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The average student loan payment, according to, is $393 a month. That represents almost 20% of the monthly household income after taxes. During your prime working years, you may be tempted to postpone saving for retirement or maxing out your 401K contribution. If you’re on a federal income-based repayment plan, however, saving for retirement while paying off your student loans may actually reduce your monthly student loan payment.

Most federal repayment plans calculate your monthly payment based on your adjusted gross income (your net pay after deductions for taxes). The lower your net income take-home pay, the lower your monthly student loan payment may be. Not all federal repayment plans will result in a lower monthly payment. The eligible repayment plans include:

  •   Revised Pay as You Earn Repayment Plan (REPAYE)

In 2019, the U.S. Census Bureau, determined that the average national retirement age was between 63 and 64 for men and 62 for women. Most Americans agree that in retirement they’ll need saving to supplement Social Security benefits. Social Security alone will not get them through retirement. The current life expectancy for Americans is 78.93.

Social Security benefits accounts for close to 40% of your pre-retirement income. The average Social Security monthly benefit in 2018 was $1,409.91 a month, or about $16,919 a year. You will need savings to cover the other 60% through a combination of cash, 401k, and other retirement accounts for income. Schwab conducted a survey of its  401k plan participants and found that the participants themselves calculated they’ll need savings of $1.7 million on average to get through retirement.  

To figure out how much money you’ll need to support yourself in retirement consider the following:

Millions of Americans are expected to experience a drop in their FICO score when the Fair Isaac Corporation, the company that invented the FICO score, modifies the methodology they use to determine a consumer’s FICO score. Beginning in the summer of 2020, lenders may opt to use the new methodology when assessing the creditworthiness of a consumer when extending credit and setting interest rates on mortgages and consumer loans, such as credit card or automobile loans.

Link between consumer behavior and your FICO score

Consumers with fair credit, growing debt, who take out personal loans to consolidate debt, or who are about to max out their credit cards are expected to see a negative impact to their FICO credit score. The Fair Isaac Corporation updates its scoring model every few years. The last time significant changes were implemented was in 2014, where it was thought that credit restrictions were lessoned. For individuals with little to no credit, utility payment histories, rental payment histories, and the elimination of civil judgments from individual’s credit histories, helped bolster their credit score.

It’s not too late to start thinking about an estate plan, if you have not created one for yourself. Even if you already have an estate plan, at least once a year, you should evaluate your plan to make sure that it continues to provide for you and your family as you desire. By now, the holiday season has come and gone. If you postponed tackling resolutions of planning for retirement, saving more money, or even getting your financial affairs in order, start today. Careful estate planning can help ensure that the period leading up to your death and death is less difficult and stressful for your family financially.

Before you can create an estate plan that is right for you and your family, deep thinking, is in order. You may want to consider the following to help set the mental framework for this exercise.

If you do not have an estate plan . . .

In-vitro fertilization, also known as IVF, has its origins in the 1890’s when the first known case of embryo transplantation occurred in rabbits in Great Britain. By 1973, scientists were able to transplant a human embryo into a woman. The first human IVF pregnancy occurred 47 years ago in Melbourne, Australia. In addition to IVF there are other assisted reproductive technologies, commonly called ART for short, that have changed human conception, such as artificial insemination and surrogacy that have made parenthood possible for people who are unable to reproduce naturally.

Significant changes are afoot in the area of estate planning of such families as more children are born from ART methods for reproduction. The Centers for Disease Control and Prevention (CDC) estimates that 1.8% of all infants born in the United States were aided by ART methods. In the context of estate planning, there are two main issues ART families should tackle. First, how parentage and descendants are defined for legal purposes, such as maintenance and inheritance. Second, is who controls the disposition of stored genetic material that has not been used.  

Are all children descendants, legally speaking, of course?

The conventional wisdom is to wait and not claim Social Security benefits until you are over 66 (the full retirement age for individuals born between 1943 and 1954). Full retirement age is calculated by year of birth. To see what your full retirement age is click here, or review the website maintained by the Social Security Administration ( The reason choosing when to begin claiming Social Security benefits is a big decision that will impact the size of your monthly benefit amount or checks for the rest of your life. For example, if you have a full retirement age of 67 and wait until age 70 to begin claiming Social Security benefits, you’ll receive your full benefit amount plus an extra 24% each month for the rest of your life.

Delaying benefits however isn’t right for everyone, and it may make sense for you to claim your benefits as early as possible, or age 62, (the earliest retirement age for individuals born between 1943 and 1954). Again, to determine when you can claim your benefits, click here. Three reasons why claiming your retirement benefits through the Social Security program may be right for you are as follows:


  • Your retirement years are limited.

After decades together, there are still couples who do not share information about their finances with each other. Some couples separate their money – mine, yours, and ours. They too often get caught in the same position, having very little knowledge about their spouse’s money.

The problem is compounded in household’s where one spouse worked outside the home. The stay at home spouse may not have a separate stockpile of money and investments and is wholly financially dependent on the other spouse.  The working spouse in this scenario, usually manages the family’s bank accounts and makes the financial decisions. The non-working spouse trusts the information the working spouse provides and goes along with the plan.

Without a financial power of attorney, one spouse has no way of knowing what the other spouse has by way of cash, investments, life insurance policies, stocks and bonds, pensions, and retirement accounts. Unless, the accounts are held jointly, even if you are legally married, you will not receive financial information from any financial institution about your spouse’s accounts.

The general consensus is that Social Security replaces around 40% of your pre-retirement income. The reality is that half of all single people depend on their Social Security benefits to replace close to 90% of their pre-retirement income, says the Social Security Administration (SSA). From the start, the only way for you to survive retirement is to cut your living expenses to 40% of your working income.

For married couples, the outlook is better. One spouse, usually the one who may never have worked or earned less than the other spouse, is able to receive Social Security benefits based on the other spouse’s work record. Because that spouse is married, his or her Social Security benefits will be higher than a single person. According to the SSA, only 21% of married couples depend on their checks for at least 90% of their retirement income.

If you are single and divorced, in some circumstances, you too can receive Social Security benefits based on your ex-spouse’s work record, even if your ex has remarried. You may be surprised to learn that there are few eligibility requirements you’ll have to meet in order to claim benefits based on your ex’s work record. To qualify for Social Security benefits based on your ex’s work record:

If you’re eligible for divorce benefits from the Social Security Administration (SSA), you can collect up to 50% of the amount your former spouse is eligible to receive by claiming your benefits at his or her full retirement age (FRA).

Your FRA is either 66, 66 plus a few months, or 67, depending on the year you were born. The earliest you can claim Social Security benefits is 62. If you claim benefits before your FRA, your Social Security benefits will be permanently reduced by as much as 30%. You can only receive your full Social Security benefit amount if you claim benefits at your FRA.

You cannot double dip

Estate planning around your child’s partner is concerning for many parents. Shielding your assets from your child’s spouse in the event of divorce is possible and can be a part of your estate plan. The reasons for wanting to shield your assets from your child’s spouse are varied and packed with emotions and feelings. Some parents wish to pass their property down within their own bloodline. Other parents themselves are also divorced and worry about how their child’s inheritance may wind-up down the road if there is a divorce or a new family in the picture. And some parents, even after years of their child being married, still do not like their spouse.

It is upsetting to a child when his or her parents disapprove of their spouse. Some families are discreet about their true feeling, while others make it well-known. No matter where you fall in the spectrum of possibilities, there are ways to prepare your estate plan that may take away some of your worries that your child’s inheritance will be squandered away when you die because of his or her relationships while avoiding the emotional time-bomb of revealing your true feelings about your child’s spouse to your child.

The most effective way to shield your assets from your child’s spouse is to have your child and his or her spouse enter a prenuptial agreement before they get married. While this may be the best solution, it is also the most emotionally charged and wrought with difficulties. If you push to hard, legally, it may be a ground to invalidate the prenuptial agreement, because such agreements need to be voluntary to be enforceable.  Trusts are an emotion-free method to communicate and exercise your feelings about your child’s choices without articulately them to all who would here.

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