAS Group

Credit Scores Credit scores are on a scale from around 300 to 850, with 850 being the highest credit score possible. The national average credit score is 692, only 13% of the nation's population has scores above 800. Roughly 15% of the population has a credit score lower than 550. In general, a good credit score is anything above 700. 58% of Americans have credit scores above 700. The national average is only 692 because the average is being pulled down by some very low credit scores. Source: 2011 Money-Zine.com -

Credit Score 499 or less – 2% of the population- Extremely Poor
Percentage of People in Range of Credit Score Rating: 499 or less – 2% of the population- Extremely Poor – 5% of the population - Poor – 8% of the population - Poor – 12% of the population - Good – 15% of the population - Very Good – 18% of the population - Great – 27% of the population - Excellent 800 or more – 13% of the population - Best Source: ComplexSearch.com -

How Credit Scores Affect Your Interest Rates
Not only does the credit score help a lender decide whether or not to approve your application for credit, but it also plays an important role in how much interest you pay on the money you borrow. The following is an example of how your FICO score might affect mortgage interest rates, but keep in mind each lender has it’s own credit tiers and interest rates. Credit Score Interest Rate : % % % % % % If a lender is offering their best rates to borrowers with a score of 760 or better, and your credit score is 758 – those two points can cost you thousands of dollars in interest over the life of the loan. Source: ComplexSearch.com -

How much a good FICO score can save you.
FICO Score APR Monthly Payments % $1,367 % $1,405 % $1,435 % $1,473 % $1,549 % $1,649 The difference between the lowest scores and top scores is $282/month, $3,384/year and $101,520 over the term of the loan. If deposited at 3.0% the balance would be $164,332; at 5.0% the balance would be $234,697; and at 7% after 30-years the balance would total $344,032. There is a $144/month, $1,728/year and $51,840 over the term of the loan difference between the second from the bottom score and second from the top score. The savings here if deposited at 3.0%, 5.0% and 7.0% would yield balances of $83,914, $119,845 and $175,676 respectively. Interest rates accurate as of December 16, 2011 on a $300, year loan amount. Source: MyFico.com -

What’s In Your FICO® Score
Source:

How FICO Credit Scores are Calculated
Different activities carry different weight in the calculation of your credit score. Here’s the break down of your score: Your Payment History: 35% The most important consideration in the formula for credit score calculation is how you pay your bills. Your credit score considers how you have paid your bills over time, but your most recent activity is more important than years gone past. If you pay your bills late frequently, you’ll have a lower credit score than someone who pays their bills on time. Source: ComplexSearch.com -

Debt and Available Credit: 30% The second most important consideration in credit score calculation is how much money you owe in comparison to how much credit is available to you. This is your debt to credit ratio, and if you have used all of the credit available to you, lenders consider you riskier than someone who has managed their money better and kept their debt low in relation to how much they could be spending. A good rule of thumb is to keep your debt within 30% of your total available credit for the highest credit scores. How Long You Have Had Credit: 15% The longer you have had credit, the better your credit score. This is because lenders have a longer period of time to review your payment habits. Source: ComplexSearch.com -

What Types of Credit You Have: 10% Credit scores are higher for individuals who have a mix of different credit types than for people who have just credit cards, for example. Having an installment loan, a credit card, a mortgage and a car loan is considered a good mix of credit and shows you can manage a variety of credit types. Frequency of Credit Applications: 10% If you are filling out applications for credit cards and loans every other day, you’re going to have a lower credit score than someone who isn’t applying for credit. This is because applying for credit frequently makes creditors wonder if you’re in some sort of financial emergency and need access to money – so the more you apply for credit, the lower your credit score will be. Source: ComplexSearch.com -

Know Your Credit History and Score
Steve Rhode, president of Myvesta, a nonprofit consumer-education organization says, each time you open a store credit card, 20 points are taken off of your credit score. Source: Bankrate.com

HOW MUCH WILL CREDIT SLIP-UPS LOWER A FICO SCORE?
If your FICO score is 680, a 30-day delinquency drops it by 60 to 80 points; maxing out a credit card costs 10 to 30 points; a foreclosure cost 85 – 105; and declaring bankruptcy shrinks it by 130 to 150. If those same missteps are made by the owner of a 780 FICO score with few signs of risky credit behavior in the past, the number of points lost could be about 50 percent higher in each case. Source: Ask Sid, hhtp://bulleting.aarp.org March 2010

Protecting the Value of Student Physical Therapist’s and Physical Therapist Prime Assets
Not exercising an informed financial plan immediately upon graduation and preferably earlier (with or before the first paycheck) will result in long-term financial hardship, often demonstrated by living pay check to pay check, carrying balances on credit cards, paying higher interest rates at less desirable terms, being late or missing payments and making personal and financial decisions based upon money; all signs of financial instability and distress. These living a lifestyle that cannot be afforded indicators are also conditions that lead to personal and career dissatisfaction and by extension a decline in patient and community health care.

Uninformed debt is more than money
There are very few nexus points more important to the future of health care than the informed management of student debt. In increasing numbers the near unfettered access to student loans represents far more than students and graduates can reasonably understand how to manage and afford without access to financial expertise – similar to the lending debacle to sub-prime borrowers for mortgages – but for graduates it will be the value of the degree and career earnings that will be seized. Uninformed or ill-informed managed debt may be the most harmful and devastating threat to individual health professionals and health care today and in the years to come. MEDebt Solutions - Informed Solutions For Student Loans, Debt, Money & Beyond

Uninformed debt is more than money
Uninformed or improperly managed education debt is a quiet killer of ambition and choice whose outwards signs of difficulty are generally ignored until credit limits or earnings fail to reconcile with cash flow availability. Not enough money or credit to meet bills. Uninformed or improperly managed debt is as much an impediment to physical therapist as any addiction yet student loan debt is near effortlessly, unfettered and widely distributed with virtually no training, instructions or regulations to protect student borrowers from the abuse of “uninformed or improperly managed debt.”

It’s not mission impossible
Properly understood and addressed with expert consultation, an overleveraged and financially unstable situation can often be reconciled or restructured. The key to financial success and goal achievement is being financially informed and responsible with an affordable debt and money management strategy and plan in place. A strategy and plan which provides for simultaneous debt management and emphasizes building financial assets through early saving and investing. Maintaining and strengthening credit status is also a priority. APTA – Member Benefit Education Finance Program

Debt is personal and requires “Student loan” & “Finance” expertise if profitability (your financial success) is to be maximized. The management of debt, particularly health professions school debt, must be personalized and comprehensive in a “Finance (as in business) and Economics oriented” manner. Otherwise decisions regarding debt are most often ill-informed, untrained, inexperienced and intuitive. This is like sending a recreational swimmer with no training, no coaching or other support to compete in the Olympics, the results would be disastrous. APTA – Member Benefit Education Finance Program

Debt as an investment A physical therapist graduate who averages $60,000 per year in salary will break-even (recoup the $235,000 student loan expense - 6.8% repaid over 30-years - includes interest and principal) in 3 years and 11 months. This is the same as paying $235,000 (including interest) for a house and later selling it for $1.8 million; it is a spectacular return on a financial investment. MEDebt Solutions/EAS Group

Debt as an investment For indebted physical therapy students, taking on additional unnecessary debt above the “pure basics - I am talking survival – basic needs” during PT school or early on following graduation or during the early (7 – 10) employment/practice years, even for what is generally thought of as “good” debt like a house substantially changes the financial profile, balance sheet/net worth, break-even point and long-term financial status and stability.

Debt as an investment Adding a $140,000 house at a low 4.8 percent interest will mean adding $264,000 in total payment obligations (including interest) to the $235,000 of student loans payment obligations. This now creates a total debt liability of $499,000. Given the same income scenario of $60,000/year post-graduation income over the next 30-years the PT’s BEP becomes 8 years and 4 months years. APTA – Member Benefit Education Finance Program

Debt as an investment The equity in the home for the graduate who buys the house after graduation would depend mostly upon the appreciation if any in the property value less non-home value expenses such as closing cost, escrows and maintenance. Do remember that the early years of mortgage payments are applied almost exclusively to interest payment. Hence, the graduate is largely dependent upon the appreciation of the value of their house to increase the assets side of their net worth. In order to access equity value you would have to either sell the home or borrow using the home as collateral. MEDebt Solutions - Informed Solutions For Student Loans, Debt, Money & Beyond

BEP for a Physical Therapy Grad Buying a House
Our calculations readily suggest that taking on additional debt above and beyond student debt early in one’s post-graduation career can substantially change the value of the education/ degree as well as profitability, financial status, economic stability profile, quality of life and ability to finance personal and professional goals.

Debt as an investment As the scenarios demonstrated, the most questionable and potentially financially threatening move an indebted new graduate, early career practitioner or a student can make is to take on any additional debt Too Soon. Do not take on any additionally debt beyond what is absolutely necessary to graduate, become licensed and meet ‘basic’ living needs/expenses – Too Soon. Students and graduates need to know how to rationally assess their situation and know the exact parameters of what they can afford to spend, buy and most importantly need to save and invest. Or have access to experience trained professionals that can help them assess their situation. MEDebt Solutions/EAS Group

Debt as an investment Understanding and managing education school debt in financial terms gives students and graduates insight, options and the ability to foresee and create his/her desired future with less stress, a personalized financial baseline, a financial roadmap for goals, a more comprehensive understanding of lifestyle expectations, outcomes and far greater happiness and satisfaction. It is critically important that physical therapy students and graduates understand and abide by "affordability" concepts and principals of financial planning, whether via MEDebt Solutions or some other education and consultative vehicle. MEDebt Solutions/EAS Group

Age Old Wisdom “For age and want, save while you may; no morning sun lasts a whole day.” -Benjamin Franklin - Portrait of Benjamin Franklin Engraved by J. Thomson, From an Original Picture by J.A. Duplessis

New Age Wisdom Keep your mind on your money and your money on your mind Snoop Dogg Calvin Cordozar Broadus, Jr.

Your Future Begins Now! MEDebt Solutions/EAS Group

Taking Control of Your Debt
The financial decisions you make as students makes going forward as PTAs, PTs and DPTs, particularly regarding the use and repayment of credit cards, student loans and salary will have a huge impact and influence on the quality of your life for many years to come. By understanding money management, money behavior, money habits, money decisions and money attitudes you will be better prepared to take control and make money change things for the outcomes you want.

A MEDebt Solutions Examination & Assessment of Financial Viability
Jennifer & Agnes The little things counts and makes a big difference!

DPT Program - COST OF EDUCATION - BUDGET
TEXT Tuition & Fees Living Expenses* Total 1st Year $22,500.00 $15,551.00 $ 38,051.00 2nd Year 3rd Year $16,018.00 $ 38,518.00 $67,500.00 $63,138.00 $114,620.00 * 12 month school estimated budget MEDebt Solutions/EAS Group

Monthly Living Expense & Lifestyle/Budget Choices – DPT Program
Jennifer Agnes Housing: One Bedroom (500 sq. ft.) $900.00 - Share Two Bedroom (1000sq.ft.) $500.00 Utilities $ $ Food: Basic Food/Groceries/Dine In $100.00 $200.00 Nonessential Food/Dine Out $225.00 Personal $ Recreation/Entertainment $ Car Payments/Transportation/Related Expenses $325.00 $175.00 Insurances/Apartment $15.00 Childcare Phone $50.00 TEXT Cont. on Next Chart

Monthly Living Expense & Lifestyle/Budget Choices – DPT Program
Jennifer Agnes Other: Cable TV/Internet Presents/Gifts Vacation/Travel Memberships/Subscriptions Credit Card: $ $ $ - $25.00 $8,000 $173.00 $2,000 $43.00 Savings/Invest/Retirement: Savings $15.00 IRA $20.00 Student Loans: In school deferment Federal Stafford’s Private Total $ 2,198.00 $ 1,263.00 TEXT

Actual Lifestyle Living Expenses – DPT Program
Jennifer Agnes 1st Year Tuition & Fees $ 22,500.00 $22,500.00 Living Expenses $ 26,376.00 $ 15,156.00 2nd Year Living Expense $15,156.00 3rd Year $ 27,576.00 $16,018.00 Total $147,828.00 $113,830.00 $33,998 (23%) Difference

Students Affordability Rules of Thumb Index
MEDebt Solutions Students Affordability Rules of Thumb Index Student Loan Payments are considered manageable when kept to no more than 12% of Gross Monthly Income and preferably below 9%. Monthly Committed Expenses should be 50% - 70% of total remaining income/financial aid (after all payments due school have been deducted). Monthly Selected Wants should be 10% - 30% of total remaining income/financial aid (after all payments due school have been deducted). Savings/Investment Goals should be $ % of total remaining income/financial aid (after all payments due school have been deducted).

Students Affordability Rules of Thumb Index
MEDebt Solutions Students Affordability Rules of Thumb Index Home Debt, rent/mortgage payments, related taxes and insurances, and other related cost should be kept to no more than 32% of total remaining income/financial aid (after all payments due school have been deducted). Total Debt, home debt, credit card debt, auto loans and any other money owed should not climb above 40% of total remaining income/financial aid (after all payments due school have been deducted). MEDebt Solutions - Informed Solutions For Student Loans, Debt, Money & Beyond

Every Student is Unique When it Comes to Affordability Rules of Thumb Index
Each individual can and should decide how they wish to divide up their Monthly Committed Expenses and Monthly Selected Wants. Decide how to allocate your available funds (income Less Total Deductions & Expenses Due the School) by percentages and then work out the details. It is critically important that you borrow as little as possible, do not run a deficit and have at least a $500 cushion as an emergency fund. The key to student financial success and goal achievement is being financially informed and responsible with an affordable debt and money management strategy and plan in place for simultaneous debt repayment and building financial assets (net worth) through saving and investing. Maintaining and strengthening credit history and credit scores is also a priority. MEDebt Solutions/EAS Group

Every Student is Unique When it Comes to Affordability Rules of Thumb Index
Successful goal achievement is the result of informed intelligent borrowing – borrowing less, at low rates and only to pay for “basic education and living necessities” and proficient credit management. Borrowing too much, which is far too easy to do via financial aid and credit cards, can easily turn an excellent investments like your education into an unmanageable over-leveraged (not enough income to meet debt payments), over-priced “bad” investment that will consume excessive amounts of future income that would be better used for more productive purposes like saving and investing for your goals. As a very wise financial planner often said, “As a student, live like a student so you will not have to live like a student when you are a 45-year old professional and your own kids are students.”

Jennifer & Agnes Debt – Three Years Later at Graduation
$ 61,500.00 $ 13,000.00 Total Stafford $ 41,000.00 $ 41,500.00 Stafford Unsubsidized $ 53,120.00 $ 61,500.00 Private Student Loans $ 20,000.00 $ 20,000.00 Stafford Subsidized DPT Program: Agnes Jennifer Credit Cards $ 52,330.00 $ 2,000.00 TOTAL DEBT $ 127,620.00 $115,830.00 Stafford 6.8% Private Student 12.0% - 15 years Credit 18.0%

Graduation to Employment/Practice
Income: Assumed Gross Income 1- 4 years experience $55,000.00 Jennifer Agnes Gross Income $55,000.00 Less 6% 401 (K) - $(3,300.00) Adjusted Gross Income $51,700.00 Less 30% Deductions $(16,500.00) (15,510.00) Net Yearly Income $38,500.00 $36,190.00 Net Monthly Salary $3,208.00 $3,016.00 $192/mo difference

Lifestyle Expenses - First-Year Employment/Practice
Jennifer Agnes Unconsolidated Consolidated Housing $1,287.00 500.00 Utilities $180.00 45.00 Basic Food/Groceries/Dine In $304.00 219.00 Nonessential Food/Dine Out $213.00 125.00 Apparel & services $145.00 103.00 Recreation/Entertainment $175.00 80.00 Transportation & Related Expenses $800.00 300.00 Presents/Gifts $ - Personal Care $125.00 30.00 Health Care $200.00 185.00 Vacation/Travel $100.00 Credit Card: $13,000 $281.00 Credit Card: $ 3,000 65.00 Cont. Next Chart

Jennifer Agnes Savings/Invest/Gifts: Unconsolidated 10-Yr Repayment Fed Loans Consolidated 30-Yr Repayment Fed Loans Savings/Investments - $100.00 Charitable Gifts $25.00 Roth IRA $20.00 Student Loans: Federal Staffords $708.00 $404.00 $340.00*** Private Bal. $53,120 $638.00 Bal. $52,330 $628.00 Payment on Credit Card Principal* $100.00* Payment on Private Loan Principal** $111.00 Total $5,206.00 $4,902.00 $2,976.00 Monthly Surplus/(Deficit) $ (1,998.00) $ (1,694.00) $40.00 Balance to be paid off in 1-year, 10-months **Balance to be paid off 3 years, 4 months early-interest savings of $21,599 ***Graduated Plan with 0.25% for ACH

Affordability Rules of Thumb Index for Graduates
MEDebt Solutions Affordability Rules of Thumb Index for Graduates Student Loan Payments are considered manageable when kept to no more than 12% of Gross Monthly Income and preferably below 9%. Monthly Committed Expenses should be 40% - 60% of Net Monthly Income. Monthly Selected Wants should be 10% - 30% of Net Monthly Income. Monthly Savings/Investment Goals should be 10% - 20% of Net Monthly Income. MEDebt Solutions/EAS Group

Affordability Rules of Thumb Index for Graduates
Student Loan Payments are considered manageable when kept to no more than 12% of Gross Monthly Income and preferably below 9%. Home Debt, rent/mortgage payments, related taxes and insurances, and other related cost should be kept to no more than 31% - 35% of Gross Income. Total Debt, home debt, credit card debt, auto loans and any other money owed should not climb above 36% - 43% of Gross Income. MEDebt Solutions - Informed Solutions For Student Loans, Debt, Money & Beyond

Graduates Affordability Rules of Thumb Index
Each individual can and should decide how they wish to divide up their Monthly Committed Expenses and Monthly Selected Wants. However the key to financial success, economical security and goal achievement is the long term consistent commitment to saving/investing $500 to 15% - 20% of household income. The remaining 80% can be used as you see fit as long as it does not involve the accumulation of high interest, unmanageable and/or over-leveraged "bad" debt for depreciating or over-priced good, services or products. MEDebt Solutions/EAS Group

Repayment Strategy Option: Agnes can opt for two years of forbearance on her consolidation and apply the full $340 monthly payment to the principal of her private loan. In doing so she will pay-off the 15-year private loan early by 5-years, 8-months and save nearly $25,000 of 12% interest ($35,804 vs. $60,719).

Personal Financial Strength/Assets Jennifer
TEXT Jennifer Unconsolidated – 10-Yrs Year 1 (deficit + CC bal. $13k) $ (33,328.00) Year 2 (cut deficit ½ + CC bal. $13k) $ (23,164.00) Year 3 (cut deficit ½ + CC bal. $13k) $ (18,082.00) Year 4 (cut deficit ½ + CC bal. $13k) $ (15,541.00) Year 10 (deficit & CC bal. eliminated) $ (4,456.00) Begin Contributions = to Fed. Loan Pay. Year 15 (Add Private Loan pay. contrib.) $0.00 Year 20 $48,121.00 Year 25 $123,462.00 9.0%

Personal Financial Strength/Assets - Agnes
Agnes – Consolidated 7.0% Roth IRA @ 9.0% 401 (k) @10.0% Total Year 1 $1,239.00 $ $ 6,911.00 $ ,400.00 Year 2 $2,568.00 $ $ 14,546.00 $ ,638.00 Year 3 $3,993.00 $ $ 22,980.00 $ ,796.00 Year 4 $7,56600 $ 1,15000 $ 32,297.00 $ ,013.00 Year 10 $35,128.00 $ 3,870.00 $ 112,665.00 $ ,663.00 Year 13 begin contributions with pri. loan, CC + additional principal payments = $1004 Year 15 $ ,279.00 $ 7,568.00 $ ,959.00 $ ,806.00 Year 20 $ ,202.00 $ 13,357.00 $ ,653.00 $ ,212.00 Year 25 $ ,285.00 $ 22,422.00 $ ,758.00 $ ,123,465.00 MEDebt Solutions/EAS Group

Maximizing Resources Borrow Responsibly
“As life closes in on someone who has borrowed far too much money on the strength of far too little income, there are no fire escapes.” - John Kenneth Galbraith (1908 – 2006) most famous economist of the second half of the 21st century (File photo/Harvard News Office)

Moral to the Story – Leverage Your Debt
In this Jennifer and Agnes example, the financially rewarding strategy is to leverage debt by living “student like” for a few years post graduation. During this time you are working to aggressively reduce your outstanding “bad debt,” manage your “good debt,” limit your intake of any new debt, and balance these actions with the accumulation of appreciating/working assets which will improve your debt-to-income ratio and net worth.

During this time you should also work to maintain and improve your credit history/score, increase your income and strive for the abundant fulfilling life and goals you have set for yourself while fostering economic stability and security. This will not happen overnight but it will happen sooner than you can now imagine and certainly before you reach your peak experience earning years if you do right by your plan.

Otherwise you will experience “student like” sensations, frustrations and angst well into your experienced peak earning years where your resources will be fully committed with little flexibility for you to just be you. This scenario also suggest that for those who are planning to start their own company that they understand their financial position and work diligently to build their assets, net worth and credit rating.

What a Difference a Roommate & a Few Other Expenses Make
Jennifer Total Monthly Payments = $1,760 $280/mo. Difference $3,360/yr. Difference $100,800 Over 30 yrs. $163,166 if Deposited at 3.0% for 30 yrs. Agnes Total Monthly Payments = $1,480 MEDebt Solutions - Informed Solutions For Student Loans, Debt, Money & Beyond

Jennifer’s Cash Assets In 10-yrs: ($4,456) In 15-yrs: $ 0
What a Difference a Roommate, Living Like a Student for a Few Years and Early Savings Make Jennifer’s Cash Assets In 10-yrs: ($4,456) In 15-yrs: $ 0 In 20-yrs: $48,121 In 25-yrs: $123,462 Agnes’s Cash Assets In 10-yrs: $151,663 In 15-yrs: $333,806 In 20-yrs: $642,212 In 25-yrs: $1,123,465 MEDebt Solutions/EAS Group

Your Choice You can be a Jennifer in 25-years $123,462 or
You can be an Agnes in 25-years $1,123,465

Richer and Happier! Adopting good money management habits rather than poor ones can make you feel as much as 50 percent richer and happier. – Jean Chatzky, Today Show, October 2, 2003 MEDebt Solutions - Informed Solutions For Student Loans, Debt, Money & Beyond

Help and Information

Having a plan to achieve your goals is the key to success
With physical therapy education costs and student debt rising at phenomenal rates coupled with recent changes to student loan programs and the current economic crisis; understanding debt and making it affordable is a prime requisite for PTA’s, PT’s and DPT’s success. Student loans are easy to obtain and without an educated understanding of debt and money can be most difficult and costly to manage and repay. Most physical therapy education debt is “overleveraged” - far too much debt than the ability to make required payments when payments become due and “financially unstable”- liabilities that far outweigh assets. As loan repayment becomes more difficult the more perceptions, goals and ambitions may be altered. Additionally, life and lifestyle choices are influenced on the basis of income needed to make loan payments. Education debt is unlike any other consumer debt. Education debt requires formal, trained and experienced financial planning, money and debt management expertise. When properly understood and addressed, this overleveraged and financially unstable situation can be reconciled. Unfortunately, most students and graduates do not have the formal training and experience or access to expertise to assess and identify personalized strategies, plans and solutions to make informed decisions in organizing, assessing and managing their debt and money in a manner to achieve financial stability and security. MEDebt Solutions created the Debt Evaluation and Budget Affordability Assessment & Planners (DEBAAP) to address this dilemma/disconnect.

MEDebt Solutions DEBT EVALUATION AND AFFORDABILITY ASSESSMENT - a plan to achieve your goals
The MEDebt Solutions Debt Evaluation and Budget Affordability Assessment & Planner (DEABAAP) for Students and Graduates are subscription fee based financial literacy education/counseling/coaching/debt and money management process designed to assist students and graduates forecast, evaluate and plan for current and future financial situations in relationship with desired personal and professional goals. DEABAAP is a no nonsense appraisal of debt, expenses, income, savings and investments. DEABAAP organizes student loan information into a single format that also provides the borrower with budgeting guidelines and financial parameters, tools, resources, information as well as estimates of monthly payments and financially viable and practical repayment options and scenarios. Student loan repayment data coupled with financial aid/salary income is put to a “financial stress test” to establish a personal financial baseline that allows the student/graduate to evaluate the affordability of their debt, budget, spending and saving behavior/plans and consider an array of “time tested” money smart finance oriented uses of money. Valued at $2,500 to $5,000 or more, as an APTA member benefit the DEABAAP is greatly discounted to APTA members. The DEABAAP will assist PTAs, PTs and DPT students and graduates manage your entire financial life in a manner to achieve expressed goals and a successful and rewarding career as well as do the unthinkable; simultaneously build personal financial and economic security and freedom based upon informed accurate finance oriented decisions.

Some Basics You Should Know And Understand About Successful Saving & Investing Your Money
These MSN.Money financial literacy videos are exceptionally well produced, informative, non-confrontational, fun pieces worth taking the few minutes to watch and most importantly share with everyone you care about. It's even better to watch and discuss with your financial partners, spouses, kids, parents, family, friends and everyone you wish to give the gift of financial literacy, stability and success. By age 14, Damon Williams has built a portfolio worth $50,000. Damon was just 5 years old when he bought his first share of Nike stock, and his story is a perfect illustration of one of the lesser-known applications of the phrase "time is money." For more than 40 years, Earl Crawley, who struggles with dyslexia has been a parking lot attendant, never earning more than $20,000 a year. So how did he build a net worth of more than $1 million? Most of us could learn a thing or two from Damon and Mr. Earl. Also learn the fundamentals of risk -

Personal Finance Resources: Videos
This MSN.Money financial literacy videos are exceptionally well produced, informative, non-confrontational, fun pieces worth taking the few minutes to watch and most importantly share with everyone you care about. It's even better to watch and discuss with your financial partners, spouses, kids, parents, family, friends and everyone you wish to give the gift of financial literacy, stability and success. MEDebt Solutions/EAS Group

Personal Finance Resources: Books
The Automatic Millionaire: A Powerful One-Step Plan to Live and Finish Rich by David Bach The Millionaire Next Door: The Surprising Secrets of America’s Wealthy by Thomas J. Stanley and William D. Danko The Wealthy Barber by David Chilton The Richest Man in Babylon by George S. Clason Making the Most of Your Money by Jane Bryant Quinn Personal Finance for Dummies by Eric Tyson

Personal Finance Resources: Television/Cable/DVD
CNN series called “Millionaires in the Making” on CNNmoney.com featuring savers, investors and entrepreneurs, many of whom are 35 or younger. Award winning documentary, Maxed Out: Hard Times, Easy Credit and the Era of Predatory Lenders (2006) is an independent feature-length documentary film and (2007) book that chronicles abusive practices in the credit card industry. Written and directed by James Scurlock, the film and book use interviews with creditors, debtors, academics, and others to illustrate its story. Scurlock's purpose for the film and book was to raise awareness of how credit and lending issues are affecting society.

Personal Finance Resources: Magazines
Smart Money Money Kiplinger’s Personal Finance Medical Economics

Personal Finance Resources: MONEY ATTITUDE AND BEHAVIOR BOOKS
Psychology and Consumer Culture Edited by Tim Kasser, PhD, and Allen D. Kanner, PhD. - provides an in-depth psychological analysis of consumerism that draws from a wide range of theoretical, clinical, and methodological approaches. The contributors to this edited volume demonstrate that consumerism and the culture that surrounds it exert profound and often undesirable effects on both people's individual lives and on society as a whole. Far from being distant influences, advertising, consumption, materialism, and the capitalistic economic system affect personal, social, and ecological well being on many levels. Authors address consumerism's effect on everything from culture, ethnicity, and childhood development to consciousness, gender roles, identity, work stress, and psychopathology. Contributors provide a variety of potential interventions for counteracting the negative influence of consumerism on individuals and on society. The book makes a strong case that, despite psychology's past reticence to investigate issues related to consumerism, such topics are crucial to understanding human life in the contemporary age. MEDebt Solutions - Informed Solutions For Student Loans, Debt, Money & Beyond

Money Changes Everything by Elissa Schappell and Jenny Offill – An anthology by 22 writers, tackle the last taboo with tales of sudden windfalls, staggering debts, and other surprising turns of fortune. Although ours is a culture of confession, yet money remains a distinctly taboo subject for most Americans. A host of celebrated writers explore the complicated role money has played in their lives, whether they’re hiding from creditors or hiding a trust fund. This collection will touch a nerve with anyone who’s ever been afraid to reveal their bank balance. In these wide-ranging personal essays, acclaimed authors write with startling candor about how money has strengthened or undermined their closest relationships. Isabel Rose talks about the trials and tribulations of dating as an heiress. Tony Serra explains what led him to take a forty year vow of poverty. September 11 widow Marian Fontana illuminates the heartbreak and moral complexities of victim compensation. Jonathan Dee reveals the debt that nearly did him in. And in paired essays, Fred Leebron and his wife Katherine Rhett discuss the way fights over money have shaken their marriage to the core again and again. As a society, we talk openly about our romantic disasters and family dramas, our problems at work and our battles with addiction. But when it comes to what is or is not in our wallets, we remain determinedly mum. This is the first anthology of its kind—an unflinching and on the-record collection of essays filled with entertaining and enlightening insights into why we spend, save, and steal, ranging from the comic to the harrowing, all revealing the complex, emotionally charged role money plays in our lives by shattering the wall of silence that has long surrounded this topic.

Green With Envy: Why Keeping Up With the Joneses Is Keeping Us in Debt by Shira Boss. –Financially stressed Americans are the rule, not the exception with more of our nation's families going through bankruptcy than divorce. This book provides a compelling tell-all about what's really going on with the Joneses, offering a whole new perspective on financial well-being and simple, practical steps for how we can stop trying to keep up once and for all. As the silent struggle with our money is raging across America, each of us is harboring secret financial desires and discontents, but few dare confess. No matter how much we refuse to admit it, our contentment is based not on the size of our bank account but on how we measure up to those around us. Everyone, regardless of income, occupation, or net worth, wants to keep up with the Joneses, even when it means making financial messes and covering them up. In this myth shattering tour of America's mind-set about money, Shira Boss offers a tantalizing mix of hard facts and juicy gossip as she peers into the lives and checkbooks of our neighbors...and exposes the shocking gap between public image and what's really going on behind closed doors. APTA – Member Benefit Education Finance Program

Personal Finance Resources: Web Sites
The Financial Planning Association’s (FPA’s) site finds the names of Certified Financial Planners in specific areas (or call toll-free to ) and National Foundation for Credit Counseling; provides consumer counseling, debt and money management plans The Financial Planning Association (FPA) maintains a site that finds the names of Certified Financial Planners in a specific area (or call toll-free to ). Ask students when they plan on using a financial advisor. Tell them that they may want to consider seeing a financial advisor while they are in school. If they are married or have children they may want to see a financial advisor even earlier. Tell students they may want to suggest that their parents and family use a financial advisor. MEDebt Solutions/EAS Group

Personal Finance Resources: Blogs for Young Adults
Blogs have sprung up in recent years taking advantage of Internet anonymity to reveal to strangers fiscal intimacies the authors might not tell their closest friends in the belief that the exposure gives them discipline to reduce their debt. Online swapping tips on saving, investing and avoiding debt as well as commiserating about financial difficulties: • Young Professionals Financial Blog – ( • StopBuyinCrap.com ( • My 1st Million at 33- ( • Free the Drones- (

• bloggingawaydebt.com Authored by Tricia, 29, does not talk to her family or friends about her finances, and says she is ashamed of her personal debt. She posts intimate details of her financial life, including her net worth, the balance and finance charges on her credit cards, and the amount of debt she has paid down since starting a blog about her debt last year ($15,312). • makelovenotdebt.com Make Love, Not Debt is authored by an engaged couple with a negative $70, net worth. The feedback from readers has not always been gentle being appalled by spending $500 on a pair of shoes and their wanting a $25,000 wedding. MEDebt Solutions - Informed Solutions For Student Loans, Debt, Money & Beyond

• (wereindebt.com) “We’re in Debt” was started by the self proclaimed King and Queen of Debt as a way to talk to each other about their debt. They owed $34, on their credit cards at the time, and an additional $120,000, mostly in student loans. “My wife and I have good communication skills in every avenue of life except finances,” said the King of Debt, insisting on anonymity because, he said, “We don’t want our parents to find out and kill us.” Starting the blog, he said, “was a way to communicate.” • thedebtdefier.blogspot.com was started by Tricia after reading the online account of another woman, who said she had paid off her credit card debt of $19, in a little more than a year. APTA – Member Benefit Education Finance Program

Student Loan Management Help Resources: Web Sites
StudentLoanJustice.org, founded by Alan Collinge, or ProjectOnStudentDebt.org, and read the individual stories. There’s the $70,000 grad school loan that grew to $102,000, and the $40,000 undergraduate loan now being billed at $152,000. All of these borrowers made payments once upon a time. When hardship struck, they used the various rescue programs — payment deferrals, forbearance, loan consolidation, and loan rehabilitation, paying extra interest and fees. But as one New York borrower wrote, “In my 22 years of good faith efforts to pay this thing, I’ve succeeded only in doubling its size with no end in sight.” When a loan defaults and goes to collection, the monthly charge can run up to 25 percent more than the principal and interest due, and this charge is paid before any of your money goes toward reducing debt. Source: Jane Bryant Quinn,7 Things They Don’t Tell You About Student Loans -

More Student Loan Management Help Resources: Web Sites
The Feds and the states offer limited help to students who went to rip-off schools. Part or all of the loan can be cancelled if you take various types of public service jobs — for example, teaching in a low-income area. States have cancellation programs, too. For a detailed and accurate list of your options, see the excellent Student Loan Borrower Assistance Project - run by the National Consumer Law Center - There’s an ombudsman - at the U.S. Education Department, but first you have follow certain steps - to try to resolve the problem yourself. Most borrowers, however, won’t get help. The Education Department is itself a collection agent, Collinge says, so it’s generally not on your side. NCLC attorney Deanne Loonin says that, when representing clients, “I constantly find it hard to get the Department to recognize borrower rights.” In general, consumer groups haven’t yet stepped up to the plate on this issue. Tens of thousands of lives are being ruined, with Americans unaware. Source: Jane Bryant Quinn,7 Things They Don’t Tell You About Student Loans -

Good articles on aspects of mutual fund investing Teaches basics of mutual fund investing and retirement planning Good mix of education about mutual funds, individual stocks and bonds, annuities, and insurance MEDebt Solutions/EAS Group

Educational, often humorous, look at the world of investing The National Student Loan Data System (NSLDS) is the U.S. Department of Education's central database for student aid; you can use the Web site to make inquiries about most of your federal loans through their entire cycle, from aid approval through closure Offers an easy-to-use loan calculator, as well as other financial-related calculators and information A resource for consumer information from the federal government

Personal Finance Resources: Television/Cable
• CNN series called “Millionaires in the Making” on CNNmoney.com featuring savers, investors and entrepreneurs, many of whom are 35 or younger. Melody Hobson, President of Ariel Capital ABC television program "Unbroken: What You Need To Know About Money" is a compelling, practical and entertaining financial education tool that features celebrities like Will Smith, The Jonas Brothers, and others - APTA – Member Benefit Education Finance Program

Information on how individuals can cut costs, consumption, and waste A campaign to raise awareness about the need for more diversity in medicine and an interactive resource to inspire and connect students with key information about getting into medical school Comprehensive annotated collection of information about student financial aid on the Web MEDebt Solutions - Informed Solutions For Student Loans, Debt, Money & Beyond

Comprehensive source for information on credit reports (and ordering your credit report) in addition to general information about many aspects of personal finance (e.g., insurance, loans, etc.) Complete listing of and tips for winning scholarships at the national, local, and college-specific level; college profiles, part-time jobs and internship info (register to use) Online subscription search engine for grants MEDebt Solutions/EAS Group

Personal Finance Resources: Free Budgeting Tools And Software
Tracking one’s spending for several weeks; preferably a month is instrumental to understanding your hidden money behavior and habits; like what happens to the change when you break a $20 bill. We are all unique financial being and there is no single budgeting/financial planning system that’s universal therefore we often must trick ourselves into budgeting or a least find a way that works specifically for us as individuals. There is of course MS Money and Quicken, which you may or may not have installed on your computer. If not, you will have to pay for these programs. Before doing so, take a look at and try some of the free budgeting tools that are available. What’s important here is that you find something that works for you and that you get started and don’t forget about the old fashion low-tech columned paper and pencil. MEDebt Solutions/EAS Group

Moneycenter.yodlee.com – ( ) - Initially just an account aggregator, Yodlee now offers spending categories which can be used to help you budget. Tracks bank accounts, credit cards, investments, loans, frequent flier miles, real estate. Compatible with many kinds of accounts and serves up the info in a very direct way. This site is most comprehensive, about the facts. Lacks of eye candy and it’s hard to find the info to help you better manage your finances. Source: Money magazine, December 2008

Mint.com – Tracks bank accounts, credit cards, investments and loans. Attractive layout with many ways to display info graphically. The investment tools are comprehensive, comparing personal rates of return with major indexes and display asset allocation. The “way to save” section is thinly veiled advertising. A Money magazine top pick. Source: Money magazine, December 2008 MEDebt Solutions/EAS Group

QuickenOnline.com – Tracks bank accounts, credit cards, investments and loans. A polished layout with enhanced budget-building features. Quicken has strong customer support but will not allow you to sync with old desktop Quicken software and you’ll have to buy the software ($50 & up) if you want features such as investment analysis. Source: Money magazine, December 2008 APTA – Member Benefit Education Finance Program

Wesabe.com – Tracks bank accounts and credit cards using simple interface. Wesabe lets you store user names and passwords on your computer (with others, your info is stored on the site’s server). The program can’t track investments (company says that will change soon). User exchange of ideas is a key part, but membership seems to skew young. It’s best for young people who are just starting out. Source: Money magazine, December 2008

• SimpleD - ( - An “open source Windows application designed for personal or household financial management.” • AceMoney Lite - ( - Freeware version of an offline personal finance management program. It even downloads stock quotes from the internet. • PearBudget - ( ) - An Excel spreadsheet that has definitely had a lot of time put into it. • Microsoft Office Accounting Express ( Seems targeted at business, so this may be overkill for home budgets. • Stackbacks - ( - The “Stackbacks Automated Budget System” is more of a budgeting setup guide than a tool. Source: My Money Blog – ( MEDebt Solutions - Informed Solutions For Student Loans, Debt, Money & Beyond

• Buddi - ( - An open-source personal finance and budgeting program, which will run on any machine with Java installed. • Budget On Web - ( - Also more business oriented, it is a “free online system that integrates project management with contacts management and financial tools.” Free up to 5mb of storage, that is. • Moneytrack.in - ( - A “free online webapp that allows you to track all your expenses and income.” • Grisbi - ( Another offline open-source personal finance app. • MySpendingPlan - ( ) - A free online budgeting software system that works on the ‘”envelope” system. • PHPFIN - ( ) - An open-source personal finance management program. It seems like you have to install it on your own server? • GnuCash - ( ) “Personal and small-business financial-accounting software, freely licensed under the GNU GPL and available for GNU/Linux, *BSD, Solaris and Mac OS X.” Does OFX and QIF imports. • Budget Master - ( ) - A free personal budgeting program that offers charts and visual reports. Source: My Money Blog – ( MEDebt Solutions/EAS Group

FREE UNNAMED “HOMEGROWN” SPREADSHEETS: • Foxway Budget Tracker Spreadsheet - ( – Very simple budgeting spreadsheet. Nothing fancy. • My Money Blog by Neil Rothman - ( - A bit more advanced with pull down menus and better layout. • Budget and Cash Flow - ( ) Another simplistic spreadsheet, author unknown. • Budget Worksheet - ( Submitted by user Tony B. Instructions on use are included. Source: My Money Blog – (

CLEAR CHECKBOOK Account updating through many mobile services. - Personalized reminders and alerts. - Set spending limits. - Scratch pad for notes, goals, price comparisons, etc. - Simple editing features. GEEZEO Geezeo Blog. - Numerous 'learning' resources. - Product marketplace - compare various financial offers. - Provides access/linking to investment accounts as well. - Social network/financial support group. I-EXPENSE ONLINE Geared to detail-oriented individuals. - One-click access to features. - Test things with a guest account first. - Tips section can be browsed for budgeting suggestions. - Weekly progress chart. MINT Continually offering new and improved features. - No bookkeeping required. - Notifies you of account fees and finance charges. - Provides solutions based upon personal spending patterns. - Secure - uses same encryption banks use for data protection.

Personal Finance Resources: Free Credit Score Simulators
Below are several free websites that will use various pieces of your provided information in order to assist you in 'simulating' what your credit score is. They claim to be pretty accurate - You be the judge. In no particular order: Source: Dr. Oleson – Financial Tips powered by FeedBlitz, LLC APTA – Member Benefit Education Finance Program

Personal Finance Resources
The National Foundation for Consumer Credit

Basic Blueprint to Money and Debt as Life Skill Tools!
Mastering the art and skill of understanding debt, making it affordable and protecting the value of your education, your degree, training, career and the value of future earnings will allow you to do the unthinkable; Manage Debt, Build Wealth, Achieve your Goals, Be Successful and Happy all at the same time. MEDebt Solutions/EAS Group

Take Control of Your Money
- Portrait of Benjamin Franklin Engraved by J. Thomson, From an Original Picture by J.A. Duplessis “A penny saved is a penny earned.” Ben Franklin

Remember! Keep your mind on your money and your money on your mind
Calvin Cordozar Broadus, Jr.

Because of this presentation, “Protecting the Value of Your Prime Financial Assets: Your Degree and Career Earnings!” I am going to __________________. APTA – Member Benefit Education Finance Program & MEDebtSolutions/EAS Group, LLC

APTA Member Benefit Education Finance Program Administered by: MEDebt Solutions/EAS Group, LLC
For more information or to request a personalized MEDebt Solutions Debt Evaluation & Budget Affordability Assessment & Planner your request to Please reference APTA - NSC Copyright © 2010 MEDebt Solutions/Education Association Services (EAS) Group, LLC. No reproduction, in whole or in part, without written permission. MEDebtSolutions/EAS Group, LLC is an accredited A+ rated business in good standing with the Better Business Bureau (BBB) 291

Good Luck and Continued Success!
APTA – Member Benefit Education Finance Program & MEDebtSolutions/EAS Group, LLC

BONUS MATERIAL

Is education worth the money?
Many economists say borrowing for any kind of higher education is generally a smart idea. “College is a very good investment, and most students take out too few loans, not too many.” says Caroline M. Hoxby, a professor of economics at Stanford University. Anthony P. Carnevale, director of Georgetown University’s Center on Education and the Workforce, agrees. “From an economist’s point of view, debt is the very best way to pay for education because you’ll shifting the cost forward until you’ll be earning more money,” he says. “you borrow cheap money. It’s really a very good bargain.” Patrick M. Callan, president of the National Center of Public Policy and Higher Education, is not as sanguine about the value of borrow. Still, “the only thing worse than borrowing,” he says, “is not borrowing and not going to college at all.” Source: The Chronicle of Higher Education, May 22, 2009, Volume 55, Issue 37, Page A1

Financial Fact! The average and median IRA account balances in 2008 were $54,863 and $15,756, respectively. The average and median IRA individual balances – all accounts from the same person combined – were $69,498 and $20,046, according to a recent Employee Benefit Research Institute report. Employee Benefit Research Institute, EBRI Issue Brief #346 , IRA Balances and Contributions: An Overview of the EBRI IRA, APTA – Member Benefit Education Finance Program

Retirement Income Calculation
The Social Security Administration sends a report that tells how much income you will receive in today’s dollars when you retire. Write down that number. Total up the value of all IRA’s and 401 (k)s in your household and multiple that number by 0.04 That number is the amount some experts say you could withdraw from your retirement in today’s dollars. Now, add that number to your Social Security benefit figure, and then subtract that amount from your income. The results are roughly the amount of money you will need from other sources – such as work, pensions, reverse mortgages, life insurance – to enjoy a lifestyle similar to what you have today. MEDebt Solutions - Informed Solutions For Student Loans, Debt, Money & Beyond

Retirement Income Calculation Example
Household income - $100,000 $25,000/year from Social Security Withdraw $5,000/year from retirement accounts. With this scenario you will need to come up with $70,000 more per year to live the life to which you are accustomed. For some the best way to close the gap will be to contribute more to their IRAs and 401(k)s, work longer and lower their standard of living.

Financial Fact – A true story!
After graduating from law school at Washington University in St. Louis in the spring of 2009, Jennifer Belmont Jennings owed the federal government $170, in student loan repayments. She borrowed $157,000 in student loans to pay for three years of law school and accrued an additional $13,000 in interest while in school. When she first started calculating her repayment options, she said she "experienced the first feelings of what it may feel like if you're having a heart attack." Since graduation, Jennings has been able to repay $51, of her student loan debt. Her current balance is $135,308.60, and she's accumulated nearly $17,000 in additional interest since graduating.

understanding your environment
Jennings' experience reflects the dilemma many recent graduates face. Not only is the cost of education rising, but graduate students also face higher interest rates and a general lack of scholarships, in comparison to undergraduate students.

To properly manage your debt you need understand your environment
Mr. Callan went on to state, “It tells you that higher education is still a seller’s market. The level of debt we’re asking people to undertake is unsustainable. A lot of people think we can solve the problem with more financial aid, but I think we have to have some cost containment. For all the talk about reinventing higher education, I don’t see any results.” Article: The New York Times, October 21, 2009 – College Costs Are on Rise, As Is Concern About Effect by Tamar Lewin MEDebt Solutions - Informed Solutions For Student Loans, Debt, Money & Beyond

“Optimizing Debt” Long-term financial success is enhanced when you choose to “Optimize Debt,” especially the financing of your education because it most likely will be the largest debt you will have at graduation and one of the five single largest debts in your lifetime. It will also most likely be the only significant debt you incur without meeting “affordability” criteria. Optimizing debt requires that you: Identify your goals – write them out and refer to them often, they are your targets for success; Know how much you will really pay and what it will really cost to attend and graduate from your program; Have an informed financial plan which utilizes a budget that compatible and reflects your priority goals.

Optimizing Debt Understand that living within and preferably below your means will mean there will be things that you want and can buy (on credit) but cannot afford and will not buy until you can afford it; Consistently monitor & execute your financial plan; Start saving early – to take full advantage of and completely utilize “TIME” the ultimate and most powerful wealth creation force known to man, to build the assets side of your net worth balance sheet via compounding and interest accrual Remember the Bob & Hazel comparison.

Optimizing Debt As a student establish at least $500 in an emergency savings fund with a goal of 2,000 -$3,000 by graduation; As a graduate save to create an emergency fund of at least 3 months and 6 – 9 months or more depending upon employment stability. Intelligent management of student loan and other debt will require graduates to simultaneously manage the liability of “good debt” in a manner that is not risky, overleveraged or turns “good debt” into “bad debt.”

Optimizing Debt Improve your Money IQ - critically think about and educate yourself about how Money, Debt and Deferred Gratification will effect your goals; Be comprehensive in your approach and understanding of Money & Debt as common denominator success tools; Borrow less and only what you need for the basics for survival - not “Lifestyle” at least not until you have a comfortable level of positive net worth (total assets – value of everything you own - minus total liabilities – everything you owe) and then limit debt for depreciating items; Research and make an informed projection of how much graduates in your specialty are paid in their first post-grad job and for the next 5 – 10 years post graduation; MEDebt Solutions/EAS Group

Optimizing Debt START NOW!
Smartly utilize expert professionals and money saving strategies and tools to save, invest, budget and repay and manage all debt especially student loans by using extended repayment, consolidation, principal payment, income sensitive, income contingent, income based repayment, deferment and forbearance; Select the most advantageous means to pay for your purchases; Understand and know your money personality, habits and behavior; Live below your means, budget deficits are unacceptable; Spend, save, borrow (“for good debt only”), eat, exercise, rest and invest intelligently; START NOW!

Cleaning up bad credit ASSESS YOUR SITUATION Before you even start to think about rehabilitating your credit, make sure that you can pay your bills on time and not do any more harm. If keeping up with your credit card bills is still an issue, then call the issuer, explain your situation and try to negotiate payments you can afford. Ask the issuer how that will be reported to the major three credit bureaus: Not paid as agreed, which can hurt your score? Or will the new terms say that you are now paying as agreed? Get the new agreement in writing. Source: Healing a Wounded Credit Score, The New York Times, February 18, 2011, Tara Siegel Bernard.

Cleaning up bad credit Start with the low-hanging fruit. Let’s say you were late paying a bill from a company that no longer exists, or a bank that has since merged with a larger institution. If the credit reporting bureaus cannot verify the accuracy of that black mark, they are required to remove it. “Not only does it have to be correct, but it has to be verifiable,” says John Ulzheimer. Source: Healing a Wounded Credit Score, The New York Times, February 18, 2011, Tara Siegel Bernard.

Cleaning up bad credit Next, focus on paying off the credit cards — that will help give your score the most lift. Paying off a mortgage, a student loan or other installment debts, like car loans, feels good but that won’t necessarily do much for your credit score. Source: Healing a Wounded Credit Score, The New York Times, February 18, 2011, Tara Siegel Bernard

Cleaning up bad credit You also want to get your so-called debt utilization rate into good shape. FICO considers how the total amount of debt on each of your credit cards compares with your total available credit. The credit score “elite” — that is, people with FICO scores above 760 — typically don’t have debts that exceed 7 percent of their available credit. But if you are at 50 percent and can get the rate down to 30 percent, that will help. LEAVE A NOTE Because prospective employers may pull a copy of your credit report, consider adding the equivalent of a doctor’s note to each of your reports explaining your hardship, like a job loss. All three major credit bureaus allow you to add a brief statement through their Web sites. FICO doesn’t consider these statements when formulating scores, however, so don’t expect it to sway lenders. Source: Healing a Wounded Credit Score, The New York Times, February 18, 2011, Tara Siegel Bernard

Cleaning up bad credit John Ulzheimer, president of consumer education at SmartCredit.com says “In 2011, the best way to get credit from the mainstream lenders is to have a good FICO score.” will want to work on raising your credit score to at least 725, that’s where the “very good” to “excellent” range typically begins. The best antidote to a poor score is time. Still, there are a half dozen ways to speed the process, or, at the least, avoid even more credit trouble. MEDebt Solutions/EAS Group

Cleaning up bad credit GET SECURED CARDS - It will obviously be hard to get a traditional credit card when you have a poor credit history. Secured cards, if used strategically, can help nurse your credit back to health more quickly. These cards require you to put a set amount of money in a bank account, say $250 or $500, which is used as collateral. And the amount of available credit should be equivalent to the amount on deposit. Source: Healing a Wounded Credit Score, The New York Times, February 18, 2011, Tara Siegel Bernard

Cleaning up bad credit “What is the most predictive and powerful in your score are the things you’ve done most recently,” Mr. Ulzheimer said. “If you add a secured card and you pay it religiously and the balance is low, it will help your score a lot more quickly than if you do nothing.” Curtis Arnold, the founder of CardRatings.com, recommended two cards, both of which report payments to the big three: the Orchard Bank Secured MasterCard, which has an attractive interest rate of 7.9 percent, waives the annual fee in the first year and charges a moderate $35 annually thereafter. He also likes the Citi Secured MasterCard, largely because it offers an interest rate on the security deposit equivalent to an 18-month certificate of deposit, which he says is an industry first. Source: Healing a Wounded Credit Score, The New York Times, February 18, 2011, Tara Siegel Bernard

Cleaning up bad credit ALTERNATIVE VERIFICATION There are other credit reporting agencies and services that — for a monthly fee, and sometimes a hefty one — will collect your payment history from sources that aren’t included in your traditional credit report or FICO score. At this point, however, most mainstream lenders base their decisions on the big three bureaus’ reports and FICO scores. So you’re better off saving your money. “All of those companies say they will report your accounts to a credit bureau, and they may be doing that,” Mr. Ulzheimer said. “But if it is not the big three, then who cares?” TALK TO A CREDIT UNION These institutions may be more willing to work with members who have checkered histories. Their offerings vary, but they may be more likely to consider alternative credit scores, offer free credit counseling or have products tailored for people with poor credit histories . Source: Healing a Wounded Credit Score, The New York Times, February 18, 2011, Tara Siegel Bernard

Credit Score Scale A credit score can range anywhere between 300 and 850. A credit score that is below 500 is considered as risky by the lenders and financial institutions. 850 is the high score and 300 is the low score. If the credit score is 700 and above, you have better chances of getting loans at good interest rate. Credit score scale is the scale that gives the range of credit score. Various bureaus, using special formulas, calculate the credit score. You can get your credit reports from any of the authorized bureaus. However, FICO is more popular than others. The Fair Isaac Corporation or FICO is one of the credit bureaus that scale or measure the credit score. Their scoring system is called VantageScore. FICO score-range is between 300 and 850 points. According to the FICO credit score scale, the scores that are above 720 points are the best while the points beneath 600 is considered to be a bad score. The credit scores between 600 and 700 come under average scale. Before applying for loans it is advisable to get the credit report from any of the bureaus. However, understand that credit scores are not a part of the credit report. The financial institutions will analyze the credit scores on the basis of the credit report you submit for a loan. The credit scores are calculated by the credit bureau. Source: Buzzle.com® -

Vantage Credit Score Various financial institutions use different credit scoring systems with different numeric scales. Therefore, the lender decides whether a credit score is good or bad. The financial institutions decide on the credit score on the basis of your credit report and credit history. However, it is suggestible to find out whether your credit scores are good by getting a VantageScore and a VantageScore Report. The grading scale used by the is A, B, C, D, and F. A is the highest score in this scale ranging between F is a bad score in this scale, ranging between It is a general belief that if you have a good VantageScore, the other credit scores are bound to be good. It is unlikely that anybody will get a "perfect" credit score. The reason is if you have a credit, then there is likely to be some risks. This will be reflected in your credit score. Keep in mind that the lenders will not look out for the perfect score. They would want only a good credit score. Source: Buzzle.com® -

HOW MUCH WILL CREDIT SLIP-UPS LOWER A FICO SCORE?
If your FICO score is 680, a 30-day delinquency drops it by 60 to 80 points; maxing out a credit card costs 10 to 30 points; a foreclosure cost 85 – 105; and declaring bankruptcy shrinks it by 130 to 150. If those same missteps are made by the owner of a 780 FICO score with few signs of risky credit behavior in the past, the number of points lost could be about 50 percent higher in each case. Source: Ask Sid, hhtp://bulleting.aarp.org March 2010

DYK - borrowing is about more than just your credit score.
Banks often dig even deeper in an effort to find the best borrowers and weed out those who might be at risk of defaulting down the line. Here's what else they may be looking at: Behavior scores. These scores have always been around, but they may be more important right now, says John Ulzheimer, president of consumer education for SmartCredit.com. A behavior score monitors your performance on one account, looking at historical credit limits, whether you pay in full or carry a revolving balance, in which you use the card, if you've ever gone over your limit. These are things that aren't necessarily on your credit report. These scores stay within that one lender's files — so if you have a credit card with Citibank and a credit card with Capital One, each bank has a behavior score for you based solely on your performance with their card. When you call and ask for an interest-rate reduction, or a credit-limit increase, the bank will likely look at your behavior score and your credit score. You don't have access to your behavior score, so the key takeaway here is that if you have a good credit score, need a new credit card and you're declined by your current lender, it might make sense to try a new lender. Sites such as lowcards.com and cardratings.com will tell you what kind of credit score is required for the cards featured. Source: Your bank may be looking at more than credit score, TIMES-DISPATCH STAFF, February 17, 2011, Jean Chatzky is an editor-at-large at Money magazine and serves as AOL's official Money Coach. She is the personal finance editor for NBC's "Today" show. Her website is

DYK - borrowing is about more than just your credit score.
Banks and lenders are increasingly running additional checks on loan applicants. It used to be people could qualify for large transactions based on a credit score and now more lenders want income verification, too. Other consumer reports provide records on check fraud, driving violations and rental histories. As long as there is a valid interest – say a landlord who wants to check an applicant’s rental records – your permission isn’t needed for those reports to be pulled. Prospective employers, however, need permission to obtain any type of consumer report on an applicant. It’s not uncommon for companies to run background screenings on prospective hires to check for criminal histories. For high level positions a company might also request permission to verify past employment, salary or education. As with credit reports, companies are required to disclose if a consumer report was the basis for denying a job, loan or other service. And you are entitled to a free copy of that report. Source: EYES AND WHYS ON CREDIT, by Candice Choi, Associated Press, St. Petersburg Times, April 4, 2010

Rule of 72 The 'Rule of 72' is a simplified way to determine how long an investment will take to double, given a fixed annual rate of interest. By dividing 72 by the annual rate of return, investors can get a rough estimate of how many years it will take for the initial investment to duplicate itself. For example, the rule of 72 states that $1 invested at 10% would take 7.2 years ((72/10) = 7.2) to turn into $2. In reality, a 10% investment will take 7.3 years to double ((1.10^7.3 = 2). Source: Investopedia -

Difference (#) of Years
When dealing with low rates of return, the Rule of 72 is fairly accurate. This chart compares the numbers given by the rule of 72 and the actual number of years it takes an investment to double. Rate of Return Rule of 72 Actual # of Years Difference (#) of Years 2% 36.0 35 1.0 3% 24.0 23.45 0.6 5% 14.4 14.21 0.2 7% 10.3 10.24 0.0 9% 8.0 8.04 12% 6.0 6.12 0.1 25% 2.9 3.11 50% 1.4 1.71 0.3 72% 1.28 100% 0.7 1 Notice that, although it gives a quick rough estimate, the rule of 72 gets less precise as rates of return become higher. Therefore, when dealing with higher rates, it's best to calculate the precise number of years algebraically by means of the future value formula. Source: Investopedia -

Keep Money In Its Place People who say they value money highly report that they are less happy in life than those who care more about love and friends. Source: September 2007 MONEY Magazine MEDebt Solutions/EAS Group

Income and Happyness Researchers have found that greater income and wealth lead to greater happiness. However, it is relative to our expectations. Aspirations grow along with income, and undercut the favorable effect of income growth on happiness. People think they will be happier in the future because they think their aspirations will be the same while income grows. Source: Income and Happiness: Towards a Unified Theory, Richard A Rasterlin, The Economic Journal, 111 (July), 465 –484. Royal Economic Society 2001 APTA – Member Benefit Education Finance Program

More Money ≠ More Happyness
After you cover the basics, being much richer doesn’t make you much happier. 42% of people with incomes of $50k - $89K and 43% of people with incomes of $90k – plus are “VERY HAPPY” Source: September 2007 MONEY Magazine

The Pursuit of Happyness
A man or woman earning $500,000 a year is not usually 10 times as happy as a person earning $50,000 a year. The $50,000 earner still enjoys most of the conveniences of the modern world. Even if more money makes people happier, it appears to so at a declining rate, which places a natural check on the inequality of happiness. Source: Incomes and Inequality: What the Numbers Don’t Tell Us, Economic Scene, by Tyler Cowen, professor of economics at George Mason University and co-author of a blog at January 25, 2007, The New York Times MEDebt Solutions - Informed Solutions For Student Loans, Debt, Money & Beyond

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