Mark's Money Mind

In this Fourth of July weekend episode, Mark highlights federal student-loan changes tied to the One Big Beautiful Bill Act (OB3) which go into effect as of July 1, 2026. He notes a new auto-pay incentive: as of July 1st, borrowers on auto payment receive a 1.00% interest-rate reduction (up from 0.25%), effective automatically for those already enrolled, with a Sept. 30 enrollment deadline for others.  He reviews the new loan rates for loans disbursed between July 1, 2026 and July 1, 2027 and the unchanged loan origination fee. Undergraduate annual and lifetime borrowing limits remain the same, while Parent PLUS loans are now capped at $20,000 per year and $65,000 lifetime per student. New caps for graduate students go into effect as well: $100,000 (for non-professionals) and $200,000 (for professionals).  He also outlines the RAP repayment approach based on AGI and emphasizes that balances won’t grow due to negative amortization under the new rules. Episode Links: Mark’s Money Mind YouTube Channel OBBBA Federal Student Loan Updates FAQ Federal Student Aid official website Direct Subsidized and Direct Unsubsidized Loans Federal Student Loan Repayment Plans Timestamps: 00:00 Holiday Show Intro 01:55 Student Loan Changes 02:35 New Autopay Rate Discount 04:16 New Loan Interest Rates 06:20 Federal Loan Limits 08:40 PLUS Loan Caps 11:16 New RAP Repayment Plan 13:09 Avoiding Balance Growth 16:34 Wrap Up Resources 18:55 Conclusion

Mark opens with highlights from two Royal Caribbean Alaska cruises, including the FinTalks cruise with over 90 Financial Independence community members, and a second solo cruise to secure a Silversea status match for additional cruise discounts, including for a planned 2028 FinTalks Antarctica sailing.  He then covers a new account created under the One Big Beautiful Bill Act: “Trump Accounts,” described as custodial traditional IRAs for children under 18. Contributions can start without earned income, are capped at $5,000/year (with possible employer contributions up to $2,500 counting toward the cap). Eligible children born 2025–2028 can receive $1,000 from the government to seed the account.  Funds can’t be withdrawn before 18. At 18 the account can transition to a traditional IRA, with traditional IRA-style taxes/penalties and limited exceptions. Investments are restricted to low-cost US-focused index funds (with expense ratios under 0.10%). Accounts are opened via IRS Form 4547 or trumpaccounts.gov, initially held at Bank of New York, and can later be moved to major custodians. Episode Links: Mark’s Money Mind YouTube Channel Fidelity Investments Viewpoints - Trump Accounts Where to Open a Trump Account IRS Form 4547 - Trump Account Election(s) Financial Literacy Miniseries - Part 4 | Episode 058 FinTalks Cruise to Antartica 2028 Timestamps: 00:26 Alaska Cruises Recap 01:27 Status Match Strategy 02:58 What Are Child IRAs 04:40 Why Start Investing Early 07:22 Eligibility and Funding Rules 11:52 Withdrawals and Tax Basics 14:14 Investment Restrictions 15:24 How to Open the Account 17:53 Comparing Kids Accounts 19:50 Compounding Growth Example 24:20 Roth Conversion Strategy 26:12 How I Would Use It 30:07 Key Features Summary 32:17 Closing and Disclaimer

Mark returns after a brief hiatus, sharing recent retirement travels to the Netherlands and Belgium, and a trip to the Las Vegas Sphere. He then outlines a “spring cleaning” financial checklist: review subscription services and decide what to keep, cancel, or replace; evaluate credit cards with annual fees; monitor checking accounts for rising minimums/fees and use automation to avoid charges; consolidate excess savings and investment accounts; and ensure beneficiary designations are current, including transfer-on-death/payable-on-death and primary/contingent beneficiaries.  Mark urges keeping estate documents updated (will, powers of attorney, medical directives) and properly funding any living trust by retitling assets, and recommends reviewing automated payments and transfers to reduce friction and ensure on-time, in-full bill payment. Episode Links: Mark’s Money Mind YouTube Channel Timestamps: 00:26 Travel Highlights 02:41 Spring Cleaning Money Plan 03:41 Streaming and Music Subscriptions 08:01 Shopping and Membership Perks 10:38 Travel Tools and Annual Reviews 12:01 Credit Cards and Bank Fees 14:57 Savings and Investing Cleanup 16:44 Beneficiaries and Avoiding Probate 20:37 Estate Docs and Living Trusts 24:22 Automation and Wrap Up