Todd Pietzsch from BECU 09-20-17

Wednesday, September 20th

Todd Pietzsch from BECU joins us live in studio. A texter wants to know how to get financial aid for college. Caller Chad is buying a business from his boss and wants to know if he should use his home equity as a down payment. A texter wants to know the best way to save for his kids. Caller Justin has a lot of student loans and wants to know if he should consolidate them.


Transcript - Not for consumer use. Robot overlords only. Will not be accurate.

You please it's the KI DSW financial advisor appeared. Time I invented numbers so I know how this stuff works peach. That's what it's all about Todd please save me. Please send us your enemies represented. Since the first college football's back time and so you're you're back in that group I think every kid is going one of the schools echoed drag on well that was one and the older one you know she graduated four years ago and younger in just graduated back this year tunnel all ORI cal poly our guys I immediately soon make do your job noted we your family dynamic that's a split family yeah that's a while Bradley brought that up because. They're they're reason being because that's a that's a big subject as we are in the in the new school year. And if you have any questions for Todd and all 206421 rock you can also Texas 77999. Don't forget man Todd is the king over their DE CU's stance 25 years old between five years. Great experience in financial services industry lots of different positions he knows business he knows consumer business and demand business lending. And of course DCU. Great great credit union. And be a tide of very quickly the difference to the credit union might be ECU dot org or a bank what's the difference really on the greens are caught the so it's owned by the members BJ so we have over a million members and we all owned the credit union. So all the revenue we bring in has to go back to the membership in one former at a better raids. And lower loan rates better deposits of new ATMs branches. Mobile so let's so the motivation then when the money comes in it's not a bomb making profit for the company since well we're all the owners of the company member of the credit he so. There's a whole different motivation. When it comes to doing business it decision mindset is completely different so everything we do it's like how is this can affect the membership. Not how does this connect help our stockholders who don't the members of the stockholder so they in the end they're the ones that benefit. All right so I quickly wanna talk about other fact he had to kiss a guy went to cause around a college and we pride and and that's something that faces everybody when it comes to finances is that you know you have children at some point they're gonna go to college and you know what that's like in there and you you probably had to pay for help about it whatever and what's the best thing a person can do if they know they're gonna have kid is in May be the go to college someday but that's a couple things first of all. If you're gonna be in school next year that's faster and the free application for Federal Student Aid. That opens up on October 1 they changed it last year so that's the first thing you wanna do if you have it if you're going to be going to college. For next school year cam get that application in case ASAP there early bird gets a warm as so much when it comes to financial aid. Unsettling if you have a young child Larry when starts dating a 529 plan is a great alternative I mean I would not recommend putting you reach your own retirement. Ahead of saving for your children because. In retirement who's gonna take care view rights you impressive very interesting point does a lot of parents don't do that okay great tasting going I think you're my kids first so you're saying no really think of your retirement first of four their college as you may need to put yourself first and then then then we're content saving for that today there's. Loans and things are available in granite I guess that's not the best you know the that you know one act. Graduate with a tie and a dad. But there's ways you can do it founding you can figure out maybe it's not going to the most expensive school may be going to community college first couple years and years. You're transferring to a four year and then they and that degree still says that four year college on there. Combat if they get program is sound is coming back but I would I would encourage listeners if you were one F a five point nine go to saving for college dot com. Great website if you compare you can you can contribute to the 520 nines of most other states. And this this website will rate them for you still fiddle I tell you that this could prince stayed out of state. Can we don't have taxes tax advantage you know we don't pay sales state income tax here. Common as states do that the same for college dot com decent all kinds of information there that Lance. All your questions. 20642 are rock Texas 779990. A terror a question for Todd peach. Let's go throw to Chad in Rochester Chad you Robert Todd featured DE CU dot org go ahead. My god I am I know I'm getting ready to have purchased. Get this from my boss. Mom. And I've got 40000 dollar mortgage equity in my home and I'm wondering if that was a wise decision. To use for start up. I mean that you do you have what other assets do you have Chatham in tune with kind of business are we talking about here. Sought contacts. I'm yeah I mean you you know I am here yet I would encourage you know tapping home equity for saint things they're gonna make you more money which that passes that test for eight years you're buying this business so that's not a bad thing is on from there I would reach out to the Small Business Administration SBA. Tom they have and there's a group called score they can help you. On these are retired executives that help you put together some business plans to. Think you really need to put out a plan in place for you know solid business plan for the capital it's gonna come in there what kind of revenue you're gonna bring you and your margins. Maybe you know what could be as some pro forma as well you're gonna look like say you don't. You know by this business and then you could test you took equity out and then ended sales are you find yourself in trouble so I think we really need to focus on a good business plan right at a gate and and using their home equity is certainly an optional yet. Appreciate your call thank. Very much I hope that works so well for anybody to your phone such as you really get a new phone message and on I would that would be reduced to be part of plans the big party before you where are your kids college and get a good phones 20642 Iraqi and also Texas is 779990. Had a question for Todd teacher DCU custom text over here are my question for Todd peaches and about to purchase a business as 40000 dollars worth of equity out of my home would be wise do you zephyr startup money that's chat. Let's send back it up all right nevermind I can from Rochester yeah. Made more sense to try to text and there was this yeah that while this person has 40000 dollars and equity drop a new business I'm getting. I'm totally should do and access to top this time I need advice on getting credit back together after bankruptcy. OK so maybe this is a done deal added you have to have credit to if he can get credit say you're prodding and half dead again to secure credit card. Tom way that works as you know couldn't take 200 pound in savings account common security and in the give you 200 dollar credit limit. And you can start to slowly build your credit pomp than most important thing he's got to pay on time we talked about this before and then that utilization which we talked about many times it's. 30% of your credit scores here is. Your balance outstanding on your statement Torre here look at in relation to your credit limit so in this case we would want. No more than that twenty dollars to show up on that statement if you had a 200 dollar credit limit. And Todd IE I would like to ask a question design pretty angry these days oh shot. Yeah IE I am very very angry cats Equifax. One of these credit agencies that we all have to basically we have our arms twisted to the point we have to participate in this process. Give them all of our sensitive information and it because they use our credit score for so much in life. And of course they just got hacked horribly I had just found out that Canada has also been affected by this. Com and all are sensitive information that we're forced to give these guys will want a function in life you know basically just got into the hands of bad guys. What are you telling any BCU members that are concerned about this as I'm concerned the Mets. I don't know what to do because I don't this is like you know what they should be out of this is in my mind me don't you can't protect the data eight you're supposed to the keeper of me making sure I don't default brought great. Well there's a couple. So you go to Equifax Experian each of the website take it Experian Equifax is giving it for free right now Currie you've met. Normally would cost you ten dollars at each appear to freeze your credit so that's just what Equifax but they they they can use that information with the other guys yet he has to go to all three in you know I have to repay the other two yes that's amazing yes and then that's amazing that we have to pay for their mistakes right and then and then that closes your files unknown but no no credit. The downside of that is inconvenient so let's say. You wanna change so prone from writers are cable providers are ranked you here in new landlord or I knew I alone you have to unfreeze your credit which is a hassle. On and so you have to kind of weigh into any idea are you mean losing sleep over this OK then maybe you wanna do represent an otherwise. Just monetary counts on guinier go to the annual credit report dot com you know gain periodically get copies of your credit report see what's out there. On our monitoring services that you can sign up for again you have to pay for those on the no they're giving it for our Farrah for a year for free. But this speech in this information is out there and in Maine I used for a year 23 may never used it. It's out there forever or your Social Security number doesn't change. Are you named hasn't changed yet since it's it's gone so I don't mean even though nothing's happened now this could you know it could be years if need be before we you know. So I don't know are we ask you this is I don't choose which credit agency checks me. I imagine there are companies that do right date date today it likely would be Trans Union Equifax or who makes that choice to use them because I gotta be sink in. I don't trust Equifax anymore I wouldn't I don't want them to be used at all in my train my transactions are evaluating me they've proven I mean they're not reputable GAAP net on the financial institution besides that. And many in the case of a mortgage they're proud they're in these what's called emerged reports would get a report from all three. On so beat the financial institutions each one deep determine is there we ADC is there a chance that some financial institutions will go you know what backlash from our customers if they if like people find out that certain industries are using. This kind of like the Obama the point where it's like I had a good news affects them I don't know my car for you. You know I have I'm mad angry because I feel like. Shouldn't be able to do some thing since we're forced to use this man may betray us like you said that information is out there forever right and I don't think you should stay in business anymore I that I'm kind of like the death penalty when it comes who does is making this kind of mistake I don't you know I've. Edited that's the most CI and we don't know what you know now there's gonna be lawsuits and all kinds of things that are coming out at this rate of vitamins or money are right I would react and you are different though they go up during the last two they're bad but you know make some money and I don't I yellow card in the mail area and 25 cents if you saw a seventeen forms exactly I think yeah that's that's I don't know time will tell -- -- -- we get -- patient VCU dot org and if you got a question for -- to 06421 rocky you also Texas 77999. Is good that's what's a good amount to spend on Halloween costume my -- 150 -- 35 -- to lose a good one that's a very good when I'm with him 31 idea is that a lot of data going to be a miraculous looking Internet and I don't usually like this loneliness costume I mean how much is in the cost him anyway well those get pretty expensive BJ if you want good quality to look like a slot. Really. Is hardly any clothes I charge you so much money for local hope I never thought I would say that's a concern Todd pieces segment you have to kind of got a good point I come up. I with a 35 dollar worth that any baby sixty. And Ozzie had I and Hawaii 35 kitty rounded up already took a break now well actual dancing goes I go past forty yeah it's not a shot that the due to the relation to us now honey we should spend much money on announced its. That's and that's shocks me some of the Rhine in Seattle he wants an ally of twins coming in about eight months what's the best way to save for kids. That's and so we just for college we talked about that a little life rely on an unprecedented time yeah I mean if if it's college or looking at then that's at 529 saving for college I can't even given started early. On what I'm gonna really savings account when they're young. I'm teaching how to and say stand here how to manage their money in the new when he gets it all enough where they can understand that how about this and animals as we gonna go to Steve -- proactively like you know you're gonna wanna have kids you don't have him yet he is your strategy. For before they even come along grizzard damn expensive people don't realize how extensive radar housing and like yeah how do you see for yourself so you can really go broke just having a kid exists in your when your world buying diapers on that kind of stuff doesn't mean it's that chain as a huge shift in and how you spend I would ask again. I mean you could set up a dedicated account like you know you can do for anything read a goal account she can have a our kids account or what everybody follows a bit expensive yeah ask you know diapers a panel everywhere college and but you know set it up early and then you have that money did you know his day care is expensive and that and subject you can do that early if you wanna do that's our writers -- shot -- issues really fast so yes yeah yeah exactly yeah Tim really you don't just let every let all the relatives by all the fancy baby clothes and you just go the Jeanne I'm religious I am a size twelve convert issue he's gonna to grow into it. Or you can Wear what you can Wear until he gets ready for that look like a clown filmmaker and that that's for everything like that started telling customers and yes it all year round to go 642 Iraqis can also Texas 77999. If you don't get through the phone lines are texting us. You can always get email Todd and we have his link up on KI SW dot com and you click get annual take your toss is great resource page on their a lot of stuff that Todd mentions. We have a great website right Derek Kessel your come more on page 12 mile resource. Information let's go to Dustin Seattle Dustin you rob with Todd from BE CU dot org go ahead. And I don't know what everybody which Jeffrey died. Yes I'm curious play had decided to make kind of a big shift in my ad industry and went tier school for such a development that recruit a lot of loans and I'd really get a one point now they're bat and then about 4000 dollars in credit card debt as well student loan guru yes lots. Seattle a good idea to consolidate that at some point and it's so VCR for that sort thank. Well look I mean consolidate these next incoming credit cards you have a 40000 is how many. Social about fifteen and then. And then credit card debt and resolute just thought just. OK so then Yemen Tony's. 25000 in student on that give or take. I think I got to sort of books facilities are so stupid vote gerontologist amazing I had no idea who these folks anymore and seriously don't you guys can dole you've got online you got an eyebrow as I mean initial cool still need books they can charge you 300 yards you know I so ridiculous I mean they wouldn't amber and I can't gambling disagree regarding books when I learned from my daughter's lazy by the older edition. They don't make any changes to it yeah and then you just make copies from others have for the essence yeah all fancy name and in other lands identical are hotter sun mean in all fairness they're really nice to brave patriots dollars a level but no buyback for fifteen dollars exactly all of us as a nice convenient you have to carry her out exactly how I loved us so but anyway back to question that's enough and how many credit cards is that 151000 union to meet his electronic media how many number of green emerged number. Just one so I just want our all right well we know what he's he doesn't have a problem Todd OK times and then and the student loans and a federal or private. And I had a strategy okay so what I would what I would do Gary having are you having problems making your payments are. Not an elegant one time understood the situation now where in the next three month it'll probably have a job that's quite well paying that sound I was wondering if I can lower my interest rates on the use yes Colin but again. On student loans I would go to so I. It's what did you say yo what's your Muslim and so I uh huh yeah I and that supplied icon and then they're Arab and I've heard I never use them myself but I've heard good things about them it's kind of a crowd sourcing funding for student loans so you can compare your current rates there to see if there's. A way to reduce sound that interest you know interest rates are paying if those paid off. Sooner Tom did you have any collateral or anything else I mean it depending on your credit. I'm would be did you you know you could look into seems you can get a roll that over to another credit card but it's quite a bit found credited to meet with your current income until you get more you know. You can increase your income here in the near future I'll oh just what you just a question I know I mean I think he you know they're just look at the industry you're paying on both of these and see what other options are out there. Especially looking at the student loan and then let's come up with a plan which you get high paying job higher paying jobs give tech credit card paid off a yeah that's a yeah and that supply wanted to I wanted to make because it was the greatest advice ever got from my agent of all people who sat me down and said you know your fiscal nightmare let's take a look at your life here. And in my eyes so what I would ask you is you know do you is he gone. I don't know what I was. Thought on how remain young he's gone buried in my came in days gone they have questions us or you can hear I don't think so. Very young age I'll ask I'll ask you Todd is about to wrap up. If you get any a significant reasoning come see you making 50% more a 100% more. Or you know maybe get like in the future clearing com. I know that happen to be many many years ago. And unfortunately just take your best she could just and I got fired like six months into the job and and it got in a massive debt. When I thought I was in a clear out by it. You know is is the idea you have loans you can pay off the principal. And I don't think a lot of people realize how how important that is if you can do that if you pay more than what your payment is for months that we absolutely you can pay as much as human being the whole thing off if he wanted to break even on a mortgage or whatever so I mean it's gaining. Being debt free is just a great feeling and and you know in united trapped by if you do lose your job like you know it you know things happen or you get ill. Do you mean that you don't have that to win back and a lot of folks don't realize that if you do get a bump in pay if you can just forget that that money ever got there and instead put it towards your loans. Yeah I do like you said I mean I was I was able to pay off some loans whole lot sooner because of the fact I took that advice and just furiously campaigned on the principle of almighty extra money and what you get that's and then input into your 401K or your retirement plans so they keep getting 2% raise let's say. You know bump bump bump up for your contributions are very wanted to present you won't even notice it but by a series of Mano match and you know you saving 1518%. Of your income. Every year see kids that's why that I that I that's why pot is always tell you know what might you whichever part of sore throat and your throwing K hiring day you know your your twenties if you could start that I never did I mean I wish I did death you know my dad was right but I never listen to him because you know he was my dad yet and I played host to edit out there in the remain in return Ron intelligent talk and enable appreciated in twenty years I hope they are I mean here in my dear don't care about money cuts a good point I think hi I guess they got the best retired program yeah me I well yeah. Yeah I have a question for Al violate Todd thank you for coming in again DE CU dot org. If you want to be EC membership and listen great credit you know as Jews live work or attend school in Washington State and you can join BE CU. I remember any so it's so true it's a great organ a great way to do banking and at all they care about is you because you're the one that's a member and an owner as well. All the info would be ECU dot org Todd it's always good to have you embody thanks BJ.