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Human: I could really use some advice or direction right now.
I just had a meeting with the president of our company in regards to being hired from my full-time intern position, to an employee (I've been with the company for 6 months). I work for a record label doing video production. There are only 3 of us in the department. We all contribute in a lot of different areas- filming, editing, graphics, etc. I've been making $10/hr, 40 hr a week.
I was offered to come on full time, with a salary bump from $10 to $12 an hour (about $80 more a week). I graduated from college last year, and am financially independent at this point. I feel like I've put in a lot of time/effort into getting this job offer, and am disappointed the salary bump didn't go up to $15/hr.
When he brought up $12 an hour, I was honest with him what I was hoping for. He told me that this is the way the video department within the company has been run for a few years now, that the same people who went from interns got the same pay bump, and overall didn't seem too open to negotiations.
I told him I would get back to him tomorrow.
I was thinking about saying something along the lines of "I was really hoping for $15/hr based off how much work I do and how you've liked/used my work. Would you be able to come up to $13.50 (or whatever you want to say)? I really want to stay here but $12 is will make it tough"
I'm really in a bind, because I do love my job and the company is great- I just don't know if I can afford to feel undervalued.
Any advice or recommendations are welcome.
I'll be meeting with him again tomorrow.
| Don't negotiate against yourself. Asking for 15 then immediately counter-offering 13.50 yourself is shooting yourself right in the foot. If you want 15, ask for 15, and let him counter-offer.
Check Glassdoor.com and salary.com to see what entry level position in your field are paying in your area. That way you have something to compare with.
The worst thing that would happen is he says no. You'd be in the same situation you're in now. You'll have to decide if it's worth the pay cut to stay at the job. Best result is you get what you asked for.
Also remember that you're a known quantity to him. You have proven you can do the work and can integrate into the team. There is a fairly large risk and opportunity cost to replace you if you decide not to stay on. You have that advantage. | Are you going to be doing more work or taking on more responsibility in this new position? If so, you should bring that up as part of your negotiations. If not, how are you going to justify asking for a 50% pay raise? You need to focus on what you're going to be doing, not what you've done already, and you need to convince the guy that it will be worth it to him to pay you more than everyone else. |
Human: So please bare with me. My girlfriend and I have been living in a studio for about 8 months already. We have always paid our rent on time and there had been no issues. Now flashback 8 months ago. Her boss, which is our landlord, rented out his backyard studio to us and we verbally agreed on how we would pay rent each month and how utilities would be included. Now fast foward to present day, my girlfriend had gotten really tired of working for them and so she quit her job. So guess what happend next, immediately after she quit, the boss and his wife demand that we grab our belongings and to move out of their property within the 1st of may. Now we just paid them rent on the 15th, which should cover us untill the 15th of may, but like i said they want us out by the 1st. Like i said before, its just a verbal agreement, we've been paying cash & have gotten no receipts or records of us paying them rent. Honestly im just confused on what I can do.
| legally, I believe they must give 30 days notice to the renter (for residency less than 1 year). I would find a new place to live asap, but legally, you have rights to the apartment for 30 days. | Check out these two links to get a sense of what your basic rights are.
http://www.dca.ca.gov/publications/landlordbook/before-rent.shtml#rentalagreementsandleases
http://www.dca.ca.gov/publications/landlordbook/terminations.shtml |
Human: I've been in my home for 5 years. It's a small stater home. I'm listing this house in May and will be searching for my next home. I would love advice on the buying and selling. I would like to know what to expect from the process. Thank you in advance.
| Expect to no longer live in your current house and end up living in another house. Some financial ins and outs may be involved. | Why do you want to sell your home at all? Depending on your local market you may not make any money after closing costs. |
Human: Short and sweet:
State: Georgia
Home purchased in 2007 for 239,900. Husband and I divorced. We kept the property, have been renting it from 2011 - current. Tenants are leaving on Monday.
We've invested almost 10k into the house thus far: granite, new landscaping, top to bottom fresh paint, new carpet, new light fixtures.
Looking to list the house for approximately $290.
Can someone explain to me the tax portion of this? From what I've been reading, because it hasn't been a primary occupancy for us within the last 2 years, it's considered a "business" per se, and therefore we are liable for taxes on the amount?
I would really appreciate any help here - I feel like I've been looking at numbers and scenarios and nothing is making sense.
THANKS!
| CPA here. You and your spouse would have needed to live in the house for two out of the past 5 years to qualify for the section 121 exclusion (no gain on sale of home). For rentals, your gain is generally the selling price less the purchase price, less the improvements, less the closing costs. There is also something called depreciation recapture. If you have been depreciating the building, part of your gain is considered "due to depreciation" and that will be taxed at your normal rate. Finally, any losses you have carried forward over the past few years will be "released" and can reduce your gain. This link might help give you an idea:https://ttlc.intuit.com/questions/2553574-depreciation-recapture-on-sale-of-rental-property-for-gain. | I added topic flair to your post, but you may update the topic if needed ([click here for help](/r/personalfinance/wiki/flair)).
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Human: Next year I'll be starting undergrad, I've been weighing my options and have narrowed the decision down to two schools. I'm interested in a business degree but I'm not sure which program is worth it:
The first option is a traditional 4-year business bachelor's at a large, somewhat remote public school with a good reputation/alumni network.
The second option is an accelerated 3+1 yr BS/MBA program at a smaller, less acclaimed private school that is centrally located between the major cities in the region. The alumni network is less expansive, but the program allows completion of undergrad work during the first 3 years and a 4th MBA year at the same cost as 4 years of undergrad.
Upsides: Cost efficient (2 degress for the price of 1), would allow me to enter the job market with an MBA at a young age, I wouldn't have to worry about interrupting my career for grad school or finding a way to pay for it
Downsides: Extremely rigorous class schedule (the program has students complete the 120 undergrad credits in 3 yrs), MBA would not have the same weight as one earned from a top program
So basically, I'm looking for some advice on how to put the benefits/drawbacks in perspective. I know reddit is traditionally very anti-higher ed, but between my modest college fund and a decent scholarship at each, neither school would put me in any debt post-grad. I'm fairly confident that the first school would be doable academically, but I've heard so many horror stories of how a bachelor's is the new high school diploma and a waste of money. Would the chance to obtain 2 degrees debt-free (assuming I can handle 6-7 classes per semester and a summer internship) be worth the slightly lower reputation of the second school? Would a 23 yr old with an MBA actually be ahead of his/her peers, or would I basically be busting my ass for a couple of diplomas that mean very little to prospective employers?
| The MBA is usually useless to an employer if you don't have any professional experience. You'll most likely have the same opportunities post-grad with the first option you described. Having an MBA straight out of undergrad could even hurt you because employers may think that you're expecting a salary comparable to what they pay their other MBA workers ($100k+). These guys (and gals), however, have an undergrad degree, an MBA, AND 4-5 years in the field. | I am graduating with my BS in Business Administraion with an IS major. Mg starting salary is higher than somebody I know who will be working for the same company in essentially the same position and he is graduating with his MBA. I personally don't see a ton of benefit in the MBA programs like that but it depends on your ultimate goal. If you want to work for a bigger company they will probably pay for your schooling after you graduate and you can get your MBA through them. I like the idea of this too because then you have the opportunity to space out your learning. If I was to go to grad school right now I worry if be relearning the same stuff as my undergrad but if I waited 2 or 3 years there will be new technology I can learn. |
Human: Hello PF,
Quick background - I'm a college student pursuing finance and accounting degrees. I love to manage money, including trading options, designing portfolios, budgeting, ect.
Is it a thing to create your own firm immediately after graduation? I still have about 3 semesters to finalize my plans.
I think I want to become a fund adviser, but I don't know anyone who actually does this.
I don't want to enter a partnership, as that will cause business problems in the future.
In order to start a capital management enterprise, I would need to manage (a lot) more wealth other than my own - would it be difficult to create enough revenue to pay my own salary in the first year?
Should I try to pick up a position in someone else's firm to establish a reputation first?
Should I have another job - as well as my own firm and slowly build my business?
How would you go about this and does it seem ridiculously over ambitious?
| Why don't you work at an investment firm
then make your own after learning all the ins and outs of one ?
from my point of view, the only way to start investment firm is to have people hand you their money thinking you will give them back much more
put yourself in someone else's shoe, would you give some college student money ( what if he lost it all ) ?
has he done this before ?
has he ever worked in a firm before ? | You might have incorrectly formatted line breaks. To create a line break, either put two spaces at the end of the line or put an extra blank line in-between lines. ([See Reddit's page on commenting for more information.](http://www.reddit.com/wiki/commenting))
I have attempted to automatically reformat your text with fixed line breaks.
----
> Hello PF,
> Quick background - I'm a college student pursuing finance and accounting degrees. I love to manage money, including trading options, designing portfolios, budgeting, ect.
> Is it a thing to create your own firm immediately after graduation? I still have about 3 semesters to finalize my plans.
> I think I want to become a fund adviser, but I don't know anyone who actually does this.
> I don't want to enter a partnership, as that will cause business problems in the future.
> In order to start a capital management enterprise, I would need to manage (a lot) more wealth other than my own - would it be difficult to create enough revenue to pay my own salary in the first year?
> Should I try to pick up a position in someone else's firm to establish a reputation first?
> Should I have another job - as well as my own firm and slowly build my business?
> How would you go about this and does it seem ridiculously over ambitious?
>
----
^(I am a bot. Contact) ^[pentium4borg](https://www.reddit.com/user/pentium4borg) ^(with any feedback.) |
Human: Disclaimer: I am using a throwaway account to keep my identity hidden just in case someone I know sees this. Also if I need to go to a different subreddit I will do so immediately, just let me know and I will change asap.
Alright, to start this out I live in california, I am an individual who is still living with parents and is going to community college. In my spare time I have been working part-time jobs for nearly a whole year.
When I created my bank account I was a teenager and my father made it a joint account during that time. This is what my bank suggested to my family so my parents could keep track of my expenditures and income. I had no idea about any of this until now when I got my account levied, before I was led to believe that I owned the account. This is why I never got his name removed from my account as I thought it was my account in the first place. Fast-Forward 4 years and my father has now lost his job and could no longer afford to pay the taxes that he owed.
This year was the very first time that I ever filed my taxes, and doing this apparently caught the attention of the IRS that my joint account holder owed taxes out the wazoo. What I have read so far is that because it is a joint account they do not have to prove that the money in there is even remotely owned by the person who owes the debt. I have also been reading that I can file something that shows the person who owes the debt has no affiliation to the account whatsoever which is true because he has never taken from nor deposited anything into the bank account.
Conclusion:
My question is, what are the steps that I need to be taking in order to get my money back? I am already consolidating my deposit receipts for checks and anything else that I can get ahold of. Unfortunately though I have not been keeping track of everything like I should have been doing.
Obviously I'm a little bit frantic right now as I have no idea how I'm going to pay for my tuition next semester without that money. I mainly just wanted to get this off of my chest in order to relieve some serious stress that this has now caused as I think I'm doing everything I can for now. Also this is obviously not the best place to go for advice however it's too late at night to go anywhere for proper advice and I want to get this figured out ASAP.
tldr;
Had a joint account with my parent when I first opened it as a teenager, the individual didn't pay taxes years later, account got levied by IRS as the parent's name had been attached to the joint account. How can I get my money back?
Assistant: Sounds like you could be in luck here:
'Because minors in many situations cannot open bank accounts in their own names, the bank accounts list a parent's name, even when the children are the owners of the funds deposited. A levy on such an account to collect a parent's tax liability would be a wrongful levy, unless it can be shown that a federal tax lien encumbered the funds before they were deposited in the child's account."
https://www.irs.gov/irm/part5/irm_05-017-003-cont01.html
Human: That is definitely a silver-lining right there! Thank you so much for finding this!
Assistant: I was all prepared to write something about how you were probably in bad shape because of how the IRS treats joint accounts, but decided to double check their documentation. It seems like they have some sympathy for this situation; the result might depend on your age at this point. Good luck!
Human: I don't doubt that my chances are slim, that doesn't mean I'm not going to do everything I can do to try and get my property back. I am never trusting most of my money to banks ever again.
| Get the deposit record of the account and show it all coming from your paychecks and deposits also for your evidence.
Edit: This is not a bank problem, this is a scumbag parent problem. Do not blame the banks. | > I don't doubt that my chances are slim
The main issue is that the IRS quite rightly is generally suspicious that parents are hiding money in other accounts, so anything you can do to demonstrate that that is *not* the case will go a long way with them.
|
Human: This is all hypothetical of course. Let's say someone holds dual citizenship with country A and the USA.
They have two passports with two different names
(ex. John Steven Doe on passport 1, Stephen Doe on passport 2)
Currently they live in the USA and have about 10k in credit card debt and 20k in student loans.
If this individual were to move to country A with no plans of moving back to the USA, how would it affect that person's life in the future?
I know that they would still be able to visit the USA (friends and some family live there) but finding a job in the USA would be hard.
USA credit score wouldn't matter since the fictional person does not want to live/buy a house in the USA.
But if that person has no intention of residing in the USA, what other downsides are there?
On a side note if the person is to inherit property and cash in country A would they be liable for taxes in the USA?
What if the assets are passed to the second passport under the second name? Ex, no ties to USA passport
This is all hypothetical of course
Assistant: >If this individual were to move to country A with no plans of moving back to the USA, how would it affect that person's life in the future?
It wouldn't affect their life very much if they decided never to return.
>I know that they would still be able to visit the USA (friends and some family live there) but finding a job in the USA would be hard.
Finding a job that requires excellent credit would be impossible. But most jobs don't have that requirement.
>USA credit score wouldn't matter since the fictional person does not want to live/buy a house in the USA.
>But if that person has no intention of residing in the USA, what other downsides are there?
There really aren't any. There are no debtors prisons.
>On a side note if the person is to inherit property and cash in country A would they be liable for taxes in the USA?
Depends.
> What if the assets are passed to the second passport under the second name? Ex, no ties to USA passport
>This is all hypothetical of course
Too vague.
Bottom line: not much happens other than score tanking.
Human: I'm aware there is no statue of limitations on student loan debt, thats fine. For the credit card debt it is 7 years correct?
For the assets, lets say hypothetically I hold a US passport that says my name is Alex David Treehugger.
I also hold a foreign passport that says Dhaebid Treehugger.
If I have a bank account registered in the foreign country using Alex David Treehugger, then the bank would report my assets to the IRS every year. On the other hand, if that bank account is registered as Dhaebid Treehugger (using my foreign passport) then my understanding is they will not report it to the IRS as there is no "link" between Dhaebid Treehugger and Alex Treehugger. Is this correct?
In terms of inheritance, if I were to to hypothetically inherit roughly a million dollars in cash and about 2 million worth of property AND I register that under my foreign name and do not bring that money to the USA the IRS would have no way of knowing about the inheritance right? The only catch is that the overseas properties are currently held by a US citizen which may be taxable. If that was transferred to the "foreign" identity, would the IRS A) have any claim to the assets, B) even know about the transaction?
Side question:
Lets say I renounce my US citizenship, then apply for a residence visa for the USA with my foreign passport, and apply for a ITIN. Obviously the debt will still be owned to a social security number, but will there be a way for the US to tie my foreign passport/ITIN to my previous US identity/SSN?
Side question 2:
I know the USA for some reason wants income taxes filed/paid even if the income is earned overseas. If I were to enter my other country using their passport, and the wages are paid to essentially the non-usa identity. Would there be a way for the IRS to find out?
| Don't get Panama papered | You don't want to mess with the IRS.
Even those with Swiss bank accounts found out the hard way. |
Human: There was no actual reason she needed to be in the ER and then actual admittance as an in-patient. The short 15 minute procedure she needed done is a walk-in, walk-out thing. It turned from a visit to see an orthopedist specialist into a "I'm going to admit you to the ER now". He was being extremely pre-cautious but our wallet can't handle his amateur decisions (lower-middle class family with one income). He even admitted afterwards that it wasn't necessary as all she did was lay in a bed all day waiting for him to come by at night to discharge her. It was already frustrating as we didn't understand what was going on and I kept trying to figure out exactly why she needed to be there as it was not that severe. Can I challenge the bill with the insurance company when we receive it? It is going to be a hefty sum we can barely afford.
| It turned out there was no need for the ER visit and admittance, but doctors don't know that in advance. It was not an "amateur" but a professional decision. This turned out to be a false alarm but sometimes it is not. In this case, you will be on the hook for charges based on your insurance coverage. | You can't challenge the bill because you went to the ER. You can try and negotiate what you end up owing with the hospital, but if they won't budge you are SOL. |
Human: So...I have $1200 coming in, but not for a while so I need the $1200 now. I need to pay off rent and a few other bills. Is the bank my best option? I have had an account there for years. I have bad credit due to student loans. I don't have any credit at all based off credit cards (not good, nor bad). I need $1200 cash before April 29. I live in New York City. If anyone can tell me of another place besides banks, then I am open to recommendations. Thanks.
Assistant: I don't have a 6 month Emergency fund..
The cycle of debt thing doesn't concern me so much because I am in the process of getting that under control.
I found a website that seems alright. I'm gonna post the link. Please remove the link if it's a violation to post it. https://www.personalloansnocreditcheck.org/faq.html
Any noticeable red flags with this website that you guys notice right away?
| > I am in the process of getting that under control.
No you're not. I know this is bad form, but I clicked on your username and found out that you ignored your student loans thinking you could just not pay, you planned to send your wife to India to visit friends last month, and you're planning to have a baby in your current situation, too.
To get things under control, you need to sell some of your shit (perhaps that older macbook you mentioned), stop the spending, and, as both you and your wife are US residents, you both need to get a job - any job. If for some reason you're unable to work, you need to apply for assistance, not take out payday loans. Some of these companies are shady, and you don't want to deal with their harassment on top of everything else.
If you can't find work, can't sell anything, can't borrow from family, and can't curb spending, honestly I'd just try to explain things to the landlord and pay late. | You need to get the money from a family member that doesn't mind never seeing it again (The quickest way to lose money and family members is to loan money to family members), because you CANNOT fall into a short term loan trap. You need to either take the late payment hits, which will be cheaper overall than these predatory loans, or start selling stuff that you don't need on Craigslist. You can also prioritize your bills and talk to the creditors that you owe money to but are less willing to pay with your current money. |
Human: I currently owe $5130 on my car loan at an interest rate of 18% with 29 months remaining on the loan. I also have an emergency fund of $7000 and $15000 in retirement savings. I got the loan when I had no credit history and it has helped with raising it to a 640 (I’m still working on getting it higher unsure what else I can do to raise it). However I want to buy a home in the next 2 years and want to get rid of the debt but I am unwilling to use my emergency fund. I can however get a loan from my retirement savings for $4200 at an interest rate of 3.5% the remaining balance I will just pay. The money to pay back the loan would be deducted from my twice a month paycheck at 108.17 for a term of 20 months. I have already considered refinancing but I haven't found anywhere that would refinance it due to the low amount owed and the miles on the car. Getting rid of the loan will also help me lower my insurance coverage as I currently pay about $180 per month. So I am unsure if this is the right move in the long run. should I continue to just pay my monthly payment or should I do the loan from my 401k ?
Any advice is appreciated
edit: I currently pay $217 per month for my monthly payment. I normally have about $300 surplus in my budget however I have been saving that ever month. My current emergency fund would only cover about 3 months worth of expenses so my goal is to double that in the next year. I plan on staying at my job for at least another 3 years as they have also paid for my schooling and if I leave I would owe for that also
| Use the EF. What's it doing for you? Not much. If you have an emergency after paying off your loan and $2K isn't enough to cover it, THEN you can take a loan from your retirement fund.
I just think it's a really bad mindset to consider your retirement money as assets available for use. | I added topic flair to your post, but you may update the topic if needed ([click here for help](/r/personalfinance/wiki/flair)).
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Human: So I'm three weeks from graduating college, and my laptop has died. This is possibly the worst time for it to kill over. so my question is should I go ahead and use my credit card (Student Discover It card) to finance a new computer or should I try to finance through something like Apple (Barclay card).
Any help is appreciated!
| Craigslist. Get a used laptop from someone. People sell perfectly good laptops for under $100 on there.
Source: I sold a perfectly good laptop (just old) for $40 on CL once. | I second someone else's recommendation of a Chromebook. You get a usable laptop as an emergency for $200, then save up if you still feel the need to drop big money on a MacBook. My wife's MacBook died last year, and instead of immediately getting a new one we bought a clunky desktop PC for $85 until we could pay for a new MacBook with cash (which we also bought used, a 2011 model for $550).
Long story short, don't feel the need to have the best and newest where technology is involved.
EDIT: We also resold the desktop for $80, so we had a usable computer for two months for essentially $5. |
Human: Background: 27 year old single male with awesome job security (US military). I currently owe $20k on a Jeep at 1.4% interest. Grandma's estate was just settled and I'm receiving $20k today and another $20k in about a month.
I currently don't have an issue making payments to pay off the vehicle in a year and a half before I (hopefully) start medical school.
The vehicle is my only debt and I'm maxing out my Roth IRA and contributing over $14k annually to my TSP. What ideas does Reddit have for making more than 1.4% with Grandma's money....or should I just pay off the Jeep?
Edit: I don't believe is paying for my own education. The Army paid for my undergrad. I plan on being an Army doctor and having them pay for my med school in exchange for my continued service.
| No. Put the max in a Roth IRA for starters. Put the rest of the money away. You don't really gain anything by paying off a $20k loan at 1.4% that only has 18 months left. | The Jeep has no real equity. Save the 20K and use it as part of a deposit on a home. |
Human: My younger brother had someone hijack his debit card, I'm assuming someone made a copy of it somewhere. This person ran up a pretty hefty amount before my brother figured out what was going on, roughly $2K.
Now, being young, he was lackadaisical about getting the police report and paperwork filed with his bank, and exceeded the 10-day window. According to the bank, the debt has been sent to collections. From what I understand, he is now 100% responsible for this debt.
He has approached me about a loan to take care of this, of which my only real option would be to withdraw from my 401k. Naturally, I'd like to help my brother, but loans issued to family members rarely pan out.
Does my brother have another option?
I mean, he could just let it go to collections, let it hit his credit report and just suffer the consequences for the next 7 years, but I'd like to find a less detrimental solution that doesn't A) ruin his credit or B) put a strain on my own future with a hardship loan against my 401k.
Assistant: I'm sorry to hear this happened but I am also very suspicious that he didn't jump on this and is now willing to pay for someone else's fun to the tune of 2k. Most people would do anything to get their money back.
I highly recommend NOT taking money out of your 401k for this. Sadly, I think you should offer moral support and guidance, but not invest in this financially.
Human: I don't think he's taken money matters seriously, mainly because he's always had a safety net of people to help resolve these issues. He's never asked me for any major loan before now.
I've told him to keep fighting for this. I find it odd that the bank will not work with him, especially since the police report presumably includes a picture of the guy who hijacked his card.
| > I don't think he's taken money matters seriously,
If you fix this problem for him, we will continue to not take things seriously. Don't do it. | 1) It's not going to ruin his credit. If he doesn't setup some sort of plan with the bank to keep it off his credit—doesn't have any intention of paying it back—it'll negatively affect his credit (as it should) but that doesn't mean his life will be over. Not even close.
2) Assuming his story is 100% true as he's told it, maybe this is the consequence he needs to finally get his crap together. What's he going to do? Be "lackadaisical" for the rest of his life? If so, that's only going to drag you down with him. If not, the sooner he gets his act together, the better. Sometimes it takes a real hard failure for people to finally stop making the same mistakes. |
Human: I'm getting quotes for term life since we have a baby on the way. The first round of quotes I got were in the $250 a month range for 30 year term, $1 million in coverage (I make 50k, I had read the rule of thumb was 20x income but I don't really know if that makes sense). As it is, I get 1.5x my salary through work.
The premium is so high due to my (well controlled but whatever) mental health diagnosis, and I think we can't justify it and would be better off saving the money. I will talk to the broker about different terms and coverage amounts but I feel like even at a lower rate, it wouldn't be worth it and we should just try to self insure for me. I will still see about my husband, who makes 2x my salary and hopefully will be considered in better health.
If the baby and the cost of daycare wasn't looming, my husband would definitely be able to maintain our lifestyle without my income. But daycare will take up about half my take-home pay.
Any thoughts? I was trying to get my ducks in a row and I'm feeling discouraged.
| The point of life insurance is to allow the surviving members of the family not be financially ruined. So how much money would your family need? 1 Million seems like a lot since your husband can almost support the family by itself. Getting the 5 (until kids in school) years of daycare and maybe some other help couldn't cost that much. Look at lower amount, maybe $250k. | In addition to everyone else's points below, consider a MUCH shorter term. 5 or 10 years max. That is the time period where your husband would have financial difficulty taking care of the kids if you were to die.
And the shorter term should significantly reduce the monthly costs. |
Human: I apologize for such a vague and stupid post, but I have no background in personal finance. I've always heard credit unions over banks and I believe that's where I should start in terms of a healthy financial state. I'm in the state of Michigan if that helps any. Need advice, any would be appreciated!
Assistant: Credit unions are not inherently better than banks, and banks are not inherently worse than credit unions. Decide on the banking services you need and go with whatever institution offers them at the lowest cost.
Human: I appreciate that clarification. What I'm looking for is lower fees and rates, that's really all I'm concerned with honestly.
| An online bank is probably even better then. | What are your fees at boa? I have $0 monthly fees on my checking account so long as I stick to strictly e-banking, which is all I ever do anyway. The monthly fee on my savings account is waived so long as I have $500 in it, which should not be a problem for most people. |
Human: I'm 29 years old and outside of my cash savings of ~$15,000, 401k / pension of about $120,000. My Roth IRA is currently at $13,935.16 and my other investments (mostly dividend stocks) are valued at $14,435. My only debt is my car note of about $4,000 and my mortgage of $240,000 which is shared with my brother. My credit cards are paid off each time I get paid.
I currently have a Roth IRA fund setup through Vanguard. I am currently investing in VEXMX. I have contributed $13,650 and have had gains of $285.16, this is a 0.1% return. This is a level 5 (the highest risk fund) per Vanguards rating system.
I was suggested to this by a friend who has more financial knowledge than I do. I don't know if this is good, about standard, or horrible.
I don't even know where to begin to look for funds, or things to invest in; there's so many, it's overwhelming. Should I look for something else? Should I leave it where it is? I know I am young, but I would prefer to error on the side of playing it safe.
| If you want to be passive about this account (just put the money in and not worry about it), then a target retirement fund might be a good idea. Just think of the year you are retiring, and pick the fund that is nearest to that year. They then invest your money in varying amounts of risk depending on how close you are to the target date. | I do a mix of Vanguard 500 Index, Vanguard Life Strategy Growth, Vanguard Target Retirement 2045, Vanguard Total Bond Market, and Vanguard Total Stock Market. With just these since 2008, I am averaging 11%. Something you can consider. |
Human: I've been wondering this recently, brought about by reading r/pf and seeing a constant theme of sacrificing everything to pay debts, without taking into account "opportunity costs" (basically, how much a person's free time is worth).
I'll use a personal example - we are high income ($182k base), high debt ($335k). They are all student loans at 4% fixed or better, no CC debt and we do not own a car.
(link: https://www.reddit.com/r/personalfinance/comments/4fp0ds/paying_off_335k_in_student_loans_any_advice)
In our situation, we are averaging paying $7.5k+ every month for our loans, with an estimated payoff of 5 years. I have high rent costs ($2400), but they allow me and my wife to walk to work, save $250+ in transportation expenses each month, allowed us to sell the car, shaved 1+ hour each day for both of us, give us more time to cook, spend time with each other, close to free parks and activities, etc.
I've run the numbers, and a comparable place would be $1800 further north (Chicago). That's $600 cheaper, but the extra transportation costs of $250 kick in so it's $350. Also, utilities are included at my current place (including internet) so subtract another $50 from the differential.
Over the 5 years we will pay the loan, $300p/m (which I still believe is on the high end, we didn't factor in moving costs, the fact that grocery stores are further away, additional healthcare costs as we are exercising less/sleeping less etc) works out to $18,000
That's roughly 2.4 additional months of paying the loan, but it involves 2,500 additional hours of commuting, which equals 2,500 less hours together. Coincidentally, 2,500 hours divided by 24 hours in a day is exactly 3.4 full months... so what we saved in time on the back end we paid for over 5 years on a daily basis.
I guess the question is, at a certain point of income additional tweaking of finances results in marginal (at best) improvement. At what point do you say "good enough", knowing you'll never be able to live those 3-5-10 years again?
Thoughts?
| I think a lot of people underestimate the value of a shorter commute. If you'd spend 2 hours commuting (1 per person per day), then at your current salary level that's equivalent to about $189/day. It's also a lot less time that you get to spend with your SO or with your friends, or cooking, like you said. With a salary at your level, even with your debt, you can afford to spend 24k/year on rent so you can keep your commute time down. Factoring in the added costs for transportation if you were farther away, it's probably less than $3500/year to save yourself 2 hours of commute time each day.. definitely worth it.
When deciding what to spend money on, I generally compare the costs of something now (like a more expensive apartment) to the amount of extra time I'd have to spend working at the end of my career. If something costs me, say, $100, that's equivalent to maybe 2 days that I wouldn't have to work before retirement (for example). So if I want to spend that $100, I have to decide if it's worth working 2 more days for that item.
If your goal is just to have enough to spend to make your family reasonably comfortable and you plan to work until at least 60+, then cutting down hard on every possible expense isn't really as necessary, as long as you're saving enough for retirement and you have a reasonable emergency fund.
I think paying down your debt aggressively is a good idea either way, since most people feel a lot more free when they do that, and it gives you more options for switching to lower paying jobs if you choose that path, but if the debt doesn't worry you as much, just paying it down on a schedule of some sort is fine. | What you're describing is privilege. The line you're asking about is the amount of money that allows you to consider this. I pay $1600/month in rent to live 15 minutes from work. I could pay $1000/month and live 45-60 minutes from work. I go home and walk my dog at lunch. My boyfriend and I get up at 7 am in the morning. We eat breakfast, take showers, get ready. He leaves for work at 8 am to get to work at 9 am. I continue getting ready, clean up, have another cup of coffee, watch the news, take the dog out. At 8:45 am I get in the car for work. We both usually arrive at 9 am to our jobs. Sometimes he's later depending on traffic. At 6 pm we both leave work. I'm home at 6:15 pm. Change clothes, play with the dog, do some laundry, have a glass of wine. Boyfriend gets home at 7 pm and we go grab something to eat. He makes $20k more than me.
He is so jealous of my extra time that he's looking to change jobs to be closer to home even if he makes less. Together we make about $150k. But we can afford the extra rent. In college it wasn't an option. I had to pay less for rent. I had to make decisions about paying rent or car loan or cell phone. It was stressful and I was very unhappy. I have student loans too but I'm not stressing them. I couldn't be happier. As long as I can pay my bills, it's totally worth it to have the extra time. I'm privileged now and so are you.
Edited due to typos. |
Human: I got a check for a 401k rollover last year after I got laid off from my job. Now I've changed my mind about rolling it over and would just like to take the money and pay down some bills. Is there anything I can do with the check to deposit into my normal checking account instead of putting it into an IRA?
| Wait you have had the check for over 1 year? You only have 60 days after removing funds from a 401k to roll them over. After that you are taxed even if you deposit the amount into your new 401k. So if you took the roll over in 2015 you would of paid taxes on it with the tax return you filed recently. If not you need to refile your taxes because you missed the roll over exemption period. | I added topic flair to your post, but you may update the topic if needed ([click here for help](/r/personalfinance/wiki/flair)).
You may find these links helpful:
- [General Information on Rollovers](http://www.reddit.com/r/personalfinance/wiki/retirementaccounts/rollovers)
- [401(k) Fund Selection Guide](http://www.reddit.com/r/personalfinance/wiki/401k_funds)
- [401(k) FAQs](http://www.reddit.com/r/personalfinance/wiki/401k)
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Human: I'm really in a bind.
I've moved around several times in my life and now it's time for me to find a new apartment complex to rent from with a roommate.
In applying for a place to live two things happened. My application was denied due to a judgement for a non payment of rent. This was from a summons to court from non-payment of rent that was promptly paid in full. After the rent was pain in full the court date was dropped and so was the suit. This is the only time in my life something like that had occurred and it occurred in 2012.
The current complex I am applying for could not see that I didn't owe the old apartment complex money for this so they denied the application.
I worked back and forth with the old apartment complex to obtain proof that I do not in fact owe them any money but they couldn't without a doubt prove that I didn't.
Apparently when I moved out they went through a period of "transition" and lost digital records of me living there. They had to go through cold storage to obtain proof that I even lived there, then to find my rental ledger. On the ledger it states several write offs at the end of the lease and to them that means I owe them a sum of 1787.37.
I know I paid rent that last month, and I never received a bill or a collections notice. In fact I had them verify it never went to collections.
I moved out in 2013 and was not expecting this now.
I have zero proof that I paid rent I think because I paid rent with money orders, I don't know of a way to obtain those again. I did not have a printed receipt of rent paid given to me.
I don't know what to do and could use any advice at this point.
TL;DR apparently owe money to a place I don't live
Edit: spelling
Update:
Thank you everyone for all the replies, a lot of your advice has been extremely helpful.
So I took the time today to go to the old apartment complex and gather some more information from them. I learned a couple of new things.
First the lawsuit never went to court and therefore is not on my credit report but on a record in a database that most rental agencies use for rental history called "leasing agent".
Secondly they went through the ledger with me and together we discovered that they don't have record of me paying rent in November of 2012 and April of 2013. In my mind and my argument was that if I hadn't paid those months but continued to live there I would have been evicted. From what I can gather they had some really terrible record keeping with the old management.
I think my best bet at this point will be to obtain bank statements from Wells Fargo that I purchased money orders for the amount of my rent on these dates to hopefully prove that I paid rent. The only wrinkle here is I no longer have a Wells Fargo account, so I'll have to go into a branch and speak with a banker.
| The fact that you were sued for non-payment of rent, even though you paid the balance (which indicates that you agreed that that amount was owed), indicates to potential landlords that you do not have a history of on-time payments. That in and of itself is enough for a landlord to reject an application.
I would focus on repairing your credit report first. It sounds like you have a judgement on your record. This is bad, very bad. Get proof that the case was withdrawn from the court and send this info into the 3 credit reporting agencies when you dispute the claim. Asking for proof of debt does not apply in this case because this is a judgement by a court, not a collection agency.
It goes without stating but one should always pull his credit report for review before applying for credit. It sounds like you haven't pulled your credit in years?
Good luck. | If you can remember where you purchased the money order at the time, they should have a record of it being sent (and can tell you whether or not it was cashed.) This is probably a long shot and may not help much, but it's something. |
Human: I'm 27, I make 120k a year, car will be paid off next month. Rent is 2200 (Bay area), car insurance, phone bill, and Internet are my only expenses, plus about 100 in subs (hulu etc). After all other living expenses, I'll have 3k+ leftover every month. WTF should I be doing with this money? I keep thinking maybe I should start buying up real estate back home (houses are like 150k) but is that really a good idea?
| Please read the information found in the [wiki](https://www.reddit.com/r/personalfinance/wiki/index), particularly ["I Have $[X] ... What Do I Do With It?!"](http://www.reddit.com/r/personalfinance/wiki/commontopics). You may find [Your IRA and You: Basic Information](http://www.reddit.com/r/personalfinance/wiki/iras) and [Your 401k and You: Basic Information](http://www.reddit.com/r/personalfinance/wiki/401k) worth a read as well.
| I would only consider buying real estate more than an hour away if it was just bare land. For renting houses you really need to keep an eye on them. Plus in between tenants, you need to clean them up and fix them, etc. Renting hunting land or farm land is less of a hassle, but still has things you need to deal with in person. |
Human: I had to take a 1-mile ambulance ride. Billed amount was $1227 (flat rate pf $1200 + $27 of mileage). The ambulance was a municipal EMS of a large city in the US.
My insurance (United) covered 70% above a $1000 deductible, so I'm left with a $1068 tab.
I have already called the insurance and they said they can do nothing about it.
I called the EMS and they mentioned a payment plan and the financial hardship option, they did not mention a reduction in the billed amount.
I don't think I qualify for the hardship, I have a decent job and salary. However, the $1k bill represents months of savings and that's really hard to accept when your have a "good' insurance.
A few questions:
1 - What are my options to reduce the billed amount?
2 - What is typically the due date?
3 - What will happen if I don't pay and it goes into collection?
Thank you.
| >What are my options to reduce the billed amount?
Call and ask if they will reduce it.
>What is typically the due date?
A month or two, but you should ask.
>What will happen if I don't pay and it goes into collection?
It will stay on your credit report for 7 years. Bills in collections are not good for your credit. | What state are you in? Some do not allow balance billing for emergency services. |
Human: Hey all and thanks in advance for any advice.
Recently laid off and was given a severance and the option to stay for a while to train in my offshore replacement (lovely). With the retention option I will be given a 'retention bonus' in order to keep me motivated. Will the bonus be taxed?
Also I was a part of our 401(k) program where they would match my contributions. I still have a few months at the company as I have elected to be a part of the retention policy. Will they continue to match my contributions? If not do I stop contributing to it?
Thanks again!
| Taking the retention bonus is a smart move for sure. It will be taxed like anything else though so just prepare yourself for that. I would pretend nothing has changed until the last day (so contribute to your 401k as normal) other than polishing that resume and looking for your next opportunity. And of course more reddit at work and longer shit breaks and lunches! | File an unemployment claim. One month after being laid off, get health insurance off of the exchange. If you have 0 income, or now make less than 1,300 a month in unemployment, you may qualify for free health insurance with medicaid. |
Human: First off, sorry if this is the wrong place to post this.
So, some background. My husband and I are currently renting a house while we get ready to buy. It's an older house in quiet residential neighborhood. We moved in January of this year and are the first renters to live here. Our landlord is in Spain for work but has owned and lived in the house for over a decade.
Yesterday we received two W2s for the same guy, postmarked January 26th. They we're being returned because they were undeliverable and our address was listed as the return business address. I looked up the company and they seem to be a somewhat shady satalite installation place. The address I found online was for a place about 6 miles away, but in another state. I called what seemed like a cell phone and spoke to a guy who admitted it was weird but offered no other help.
Could we run into trouble when we file next year since our address is listed as a business on some people's W2s?
| I've received correspondence for the previous tenants of my house and their business. From what the neighbor tells me, they have moved several times since moving out of my current house and are fleeing both tax authorities and pissed off customers (they were a consignment shop and apparently just took everything and left without a trace).
We just mark their stuff as "no longer at this address, return to sender". The worst that has happened has been certified mail to me in my name, from someone who looked up the current owner of the house in the hopes of suing the consignment shop. I ended up finding them online and telling them what had happened, and they backed down. Even the state AG has sent letters but they just get returned to sender'd like everything else since they're in the name of the business. I've been living at this address for four years now.
You'll be fine. | USPS doesn't seem to care that mail gets delivered wrong, or at all, so trash it. |
Human: Hi everybody, I'm graduating from college at the end of May and have been applying for jobs like crazy the last couple months. I received a job offer from a smaller local company and need to give them a response on Monday. However, I interviewed at one of the largest banks in the country about a month ago. They told me it would take around 6 weeks to get back to me. My issue is I don't want to accept an offer and then renege on it. Here's the details on the jobs:
* Job 1 at local company - $45K a year, good benefits, employee owned company with ESOP stock program and 401K match. 15 minute drive from my house. Company is around 350 employees so there is some room for growth.
* job 2 at big bank - So obviously I don't know the details since I haven't been offered the position yet. My best guess is they would start me at $50K. Job is also only 10-15 minutes from my house. Because of the size of the firm there would be a lot of opportunity for growth and would look amazing on my resume if I left.
For job 2 when I interviewed it was a college recruiting type event and they had 5-10 other college students in to interview the same day. I interviewed with three separate employees and one even told me he would recommend me for a position. I know the usual tactic is to tell the job that you're waiting to hear back from that you have an offer on the table. But I think because of the size of the bank and the fact that it was a recruiting event where multiple candidates are on the same schedule that they wouldn't hurry their decision up because of a competing offer.
I guess I'm just looking for advice on how to proceed with job 1. I can't deny it because nothing is guaranteed with job 2 and I need some form of employment. The employers are in completely different fields so I don't think there would be much of a backlash from reneging but I still would feel like a dick. Thoughts?
Assistant: Accept Job 1 if the deadline is close and you heard nothing from Job 2.
Case 1: Job 2 gives you an offer and then you just reign Job 1
Case 2: Job 2 does not give you an offer and you keep Job 1.
This is better than just declining Job 1 since you'll be out of luck if Job 2 doesn't go through.
Human: Thanks for the advice. This is what I was thinking. I just don't know how bad reneging on an offer is. Any experience with that?
| They would fire you in a heartbeat if their situation changed. You owe them no more loyalty than they owe you.
| I have no personal experience, but I do know some people who rejected their current offer that they accepted for a better offer. I think in general once you reign in the offer, you have probably burnt the bridge with that company and they will be unlikely to hire you again in the future. |
Human: Basically what the titles says. I have about $25,000 in a 401k with Vanguard that I will not be contributing to for at least the next 4 years. I have a Roth IRA with Merrill Lynch and their financial advisers it recommending I rollover my 401k because I no longer work for the company.
Any thoughts?
| Have you worked this year? If so, I would wait to do it until 2017, since presumably you will have $0 of income then, so when you convert it from your (presumably Traditional) 401k to a Roth IRA, you will fill the bottom buckets at 10%. You might even want to spread that over two years in 2017 and 2018, assuming you won't be earning anything in 2018 either.
It'll be nice, putting that money in the lower tax brackets, especially when you are presumably earning much more as a doctor later. :) | I added topic flair to your post, but you may update the topic if needed ([click here for help](/r/personalfinance/wiki/flair)).
You may find these links helpful:
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- [401(k) FAQs](http://www.reddit.com/r/personalfinance/wiki/401k)
- ["How to handle $"](http://www.reddit.com/r/personalfinance/wiki/commontopics)
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Human: My apologies if this isn't the correct subreddit for this question but its been a few weeks after making my initial contact with the Insurance company who promised to send out a form packet for me which I have yet to receive. They finally emailed me the forms which I need to have filled out today, and I'm starting to get the feeling that they're beginning to give me the run around so I'm just curious as to why they would ask this information and how pertinent it is to answer it truthfully or just leave the answer section blank.
| You should definitely be truthful, else you could leave yourself open to a fraud charge, and could invalidate an otherwise perfectly valid claim.
As to why they ask, it's likely just part of routine and appropriate fraud prevention. If someone had a bunch of new policies from several different companies, that could be a sign of fraud and might lead to further investigation. When you buy life insurance they ask similar questions, because someone buying unreasonably-large policies, and spreading it out among different companies, is probably planning something bad. | because people sometimes have multiple insurance companies for the same thing..... |
Human: Right now my fiance and I are moving from my parent's house to a master bedroom in a shared home with some people our age (mid-20s) for $500 a month split between us per month -- a serious steal for being within public transport distance to NYC.
We just graduated college in May and are settling into our new jobs that we got in January.
I have two part-time jobs doing video production & social media management that pay about $500-$600 a week. I work 40-50 hours per week. My fiance does similar work and does manual labor on his days off. His income isn't as steady, but he pulls in $300-$500 per week.
Combined, we're probably making about $40,000 a year (I think? I'm terrible at math and I haven't sat down and really looked at the numbers yet -- planning on it this week)
We work every weekday and most Saturdays, so we're busting ass all the time. The problem is that people don't want to pay us what we're worth because we're young, it seems. I did 6 unpaid internships in school, one of them at a major film production studio in LA so I have tons of professional experience.
I signed on to one of my jobs for $11 an hour as a social media assistant with a few job duties-- turns out, this woman is incompetent and I'm literally running her business for no extra pay! I guess it's good experience, but I don't know how on earth I'm ever supposed to start a life working this hard and earning so little money -- I'm making a fast-food salary running an advertising business...
Once she realized how much I was capable of, she dumped all of her responsibilities on me. I plan on leaving when my 4-month contract is up in May. I might start making less money then, because I want to teach yoga 3 days a week -- which I have a certification for on top of my college degree, because it's something that I'm passionate about.
When I think about all the things I want in the next ten years -- a small wedding, a starter home, a child -- it makes NO financial sense with the wages that my fiancé and I make doing jobs that require very special skills, like advanced editing software and everything we learned in college at top programs.
I totaled my car a few months ago and I was lucky that my parents had an extra (my sister is away at college) but when she gets back next year, she needs the car back. I have to buy a car this year and my dad is seriously pushing for me to buy an $18,000-$25,000 certified pre-owned or a new car when I just want to buy a $5,000 used car in cash and not have to worry about making car payments (though he offered to cosign which is cool). I'm still trying to decide what to do about that situation.
I don't live any kind of lavish lifestyle. I get drinks with friends once a week ($15 total), travel once a month on a camping roadtrip for a weekend ($50-80), and eat out at a diner with my fiance once or twice a week ($20-40), buy a handle of vodka twice a month to keep in the house ($30 each time), and we buy weed once a week ($20).
Otherwise, my day to day looks like this:
I go to work, spend $5-9 on lunch, come home, go for a run or do yoga in my room (can't afford/don't want a gym membership), smoke a hit of pot, make dinner (simple, cheap meal -- usually stir fry, a salad with tuna, or an omelet), then my boyfriend and I watch Netflix and have 1 or 2 vodka-seltzer drinks then pass out.
Rinse and repeat.
On weekends sometimes we'll treat ourselves. We spend anywhere from $40-200 regularly on weekends. This weekend we got new tattoos (obviously not necessary, but it's a treat) and spent $160 including the tip.
I don't get haircuts and I cut his hair. I stopped wearing makeup so I didn't have to pay for it, I even stopped shampooing everyday to save on that.
I know the first piece of advice will be "stop spending money on drugs and alcohol" but it's only $200 a month, which isn't a tremendous amount.
Assistant: >Underpaid Millennial
This is where I have a problem. The world doesn't owe you anything. You're only due what someone is willing to pay you. Get your head around that and deal with it.
Also, please don't consider purchasing a vehicle that's worth 100% of your annual income. Buy a used car ~$7-10k from carmax and purchase their warranty. Cut out the weed or alcohol. Save that money and start building an emergency fund. Try to get around 4-6 months of expenses in the emergency fund.
>I know the first piece of advice will be "stop spending money on drugs and alcohol" but it's only $200 a month, which isn't a tremendous amount.
I also have a problem with this statement... You're asking for help but you've already rejected help before someone even made a suggestion.
BTW, I'm also a millennial.
Human: No, the world owes me everything! (Really?)
I didn't reject help. Just rejected cutting out the $200 I spend on that. It's the one thing I don't think is that much of a financial burden that it should be cut out.
Car advice is good shit.
Around 1990 the median housing price in the US was 100,000 roughly. Now it's ~300,000. I'm making the same wage my parents did when they bought a small house in 1990 when they were around my age, despite the insane housing inflation. Not to mention the thousands and thousands of dollars student debt sets back so many people in our generation, my finace included. I doubt I'll have a house and the loans paid off by the time I die. Forget about retirement. You don't think that's fucked?
| The whole world doesn't owe you anything was a bit over the top. Sorry for that.
Now back to the issue you shared. The thing is, from your OP, the weed and alcohol is the easiest thing to cut out. When the economy goes to shit, the first thing that people start cutting out are luxuries. In your post the weed, alcohol, trips, and nights out are luxuries.
So you have 2 options here. Change the way you live or earn more money. I can't help you earn more money since I don't know what you really do and my career path is WAY different than yours.
Now to the second part. It is fucked. But the student debt issue is another whole separate fucked issue with way to many parts to it to get into it here. But there really isn't anyone to blame than yourself. EVEN if the student debt crisis was caused by government back loans. YOU'RE the one that chose to take out the loan.
The minimum wage in 1990 was $3.80 and now the federal minimum wage is $7.25 with it being $9.00 in New York. So it's not like people are getting paid less or even the same. The issue is that you're in a field that: 1. there isn't much demand for or 2. you haven't become the best at yet. | What about the other 800$ a month you spend on fun stuff? |
Human: To make a long story short, my wife's parents want to give us $15K to pay off debt (my $6K school loan and her $9K car loan). What's the potential that this might screw us at tax time next year? Any risk? We live in NY state.
| It's within the gift tax exclusion and shouldn't be a problem. Also the donor would be responsible for the taxes anyways.
The only think I can think of is that you won't be able to deduct your interest payments anymore. But that's small trade off for becoming debt free.
https://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Frequently-Asked-Questions-on-Gift-Taxes | If they write one check for 6K and one for 9K there will be no problem |
Human: Hey There Personal Finance,
I'm a commission employee who had a very nice year last year. My employer owns me around $20k+ and in the past I've taken a big fat check, which has a big chunk taken out as taxes. Last year I used that check to put a down payment on a house for my wife and son, and this year, well, I'm looking down the road. As I stated above, my job has no structured 401k plan, and I'm a finical rube. I have no idea what I should do, 401k? Ira? Give it to David lee Roth? I can take that money any way I want, I can take it as one lump sum, spread it out over the next year per pay check, take 1/3 of it at a time, whatever. what is the best way to maximize my earnings for future retirement?
| Max out your IRA ($5500) to start | Follow these steps in the [wiki](https://www.reddit.com/r/personalfinance/wiki/commontopics) |
Human: Recently started working for my uncle. It's really informal. I'm not an actual employee and he just pays me in personal checks.
Could this cause issues with taxes and stuff? I've already made $2K untaxed that hasn't been deposited into my savings account yet
-16 y/o btw
Assistant: You're being paid under the table. Probably fine for now. Technically not legal, but transactions in the "underground economy" happen every day, especially in little jobs like this.
You won't need to bother with taxes until you are an official employee somewhere, and you're not going to get in any trouble...unless you start running around telling the IRS what you're doing. Don't do that :)
edit: Downvote me if you must, but I'd wager to say that at least half of you out there have gotten paid under the table in some way or another in your lives, whether it be an uncle, parent, family friend, whatever. Happens every day, and it's hurting no one. Naturally my tune would be different if he was a little older and working a real job.
Human: If I decide do deposit this $2K into my savings won't that be suspicious?
| No, you'll be fine. | Nah man.
thats about the least suspicious financial transaction I've ever done. |
Human: I want to put the money in it's own account so that the business funds are fully separate. I'm sure theres a lot of advice already on here but I didn't see anything about this. Is there a specific type of account thats best for this type of thing?
| Unless you have legally established your business, you will be keeping that money in personal accounts anyways. If you want it completely separate, then go open a separate account just for this money. Honestly, just treat the $3k like you would normal savings and eventually when you get your business going and actually establish your business as a legal entity, then you can open accounts in your business' name and put the money there. | It is fairly simple to set up a business account. Ask your bank what they require and wait for a business account promotion to minimize fees. |
Human: My dad went to prison in 2014 and he had roommates so I had to get power of attorney and put my name on the deed to evict the ones who refused to leave and turn off utilities. He got out and went back 2 weeks later so 2014,15,16 is not paid.
I have a house and life of my own so I have not paid the taxes because it's not responsibility and he planned on paying them when he gets out. I called the tax assessors office for the county he lives in and they said there has not been a suit filed yet and I'll get a letter and it could take another year or even longer. I was looking for advice because I'm trying to figure out of it should sell it or let it sit until he gets out at the end of the year! I haven't paid it because it's a condemned, crappy house and I won't do his job for him. Just looking for some like experiences to help me decide what to do!
| You don't want to pay the taxes, don't want to sell the house, don't want to make your Dad mad and don't want this to effect you. One or more of these things is going to have to give if you want a solution. | It's a little late for this, as what's done is done, but you should have just gotten a limited power of attorney to evict the tenants. This would've limited your liability on the property and accomplished the end goal of eviction.
As to your current issue, I didn't see anyone else mention this here: why not find another tenant to rent the property? As another user mentioned, put up the money for the taxes and file a lien on the property for the amount to protect yourself. Use the rent money to pay yourself back to satisfy the lien and future tax payments until your dad gets out of prison.
If and when you get out of this, don't mean to pry into your personal life (you are asking for personal advice on a public forum though), but I would get my name off that deed stat. Doesn't sound like your dad has the most stable living situation and you can really get screwed with how things are currently set up. |
Human: I'm trying to decide between a job offer I received today and staying with my current company. Any objective advice is most welcome!
Details about my current job:
-Market research
-been there for almost 3 years
-$62K per year (I am definitely underpaid, and my managers know this for a fact and say they have no power to change that. I was told that new hires in my role make at least $70K)
-$6K per year in tuition reimbursement (all of which I use, and I would have to pay this amount back if I leave before next year)
-16 days vacation + 4 personal days + 10 sick days. 10 vacation days may be carried over (which I did last year)
-very flexible (I work from home 2+ days per week, daily hours can fluctuate, I can work remotely whenever I need/want)
-company is in flux (lots of jobs moving to India [though mine is not immediately at risk], just got a new CEO, attrition rates are high, changing structure of our product lines)
Details about the offer:
-Operations benchmarking (IMO, less interesting than current role)
-$80K per year
-No tuition reimbursement
-15 days of vacation (I would use more than this within a few months of starting, as I have a 3-week trip planned, so I'd be in the red by the fall)
-fairly flexible (can work from home if necessary)
-company is stable and keeping jobs domestic
-another important point: I have received an offer from this company before, and used it to get a counter offer from my current employer. That was about 8 months ago.
Essentially, I like my current job but I'm grossly underpaid. I'm a 25 year old female, and I feel like if I don't get this salary bump now it will just get harder the longer I wait, especially when I want to start a family in a few years (I don't like it, but I'm trying to be realistic). However, I don't feel like I will enjoy the offered position as much as I enjoy my current position. I also feel that my current position gives me more pertinent experience for where I want to be in 5 or 10 years, but I'm missing out on the financial leverage I would have with the offered job.
The other aspect is that I am in the interview process for another job I *really* want, but it will be harder for me to get. That's with a big company, and I won't be done with the process for a couple of months. It would also require a big move to a very expensive area, so I'd be looking at a salary of ~120K (approximately equivalent to the 80K I was just offered, considering cost of living). In a Shark Tank Mark Cuban-esque move, the company that offered me the job said they want a decision by Monday, before I can talk to the other company I'm interviewing with.
I'm sure some of you have been through these situations before--any suggestions?
TL;DR I don't know which job to choose.
| Two possibilities.
1. Take the new job. If you then get the third job, walk off after six months or so - a little sleazy I know, but you don't owe them anything, anyway.
2. Realistically evaluate the chance you'll get the third job. If reasonably high, stay in the current job, because what's the point of switching in that case. If low, then you're back to where you are. From a strictly financial perspective (and stability), the new job seems a bit better, even accounting for the tuition reimbursement and the extra vacation.
By the way, you might be able to negotiate the planned trip/vacation into unpaid time off if you negotiate it before you sign on the dotted line. | Take the new job no questions asked, even without tuition assistance your way ahead, and eventually won't be in school so that will just be extra money in your pocket and not only extra money you getting from your current company if you go to school. |
Human: SO and I have been together 6 years now.
For the last 2 years, we'll put shared expenses on the credit card and then at the end of each month, I'll try to pay off the full balance with my own salary. We then have a running tab of how much he owes me for his half of shared expenses and every couple of months I'll tell him to pay me back. Sometimes he pays several hundred, sometimes $1000 or $2000. However, it's sporadic and never within the same month of the charges so the credit card balance carries over and we incur interest charges. I haven't required that he pay half of the interest charges. I've been eating that cost for 2 years.
I've been lax about requiring full payments of monthly joint expenses because, for a while, he didn't have a job after graduation and now doesn't make a lot. On top of that, he has student loans and credit card debt. I thought I could cover all shared expenses at first so he could pay off his cc debt and student loans faster.
His salary before taxes
48K if overtime continues all year.
34K base salary
His monthly expenses
Rent - $600
Internet - $11
Electric - $25
Netflix - $12
Gas - $30
Car insurance - $50
Groceries & household items - $250
Eating out - $200
Misc items (video games etc) - $?
Owes
Student loans - $80k ($200 min monthly payment)
Credit card - $6k ($30 min monthly payment)
Owes me for previously unpaid shared expenses - $6k
Based on his income and expenses, should I require that he 1. Pays me back the $6k first before his other debts and 2. always pay shared expenses on time? Or keep cutting him slack and I'll focus on limiting our joint expenses even more? Budget for the both of us? We could stop eating out and spend less on groceries, household items.
Assistant: First stop sharing the card. Immediately.
Second, if he owes you money he can cut out the video games, netflix, eating out. That money saved can go directly to you.
Human: I've talked to him about this, and shopping around for lower car insurance, but he won't take action. He says I have good points but he doesn't think these are unnecessary expenses. He doesn't want to live like a monk, despite his debts.
Writing that out makes it sounds even worse.
| Easy to not live like a monk when you have a stupid SO to pay for everything | This is a bit late as I didn't see your reply for awhile but one thing I'd bring up to him if I were you would be that he seems more concerned with continuing his lifestyle than he does your well-being. This appears to be more than just a financial issue. |
Human: I was in a car accident (the car was completely paid off) and as a result the insurance company of the person at fault will be paying me a check to pay for my car as it will be considered an economic total loss. This check will be big enough to pay off all of my credit card debt. I could pay off all of my credit card debt and get a car loan for the used car I plan on getting soon and have manageable monthly payments on that. Or, I could use the check to pay for most or all of the car and continue to pay off my credit card debt in chunks.
Or maybe I could just save it and use the money as a back up for both.
Which would be the better idea? My SO and I live together and we're moving soon because he's going to grad school and I'm currently looking for a job for when we move in August. I'm worried about the possibility of a gap in employment and paying my bills until I secure my next job.
EDIT: Credit card debt: about $4500. Insurance check, still working on that. I was given an offer but I am allowed to counter offer, probably will be around the same amount as the debt though. If anyone has advice for counter offering please feel free to advise or point me in the right direction. Credit rating is around 700-730.
I should also mention that the $4500 I recently moved to a 0% interest credit card where it will be 0% interest for 12 months. I just hate having it over my head.
| Need the following:
* Interest rate and amount of CC debt
* Amount of insurance check
* Approximate credit rating wouldn't hurt | I added topic flair to your post, but you may update the topic if needed ([click here for help](/r/personalfinance/wiki/flair)).
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- [Dealing with collections](http://www.reddit.com/r/personalfinance/wiki/collections)
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Human: I am blessed enough to not have to personally pay for my education, but I want to become financially responsible and maybe even ahead of the game during college.
| Pack your lunch as often as you can. Make sure you pack at least a snack. You will want to save your money for beer instead. Ride your bike or walk to school if posssible. Go to the library to study if you have a break in between classes. This will help you stay on track. | Piratebay is your new best friend |
Human: I left earlier this month in April, and they upfront us with 80 for the year. I did take all of it, but AFAIK I had no idea they were allowed to "take it back" so to speak.
Just making sure this is legal.
| Yes it's legal. | When I long into my HR portal at work to view my paycheck, it tells me "Vacation available: 120" and "Vacation earned: way less than that."
It's a safeguard against everyone taking vacation in January and quitting in February. |
Human: I'm going to be moving to Southern California for a new job that will pay me $80,000 yearly before taxes. I don't even know how to begin calculating what my income after taxes will be, how much rent can I afford, how much it would cost to own/lease/finance a car + gas, etc etc. I have a million questions, which I'll outline below, but I would really appreciate any help on how to figure out what my life is gonna look like financially.
Some things that are important to me: living alone with no roommates, saving a few hundred a month, and going out with friends a few times a week.
* how much rent can I afford exactly?
* how much would it cost to own a car and keep it gassed and drive everywhere? how much is insurance?
* what are utilities like in california?
* would it be possible to live a normal adult life, go out a few times a week, and still save around $400-500 a month?
* what else should I account for?
Thank you! I've never lived alone, and I live with my parents currently in NYC and pay very cheap rent, so I have no idea what it would be like to live alone and how much it would cost.
| I make $80k and live in LA. You'll be taking home something like $5300 after taxes. The thing about LA is basically you can either live close to work and usually pay a higher rent or live further and have a commute. You need a car, gas will cost you a few hundred a month depending on your drive. Rent varies a lot based on location. You want to be close to the westside? You'll pay about 2k/mo on rent, probably around $250 for internet and utilities. Further out you can manage as low as $1k. Depends again where you want to live and where you work...
Keeping your commute less than 45 min is ideal. I'd start there. That should tell you what your options are. Craigslist is your friend. Map your drive during traffic hours on Google and you can go from there. Good luck. | Utilities, specifically your electric bill will be hundreds of dollars more expensive in the summer. |
Human: I was in a car crash a few days ago. While it has not been declared totaled just yet, I am fairly certain it will be since air bags deployed and the frame is fucked. As such I'm trying to at least get a game plan going if it is declared total.
So quick run down of my finances:
Savings: $2,500
Loan payment left: $6,800
Yearly income: $38,000
Car value: Approx $8000
Monthly Payment I can afford: $1200-$1400 (I've been dropping $1000 into my current loan to pay it down faster*).
My car started at 37000 miles and is now at about 68000 in a little over three years. I do a fair bit of driving, and live about 20 miles from work. I will be going from California to Colorado anywhere from October - February. Boyfriend lives about 5 miles from work so I can use him to buy some time. However I can not live with him due to military dorm restrictions.
*My military enlistment is up in January, and I am not 100% on reenlisting, so there may be a grey area between end of contract and new job. I was funneling as much money as I could into current loan to pay it off prior to the end of my contract so I wouldn't have to worry about it. However, the need for an additional vehicle complicates this.
So the questions I have are:
Would it be better to use the insurance payment to pay off the loan? Can I do that legally? Or do I have to drop it down on a "new" car?
What pricing should I look for in a new car?
Would finding a cheap lease and saving some cash be more effective?
Any additional suggestions would be appreciated as well! Thank you all in advanced.
| Take insurance payment and pay off existing loan. Use excess amount for down payment on new car with a new loan.
This is very common and be thankful you're not upside down on current loan. | Use this opportunity to stay out of a car loan. Buy a 2k beater and save up if you want something better. |
Human: Because of some family issues, my husband and I are wanting to change our last name to my (the wife's) surname. To do this, we will have to appeal to the county court. My question is: how will this name change affect how I do our taxes in the future? Once we submit to the Social Security office, there shouldn't be any issues, right? Any suggestions or recommendations? We haven't started the process yet but we want to make sure we have all of our bases covered before we advance.
| Your situation isn't really any different from the millions of women who change their last names to match new husbands each year, and it doesn't seem to cause any of them too much trouble. You should be fine. | I added topic flair to your post, but you may update the topic if needed ([click here for help](/r/personalfinance/wiki/flair)).
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- [Tax Software Megathread](http://redd.it/41dew6)
- [Taxes wiki page](https://www.reddit.com/r/personalfinance/wiki/taxes)
- [Understanding tax brackets](https://www.reddit.com/r/personalfinance/wiki/taxes#wiki_eli5.3A_taxable_income.2C_tax_brackets.2C_marginal_tax_rates)
- [W-4 IRS Withholding Calculator](http://www.irs.gov/Individuals/IRS-Withholding-Calculator)
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Human: I was a lazy smart slacker for a lot of my life - still am in some ways. 6 years to finish undergrad, still in grad school. My parents supported me while school, and so I have basically worked very little and could always fall back on them. I've had a TA contract in grad school ($16k/year + health insurance since 2009) so that was the beginning of some moves toward independence, but I took money from them ($1800/month). In 2014 I got sober at age 29. As part of my amends to my parents and to move my life forward, I resolved to be financially independent by 1 year sober. I succeeded. I even got an well paying internship that will pay $18k, starting this summer. Recently my parents told me they were planning on gifting money to me and my siblings. I recently got they check and it was for $25k. I don't feel good accepting the money. My parents, though well intentioned, have over supported their kids to the point of slowing their maturity. I know this is an ultra privileged position to be in, but I want to at 31 start being an independent adult and not take handouts. What should I do and/or say?
TL/DR : Parents financially l supported an overgrown man baby. Finally grew a set, then they start giving gift money. What to do/say?
| Keep it, use it for emegencies. Later down the road be nice and give a big gift to your parents | You could always accept the money, then donate it yourself to someone who could use it. |
Human: My wife graduated nursing school with nearly $75,000 in debt (private school). She currently works at For-Profit hospital. We pay $600 a month, with the private loans having been consolidated. I'm getting ready to graduate with my nursing degree, but with considerably less student loans (30k), due to the Post 9/11 GI Bill.
My Question: Is there anything we can do to lower our payment? We have even considered filing for bankruptcy, because we will be paying $1,000 a month, making it difficult to afford health insurance. We're also concerned that retirement is going to be a fallacy for us.
| Can you detail out the loans you have with whether they are federal or private, the interest rate, and the amount owed on each?
Bankruptcy won't help as student loans are very, very difficult to discharge in bankruptcy. | You should have gotten like 400 different mandatory briefings/classes/orientations telling you how to deal with this while you were at school.
Contact your lender, tell them you want to be put on the income based repayment plan. They'll direct you to or send you a form to fill out and send back along with proof of income (a W2 will do it), and adjust your payments accordingly. Then throw whatever you can extra specifically at the loans with the highest interest rates. They should let you do that. |
Human: I bought some stock (not a lot) from Sun Edison (SUNE -> SUNEQ) before they crashed. Now it shows their stock is not able to trade at this time since they declared chapter 11 bankruptcy. Is my stock gone now or what happens next?
| You still own stock. It isn't worth very much though. What happens next depends on the bankruptcy court. The company may be able to refinance and reorganize and rebuild or it may be forced to liquidate to secured debt holders.
It doesn't look particularly great but you'll just have to wait and see. | I added topic flair to your post, but you may update the topic if needed ([click here for help](/r/personalfinance/wiki/flair)).
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Human: what is the worst that can happen and how can I fix this? Should i call my bank and have them give me a new account number, or are people unable to withdraw from my account with only that information?
| routing numbers are public information. go change your account number, but it's not a huge deal. still change it though. | There's a good chance nothing will come of it, but to be safe, you should close the existing account and open a new one. You generally can't simply change the number of an account.
You'll have to get a new debit card and checks too naturally.
When my checkbook was stolen I went through this, and my bank screwed up and sent me a new debit card for the *old* account that I was closing. In fact, they made that mistake twice.
Be sure to explain very clearly what you want them to do.
|
Human: Hi guys I've lurked here for awhile and now I finally have something to post about. I'm currently making $1200 a Month. I recently received a job offer at 2500-3600 a month. This is a pretty big deal for me and I was wondering what the best way to handle all that money would be?
Assistant: What field are you in? As a fellow 18 year old who makes half that id like to know what jobs I should be doing
Human: Full time sales rep for cellphone store that is sponsored by Sprint. $1600 in hourly with $900-$1800 being the average monthly commission bonus
| Don't count on that commission at all for at *least* 6 months minimum. And not at all for any committed monthly expenses like rent or food. I've been in comission sales for over a decade and every industry and even individual stores have high and low months and you must be able to float yourself thru the bad months. You won't know what those are until you've been there awhile.
Pretend you don't have the extra funds at all until you have a 6 month emergency fund set aside for your expenses.
I'd also recommend setting up an account for your check to be deposited and then transfer your budgeted monthly expenses into a separate checking account. That way your high months don't just get left in checking and accidentally spent. | Commission is commission. I don't want to sound negative, but the recruitment agent will have sold you the commission well.
I aim to save 25% of my net salary every month. That should be realistic to do. If you do it from the very first pay day, you shouldn't notice a difference 😊 |
Human: So I recently got accepted to a private college after some hard work and dedication and the school is 60,000 a year I got almost full tuition for free except for 5000 I included he federal pull grant and the feog grant are there any other ways I can get 5000$ scholarship. Please guys help a fellow redditor out! Thanks in advance.
| Part time job. | It's very easy to get scholarships of you know what you're doing. Here's a quick guide:
1.) You need to work on your grammar. There's no way in hell you'll get any grant money if you write incoherent babble like that to a scholarship committee.
2.) Go meet with your high school's college counselor. He or she will probably be worthless, but it's worth a shot. He or she may know of local scholarship opportunities that would work well for you.
3.) Don't bother applying for national scholarships. Too much effort for 0 expected return. Focus on local and state scholarships.
4.) See if your high school has an alumni scholarship fund. Also look into any "community foundations" that are in your area. They often administer grant programs.
5.) You need to do this right now. Most scholarship deadlines are in late April or early May. Now is the time.
|
Human: My mom took a loan out a while back(6-8 months ago) and I have been paying it for her since. She called the loan company to see where her balance was and apparently it was still at the initial amount. They told her that all her payments are going towards the interest and the only way to pay of the initial loan is to pay it in full in a one time payment. I feel like we are being hustled and want to know if we can do something about it.
If we can't then lesson learned. The company is called loan me I believe.
Update:
She signed a contract for a personal loan at 135% interest. I am now looking into a bank loan to pay the amount in full and get away from this company.
| A close family member of mine had a very similar situation with a car title loan company.
Long story short, she ended up going down there and asking, politely to speak with the manager and calmly, and collectively (avoid any unnecessary drama, cooler heads prevail) told them that they can either settle for a lesser amount right then or they could send her to collections and never collect another cent.
She had already paid over 80% the original balance in interest alone and in the end walked away settling for $3k that day on a remaining balance of ~$8k.
You may have luck trying to negotiate the balance down, they're in no obligation to comply, but worse case scenario they either call your bluff or you walk the hard line and they get nothing. Best case, you get out of a mess and save some money in the process. | What does the contract that your mother signed say?
What type of loan was it? |
Human: Just got a letter from Santander stating that starting July 1st, all existing Extra20 checkings and savings accounts will be converted to their standard checking and savings. Bummer. Guess it was nice while it lasted.
| Sad. I made ~500 dollars from them so it wasn't a waste however I will miss the income stream. | Awwww damnit. Looks like I'll have to close it. |
Human: I worked at an instant oil change place because i needed to save money because i was moving out. Well, anyway long story short; alcoholics, ex-prisoners, and other violent people working there led to me quitting as soon as soon as I had enough money and moved out.
I went in 2 weeks later and took my "last" paycheck from the store and left.
Come to find months later, thinking back on it, they still owe me hundreds of dollars so i called them to ask if I was correct and they said yeah... but since many months had passed they sent the check to their main office.
I asked to get it back and the franchise manager said he'd contact someone.
I called a week later and he said their "servers are down" and they cant contact the area manager.
I called again two days later and he said "look man. the check is void and i don't feel like dealing with this anymore"
I sent an email (I had to find on google) to my old area manager inquiring about the situation and he's ignored my emails.
That kind of behavior from employers is totally illegal right?
There should be a way to get my missing wages or at least report them to someone? I don't know if it helps but they also violated a labor law: I was 17 the entire time i worked there (30hrs week) sometimes 12 hr days... no work permit ever asked for or obtained... until 3 days before a quit, so they're or maybe I am in violation of that if I could use that to get my paycheck back?
| >That kind of behavior from employers is totally illegal right?
Yes. If you're in the U.S., contact your local Department of Labor office. Let them know all about this. Full time work for a minor during school days, working without a work permit, and withholding pay for work completed; these are all potential issues the DoL would love to hear about. They're probably breaking more than one law here.
If the company isn't working with you to make this right, take it over their heads. They're very likely screwing with you because they're in the wrong, and they figure a 17-year-old will roll over and take it quietly. **Know your legal rights!** No one but you will fight for them.
One last thing you can do before going to the DoL is to contact the company's Human Resources department, as well as the Corporate office/Regional Manager, instead of the Franchise Manager. There's a good chance this franchise is breaking some rules and corporate isn't aware of it. The franchise may (deservedly) lose their franchise license. Corporate HR might resolve this issue for you cleanly and quickly to avoid getting dragged into a legal headache with the government. Just be clear that if they can't promptly resolve the issue and have a check mailed out by the end of the week, you're going to have to go through the DoL. It shouldn't take them longer than a week to have this sorted out. | File a wage claim with your state labor board. |
Human: Frequent reader, first time posting...
So I have a fantastic job opportunity that I am in the final stages of wrapping up. The work is overseas and I am being asked to provide a document showing that I owe no back taxes (which I don't).
I have NO IDEA of what to give them. My tax returns wasn't what they were looking for. Any document out there I'm not aware, or any suggestions would be greatly appreciated!
| Order federal [Tax Account Transcripts](https://www.irs.gov/Individuals/Get-Transcript) free of charge at IRS.gov. The delivery timeframe is 5 - 10 days by mail.
The Account transcript shows the return in question is filed and processed, and would indicate no outstanding unpaid liabilities. You should be able to order a transcript for any tax year or years your prospective employer requires. | I added topic flair to your post, but you may update the topic if needed ([click here for help](/r/personalfinance/wiki/flair)).
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- [Understanding tax brackets](https://www.reddit.com/r/personalfinance/wiki/taxes#wiki_eli5.3A_taxable_income.2C_tax_brackets.2C_marginal_tax_rates)
- [W-4 IRS Withholding Calculator](http://www.irs.gov/Individuals/IRS-Withholding-Calculator)
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Human: My wife is over 5k in debt with one credit card, because she went overboard in her early twenties. She has been paying it down regularly for the past couple years, but it's not making a significant difference. We're having a child at the end of this year and received some cash from a few relatives to the tune of a little over 2.5k... We tried to negotiate a pay off the whole loan with one lump sum of 3k, but they said NO, and the only way to negotiate was to let the bill go to collections... We're trying to build up our credit score up, and scared that it will hurt us to go to collections. Any suggestions on how to proceed?
| Have you looked into opening a new card and doing a balance transfer? You might be able to get a 0% for a year or so. This will only temporary ding her credit and save you money.
Don't fill up the now empty credit card again! | Try calling the credit card bank and escalate as necessary. Ask them to lower your rate or tell them you will have to go in default. If you escalate it enough times, you will be asked to write some sort of hardship letter etc.
|
Human: I got mail from keybank today "Get $200 when you open a qualifying checking account and make one direct deposit of $500 or more within the first 60 days"
I'm $500 from being done paying of my credit cards. Thought this might be a creative way to finish it off?
| Usually those offers have stipulations that you need to keep the account for a certain amount of time or you have to return the bonus.
If there is no such stipulation, then nothing keeps you from doing it. | Nothing as long as you don't go too hard. See http://www.doctorofcredit.com/a-beginners-guide-to-bank-account-bonuses/ for a lot more info on these promos. |
Human: I purchased a home less than two years ago. It has a septic system and the drain field needs to be replaced. It started to fail recently. The county won't permit any repair work, so it seems my only legitimate option is to connect to sewer. Total cost with fees and construction is looking close to $30k. I could come up with maybe $10k, but it would be a very hard hit. I'm not sure how to handle this financial burden.
My options right now seem to be:
* The county offers a low interest loan program through a local credit union. I'm not sure of the rates.
* I could refinance and cash out $20k to $30k. Original loan was $254,800 @ 4.125%, 30 yr fixed started in 08/2014. I also have a HELOC with $10k available. I have about $36k locked in last year at a fixed rate that we used to do some renovations early on.
Is there another option I have yet to consider? Perhaps a state (WA) or federal program I've overlooked?
I never considered refinancing until reading posts here. Is that common in this situation?
| look into the county loan program, you may be surprised at the rates.
as far as rather or not to refi, i wouldn't. if you can re-fi and get cash out, you're either going to be taking yourself below the 20% mark and putting PMI back into the equation, or you're still going to have more than 20% equity stake in the house and won't have to do it. if the second scenario is true, it'd be easier and cheaper to just take a home equity loan (not heloc, but a loan, slightly lower rate) and do the work. BUT, since you've only got a 10k line available on the heloc, it makes me question rather or not you'd be able to refi without dealing with PMI again.
401k loan, personal loan, cash from friends/family, or the county loan. county loan will more than likely be your best bet. | Look into taking a 401k loan. It's the best type of loan possible (assuming you have a 401 and are eligible), because you pay everything back to yourself. |
Human: I am 19 years old and I am just about to finish my second semester at a public university. My mother found out I was smoking weed and is now not going to pay for anymore of school. Up until this point my parents and I had come to the understanding that they would cover all the costs of getting a degree. Now I don't know what I should do, I think going to community college for a few semesters would be a good idea but I don't know where to start. Any suggestions whether financial or otherwise would be greatly appreciated.
| Quitting weed and apologizing should be your first course of action. | ROTC? |
Human: I have a very controlling family, especially my grandmother. She has ruined quite a few people financially. I've posted a few things about her in /r/raisedbynarcissists i. For my 16th birthday she wants to get me a joint savings account with her, I stated that I didn't want one but now she's being really pushy. I haven't told my parents because right now I'm the only one she's talking to in the family. Could this ruin my credit? What are the dangers?
| If she's already screwed people over in your family financially, don't financially tie yourself to her. If you need a joint account, do it with someone you trust. If you trust your parents, open it with them. | A savings account won't affect your credit (unless this is a weird bank that lets you have overdraft on a savings account; say no to that). But don't put any money of your own in there because she can withdraw it. |
Human: This is my first Reddit post, so bear with me:
I will be receiving at least $25,000 next month from a family member, and I'm looking for advice on where to allocate the money. I am currently $95,000 in debt:
* 2 Credit Cards: $5,000, 0% interest on both until January 2017, $50/month
* Medical bill: $2,000, 0% interest, $25/month
* Personal Loan: $6,500, 11.49% interest, $250/month
* Student Loan A: $12,500, 6.5% interest, $110/month (deferred until January 2017, amount rises every two years for 10 years)
* Student Loan B: $13,000, 6.5% interest, $120/month (deferred until January 2017, amount rises every two years for 10 years)
* Car Note: $20,000, 3.69% interest, $520/month
* Student Loan C: $36,000, 3.75% interest, $170/month (deferred until January 2017, amount rises every two years for 25 years)
Currently, my budget is the following (I make $4,650/month after taxes):
* Rent: $1,450
* Car Note: $520
* Cable/Internet: $125
* Phone: $95
* Gas: $150
* Electricity: $100
* Food: $900
* Student Loans (starting in January): $400
* Personal Loan: $250
* Others (Netflix, gym, eating out, toiletries, etc): $500
As you can see, my budget is pretty tight now (I've done all i can to cut it down, especially food, but I can't get it any lower). I am taking care of my gf at the moment also (she isn't working but looking for a job), and I also have a cat to feed. I'm looking to use the $25,000 to free up some money month to month, but I can't think of the best method to do that. So far my options were:
* Pay off the credit cards, medical bill and the personal loan to free up $300/month, then only have the car note/student loans remaining. Save the remaining money since I don't have any savings and that would cover 3 months savings
* Pay off the credit cards, medical bill, the personal loan AND most of a student loan to free up $400/month, then only have the car note/remaining student loans remaining. No money left for savings
* Pay off the car note and free up $520/month. Save the remaining money
* Pay off two student loans and free up $200+/month down the line. No money remaining
The avalanche/snowball method says to go with step one (or i think, not sure how the 0% APR til January figures in), but Ramsey would likely go with step two (after saving $1,000). What would y'all suggest I do?
Assistant: You can't get your food any lower than $900?! How many people are you feeding?
Human: Just me, my gf and a cat. Plus I'm bulking (r/fitness represent), so I have to eat easily 3,500 calories a day to gain a pound a week. It should get to sub $600 once I start cutting in a few months
Assistant: What are you eating to bulk? Caviar? Gold bullion? Take a look into /r/EatCheapAndHealthy because 900 dollarydoos a month on food for 2 people and a cat is ridiculous.
Human: Cool, will do! And what's a normal range to spend on food a month? First job out of college, so I'm not gonna say I know what I'm doing
Assistant: Plan your meals! I feed my girlfriend and myself on less than $300 a month. Even if you're bulking, I bet you can shave off at least half of the $900 a month you're spending now.
Budgetbytes is a great resource. Plus tons of subreddits.
Human: $300/month!!! Wow, if i can get it down to that, all my problems would be solved... Every 4-6 days I buy stuff like a family bag of tilapia & chicken, beef, pasta, fruits, veggies, two gallons of milk, snacks, etc, and with that and random stuff like kitty litter/food, toiletries and all that, I'd be lucky to spend less than $100 a trip. Not including eating at work
| > snacks
trust me mate this is where you're going wrong. I have to hit 4000cals on less than 50 bucks a week, and it's definitely do-able. Just simple shit like peanut butter sandwiches and pasta fill like half of your TDEE, and then worry about dinner with the missus. Otherwise you end up trying to hit 1000 cals with muesli bars.
Also stop buying a coffee or something at work, add up how much you spend a year on it and think about that figure every time you go to buy something there. | Try buying things in bulk, it's a little more expensive upfront, but the unit price is cheaper. You shouldn't need kitty litter every week. Even cat food, you can buy in bulk. |
Human: Hi all,
I just started at a new company and I was hoping I could get some help understanding my exemptions and allowances on my paycheck. When I first started working I began in the middle of a 2 week pay cycle so my first paycheck was only for 1 week, 40 hours and the allowances for that paycheck was Federal:0 allowances and CA:1 allowance. I just looked at my most recent paycheck stub which was for 2 weeks, 80 hours Federal:1 allowance and CA:1 allowance and I noticed my deductions are quite different than my first paycheck. I thought that having more allowances means having less tax taken from each paycheck except I had more money taken out of my second paycheck than my first.
So for example lets say my first paycheck for 1 week of work netpay is $1000 with Federal:0 and CA:1 and my second paycheck for 2 weeks of work netpay is $1800 with Federal:1 and CA:1. It was my understanding that in my second paycheck my netpay should be a little more than $2000 because I have more allowances now and because 0 allowances means the max amount of tax is withheld so 1 allowance means I should have less tax taken out.
However, everything listed under "deductions" is exactly double the amount in my second paycheck except for "Federal Income Tax" which was more than double the deductions and "CA State Income Tax" which was more than 3 times more.
My question is, how come my second paycheck had more deductions taken out compared to my first paycheck even though I had more allowances in my second one?
Thanks
| I'll take a guess. You may have a payroll that uses biweekly paychecks and withholds presuming you get 26 paychecks a year. The first paycheck was for half as much as you will typically earn, so the withholding that happens got tricked into thinking your salary is half what it really will be for the year. So a lot less was taken out as withholding. So much so that it even trumped the "0" allowance being used instead of "1." | I added topic flair to your post, but you may update the topic if needed ([click here for help](/r/personalfinance/wiki/flair)).
You may find these links helpful:
- [Tax Software Megathread](http://redd.it/41dew6)
- [Taxes wiki page](https://www.reddit.com/r/personalfinance/wiki/taxes)
- [Understanding tax brackets](https://www.reddit.com/r/personalfinance/wiki/taxes#wiki_eli5.3A_taxable_income.2C_tax_brackets.2C_marginal_tax_rates)
- [W-4 IRS Withholding Calculator](http://www.irs.gov/Individuals/IRS-Withholding-Calculator)
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Human: Question for those wiser than I. We are house hunting and we keep coming back to the question of, do we buy something that works for us now, but we may grow out of in 3-5 years or do we buy more house than we need and plan to grow into it?
The concern with buying too little house is that having say two kids may cause us to grow out of it quickly. On the other hand, we could buy more house, but we are paying more now than we really need.
We could of course buy and plan to move in 5 years and go with an ARM. However, i worry about the potential of losing money due to closing costs of buying/selling twice.
Any wise words?
| I personally received the advice of buy the biggest house you can afford and grow into it. As a single guy I bought a 4 bedroom house and now have 2 kids and a parent in the 4 bedrooms with plans to make a basement apartment to rent out. Has worked out well so far. | I went through the same dilemma a year ago. Should I buy a 2/2 condo in the city or search for a house. I ended up with the condo and a 7 year ARM. I plans are to move in the next 4 years. BUT I also took into consideration that I'm in a prime market and real estate prices are just going up. It's appreciated 10% in the year and no sign of slowing down.
So I guess it boils down to a couple of questions.
1. Do you plan on living in the same area for only 5 years or do you plan to live there 10+ years.
2. What's the market like? What's the trend? Are prices going up?
Either way, I recommend you look to close before quarter 4 of this year or after quarter 1 of next year. Some interesting stuff is going to happen with the banks late this year. |
Human: I'm 21 and I live in California with my fiance. I make roughly between $700-$1,000 every 2 weeks due to random overtime, and she makes between 300-500 every 2 weeks due to part-time.
We have lived in our apartment for 10 months and when we moved in Amanda signed up for pg&e in her name and we went on the balance payment plan they recommended. This month Amanda signed up for the Care Program for 30% off because our monthly bill is always 200 (which is outrageous because we really don't use much) and it's just too much. Well when we were approved they gave us this bill and said it was the total amount we owe from the past 10 months that they haven't charged us for because of the program were on. The only thing they were willing to do was break it out into a 4 month payment plan. Ouch. So that puts us around $500 in power bill monthly.
I don't understand how this is possible. Back in December Amanda accidentally paid twice and they gave us the $230 in credit on our account for the following months. Why would this not be used for the amount we owed?
Never once was this amount mentioned to us. Not when we have called, nor in all of the monthly bills they sent us.
Fortunately my mom is willing to loan us the amount and we pay her back, but I want to know if this is something that I'm totally at fault for or if I can fight this?
Thanks guys..my anxiety is through the roof right now and I am worried about this a lot.
Edit: took away fake name
Edit: called CPUC and they connected me with a higher rep from PG&E. She called me back today and explained that they had not been charging us for the full amount we use because of the b.s. plan we were on. So since we changed plans we now owe 1.1k. The rep split it into a 12 month payment plan and gave me numbers to call for financial support to pay part of our bill for us. I'm hoping to God they help... So this all did not go in our favor. Still thinking of filing a complaint with the CPUC and see if they can get it lowered as well...
Assistant: have you checked your not paying some one elses electric like the landlords,pg&e charges from 18 cents to 35 cents kw,get cfl lamps
get plug strips to turn off power when your not using it,if you have and old meter get them to check it,unplug everything in the house turn off the lights even disconnect the bell transformer to see if someones stealing your power http://lifehacker.com/check-your-power-meter-with-everything-off-to-identify-1653212699
Human: So just shut everything in this apartment off at the breaker box and then watch the meter? Not sure which meter is ours. If this be the case how do I prove we are victims of this
| Your PG&E statement should have the meter number on it.
If you turn of the main breaker for your apartment, your meter should stop moving. If it's a different meter that stops moving, then you found your problem right there. | It's possible that PG&E also isn't sure which meter is yours. Sometimes they wire them up to the wrong apartment, and you end up paying your neighbor's bills. The "shut everything off" method will help you detect this. |
Human: I have Traveler's Insurance. The only reason I have them is because they offered a deal to TDECU customers. I have full coverage. I was driving, heard a noise, and when I pulled over and opened the hood I saw fire. The fire department came out. I have a 2009 Mazdaspeed 3 and had bottomed out twice on the city's horrible potholes.
Insurance appraiser came out and said it looked like mechanical failure and that they wouldn't cover. Dropped this line on me. "If Traveler's paid for things like these, we'd be broke." He did not specify as to what specifically broke. They took an oil sample which should be fine because I had a shop change the oil 2 week prior (Royal Purple, the best oil IMO and $11 a quart).
I had a rental for the weekend, but as soon as the appraiser said they weren't covering, the insurance office called and I had to turn in my rental.
It has now been 2 weeks since they took the oil sample and they haven't given me any results.
I called TDECU and they refuse to help even though I've threatened to forfeit the car.
Through me thinking I was invincible and then getting diagnosed with Ulcerative Colitis, I now have about $30,000 of debt outside of the car. My number one goal is to pay this off as quickly as possible. I recently started working at Ford and they worked with me to get numbers crunched.
$1,000 trade value for my totaled Mazdaspeed 3 with 100k miles.
1.9% financing
$500 car payment because of the upside down amount.
What would yall do?
edit: Should I not pay the car and surrender it? In essence use that remaining balance to pay off other stuff?
UPDATE: My credit union finally started helping. They have started calling Travelers and asking they answer specific questions. I hope to get them to:
1. Foot the mechanic's bill to diagnose what happened.
2. Reimburse me for cutting my rental off after 3 days even though the case is still open and they are still working to decide whether or not they will cover the repairs. If they accept that I should have had a rental like the insurance agency I bought the policy through says I should, then I am going to also ask for the four Sundays' lost wages I couldn't get because I had no ride for the 30 mile commute.
3. I filed the complaint for lack of updates and communication. I only know what I know because I call them.
I'd like to thank for everyone their advice and help. I have clicked on every link and filled out the forms people recommended. I will let all of you know what comes of it.
Assistant: Regardless of if you had comprehensive or not, car insurance will not pay for a mechanical failure. It would only pay if someone physically arsoned your car or it went down in a house fire.
Did you get a quote on a repair? What actually failed? I'd figure that out before calling it quits.
Do you have any savings? Buy a beater car to get you around and start scraping up whatever income you can to pay your debts. It's an unfortunate hazard of owning a car, but you need to be prepared if it is over 100k miles.
Human: The car got serviced two weeks before this happened. There were no leaks. Oil change got done. Nashville has shitty roads and I have a low car. The only thing that were abnormal that I can remember was having bottomed out on the freeway when I hit a pothole.
| Getting the car serviced two weeks prior doesn't mean much. Oil change rules out no spontaneous failures except an engine seize, which didn't happen based on your anecdote. Determine the cause and quote a repair before searching for recourse. | Hello fellow Nashvillian! |
Human: I just moved to a new (expensive) city for a new job, and of course my laptop chose this moment to die on me. While I technically have the cash on-hand to buy a laptop outright, a decent performing one I'd need for work would dip into my moving savings more than I would like.
Does something like [Best Buy's card](http://www.bestbuy.com/site/financing-rewards/financing-options/pcmcat225000050029.c?id=pcmcat225000050029) really make sense if I plan to pay it off within a month or two? It seems almost too good to be true for my situation.
| The trick is that in the event you don't pay it all off within the interest-free period, they'll stick you with a really ugly APR backdated to the day of the original purchase. | I added topic flair to your post, but you may update the topic if needed ([click here for help](/r/personalfinance/wiki/flair)).
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- [Credit-related wiki pages](http://www.reddit.com/r/personalfinance/wiki/faq#wiki_credit)
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- [FICO / Credit Scores](http://www.reddit.com/r/personalfinance/wiki/fico)
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Human: If this is the wrong sub, I apologize in advance.
This year was the first time I filed taxes and to my surprise, when I checked how much I received from my federal return, I saw a whopping 7 dollars and some cent. I originally thought it was some error with TurboTax or the company that distributed my money, but both places assured me it was nothing that happened on their end.
Today I got a letter in the mail telling me that my refund had been offset and paid to DFAS (Defense Finance & Accounting Service). Now here's the part where some of you may think I'm stupid. Despite being 21, I've never bothered to check my credit report because a) I don't have any credit cards, and b) I've only been working for less than a year.
So immediately, I got a copy of my credit report that shows that there's an account that was opened in May of 2012 and closed in July 2012. I was still in high school at that point, yet the account type is "Government Overpayment". If what I've seen is correct, DFAS is mainly military related and I have no ties to the military besides signing up for the selective service to vote. The letter says that I've been notified via mail about the debt but it's completely possible that my family threw it away/lost it since I haven't lived at home since August 2012. My mom usually gives me a stack of mail when I go home so I don't believe she would voluntarily throw that away, unless they have a false address. I can't call DFAS until Monday morning, but I'm just wondering if anyone here might have a clue what's going on.
| Contacting the DFAS is also a good idea. In addition, the IRS has a taxpayer helpline. 800-829-1040
| I added topic flair to your post, but you may update the topic if needed ([click here for help](/r/personalfinance/wiki/flair)).
You may find these links helpful:
- [Tax Software Megathread](http://redd.it/41dew6)
- [Taxes wiki page](https://www.reddit.com/r/personalfinance/wiki/taxes)
- [Understanding tax brackets](https://www.reddit.com/r/personalfinance/wiki/taxes#wiki_eli5.3A_taxable_income.2C_tax_brackets.2C_marginal_tax_rates)
- [W-4 IRS Withholding Calculator](http://www.irs.gov/Individuals/IRS-Withholding-Calculator)
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Human: Hello PF! Will you please rate my finances? I'm also hoping for advice on how I can do things better!
28 year old single here in Houston
Job:
Graduate student with $2100 income a month before taxes. Roughly $1850 after taxes.
Accounts:
* $22k in my bank accounts (Emergency funds)
* $18k in my IRA
* $1.5k in my brokerage account
Debt: No debts at the moment
Monthly general expenses:
* $330/mth note on a 2014 Honda ($13k left to payoff).
* $650 a month. This includes all utilities and services.
* $200/mth for food. I cook all my meals.
* $65/mth for health insurance insurance.
* $40/mth parking
* Phone bill paid for by parents
* $50/mth in gas
Tell me what can I do to better my finances PF! Thanks so much! I love this subreddit :D
| "Debt: No debts at the moment
Monthly general expenses: * $330/mth note on a 2014 Honda ($13k left to payoff)."
Sorry to tell you but a car note is debt. You have 13k in debt. | My question is: Where are you that your health insurance is $40/month??
I'm in Alabama, so the grad stipend here falls into "the gap," and I can't find anything under $120/month with O-care. I have to use the crappy school sanctioned health insurance (more of a: please please please don't get sick policy). |
Human: Our property taxes went up and we ended up with an escrow shortage of just over $700. My husband wants to pay it out of our emergency fund. I want to spread it out over the next twelve months since they aren't charging us any interest.
Our emergency fund is ten grand right now and we could get it back up to that amount in a couple months but it's rubbing me the wrong way to turn down an interest free loan.
What's the smartest thing to do here?
| It makes such little difference either way, this is probably the least important decision you'll ever have to make. | Given your property taxes went up, presumably the increase is going to be permanent. I see no reason to make a lump sum payment, especially assuming you have it set up to auto-pay so it's zero effort on your part. |
Human: Hoping someone has a good way to deal with this issue.
Basically Verizon fucked up and took my bill money out of my checking account twice. Long story short, they were supposed to give me a credit of that amount but didn't, then CHARGED me that amount extra on this month's bill. After literally 15 different phone calls (close to 6 hours time on phone) the issue is still not resolved. I owe them $400 for one bill - it's currently showing $800 (at one point it said $1200 ugh). Basically I can't get this resolved and I'm losing my mind. Everyone says they will fix it and then they don't. Mostly they say "fixed it give it 24 to show on your account" and then it doesn't. Any ideas?
| I'd be interested in having more detail about why the bill is doubled (or tripled). What are these charges and why do you not owe them? It's hard to say how to argue your case without really knowing what is going on. | I had a problem with Verizon went to retail store then called the Verizon corporate headquarters. The woman was very nice and thought the amount I was paying was ridiculous. She suggested another company to me and it is more reasonable and problem solved.No more Verizon. |
Human: First, a little about my situation. I am almost 21, been in school since 18 for a IT Technical support Associates degree. I switched my degree halfway through, so that's why I have been in so long.
I have around $15k in college dept, and no other debts. I work full time thirdshift making $11.25 an hour.
I am so overwhelmed by the school debt, working 40 hours a week barely making ends meet, going to school full time, and lack of direction in my financial life. I hate what I am studying, and struggling to even pass half my classes. If I buckled down and studied until my brain rotted, I'd be done with this degree in two more semesters about.
Am I going crazy about nothing? I feel like I am crashing and burning. I have no clue what I want as a career, and I hate blindly throwing money at a degree I don't even want. The only reason I chose this degree was because my parents said go to school, or move out. Being 18 and broke made going to school seem right, now I am second guessing my decision.
My parents are of little to no help. They tell me to stick it out with school and I'll be fine. They refuse to understand that I don't want to be in IT, I only had to make a last minute decision to not get kicked out. Since I was born they fed me the idea that I'll be poor and living in a van down by the river if I didn't have a college degree. Guess what? Most my friends are making 50k a year being 21-24 without ever going to school.
I just want someone to help me plan my future, at least give me some advice on where to start right now. Baby steps, right?
Assistant: OP, as someone who works in IT (and I personally love it), if you dislike IT, don't fucking get into it. Our field is flooded right now with people who got into IT because they heard "that's where the money is" and decided it was for them. If you don't honestly enjoy a thankless, and normally (what your average person considers and irrelevant job), to spend countless hours doing nothing, and then spend a couple hours feeling like the entire fucking world is going to war and you're the sole person to fix it, IT is not for you. And we don't want you. It's no offense to you, I'm sure you're a great person, who will find their calling, but I'm tired of seeing people, young and old, with no aptitude, and no love for IT work, wasting their time, the customers time, the employers time, and their coworkers time. Also, until you really GET into IT, aka into a specialty, there isn't money there, excluding some choice jobs that people never give up. I'm 25, I'm a Microsoft SCCM Admin, and I just started making over 60/yr, and between where I am now after 4 years having moved up quickly and the top? Excluding management, there isn't a huge increase coming my way. Sure, I'll eventually make 6 figures, but it won't happen fast, and it won't happen without continually pushing for more certs, new jobs, and continuous study.
Human: This is exactly what I want to avoid. I don't want to be that guy.
| Should also point out that studying IT in college is very unlike working in IT in the field. I design and engineer systems and write programs and procedures to build, use, and support those solutions. I'm a specialist in my field and was recently hired to work with a team of people like me with less knowledge and upgrade some large systems.
But.
In college I studied the theory of IT with professors who had field experience 2 decades too old to be relevant and who thought they were the pinnacle of industry knowledge. I absolutely hated it. I got Ds & Fs and graduated with a 2.1 after taking an extra year. If my jobs were anything like college whatsoever there's zero chance I'd be in this field. | You also don't want to be the guy who was 2 semesters away from the degree and fucked it up. The degree doesn't mean you necessarily have to have any specific job. |
Human: Sorry, not a mortgage loan, a regular loan meant to buy property. He wants to buy a house to get rid of the rent.
He said that by the end of the month all his money is gone, mostly paying rent, and that this is the best thing to do to stop losing money. I disagree. I think he should move to a cheaper place and open a savings account so he won't pay interest.
| If your friend is truly living month to month, he is not ready to be a homeowner and needs to keep being a tenant. | I'm confused.... what do mean mean a mortgage loan to stop paying rent? If he's paying rent, then someone else owns the property. A mortgage loan is when you are the "owner" of a property, and the bank lends you money with the property as collateral.
If he is renting, and can't afford his rent, then yes, he should probably consider moving somewhere cheaper that he can afford, or increase is income, or reduce his other expenses.
As it stands though, I'm confused on what you are asking. |
Human: Investment in market indices (i.e. SP500) over long periods of time seems to be basic investment advice and really regarded as foolproof. "Market will always go up in the long run." What, fundamentally, is the reason behind this saying? Shouldn't growth ultimately be limited or face decreasing marginal growth over time? And if we just say "look at historical data" -- well the United States has only really been in existence for 250 years (I don't know stock market history, but I imagine purchasing and selling with all modern options is a pretty recent development). Maybe 3-4 generations worth of data. How is that enough?
Not going against any of this, just curious to understand.
| >ELI5 - how can we be so certain of overall market performance in the very long run (e.g. Retirement accounts) with only really 2-3 generations of historical data?
We can't.
>Investment in market indices (i.e. SP500) over long periods of time seems to be basic investment advice and really regarded as foolproof. "Market will always go up in the long run." What, fundamentally, is the reason behind this saying?
Stocks are derivatives of corporate earnings. Earnings tend to at least increase by the inflation rate over time, otherwise businesses would not be profitable, as they can raise prices for their goods and services. Assuming that not all businesses will fail to be profitable or at least break even, "the market" will go up by at least the inflation rate. | A better way to look at it is maybe asking what evidence do you have that the stock market will not go up? |
Human: I'm 24 years old and am considering going to college, but I don't make a whole lot of cash at my current job and I only make enough to scrape buy very month. I don't have any kids and I'm currently single. What are my options, should I just risk a student loan?
| Don't go just for the sake of going. Community college is a good place to start - you can get an associate degree, and maybe find a field you want to pursue further. It will cost much less than a four-year school, and you may find a course of study there that will help you get a better job with the two-year degree.
There are also options sometimes to get the degree with only night classes. | College has benefits in terms of personal enlightenment, but from a strictly financial perspective, you need to research which jobs are in demand that you'd be interested in. Then you need to see what degree you need. Then you need to be honest with yourself about if you can complete that degree (I had 400 in my freshman class in the electrical and computer engineering program but only graduated with about 40). Then you need to do the math to figure out if it will pay off or not. For example, It does no good to take 4 years off working at 25k, racking up 120k in student loans to only end up making 30k/yr. |
Human: I have literally no idea what 90% of people are talking about on here. But I want to know, desperately.
My financial situation is horrible. I have been making it up as I go because I have never been taught about how money works. Not even in school. I know banks offer a checking, a savings, and loans, and I haven't a clue how any of those work. I'm desperate to build a realistic budget, start investing, and pay off everything on my credit. Which is in ruins, at the moment. I picked up a book on personal finance for people in their 20s, and I was lost by page 10. (It's called, "Personal Finance in your 20's for Dummies" by Eric Tyson.) I have two car loans and a small credit card on my credit. My parents convinced me to cosign for a car for my father, because their credit is worse then mine, and now I cannot get anything else put on my credit. Not to mention the fact they fell completely behind on payments. The car even got repossessed at one point, and we were given 10 days to get it back before they put a note on each of our credit scores. We literally got it back the next day, and when I checked my credit, they put a note on it.
I'm looking for any sort of book/website/advise that can explain finances to me, and how I can get my two car loans paid off fast, as well as my credit card.
My parents have lived in financial ruin their entire lives (personally, I don't think they ever learned finances either), and I am scared to death I will end up living like them.
Edits: (I wasn't finished but it posted anyways >.<) I currently live at their home and am a student worker at my college. Luckily, FAFSA has covered all of my student expenses, so I have no student loan debt. I consider myself unemployed, even though I work at my college library and am paid through FAFSA.
Also, it'd be a bonus if somebody can explain to me how to get and pay for Health Care. I am going to be bounced from my parents health insurance on my 21st Birthday, which is the end of this year. (They have Tricare.)
| Some good advice posted so far. You're not alone in feeling lost and confused - a lot of us here started out that way.
One of the best things you can do though is remove those words "lost" and "confused" from your financial vocabulary. You said you were lost by p. 10 of your personal finance book - pick it up and read those 10 pages again. And again, if need be. Google terms you don't understand and ask about them here. Think of it like your classes in school. You don't take the final exam on day one - you start with the basics and slowly understand more and more. If you get frustrated take a break but keep at it. If you're like a lot of us here, it will go from being mysterious and scary, to mildly interesting, to a personal hobby and next thing you know you're on Reddit trying to help other people with their questions:) | Read "rich dad, pour dad"
It probably won't help immediately, but later you will feel like a genious... a rich genious |
Human: I currently have a job and I make around 450 after taxes every two weeks I already been saving at least 60 bucks from every pay check ( I just started working so I have 120 so far) and I already have about 1,400 in a checking account.
EDIT: I don't blow the 390 i don't "save" I just take 60 dollars out every paycheck in cash and I really save the rest maybe spending less than 70 dollars every month. The 60 dollars I take out is to save for a car or maybe another big purchase but I don't know yet.
EDIT #2: Some of you ask what i plan on doing for my career
I just enlisted in the US army as a X-Ray tech I hope to stay in the army for 20 years and retire then after i get out of the army I don't know if i should continue as being a X-Ray tech or become a police officer. If I di become a police officer I plan on being there another 20 years so I'll be only 57 when i retire again. Then I would try to become a JROTC/ROTC instructor at a high school or a college.
| At your age you need to start practicing how to save and spend toether. Start learning how to budget for the things you want ahead of time, and start planning major purchases. In your case, school expenses, car, girlfriend, major trips with friends, etc. You are learning how to save, now start learning how to use that money.y advice, open a credit and debit line and start building your credit card with small purchases so that when you turn 18 you have a year of credit for your first apartment. | Don't go to college if you have to take out loans. If you do go to college get degree in something relevant. A bachelor's in "business communication" will not get you far. Look into vocational schools. |
Human: I'm over $30K in debt to the IRS and over $15K in medical bills plus $4K in other credit used to buy necessities over the years whenever I got sick and couldn't work.
I'm paying $330 per month to the IRS for back taxes with an installment plan and should be paying another $400 per month to keep current but fell behind the past 2 months due to illness.
I'm self-employed, work alone from home and have been doing so for the past 15 years.
I made $40K a year before I started having health issues but now make closer to $30K the past 2 years. The health issues are not permanent but also have not fully resolved. When I'm not having health issues, I feel great but it doesn't always last.
I'm 51 and single since 1995 and have not had a partner since 2009. In other words, I'm on my own and don't have someone who helps me financially nor do I have family except for my three children ages 21, 23, and 25. I raised them on my own with no child support and wasn't able to claim any of them on my tax returns--ever--despite the fact that they lived solely with me most of their lives (long story) and I relocated 2000 miles away back in 2010. My kids are all finally on their own and it's been six months since the last one moved out and I moved to a 1 BR for $525/month.
I don't have health insurance and "affordable" healthcare is $130/month with a $6000 deductible for me so I can't afford it.
I've called several of those places that advertise "If you're in debt to the IRS, call us" and they all want $3K up front and they can't promise anything. In other words, not an option.
My credit just dipped under 600. I don't have any assets except for my car which is worth $5000 and that is paid off.
Should I declare bankruptcy? Just stop paying all creditors including the IRS and just save? I know there are IRS options like Offer in Compromise and Currently Not Collectible but I don't seem to qualify for that or any kind of assistance. Should I keep living paycheck to paycheck and hope for the best? I wish I knew someone I could ask. My son suggested this Reddit so here I am.
Edit: I didn't indicate my gender because I didn't think it was important. It's interesting to note that many commenters assumed my gender.
| Sorry to hear about this rough patch you're going through. I know it can be uncomfortable to ask but far and away the best solution would be some help from your kids. Even just a small amount each would go a long way. If you could lay out your financial situation as you've done here as well as a plan for resolving it with some assistance from them...hopefully they would prefer some small shared sacrifice to watching the parent who raised them go bankrupt.
I'm glad to hear you were smart enough not to take the plunge on those IRS debt relief companies. Stay away from them and anyone else making promises that are too good to be true. As far as prioritizing your debt you'll probably want to put the IRS at the top of your list - definitely keep trying to work with them but unlike most people you owe they can simply take money out of your paycheck/bank account whenever they see fit. You want to avoid that.
Bankruptcy isn't fun, or cheap, and it sounds like you still have a chance to avoid it. I really hope your kids can help - you sacrificed for them, hopefully they can do the same for you. Good luck and keep us posted. | What is your business? I agree with the top comment about how tough it would be to dig out of the hole on $30k a year. Maybe you can leverage your business into a job offer or sell it? |
Human: I recently have been thinking about selling my house, and renting for a bit as we have had three consecutive quarters of major economic indicator declines. Mostly, I want to protect my equity incase another recession takes place so that we can move back into our own (new) home a few years from now.
Alternatively, my wife and I just finished our bachelors degrees, and she suggested we sell the house, pay all of our student debts off, and one line of credit we used for our wedding a few years ago. Instinctually, this sounds great financially to prevent more interest payments, but on the other hand I feel like real estate equity should be treated on the same level as retirement when it comes to your primary residence.
Which path is more logical to you Personal Financiers?
| Those plans are counter to anything I would ever tell someone to do.
Here is the third path: Is the house affordable? If yes then stay put- continue making the minimum payments on everything and save money for an emergency fund. If another recession happens then you have money to pay for your housing...
One thing I have observed- we are all waiting for the next recession- much like my grandparents were waiting for the next depression their entire lives. They had some great money habits- but also never spent money on things they enjoyed.
| Great question. How is your cash flow? If the total of all your payments are under 33% of your gross monthly income I probably would keep the house and pound away at the highest rate debt. No one can predict the future, but housing still hasn't recovered from 2008 so there is still potential upside. I agree real estate equity is good for retirement.
One thing to also consider is potential taxes. I may be wrong on this, but I believe you need to reinvest those gains within a defined set of time or would have to pay taxes. Also - your income taxes may go up, assuming you itemize, as your mortgage interest is deductable. (That also happens to reduce the effective interest rate of the mortgage) |
Human: Hello reddit.
I have been saving a few years and now i have ~ $20k in my bank account so i want to invest it.
I have questions about the ways to invest.
The key thing i want to get out of my investment is more or less stable monthly income. Ideally it should be 1k/month. I understand it is risky and hard to achieve something like stable income especially if i just want to put money somewhere and forget about it but i'm still hoping to get some advice here.
I don't have much experience in investment and only tried HYIPs a few months ago with small sums. The ROI was quite good (~50%) but it requires constant monitoring and a lot of research time.
Maybe buying websites with adsense income can be a good idea?
I'm browsing reddit for investment topics constantly but there is always something new so please don't be mad about me asking a question that has been already answered many times.
| Please read the information found in the [wiki](https://www.reddit.com/r/personalfinance/wiki/index), particularly ["I Have $[X] ... What Do I Do With It?!"](http://www.reddit.com/r/personalfinance/wiki/commontopics). You may find [Your IRA and You: Basic Information](http://www.reddit.com/r/personalfinance/wiki/iras) and [Your 401k and You: Basic Information](http://www.reddit.com/r/personalfinance/wiki/401k) worth a read as well.
| Buy TRTC and thank me in 2017 |
Human: There is a political crisis in my country (Republic of Macedonia) in which the ruling party has been accused of abusing it's power. Under it's rule public debt has increased 4x in the last 8 years. And because of evidence that as much as 40% (if not more) of the money granted by the world bank to municipalities for development is being stolen by the politicians, there have been restrictions announced where all loans for municipal development are banned, until the country elects a government that will be able credible in the eyes of EU and USA. The current situation in the country points to that not happening in the foreseeable future. One of the scenarios is creditors refusing to borrow more money to our country, which leads us on the same path as Greece.
How can I save my savings in such a scenario?
| Convert your savings and run | Invest in US stocks.
There are plenty of cases where governments have siezed all sorts of assets, including gold and bonds, and your currency could go belly up at any moment, but no one fucks with the NYSE. |
Human: Do they mean the amount your mortgaging (without downpayment) or the total cost of the house?
| If the answer to this question affects your decision, you probably can't afford the house, but they're usually referring to total cost. | When I've heard of this, it's talking about the total cost of the house. |
Human: Are there any books I should read to be knowledgeable about how to "survive the real world"? I know nothing about taxes, saving money, how to pay off debt, or anything regarding finances.
| The sidebar is your friend. | As someone who has been in your exact shoes, my biggest piece of advice is this - Just don't do anything stupid! It sounds overly simplistic, but I am serious. You will have plenty of time to learn about taxes and investments, but those are not your problems. The biggest trap young physicians fall into is living beyond their means. There are going to be a lot of people offering you big loans. Resist the urge of expensive houses and luxury cars, at least for now. It is very easy to take on massive amounts of debt that you will be living with for a very long time. Essentially you become a slave to your possessions. Don't marry anyone, unless you are absolutely certain about the relationship. And for the love of god, don't get anyone pregnant. Alimony and child support are some of the easiest ways for a physician to wreck their finances, and incredibly common. I know a number of guys physicians who work long hours and live in small apartments, while their ex-wives (who don't work) live in million dollar homes and drive luxury cars.
For now, live within your means during residency and keep that lifestyle for a few years after residency. Save up an emergency fund. After residency, take full advantage of any tax deferred retirement plans and then put everything else into your loans. I had over 300k in loans and paid them off in a few years.
|
Human: Okay, so a little background on myself. I'm currently ending my sophomore year at a university majoring in environmental studies and sustainability (and looking at a masters/PhD in community sustainability). My freshman year I was debt free because I attended a local community college and worked two jobs. This past year has left me $27,000 in debt (loan breakdown to be detailed later).
My parents don't support me getting a higher education, so there's no financial support from them. I started a small business with a friend when I was at the community college which expanded to take on an investor to fund the warehouse we needed. His wife was willing to cosign private student loans so I was able to attend a university that had my major. However, the investor forced my friend and I out of our company so my primary source of income is now gone. I believe that his wife will still cosign my future loans, but so far I haven't had that discussion with her. When she first signed, she said that she was open to signing for all 3 years of my time. As she initially didn't want me to be troubled for working for the company when I was away at school (I ended up working weekly due to personal desire), I don't feel that this recent change will alter our agreement.
Current loan breakdown (2015/2016):
Stafford: $4500 Subsidized, 4.29% Interest; $2000 Unubsidized, 4.29% Interest
Perkins: $4438, 5% Interest
Private Bank Student Loan: $16,000, 10% Interest
Upcoming Year:
I've decided to move off campus where my rent will be down to $400 a month plus food and utilities (12 month lease). My previous cost of room and board, for the year, amounted to $10,774. I'm estimating a yearly cost of $7200 for housing + food/utilities ($600x12). Utilities and possibly food will bee split between myself and two roommates. I'm estimating cost of classes amounting to $13,560 for the whole year based off of my credit load. This is roughly $3,500 in savings, but at least it's something. I plan on working this summer (job undetermined but search well underway). I've also applied for TONS of scholarships but have yet to hear back.
Is this situation normal to be in? I'm from a small town where few of us decided to go on to college, and my parents (primarily my mother) believes college to be a huge waste of time. I'm a first generation college student but not a minority, family just never went aside from my dad who got an associates but never used it. Should I be freaking out and despairing or am I going to be okay? If I could get some advice on how to be proactive in this situation it would help too, as I'm just now understanding how to create a monthly budget.
EDIT: I don't know if it's helpful or not, but I have about $300 in my checking and roughly $50 in my savings.
EDIT 2: It may also be important to note that my degree is a BS, not a BA. Through recent online research most job data for my major is for those with BA degrees
| My advice: change your major to something that makes money with an undergrad degree. Consider going to a cheaper, smaller school to get that. Years down the road once you have cash, then consider going to grad school for something you're passionate about.
Even though you love your major, you have no idea how you're hurting the rest of your life with that kind of post-graduation income-to-debt ratio. I'm talking years, maybe decades, of working jobs you don't like (because no one is hiring for your degree) and can't quit because you're loaded with debt.
Quoting /u/12thManRI above:
>If you have to attend a specific school because a degree program is only offered there, that indicates the degree program may be more geared towards personal enrichment rather than being a field broadly known in the job market with a good reputation. Especially if the school is expensive. | Your credit is doomed |
Human: I want to go to this out of state public university in California. Specifically UCSB. No financial aid, no scholarships (for my freshman year I expect to apply for scholarships after). My mom said if I really wanted to go then she could get a home equity loan from the bank for $200,000 based on our $2,000,000 house. But UCSB will cost $63,000 a year for me. I am majoring in CS. If there is any information that I am missing please tell me. And also please be as honest as possible in order to disillusion me so I don't make a choice that could heavily impact mine and my parent's future heavily.
EDIT: Thanks guys, this is a reality that I needed to hear. I've decided to put my deposit in at an instate school which will be about 1/6 cheaper. Thanks everyone.
| I am begging you for the future of your family and you, do not go to that school. That is entirely too much to pay for an undergrad school. That is almost what I am looking at paying from undergrad to finishing medical school. | No no no no no. That is a terrible idea. |
Human: Right now buying a house is not even on my radar, as I'm solely focused on paying off debt and building savings/retirement. It's going to be a long road, so I may change this thinking at some point.
I love the idea of having a house, but I don't know that it would be worth it for me to buy a house. I work 6-7 days a week right now (I have my dream job, so even if I could afford to work less, I don't know that I would), and when I am not working, I am usually out of my apartment hiking/training/etc with my dogs. So I feel like I wouldn't have time to enjoy a house, let alone all of the work that comes with owning a home.
I actually really like the non-maintenance part of renting. I don't have to maintain what the outside of my apartment looks like, mow the lawn, etc. I don't need to worry about unexpected expenses if something breaks.
My job requires A LOT of driving. I can easily drive 70-100 miles a day. I feel like I spend more time in my car than I do at my apartment. My car is getting up there in miles (and a larger vehicle would allow me to bring my dog's to work with me, I'm a dog trainer), and will likely need to be replaced in the next couple of years. Would it be stupid to save and buy a nice, roomy car instead of saving for a down payment on a home? I feel like a nice car that fits my needs would be more important for my daily happiness than a home.
And looking at it from a purely financial aspect, would it be a bad decision to never buy a home? When I read Ramsey's book (I know people don't really like him here), he says that buying a house is a great investment, but he did not elaborate on why.
Thanks!
| >I actually really like the non-maintenance part of renting.
Yep, that's a good feeling.
>Would it be stupid to save and buy a nice, roomy car instead of saving for a down payment on a home?
not necessarily as long as you don't buy a brand new car on credit.
>he says that buying a house is a great investment, but he did not elaborate on why.
This is why people don't like him here, it's because they misunderstand him. A house is a bad investment by the numbers. you pay for 15 years on something at 5% that maxes out appreciation at 2%. after tax, maintenance, utilities... it's almost always a loss. Here's the thing though, people here are smart enough to know that, and Ramsey really wants to help people who can't necessarily get their head around that. A house is a good investment if you look at it like "if i'm diligent and i buy a house and pay it off while i'm saving for retirement, then i'll never have to worry about housing cost when i'm retired" then it's not such a bad deal. Since housing is usually the most expensive line in a budget, paying off a house and freeing up that extra 25% of your income can be amazingly beneficial. So it's a good investment from a strategic standpoint rather than a numbers standpoint, and either way it's better than renting long term since you get to keep at least some of your monthly payments in the form of equity.
Now for your situation.
since you don't really care about housing, the most logical thing to do here is to find a roommate. You can cut your housing expenses in half so that rent isn't eating your budget. As for your main question, once you get your retirement/debt situation under control (because you took on a roommate and now you have extra money) it's probably dumb not to get into at least something you can call your own and not have to pay for every month. You might not want a big fancy house or anything, but sometimes a lot can be had for 80-90k and once you've paid it off you have a 90k asset that's pretty stable, you don't have the possibility of being evicted, and you get to keep your money. It's a good goal for retirement to own your own place. not to mention if a special someone comes into the picture and really wants a house down the road... you might wind up getting one anyway. | Some people will never be ready to be homeowners, and will always just be tenants. This doesn't make them bad people or mean they suck or anything. Many successful real estate investors love folks like this. |
Human: I found this marketing job after 3 1/2 months of unemployment and almost 100+ applications/résumé submissions. I started near the end of January, and I've been notified that my last day is May 6th. I will have two full paychecks coming my way by the time I finish, along with 4 weeks of severance pay that they are offering me.
I'm 24 years old, and have no college degree. I should have just south of $4,000 in my bank account after my termination, and my monthly bills (student loans, phone, car insurance) total around $500, currently. Because I'm living at my parents' house, I do not pay rent.
I'm having a bit of a quarter-life crisis, and have thought about selling all of my unnecessary material possessions to fund a two week trip from Wisconsin to California. I would apply for jobs there, and hopefully land one. I'm looking for a fresh start.
I'd like for the fine folks of personalfinance to argue for both sides. I want to know how realistic this is financially. Feel free to be as brutally honest/wildly optimistic as you see fit. Thanks in advance for any advice you can give.
UPDATE: I'm taking my time and exploring all of my options, but I will most likely stick around my hometown for a bit to make sure I'm not making a rash decision. If I don't find a job by May 5th, I will be applying for unemployment and trying my best to defer one of my student loans. There is one small loan (approximately $5,500 left to be paid) that I will work on paying off as quickly as possible while the other is being deferred. I'm not totally sold on going back to school due to the fact that I didn't have a ton of success with it the first time around, and especially because I don't have a particular degree in mind. Thank you all for your input, it's been a huge help!
Assistant: Don't go to California without a few months' rent saved up, and realize that rent in CA is probably double to triple what it is in WI. BE SMART ABOUT THIS.
Human: I have a friend who's sister rents a room in a house in SoCal. I'm reaching out for her contact info so I can determine what her expenses are on a month-to-month basis. This should help me better determine how much I actually need to save to at least attempt this.
Assistant: I live in LA, just to give you an idea while you wait: It'll depend on where you live and how much of a commute you tolerate, but I'd say you will spend ~$800-1200 per month on rent for your own room in an apartment/house. Also your car insurance will be higher in CA than in WI.
Human: This is really helpful. Thank you! And my hope is that I would be able to find a place that's relatively close to where I work so I could just ditch my car and walk/ride my bike.
| You probably want a car in LA, it's very sprawling | Be very careful about this. The job market in SoCal isn't great right now and rent prices are through the roof. The ongoing drought has triggered economic downturn throughout the state. If you're adamant about moving to CA, I'd recommend using the free roof over your head to your advantage and stay with your parents in WI a few more months to save some extra money. Moving to SoCal could be an amazing experience/opportunity for you, but if you're going to do it you need to be smart about it. |
Human: I'm thinking about splitting all my money between mutual funds, retirement accounts, other investments and interest-bearing checking at least for the first year of working full time. Any reason why this is a bad idea?
| As long as the interest-bearing checking account contains your emergency fund I don't see a problem. | The "At least for the first year of working full time" part has me thinking that you might dip into the mutual funds etc. in the next year, which is a bad idea. Allocation depends on what your situation is, but it doesn't seem bad per-say |
Human: My girlfriend works at a bakery and the owner just notified her and the other workers that if any customers want a refund due to a messed up order or etc, the money comes from whoever took the order and whoever made the order. Is that even legal to do?
| You can make a complaint at the Dept of Labor and he'll get audited. | No. That is extremely illegal. If he tries it, call the state Attorney General's office |
Human: If I get a loan, say for $6000, and decide to make payments on it wit the credit card and pay the credit card off each month, would that be a good idea? That would improve my credit score right?
| Just remember you generally can't pay for credit with credit. The only way would be as others said, if you have a cash advance amount on a credit card. Which would likely be higher interest. Unless it's a title/payday loan, then it would make sense. | I added topic flair to your post, but you may update the topic if needed ([click here for help](/r/personalfinance/wiki/flair)).
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Human: I'm trying to preemptively prepare a budget for a new job. I did a quick search but couldn't find anything. What's a "typical" range of costs I could expect to pay for an employee health plan?
I'm a young healthy male (does that affect anything when it's offered by an employer?) who's single and has no children. I did a cursory search of the plans on the federal exchange and they were all around $200-$300 for catastrophic coverage, but it's my understanding that as a young healthy person those costs are likely unfairly high. It's also my understanding that employers typically contribute a large portion of the cost but I have no basis for guessing how much that would be.
So, any help?
| It can vary very widely from being free for you only up to $300 or $400. Your employer would be the one to talk to as they would know best. | good coverage for a single in NYS 450$ a month (without any Obamacare subsidy) if you learn less the price will be less... |
Human: I was supporting my girlfriend throughout college, but we are breaking up now that she is going off to another state. It's totally mutual and we're both okay with it.
The issue is that she was living off of my credit card and accumulated $5,000 in debt. She was paying the minimum every month and things were fine. I was okay with my credit score taking a hit. I know I'm going to get shit for letting her use my credit card, but I needed to make sure she was eating and would survive until she could work full time.
However, now that we're broken up, we're trying to find a way so that I can transfer her the debt that she's accumulated. She only has one credit card and her credit limit is too small for me to transfer everything to her.
Is there a way I could transfer her what she owes me? Hopefully in a way where she doesn't have to make ridiculous payments or fees?
| If she won't qualify for a loan or other credit card on her own then you're pretty much SOL - which I think you already knew.
If she doesn't make the payments on time as you've agreed, you can take her to court and win. But if she doesn't have the money to pay you back - it's not like suing her will magically make that money appear.
You very much might have a $5,000 lesson learned here. | She can try and get a credit card and transfer the balance to it to pay off yours.
Without her having the cash that is about the only option. |
Human: Is this true? He owes almost 100k in medical debt, and he told me if he ignores it for 7 years he doesn't have to pay.
| For $100K they're not going to write it off. They will sue him before the SoL runs out, get a judgement against him, and garnish his wages / bank accounts, put a lien on his house, etc.
Ignoring problems almost never makes them go away. | And, of course, his credit will be trashed. If he needs a car loan or other loan, his interest rate will be insanely high. |
Human: DH (31) and I (30) were planning to start trying to have a baby at the end of this year. When we do have a kid, DH will be staying home and therefore we will be down to 1 income. We recently looked at our mortgage and determined we could pay off the mortgage in about 3-3.5 yrs if we postpone starting a family. So my question is, would you payoff the mortgage first or start a family sooner?
Background:
My income $76k a yr (also expecting a promotion/raise later this year based on annual performance reviews)
DH income $40k
Mortgage balance:$162k
We have a 6 month emergency fund
Paying off the house will allow us to maximize retirement savings, if we don't payoff the house early we are expecting to save up to employer match (6%) and 10% toward required pension contribution, while we're at 1 income
| Money is important, but it's not "structure your entire future around it" important. If you want a kid now, have the kid now.
Financially, kids are never a smart decision. That's why it's important to value some things more than money. | You might have incorrectly formatted line breaks. To create a line break, either put two spaces at the end of the line or put an extra blank line in-between lines. ([See Reddit's page on commenting for more information.](http://www.reddit.com/wiki/commenting))
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> DH (31) and I (30) were planning to start trying to have a baby at the end of this year. When we do have a kid, DH will be staying home and therefore we will be down to 1 income. We recently looked at our mortgage and determined we could pay off the mortgage in about 3-3.5 yrs if we postpone starting a family. So my question is, would you payoff the mortgage first or start a family sooner?
>
> Background:
> My income $76k a yr (also expecting a promotion/raise later this year based on annual performance reviews)
> DH income $40k
> Mortgage balance:$162k
> We have a 6 month emergency fund
> Paying off the house will allow us to maximize retirement savings, if we don't payoff the house early we are expecting to save up to employer match (6%) and 10% toward required pension contribution, while we're at 1 income
>
>
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Human: I bought my home in 2010 for $183K. I currently owe $144K on my mortgage with an interest rate of 3.5%. Housing in New Orleans has increased in value significantly and when I spoke to my realtor recently, she valued my home at $350K. A home similar to mine about a block away recently sold for $365K and went under contract on the first day it was listed.
In mid May, I am graduating with a M.S. in computer science. I started a full time job in January making $64K annually. I took out loans of $15K each year for three years of school which I'll have to begin paying back in November (6 month grace period after graduation). Here is my loan information:
**Loan 1 (private):** $16,690 (principal is $15,000) with 4.9% interest rate
**Loan 2 (federal):** $17,341 (principal is $15,900) with 6.21% interest rate
**Loan 3 (federal):** $15,434 (principal is $15,030) with 5.84% interest rate
I have been considering upgrading to a larger home (currently live in a 1 bed, 1 bath) and it seems like a good idea to extract the value from my current home, pay off my loans, then use the remainder for a down payment on a new home. Assuming I could sell my home for about $350K, the income from that sale would be $200K. Assume 10% realtor fees (which would likely be lower), I'd have $180K. Take $50K to pay off my loans, I'd have a down payment of $130K to put towards a new home.
Is this a good idea? What am I not thinking about? What are the tax implications of using income from a real estate sale to pay off student loans? Are there other options I am not considering? What would you do in this situation?
Edit: My home is just blocks from the French Quarter, thus its high price on the market. There are several neighborhoods that are more affordable and plenty of nice places on the market that are larger than mine and listed in the $250K to $350K range.
Any idea how much of a mortgage I could get with a $120K down payment and a credit score in the mid 700s ..? Or how much of a mortgage I *should* get given income of $64K? I'd have zero debt.
| I just did this in Silicon Valley. I think the basic question I asked myself was: if this situation were reversed and I had the cash available, would I buy my house or do something else with the money? And the answer was: hell no, I would not buy that house, I'd rather have the cash, pay off all my loans, and rent for a while until I find my next home. Now there are the implications of selling costs, but if you plan to sell your house in the next 1-2 years anyway holding it now is actually risky. You have all of your money invested in a single asset. Anyway, that's the way I looked at it and I haven't regretted it at all. | I added topic flair to your post, but you may update the topic if needed ([click here for help](/r/personalfinance/wiki/flair)).
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Human: Hello everyone,
I'm 24 years old and I'm going in for an interview tomorrow for a position as a bench jeweler in a jewelery design store. I'm incredibly excited for this job opportunity and I want to do my best to land it. More importantly though, I want to be able to negotiate my salary. I've been in my field of expertise for only three years, but my research is showing that on average I should be getting about $15/hr. My current job is part time at $11/hr and I'm scared to ask for more.
Does anyone have some advice for me? I really want this job and I feel like asking for additional money is something that would make the employer decide against hiring me.
| As others have pointed out, let him or her make you an offer first. Do not get ahead of yourself. | They will most likely ask either what you are making now or what you would like to make with them. The answer to the former is that current salary is not really relevant as you've gained many skills and grown much since starting with them. To the latter, you should say you are interested in the opportunity/job and that you would like to discuss salary and compensation only after the job offer has been extended. If they ask multiple times, you should push back at least twice but if they press a third time then you should respond with real numbers, do not lie. Also if you want 15 don't ask for 15, ask for more than 15...perhaps 17? |
Human: So i just discovered the wonderful resource that is the library and man there are a bunch of free things available there. I just found out that I can print documents, like shipping labels, for 10 cents per page. I have a printer but with the cost of ink and the space the printer takes up in my small place it doesn't feel worth it to do it at home. Have any of you run the numbers on this? Of course there is the convenience factor of having a printer at home and not having to go somewhere to get a print job, but in the light of costs, i wonder how much this convenience costs. I have a basic hp inkjet printer. Have any of you run the numbers on this?
| Get free after rebate paper at Staples and buy a Brother laser printer on sale. Toner is cheap on Amazon. Not sure of the exact cost, but the convenience sure beats trekking to the library every time you need to print. | Ink is dirt cheap if you buy the discount stuff. $3 |
Human: Hey,
Hope I'm not beating a dead horse here, but I just can't get myself to start paying off these dang students loans. Current they're about 33.5K @ ~4.42% APR.
So, I just landed my first job about 6 months ago. Salary: 60k with 4% 401k matching.
I'm maxing out my matching and have about 7.5K in CC debt with 0% interest for about another 9months. Have about 3.5k money in the bank after paying off about 3.4k in debt with my folks and 3k in debt with a student loan that offered no accrued interest if paid off in full so saved about $850 in interest.
So, how hard should I attack these loans? They're currently in "repayment" until this December and then they start on a 9 year plan of $350 a month.
Oh, also living with parents for the foreseeable future so really don't have many expenses. Starting to slow down on the buying.. but most of that CC debt was long overdue through all my college tribulations getting here so I don't regret it.
Anyways,
Thank you PF
| Why would you not want these things gone as soon as humanly possible? Do you enjoy the crushing weight of debt that you can't get rid of even in bankruptcy? Do you foresee yourself as being a person who keeps loan debt around like it's a pet? | I added topic flair to your post, but you may update the topic if needed ([click here for help](/r/personalfinance/wiki/flair)).
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Human: I was helping my grandma out at her house a few months back and came across a few copies of what turned out to be [a short pamphlet that my great-grandfather had made to help people start personal and family budgets](http://imgur.com/1j8xLmb&y4FZXBa&j4avK7Q&0ET5fRx&u44W2d4).
"Living Within Your Income: A Personal and Family Budget Plan" was a pamphlet he made to help people start budgeting. It reminded me so much of what I have seen on here, especially the advice to start right away! When I think about how much of a hassle it must have been to write out all of your expenses, with all the tools we have now we really don't have an excuse to wait.
My dad always told me about my great-grandfather, who unfortunately passed away when I was one, but I hope he would be proud to see his great-grandson is also interested in budgeting and personal finance. On the last page he said please do not mimeograph the pamphlet, but he said nothing about imgur.
I hope you all find this peek into the 1940s world of personal finance interesting, and as a longtime lurker, thank you to all the contributors for the great advice!
[edit: Grammar/Punctuation]
| Your great gpa was Dave Ramsey before it was cool! | reminds me of my grandmom pulling out old deeds of land and papers about loans and stuff to show what she and my granddad invested in back in the day. |
Human: I am a 22 year old graduate from a pretty reputable university. Unfortunately, I haven't landed a job yet, and I am going to have to go home and live with my mom while I get on my feet. I have approximately $100 in savings (sad) and $4,000 in credit card debt, not to mention my $30,000 in student loans.
My bills every month, when paying the minimum, come just short of $250. I'd really like to take advantage of living rent-free and pay down my credit card debt, as well as save.
I'm feeling really lost, though. This last year has been one of constant overdraft fees and late rent, and I just got hit with an eviction notice (the last week of classes, naturally). Currently, I make about $400 a month working part time, the rest going to late fees and whatnot.
What kind of hourly pay should I be looking for, realistically? Has anyone else been in this situation/gotten out of it? What are some good resources for budgeting that are free?
| Take any job you can get in the interim to pay off your debts and apply for jobs you're qualified for with your degree | I added topic flair to your post, but you may update the topic if needed ([click here for help](/r/personalfinance/wiki/flair)).
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Human: A little complicated backstory: I work for the founder of a commercial real estate firm, helping him manage his public market investments (but I'm not an employee of the real estate firm). His assistant at the RE firm recently has asked me for advice on what to do with her 401K/IRA. She said the firm is moving to Fidelity for 401K, and she asked if I could look into what the options were with Fidelity.
Since I'm self-employed and don't use Fidelity, I'm not really sure what the options are.
Can anyone whose employer uses Fidelity for the 401K give me a high level of the options for funds that Fidelity allows you to invest in?
Is it just an S&P500 index and a few other Fidelity index funds?
| A plurality, if not a majority of people have their 401ks with Fidelity. NetBenefits is huge. But that's really meaningless for your question. Every employer individually chooses a slate of funds to offer. It is quite possible for a Fidelity 401k to offer almost no Fidelity funds. She will need to wait and see a list of fund offerings for their specific plan. | I added topic flair to your post, but you may update the topic if needed ([click here for help](/r/personalfinance/wiki/flair)).
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Human: As the tittle says, I just kinda fucked up. I just applied to a credit card that gives certain benefits if you travel a lot. But THEN after I applied I just saw another one in another bank that is way better. What should I do? If I back out would it hurt my credit score? Help.
Assistant: You've already taken the hard inquiry. If an offer was extended to you and you accepted it, you've got the new account hit as well.
If your credit is good/excellent already, these hits are minor. If your credit is borderline, it'll take a month or two to bounce back but some companies are VERY inquiry sensitive and new account sensitive.
Human: I have not accepted yet. I literally just applied two hours ago. My credit score is 697 according to credit karma.
| If they accept your application, you have the card. By applying you already said you were interested.
That being said there's nothing wrong with having another credit card, provided that you can manage them. It would hit you with another inquiry but that may not even be the same bureau the first company checked. Your average age of accounts will be lowered as well but this bounces back quickly. | The hit occurs immediately upon application.
You don't have to censor yourself; what cards are you talking about?
If there are bonuses involved and you can meet the spending requirements for both, I'd say go ahead and apply for the second one as well. Credit inquiries affect your score, but one more won't bring you down drastically. |
Human: Was laid off Dec 31 of last year and haven't really looked into my options of what to do with this money. Wait for employment and roll into their 401k? Move to a Roth slowly for taxes? Roll to my own investment fund?
Run-down: Single male,29yrs old. Homeowner for 7 years. Emergency fund is ~5mos left now, covering all expenses, while I look for a job. $10k in liquid assets. Around $2k in low-interest revolving credit card debt.
Just thought I'd give as much info so I don't have a bunch of questions.
| Roll the entire balance into a Roth IRA. | I added topic flair to your post, but you may update the topic if needed ([click here for help](/r/personalfinance/wiki/flair)).
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Human: Hi personalfinance!
I am soon to be wed to the love of my life :) However, I am a graduating college senior, and beyond working hard and budgeting for food and simple bills like gasoline, I'm relatively new to managing money as an adult, much less an adult with a wife to care for.
So, I'm here for general advice about managing money/buying health insurance/saving for a car for her/college debt management/etc. Anything anyone can think of that would be good for a newly-wed couple to know about healthy management of our money.
A little info about me: I work at a pizza place, delivering pizzas. The pay is minimum wage + tips. I can easily make $10-$15 an hour though, with the tips. That is going to change here soon, and I will be moving to another state to intern, and once we are married, she will join me. The internship is unpaid until I get my school credit, and then I will transition into a paid internship with the intent of full-time hiring. (It's a good deal, I've been told by my college adviser. Not many interns get offered paid positions with consideration for being hired, apparently. It is a live sound company, and I will work as an audio engineering assistant, if that is relevant.) I am about to graduate with a B.S. in Audio Engineering and Producing. My bride-to-be took a break from college to plan this wedding and get some savings behind us, and would very much love to go back to college, and I intend to enable her to do so.
To be honest, I am nervous about our financial situation and want to be proactive about this as we draw closer to our life together!!
Thank you to anyone who comments with advice! I very much appreciate it, in advance.
| Howdy.
First off, congrats on the wedding and internship and graduating and all that jazz!
Been married for going on 5 years now. 2 kids.
So step one, like everyone says, is TALK. Talk about money. "But may parents didn't..." Tough crap. The #1 reason for divorce is MONEY. So get that off the table and get on the same page with regards to budget and extra income spending and vacations and cars and houses and retirement and video game purchases and shoes and ect ect. The budget should not be used in any way to control each other. Just use the budget to "know where your money is going instead of wondering where it went". Make sense?
Secondly.. YOU DO NOT NEED A HOUSE. Read that sentence again. Seriously re-read it. Have your soon to be wife read it. Have her say it out loud. Make up a "we don't need a house" song and sing it together every day.
Why do I make such a big deal? Because EVERY woman in the world gets married and says "aww that was a nice wedding. Should we go look at a new house today or wait till tomorrow".
You're no where close to being able to buy one. BE MARRIED for a little. Enjoy it. Rent cheap. Get through those first few years together without having money fights over new roofs and water heaters and AC units and "she liked the house but only if you remodel the whole thing and she didn't tell you this before you bought it but now you bought it and she hates it because she expected you would be remodeling it"... And then you get a job in Florida and have to sell at a 50,000 loss.
Kids...... Oh shit talk about them NOW. Kids will fuck up your life if you're not on the same page. Look I got 2 of those little assholes and kids are fucking assholes and I love mine to death but if my wife and I weren't United against the wrath of our kids we would be so divorced...
Talk about how many. She staying home with them or are y'all doing daycare? Ask around what daycare costs. Around Baltimore it's at least a grand a month, I tell people budget 1500 around here and be happy if it's less... 2 kids? 3 grand a month in daycare....
Talk about this stuff. That's your key. Do y'all want a joint checking? Joint with each own"his and hers?" Joint but you each get "x" per week in cash?
The more you talk the better. Don't buy a house. Good luck!
Edit word | Create a list or bilance or whatever you wanna call it of all your assets. Car, houses, stocks, Cash.
If something happens, and i wish you to be happy forever, it makes things a whole lot easier. Sharing what you earned together is easy if you don't have to discuss what you brought into the marriage. Tell her that too |
Human: I got a call from my mom telling me that my dad's sister-in-law and my cousin visited my dad hoping he would help my cousin buy a house. The gist of the plan was for my dad to take out a loan under his name for 350k, and my cousin has 150k down payment for the house. After a few weeks, they will switch the loan to my cousin. My dad isn't going to be on the title of the house from what my mom is telling me.
This raised a lot of red flags for me. According to my mom, my dad has been taken advantage of my dad side of the family. My parents are Chinese and whenever I try to discuss someone like this, they just don't talk to me and just shut down.
Is there anyway to prevent this? Would the bank actually give my dad a loan?
Edit: This is California, not Canada to clarify. I'll try to talk to my dad. Hopefully he'll listen and not ignore what I'm saying..
| Having 150k liquid to buy a house (30%) hard to believe that they can't qualify for the loan himself. Something else has to be at play. | My family has helped out other family members buy homes by lending what money we could. It has worked for us so far, but this plan is complete nonsense.
As the previous poster said, loans don't transfer without qualification by the third party. Also, a 150k down payment on a 500k home (assuming because of the 350k loan) is unnecessary, as anything more than 20% should be kept as rainy day or repair money.
My family is Armenian so I understand the family fiscal politics, but try to get him to speak with professionals. Also, telling him that you will help your cousin file for HIS OWN loan puts you in a place of helping your cousin and keeping your father's finances safe. |
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