The grand homecoming of the Annual Conference of African American Financial Professionals (CAAFP), hosted by The American College of Financial Services—the nation’s largest accredited, non-profit educational institution devoted to financial services, will be held in Washington, D.C. August 8—10, 2022. 

This marks the 16th year of The College hosting the CAAFP, featuring inspiring and thought-provoking sessions led by change agents and industry experts delivering timely and engaging information, continuing education credit, entertainment, and more. 

The three-day event makes a celebratory return to an in-person gathering following 2020 and 2021’s highly successful all-virtual conferences. The year’s conference will focus on our dynamic and powerful community; advancing strategies for economic empowerment across generations; and strengthening impact and transformational change with the theme of “Homecoming: Empowering Our Legacy.” 

There will be a wide range of sessions covering a variety of personal and professional development topics with a focus on narrowing the wealth gap in African American communities. Guests will hear from thought leaders from a variety of backgrounds, including Morgan Stanley Senior Client Advisor Carla Harris; Fidelity Charitable President Jacob Pruitt; and NBA-superstar Dwight Howard. Sessions will tie back to four main themes: Connecting with colleagues and friends in the tradition of homecoming; Building industry knowledge and career insights; Strengthening and engaging intergenerational networks; and Advancing the groundbreaking initiatives of the American College’s Center for Economic Empowerment and Equality. 

"The Conference of African American Financial Professionals started as an educational experiment over fifteen years ago and is now the largest gathering of its kind, within financial services, with a mission to advance, connect and empower African Americans working in the profession," says George Nichols III, President, and CEO of The American College of Financial Services. "As the nation's leading financial services educator, we look forward to gathering with this outstanding community and introducing innovative programs to empower future generations of Black financial professionals." 

The CAAFP helps uplift Black professionals and promote the advancement of all underserved and underrepresented communities through education and empowerment as we seek to narrow the wealth gap and create sustainable, generational change.

ABOUT THE AMERICAN COLLEGE OF FINANCIAL SERVICES 

Founded in 1927, The American College of Financial Services is the nation’s largest nonprofit educational institution devoted to financial services professionals. Holding the highest level of academic accreditation, The College has educated over 200,000 professionals across the United States through certificate, designation, and graduate degree programs. Its portfolio of applied knowledge also includes just-in-time learning and consumer financial education programs. The College’s faculty represents some of the foremost thought leaders in the financial services industry. Visit TheAmericanCollege.edu and connect with us on LinkedIn, Twitter, Instagram, Facebook, and YouTube. Discover all the ways you can expand your opportunities with us.

Based solely on the feedback provided through an employee survey, The College has been named a Top Workplace in Philadelphia for midsized companies. 

“Our people are what make us great, and we strive to ensure The American College of Financial Services provides a positive work environment and supportive culture for our workforce of exceptionally talented individuals,” said George Nichols III, President and CEO of The College. “We are honored to be recognized as a Top Workplace for a second year because this shows that our employees feel heard, challenged by a high-performance culture, valued and are connecting with our vision.” 

Under the leadership of President Nichols, The College’s commitment to building a collaborative and inclusive work culture remains a priority. With faculty and staff across the country, keeping the workforce connected and engaged is integral to its continued success as a growing and dynamic company. The College can affect this kind of culture change through the advocacy and ideas of The College’s culture committee, leadership training, frequent employee surveys, virtual and in-person events, and a clear mission and vision to rally around. 

The Top Workplaces list is based solely on employee feedback gathered through a third-party survey administered by employee engagement technology partner Energage LLC. The anonymous survey uniquely measures 15 culture drivers that are critical to the success of any organization: including alignment, execution, and connection, to name a few. The College also received specific badges for certain culture drivers ranked in the top 25% of organizations in our mid-sized company benchmark surveyed in the last 12 months, including: 

• Clued-in Employees – Employees feel well-informed about the important decisions at The College 
• Trusted Leader – Employees have confidence in the leader of The College 
• Company Direction – Employees believe The College is going in the right direction 

“Earning a Top Workplaces award is a badge of honor for companies, especially because it comes authentically from their employees,” said Eric Rubino, Energage CEO. “That's something to be proud of. In today's market, leaders must ensure they’re allowing employees to have a voice and be heard. That's paramount. Top Workplaces do this, and it pays dividends.” 

ABOUT THE AMERICAN COLLEGE OF FINANCIAL SERVICES 

Founded in 1927, The American College of Financial Services is the nation’s largest nonprofit educational institution devoted to financial services professionals. Holding the highest level of academic accreditation, The College has educated over 200,000 professionals across the United States through certificate, designation, and graduate degree programs. Its portfolio of applied knowledge also includes just-in-time learning and consumer financial education programs. The College’s faculty represents some of the foremost thought leaders in the financial services industry. Visit TheAmericanCollege.edu and connect with us on LinkedIn, Twitter, Instagram, Facebook, and YouTube. Discover all the ways you can expand your opportunities with us.

ABOUT ENERGAGE

Making the world a better place to work together.^TM 

Energage is a purpose-driven company that helps organizations turn employee feedback into useful business intelligence and credible employer recognition through Top Workplaces. Built on 14 years of culture research and the results from 23 million employees surveyed across more than 70,000 organizations, Energage delivers the most accurate competitive benchmark available. With access to a unique combination of patented analytic tools and expert guidance, Energage customers lead the competition with an engaged workforce and an opportunity to gain recognition for their people-first approach to culture. For more information or to nominate your organization, visit energage.com or topworkplaces.com.

On September 15, 2022, at the National Constitution Center in Philadelphia, Pennsylvania, the premier scholarship fundraising and networking event will feature thought-provoking content and a moving, patriotic award ceremony. The Clambake's generous supporters, including the event’s Diamond sponsor and the Center’s Founding Partner and Sponsor, Penn Mutual, have provided educational support and career opportunities to more than 1,200 men, women, and their spouses. In 2022, the Center aims to award 400 full scholarships. 

“Making a positive impact in the lives of those who have honorably served our country and assisting them with a viable second career is at the heart of the mission of the Center for Military and Veterans Affairs," said Jim Roy, PMP, USAF (Ret.), Executive Director of the American College Center for Military and Veterans Affairs. "We are tremendously grateful for the continued support and the opportunity to collaborate with others seeking to uplift our nations’ heroes.” 

A key component of the Clambake is The American College Soldier-Citizen Award, established in 2014 to recognize extraordinary individuals who have served honorably in the United States military, have achieved success in the financial services profession, and have selflessly given back to society and their community. The 2022 Solder Citizen Award Recipient is General Lester L. Lyles, USAF (Ret.). 

In his last assignment before retiring from the Air Force, General Lyles served as the Commander of the Air Force Materiel Command of Wright-Patterson Air Force Base, Ohio. The command conducts research, development, test and evaluation, and provides acquisition management services and logistics support necessary to keep Air Force weapons systems ready for war. General Lyles, a distinguished graduate of the Howard University ROTC program, served in various Air Force assignments including Vice Chief of Staff at Headquarters U.S. Air Force and Director of the Ballistic Missile Defense Organization. 

"I am both humbled to accept The American College of Financial Services’ 8th Soldier Citizen Award, and proud to join the ranks of impressive leaders previously selected,” said General Lyles. “The same passion to help service members and their families in improving their own quality of life guided me during my 15 years on the Board of USAA - the last eight years of which I served as the Chairman of the Board. Servant leadership is much like being a Soldier Citizen; it requires selfless sacrifice and commitment to helping others.” 

The Center for Military and Veterans Affairs has experienced explosive growth since its launch in 2012 thanks to impressive support from corporate and private donors, as well as word-of-mouth advocacy from scholars. September 11, 2022, marks the 10-year anniversary of Penn Mutual as the Center for Military and Veterans Affairs’ Founding Partner and Sponsor. The annual Clambake continues to generate professional interest and garner financial support for the important mission of the Center. 

“We’re proud to be an active, longtime sponsor of The American College Center for Military and Veterans Affairs,” said Thomas H. Harris, CLU®, ChFC®, President, Life Insurance and Annuities, The Penn Mutual Life Insurance Company. “We salute General Lyles for his inspired leadership and celebrate his lasting impact on the Center’s meaningful outreach programs, which elevate financial professionals to better serve their clients.” 

“The Clambake is a time to come together to celebrate sacrifice, success and service,” said George Nichols III, President and CEO of The American College of Financial Services. “We thank our generous supporters who have helped us to make a measurable impact in our collective mission to transform the lives of our active-duty, guard, and reserve service members, veterans, and their families.” 

ABOUT THE AMERICAN COLLEGE OF FINANCIAL SERVICES 

Founded in 1927, The American College of Financial Services is the nation’s largest nonprofit educational institution devoted to financial services professionals. Holding the highest level of academic accreditation, The College has educated over 200,000 professionals across the United States through certificate, designation, and graduate degree programs. Its portfolio of applied knowledge also includes just-in-time learning and consumer financial education programs. The College’s faculty represents some of the foremost thought leaders in the financial services industry. Visit TheAmericanCollege.edu and connect with us on LinkedIn, Twitter, Instagram, Facebook, and YouTube. Discover all the ways you can expand your opportunities with us.

Carter brings decades of financial services and leadership experience, and his expertise will support The College as a trusted source of applied financial knowledge and education. 

“Brandon is a standout leader, and we are pleased to welcome him to The American College of Financial Services Board of Trustees,” says George Nichols III, President and CEO at The American College of Financial Services. “As The College grows and we implement our strategic plan, it is especially important that our Board includes consummate professionals, like him, to help us in our goal to bring students and alumni on a lifelong journey of learning and provide applied financial knowledge and education to everyone who needs it. His deep passion and professional success in supporting our military, veterans, reservists, and their spouses also aligns with the work and our desired expansion of the American College Center for Military and Veterans Affairs.” 

As Chairman and President, Carter oversees the USAA Life Insurance Company and multiple subsidiaries and is responsible for the strategy and operations for product management and distribution, actuary, underwriting, servicing, and claims across the life, health and annuity portfolio. He is leading the digital transformation of the business while preserving USAA’s legendary service. Carter is a member of USAA’s Executive Council, which oversees the strategy and day-to-day operations of USAA’s companies and staff agencies. The USAA family of companies provides insurance, banking and investment and retirement solutions to more than 13 million current and former members of the U.S. military and their families. 

“It’s an honor to serve on the Board of The American College of Financial Services, an institution that shares USAA’s and my commitment to help the people of our nation lead lives of financial wellness, supported by financial professionals with the expertise to lead them.” Carter says. “The College has a robust reserve of talent and knowledge and I look forward to being a part of an organization that delivers the highest quality education to the professionals entrusted with the public’s financial well-being.” 

Prior to his current role, Carter served as General Manager of USAA’s Phoenix Campus, with site management of the expanding facility and its more than 3,000 employees, external community relations, and support for USAA's military affairs and government relations for the State of Arizona. His additional responsibilities included serving as Vice President of Experience Management, leading the transformational journey to a relationship sales culture, marketing campaigns and design capabilities that deliver world-class member experiences. 

Carter joined USAA in 1997, and over his 25-year USAA career has excelled in multiple executive leadership positions focused on sales, marketing, service, operational efficiency, and transformation. He currently holds the Chartered Life Underwriter® (CLU®) and Chartered Financial Consultant® (ChFC®) designations and is a CERTIFIED FINANCIAL PLANNER™ (CFP®). Carter sits on the Board of Directors for the American Council of Life Insurers (ACLI) and is past Chair of LL Global, the parent company of LIMRA and LOMA. He is also an active board member for Tragedy Assistance Program for Survivors (TAPS), a non-profit organization providing comfort, care and resources to families grieving the death of a military loved one. He graduated from Texas A&M University with a Bachelor of Business Administration in Management. Carter and his wife, Sherri, and their three children reside in San Antonio, Texas. 

ABOUT THE AMERICAN COLLEGE OF FINANCIAL SERVICES 

Founded in 1927, The American College of Financial Services is the nation’s largest nonprofit educational institution devoted to financial services professionals. Holding the highest level of academic accreditation, The College has educated over 200,000 professionals across the United States through certificate, designation, and graduate degree programs. Its portfolio of applied knowledge also includes just-in-time learning and consumer financial education programs. The College’s faculty represents some of the foremost thought leaders in the financial services industry. Visit TheAmericanCollege.edu and connect with us on LinkedIn, Twitter, Instagram, Facebook, and YouTube. Discover all the ways you can expand your opportunities with us.

The College is proud to honor several individuals at the year-end gala who have made significant and meaningful contributions to its programs and initiatives, the financial services industry, and the benefit of society. These honors include the Solomon S. Huebner Gold Medal, the President’s Award, the NextGen Financial Services Professional Awards, and the 2022 Alumni Hall of Fame induction. 

“This year's distinguished award honorees have achieved the kind of success in their fields that inspire us all. Still, it's their character, commitment to their communities, and passion for helping The College succeed in our vision that truly sets them apart," said George Nichols III, President and CEO of The American College of Financial Services. "It gives me great pleasure to honor them with distinction at this year's President's Dinner and 95th Anniversary celebration." 

Presented annually since 1975, The College’s Huebner Gold Medal is named for Solomon S. Huebner—financial services, education, and insurance pioneer who founded The College in 1927. Individuals receiving the Huebner Gold Medal, the highest honor bestowed by The College, are those whose leadership and support have advanced the mission of The College in significant ways. The College honors J. Scott Davison, CLU®, ChFC®, Chairman, President, and CEO of OneAmerica, with the 2022 Solomon S. Huebner Gold Medal. As a College Board of Trustees member since 2011 and chairperson from 2020-2022, Davison helped lead the institution into an exciting new era. 

Established in 2005, the Alumni Hall of Fame award recognizes a graduate who has made extraordinary contributions in time, talent, and treasure to the institution, their community, and the financial services profession. This year’s Alumni Hall of Fame inductee is Mark Weber, JD, MSFS, CLU®, ChFC®, CAP®, Philanthropic Consultant at Legacy Spectrum Advisor and creator of The College’s A Spectrum of Legacies educational program. Weber embodies a passion for philanthropy which he has infused into The College’s Chartered Advisor in Philanthropy® (CAP®) Program, the Omaha CAP® Study Group Program, and over 130 difference-makers serving to advance philanthropy. 

Conferred by the President and CEO of The American College of Financial Services, the President’s Award recognizes the extraordinary leadership and generosity of benefactors and volunteers for The College. Leyla A. Lesina, ChFC®, CLU®, Senior Vice President and Head of Individual Markets Distribution at Guardian Life is the recipient of this year's President's Award for her personal philanthropy and commitment of time to championing a critical partnership that propelled The College's initiatives to support of underserved communities. 

The NextGen Financial Services Professional Award is given each year to a group of talented and deserving young professionals under forty whose contributions are making a significant impact on the industry. The 2022 group of award recipients include: 

• Matt Riley, ChFC®, CLU®, ChSNC®, Fiduciary Officer and Vice President at TS Prosperity Group 
• Kyle Kuyat, CFP®, ChFC®, RICP®, Partner at Sugar Magnolia Wealth Advisors and Managing Director at Silver Oak Securities 
• Ashton Lawrence, CFP®, ChFC®, AIF®, Partner at Goldfinch Wealth 
• Joshua Rosenberg, ChFC®, CLU®, CCFC®, Partner at Nabell Winslow Investments and Wealth Management 
• Stephanie Hohenshell, RICP®, LACP®, LUTCF®, Founder of the Hohenshell Agency 

For those who want to offer congratulations to the 2022 honorees, The College is accepting President's Dinner tributes in the form of donations that will allow the institution to continue to serve the industry and benefit society. 

ABOUT THE AMERICAN COLLEGE OF FINANCIAL SERVICES 

Founded in 1927, The American College of Financial Services is the nation’s largest nonprofit educational institution devoted to financial services professionals. Holding the highest level of academic accreditation, The College has educated over 200,000 professionals across the United States through certificate, designation, and graduate degree programs. Its portfolio of applied knowledge also includes just-in-time learning and consumer financial education programs. The College’s faculty represents some of the foremost thought leaders in the financial services industry. Visit TheAmericanCollege.edu and connect with us on LinkedIn, Twitter, Instagram, Facebook, and YouTube. Discover all the ways you can expand your opportunities with us.

This commitment marks the company’s second significant contribution in support of The College’s efforts to expand its near century of financial education expertise to additional audiences, so that all segments of society can prosper. 

“Truist’s generous support is empowering innovative initiatives designed to advance financial education equity, leadership development, and new career pathways for underserved communities," said George Nichols III, president and CEO of The American College of Financial Services. "The College is tremendously grateful to Truist for their continued partnership as we both work to advance a shared mission to diversify the financial services industry.” 

The grant funds will help expand the audiences that The College currently serves by democratizing financial education, ensuring inclusive access to financial services, and promoting diversity and retention in the profession. 

“In recognition of Truist Insurance Holding’s 100th anniversary, the Truist Charitable Fund grant will help The American College of Financial Services support programming to build career pathways and promote educational equity and leadership development,” said John Howard, chairman and CEO of Truist Insurance Holdings and chairman of the board of The College. “These goals tie directly to our purpose to inspire and build better lives and communities, while expanding financial services programs so that all segments of society can prosper.” 

In April 2022, Truist Foundation made a $500,000 grant to support the development and a pilot cohort of the Black Executive Leadership Program – tying back to pillar three of The College Center of Excellence the American Center for Economic Empowerment and Equality®’s Four Steps Forward initiative focusing on an executive leadership program for up-and-coming Black leaders. 

Since launching the Center for Economic Empowerment and Equality® in August 2020, over $13 million in corporate, foundation and individual commitments have been made to support Four Steps Forward—the Center’s signature initiative to promote upward mobility and wealth building in Black communities. This funding has helped build the Center’s capacity and launch important initiatives, including: 

• Black Executive Leadership Program – The carefully crafted, culturally-relevant, and customized program is aimed at preparing the next generation of Black leaders to move from middle management into senior management and executive roles, including corporate Board service 
• Know Yourself, Grow Your Wealth – A first-of-its-kind financial education program from The College delivered to the HBCU community 
• Black Women, Trust, and the Financial Services Industry Study – The Center’s first research project focused on a critical community—Black women. The study paints a holistic picture of Black women’s perception of financial services and money, their wants and needs, and their role in the household and the community 

Learn more about the Center for Economic Empowerment and Equality® and our committed partners at Equality.TheAmericanCollege.edu. 

ABOUT THE AMERICAN COLLEGE OF FINANCIAL SERVICES 

Founded in 1927, The American College of Financial Services is the nation’s largest nonprofit educational institution devoted to financial services professionals. Holding the highest level of academic accreditation, The College has educated over 200,000 professionals across the United States through certificate, designation, and graduate degree programs. Its portfolio of applied knowledge also includes just-in-time learning and consumer financial education programs. The College’s faculty represents some of the foremost thought leaders in the financial services industry. Visit TheAmericanCollege.edu and connect with us on LinkedIn, Twitter, Instagram, Facebook, and YouTube. Discover all the ways you can expand your opportunities with us.

ABOUT TRUIST CHARITABLE FUND 

The Truist Charitable Fund is a donor-advised fund advised by Truist and administered by The Winston-Salem Foundation. 

ABOUT TRUIST 

Truist Financial Corporation is a purpose-driven financial services company committed to inspiring and building better lives and communities. Truist has leading market share in many high-growth markets in the country. The company offers a wide range of services including retail, small business and commercial banking; asset management; capital markets; commercial real estate; corporate and institutional banking; insurance; mortgage; payments; specialized lending; and wealth management. Headquartered in Charlotte, North Carolina, Truist is a top 10 U.S. commercial bank. Truist Bank, Member FDIC. Learn more at Truist.com.

Hosted by the American College Center for Women in Financial Services, the two-day event brings hundreds of women from across the industry together for two days of networking, inspiration, and a shared mission to help advance women in the profession. 

Kristin Lemkau, CEO of J.P. Morgan Wealth Management, will be this year’s keynote speaker. In a fireside chat with Wall Street Journal reporter Veronica Dagher, Kristin will discuss her experience taking on a new business and rebuilding the advisor experience at J.P. Morgan Wealth Management. “Whether it’s growing their business or helping a client navigate a major life change, never underestimate the power of a woman in wealth,” said Lemkau. “I’m looking forward to speaking with women who are helping their clients leave a legacy for the next generation.” 

Attendees will honor the recipients of this year’s Women Working in Wealth Awards, created to recognize inspirational women who demonstrate how to advance other women in financial services. The gathering will commence on Tuesday, March 7, 2023, with the networking opportunity, "Clips, Cocktails, and Conversations," a welcome reception followed by a private preview of “$avvy”, a documentary that investigates the historical, cultural, and societal norms around women and money. Attendees will be given access to the full-length documentary after the event to watch with clients, colleagues or anyone who needs to better understand her personal finances. Prior to the conference opening on day two, guests can opt to take part in a walk on Wall Street. 

The Center for Women in Financial Services is committed to promoting the advancement of women in the financial services profession through research, education, and awareness. Part of their work to #EmbraceEquity and #BreaktheBias includes dismantling myths about women and providing tools and resources to women and their allies to create a more inclusive industry. 

This year’s agenda features two tracks: one for practitioners and one for leaders. The practitioner track will provide three hours of CFP® Continuing Education (CE) credits and CE from The College. Attendees will also have access to two additional hours of CE post-event. 

“We are thrilled to be back together on International Women’s Day at the Women Working in Wealth Summit and Awards to support female financial professionals with access to a supportive community and educational opportunities through The American College of Financial Services,” said Hilary Fiorella, Executive Director of The American College Center for Women in Financial Services. “The Center for Women in Financial Services is grateful for this opportunity to gather to share ideas and best practices to help women working in financial services face unique challenges and build their careers.”

ABOUT THE AMERICAN COLLEGE OF FINANCIAL SERVICES 

Founded in 1927, The American College of Financial Services is the nation’s largest nonprofit educational institution devoted to financial services professionals. Holding the highest level of academic accreditation, The College has educated over 200,000 professionals across the United States through certificate, designation, and graduate degree programs. Its portfolio of applied knowledge also includes just-in-time learning and consumer financial education programs. The College’s faculty represents some of the foremost thought leaders in the financial services industry. Visit TheAmericanCollege.edu and connect with us on LinkedIn, Twitter, Instagram, Facebook, and YouTube. Discover all the ways you can expand your opportunities with us.

Except when it’s not. 

Sometimes, it’s smart to take on debt. In fact, there are times when we don’t have any choice. Let’s take a closer look at debt — the good, the bad, and how to tell the difference. 

Student loans 

Borrowing money to finance a college education is a prime example of good debt. It’s not about buying a product that will depreciate, it’s about making an investment, one that will pay itself off, hopefully, many times over. 

And there are numbers to back it up. 

The difference in lifetime earnings between college and high school graduates is estimated to be $1 million. Other forms of educational debt, like the debt you take on for occupational training or to gain additional skills that advance your career, can also be considered good debt. 

Even though student debt may be “good,” you should still weigh your options before you take it on, whether for yourself or your children. To begin with, there's a big difference between tuition at a public university versus an elite private school. Is it worth it? Maybe yes, maybe no. That’s for you to decide, based on factors such as: 

• How much you’ll need to borrow. 
• The field that you (or your child) will enter. 
• Your existing financial obligations. 

There are also signs that help may be on the way. With U.S. student debt at a record $2.6 trillion — second only to mortgages and more than credit cards and car loans — policymakers are debating how to make higher education more affordable. Plans range from free public college for all to generous loan repayment programs tied to income. 

If any of those ideas become a reality, good student debt will get even better. 

Home mortgages 

While a mortgage doesn’t increase your earnings potential, being a homeowner can provide some financial benefits. Your monthly mortgage payments go towards building an asset — home equity — and not to a landlord. 

Taking out a mortgage is often the only route to homeownership. Although the average age of first-time homebuyers is on the rise (the median age was 33 in 2019), few of us can buy our first home with cash. 

Even if you could purchase a house with cash, there are compelling reasons not to. Currently, the interest on a 30-year fixed rate mortgage is at or around 4%. Compare that with the S&P’s annual return, which averages around 10% for every 30-year period since 1926. Instead of having your cash tied up in an illiquid asset — your house — you come out ahead by investing that money in the market. 

But, as with student debt, potential homeowners have choices to make. 

While it’s true that you have to live somewhere, does it have to be in a $1 million home, or would a house at half that price do the trick? Even with the housing crisis in our collective rearview mirror, an estimated 40 million Americans are “house poor” — living in a home they can’t afford. 

The takeaway? You have to consider multiple factors before you determine if a particular debt is good for you. 

Small business loans 

Small business loans may represent more of a risk than other types of good debt— given historical success rates of start-up ventures — but they’re considered “good” based on the same assumption as student loans: You’re investing in yourself. 

The risk of these loans is balanced somewhat by the process you need to go through to get them. Whether you’re looking to borrow from the U.S. Small Business Administration or a bank, you’ll need to meet certain requirements, including personal and business credit scores. The SBA requires you to submit a detailed business plan with your application, so you’ll need to research your industry, identify risks, and set realistic goals. 

One thing is becoming clear: As much as we would like to define good or bad debt in absolute terms, the truth is more gray than black and white. 

New car loans 

We’re definitely in a gray area when it comes to new car loans. 

Having reliable transportation can increase your access to employment, so you could argue that car loans enhance your future earning potential. And for most of us (for better or worse), having a car is a necessity for daily life. 

On the other hand, your first drive out of the dealership in your new wheels is the most expensive trip you’ll take: Cars depreciate at an average rate of 20% in the first year, and 15% a year after that. If you take out a 5-year loan on a new car, you could be “underwater” before the end of the term, meaning you owe more than the car is worth. 

The good news? You have options. You can choose a $35,000 workhorse or an $85,000 show horse. If you buy a late-model used car with low mileage, the original owner takes the biggest depreciation hit. If you must have that new-car smell, try keeping your car after you’ve paid off the loan and putting that monthly payment into a savings account. That way, you can buy your next car in cash or put down a larger deposit and reduce your payments. 

Either way, you’re in the driver’s seat. 

Credit cards 

Regularly putting major expenses on credit cards is seldom a good idea, especially cards that lure consumers with interest-free initial offers and high credit limits. 

Although the average U.S. credit holder’s 2019 balance of $4,293 represents a lower percentage of disposable income than it did during the Great Recession, credit card interest rates have never been higher — 17.41% and counting. 

One problem with credit cards is their ease of use. The ability to pay with smartphones and other devices makes things even worse. And there’s online shopping, which elevates instant gratification and retail therapy to an art form. Try limiting yourself to a debit card that’s connected to your checking account, so you can only spend what you actually have. 

If you don’t need it, and can’t afford it, don’t buy it. 

Payday loans 

While credit card debt is not good, payday loans are even worse. Many workers turn to these lenders out of desperation — for example, to cover a car or home repair —which is never a good time to take on debt. 

Although the interest rates these “cash advance” lenders charge may seem manageable, they’re for shorter terms, usually until the next paycheck in two or four weeks. But on an annual basis, payday loan rates translate to an APR of 391%. 

The advice here is simple: Avoid at all costs. 

In the end, it’s about smart choices 

Like all major life choices, the decision of when and how much debt to take on — and for what — is complicated. Where are you in your career? How secure is your income? What are your financial obligations? Do you have a rainy day fund in place? Are you saving enough for retirement? 

One way to make it simpler is to ask yourself one question: What will this particular purchase mean to me in 15 years? 

How you respond may give you the answer you need, if not the answer you want. 

This content and information was created by a third party and not The College. The College assumes no legal liability for the accuracy, completeness, or usefulness of any such content and information and the views expressed therein do not necessarily represent the views of The College.

Whether you did it yourself, consulted an advisor, or used your company’s 401(k) online planning tool, you had to answer some basic questions, including: what’s your risk tolerance? 

Do you remember your answer? 

Most of us invest for the long-term. We save to prepare for life’s big-ticket items, such as buying a home, starting a family, paying for college, and securing our retirement. While those priorities aren’t likely to change, our tolerance for risk probably will. 

So, whether you remember your answer or not, it makes sense for you to revisit your risk tolerance and adjust your investments accordingly. But how often should you do that? 

As with most financial questions, there’s no clear-cut answer. However, there are some guidelines to help you make the best choices for your situation. 

What does it mean to balance your portfolio? 

A portfolio’s ratio of stocks to bonds is directly related to risk and reward: the higher the percentage of stocks you hold, the more risk you take on in order to increase your chances for higher returns. Over time, the stock market will probably outperform the yield on bonds, but not without some fluctuations along the way. 

Generally speaking, younger investors are willing to take on more risk. While there’s no standard rule of thumb, a mix of 80% stocks and 20% bonds is aggressive, but not overly so. With time on their side, a younger investor can feel confident that the rewards of stocks outweigh their risks.

But for someone close to retirement, that same 80/20 mix may be too risky. If there’s a downturn in the market, there may not be time to rebound, especially as the investor will be drawing down that portfolio when they retire. In that case, a ratio closer to 60/40 would more closely align with the investor’s risk tolerance. 

Takeaway #1:

It’s logical to assume less risk as you get older. 

But the question remains, how — and when — should you adjust your portfolio? 

Sell high and buy low or play the hot hand? 

Suppose you have a portfolio with 80% stocks and 20% bonds. And let’s say that one of your stocks is doing so well that your ratio is now 85% stocks and 15% bonds. Should you reassess your position? 

If you want to maintain your original ratio — and don’t forget, those aren’t just numbers, they reflect your risk tolerance — the answer is yes. The conventional wisdom on how you do that may surprise you: sell your high performing stock and put that money into bonds to get back to your 80/20 balance. Yes, you read correctly: sell what’s making you money and buy more of what isn’t.

There's a solid rationale behind this strategy. If that one stock represents too much of your portfolio, you’re putting yourself at risk if the price plummets — the “too-many-eggs-in-one-basket” problem. This tactic also forces you to practice the “sell high, buy low” philosophy that many of us agree with but few of us follow. That high-performing stock is going to peak at some point, it’s just a matter of when. 

This is a different way to think about risk and reward. What would make you feel worse: selling a stock that continues to perform well, or holding onto a stock that starts to drop? 

Takeaway #2: 

The gains you make with your investments are literally money in the bank. Focus on that and not on what could have been. 

Practice oversight, not micromanagement 

Like being a good parent or a successful boss, avoid micromanagement when it comes to your investments. Even in the best of times, financial markets fluctuate. Events will occur that you have no control over, from pandemics to political upheavals. Unless your livelihood depends solely on the stock market, don’t pay too much attention to the short-term bumps in the road. 

A smarter approach is to monitor significant changes in your own life. If you win the lottery, you should definitely take a hard look at your asset allocation. The same holds true for more realistic occurrences such as a change in marital status, an unexpected inheritance, or a sudden change in your health. 

You can also take solace in a Vanguard study of stock and bond performance since 1926. While it’s true that stocks historically outperform bonds, allocation shifts don’t make that big of a difference in the long run. For example, a 60% stock/40% bond allocation during that period yielded an 8.6% average annual return, while an 80%/20% split yielded 9.4% — not significant enough to keep you up at night. 

Remember it’s a marathon, not a sprint 

While we all want to get the most from our investments, we’re better off taking the long view. Riding a rollercoaster can be thrilling, but it’s not without cost and it’s certainly not for everyone. 

It’s fine to set up a regular schedule to review your portfolio. Most financial advisors meet with their clients at least annually. You can go over your position, ask questions, and discuss your options. If your portfolio’s balance shifts 5% or more, that’s a signal to take a look at your allocations, but you may or may not decide to do anything about it. 

Don’t worry about quick wins or big payoffs. Instead, enjoy the peace of mind that investing in your future brings.

This content and information was created by a third party and not The College. The College assumes no legal liability for the accuracy, completeness, or usefulness of any such content and information and the views expressed therein do not necessarily represent the views of The College.

For example, the advocacy organization Autism Speaks estimates the lifetime cost of caring for a person with autism at $1.4 million. That cost can almost double if the person is impacted by an intellectual disability (having an IQ under 70). 

Most families don’t have the income or personal savings to meet these challenges. That’s why it’s essential to take advantage of all the government benefits that are available to assist families caring for a loved one with special needs. 

If you are caring for a family member with special needs, make sure your financial planning includes these government programs. 

Supplemental Security Income Benefits 

Supplemental Security Income (SSI) is a federally funded program administered by the Social Security Administration (SSA). 

Blind or disabled children and adults are eligible for SSI benefits, as are adults 65 and older who meet the program’s financial criteria. 

The SSI definition of “disabled” is different for children and adults. 

For children: 

• The child must have a physical or mental condition(s) that very seriously limits his or her activities, and 
• The condition(s) must have lasted, or be expected to last, at least one year or result in death.

For adults: 

• The adult has physical or mental condition(s) that results in the inability to do any substantial gainful activity and can be expected to result in death, or 
• The condition has lasted, or can be expected to last, for a continuous period of 12 months or more. 

Visit the SSI homepage for information on the program and on how to apply. Also, know that the Social Security Administration will: 

• Help you complete your application. 
• Make an appointment and pay for a medical exam if the information you currently have isn’t sufficient. 
• In some cases, pay for your travel to the exam. 

Social Security Disability Insurance 

Social Security Disability Insurance (SSDI) is an earned benefit funded by the Social Security tax fund and targeted to people whose physical or mental impairments prevent them from engaging in their normal occupation or other work. That means, even if an individual meets the SSI definition of disabled, that person must have sufficient Social Security work experience to qualify for payments. 

The program includes the Disabled Adult Child (DAC) provision, under which an adult disabled before age 22 may be eligible for child benefits if a parent is deceased or starts receiving retirement or disability benefits. This is called a “child’s benefit” because it is based on the parent’s Social Security earnings. 

The SSA website provides this example of a DAC benefit: 

A worker starts collecting Social Security retirement benefits at age 62. He has a 38-year-old son who has had cerebral palsy since birth. The son will start collecting a disabled "child's" benefit on his father's Social Security record. 

In this case, the adult child is eligible even though he has not worked or contributed to Social Security. Adult children who work can still receive benefits as long as their earnings remain below a level the SSA considers “substantial,” which in 2020 was set at anything over $1,260 a month. 

Check out the SSA guidelines to learn more about SSDI benefits, eligibility, and application process. 

Get professional support 

The SSI and SSDI benefits are just some of what’s available from the government to assist families with special needs. Medicare and Medicaid include provisions that can provide additional financial assistance. 

Even though the SSA website is easy to navigate, these benefits can be complex and challenging to understand. One of the best ways to ensure your loved one receives all their eligible benefits is to work with an advisor who has professional credentials and experience working in special needs planning. 

This content and information was created by a third party and not The College. The College assumes no legal liability for the accuracy, completeness, or usefulness of any such content and information and the views expressed therein do not necessarily represent the views of The College.