1. Student Loan Debt & Financial Planning 101
Presented By:
Jimmy Diehl, MBA,CFBS® Financial Advisor, Managing Associate
Wes Yamada- Financial Advisor, Investment Specialist 3003 Oak Road, Suite #250 Walnut Creek, CA (925) (925) fax
Intro- Tawnya & Luke

2. Top Financial Concerns: 1 – 2 years
Managing Student Loan Debt
Protecting income
Job Stability
Emergency Funds
Saving for retirement
Managing cash flow/budget
Saving for a home
Protecting family & business
3 – 10 years in the business
Starting a family
Making smart investment decisions
Looking to upgrade home
Education planning
Seasoned professionals
Protecting wealth
Leaving legacy
Giving back

3. Options for Paying Student Loans
Standard Repayment
10 year repayment period, no prepayment penalty
Extended Repayment
25 year repayment period, no prepayment penalty
Consolidated Federal Loans
Up to 30 year repayment period, no prepayment penalty
Income Based Repayment (IBR)
Payment based on a percentage of Adjusted Gross Income (AGI)
Pay As You Earn (PAYE)
Standard loan- fixed payments 10yrs
Graduated-starts small and grows Extended adds 15yrs (25)
*discretionary income is defined as the amount of adjusted gross income (AGI) above % of the poverty level for the borrower’s household size.
ibrinfo.org
Public Service Loan Forgiveness (PSLF) is a program for federal student loan borrowers who work in certain kinds of jobs. It will forgive remaining debt after 10 years of eligible employment and qualifying loan payments. (During those 10 years, the Income-Based Repayment (IBR) plan can help keep your loan payments affordable.)

4. Options for Paying Student Loans
Standard loan- fixed payments 10yrs
Graduated-starts small and grows Extended adds 15yrs (25)
*discretionary income is defined as the amount of adjusted gross income (AGI) above % of the poverty level for the borrower’s household size.
ibrinfo.org
Public Service Loan Forgiveness (PSLF) is a program for federal student loan borrowers who work in certain kinds of jobs. It will forgive remaining debt after 10 years of eligible employment and qualifying loan payments. (During those 10 years, the Income-Based Repayment (IBR) plan can help keep your loan payments affordable.)

7. What is the objective? Accumulation Distribution
What is the objective of any journey?
Where is the main focus?

8. Need to plan for unknown
Contingencies
Flexibility

9. The Problem
We all make financial decisions. The problem is we make them:
One at a time
At different times
With different people
Under different circumstances

10. The Model
Tawnya

11. The Model
Tawnya

12. The Model

13. Model works under any economic conditionP R O T E C I N
Model works under any economic condition
Coordinated/Integrated
Test, Measure, Verify Strategies S A V I N G
Organized
Flexible G R O W T H

14. Starting Professional Program
Luke
No Financial underwriting
First 2 years $4,000
Senior Vet Students $3000

15. Income Protection DI Income Protection Luke
Income is your biggest wealth building tool. Without it who will pay rent/mortgage, Student Loans, retirement medical expenses, cellphone bill?

16. The Value of Time

17. How exactly does this work?
$1,000,000
               
“Compound interest is the eighth wonder of the world.
He who understands it, earns it ... he who doesn't ... pays it.”
― Albert Einstein
$838,016
Value
$389,927
$139,716
$10,000
1-10
11-20
21-30 30
TIME
$300,000

18. What happens when we skip a year?
A 30 year old that plans to retire at 60 has a 30 year time horizon
Most people don’t extend their retirement age because they skipped a year of savings
If this same person starts saving at 35, what impact does this have?

19. $838,016 – $581,563
$256,453
$1,000,000
$838,016
Value
$581,563
$389,927
$139,716
$10,000
1-10
11-20
21-30
21-25 30
TIME
$300,000

20. TAX TRIANGLE Post Tax Post Tax Pre Tax Roth IRA 529 Plans Muni Bonds
Cash Value L.I.
Post Tax
Pre Tax
Tax- Free
Partially Taxed
Fully Taxed
Stocks
Bonds
Mutual Funds
Social Security
CD’s
Real Estate
401(k)
403(b)
457
SEP IRA
Traditional IRA
Pension
Jimmy

21. Person A Post Tax Post Tax Pre Tax 100,000 of Income
100% Taxable as Ordinary Income
Jimmy
100,000
of Income

22. Income Output Person A ($30,000) in Taxes $70,000 Net Income
$100,000
30% Effective Tax Rate
($30,000) in Taxes
$70,000 Net Income
$5,833/month
Jimmy

23. Person B 33,000 of Income 33,000 of Income 34,000 of Income Post Tax
Pre Tax
Tax- Free
Partial Taxed
Fully Taxed
Jimmy
33,000
of Income
34,000
of Income

24. Income Output Person B ($10,000) in Taxes $90,000 Net Income
$34,000 Fully Taxable
15% Effective Tax Rate
= $5,000 in taxes
$33,000 Partially Taxable
15% Capital Gains Tax
= $5,000 in taxes
$34,000 Tax-Free
= $0 in taxes
Jimmy
($10,000) in Taxes
$90,000 Net Income
$7,500/month

25. The Penny Game
If I were to give you a penny on March 1st and you were able to double it every day until March 31st, how much money would you have?
March 1: $0.01
March 2: $0.02
March 3: $0.04
~~~~~~~~~~~
March 31: $________????
$10,737,418.24
Tawnya

26. The Penny Game $81,934.65 March 1: $0.01 March 2: $0.017
If I were to give you a penny on March 1st and you were able to double it every day until March 31st, how much money would you have?
This time, you have to pay tax on the growth of 30%
March 1: $0.01
March 2: $0.017
March 3: $0.0289
~~~~~~~~~~~
March 31: $________????
$81,934.65
Tawnya

27. TAX TRIANGLE Post Tax Post Tax Pre Tax Roth IRA 529 Plans Muni Bonds
Cash Value L.I.
TAX TRIANGLE
Post Tax
Pre Tax
Tax- Free
Stocks
Bonds
Mutual Funds
Social Security
CD’s
Real Estate
Partially Taxed
Fully Taxed
401(k)
403(b)
457
SEP IRA
Traditional IRA
Pension
Jimmy

28. 4 Pillars of Planning Increase Long Term Wealth
Increase protection from Wealth Eroding Factors
Taxes, Inflation, Market Volatility, Unexpected Life Events, Law Changes, Technological Change, Long Term Care, Etc.
Do so at same or reduced level of risk
Do so with no additional out of pocket outlay
Jimmy

29. EVALUATION FORM
Evaluation
Jimmy

30. Thank You CSHP! Northern California Advisors:
Jimmy Diehl, MBA,CFBS® Financial Advisor, Managing Associate 3003 Oak Road, Suite #250 Walnut Creek, CA (925)
Southern California Advisors:
Ryan A. Logan, CFP®, ChFC®, CLU®
Financial Planner
Capstone Partners Financial and Insurance Services, LLC
4695 MacArthur Court, Ste. 1000, Newport Beach, CA 92660
direct: | cell: | fax:
CA Insurance Lic.# 0F16408