Aug 26, 2020
This week on the Grow Money Business podcast we have another mailbag episode. Grant covers four questions from our listeners about student loan payments, the impact of zero dollar trading commissions, selling your stocks due to the current situation in the markets, and the economic impact of the upcoming election.
If you have more questions you’d like us to cover, visit growmoneybusiness.com, and drop your questions in the Mailbag section. Grant will answer your questions in a future episode.
Question 01 – “I heard that I wouldn’t have any student loan payments due for the rest of the year. Should I keep making the payments anyway?”
[03:53] Administrative Forbearance – How the administrative forbearance works and what it means for students and parents.
[05:43] Deciding Whether to Continue Making Payments – Grant reviews several factors you should take into consideration when you’re deciding whether to continue making student loan payments.
[09:09] Refinancing Student Loans – For some borrowers, refinancing a student loan with a private lender makes more sense, depending on the career path they choose. Grant explains the pros and cons of remaining in the federal system and refinancing with a private lender.
Question 02 – “How do we think Robinhood is going to impact trading in the markets?”
[12:48] The Story of Robinhood – Robinhood is a fintech company that was launched in 2013. Over the last couple of years, they managed to push all the major brokerage firms to zero dollar trading commissions. Grant reviews Robinhood’s business model and how they make money without brokerage commissions.
[17:32] The Impact of Robinhood – How Robinhood influenced the industry, how it attracts lots of amateur investors, and what you should take into consideration if you’re utilizing aggressive trading strategies.
Question 03 – “We’ve just had this crazy run-up in stocks. Is now a good time to sell? This just looks completely unsustainable.”
[27:53] Making Decisions for the Long Term – Why it’s essential to focus on optimizing your wealth and plan for the long term.
[30:54] The Impact of National Debt – How the amount of debt we have as a country may affect the markets.
Question 04 – “How will the election impact the markets?”
[38:13] Volatility After Election – Grant explains why we may see a lot of volatility after the election, regardless of who gets elected. He also shares his take on what to expect from each party, in terms of taxation and policies.
Resources:
Coronavirus Turmoil, Free Trades Draw Newbies Into Stock
Market:
wsj.com/articles/coronavirus-turmoil-free-trades-draw-newbies-into-stock-market-11588158001
Coronavirus and Forbearance Info for Students, Borrowers, and
Parents:
studentaid.gov/announcements-events/coronavirus