Zac at Money Journal wrote an excellent article entitled Family’s Retirement Ruined Over Student Loan Co-Sign about a worst case scenario with student loan debt. He goes into detail about a situation in which a couple co-signed for their daughter to go to school and a few years later she passed away, after becoming a mother. Unfortunately the banks would not discharge the debt. This is a cautionary tale that instills in me one important lesson, IF you are to co-sign for student loans, protect against the unthinkable by taking out a life insurance policy on your child. Without the education, paying off tens of thousands or hundreds of thousands of dollars would be a huge burden in addition to the burdens put in place by the loss of a loved one. A $100,000 15 year policy on an 18 year old is about $8 a month.
Eric at No Nonsense Landord posted a compelling rationale for why he paid off a rental mortgage early in his article I Paid Off My Mortgage!! Eric goes into detail about why he chose not to use the cash for other investments and doesn’t need it sitting around in a bank account earning nothing. Paying off the mortgage allowed him to increase his rental cash flow by over $13K a year.
Brian at Luke1428 wrote Repairs and Maintenance Landlords Should Complete Between Tenants. In this article not only does Brian explain what adjustments to make and why, he also talks about properly budgeting for this cost. I will certainly be applying most of the items on this list when my tenant moves out in December.
Sam at Financial Samurai wrote a great article Do You Make As Much As A Union Worker Electrician about his friend, an electrician whose income was quite a bit more than he expected. This guy’s experience provides more information for the argument that college isn’t necessarily the best route for everyone. Although I don’t make anywhere near what Leroy the Electrician makes, being a skilled trade worker has provided me with a flexible, lucrative, and challenging field.
What are some of your favorite articles this month?