MONEY WITH SIMPLE THINGS YOU CAN
DO TODAY TO HELP PLAN FOR THE
FUTURE.
WE BROUGHT IN THE EXPERTS.
WE HAVE HOST OF "SQUAWK BOX" ON
CNBC ANDREW ROSS-SORKIN.
AND CHERYL EPPERSON.
WHEN WE TALK ABOUT MONEY,
EVERYBODY’S PAYING ATTENTION.
A LOT OF PEOPLE ARE SEEING A
DISCONNECT BETWEEN A BOOMING
MARKET ON ONE HAND AND ON THE
OTHER ENORMOUS UNEMPLOYMENT
RATES.
WHY IS THERE SUCH A DISCREPANCY?
>> IT FEELS LIKE A DISCONNECT
AND IT IS IN MANY WAYS.
WHAT’S REALLY HAPPENING -- AND
THE RATIONALIZATION IF YOU WILL
IS THAT INVESTORS WHEN YOU LOOK
AT THE STOCK MARKET ARE BETTING
THAT THE WORLD IS GOING TO BE A
LOT BETTER 12 AND 18 MONTHS FROM
NOW.
SO THE STOCK MARKET ISN’T
LOOKING AT WHAT THE ECONOMY
LOOKS LIKE TODAY OR EVEN WHAT IT
LOOKED LIKE YESTERDAY.
IT’S TRYING TO GAMBLE IN WHAT IT
WILL LOOK LIKE IN 12 MONTHS FROM
NOW.
WITH VACCINES OR THERAPEUTICS,
THAT’S THE VIEW.
IT MAY BE RIGHT, IT MAY BE
WRONG.
LOTS OF MONEY HAS BEEN POURING
INTO BIG TECH COMPANIES.
THE AMAZONS OF THE WORLD, THE
APPLES OF THE WORLD, EVEN THE
WALMARTS OF THE WORLD HAVE
BENEFITTED.
IN LARGE PART BECAUSE MANY SMALL
BUSINESSES HAVE EFFECTIVELY BEEN
OUT OF BUSINESS DURING THIS
PERIOD.
AND SO THE HOPE HERE IS IT
DIDN’T GET SO BAD BECAUSE OF
UNEMPLOYMENT THAT 12 MONTHS FROM
NOW EVEN IF WE GET A THERAPEUTIC
OR A VACCINE THAT THINGS AREN’T
BETTER.
>> I’M GLAD YOU JUST MENTIONED
THAT.
ANOTHER THING WE’RE SEEING,
UNEMPLOYMENT BENEFITS.
WHY ARE SOME PEOPLE GETTING THEM
IN STATES LIKE NEW YORK AND NOT
IN OTHERS LIKE FLORIDA?
>> WELL, UNEMPLOYMENT BENEFITS
ARE DISTRIBUTED BY STATE.
IT’S FEDERAL TO SOME DEGREE BUT
NOT REALLY IN TERMS OF HOW THE
DISTRIBUTION IS SET UP.
SO RIGHT NOW, FOR EXAMPLE, THERE
ARE 35 STATES THAT HAVE JUST
ADDED THIS $300 PROGRAM AND THEY
ARE -- THERE’S ABOUT FOUR OR
FIVE STATES THAT HAVE BEGUN TO
DISTRIBUTE IT.
BUT THEN THERE ARE OTHER STATES
LIKE SOUTH DAKOTA WHICH AREN’T
EVEN ASKING FOR THAT MONEY.
AND THEN OTHER STATES LIKE
FLORIDA AND OTHERS THAT HAVEN’T
GOTTEN AN APPROVAL.
IF YOU’RE LOOKING FOR
UNEMPLOYMENT BENEFITS RIGHT NOW,
GO TO THE FEMA WEBSITE.
YOU CAN SEE WHETHER YOUR STATE
HAS BEEN APPROVED.
WHETHER THEY’RE PARTICIPATING
AND HOPEFULLY YOU CAN GET ACCESS
TO THAT MONEY.
>> THANK YOU SO MUCH.
DYLAN, OVER TO YOU.
>> THANK YOU, SHEINELLE.
LET’S NOW GO TO SHARON EPPERSON.
SO SHARON, FOR THOSE OF US THAT
MIGHT BE NEWER TO THE STOCK
MARKET, IT SEEMS
COUNTERINTUITIVE BECAUSE SO MUCH
IS UP IN THE AIR RIGHT NOW.
BUT YOU’RE SAYING NOW IS THE
PERFECT TIME TO INVEST.
>> WELL, IT’S THE PERFECT TIME
TO INVEST IF YOU WANT TO HAVE
LONG-TERM GROWTH.
IF YOU WANT YOUR MONEY TO GROW
OVER THE LONG-TERM.
BUT THE FIRST THING YOU NEED TO
DO IS MAKE SURE YOU HAVE THAT
EMERGENCY SAVINGS, THAT YOU’RE
PAYING DOWN YOUR HIGH-INTEREST
DEBT.
BUT IF YOU ARE ABLE TO HAVE SOME
MONEY TO INVEST, YOU WANT TO PUT
THAT INTO A MUTUAL FUND AND
INVEST IN MANY STOCKS.
YOU DON’T WANT TO JUST FOCUS ON
THE AMAZONS, APPLES, WALMARTS OF
THE WORLD.
YOU WANT A MIX OF STOCKS.
INVEST IN AN INDEX FUND THAT
FOLLOWS THE S&P 500 OR THE DOW
JONES INDUSTRIAL AVERAGE.
AND IF YOU’RE GETTING READY FOR
RETIREMENT OR YOU’RE INVESTING
FOR YOUR RETIREMENT, LOOK AT A
TARGET DATE FUND.
THIS INVESTS IN A MIX OF STOCKS
AND BONDS.
IT GETS MORE CONSERVATIVE AS YOU
GET CLOSER TO RETIREMENT.
BUT IF YOU’RE EARLY ON, IT’S ALL
STOCKS ALL THE TIME.
YOU DON’T AREHAVE TO WORRY ABOUT
REBALANCING IT.
IT DOES IT FOR YOU.
>> AUTOMATIC IS FANTASTIC.
OKAY.
LET’S TALK ABOUT STUDENT LOANS.
CONGRESS PASSED A STIMULUS BACK
IN MARCH.
IT OFFERED SOME REPRIEVE FOR
PEOPLE WHO MAYBE CAN’T PAY RIGHT
NOW.
YOU SAY FOR THOSE WHO CAN, NOW
IS THE TIME TO PAY MORE.
WHY IS THAT?
>> YOU DO NOT HAVE TO PAY
PAYMENTS ON FEDERAL STUDENT
LOANS UNTIL DECEMBER 31st.
FIRST IT WAS GOING TO BE
SEPTEMBER WHEN THAT WAS PASSED
IN MARCH.
THEN AN EXECUTIVE ORDER BY THE
PRESIDENT EXTENDED IT UNTIL
DECEMBER 31st.
THAT IS NO PAYMENTS ON YOUR
FEDERAL LOANS.
MOST FEDERAL LOANS AND NO
INTEREST THAT YOU’RE PAYING
EITHER.
IT’S IMPORTANT TO CHECK WITH
THEIR LOAN SERVICER TO MAKE SURE
YOUR LOANS QUALIFY FOR THIS AND
MAKE SURE YOU UNDERSTAND THAT
THIS IS FEDERAL LOANS, NOT
PRIVATE LOANS.
BUT THE GREAT THING IS IF YOU
HAVE EXTRA MONEY OR YOU HAVE
MONEY TO PAY THESE STUDENT LOAN
PAYMENTS, MAKE SURE YOU DO THAT
BECAUSE YOU’RE PAYING DIRECTLY
TO THE PRINCIPAL.
YOU’RE PAYING DOWN THE LOAN
BALANCE.
YOU’RE NOT PAYING ANY INTEREST.
THAT’S A GREAT WAY TO PAY OFF
THIS DEBT FASTER.
>> AND WHAT ABOUT FAMILIES
TRYING TO FIGURE OUT HOW TO
SURVIVE ON ONE INCOME?
WHAT ARE SOME WAYS YOU CAN
STRETCH THE DOLLAR?
>> WELL, THAT’S A LOT OF FOLKS,
RIGHT?
WHO HAVE BEEN FURLOUGHED OR
STAYING HOME WITH THEIR KIDS AND
NOT WORKING AS MUCH OR AT ALL
WHILE THEIR KIDS ARE STUDYING
VIRTUALLY.
IT’S IMPORTANT TO FOCUS ON THE
ESSENTIALS.
YOUR RENT, YOUR MORTGAGE, YOUR
FOOD, UTILITIES.
MAKE SURE YOU’RE ABLE TO PAY
THOSE.
CUT OUT EVERYTHING ELSE.
MAKE SURE YOU CUT OUT AT LEAST
ONE RECURRING PAYMENT, MAYBE A
SUBSCRIPTION YOU HAD BEEN DOING
YOU’RE NOT DOING AS MUCH
ANYMORE.
AND THEN PRIORITIZE YOUR DEBT.
AND FIND OUT WHAT YOU REALLY
NEED TO PAY.
MAYBE THAT MORTGAGE OR RENT IS
GOING TO COME BEFORE THE CREDIT
CARD DEBT.
THAT’S FINE.
BUT WHAT YOU NEED TO DO IS CALL
ALL OF YOUR LENDERS AND
CREDITORS.
FIND OUT WHAT PROGRAMS THEY
HAVE.
MANY OF THEM HAVE PROGRAMS THAT
WILL ALLOW YOU TO DELAY, DEFER
PAYMENTS.
MAYBE EVEN DEFER INTEREST.
ASK WHAT THEY CAN DO FOR YOU.
THEN ALSO MAKE SURE YOU FACTOR
INTO YOUR BUDGET SOME SAVINGS.
I KNOW IT SOUNDS CRAZY IF YOU’RE
JUST WORKING ON ONE INCOME OR
YOU’VE LOST YOUR JOB, BUT YOU
HAVE TO PUT SOMETHING AWAY.
YOU NEED TO BUILD THAT FINANCIAL
MUSCLE OF SAVING FOR THE
UNEXPECTED.
BECAUSE THAT’S WHERE WE ARE
RIGHT NOW.
EVERYTHING THAT WE’RE GOING
THROUGH IS UNEXPECTED, RIGHT?
EVEN IF IT’S $25 A MONTH, DO IT
EVERY MONTH.
GET USED TO THAT DISCIPLINE.
AND THAT WILL ALSO ENSURE YOUR
FINANCIAL FUTURE.