Key Points SoFi Technologies and Interactive Brokers have delivered substantial returns to investors in recent years. SoFi is expanding its financial services platform and continues to see its customer base grow rapidly. Interactive Brokers offers a global brokerage platform with efficiency and low costs, making it especially appealing to high-volume traders. 10 stocks we like better than SoFi Technologies › SoFi Technologies (NASDAQ: SOFI) and Interactive Brokers Group (NASDAQ: IBKR) are two gro ...

Key Points SoFi’s fintech platform continues to attract millions of new users. It’s expanding its fee-based ecosystem to reduce its dependence on interest income. Its stock looks reasonably valued, but Wall Street’s expectations might be too high. 10 stocks we like better than SoFi Technologies › SoFi's (NASDAQ: SOFI) stock has nearly doubled in value over the past 12 months. The fintech company impressed the market again, gaining more users, growing its revenue at double-digit rates, and expandin ...

Core Insights - Significant changes to student loans and repayment plans are set to take effect in 2026, particularly affecting first-time borrowers in the fall of 2026 [1][2] Group 1: New Repayment Plans - The Repayment Assistance Plan (RAP) will be introduced as a new income-driven repayment plan, available from July 1, 2026, allowing borrowers to adjust payments based on income [3] - Some borrowers may find RAP payments more affordable, with the government contributing at least $50 monthly to help reduce loan balances [4] - However, lower-income borrowers may face higher total costs under RAP, as it requires a minimum payment of $10 per month, eliminating the current option for $0 payments [5] Group 2: Impact on First-Time Borrowers - First-time student loan borrowers in the fall of 2026 will not have access to existing income-driven repayment plans, with RAP being the only option available upon graduation [6][7] - The average recent graduate borrower is expected to pay less under RAP compared to existing plans, but those with children may incur higher costs due to the minimum payment requirement [8] Group 3: New Loan Limits - The "One Big, Beautiful Bill" introduces new loan limits that generally reduce the amount and types of federal student loans available [11] - Parents of undergraduate students will face new limits on Parent PLUS loans, affecting nearly 30% of borrowers, while new graduate students will lose eligibility for PLUS loans [12][13] - Existing borrowers before June 30, 2026, will not be subject to these new limits and can continue borrowing under current terms [14] Group 4: Tax Implications - Loan forgiveness received in 2026 or later will be taxable, reversing the tax exemption that applied to borrowers reaching forgiveness thresholds between 2021 and 2025 [16][18] - Borrowers who qualify for forgiveness before 2026 but experience delays due to lawsuits will still benefit from tax-free forgiveness [17] Group 5: Changes to PSLF Eligibility - New rules finalized by the Trump administration will allow the Department of Education to deny Public Service Loan Forgiveness (PSLF) to certain organizations deemed "illegal," affecting nonprofit workers [19] - This rule could impact workers in hospitals or nonprofits focused on immigrant families and diversity initiatives, although legal actions may delay its implementation [20]

With new car prices still far higher than most Americans can pay in cash, car-loan delinquency rates are expected to rise for the fifth straight year in 2026, according to TransUnion’s TRU 2026 consumer-credit forecast, though increases have become progressively smaller. The report estimates that credit-card delinquencies will remain relatively stable, while mortgage delinquencies will tick up due to a modest rise in unemployment.Americans will head into the new year relying on debt more than ever before. O ...

Personal finance expert, author and host of The Ramsey Show, Dave Ramsey often provides guidance on topics like budgeting, paying off debt and building wealth. One area in which he frequently berates callers on his show? Wasting money. Here are five of the scariest ways to waste money, according to Ramsey. Not Having a Written Budget It’s often said that, when it comes to wealth building, it’s not about how much you earn; it’s about how much you keep. And failing to plan means planning to fail. Oversp ...

Core Insights - SoFi and Affirm are both high-growth fintech companies aiming to disrupt traditional financial institutions, with SoFi offering a wide range of financial services and Affirm focusing on "buy now, pay later" solutions [1][2] SoFi Overview - SoFi has expanded its services from student loans to include mortgages, auto loans, personal loans, credit cards, insurance, estate planning, stock trading, and banking, positioning itself as a comprehensive digital financial platform [1][4] - The company targets younger, digitally native users and has grown significantly, quadrupling its member base from 2.5 million in 2021 to 10.1 million in 2024, with projections to reach 12.6 million by Q3 2025 [7][8] - SoFi's revenue and adjusted EBITDA are expected to grow at a CAGR of 27% and 44% respectively from 2024 to 2027, driven by its loan platform business, increased deposits, and new features [9] Affirm Overview - Affirm's BNPL platform caters to younger and lower-income consumers, offering microloans without compound interest or hidden fees, and has seen significant growth, with active consumers increasing from 7.1 million in fiscal 2021 to 23 million in fiscal 2025 [10][11] - The company has secured partnerships with major merchants like Amazon and Walmart, contributing to its gross merchandise volume (GMV) growth from $8.3 billion to $36.7 billion during the same period [11] - Analysts expect Affirm's revenue to grow at a CAGR of 25% from fiscal 2025 to 2028, with adjusted EBITDA projected to increase at a CAGR of 131% through 2028, supported by the growing usage of its Affirm Card and international expansion [14] Valuation Comparison - SoFi has an enterprise value of $32.5 billion, trading at 31 times this year's adjusted EBITDA, while Affirm has an enterprise value of $27.2 billion, trading at 24 times this year's adjusted EBITDA [15] - Despite both companies being strong growth stocks, Affirm is considered more attractive due to its narrower focus, superior growth rates, and lower valuations [15]

Core Insights - SoFi has demonstrated impressive growth, adding over 900,000 members in Q3 and achieving a 38% year-over-year revenue increase, surpassing expert predictions for profitability [2][5] - CEO Anthony Noto aims to scale SoFi into a "top 10" financial institution, currently ranked 53rd, requiring a tenfold increase in asset size [3][6] - Noto has set an ambitious target of reaching 50 million members and 150 million products by 2030, indicating a potential growth of over 700% in less than five years [5] Growth Potential - SoFi's membership is growing at a rate of 35%, with significant room for expansion as its unaided brand awareness in the U.S. is below 10% [6] - The company is focusing on evolving its lending business, which includes originating loans for third parties and generating fee income [9] - The privatization of parts of the $1.7 trillion federal student loan program presents a significant growth opportunity for SoFi, leveraging its technology as a major student loan service provider [10] Product Innovation - SoFi is launching innovative products, including cryptocurrency trading and blockchain-based international money transfers, aiming to lead in digital asset adoption [11] - The company has a lower cost structure compared to traditional banks, resulting in excellent net interest margins, which are more than double those of major banks [12] - SoFi's Galileo technology platform is positioned to become a key player in fintech, providing infrastructure for co-branded reward debit cards [13] Market Valuation Aspirations - SoFi aspires to achieve a trillion-dollar market cap, which would be approximately 31 times its current valuation, a bold target as no U.S. bank stock has reached this level yet [6][14] - Achieving a trillion-dollar valuation may not require SoFi to become the largest bank in the U.S., as its online-only model could yield better margins compared to traditional banks [15] - To join the trillion-dollar club, SoFi would likely need to break into the top five U.S. banks, a challenging but not impossible goal over the next couple of decades [16][17]

Core Viewpoint - SoFi Technologies has experienced significant growth and popularity among U.S. consumers, leading to a substantial increase in its stock price, which has risen by 80% since January [2][3]. Group 1: Business Performance - SoFi's user base has expanded dramatically from over 1 million members in early 2020 to over 12.6 million as of Q3 this year, with a year-over-year growth of 35% in Q3 [3][4]. - The company's revenue and profits have surged alongside user growth, positioning SoFi as one of the fastest-growing fintech companies globally [5]. - Approximately 40% of SoFi's product growth in Q3 originated from existing members, enhancing profitability as existing customers are less costly to acquire [4]. Group 2: Student Loan Business - SoFi's success has occurred with minimal contribution from its student loan business, which was previously a significant revenue source before the COVID-19 pandemic-induced student loan freeze [7]. - The student loan industry remains complex, with 42.5 million Americans holding $1.8 trillion in student loan debt [8]. - Student loan originations increased by 58% year-over-year in Q3, indicating potential for continued growth as borrowers return to repayment schedules [11]. Group 3: Financial Metrics - SoFi's tangible book value (TBV) has increased to over $7.1 billion, more than double its TBV from two years ago, reflecting strong financial health [12]. - The company anticipates its TBV to increase by $2.5 billion in 2025, significantly higher than previous guidance, with a projected year-end TBV of just under $7.2 billion, a 47% increase from last year [13]. - SoFi's current price-to-TBV ratio is approximately 4.7, indicating a premium valuation compared to most banks, justified by its rapid growth [15]. Group 4: Future Outlook - Sustaining or improving growth will be crucial for SoFi's investment upside moving into 2026, as the stock's valuation has risen significantly [16]. - Economic conditions may pose challenges, as banks are vulnerable to recessions, which could impact SoFi and other bank stocks [17]. - Despite its strong performance, investors may need to temper expectations for 2026 following a robust 2025 [17].

Core Concept - The article emphasizes the importance of distinguishing between good debt and bad debt, highlighting that not all borrowing is detrimental and that strategic borrowing can lead to wealth building and financial stability [1][10]. Good Debt - Good debt is defined as borrowing that contributes to long-term value or improves financial position, often linked to assets or opportunities that appreciate or generate income over time [2]. - Examples of good debt include student loans for marketable degrees, mortgages for property appreciation, auto loans for reliable transportation, home equity loans for property improvements, and business loans for income generation [3][2]. - Good debt must be managed responsibly; exceeding affordability or lacking a repayment plan can turn good debt into a financial burden [2][5]. Bad Debt - Bad debt refers to borrowing that does not enhance long-term value or financial health, often associated with depreciating purchases or high-interest rates [3]. - Common examples of bad debt include credit card debt, which can exceed 20% in interest rates, and payday loans with APRs nearing 400% [4][3]. - Carrying bad debt does not equate to financial failure but indicates that borrowed funds are not working effectively for the borrower [5]. Differentiating Good and Bad Debt - The distinction between good and bad debt lies in purpose, payoff potential, cost, tax benefits, and repayment flexibility [6][8]. - Good debt typically supports wealth building, while bad debt funds short-term wants or depreciating assets [8]. - A quick self-assessment can help determine if a debt will contribute to future wealth or merely provide temporary satisfaction [6]. Managing Good Debt - To utilize good debt wisely, borrowers should have a clear repayment plan and avoid unnecessary financial pressure from discretionary spending [7][10]. - Long-term or high-interest auto loans can become problematic if not managed carefully, leading to negative equity [7]. Strategies for Reducing Bad Debt - Strategies for managing bad debt include prioritizing high-interest balances, consolidating debts, creating a realistic budget, and negotiating with lenders [14][11]. - Building an emergency fund can help maintain loan payments during unexpected financial challenges [13]. - Avoiding new debt while focusing on repayment can facilitate financial recovery and stability [14].

Core Viewpoint - The White House is considering a 50-year mortgage to address the home affordability crisis, but this proposal has faced criticism for not addressing fundamental issues in the housing market, such as supply shortages and high interest rates [1][8]. Mortgage Structure and Financial Implications - A 50-year mortgage would lower monthly payments compared to a 30-year mortgage, with an example showing a payment of $2,022 for a 50-year mortgage versus $2,288 for a 30-year mortgage based on an average home price of $415,200 and a 10% down payment [4][5]. - However, borrowers would pay approximately $389,000 more in interest over the life of a 50-year mortgage compared to a 30-year mortgage, significantly slowing equity accumulation [6][7]. Housing Market Challenges - The introduction of a 50-year mortgage does not address the critical issue of housing supply, which remains a significant barrier to affordability [8]. - Rising costs of construction materials and labor shortages, exacerbated by tariffs and immigration policies, further complicate the housing supply situation [9]. Demographic Considerations - The average age of first-time homebuyers is around 40 years, making a 50-year mortgage challenging to underwrite, as it would extend the loan term beyond the average life expectancy of 79 years [12][13]. Legislative and Regulatory Context - Current regulations under the Dodd-Frank Act prevent Fannie Mae and Freddie Mac from insuring mortgages longer than 30 years, meaning a 50-year mortgage would be classified as a "non-qualifying mortgage," complicating its marketability [17].