"Congratulations, Class of 2015. You're the Most Indebted Ever (For Now)."

by Will Becker, AWMA/AIF

Happy Friday!

This week's perspective is about investing... in our youth! This month, about 70 million students are headed back to school, and many of our clients' families are filled with pride (and more than a little angst) as their scholars are among the 21 million students attending American colleges and universities.  Those statistics are from 2014, the most recent statistics I was able to find for this update. A May, 2015 article in the Wall Street Journal said "Congratulations, Class of 2015. You're the Most Indebted Ever (For Now)." Unless you have a student in college or have done a financial plan to prepare financially for college, a headline like that may not convey the degree of financial urgency that today's students (and their families) face. 

So allow me to add this chart, showing the increase in Federal Loans to Students. I thought student loans were getting out of control when I graduated from college last century. But look what has happened since 2009!

In fact, College Tuition & Fees are not just increasing with inflation... they are leading inflation. My daughter is 4 years old, so I have plenty more years for the economics of higher education to get worse!

I am the first to say that a College education is about more than training for a good paying job. I have degrees in Anthropology, after all. That being said, statistically, those without a College Degree are the only educational group since the 1990's to experience double digit unemployment. Unemployment for College Graduates increased to 5% in 2010, but has already declined from there. While higher education is colossally expensive - and increasingly so - it is no less important than ever. If you want to review the college savings plan for your child (or other loved one), just reach out to Janie Beach and set up an appointment. If you know someone that is trying to figure out how to save up for their child's higher education needs, then you are welcome to refer them to us for a consultation. 

We hope all the young scholars heading back to school study hard, make their families proud, and come home safe.

Disclosure: This commentary on this website reflects the personal opinions, viewpoints and analyses of the DeDora Capital, Inc. employees providing such comments, and should not be regarded as a description of advisory services provided by DeDora Capital, Inc. or performance returns of any DeDora Capital, Inc. Investments client. The views reflected in the commentary are subject to change at any time without notice. Nothing on this website constitutes investment advice, performance data or any recommendation that any particular security, portfolio of securities, transaction or investment strategy is suitable for any specific person. Any mention of a particular security and related performance data is not a recommendation to buy or sell that security. DeDora Capital, Inc. manages its clients’ accounts using a variety of investment techniques and strategies, which are not necessarily discussed in the commentary. Investments in securities involve the risk of loss. Past performance is no guarantee of future results.