Given the fighting in Syria, anti-government protests in Hong Kong, the down to the wire vote on Brexit, the expanding U.S. impeachment inquiry, not to mention ongoing trade conflicts between the U.S. and China, the U.S. and the European Union and South Korea and Japan, it’s easy to understand why people are worried about the current state of the globe.
Impeachment! Brexit! Trade Talks! There’s a lot to take in, and no, you shouldn’t try to game out how any of these events will impact your investments, because these is no precedent for the conditions that exist. Instead of going back in time to recreate what could happen, your time would be better spent focusing on an area that is within your control: the college financing process.
When I talk about funding college, I proffer the usual advice: Build your family’s financial foundation (pay down debt, establish an emergency reserve fund, and maximize retirement plan contributions) BEFORE trying to tackle college funding; talk to your kid as early as freshman year in high school about what the family can afford; and don’t shortchange your own or your child’s financial future by amassing mounds of debt.
Last week, the European Central Bank cut its benchmark interest rate to a record low of -0.5 percent. That’s right, MINUS! Big commercial banks now have to pay the ECB a little bit more for the privilege of keeping money in reserve.