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User (SteakWay): "My parents are in the midst of a divorce. My mother is asking for a lot from my dad and my dad wants to take out a loan to buy her out. The problem is that he doesn't want to cosign for my loan because he is less likely to get the loan to buy her out and then he loses everything.\n\nI could talk to my mom to try to get her to not do the lawsuit, but otherwise, I don't know what to do from there. " Self: "What happened to running a Subway?" User (SteakWay): "I decided it just isn't for me. I feel like Subway is on the decline. I felt like college would be better for my future.\n\nAlso, with the divorce, I doubt my dad would want to take out a business loan." Self: "Totally agree. It's a long life, and a college education is a platform you need. Good luck." mawnicker (mawnicker): "How will it help me in the next 45 days?"
User (Satis_est_satis): "First of all, this is a new account. I, stupidly I might add, stopped paying my credit card I had gotten with Wells Fargo a couple years ago. I stopped using it but hadn't paid what was owed. Why, I couldn't begin to tell you looking back, a mix of hiding instead of acting and other life issues came up. Anyway, I just avoided it. Now, Wells Fargo has sued me for breach of contract. I am scheduled to go into court next week. I am looking at my summons now and they have me dead to rights. Is my best option to call Wells Fargo before my court date and work out a payment plan? I live paycheck to paycheck, and have begun to cut the unnecessary expenditures out of my life. I really can't afford them to garnish my wages but I can afford a reasonable monthly payment plan. Also, in case you are wondering, the amount owed is $5,356." Self: "> Is my best option to call Wells Fargo before my court date and work out a payment plan? \n\nDefinitely. If you can work out a payment plan, do so. If you can't, show up in court and politely (!) ask for a ruling where you can afford the monthly payments. \n\nBesides that, you say that you're trying to cut unnecessary expenditures from your life. That sounds like a good plan. You might want to show us your budget, too. How much money is coming in every month, and how much is going out to what kind of expenses? Will you get a tax refund in February/March; and if so, how much (roughly)?" User (Satis_est_satis): "I can answer the first two questions but the last two regarding my tax returns not so much. I will get a return but the amount I will have to get back to you on. I make $765 bi-weekly, sometimes more if I able to work overtime at my job. Rent is $730, Electricity averages $75, Cable/Internet is $110(I am cutting this down to just internet so it will be more like $50-60), I rent a washer/dryer at $40 per month, Cell is $40, Car Insurance is $50, and other expenses vary(groceries/fuel/etc). I also donate plasma one to two times a week and all that money($30-70) goes to fuel. I drive 60 miles, round-trip, to work five days a week." Self: "Your rent is high, of course. It's almost half of your income. Plus apparently you are far away from work. Is there any way to make both of these things better by moving closer to work to a cheaper place? That would be a nice change to your budget. \n\nOf course, it's possible that where you live now is your best option, in terms of rent and gas money/driving time. And that you also can't get a roommate to share the rent with you...\n\nAs for your income tax... if your workplace is withholding too much money from each paycheck, say more than $25 per paycheck or $650 per year too much, then it can be worthwhile to change your withholding with a W4-form, so that you get more money per paycheck (but of course: a much smaller refund!). I assume, however, that the money you make while donating plasma is also taxed? So I'm not sure how big of a refund you will get, and I would make sure that you have enough withheld every month so that you won't owe money, come tax time. " User (Satis_est_satis): "Well, rent will be extremely difficult to change, I am in the middle of a year long lease and breaking it would add more unneeded expenses. I am working on a promotion that hopeful will not only lessen my drive but also increase my pay. I claim a zero exemption on my W4. I also have my health insurance(HSA) taken out of my paycheck and 3% towards my retirement(TSP) with my job matching the 3% plus 1% so 4%. I should also probably add my age, I am 29, will be 30 in January." Self: "Maybe you can move when that year is up. But... changing your work location to a location closeby and increasing your pay are of course good ways to improve your financial situation! I hope that that will work out for you. \n\nI would use the W4-calculator by the IRS to see whether you should change that number of exemptions. https://www.irs.gov/individuals/irs-withholding-calculator Perhaps make the change for 2017, not anymore for 2016 as the year is drawing to a close. I hope the 2017 calculator will be up shortly after January 1st... " User (Satis_est_satis): "I will do that! Thanks. I have a quick question regarding my retirement investing. I have a Thrift Savings Plan. Based on my age, is it worth me either removing what I have in there(10% removal tax) or get a loan through them(the amount equal the amount I have contributed) paying it back with the money I would have invested in it? I would use that money to have savings, I have none now. " Self: "I wouldn't do either of those things just yet. Getting a loan or payout from your TSP could be an option only if all else fails. I would try to keep the money in there and keep it earning money for you for much later. And try to work with your current income and expenses to improve your situation right now." User (Satis_est_satis): "I will plan on doing that, I am at least glad to hear that it is not a crazy idea. I feared messing with my retirement investments would be considered a terrible idea." Self: "It's ... not a good idea. If the scale goes from nobel-prize worthy ideas scored as A+ and terrible ideas as F, I'd say it's a D or E. \n\nBut if it saves your ass from, I don't know, losing your car and then losing your job because you don't have a car, it's at that point a better idea than "doing nothing"... "
User (Satis_est_satis): "First of all, this is a new account. I, stupidly I might add, stopped paying my credit card I had gotten with Wells Fargo a couple years ago. I stopped using it but hadn't paid what was owed. Why, I couldn't begin to tell you looking back, a mix of hiding instead of acting and other life issues came up. Anyway, I just avoided it. Now, Wells Fargo has sued me for breach of contract. I am scheduled to go into court next week. I am looking at my summons now and they have me dead to rights. Is my best option to call Wells Fargo before my court date and work out a payment plan? I live paycheck to paycheck, and have begun to cut the unnecessary expenditures out of my life. I really can't afford them to garnish my wages but I can afford a reasonable monthly payment plan. Also, in case you are wondering, the amount owed is $5,356." Self: "> Is my best option to call Wells Fargo before my court date and work out a payment plan? \n\nDefinitely. If you can work out a payment plan, do so. If you can't, show up in court and politely (!) ask for a ruling where you can afford the monthly payments. \n\nBesides that, you say that you're trying to cut unnecessary expenditures from your life. That sounds like a good plan. You might want to show us your budget, too. How much money is coming in every month, and how much is going out to what kind of expenses? Will you get a tax refund in February/March; and if so, how much (roughly)?" User (Satis_est_satis): "I can answer the first two questions but the last two regarding my tax returns not so much. I will get a return but the amount I will have to get back to you on. I make $765 bi-weekly, sometimes more if I able to work overtime at my job. Rent is $730, Electricity averages $75, Cable/Internet is $110(I am cutting this down to just internet so it will be more like $50-60), I rent a washer/dryer at $40 per month, Cell is $40, Car Insurance is $50, and other expenses vary(groceries/fuel/etc). I also donate plasma one to two times a week and all that money($30-70) goes to fuel. I drive 60 miles, round-trip, to work five days a week." Self: "Your rent is high, of course. It's almost half of your income. Plus apparently you are far away from work. Is there any way to make both of these things better by moving closer to work to a cheaper place? That would be a nice change to your budget. \n\nOf course, it's possible that where you live now is your best option, in terms of rent and gas money/driving time. And that you also can't get a roommate to share the rent with you...\n\nAs for your income tax... if your workplace is withholding too much money from each paycheck, say more than $25 per paycheck or $650 per year too much, then it can be worthwhile to change your withholding with a W4-form, so that you get more money per paycheck (but of course: a much smaller refund!). I assume, however, that the money you make while donating plasma is also taxed? So I'm not sure how big of a refund you will get, and I would make sure that you have enough withheld every month so that you won't owe money, come tax time. " User (Satis_est_satis): "Well, rent will be extremely difficult to change, I am in the middle of a year long lease and breaking it would add more unneeded expenses. I am working on a promotion that hopeful will not only lessen my drive but also increase my pay. I claim a zero exemption on my W4. I also have my health insurance(HSA) taken out of my paycheck and 3% towards my retirement(TSP) with my job matching the 3% plus 1% so 4%. I should also probably add my age, I am 29, will be 30 in January." Self: "Maybe you can move when that year is up. But... changing your work location to a location closeby and increasing your pay are of course good ways to improve your financial situation! I hope that that will work out for you. \n\nI would use the W4-calculator by the IRS to see whether you should change that number of exemptions. https://www.irs.gov/individuals/irs-withholding-calculator Perhaps make the change for 2017, not anymore for 2016 as the year is drawing to a close. I hope the 2017 calculator will be up shortly after January 1st... " User (Satis_est_satis): "I will do that! Thanks. I have a quick question regarding my retirement investing. I have a Thrift Savings Plan. Based on my age, is it worth me either removing what I have in there(10% removal tax) or get a loan through them(the amount equal the amount I have contributed) paying it back with the money I would have invested in it? I would use that money to have savings, I have none now. " Self: "I wouldn't do either of those things just yet. Getting a loan or payout from your TSP could be an option only if all else fails. I would try to keep the money in there and keep it earning money for you for much later. And try to work with your current income and expenses to improve your situation right now." User (Satis_est_satis): "I will plan on doing that, I am at least glad to hear that it is not a crazy idea. I feared messing with my retirement investments would be considered a terrible idea." Self: "PS. Check out the right-hand column:\n\n[How to handle $](https://www.reddit.com/r/personalfinance/wiki/commontopics) \n\n[How to handle debt](https://www.reddit.com/r/personalfinance/wiki/debt)\n\n& I wish you all the best. Hang in there and keep working on it!"
User (alycda): "Hi,\n\nI have been employed with my current company for a year and a half. When I was hired in 2015, I put the max in my FSA as I needed some dental work. I also ended up in 2 car accidents, so I spent the full amount of my FSA before the end of the year (a little more than that actually). I did the same for 2016 to continue my dental work. I will probably have a rollover balance for 2017, and I think most of my dental has been completed and that I shouldn't need to add more than $1000 for 2017 (to give me about $1500). \n\nI'm looking to maximize my tax breaks, but not if I'm going to lose this money at the end of the year, so I'm tying to come up with a reasonable number, maybe have another rollover balance for 2018, meaning I would contribute less towards 2018 than I plan to in 2017. \n\nI don't plan to have any major medical expenses, I'm fairly healthy, but I do a lot of "extreme sports". If I were majorly injured, I'm sure I would spend more than 10% of my MAGI and itemize on my tax forms for that year. I'm trying to think of anything that I might be able to use the FSA on next year (to my benefit, not just to simply spend money). I could see my chiropractor more often, I do see a benefit from monthly or bi-weekly visits (but I don't have to, I get along fine without, and scheduling is sometimes an issue). \n\nIs there anything I'm not considering as an eligible FSA expense that I can reasonably utilize so I can maximize my tax breaks? I don't necessarily need the extra money from each paycheck, I'd just be putting that into savings or something else. " Self: "An fsa is not the best choice - yes, it's tax free, but it's use it or lose it. Put your money in an hsa if possible - it's still not taxable, but you can roll it over from year to year if need be. So estimate your expenses high and use an hsa, you really can't lose. " User (alycda): "But I have to make sure that works with my employers plan, right? I need to look more into that, thanks. " Self: "Yes, but most health care packages I've seen tend to include a 'high deductible with hsa' plan. Much better idea!" User (alycda): "I just asked today and none of the plans offered to me qualify as high deductible "
User (alycda): "Hi,\n\nI have been employed with my current company for a year and a half. When I was hired in 2015, I put the max in my FSA as I needed some dental work. I also ended up in 2 car accidents, so I spent the full amount of my FSA before the end of the year (a little more than that actually). I did the same for 2016 to continue my dental work. I will probably have a rollover balance for 2017, and I think most of my dental has been completed and that I shouldn't need to add more than $1000 for 2017 (to give me about $1500). \n\nI'm looking to maximize my tax breaks, but not if I'm going to lose this money at the end of the year, so I'm tying to come up with a reasonable number, maybe have another rollover balance for 2018, meaning I would contribute less towards 2018 than I plan to in 2017. \n\nI don't plan to have any major medical expenses, I'm fairly healthy, but I do a lot of "extreme sports". If I were majorly injured, I'm sure I would spend more than 10% of my MAGI and itemize on my tax forms for that year. I'm trying to think of anything that I might be able to use the FSA on next year (to my benefit, not just to simply spend money). I could see my chiropractor more often, I do see a benefit from monthly or bi-weekly visits (but I don't have to, I get along fine without, and scheduling is sometimes an issue). \n\nIs there anything I'm not considering as an eligible FSA expense that I can reasonably utilize so I can maximize my tax breaks? I don't necessarily need the extra money from each paycheck, I'd just be putting that into savings or something else. " Self: "FSA is not really the best option for maximizing tax breaks. I would go the 401k route if I wanted less taxed income and just enough for the rollover if no medical expenses anticipated AND good job security.\n\nHSA is a good option, but it is attached to a high deductible plan which your employer might not offer." User (alycda): "I'm already maximizing my 401k & company match. So the FSA is another option for me on top of what I'm already doing, not saying it's the best way to max tax breaks, but it is offered to me, and I don't think an HSA is available to me (going to double-check next week). \n\nI'm also thinking I'm at a higher risk for having some unplanned medical based on all the activities I do. (fell off my road bike and needed stitches, now I ride a motorcycle and if I get injured that could be much worse- not PLANNING to get injured, but I am more likely just because I ride, no matter how safe I try to be). " Calliope719 (Calliope719): "Get accident coverage. Aflac and Assurant both offer voluntary products (ie, you pay the premiums ) that cover accidents. I worked for assurant handling the accident claims, and an accident is 'any unforeseen, unexpected external event resulting in injury '. Falling off your road bike or motorcycle counts. The payments are small ($150 for ER, $35 for lacerations with no sutures, $650 for rotator cuff surgery ), but they'll help pay your deductible and the premiums are very inexpensive. Aflac is better. Sounds like something that would meet your needs!" Calliope719 (Calliope719): "Note- if you're competing in extreme sports for compensation or profit, they will deny your claim." User (alycda): "Thanks, I was considering the extra life insurance or long term disability options I could pay into. I do not compete for any type of compensation. This is all just stuff I do for fun, out-of-pocket, but thanks for pointing it out" Calliope719 (Calliope719): "Some life insurance policies build equity, and that's always a good bet, especially if you're relatively young. If you're worried about serious injury, private short and long term disability policies are an excellent choice. You probably have std and Ltd through your employer, but depending on the carrier, most private polices are not an offset- meaning that neither carrier will not reduce your benefit. Example- if you had Ltd and were awarded ss disability, the Ltd carrier would reduce your benefit based on the SSD award (ie, you're insured for 60% of your income regardless of the source). Private insurance isn't an offset, so you could potentially receive 60% (or so) of your income from more than one source. "
User (RDPrandomname): "Sorry if I am a bit incoherent, it's late and I am not particularly happy at the moment.\n\nRecently, my parents were given an opportunity by someone who is a family friend to purchase a life insurance policy for me. Translating from mandarin, it is apparently a "dividend life insurance policy", which I believe, after an extreme research session, is whole life insurance. The death benefit is 200k, and they boasted about how I will be pretty set in life, with me being able to take out money afterwards in order to finance big future life events, such as the big wedding (asian parents, you know). Premium seems to be around $3000 annually, which needs to be paid for 20 years. At that point, I would be able to take out around 90k (this number might be incorrect), and the plan will grow to around 600k by the time I am 40. They originally scheduled to sign the insurance contract (not me because I am only 16) this afternoon, and I only found out about it yesterday before I went to my part time job, because they wanted to keep this as a secret happy surprise for me.\n\nProblem is, I searched up [the company](http://www.hatitacfinancial.net/index.htm) on the internet, and it is really small and unknown, with questionable ethics regarding employees. I already told my parents to delay the signing of the insurance contract in order to at least ask questions. Mom does think though that the company might be representing a large insurance corporation. However, I doubt it, as I can find almost no link on their website (at least I it comes to insurance).\n\nAs we speak, my mom is at least attempting to delay the meeting until sunday and still holds hope that this policy is worth it. Therefore, I have a few questions:\n\n1. Are my doubts regarding the insurance business reasonable?\n2. I strongly think that whole life isn't a good idea, at least for me. Am I right to assume that or are there situations where this is a good policy?\n3. If the answer is yes for the last two questions, how do I talk my parents out of it?" Self: "Whole Life makes sense in a few very specific circumstances (think: otherwise uninsurable). It doesn't appear that you qualify for those circumstances. " User (RDPrandomname): "To be completely honest, me too"
User (RDPrandomname): "Sorry if I am a bit incoherent, it's late and I am not particularly happy at the moment.\n\nRecently, my parents were given an opportunity by someone who is a family friend to purchase a life insurance policy for me. Translating from mandarin, it is apparently a "dividend life insurance policy", which I believe, after an extreme research session, is whole life insurance. The death benefit is 200k, and they boasted about how I will be pretty set in life, with me being able to take out money afterwards in order to finance big future life events, such as the big wedding (asian parents, you know). Premium seems to be around $3000 annually, which needs to be paid for 20 years. At that point, I would be able to take out around 90k (this number might be incorrect), and the plan will grow to around 600k by the time I am 40. They originally scheduled to sign the insurance contract (not me because I am only 16) this afternoon, and I only found out about it yesterday before I went to my part time job, because they wanted to keep this as a secret happy surprise for me.\n\nProblem is, I searched up [the company](http://www.hatitacfinancial.net/index.htm) on the internet, and it is really small and unknown, with questionable ethics regarding employees. I already told my parents to delay the signing of the insurance contract in order to at least ask questions. Mom does think though that the company might be representing a large insurance corporation. However, I doubt it, as I can find almost no link on their website (at least I it comes to insurance).\n\nAs we speak, my mom is at least attempting to delay the meeting until sunday and still holds hope that this policy is worth it. Therefore, I have a few questions:\n\n1. Are my doubts regarding the insurance business reasonable?\n2. I strongly think that whole life isn't a good idea, at least for me. Am I right to assume that or are there situations where this is a good policy?\n3. If the answer is yes for the last two questions, how do I talk my parents out of it?" Self: "> were given an opportunity by someone who is a family friend to purchase a life insurance policy for me.\n\nOh dear...\n\nYour parents do not need to buy any life insurance for you. If you will have dependents (children) at some point, that is the time for you to get term life insurance for yourself. \n\nIf your parents want to help you financially, tell them to set aside this money for your studies. They can put it in a 529 plan, meaning they get tax benefits and you can take out the money taxfree if you use it for educational expenses. " User (RDPrandomname): "There is already an educational fund set up. This was just for the sake of investments should I fall on hard times or need cash." Self: "Ah, okay, I didn't know. \n\nI still think your parents can grow their money better in a different way. \n\nHave they been saving/investing for their own retirement? " User (RDPrandomname): "Not that well, however they do have real estate and some cash resulting from it."
User (RDPrandomname): "Sorry if I am a bit incoherent, it's late and I am not particularly happy at the moment.\n\nRecently, my parents were given an opportunity by someone who is a family friend to purchase a life insurance policy for me. Translating from mandarin, it is apparently a "dividend life insurance policy", which I believe, after an extreme research session, is whole life insurance. The death benefit is 200k, and they boasted about how I will be pretty set in life, with me being able to take out money afterwards in order to finance big future life events, such as the big wedding (asian parents, you know). Premium seems to be around $3000 annually, which needs to be paid for 20 years. At that point, I would be able to take out around 90k (this number might be incorrect), and the plan will grow to around 600k by the time I am 40. They originally scheduled to sign the insurance contract (not me because I am only 16) this afternoon, and I only found out about it yesterday before I went to my part time job, because they wanted to keep this as a secret happy surprise for me.\n\nProblem is, I searched up [the company](http://www.hatitacfinancial.net/index.htm) on the internet, and it is really small and unknown, with questionable ethics regarding employees. I already told my parents to delay the signing of the insurance contract in order to at least ask questions. Mom does think though that the company might be representing a large insurance corporation. However, I doubt it, as I can find almost no link on their website (at least I it comes to insurance).\n\nAs we speak, my mom is at least attempting to delay the meeting until sunday and still holds hope that this policy is worth it. Therefore, I have a few questions:\n\n1. Are my doubts regarding the insurance business reasonable?\n2. I strongly think that whole life isn't a good idea, at least for me. Am I right to assume that or are there situations where this is a good policy?\n3. If the answer is yes for the last two questions, how do I talk my parents out of it?" Self: "1. Never heard of that company. If they're going to get life insurance for you, at least do it through a reputable company (i.e State Farm). \n2. Whole life insurance isn't a bad thing. For example, I'm 32 and have both term (return of premium) and whole life insurance. In the event something happens to me in the next 20 years, both policies would cover me. I have the term to primarily cover education costs for children and mortgage. After 20 years, kids would be done with college and mortgage paid off (theoretically anyways) and get back all the premium I paid. \n"
User (RDPrandomname): "Sorry if I am a bit incoherent, it's late and I am not particularly happy at the moment.\n\nRecently, my parents were given an opportunity by someone who is a family friend to purchase a life insurance policy for me. Translating from mandarin, it is apparently a "dividend life insurance policy", which I believe, after an extreme research session, is whole life insurance. The death benefit is 200k, and they boasted about how I will be pretty set in life, with me being able to take out money afterwards in order to finance big future life events, such as the big wedding (asian parents, you know). Premium seems to be around $3000 annually, which needs to be paid for 20 years. At that point, I would be able to take out around 90k (this number might be incorrect), and the plan will grow to around 600k by the time I am 40. They originally scheduled to sign the insurance contract (not me because I am only 16) this afternoon, and I only found out about it yesterday before I went to my part time job, because they wanted to keep this as a secret happy surprise for me.\n\nProblem is, I searched up [the company](http://www.hatitacfinancial.net/index.htm) on the internet, and it is really small and unknown, with questionable ethics regarding employees. I already told my parents to delay the signing of the insurance contract in order to at least ask questions. Mom does think though that the company might be representing a large insurance corporation. However, I doubt it, as I can find almost no link on their website (at least I it comes to insurance).\n\nAs we speak, my mom is at least attempting to delay the meeting until sunday and still holds hope that this policy is worth it. Therefore, I have a few questions:\n\n1. Are my doubts regarding the insurance business reasonable?\n2. I strongly think that whole life isn't a good idea, at least for me. Am I right to assume that or are there situations where this is a good policy?\n3. If the answer is yes for the last two questions, how do I talk my parents out of it?" Self: "> were given an opportunity by someone who is a family friend to purchase a life insurance policy for me.\n\nOh dear...\n\nYour parents do not need to buy any life insurance for you. If you will have dependents (children) at some point, that is the time for you to get term life insurance for yourself. \n\nIf your parents want to help you financially, tell them to set aside this money for your studies. They can put it in a 529 plan, meaning they get tax benefits and you can take out the money taxfree if you use it for educational expenses. " User (RDPrandomname): "There is already an educational fund set up. This was just for the sake of investments should I fall on hard times or need cash." PoopyDoopie (PoopyDoopie): "An ordinary brokerage account with index funds would be better than whole life insurance. Or a savings account or a 2-year CD."
User (RDPrandomname): "Sorry if I am a bit incoherent, it's late and I am not particularly happy at the moment.\n\nRecently, my parents were given an opportunity by someone who is a family friend to purchase a life insurance policy for me. Translating from mandarin, it is apparently a "dividend life insurance policy", which I believe, after an extreme research session, is whole life insurance. The death benefit is 200k, and they boasted about how I will be pretty set in life, with me being able to take out money afterwards in order to finance big future life events, such as the big wedding (asian parents, you know). Premium seems to be around $3000 annually, which needs to be paid for 20 years. At that point, I would be able to take out around 90k (this number might be incorrect), and the plan will grow to around 600k by the time I am 40. They originally scheduled to sign the insurance contract (not me because I am only 16) this afternoon, and I only found out about it yesterday before I went to my part time job, because they wanted to keep this as a secret happy surprise for me.\n\nProblem is, I searched up [the company](http://www.hatitacfinancial.net/index.htm) on the internet, and it is really small and unknown, with questionable ethics regarding employees. I already told my parents to delay the signing of the insurance contract in order to at least ask questions. Mom does think though that the company might be representing a large insurance corporation. However, I doubt it, as I can find almost no link on their website (at least I it comes to insurance).\n\nAs we speak, my mom is at least attempting to delay the meeting until sunday and still holds hope that this policy is worth it. Therefore, I have a few questions:\n\n1. Are my doubts regarding the insurance business reasonable?\n2. I strongly think that whole life isn't a good idea, at least for me. Am I right to assume that or are there situations where this is a good policy?\n3. If the answer is yes for the last two questions, how do I talk my parents out of it?" Self: "> Are my doubts regarding the insurance business reasonable?\n\nYes, very reasonable.\n\n> I strongly think that whole life isn't a good idea, at least for me. Am I right to assume that or are there situations where this is a good policy?\n\nWhole life insurance is reasonable in very limited circumstances. It's not good for you.\n\n> If the answer is yes for the last two questions, how do I talk my parents out of it?\n\nSorry, not our area of expertise. I have no clue."
User (pinkslipnation): "Hi everyone! Husband runs a marketing company that is incorporated in CA. He also picks up free lance writing gigs. 100% of his gigs to date have been willing to pay him through his corporation using an EIN rather than 1099 his SSN. I insisted on this because there was no way I was going to go through the hassle of the additional tax paperwork associated with 1099 work when we have a corporation that we can handle it all through instead. Over the years I have personally worked 1099 extensively, and it is a major PITA with the estimated withholdings and and tax payments and the different accounting and additional forms on the taxes. Since I did our taxes up until last year it was me suffering through the 1099 (rental and contract income--so much fun to have to do 1099 not one, but TWO different ways). I have PTSD over it frankly (three sources of W-2, two categorically different sources of 1099 and tuition reimburse 1089T will do that to you). \n\nHusband just got a new client. They insist that they only do 1099. Personally, I think the accounting person is not understanding that we simply want them to run it to the EIN and not his personal SS number, and probably is so low level they aren't allowed to authorize anything other than what they are told to do. \n\n1) Should we just fill out the W-9 using his name and the EIN (they kicked it back when we listed the company)?\n\n2) Why would they care? They aren't having to withhold taxes, deal with any different rules, and it costs them nothing. Maybe they think we just don't want them to report it at all? The total income from this client is likely going to be $200-$300, so way under the $600 reporting threshold. Given our income it will cost almost more in time for the accountant and taxes to deal with this additional bullshit, so I'm almost inclined to tell them to just not bother paying him :0\n\nAny advice? \n\nTL;DR can we provide EIN instead of SSN on the W-9 when someone 1099s us if we have a CA corporation? \n\nEdited to reference that this question is about filling out the W-9 form " Self: "You may find these links helpful:\n\n- [Tax Software Megathread](http://redd.it/41dew6)\n- [Taxes wiki page](https://www.reddit.com/r/personalfinance/wiki/taxes)\n- [Understanding tax brackets](https://www.reddit.com/r/personalfinance/wiki/taxes#wiki_eli5.3A_taxable_income.2C_tax_brackets.2C_marginal_tax_rates)\n- [W-4 IRS Withholding Calculator](http://www.irs.gov/Individuals/IRS-Withholding-Calculator)\n\nI am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/personalfinance) if you have any questions or concerns."
User (pinkslipnation): "Hi everyone! Husband runs a marketing company that is incorporated in CA. He also picks up free lance writing gigs. 100% of his gigs to date have been willing to pay him through his corporation using an EIN rather than 1099 his SSN. I insisted on this because there was no way I was going to go through the hassle of the additional tax paperwork associated with 1099 work when we have a corporation that we can handle it all through instead. Over the years I have personally worked 1099 extensively, and it is a major PITA with the estimated withholdings and and tax payments and the different accounting and additional forms on the taxes. Since I did our taxes up until last year it was me suffering through the 1099 (rental and contract income--so much fun to have to do 1099 not one, but TWO different ways). I have PTSD over it frankly (three sources of W-2, two categorically different sources of 1099 and tuition reimburse 1089T will do that to you). \n\nHusband just got a new client. They insist that they only do 1099. Personally, I think the accounting person is not understanding that we simply want them to run it to the EIN and not his personal SS number, and probably is so low level they aren't allowed to authorize anything other than what they are told to do. \n\n1) Should we just fill out the W-9 using his name and the EIN (they kicked it back when we listed the company)?\n\n2) Why would they care? They aren't having to withhold taxes, deal with any different rules, and it costs them nothing. Maybe they think we just don't want them to report it at all? The total income from this client is likely going to be $200-$300, so way under the $600 reporting threshold. Given our income it will cost almost more in time for the accountant and taxes to deal with this additional bullshit, so I'm almost inclined to tell them to just not bother paying him :0\n\nAny advice? \n\nTL;DR can we provide EIN instead of SSN on the W-9 when someone 1099s us if we have a CA corporation? \n\nEdited to reference that this question is about filling out the W-9 form " Self: "For $300 profit? Just ditch the client, if they're going to be that problematic at the start, they will only get worse. Back out and take a day off and relax."
User (pinkslipnation): "Hi everyone! Husband runs a marketing company that is incorporated in CA. He also picks up free lance writing gigs. 100% of his gigs to date have been willing to pay him through his corporation using an EIN rather than 1099 his SSN. I insisted on this because there was no way I was going to go through the hassle of the additional tax paperwork associated with 1099 work when we have a corporation that we can handle it all through instead. Over the years I have personally worked 1099 extensively, and it is a major PITA with the estimated withholdings and and tax payments and the different accounting and additional forms on the taxes. Since I did our taxes up until last year it was me suffering through the 1099 (rental and contract income--so much fun to have to do 1099 not one, but TWO different ways). I have PTSD over it frankly (three sources of W-2, two categorically different sources of 1099 and tuition reimburse 1089T will do that to you). \n\nHusband just got a new client. They insist that they only do 1099. Personally, I think the accounting person is not understanding that we simply want them to run it to the EIN and not his personal SS number, and probably is so low level they aren't allowed to authorize anything other than what they are told to do. \n\n1) Should we just fill out the W-9 using his name and the EIN (they kicked it back when we listed the company)?\n\n2) Why would they care? They aren't having to withhold taxes, deal with any different rules, and it costs them nothing. Maybe they think we just don't want them to report it at all? The total income from this client is likely going to be $200-$300, so way under the $600 reporting threshold. Given our income it will cost almost more in time for the accountant and taxes to deal with this additional bullshit, so I'm almost inclined to tell them to just not bother paying him :0\n\nAny advice? \n\nTL;DR can we provide EIN instead of SSN on the W-9 when someone 1099s us if we have a CA corporation? \n\nEdited to reference that this question is about filling out the W-9 form " Self: "Yes, you can fill out form W-9 as a corporation and provide the corporation's EIN. If the client want to issue a 1099 that should not be an issue for you."
User (pinkslipnation): "Hi everyone! Husband runs a marketing company that is incorporated in CA. He also picks up free lance writing gigs. 100% of his gigs to date have been willing to pay him through his corporation using an EIN rather than 1099 his SSN. I insisted on this because there was no way I was going to go through the hassle of the additional tax paperwork associated with 1099 work when we have a corporation that we can handle it all through instead. Over the years I have personally worked 1099 extensively, and it is a major PITA with the estimated withholdings and and tax payments and the different accounting and additional forms on the taxes. Since I did our taxes up until last year it was me suffering through the 1099 (rental and contract income--so much fun to have to do 1099 not one, but TWO different ways). I have PTSD over it frankly (three sources of W-2, two categorically different sources of 1099 and tuition reimburse 1089T will do that to you). \n\nHusband just got a new client. They insist that they only do 1099. Personally, I think the accounting person is not understanding that we simply want them to run it to the EIN and not his personal SS number, and probably is so low level they aren't allowed to authorize anything other than what they are told to do. \n\n1) Should we just fill out the W-9 using his name and the EIN (they kicked it back when we listed the company)?\n\n2) Why would they care? They aren't having to withhold taxes, deal with any different rules, and it costs them nothing. Maybe they think we just don't want them to report it at all? The total income from this client is likely going to be $200-$300, so way under the $600 reporting threshold. Given our income it will cost almost more in time for the accountant and taxes to deal with this additional bullshit, so I'm almost inclined to tell them to just not bother paying him :0\n\nAny advice? \n\nTL;DR can we provide EIN instead of SSN on the W-9 when someone 1099s us if we have a CA corporation? \n\nEdited to reference that this question is about filling out the W-9 form " Self: "Issue a proposal for the work with a pro forma invoice and have it processed via their accounts payable instead of contract labor? "
User (pinkslipnation): "Hi everyone! Husband runs a marketing company that is incorporated in CA. He also picks up free lance writing gigs. 100% of his gigs to date have been willing to pay him through his corporation using an EIN rather than 1099 his SSN. I insisted on this because there was no way I was going to go through the hassle of the additional tax paperwork associated with 1099 work when we have a corporation that we can handle it all through instead. Over the years I have personally worked 1099 extensively, and it is a major PITA with the estimated withholdings and and tax payments and the different accounting and additional forms on the taxes. Since I did our taxes up until last year it was me suffering through the 1099 (rental and contract income--so much fun to have to do 1099 not one, but TWO different ways). I have PTSD over it frankly (three sources of W-2, two categorically different sources of 1099 and tuition reimburse 1089T will do that to you). \n\nHusband just got a new client. They insist that they only do 1099. Personally, I think the accounting person is not understanding that we simply want them to run it to the EIN and not his personal SS number, and probably is so low level they aren't allowed to authorize anything other than what they are told to do. \n\n1) Should we just fill out the W-9 using his name and the EIN (they kicked it back when we listed the company)?\n\n2) Why would they care? They aren't having to withhold taxes, deal with any different rules, and it costs them nothing. Maybe they think we just don't want them to report it at all? The total income from this client is likely going to be $200-$300, so way under the $600 reporting threshold. Given our income it will cost almost more in time for the accountant and taxes to deal with this additional bullshit, so I'm almost inclined to tell them to just not bother paying him :0\n\nAny advice? \n\nTL;DR can we provide EIN instead of SSN on the W-9 when someone 1099s us if we have a CA corporation? \n\nEdited to reference that this question is about filling out the W-9 form " Self: "You seem confused. A 1099 is issued to at the end of the year to independent contractors / business entities. What alternative are you envisioning here?\n\n> I have PTSD over it frankly (three sources of W-2, two categorically different sources of 1099 and tuition reimburse 1089T will do that to you).\n\nThen spend the $500 or so on a CPA and make it their problem. " User (pinkslipnation): "This is why I edited to clarify that my question is in regards to filling out the W-9. I understand that the EMPLOYER or the person receiving services sends the 1099. My question is specifically if the employer sends a W-9 can I put my husbands name instead of the business, but the EIN and not the SSN? This would seem to satisfy the employer's concern that they want to clearly mark my husband as an independent contractor and they don't want to deal with his business, but why should he have to take this as 1099 and not simply run it to his business? What is to stop him from signing the check over and depositing it to his business? \n\nAlso, I already spend $450 a year on a CPA. I'm trying to avoid spending $550 on a CPA because I dumped a bunch of extra piddly ass 1099 forms on him that he normally doesn't deal with :) " Self: "I have a W-9 with my EIN filled out and ready to give to any client who requests one. It's easier that way. \n\nThis is a standard thing; unless you're trying to evade taxes, there's no harm in it. " User (pinkslipnation): "Not trying to evade taxes. Just want to do the accounting through our company and not through the personal. " Self: "Then… use the company's info on the W9? This is how every other vendor does things. "
User (spencerworth): "My brothers and I have $50, 000 and we would like to know how best to invest our money. Currently we're thinking real estate ownership but we are open to everything. We really appreciate any advice." Self: "Do you currently have any money in a savings account as an emergency fund that you can use for medical bills or car repairs if something bad happens?\n\nDo you have any debt like auto loans, student loans, or credit cards?" User (spencerworth): "Student loans totalling ~$30,000 and part of the $50,000 is in a savings account but that's it."
User (spencerworth): "My brothers and I have $50, 000 and we would like to know how best to invest our money. Currently we're thinking real estate ownership but we are open to everything. We really appreciate any advice." Self: "My advice would be to pay off the student loans. It's best to eliminate debt first before considering investing."
User (kl0ney): "Not sure if this is where this goes. \n\nMy parents were looking to put up a fence and were recommended a guy that had put up all the fences in the neighborhood.\n\nThey talked to him and got a quote several months back and called him up about 2 weeks ago to get on with it. A couple days later he calls back and offers a discount. My parents accept and pay a $600 down payment and agree to pay the remaining $1600 when the project is completed. They have a quote and "receipt" from the guy and it looks decently legit. He says he'll come out first thing Monday morning (Monday this week) and get started. \n\nMonday comes and goes and no fence guy. We call him to check everything out and his phone is disconnected. We give a few days on account of rain and possible emergency etc. We decide to call the builder (guy that recommended and built all of the houses in the neighborhood) and he says he'll go over to his house. Apparently the fence guy has completely disappeared. House empty, phone disconnected, and no appearances. Fence guy has also borrowed $1000 from the developer (not builder).\n\nWhat are our options? I figure we'll have to file a police report but will it do any good?\n\ntl;dr: Guy takes deposit for building a fence and ghosts. What are options?\n\nEdit: words, grammar\n\n" Self: "While your parents are likely out for that money, reporting the guy might help track him down. The developer is also out $1k, possible there is a much larger scam happening. Local news may follow up on the story, help move along the investigation."
User (kl0ney): "Not sure if this is where this goes. \n\nMy parents were looking to put up a fence and were recommended a guy that had put up all the fences in the neighborhood.\n\nThey talked to him and got a quote several months back and called him up about 2 weeks ago to get on with it. A couple days later he calls back and offers a discount. My parents accept and pay a $600 down payment and agree to pay the remaining $1600 when the project is completed. They have a quote and "receipt" from the guy and it looks decently legit. He says he'll come out first thing Monday morning (Monday this week) and get started. \n\nMonday comes and goes and no fence guy. We call him to check everything out and his phone is disconnected. We give a few days on account of rain and possible emergency etc. We decide to call the builder (guy that recommended and built all of the houses in the neighborhood) and he says he'll go over to his house. Apparently the fence guy has completely disappeared. House empty, phone disconnected, and no appearances. Fence guy has also borrowed $1000 from the developer (not builder).\n\nWhat are our options? I figure we'll have to file a police report but will it do any good?\n\ntl;dr: Guy takes deposit for building a fence and ghosts. What are options?\n\nEdit: words, grammar\n\n" Self: "Your parents can reduce their loss by claiming a "theft loss" deduction on their income taxes using IRS Form 4684.\n\nYou may want to make a police report to support this claim in case of an audit." splat313 (splat313): "To claim a theft loss you have to take the value of the loss ($600), subtract $100, and then subtract 10% of your adjusted gross income and you can deduct what is left over.\n\nThey'd have to be making peanuts (less than $5000) to be able to deduct anything."
User (kl0ney): "Not sure if this is where this goes. \n\nMy parents were looking to put up a fence and were recommended a guy that had put up all the fences in the neighborhood.\n\nThey talked to him and got a quote several months back and called him up about 2 weeks ago to get on with it. A couple days later he calls back and offers a discount. My parents accept and pay a $600 down payment and agree to pay the remaining $1600 when the project is completed. They have a quote and "receipt" from the guy and it looks decently legit. He says he'll come out first thing Monday morning (Monday this week) and get started. \n\nMonday comes and goes and no fence guy. We call him to check everything out and his phone is disconnected. We give a few days on account of rain and possible emergency etc. We decide to call the builder (guy that recommended and built all of the houses in the neighborhood) and he says he'll go over to his house. Apparently the fence guy has completely disappeared. House empty, phone disconnected, and no appearances. Fence guy has also borrowed $1000 from the developer (not builder).\n\nWhat are our options? I figure we'll have to file a police report but will it do any good?\n\ntl;dr: Guy takes deposit for building a fence and ghosts. What are options?\n\nEdit: words, grammar\n\n" Self: "Pretty much nothing you can do. That is a risk you take to do business. You could obviously do more if the cash value was higher." User (kl0ney): "So businesses can literally just fuck people over without consequences?" Self: "If it is someone you can find then sure, sue them."
User (kl0ney): "Not sure if this is where this goes. \n\nMy parents were looking to put up a fence and were recommended a guy that had put up all the fences in the neighborhood.\n\nThey talked to him and got a quote several months back and called him up about 2 weeks ago to get on with it. A couple days later he calls back and offers a discount. My parents accept and pay a $600 down payment and agree to pay the remaining $1600 when the project is completed. They have a quote and "receipt" from the guy and it looks decently legit. He says he'll come out first thing Monday morning (Monday this week) and get started. \n\nMonday comes and goes and no fence guy. We call him to check everything out and his phone is disconnected. We give a few days on account of rain and possible emergency etc. We decide to call the builder (guy that recommended and built all of the houses in the neighborhood) and he says he'll go over to his house. Apparently the fence guy has completely disappeared. House empty, phone disconnected, and no appearances. Fence guy has also borrowed $1000 from the developer (not builder).\n\nWhat are our options? I figure we'll have to file a police report but will it do any good?\n\ntl;dr: Guy takes deposit for building a fence and ghosts. What are options?\n\nEdit: words, grammar\n\n" Self: "Honestly that money's probably just gone man... It's shitty but what're you gonna do? Don't give people money in advance for stuff." User (kl0ney): "You can't not give them money for building a fence for you. You have to pay so they'll even start working on it. " Self: "You should certainly pay them when they've provided you with a good/service. Just not before that happens." speedoflife1 (speedoflife1): "Ive had a lot of issues with contractors not working unless you pay for materials first which couldve been what happened here. Very frustrating and gotta be super careful to not get scammed. "
User (kl0ney): "Not sure if this is where this goes. \n\nMy parents were looking to put up a fence and were recommended a guy that had put up all the fences in the neighborhood.\n\nThey talked to him and got a quote several months back and called him up about 2 weeks ago to get on with it. A couple days later he calls back and offers a discount. My parents accept and pay a $600 down payment and agree to pay the remaining $1600 when the project is completed. They have a quote and "receipt" from the guy and it looks decently legit. He says he'll come out first thing Monday morning (Monday this week) and get started. \n\nMonday comes and goes and no fence guy. We call him to check everything out and his phone is disconnected. We give a few days on account of rain and possible emergency etc. We decide to call the builder (guy that recommended and built all of the houses in the neighborhood) and he says he'll go over to his house. Apparently the fence guy has completely disappeared. House empty, phone disconnected, and no appearances. Fence guy has also borrowed $1000 from the developer (not builder).\n\nWhat are our options? I figure we'll have to file a police report but will it do any good?\n\ntl;dr: Guy takes deposit for building a fence and ghosts. What are options?\n\nEdit: words, grammar\n\n" Self: "Well you should really take it up with that guy that recommended this guy. He might even be in on the whole scam. " User (kl0ney): "I don't think it's a big scam. We just happened to be the ones that he took money from and left town. He's done a lot of work in our neighborhood so there was no reason to not trust him. "
User (SherlockHoles): "I'm 17 yo and my 18th birthday is a few months from now, my parents have made clear that they want me out of the house by then, I've been working on various things to get money (a restaurant, music classes and playing at cafes) since August, and i have a 100% scholarship on my university( which i intend to mantain) but i don't really have a good plan of action. I would really appreciate any advice on managing my income while living on my own so young. \nThanks\n\nEdit: Added some information" Self: "They can't wait until you go to college like normal parents?? \n\nIf not, is there a friend you can bunk with until you leave for school? That's probably your best option, as most apartment complexes won't rent to a teen without an adult co-consign. And you have no renters insurance. \n\nOr maybe you can take some summer classes to get on campus earlier? Are you living on campus? \n\nAnd dude, drop some jobs. If you have a full ride, you definitely don't need to spend all of your time working 3 jobs. Keep your favorite/highest paying, and leave the others. College is fun, and you need to experience it!" User (SherlockHoles): "I should say I'm not from the US, here you are legally an adult at 18, I'm already at university, you can't live inside campus like in the US and the three jobs are not so heavy, (Cafes are mostly on weekends at night, Teaching is Mondays and Tuesdays, Restaurant every other day except for Sunday )" Self: "Oh well, in that case. \n\nFind a roommate. Find a decently price apartment, and budget. \n\nSit down and calculate what your monthly expenses will be, and how much money you bring home. Any extra income should go towards paying off debt if you have it, or a savings account. "
User (SherlockHoles): "I'm 17 yo and my 18th birthday is a few months from now, my parents have made clear that they want me out of the house by then, I've been working on various things to get money (a restaurant, music classes and playing at cafes) since August, and i have a 100% scholarship on my university( which i intend to mantain) but i don't really have a good plan of action. I would really appreciate any advice on managing my income while living on my own so young. \nThanks\n\nEdit: Added some information" Self: "Like others have said, you should plan what your expenses will look like.\n\nIn my experience, I found I was terrible at planning my expenses until I really started tracking my spending and then was able to see what I'm spending on.\n\nThere's many phone apps that can either pull your finances directly from your various accounts, or in my case I'm using an app called Money Lover which I manually enter everything I spend. (I don't necessarily recommend that app, there's some things I don't like, but I started with it so am stuck with it essentially)\n\nIn any case, planning is the most important. The 100% scholarship is a good start, but you'll have other stuff you'll need to cover that the scholarship won't.\n\nIf you're making income during school I'd say at least go into school with 3-6 months of projected expenses saved up. If you're not making income during school - you'll either want to get a student loan set up or enough money saved for all your expenses until school is totally done.\n\nFind out exactly what the student loan covers and if it covers any extra living expenses as well, because that's a huge factor."
User (SherlockHoles): "I'm 17 yo and my 18th birthday is a few months from now, my parents have made clear that they want me out of the house by then, I've been working on various things to get money (a restaurant, music classes and playing at cafes) since August, and i have a 100% scholarship on my university( which i intend to mantain) but i don't really have a good plan of action. I would really appreciate any advice on managing my income while living on my own so young. \nThanks\n\nEdit: Added some information" Self: "Check out the wiki pages of this subreddit (right hand column). \n\nTrack your spending, probably with an app. I believe YNAB is still free when you're a student, if so it can be a good method.\n\nLearn a lot about preparing meals/cooking.\n\nAlso about cleaning and washing your clothes. \n\n"
User (BuyOrNot): "\ntl;dr: What do I do, $1100 mortgage towards a condo that I won’t live at for 8+ months out of the year, or putting $1100 a month into a 401k? Want to find a relatively safe medium to store/invest my money for at least 5 years.\n\nBasics:\n\n- 50k in a savings account\n- 70k salary\n- Only debt is on a car, it’ll be paid off in roughly 3 years (about 13k left on a 3.3% interest rate)\n- Owns no properties.\n- Single, no children\n- Company maxes out at 4.5% towards a 401K if I contribute 6% or higher.\n- I live in Washington state.\n- If I’m buying a condo, mortgage is around $1100/mo.\n\nMy situation:\n\nI’ve recently accepted an job that requires me to travel most months out of the year, sometimes internationally, mostly on short notice. At minimum 8 months per year, at maximum 10 months a year. While I’m on the road, all lodging and traveling expenses are paid by the company and I get a per diem for food. I was looking to buy a condo as an asset to hold my money, but after talking it over with friends and family, I’ve been wondering if I should just put the potential payment for a mortgage into my 401k instead, and the down payment on different investments.\n\nI was looking at the $170k-220k range for a condo (hence why the savings didn’t go to the car, I was saving for a 20% down payment). My credit score isn’t terrific, and the bank would only pre-qualify me with a 4% interest rate. Now, I realized that I’ll essentially be paying anywhere from $1000-$1200/mo in mortgage payments to a place that I won’t live in most of the year, and on top of that I’ll have to worry about HOAs, utilities, and whatever other forms of regular payments that will not go towards the equity on my property.\n\nSo now I’m Googling different investment ideas and I’m reading through them slowly, and wondering if I’m better off just putting the money into some kind of account(s), and then live in short term rentals (AirBnBs type of places) or hotels for the few weeks/months that I’m “home”. Looking at AirBnB properties within commuting distance to our office that I can immediately move into, I’m looking at $700-800/mo for rent. Also I’m only looking at AirBnB properties with a kitchen so I don’t have to eat out, and whatever other utilities that would save me trips to the laundromat or something.\n\nI would at least do 6% into a 401k to get my employer’s match, regardless of what I do with my living situation. Since there’s a limit on 401k, I’m assuming I should just divide the remaining 50k into different investment accounts right? After maxing out the 18k/year on the 401k of course. Would that be better off than 20% down on say, a $200k condo and then pay payments each month? ($1109 /mo for 15 years) . While I’m at it, should I just clear out the loan on the car?\n\nGoal/purpose: I don’t really know? Originally I was just wanting to put equity into something that will hold/increase in value while I’m working for at least the next 5 years. I figure putting it into a property has got to be better than just a savings account right? At least it’s better than paying rent. I’m not looking to settle down any time soon, but I’m not going to exclude that possibility after 5 years. I’m also not looking to invest more than whatever the 50k + 1100/mo does. \n\nSo should I try to own a property or invest my money?" Self: "You may find these links helpful:\n\n- [401(k) Fund Selection Guide](http://www.reddit.com/r/personalfinance/wiki/401k_funds)\n- [401(k) FAQs](http://www.reddit.com/r/personalfinance/wiki/401k)\n- ["How to handle $"](http://www.reddit.com/r/personalfinance/wiki/commontopics)\n\nI am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/personalfinance) if you have any questions or concerns."
User (BuyOrNot): "\ntl;dr: What do I do, $1100 mortgage towards a condo that I won’t live at for 8+ months out of the year, or putting $1100 a month into a 401k? Want to find a relatively safe medium to store/invest my money for at least 5 years.\n\nBasics:\n\n- 50k in a savings account\n- 70k salary\n- Only debt is on a car, it’ll be paid off in roughly 3 years (about 13k left on a 3.3% interest rate)\n- Owns no properties.\n- Single, no children\n- Company maxes out at 4.5% towards a 401K if I contribute 6% or higher.\n- I live in Washington state.\n- If I’m buying a condo, mortgage is around $1100/mo.\n\nMy situation:\n\nI’ve recently accepted an job that requires me to travel most months out of the year, sometimes internationally, mostly on short notice. At minimum 8 months per year, at maximum 10 months a year. While I’m on the road, all lodging and traveling expenses are paid by the company and I get a per diem for food. I was looking to buy a condo as an asset to hold my money, but after talking it over with friends and family, I’ve been wondering if I should just put the potential payment for a mortgage into my 401k instead, and the down payment on different investments.\n\nI was looking at the $170k-220k range for a condo (hence why the savings didn’t go to the car, I was saving for a 20% down payment). My credit score isn’t terrific, and the bank would only pre-qualify me with a 4% interest rate. Now, I realized that I’ll essentially be paying anywhere from $1000-$1200/mo in mortgage payments to a place that I won’t live in most of the year, and on top of that I’ll have to worry about HOAs, utilities, and whatever other forms of regular payments that will not go towards the equity on my property.\n\nSo now I’m Googling different investment ideas and I’m reading through them slowly, and wondering if I’m better off just putting the money into some kind of account(s), and then live in short term rentals (AirBnBs type of places) or hotels for the few weeks/months that I’m “home”. Looking at AirBnB properties within commuting distance to our office that I can immediately move into, I’m looking at $700-800/mo for rent. Also I’m only looking at AirBnB properties with a kitchen so I don’t have to eat out, and whatever other utilities that would save me trips to the laundromat or something.\n\nI would at least do 6% into a 401k to get my employer’s match, regardless of what I do with my living situation. Since there’s a limit on 401k, I’m assuming I should just divide the remaining 50k into different investment accounts right? After maxing out the 18k/year on the 401k of course. Would that be better off than 20% down on say, a $200k condo and then pay payments each month? ($1109 /mo for 15 years) . While I’m at it, should I just clear out the loan on the car?\n\nGoal/purpose: I don’t really know? Originally I was just wanting to put equity into something that will hold/increase in value while I’m working for at least the next 5 years. I figure putting it into a property has got to be better than just a savings account right? At least it’s better than paying rent. I’m not looking to settle down any time soon, but I’m not going to exclude that possibility after 5 years. I’m also not looking to invest more than whatever the 50k + 1100/mo does. \n\nSo should I try to own a property or invest my money?" Self: "I would not buy the condo. I would do the following:\n\n1. Set aside six months of living expenses as an emergency fund.\n\n2. Pay off the car loan in full.\n\n3. Max your 410k up to the employer match.\n\n4. Open a ROTH IRA and contribute the annual maximum.\n\n5. Open a high-interest savings account and fund it with money intended for your eventual mortgage down payment.\n\n6. If there's money left over, either contribute more to your 401k, or open a brokerage account and put money in here that you don't need to touch for at least 10 years but don't want tied up in a retirement account.\n\nLastly, I would encourage you to consider a single family home instead of a condo if you want to make a real estate investment, but that's a personal choice."
User (BuyOrNot): "\ntl;dr: What do I do, $1100 mortgage towards a condo that I won’t live at for 8+ months out of the year, or putting $1100 a month into a 401k? Want to find a relatively safe medium to store/invest my money for at least 5 years.\n\nBasics:\n\n- 50k in a savings account\n- 70k salary\n- Only debt is on a car, it’ll be paid off in roughly 3 years (about 13k left on a 3.3% interest rate)\n- Owns no properties.\n- Single, no children\n- Company maxes out at 4.5% towards a 401K if I contribute 6% or higher.\n- I live in Washington state.\n- If I’m buying a condo, mortgage is around $1100/mo.\n\nMy situation:\n\nI’ve recently accepted an job that requires me to travel most months out of the year, sometimes internationally, mostly on short notice. At minimum 8 months per year, at maximum 10 months a year. While I’m on the road, all lodging and traveling expenses are paid by the company and I get a per diem for food. I was looking to buy a condo as an asset to hold my money, but after talking it over with friends and family, I’ve been wondering if I should just put the potential payment for a mortgage into my 401k instead, and the down payment on different investments.\n\nI was looking at the $170k-220k range for a condo (hence why the savings didn’t go to the car, I was saving for a 20% down payment). My credit score isn’t terrific, and the bank would only pre-qualify me with a 4% interest rate. Now, I realized that I’ll essentially be paying anywhere from $1000-$1200/mo in mortgage payments to a place that I won’t live in most of the year, and on top of that I’ll have to worry about HOAs, utilities, and whatever other forms of regular payments that will not go towards the equity on my property.\n\nSo now I’m Googling different investment ideas and I’m reading through them slowly, and wondering if I’m better off just putting the money into some kind of account(s), and then live in short term rentals (AirBnBs type of places) or hotels for the few weeks/months that I’m “home”. Looking at AirBnB properties within commuting distance to our office that I can immediately move into, I’m looking at $700-800/mo for rent. Also I’m only looking at AirBnB properties with a kitchen so I don’t have to eat out, and whatever other utilities that would save me trips to the laundromat or something.\n\nI would at least do 6% into a 401k to get my employer’s match, regardless of what I do with my living situation. Since there’s a limit on 401k, I’m assuming I should just divide the remaining 50k into different investment accounts right? After maxing out the 18k/year on the 401k of course. Would that be better off than 20% down on say, a $200k condo and then pay payments each month? ($1109 /mo for 15 years) . While I’m at it, should I just clear out the loan on the car?\n\nGoal/purpose: I don’t really know? Originally I was just wanting to put equity into something that will hold/increase in value while I’m working for at least the next 5 years. I figure putting it into a property has got to be better than just a savings account right? At least it’s better than paying rent. I’m not looking to settle down any time soon, but I’m not going to exclude that possibility after 5 years. I’m also not looking to invest more than whatever the 50k + 1100/mo does. \n\nSo should I try to own a property or invest my money?" Self: "Save your money. Live in an extended stay hotel when you're home, or be someone's ideal roommate. Either way you don't have to worry about upkeep and you can save a shit ton of money."
User (x2ndCitySaint): "Hi. My Capital One credit card was information was stolen so naturally I called up Capital One, reported fraud, and they sent me a replacement card through the mail. Before my card arrives I been checking my account online just to be safe and the charges made on my card has been dropped (thank god) but it still say I have no available credit. I figured I'll have credit on my account by the time my card arrived but that is not the case. It been almost two weeks since I reported it stolen and I'm just wondering do it normally take this long and or should I call Capital One about this? Thanks in advance. \n\nEdit: Yes I know the obvious answer is to call them I'm not an idiot. Their is a reason why many people use Reddit instead of Google, it isn't about getting the answer to the question but more for other people to share their experience. I was mostly looking to see has other people had this problem. " Self: "just call them, they will either put the credit on or tell you why its not there. "
User (x2ndCitySaint): "Hi. My Capital One credit card was information was stolen so naturally I called up Capital One, reported fraud, and they sent me a replacement card through the mail. Before my card arrives I been checking my account online just to be safe and the charges made on my card has been dropped (thank god) but it still say I have no available credit. I figured I'll have credit on my account by the time my card arrived but that is not the case. It been almost two weeks since I reported it stolen and I'm just wondering do it normally take this long and or should I call Capital One about this? Thanks in advance. \n\nEdit: Yes I know the obvious answer is to call them I'm not an idiot. Their is a reason why many people use Reddit instead of Google, it isn't about getting the answer to the question but more for other people to share their experience. I was mostly looking to see has other people had this problem. " Self: "Call them, obviously. I don't know understand people come to Reddit with questions like this." User (x2ndCitySaint): "I was trying to avoid that horrible automatic voice messaging system." kayoss_ (kayoss_): "Just click 0 until you get to a human being. Or try their online chat. I found them to be quite pleasant and prompt."
User (x2ndCitySaint): "Hi. My Capital One credit card was information was stolen so naturally I called up Capital One, reported fraud, and they sent me a replacement card through the mail. Before my card arrives I been checking my account online just to be safe and the charges made on my card has been dropped (thank god) but it still say I have no available credit. I figured I'll have credit on my account by the time my card arrived but that is not the case. It been almost two weeks since I reported it stolen and I'm just wondering do it normally take this long and or should I call Capital One about this? Thanks in advance. \n\nEdit: Yes I know the obvious answer is to call them I'm not an idiot. Their is a reason why many people use Reddit instead of Google, it isn't about getting the answer to the question but more for other people to share their experience. I was mostly looking to see has other people had this problem. " Self: "Call them, obviously. I don't know understand people come to Reddit with questions like this." User (x2ndCitySaint): "I was trying to avoid that horrible automatic voice messaging system." alhoo (alhoo): "Yeah what? Capital One has great customer service."
User (x2ndCitySaint): "Hi. My Capital One credit card was information was stolen so naturally I called up Capital One, reported fraud, and they sent me a replacement card through the mail. Before my card arrives I been checking my account online just to be safe and the charges made on my card has been dropped (thank god) but it still say I have no available credit. I figured I'll have credit on my account by the time my card arrived but that is not the case. It been almost two weeks since I reported it stolen and I'm just wondering do it normally take this long and or should I call Capital One about this? Thanks in advance. \n\nEdit: Yes I know the obvious answer is to call them I'm not an idiot. Their is a reason why many people use Reddit instead of Google, it isn't about getting the answer to the question but more for other people to share their experience. I was mostly looking to see has other people had this problem. " Self: "Call them, obviously. I don't know understand people come to Reddit with questions like this." User (x2ndCitySaint): "I was trying to avoid that horrible automatic voice messaging system." downvotes_puffins (downvotes_puffins): "Oh, that's great, just let tens of thousands of Reddit users deal with your question. But definitely easier for you.\n" User (x2ndCitySaint): "Yes because I'm forcing you guys to answer this question. " HiTechObsessed (HiTechObsessed): "The point here is you would already have an answer. As we are not Capital One, how would anyone here be able to help you? This situation isn't about recommendations or advice or anything. "
User (brannpop): "Hello, \n\nMy wife and I are purchasing a house from my parents for $700k. They are giving us a gift of equity of $160K and we are adding $60k to make the full 20% down payment. \n\nMy parents purchased the house in 1973 for $110K so their gains are $590K. They'll use their $250K capital gains exclusion but does that leave them on the hook for capital gains taxes on the $90K or does the gift equity reduce their basis since they're not actually getting $700K; they're getting $480K?\n\nIf not, since they're retired and live off of social security, I understand they might not have to pay any capital gains at all but I also understand that they might get taxed on their social security income? If true, any idea where I can find out at what rate that would be taxed? \n\nAny feedback would be appreciated. Thanks!" Self: "They get $500K tax-free gain as a couple if this was their principal residence, or was recently.\n\nWhy are they getting $480K if they are selling it for $700K? The usual way that a gift of equity works is that they are selling you a $700K house for $540K. In that case, they are not selling for $700K, but for $540K.\n\n\n\n\n\n"
User (brannpop): "Hello, \n\nMy wife and I are purchasing a house from my parents for $700k. They are giving us a gift of equity of $160K and we are adding $60k to make the full 20% down payment. \n\nMy parents purchased the house in 1973 for $110K so their gains are $590K. They'll use their $250K capital gains exclusion but does that leave them on the hook for capital gains taxes on the $90K or does the gift equity reduce their basis since they're not actually getting $700K; they're getting $480K?\n\nIf not, since they're retired and live off of social security, I understand they might not have to pay any capital gains at all but I also understand that they might get taxed on their social security income? If true, any idea where I can find out at what rate that would be taxed? \n\nAny feedback would be appreciated. Thanks!" Self: "https://www.law.cornell.edu/cfr/text/26/1.1001-1\n\n>(e) Transfers in part a sale and in part a gift.\n\n>(1) Where a transfer of property is in part a sale and in part a gift, the transferor has a gain to the extent that the amount realized by him exceeds his adjusted basis in the property. However, no loss is sustained on such a transfer if the amount realized is less than the adjusted basis. For the determination of basis of property in the hands of the transferee, see § 1.1015-4. For the allocation of the adjusted basis of property in the case of a bargain sale to a charitable organization, see § 1.1011-2.\n\n>(2) Examples. The provisions of subparagraph (1) may be illustrated by the following examples:\n\n>Example 1.\n\n>A transfers property to his son for $60,000. Such property in the hands of A has an adjusted basis of $30,000 (and a fair market value of $90,000). A's gain is $30,000, the excess of $60,000, the amount realized, over the adjusted basis, $30,000. He has made a gift of $30,000, the excess of $90,000, the fair market value, over the amount realized, $60,000.\n\n----\n\n\nMy interpretation of the above in your situation is that with a gift of equity of 160K, the sale price of the house is 540K, not 700K: they are selling it at under fair market value. If the cost basis is 110K and the sale price is 540K, their realized gain is 430K and their gift is 160K. Since 430K < 500K, if they've lived in the property as a main residence for 2 out of the last 5 years, all of that capital gain is excluded. The gift of 160K they record on a Form 709 and it reduces their lifetime estate/gift tax exemption of $10.9 million. \n\n---\n\nAs far as I can tell, the unadjusted basis for you after this transaction would be 540K. See below.\n\nhttps://www.law.cornell.edu/cfr/text/26/1.1015-4\n\n>§ 1.1015-4 Transfers in part a gift and in part a sale.\n(a) General rule. Where a transfer of property is in part a sale and in part a gift, the unadjusted basis of the property in the hands of the transferee is the sum of -\n\n>(1) Whichever of the following is the greater:\n\n>(i) The amount paid by the transferee for the property, or\n\n>(ii) The transferor's adjusted basis for the property at the time of the transfer, and\n\n>(2) The amount of increase, if any, in basis authorized by section 1015(d) for gift tax paid (see § 1.1015-5).\n\n>(b) Examples. The rule of paragraph (a) of this section is illustrated by the following examples: ...\n\n>Example 2.\n\n>If A transfers property to his son for $60,000, and such property at the time of transfer has an adjusted basis of $30,000 in A's hands (and a fair market value of $90,000), the unadjusted basis of such property in the hands of the son is $60,000.\n\nIn your case, transfer for 540K, adjusted basis of 110K, fair market value of 700K, the unadjusted basis would be 540K because it is greater than 110K.\n\n---\n\nYou should ask over in r/tax. There might be other ways of structuring this sale, and I may not have understood your original post details correctly."
User (brannpop): "Hello, \n\nMy wife and I are purchasing a house from my parents for $700k. They are giving us a gift of equity of $160K and we are adding $60k to make the full 20% down payment. \n\nMy parents purchased the house in 1973 for $110K so their gains are $590K. They'll use their $250K capital gains exclusion but does that leave them on the hook for capital gains taxes on the $90K or does the gift equity reduce their basis since they're not actually getting $700K; they're getting $480K?\n\nIf not, since they're retired and live off of social security, I understand they might not have to pay any capital gains at all but I also understand that they might get taxed on their social security income? If true, any idea where I can find out at what rate that would be taxed? \n\nAny feedback would be appreciated. Thanks!" Self: "It is 500K for them, but also they should count improvements they put in over the years, roof, floors, repairs, and all of the above help their basis! I see no reason they shouldn't be able to say there basis is 200K, so then the other 500K is tax free. "
User (avo005): "Hello All! I'm sorry if this isn't the correct place to ask for advice but here it goes. Basically, I worked on Thanksgiving night and like normal, we clock in we clock out. However this particular day, I received an error on the screen which allows me to clock in and such (With the presence of a Manager), telling me that I clicked to go ON my break by accident... oops^sorry^haha .. Another Manager(District) walks in and just says "Don't worry we'll clear it for ya". Then they directed me to finish clocking in, GREAT! \nI take my battle post as the shoppers breach the gates! DING! Looks like its time for my break, I go on my break and come back then eventually clocking OUT! I get home exhausted, and I check my time sheet, and I realize that I only received 1.58hrs of clock in work (Scheduled for 5.5hrs, and keep in mind they kept me there for an extra 40 minutes due to the rush no big deal, so lets make that 5.5hrs PLUS .40 OT). Thinking it will be fixed later, I sleep I work tomorrow anyways! I then tell my manager about the error and she says "Oh don't worry, we'll fix it for you" Great! HAH SIKE .... a week later I received my paycheck and receiving... 1.58hrs of pay. Now missing approx 70$ is a lot for a college student like me (and 40 minutes of OT , on top of those hours being 1.5x since Holiday Pay) I asked the manager TWICE already (two different ones to make sure they know since they talk about shifts between one another) Nothing has changed... Now I can always just rinse and repeat but I'm afraid that this will occur again since my cry for clarification was unheard, also the shift has PAST so I'm not totally sure how that would even work if holiday pay is over... Help please! Let me know if any clarification is needed or to reword something :)!\n\nTL;DR . I was bamboozled out of 70 dollars even though I cried "PLEASE FIX MY TIME SHEET MY RAMEN DEPENDS ON IT" to my Superiors :O" Self: "If they are refusing to do anything about it threaten to report them" User (avo005): "I was thinking that too, contact the corporation or something, but I wouldn't want it to go that far as this is a first time deal (Hopefully). "
User (avo005): "Hello All! I'm sorry if this isn't the correct place to ask for advice but here it goes. Basically, I worked on Thanksgiving night and like normal, we clock in we clock out. However this particular day, I received an error on the screen which allows me to clock in and such (With the presence of a Manager), telling me that I clicked to go ON my break by accident... oops^sorry^haha .. Another Manager(District) walks in and just says "Don't worry we'll clear it for ya". Then they directed me to finish clocking in, GREAT! \nI take my battle post as the shoppers breach the gates! DING! Looks like its time for my break, I go on my break and come back then eventually clocking OUT! I get home exhausted, and I check my time sheet, and I realize that I only received 1.58hrs of clock in work (Scheduled for 5.5hrs, and keep in mind they kept me there for an extra 40 minutes due to the rush no big deal, so lets make that 5.5hrs PLUS .40 OT). Thinking it will be fixed later, I sleep I work tomorrow anyways! I then tell my manager about the error and she says "Oh don't worry, we'll fix it for you" Great! HAH SIKE .... a week later I received my paycheck and receiving... 1.58hrs of pay. Now missing approx 70$ is a lot for a college student like me (and 40 minutes of OT , on top of those hours being 1.5x since Holiday Pay) I asked the manager TWICE already (two different ones to make sure they know since they talk about shifts between one another) Nothing has changed... Now I can always just rinse and repeat but I'm afraid that this will occur again since my cry for clarification was unheard, also the shift has PAST so I'm not totally sure how that would even work if holiday pay is over... Help please! Let me know if any clarification is needed or to reword something :)!\n\nTL;DR . I was bamboozled out of 70 dollars even though I cried "PLEASE FIX MY TIME SHEET MY RAMEN DEPENDS ON IT" to my Superiors :O" Self: "If you have such entity as HR, go talk with him/her. Most of my timesheets/tms go through them anyways and they might see something is up, especially if they use future planer for rostering people. " larryote (larryote): "I agree with Dave_Whitinsky. I would speak with HR immediately instead of your superiors. HR are responsible for processing timesheets and they also process paychecks at least where I work. \n\nI would tell HR that you made an error punching in and that your hours for that day was not correct. Also bring in your pay stub and more than likely they will compensate your $70 on your next paycheck." User (avo005): "Thanks for the advice! Although I do not have an HR, I believe that I do have a manager that does handle the timesheets and such so I will discuss this matter to her/him! "
User (XM855LC1AC1): "Background:\n\n30 years old, single, no kids. 2.5 years ago I started a business with a $2,000 purchase on a credit card. The business grew exponentially and my yearly sales for 2016 will be about 3,750,000 with 1.1 million in gross profit. My net will be around 450-500k, maybe a bit more. Net in 2015 was 300k.\n\nUp until I few months ago I have been reinvesting nearly every dollar into building inventory and building the business. My inventory stock is now pretty much at max (~800k) without opening another store. I owe about 125k on that inventory.\n\nThe business pays all of my expenses (housing, vehicle, etc). Recently purchased a 315k house with 7k down at 3.25% fixed rate. House is a duplex so I am going to rent out a portion of it. I've started paying myself a salary (beyond my expenses) of $3125 per week, or $12.5k a month. Currently have ~70k in savings, and about 45k in business checking. 11k in A/R and ~100k in other assets that could easily be converted to cash.\n\nI owe ~300k on the house, ~50k on my company truck, and ~125k on my inventory (turns fast, re-ordering all the time).\n\nApparently I am pretty good at business, but wealth management is new territory for me. Not really sure what I should be doing with my excess cash. Most is sitting in a savings account earning 1% (very little). The real wealth thus far is in the inventory that has taken me two years to build up. Now that part is nearly complete, I'm in a good position to stack cash all throughout 2017. Unless I decide to open another location then I'll need another ~400k in additional inventory + all the expenses of a new store. More locations = more work = more money. \n\nI don't really have any investments other than $3500 in a rollover IRA from an old 401k. It's through Fidelity but I've pretty much ignored it the last 4 years. Think it's made 100 bucks. \n\nMy goal is to retire at 45 with 5 million. What should I be doing? Presently I can save 150k a year (after tax) and not have the business feel a strain. Now that my inventory is nearly paid for and at an adequate level, this number will significantly increase throughout 2017. Just feel like there is something more I should be doing. \n\n\n\n" Self: "Cd accounts with high interest, buy stocks, open a payday loan business, BUY AN ATM!!!"
User (XM855LC1AC1): "Background:\n\n30 years old, single, no kids. 2.5 years ago I started a business with a $2,000 purchase on a credit card. The business grew exponentially and my yearly sales for 2016 will be about 3,750,000 with 1.1 million in gross profit. My net will be around 450-500k, maybe a bit more. Net in 2015 was 300k.\n\nUp until I few months ago I have been reinvesting nearly every dollar into building inventory and building the business. My inventory stock is now pretty much at max (~800k) without opening another store. I owe about 125k on that inventory.\n\nThe business pays all of my expenses (housing, vehicle, etc). Recently purchased a 315k house with 7k down at 3.25% fixed rate. House is a duplex so I am going to rent out a portion of it. I've started paying myself a salary (beyond my expenses) of $3125 per week, or $12.5k a month. Currently have ~70k in savings, and about 45k in business checking. 11k in A/R and ~100k in other assets that could easily be converted to cash.\n\nI owe ~300k on the house, ~50k on my company truck, and ~125k on my inventory (turns fast, re-ordering all the time).\n\nApparently I am pretty good at business, but wealth management is new territory for me. Not really sure what I should be doing with my excess cash. Most is sitting in a savings account earning 1% (very little). The real wealth thus far is in the inventory that has taken me two years to build up. Now that part is nearly complete, I'm in a good position to stack cash all throughout 2017. Unless I decide to open another location then I'll need another ~400k in additional inventory + all the expenses of a new store. More locations = more work = more money. \n\nI don't really have any investments other than $3500 in a rollover IRA from an old 401k. It's through Fidelity but I've pretty much ignored it the last 4 years. Think it's made 100 bucks. \n\nMy goal is to retire at 45 with 5 million. What should I be doing? Presently I can save 150k a year (after tax) and not have the business feel a strain. Now that my inventory is nearly paid for and at an adequate level, this number will significantly increase throughout 2017. Just feel like there is something more I should be doing. \n\n\n\n" Self: "If you choose to use a financial advisor:\n\n* Needs to have the right diplomas and certification\n* Needs to be fee-only, in other words: doesn't get money from financial institutions for bringing you in as a client.\n* Preferably not too expensive. Either charges a fee for the hours worked, or a low percentage of assets under management (<0.5% at the very least)\n* Preferably recommended by smart friends"
User (XM855LC1AC1): "Background:\n\n30 years old, single, no kids. 2.5 years ago I started a business with a $2,000 purchase on a credit card. The business grew exponentially and my yearly sales for 2016 will be about 3,750,000 with 1.1 million in gross profit. My net will be around 450-500k, maybe a bit more. Net in 2015 was 300k.\n\nUp until I few months ago I have been reinvesting nearly every dollar into building inventory and building the business. My inventory stock is now pretty much at max (~800k) without opening another store. I owe about 125k on that inventory.\n\nThe business pays all of my expenses (housing, vehicle, etc). Recently purchased a 315k house with 7k down at 3.25% fixed rate. House is a duplex so I am going to rent out a portion of it. I've started paying myself a salary (beyond my expenses) of $3125 per week, or $12.5k a month. Currently have ~70k in savings, and about 45k in business checking. 11k in A/R and ~100k in other assets that could easily be converted to cash.\n\nI owe ~300k on the house, ~50k on my company truck, and ~125k on my inventory (turns fast, re-ordering all the time).\n\nApparently I am pretty good at business, but wealth management is new territory for me. Not really sure what I should be doing with my excess cash. Most is sitting in a savings account earning 1% (very little). The real wealth thus far is in the inventory that has taken me two years to build up. Now that part is nearly complete, I'm in a good position to stack cash all throughout 2017. Unless I decide to open another location then I'll need another ~400k in additional inventory + all the expenses of a new store. More locations = more work = more money. \n\nI don't really have any investments other than $3500 in a rollover IRA from an old 401k. It's through Fidelity but I've pretty much ignored it the last 4 years. Think it's made 100 bucks. \n\nMy goal is to retire at 45 with 5 million. What should I be doing? Presently I can save 150k a year (after tax) and not have the business feel a strain. Now that my inventory is nearly paid for and at an adequate level, this number will significantly increase throughout 2017. Just feel like there is something more I should be doing. \n\n\n\n" Self: "If you are busy with running a business, and you certainly can afford it, you might be better off getting a financial advisor or investment specialist or anything along those lines to handle your money. \n\n\nOut of curiousity, what is the business? Just curious what you managed to build up so fast.\n\n\nAlso 5 million is rather small to retire at 45, unless you keep investing and making money off that 5 million." User (XM855LC1AC1): "I calculated the 5 million based on an additional 45 years of lifespan. That would give me $111,000 a year to live on. Not including side jobs, etc when I get bored.\n\nI'd prefer not to say what the business is since I'd like to remain anonymous. I don't want my competitors to know these numbers and especially not my customers. " Self: "I should clarify, i was just asking more whay the general type of business is, not your actual business name. I still understand if you prefer not to share, i would assume just what sort of business you are in wouldnt out you though. \n\n\n\nAs for the 5 million, with 111000 per year, who knows what 111000 will be worth in 45 years. I would recommend keeping a good chunk of your retirement money in investments.\n\n" User (XM855LC1AC1): "Because of the business location, the logistics of acquiring inventory makes it a niche market that has a huge customer base. There are only a select few places in the US where it would work and scale as rapidly as I have. Even without the name, it would be easily identifiable for those who are in the same field and or location I am. \n\nGo to a place where things are very difficult for the average person to ship. Buy in bulk, sell locally." yes_its_him (yes_its_him): "Sounds like you are selling cigarettes to prisoners :)"
User (XM855LC1AC1): "Background:\n\n30 years old, single, no kids. 2.5 years ago I started a business with a $2,000 purchase on a credit card. The business grew exponentially and my yearly sales for 2016 will be about 3,750,000 with 1.1 million in gross profit. My net will be around 450-500k, maybe a bit more. Net in 2015 was 300k.\n\nUp until I few months ago I have been reinvesting nearly every dollar into building inventory and building the business. My inventory stock is now pretty much at max (~800k) without opening another store. I owe about 125k on that inventory.\n\nThe business pays all of my expenses (housing, vehicle, etc). Recently purchased a 315k house with 7k down at 3.25% fixed rate. House is a duplex so I am going to rent out a portion of it. I've started paying myself a salary (beyond my expenses) of $3125 per week, or $12.5k a month. Currently have ~70k in savings, and about 45k in business checking. 11k in A/R and ~100k in other assets that could easily be converted to cash.\n\nI owe ~300k on the house, ~50k on my company truck, and ~125k on my inventory (turns fast, re-ordering all the time).\n\nApparently I am pretty good at business, but wealth management is new territory for me. Not really sure what I should be doing with my excess cash. Most is sitting in a savings account earning 1% (very little). The real wealth thus far is in the inventory that has taken me two years to build up. Now that part is nearly complete, I'm in a good position to stack cash all throughout 2017. Unless I decide to open another location then I'll need another ~400k in additional inventory + all the expenses of a new store. More locations = more work = more money. \n\nI don't really have any investments other than $3500 in a rollover IRA from an old 401k. It's through Fidelity but I've pretty much ignored it the last 4 years. Think it's made 100 bucks. \n\nMy goal is to retire at 45 with 5 million. What should I be doing? Presently I can save 150k a year (after tax) and not have the business feel a strain. Now that my inventory is nearly paid for and at an adequate level, this number will significantly increase throughout 2017. Just feel like there is something more I should be doing. \n\n\n\n" Self: "Financial adviser! Mutual Funds!\n\nPersonally I'd pay off my loans asap because I don't like debt, including the house. Are you giving any money? Are you involved with any charities? It can be good for your soul to give a portion, it's also a tax write-off. I'd be putting 15% of my income annually into a Roth IRA, but since you're self-employed I'm not really sure if that is the perfect fit for retirement savings (ask your adviser), after that I'd either invest in real estate or mutual funds that have a good 5-10 year track record. Go to Dave Ramsey's website, look to the right and there are ELP's (endorsed local providers) there should be 1 for Investments. I've personally found a GREAT adviser through this contact method. He walked me through everything and most importantly EXPLAINED everything to me so I could make the wisest choice for myself."
User (XM855LC1AC1): "Background:\n\n30 years old, single, no kids. 2.5 years ago I started a business with a $2,000 purchase on a credit card. The business grew exponentially and my yearly sales for 2016 will be about 3,750,000 with 1.1 million in gross profit. My net will be around 450-500k, maybe a bit more. Net in 2015 was 300k.\n\nUp until I few months ago I have been reinvesting nearly every dollar into building inventory and building the business. My inventory stock is now pretty much at max (~800k) without opening another store. I owe about 125k on that inventory.\n\nThe business pays all of my expenses (housing, vehicle, etc). Recently purchased a 315k house with 7k down at 3.25% fixed rate. House is a duplex so I am going to rent out a portion of it. I've started paying myself a salary (beyond my expenses) of $3125 per week, or $12.5k a month. Currently have ~70k in savings, and about 45k in business checking. 11k in A/R and ~100k in other assets that could easily be converted to cash.\n\nI owe ~300k on the house, ~50k on my company truck, and ~125k on my inventory (turns fast, re-ordering all the time).\n\nApparently I am pretty good at business, but wealth management is new territory for me. Not really sure what I should be doing with my excess cash. Most is sitting in a savings account earning 1% (very little). The real wealth thus far is in the inventory that has taken me two years to build up. Now that part is nearly complete, I'm in a good position to stack cash all throughout 2017. Unless I decide to open another location then I'll need another ~400k in additional inventory + all the expenses of a new store. More locations = more work = more money. \n\nI don't really have any investments other than $3500 in a rollover IRA from an old 401k. It's through Fidelity but I've pretty much ignored it the last 4 years. Think it's made 100 bucks. \n\nMy goal is to retire at 45 with 5 million. What should I be doing? Presently I can save 150k a year (after tax) and not have the business feel a strain. Now that my inventory is nearly paid for and at an adequate level, this number will significantly increase throughout 2017. Just feel like there is something more I should be doing. \n\n\n\n" Self: "You can't usually have a business pay for your housing or all of your vehicle costs, just FYI. There would have to be some sort of reason that your personal living expense is necessary for the business. "
User (XM855LC1AC1): "Background:\n\n30 years old, single, no kids. 2.5 years ago I started a business with a $2,000 purchase on a credit card. The business grew exponentially and my yearly sales for 2016 will be about 3,750,000 with 1.1 million in gross profit. My net will be around 450-500k, maybe a bit more. Net in 2015 was 300k.\n\nUp until I few months ago I have been reinvesting nearly every dollar into building inventory and building the business. My inventory stock is now pretty much at max (~800k) without opening another store. I owe about 125k on that inventory.\n\nThe business pays all of my expenses (housing, vehicle, etc). Recently purchased a 315k house with 7k down at 3.25% fixed rate. House is a duplex so I am going to rent out a portion of it. I've started paying myself a salary (beyond my expenses) of $3125 per week, or $12.5k a month. Currently have ~70k in savings, and about 45k in business checking. 11k in A/R and ~100k in other assets that could easily be converted to cash.\n\nI owe ~300k on the house, ~50k on my company truck, and ~125k on my inventory (turns fast, re-ordering all the time).\n\nApparently I am pretty good at business, but wealth management is new territory for me. Not really sure what I should be doing with my excess cash. Most is sitting in a savings account earning 1% (very little). The real wealth thus far is in the inventory that has taken me two years to build up. Now that part is nearly complete, I'm in a good position to stack cash all throughout 2017. Unless I decide to open another location then I'll need another ~400k in additional inventory + all the expenses of a new store. More locations = more work = more money. \n\nI don't really have any investments other than $3500 in a rollover IRA from an old 401k. It's through Fidelity but I've pretty much ignored it the last 4 years. Think it's made 100 bucks. \n\nMy goal is to retire at 45 with 5 million. What should I be doing? Presently I can save 150k a year (after tax) and not have the business feel a strain. Now that my inventory is nearly paid for and at an adequate level, this number will significantly increase throughout 2017. Just feel like there is something more I should be doing. \n\n\n\n" Self: "If you are able to save $150k/year and don't need it for living expenses, I would consider setting up a retirement plan for your company. Depending on how many employees you have, there are options that allow for you to put away significant amounts each year on a tax-deferred basis, which reduces your taxable income. A solo 401k, sep, and defined benefit plan may be options, but again it comes down to how many employees you have, and how much you are wanting to put away tax-deferred vs money going straight into your bank that can be used on a whim. \n\nAs noted above, you really should get an advisor with the assets you have and are building. IMO, find a fee-only advisor who knows about complex retirement plans and can help you manage finances for yourself and business. Most of my clients are businesses and their owners, so feel free to bounce ideas off me if you have any questions and I can point you in the right direction. "
User (tryingnottobedumb): "I recently accepted a position out of college making 70k and have a few questions.\n\n1. Main question mentioned in the title. My first year signing bonus will be around 11k after taxes, which is almost exactly my total remaining student loan debt. What seems like the "obvious" answer would be to just take care of that, but I currently have next to no money and have no emergency fund etc. Should I just knock out the student loan debt? Create an emergency fund with ~half the bonus and shove the rest into the loans? Create the emergency fund and do other stuff with most of the rest of it, and keep making payments? What would be the best course of action.\n\n2. My company matches half up to my 4% contribution to 401k, so I plan to contribute at least that obviously. I have read a huge amount of the top posts and the "guides for people ___-___" but I am still sort of confused as to what to go for. So many people talk about 401ks as though it is some sort of "holy shit you put $10 in and you get one hundred million dollars in 30 years!!!" and everything seems so overstated. I would assume I should put around 10% of my income toward my retirement, but is 401k the only thing? I know Roth IRAs exist, but isn't that just a reverse-taxed 401k? I believe I'd prefer a Roth IRA to a normal 401k, but if it is different from the 401k my company will match, what percentages should I do? 4% into my standard one from my company and 6% into another? Are there other options than those two?\n\n3. What should I be doing with the excess money? I plan to strictly budget the rest of it and keep a couple thousand set aside for any travel I would like to do, but that leaves probably around 30k. I have read that it is better to invest early and transition into bonds later on in my career. Should I just try to make those decisions on my own? Should I hire an investment manager? Where is the best place to look for one of those? How much should I be investing? Should I be saving a significant sum of money in liquid, or deferring/investing most of it? Would it be smart to save up liquid to invest in real estate in the next few years?\n\n\nSorry I asked so many questions. I have spent the past couple of weeks straight researching and still feel that I don't know the best course of action to take. Thanks in advance for any advice. \n" Self: "You may find these links helpful:\n\n- [Student Loans wiki page](http://www.reddit.com/r/personalfinance/wiki/studentloans)\n- ["How to handle $"](http://www.reddit.com/r/personalfinance/wiki/commontopics)\n- [What's the best way to pay down my debt?](http://www.reddit.com/r/personalfinance/wiki/debt#wiki_what.27s_the_best_way_to_pay_down_my_debt.3F)\n\nI am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/personalfinance) if you have any questions or concerns."
User (tryingnottobedumb): "I recently accepted a position out of college making 70k and have a few questions.\n\n1. Main question mentioned in the title. My first year signing bonus will be around 11k after taxes, which is almost exactly my total remaining student loan debt. What seems like the "obvious" answer would be to just take care of that, but I currently have next to no money and have no emergency fund etc. Should I just knock out the student loan debt? Create an emergency fund with ~half the bonus and shove the rest into the loans? Create the emergency fund and do other stuff with most of the rest of it, and keep making payments? What would be the best course of action.\n\n2. My company matches half up to my 4% contribution to 401k, so I plan to contribute at least that obviously. I have read a huge amount of the top posts and the "guides for people ___-___" but I am still sort of confused as to what to go for. So many people talk about 401ks as though it is some sort of "holy shit you put $10 in and you get one hundred million dollars in 30 years!!!" and everything seems so overstated. I would assume I should put around 10% of my income toward my retirement, but is 401k the only thing? I know Roth IRAs exist, but isn't that just a reverse-taxed 401k? I believe I'd prefer a Roth IRA to a normal 401k, but if it is different from the 401k my company will match, what percentages should I do? 4% into my standard one from my company and 6% into another? Are there other options than those two?\n\n3. What should I be doing with the excess money? I plan to strictly budget the rest of it and keep a couple thousand set aside for any travel I would like to do, but that leaves probably around 30k. I have read that it is better to invest early and transition into bonds later on in my career. Should I just try to make those decisions on my own? Should I hire an investment manager? Where is the best place to look for one of those? How much should I be investing? Should I be saving a significant sum of money in liquid, or deferring/investing most of it? Would it be smart to save up liquid to invest in real estate in the next few years?\n\n\nSorry I asked so many questions. I have spent the past couple of weeks straight researching and still feel that I don't know the best course of action to take. Thanks in advance for any advice. \n" Self: "It'd a large sum of money with a high percentage of compound interest, pay that off as soon a possible."
User (tryingnottobedumb): "I recently accepted a position out of college making 70k and have a few questions.\n\n1. Main question mentioned in the title. My first year signing bonus will be around 11k after taxes, which is almost exactly my total remaining student loan debt. What seems like the "obvious" answer would be to just take care of that, but I currently have next to no money and have no emergency fund etc. Should I just knock out the student loan debt? Create an emergency fund with ~half the bonus and shove the rest into the loans? Create the emergency fund and do other stuff with most of the rest of it, and keep making payments? What would be the best course of action.\n\n2. My company matches half up to my 4% contribution to 401k, so I plan to contribute at least that obviously. I have read a huge amount of the top posts and the "guides for people ___-___" but I am still sort of confused as to what to go for. So many people talk about 401ks as though it is some sort of "holy shit you put $10 in and you get one hundred million dollars in 30 years!!!" and everything seems so overstated. I would assume I should put around 10% of my income toward my retirement, but is 401k the only thing? I know Roth IRAs exist, but isn't that just a reverse-taxed 401k? I believe I'd prefer a Roth IRA to a normal 401k, but if it is different from the 401k my company will match, what percentages should I do? 4% into my standard one from my company and 6% into another? Are there other options than those two?\n\n3. What should I be doing with the excess money? I plan to strictly budget the rest of it and keep a couple thousand set aside for any travel I would like to do, but that leaves probably around 30k. I have read that it is better to invest early and transition into bonds later on in my career. Should I just try to make those decisions on my own? Should I hire an investment manager? Where is the best place to look for one of those? How much should I be investing? Should I be saving a significant sum of money in liquid, or deferring/investing most of it? Would it be smart to save up liquid to invest in real estate in the next few years?\n\n\nSorry I asked so many questions. I have spent the past couple of weeks straight researching and still feel that I don't know the best course of action to take. Thanks in advance for any advice. \n" Self: "For 1. Although the emergency fund is a good thing to have, i would just knock out all the debt right away."
User (tryingnottobedumb): "I recently accepted a position out of college making 70k and have a few questions.\n\n1. Main question mentioned in the title. My first year signing bonus will be around 11k after taxes, which is almost exactly my total remaining student loan debt. What seems like the "obvious" answer would be to just take care of that, but I currently have next to no money and have no emergency fund etc. Should I just knock out the student loan debt? Create an emergency fund with ~half the bonus and shove the rest into the loans? Create the emergency fund and do other stuff with most of the rest of it, and keep making payments? What would be the best course of action.\n\n2. My company matches half up to my 4% contribution to 401k, so I plan to contribute at least that obviously. I have read a huge amount of the top posts and the "guides for people ___-___" but I am still sort of confused as to what to go for. So many people talk about 401ks as though it is some sort of "holy shit you put $10 in and you get one hundred million dollars in 30 years!!!" and everything seems so overstated. I would assume I should put around 10% of my income toward my retirement, but is 401k the only thing? I know Roth IRAs exist, but isn't that just a reverse-taxed 401k? I believe I'd prefer a Roth IRA to a normal 401k, but if it is different from the 401k my company will match, what percentages should I do? 4% into my standard one from my company and 6% into another? Are there other options than those two?\n\n3. What should I be doing with the excess money? I plan to strictly budget the rest of it and keep a couple thousand set aside for any travel I would like to do, but that leaves probably around 30k. I have read that it is better to invest early and transition into bonds later on in my career. Should I just try to make those decisions on my own? Should I hire an investment manager? Where is the best place to look for one of those? How much should I be investing? Should I be saving a significant sum of money in liquid, or deferring/investing most of it? Would it be smart to save up liquid to invest in real estate in the next few years?\n\n\nSorry I asked so many questions. I have spent the past couple of weeks straight researching and still feel that I don't know the best course of action to take. Thanks in advance for any advice. \n" Self: "Put some bonus into an emergency fund, rest towards the debt. I would say at least one month of expenses for the emergency fund.\n\nFor retirement saving, there are basically two accounts (401k and IRA), each of which come in two varieties (traditional and Roth). So, four options exist: traditional 401k, Roth 401k, traditional IRA and Roth IRA. 401k's are through your employer, IRAs are individual retirement accounts (literally) that you set up on your own and manage. You don't get an employer match for IRA contributions, only 401k.\n\nThe standard flow of selection is: 401k up to employer match. If you have more money you want to save, then max out your IRA. If you have even more money, then go back to the 401k and contribute up to the max ($18k this year and next for the under 50 crowd). HSAs (health savings account) are also a useful retirement vehicle if offered.\n\nSome other things to keep in mind:\nRoth IRA have income limits. If you make over a certain amount, you can't directly contribute to a Roth IRA (there are legal ways to get around that).\nNot all employers offer a Roth 401k. If your employer does, the employer match is always pre-tax.\n\nIt isn't quite like $10 becomes $30 million. But compound interest over a very long time makes a huge difference. Which is why it is so important to start as early as possible. Lots of calculators out there is show that waiting just 5 or 10 years to start means you are missing out on tens of or hundreds of thousands of dollars.\n\nWhat to do with excess money is up to you. I suggest you come up with some goals (house, early retirement, vacation, etc). Figure out how much those things cost. Then figure out how to pay for them. Then, prioritize."
User (tryingnottobedumb): "I recently accepted a position out of college making 70k and have a few questions.\n\n1. Main question mentioned in the title. My first year signing bonus will be around 11k after taxes, which is almost exactly my total remaining student loan debt. What seems like the "obvious" answer would be to just take care of that, but I currently have next to no money and have no emergency fund etc. Should I just knock out the student loan debt? Create an emergency fund with ~half the bonus and shove the rest into the loans? Create the emergency fund and do other stuff with most of the rest of it, and keep making payments? What would be the best course of action.\n\n2. My company matches half up to my 4% contribution to 401k, so I plan to contribute at least that obviously. I have read a huge amount of the top posts and the "guides for people ___-___" but I am still sort of confused as to what to go for. So many people talk about 401ks as though it is some sort of "holy shit you put $10 in and you get one hundred million dollars in 30 years!!!" and everything seems so overstated. I would assume I should put around 10% of my income toward my retirement, but is 401k the only thing? I know Roth IRAs exist, but isn't that just a reverse-taxed 401k? I believe I'd prefer a Roth IRA to a normal 401k, but if it is different from the 401k my company will match, what percentages should I do? 4% into my standard one from my company and 6% into another? Are there other options than those two?\n\n3. What should I be doing with the excess money? I plan to strictly budget the rest of it and keep a couple thousand set aside for any travel I would like to do, but that leaves probably around 30k. I have read that it is better to invest early and transition into bonds later on in my career. Should I just try to make those decisions on my own? Should I hire an investment manager? Where is the best place to look for one of those? How much should I be investing? Should I be saving a significant sum of money in liquid, or deferring/investing most of it? Would it be smart to save up liquid to invest in real estate in the next few years?\n\n\nSorry I asked so many questions. I have spent the past couple of weeks straight researching and still feel that I don't know the best course of action to take. Thanks in advance for any advice. \n" Self: "Your main question is kind of like asking "how valuable is a ten dollar bill." \n\nIt's pretty easy to calculate how "valuable" it is to pay off a loan with a fixed interest rate. "
User (tryingnottobedumb): "I recently accepted a position out of college making 70k and have a few questions.\n\n1. Main question mentioned in the title. My first year signing bonus will be around 11k after taxes, which is almost exactly my total remaining student loan debt. What seems like the "obvious" answer would be to just take care of that, but I currently have next to no money and have no emergency fund etc. Should I just knock out the student loan debt? Create an emergency fund with ~half the bonus and shove the rest into the loans? Create the emergency fund and do other stuff with most of the rest of it, and keep making payments? What would be the best course of action.\n\n2. My company matches half up to my 4% contribution to 401k, so I plan to contribute at least that obviously. I have read a huge amount of the top posts and the "guides for people ___-___" but I am still sort of confused as to what to go for. So many people talk about 401ks as though it is some sort of "holy shit you put $10 in and you get one hundred million dollars in 30 years!!!" and everything seems so overstated. I would assume I should put around 10% of my income toward my retirement, but is 401k the only thing? I know Roth IRAs exist, but isn't that just a reverse-taxed 401k? I believe I'd prefer a Roth IRA to a normal 401k, but if it is different from the 401k my company will match, what percentages should I do? 4% into my standard one from my company and 6% into another? Are there other options than those two?\n\n3. What should I be doing with the excess money? I plan to strictly budget the rest of it and keep a couple thousand set aside for any travel I would like to do, but that leaves probably around 30k. I have read that it is better to invest early and transition into bonds later on in my career. Should I just try to make those decisions on my own? Should I hire an investment manager? Where is the best place to look for one of those? How much should I be investing? Should I be saving a significant sum of money in liquid, or deferring/investing most of it? Would it be smart to save up liquid to invest in real estate in the next few years?\n\n\nSorry I asked so many questions. I have spent the past couple of weeks straight researching and still feel that I don't know the best course of action to take. Thanks in advance for any advice. \n" Self: "Definitely check out the second link provided by the automoderator."
User (tryingnottobedumb): "I recently accepted a position out of college making 70k and have a few questions.\n\n1. Main question mentioned in the title. My first year signing bonus will be around 11k after taxes, which is almost exactly my total remaining student loan debt. What seems like the "obvious" answer would be to just take care of that, but I currently have next to no money and have no emergency fund etc. Should I just knock out the student loan debt? Create an emergency fund with ~half the bonus and shove the rest into the loans? Create the emergency fund and do other stuff with most of the rest of it, and keep making payments? What would be the best course of action.\n\n2. My company matches half up to my 4% contribution to 401k, so I plan to contribute at least that obviously. I have read a huge amount of the top posts and the "guides for people ___-___" but I am still sort of confused as to what to go for. So many people talk about 401ks as though it is some sort of "holy shit you put $10 in and you get one hundred million dollars in 30 years!!!" and everything seems so overstated. I would assume I should put around 10% of my income toward my retirement, but is 401k the only thing? I know Roth IRAs exist, but isn't that just a reverse-taxed 401k? I believe I'd prefer a Roth IRA to a normal 401k, but if it is different from the 401k my company will match, what percentages should I do? 4% into my standard one from my company and 6% into another? Are there other options than those two?\n\n3. What should I be doing with the excess money? I plan to strictly budget the rest of it and keep a couple thousand set aside for any travel I would like to do, but that leaves probably around 30k. I have read that it is better to invest early and transition into bonds later on in my career. Should I just try to make those decisions on my own? Should I hire an investment manager? Where is the best place to look for one of those? How much should I be investing? Should I be saving a significant sum of money in liquid, or deferring/investing most of it? Would it be smart to save up liquid to invest in real estate in the next few years?\n\n\nSorry I asked so many questions. I have spent the past couple of weeks straight researching and still feel that I don't know the best course of action to take. Thanks in advance for any advice. \n" Self: "I would advise you to track your expenses, for 6 months. While putting your bonus away in an untouchable account. After 6 months, if you're doing fine with your income. Pay off half the loan and keep half in emergency. \n\nI also advise, put a standard 10% of gross salary in a retirement account. Don't worry too much about employer matching. I always think of it as extra frosting, it's nice to have but not a part of the process. Unless you aren't putting in the matching portion. \n\n\nIn addition, in that 6 months put away a reasonable/ conservative amount in the savings. You know, depending on your expenses. \n\nJumping all in is risky in case you need instant cash flow. "
User (Chowda289): "What does it mean when it says, "4% cash back on first $1000 in purchases made on the Card Account"? Does that mean I have to spend $1000 before I get the 4% or the limit for the deal is $1000?" Self: "You may find these links helpful:\n\n- [Credit-related wiki pages](http://www.reddit.com/r/personalfinance/wiki/index#wiki_credit)\n- [Credit Cards](http://www.reddit.com/r/personalfinance/wiki/creditcards) \n- [FICO / Credit Scores](http://www.reddit.com/r/personalfinance/wiki/fico)\n- [Improving Credit Scores and Building Credit](http://www.reddit.com/r/personalfinance/wiki/credit_building)\n\nI am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/personalfinance) if you have any questions or concerns."
User (Chowda289): "What does it mean when it says, "4% cash back on first $1000 in purchases made on the Card Account"? Does that mean I have to spend $1000 before I get the 4% or the limit for the deal is $1000?" Self: "4% Cashback for all your purchases up to your first thousand dollars in charges for a maximum of $40. " User (Chowda289): "Thanks. :)"
User (spaz1020): "Hello /r/personalfinance,\n\nMy bank has placed a hold on my checking account that put me in the negative that won't lift until next week. Is this a normal occurrence and will I accrue overdraft fees because of it?" Self: "What? It sounds like you are saying that you overdrafted your account so they put a hold on it. "
User (spaz1020): "Hello /r/personalfinance,\n\nMy bank has placed a hold on my checking account that put me in the negative that won't lift until next week. Is this a normal occurrence and will I accrue overdraft fees because of it?" Self: "You will not get overdraft charges for it. If the hold is placed more than what you have in your account you don't have to worry about it."
User (throwawayewe3313w): "I'm in a position where I can take a student loan of about 5k. It will cost me 200$ in interest next year (4 percent interest), and then only 50$ in interest for 7-15 subsequent years (1 percent interest). I will have to start repaying it by 2020 (~40$ monthly repayment for 10 years). I would presumably invest the money in something low risk, low reward. When taking into account inflation this seems like a good deal. Something that could give me a larger buffer, assuming that I don't lock it completely, and wouldn't cost me anything. Curious to hear your opinion on this. " Self: "You may find these links helpful:\n\n- [Student Loans wiki page](http://www.reddit.com/r/personalfinance/wiki/studentloans)\n- ["How to handle $"](http://www.reddit.com/r/personalfinance/wiki/commontopics)\n- [What's the best way to pay down my debt?](http://www.reddit.com/r/personalfinance/wiki/debt#wiki_what.27s_the_best_way_to_pay_down_my_debt.3F)\n\nI am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/personalfinance) if you have any questions or concerns."
User (throwawayewe3313w): "I'm in a position where I can take a student loan of about 5k. It will cost me 200$ in interest next year (4 percent interest), and then only 50$ in interest for 7-15 subsequent years (1 percent interest). I will have to start repaying it by 2020 (~40$ monthly repayment for 10 years). I would presumably invest the money in something low risk, low reward. When taking into account inflation this seems like a good deal. Something that could give me a larger buffer, assuming that I don't lock it completely, and wouldn't cost me anything. Curious to hear your opinion on this. " Self: "If your goal here is to increase your buffer then you would have to invest your money in something liquid so you can pull it out in an emergency. Low-risk, low-return, liquid investments aren't going to return 4%. Savings accounts or short-term bonds return <1%.\n\nSince 2009 interest rates are low, borrowing is cheap but likewise you'll make less money lending/low-risk investing." User (throwawayewe3313w): "I guess I was thinking not only of a buffer but also avoiding expensive loans in the future. When I'm done with my studies I may want to invest in car/property and I may need a loan. In which case I won't be able to get a cheap 1% loan like this one. "
User (throwawayewe3313w): "I'm in a position where I can take a student loan of about 5k. It will cost me 200$ in interest next year (4 percent interest), and then only 50$ in interest for 7-15 subsequent years (1 percent interest). I will have to start repaying it by 2020 (~40$ monthly repayment for 10 years). I would presumably invest the money in something low risk, low reward. When taking into account inflation this seems like a good deal. Something that could give me a larger buffer, assuming that I don't lock it completely, and wouldn't cost me anything. Curious to hear your opinion on this. " Self: "what if the low risk was still too much risk after all and you lost some money?\n\nYou are trying to gamble to earn more money than you spend in interest on the loan.\nNow lets look at this from an outside standpoint, low risk investment = low returns, possibly just covering the interest at best.\nFor this you take the risk of loosing some of the money with investing and having to pay it out of pocket.\n\nOn the other hand you could just not take the loan which gives a 100% secure return of what you would have paid in interest.\n\nSeriously, if you want to invest save up some money and use it.\nIf you have no cash left over you dont need to think about investing something." User (throwawayewe3313w): "You make a good point but with a 1% loan I think it would be very hard not to cover the interest.\nState/country bonds + inflation > 1% and very low risk. " Golpar (Golpar): "Are putting the loan money into thoae investments?"
User (FrankTuna): "Hi all! I've been lurking for a while here, but I thought it was time to ask a question from the wise folks here. \n\nI checked Credit Karma for the first time this morning and my scores were lower than I expected (TU 655, EQ 634). I have a good job grossing about $80K and a flawless payment history, but my utilization is high (46% - owe about $23K on $50K in total credit limits). This is the culmination of medical bills and required home repairs unfortunately. I generally try to live relatively cheaply and we cut alot of coupons in my house!\n\nI know this utilization is high, but I think I can get this down to about 19% utilization (or about $8500) by the end of March based on my current budget. I'm curious what impact this would have on my score. I'd like to be able to refinance about $50K in student loans currently around 7%, and I'm sure my current score would be an impediment.\n\n Thanks for the help!" Self: "You may find these links helpful:\n\n- [Credit-related wiki pages](http://www.reddit.com/r/personalfinance/wiki/index#wiki_credit)\n- [Credit Reports](http://www.reddit.com/r/personalfinance/wiki/credit_reports) \n- [FICO / Credit Scores](http://www.reddit.com/r/personalfinance/wiki/fico)\n- [Improving Credit Scores and Building Credit](http://www.reddit.com/r/personalfinance/wiki/credit_building)\n\nI am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/personalfinance) if you have any questions or concerns."
User (FrankTuna): "Hi all! I've been lurking for a while here, but I thought it was time to ask a question from the wise folks here. \n\nI checked Credit Karma for the first time this morning and my scores were lower than I expected (TU 655, EQ 634). I have a good job grossing about $80K and a flawless payment history, but my utilization is high (46% - owe about $23K on $50K in total credit limits). This is the culmination of medical bills and required home repairs unfortunately. I generally try to live relatively cheaply and we cut alot of coupons in my house!\n\nI know this utilization is high, but I think I can get this down to about 19% utilization (or about $8500) by the end of March based on my current budget. I'm curious what impact this would have on my score. I'd like to be able to refinance about $50K in student loans currently around 7%, and I'm sure my current score would be an impediment.\n\n Thanks for the help!" Self: "Forget your score. Paying off high interest debt is a great thing for your financial future.\n\nAlso putting together an emergency fund to avoid ending up here again."
User (Multi_Personalities): "Hi r/personalfinance,\nI'm a 14 year old boy and I have ~1600 Euro saved up and I don't have any income. I already have my necessities for example; PC, Phone, Bike, Room etc. I don't need anything new, so I'm wondering what I should do with my money. Spending money which will make me nothing back really despises me. I hate spending without a valid reason. I'm searching for a job right now too. I'd like to have saved up at least 2500 Euro, just in case of emergencies. For anyone wondering, I live in Europe (the Netherlands), I would like to invest in something but have close to no experience about investing.\n\nWhat could I do with my money and what choices do I have? I'd like to reach my goal. I'm searching for a job too.." Self: "Just keep it in savings. That's not enough money to generate significant returns in investments, which you'd have to do in conjunction with an adult in most places. " User (Multi_Personalities): "Thank you! Is there anything else I can do except working?" Self: "You can invest in educational opportunities, or start building your network, e.g. go to a convention of people doing something you are interested in. Meet people who will help you."
User (Multi_Personalities): "Hi r/personalfinance,\nI'm a 14 year old boy and I have ~1600 Euro saved up and I don't have any income. I already have my necessities for example; PC, Phone, Bike, Room etc. I don't need anything new, so I'm wondering what I should do with my money. Spending money which will make me nothing back really despises me. I hate spending without a valid reason. I'm searching for a job right now too. I'd like to have saved up at least 2500 Euro, just in case of emergencies. For anyone wondering, I live in Europe (the Netherlands), I would like to invest in something but have close to no experience about investing.\n\nWhat could I do with my money and what choices do I have? I'd like to reach my goal. I'm searching for a job too.." Self: "Hi!\n\nDon't spend your money just for the sake of spending it. You're 14, if you DO want to spend it that's normal and fine, but if you think you'd be happier not spending it on luxuries and stuff, that's great - you have an opportunity to be more prepared for the future!\n\nRegardless of how much money you have, or whether or not you currently have a job, having that amount in savings can be hugely beneficial to you. Over here in the US, over 50% of Americans have LESS than €950 available in savings.\n\nWhy is that significant (and good for you)? Two reasons:\n\n1. If an emergency comes up that you need to pay for, if you don't have savings then you need to go into debt which of course costs extra money.\n\n2. Many times you can buy a more expensive (but higher quality) version of a product which is cheaper in the long run than buying the cheapest possible one. If you don't have any savings though, you can't afford the higher-priced items.\n\nWhat I'm trying to say is, you could invest your money in various ways and that would be beneficial in the long run, although as others pointed out you'll need help from your parents/legal guardian to make that happen. But if you just keep the money in savings, and try to grow it over time, when you're in your 20s you might be very thankful that you have that money available to you." User (Multi_Personalities): "Thanks :)"
User (HastroX): "Optional Life Insurance (x8 base pay) $7/ mo.\n\nAccidental Death & Disability (x8 base pay) $7/mo.\n\nBase pay - 70K\n\nHonestly, I've never had to consider whether I would need these. Are these high prices compared to private insurance companies? I'm not sure if it's worth shelling 14$/mo for something if I don't really know what it is. " Self: "What's the base pay? The 8x means nothing if we don't know what it's multiplying against. Between life and AD&D, I'd get additional life.\n\nMy company it's about $1/year for each $1000 of life insurance." User (HastroX): "70K"
User (HastroX): "Optional Life Insurance (x8 base pay) $7/ mo.\n\nAccidental Death & Disability (x8 base pay) $7/mo.\n\nBase pay - 70K\n\nHonestly, I've never had to consider whether I would need these. Are these high prices compared to private insurance companies? I'm not sure if it's worth shelling 14$/mo for something if I don't really know what it is. " Self: "I doubt you could find coverage cheaper in the private market. What is your family situation? Married? Kids? " User (HastroX): "Single, soon to be married though" Self: "I would definitely take them. Without a doubt the supplemental life. And for the cost, the AD&D is worth it as well. Typically you can use the thumbrule of 10x your salary for life insurance. "
User (HastroX): "Optional Life Insurance (x8 base pay) $7/ mo.\n\nAccidental Death & Disability (x8 base pay) $7/mo.\n\nBase pay - 70K\n\nHonestly, I've never had to consider whether I would need these. Are these high prices compared to private insurance companies? I'm not sure if it's worth shelling 14$/mo for something if I don't really know what it is. " Self: "Are you sure the AD&D Isn't Accidental Death and Dismemberment? I am not sure you shouldn't take it, just that is a big difference. You can check out generic term4sale.com to see what 1 million of 10 year term costs, about 20 bucks a month in perfect health. \n\nSo your work is definitely a good price. "
User (HastroX): "Optional Life Insurance (x8 base pay) $7/ mo.\n\nAccidental Death & Disability (x8 base pay) $7/mo.\n\nBase pay - 70K\n\nHonestly, I've never had to consider whether I would need these. Are these high prices compared to private insurance companies? I'm not sure if it's worth shelling 14$/mo for something if I don't really know what it is. " Self: "I doubt you could find coverage cheaper in the private market. What is your family situation? Married? Kids? " Civisisus (Civisisus): ">I doubt you could find coverage cheaper in the private market\n\nsee response to yes_its_him"
User (HastroX): "Optional Life Insurance (x8 base pay) $7/ mo.\n\nAccidental Death & Disability (x8 base pay) $7/mo.\n\nBase pay - 70K\n\nHonestly, I've never had to consider whether I would need these. Are these high prices compared to private insurance companies? I'm not sure if it's worth shelling 14$/mo for something if I don't really know what it is. " Self: "I'm in a similar option/price range at work. For $14 a month you're getting quite a bit of coverage. Read up on the policies to make sure you know what you're getting, but you definitely wont find all of that cheaper elsewhere." Civisisus (Civisisus): "> you definitely wont find all of that cheaper elsewhere.\n\nDon't buy life insurance, or any other financial protection, for the price - buy it for the value\n"
User (HastroX): "Optional Life Insurance (x8 base pay) $7/ mo.\n\nAccidental Death & Disability (x8 base pay) $7/mo.\n\nBase pay - 70K\n\nHonestly, I've never had to consider whether I would need these. Are these high prices compared to private insurance companies? I'm not sure if it's worth shelling 14$/mo for something if I don't really know what it is. " Self: "You don't say what your base pay is or what those policies cover (e.g. on disability), but it's typical that these are good deals. You probably couldn't go out and get individual policies for much of anything that cost only $7/month, it's not cost-effective to service individual policyholders for premiums that small, so they do it in bulk at work." Civisisus (Civisisus): "> it's typical that these are good deals.\n\nNo. No, it's not "typical". If you're in good health you can almost always obtain life insurance at lower rates than your voluntary group coverage offers. Why? Because you're automatically eligible for group coverage - your coverage is not underwritten, as individual policies are.\n\nThe life insurance business is sucking air & has for years so rates are more competitive than has historically been the case. Further, some insurers are essentially giving away life coverage if employers permit them to market otheer, more profitable, lines of voluntary insurance (think critical illness, etc).\n" Self: "If they're "giving it away", it's a good deal. That's my point. $560k term for $7 is a good deal as these things go." Civisisus (Civisisus): "> If they're "giving it away", it's a good deal. That's my point.\n\nit's a point you didn't specifically make, but ok....." Self: "Sorry that I didn't go into the economic rationale. These are still good deals, typically, for some definition of typical."
User (HastroX): "Optional Life Insurance (x8 base pay) $7/ mo.\n\nAccidental Death & Disability (x8 base pay) $7/mo.\n\nBase pay - 70K\n\nHonestly, I've never had to consider whether I would need these. Are these high prices compared to private insurance companies? I'm not sure if it's worth shelling 14$/mo for something if I don't really know what it is. " Self: "First you should estimate how much insurance you need. 8x is not uncommon at all. Depending on your age and family this may not be enough. It could also be too much coverage. Second for how long will you need coverage. If you need coverage into retirement you may consider getting some permanent insurance. Group term policies are great for getting lots of death benefit cheap. But it doesn't last forever. Knowing how much coverage you need in the future isn't easy. As for now depending on your age and health, you'd be hard pressed to beat the price on the 8x LI. Stay away from AD&D policies. They are worthless. TL;DR evaluate what adequate coverage for you is. If you need it get the 8x of LI. Skip the AD&D. Buy commercial insurance for any other needs you have." Civisisus (Civisisus): "> 8x is not uncommon at all.\n\n\nYes it IS uncommon. What's the purpose of 8X someone's annual earnings ass a life payout? What kinds of financial risk do the beneficiaries of someone single have that rationalize that amount of life insurance? I'll help you with that - NO kinds is "commonly" how many." Self: "I may have missed that OP is single. That would certainly reduce the need for LI dramatically. But, I did make try to make a caveat that his need depends on his family status. And I stand by the 8x need not being uncommon. If there is a spouse and dependents. Then getting this is very likely a must do. Especially when you consider the cost is comparable to a Netflix subscription. " Civisisus (Civisisus): "> Then getting this is very likely a must do. Especially when you consider the cost is comparable to a Netflix subscription\n\nno. Get coverage that fits projected need. Why is 8 years of current income needed? If that's true, it can be argued that the individual "needs" 8x their current income while they're alive.\n\nCost of the coverage is not a purchasing factor - it's not a crime to buy of course, but it's not a rational thought process to assert that the price is a reason to buy more coverage than the need calls for." Self: "Oh come on already. Make any assumption you want on how much insurance OP needs. Assume OP is young, and able to get preferred plus rate class. Then go get a quote for life insurance that is cheaper then 7.00/mo. Did you get 560k of coverage. Let me know when you find a better buy." Civisisus (Civisisus): ""a better buy" is buying coveraqe you need", not spending - even a "great prices" - for coverage you don't need. \n\nYou're reasoning like someone selling insurance, not someone buying it." Self: "What? Are you serious? Of course he should buy what he needs. And of course he should buy it in the most cost effective way. What you don't seem to get is a commercial policy will cost him more. If he sincerely doesn't need that much insurance. He should still pay no more than 7/mo. For any amount of term insurance less than 560k. And I'm speaking as someone buying. Value matters! Seriously don't even bother responding until you can provide a quote for any amount of insurance at 7/mo. "
User (originalwombat): "As it says on the tin really. I've gotten a slight raise and have gone from hourly pay to salary. My first pay will be at the end of December. The thing I'm most worried about is running out of money, as I've never dealt with having it all in a lump sum before. What's the best way to do this? I have a joint account with BF where we pay for bills and rent etc, and my own personal account where I pay for phone and other personal costs. Usually I transfer money when I have it to the joint account to make rent. It's a bit messy the way we do it TBH. \n\nAny advice greatly appreciated. " Self: "Monthly is easier once your used to it (most bills etc are monthly). Do yourself a budget and give yourself a certain amount of spends "per week" (I go on dates as there are more than 4 weeks in a month-1st, 7th, 15th and 22nd) That way if you run out you only have days rather than weeks without spends and you wont be quite do tempted to go over."
User (originalwombat): "As it says on the tin really. I've gotten a slight raise and have gone from hourly pay to salary. My first pay will be at the end of December. The thing I'm most worried about is running out of money, as I've never dealt with having it all in a lump sum before. What's the best way to do this? I have a joint account with BF where we pay for bills and rent etc, and my own personal account where I pay for phone and other personal costs. Usually I transfer money when I have it to the joint account to make rent. It's a bit messy the way we do it TBH. \n\nAny advice greatly appreciated. " Self: "Setting up a budget so you know where your money is going will give you confidence that you are not going to run out of money. I use YNAB which is super helpful"
User (originalwombat): "As it says on the tin really. I've gotten a slight raise and have gone from hourly pay to salary. My first pay will be at the end of December. The thing I'm most worried about is running out of money, as I've never dealt with having it all in a lump sum before. What's the best way to do this? I have a joint account with BF where we pay for bills and rent etc, and my own personal account where I pay for phone and other personal costs. Usually I transfer money when I have it to the joint account to make rent. It's a bit messy the way we do it TBH. \n\nAny advice greatly appreciated. " Self: "I've been monthly for almost 3 years. I have never felt comfortable on it and I don't enjoy it. How I cope is I have moved all my monthly bills due dates to the 1st of every month. I get paid on the last business day each month. It works well but I still long for getting paid every two weeks. Good luck!"
User (originalwombat): "As it says on the tin really. I've gotten a slight raise and have gone from hourly pay to salary. My first pay will be at the end of December. The thing I'm most worried about is running out of money, as I've never dealt with having it all in a lump sum before. What's the best way to do this? I have a joint account with BF where we pay for bills and rent etc, and my own personal account where I pay for phone and other personal costs. Usually I transfer money when I have it to the joint account to make rent. It's a bit messy the way we do it TBH. \n\nAny advice greatly appreciated. " Self: "I always have the mindset on payday that "I'm never going to have more money than this." So every bill gets paid off in full just as soon as I get it. It helps that some of my big bills are automatically withdrawn, so they're often gone by the time I even look at my account to see my paycheck has hit. I use credit cards for everything, including water and electric bills, and I pay those off in full as soon as I get paid/the statement comes out. It makes it really easy to track expenses. For instance, I already know that I will have $36.99 leftover in my checking account from this past paycheck. Sounds scary, but it's not because my credit cards are floating me a very short-term loan until the next paycheck hits, at which time I'll pay Chase again in full. Rinse and repeat. \n\nWarning though: using credit cards like this is only good if you are diligent about not charging more than you can pay off each month. If you carry a balance over from one month to the next, you're throwing money away. You have to stay within a set budget for it to work. "
User (originalwombat): "As it says on the tin really. I've gotten a slight raise and have gone from hourly pay to salary. My first pay will be at the end of December. The thing I'm most worried about is running out of money, as I've never dealt with having it all in a lump sum before. What's the best way to do this? I have a joint account with BF where we pay for bills and rent etc, and my own personal account where I pay for phone and other personal costs. Usually I transfer money when I have it to the joint account to make rent. It's a bit messy the way we do it TBH. \n\nAny advice greatly appreciated. " Self: "I would open a savings account and put in a bit of money when your paycheck comes in, to take out again halfway through the month if you need it."
User (originalwombat): "As it says on the tin really. I've gotten a slight raise and have gone from hourly pay to salary. My first pay will be at the end of December. The thing I'm most worried about is running out of money, as I've never dealt with having it all in a lump sum before. What's the best way to do this? I have a joint account with BF where we pay for bills and rent etc, and my own personal account where I pay for phone and other personal costs. Usually I transfer money when I have it to the joint account to make rent. It's a bit messy the way we do it TBH. \n\nAny advice greatly appreciated. " Self: "Direct deposit your monthly check into savings, then setup and auto transfer to move half of the money into checking every 2 weeks.\n\nProblem solved."
User (originalwombat): "As it says on the tin really. I've gotten a slight raise and have gone from hourly pay to salary. My first pay will be at the end of December. The thing I'm most worried about is running out of money, as I've never dealt with having it all in a lump sum before. What's the best way to do this? I have a joint account with BF where we pay for bills and rent etc, and my own personal account where I pay for phone and other personal costs. Usually I transfer money when I have it to the joint account to make rent. It's a bit messy the way we do it TBH. \n\nAny advice greatly appreciated. " Self: "Stick to a good budget and build about a month's cushion up in your checking account. Then, it really won't make a difference when you get paid. These things really only matter when you're living paycheck to paycheck."
User (originalwombat): "As it says on the tin really. I've gotten a slight raise and have gone from hourly pay to salary. My first pay will be at the end of December. The thing I'm most worried about is running out of money, as I've never dealt with having it all in a lump sum before. What's the best way to do this? I have a joint account with BF where we pay for bills and rent etc, and my own personal account where I pay for phone and other personal costs. Usually I transfer money when I have it to the joint account to make rent. It's a bit messy the way we do it TBH. \n\nAny advice greatly appreciated. " Self: "I was paid monthly and it sucked starting out. Try to save a month or two's expenses just in case and you will feel much better."
User (hotnspicychickn): "While navigating through a maze of medical insurance to get a simple lab blood test bill paid, apparently the clock timed out and the medical center actually sent our bill to collections. This has never happened to me before. We were in the process of getting shuttled between our two insurance companies about which one of them was to cover the bill when the collection letter arrived. At this point I've invested about 30 man hours of phone time into getting a $250 bill paid and I'm willing to give up and pay the bill out of pocket. \n\nI have absolutely never dealt with collections before and with all the stories I imagine them to be something akin to the mafia, so I'm nervous to do this correctly. Also, the bill happens to be in my teenage daughter's name, as she was the patient, so it's her credit at risk here. \n\nDo I write a check and mail it? Do I request one of those push checks through my bank (Bank of America) and have the bank send it to them directly? Do I use an AMEX credit card and get points for it? \n\nI did a quick credit check and nothing has been reported to my daughter's credit file yet. \n\nAny advice would be much appreciated!" Self: "You may find these links helpful:\n\n- [What's the best way to pay down my debt?](http://www.reddit.com/r/personalfinance/wiki/debt#wiki_what.27s_the_best_way_to_pay_down_my_debt.3F)\n- [Dealing with collections](http://www.reddit.com/r/personalfinance/wiki/collections)\n- [Credit Repair](http://www.reddit.com/r/personalfinance/wiki/credit_building#wiki_i_have_bad_credit.2C_and_i_am_looking_to_repair_it.)\n\nI am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/personalfinance) if you have any questions or concerns."
User (hotnspicychickn): "While navigating through a maze of medical insurance to get a simple lab blood test bill paid, apparently the clock timed out and the medical center actually sent our bill to collections. This has never happened to me before. We were in the process of getting shuttled between our two insurance companies about which one of them was to cover the bill when the collection letter arrived. At this point I've invested about 30 man hours of phone time into getting a $250 bill paid and I'm willing to give up and pay the bill out of pocket. \n\nI have absolutely never dealt with collections before and with all the stories I imagine them to be something akin to the mafia, so I'm nervous to do this correctly. Also, the bill happens to be in my teenage daughter's name, as she was the patient, so it's her credit at risk here. \n\nDo I write a check and mail it? Do I request one of those push checks through my bank (Bank of America) and have the bank send it to them directly? Do I use an AMEX credit card and get points for it? \n\nI did a quick credit check and nothing has been reported to my daughter's credit file yet. \n\nAny advice would be much appreciated!" Self: "> Do I write a check and mail it? Do I request one of those push checks through my bank (Bank of America) and have the bank send it to them directly? Do I use an AMEX credit card and get points for it?\n\nAny of these should be fine. I'd suggest a check over a credit card because some debt collectors can be pretty scummy."
User (AutoModerator): "\n### New members, please check the [PF Wiki](https://www.reddit.com/r/personalfinance/wiki/index) to see if your question might be answered there.\n\nPlease use this thread for personal finance discussions and questions which might not warrant a separate post. Please note that the subreddit rules still apply here.\n\nMake a top-level comment if you want to ask a question or start a discussion! Please don't downvote "moronic" questions!\n\nA big thank you to the many PFers who take time to answer other people's questions!\n\nFor past Weekend Discussion threads, please search the [Weekly Archive](https://www.reddit.com/r/personalfinance/search?q=Weekend+Discussion+author%3AAutoModerator&sort=new&restrict_sr=on&t=year#res-hide-options).\n" Self: "Curious and a little confused as to if I am exempt from overtime pay since I also earn commission. \n\nI am a salaried + commission employee who will make less than the White Collar Exemption for the Fair Labor Standards Act. My company is based out of California, but I work remotely in a sales roll in Ohio. \n\nShould I contact the DOL for California or Ohio? \n" Downvotes-All-Memes (Downvotes-All-Memes): "I don't have a specific answer for you, but over the years I've learned to just list out who I think might be involved and start calling any of them. If they can't answer, they'll have a (usually) better idea of who can."
User (AutoModerator): "\n### New members, please check the [PF Wiki](https://www.reddit.com/r/personalfinance/wiki/index) to see if your question might be answered there.\n\nPlease use this thread for personal finance discussions and questions which might not warrant a separate post. Please note that the subreddit rules still apply here.\n\nMake a top-level comment if you want to ask a question or start a discussion! Please don't downvote "moronic" questions!\n\nA big thank you to the many PFers who take time to answer other people's questions!\n\nFor past Weekend Discussion threads, please search the [Weekly Archive](https://www.reddit.com/r/personalfinance/search?q=Weekend+Discussion+author%3AAutoModerator&sort=new&restrict_sr=on&t=year#res-hide-options).\n" Self: "Just curious, is anyone following the stay and appeal process of the FLSA regulation that was supposed to go into effect Dec. 1st? I got the salary bump a few weeks early in lieu of my normal merit raise, but then I got a call yesterday saying they were moving everyone back down to our previous salaries.\n\nI had already factored that raise into the decision to max my HSA next year, which would have only resulted in a very small reduction in net pay from what I'm making now after all was said and done, but now I don't think I'll be able to handle it. Just trying to make sure I take care of everything that I need to by any deadlines if it's not too late to reduce my contribution."
User (AutoModerator): "\n### New members, please check the [PF Wiki](https://www.reddit.com/r/personalfinance/wiki/index) to see if your question might be answered there.\n\nPlease use this thread for personal finance discussions and questions which might not warrant a separate post. Please note that the subreddit rules still apply here.\n\nMake a top-level comment if you want to ask a question or start a discussion! Please don't downvote "moronic" questions!\n\nA big thank you to the many PFers who take time to answer other people's questions!\n\nFor past Weekend Discussion threads, please search the [Weekly Archive](https://www.reddit.com/r/personalfinance/search?q=Weekend+Discussion+author%3AAutoModerator&sort=new&restrict_sr=on&t=year#res-hide-options).\n" Self: "Is it a good decision to do a Master's degree in engineering financially speaking? I graduated last year with B. Eng and I've been working for the last year. I want to be able to do more technical and specific positions and I feel like with a M.ASc, I might be able to get that. But i'm still building a pro-con list. The biggest con I can see right now is that I would go from making 48k/yr down to whatever I can get in grants and a part-time job. I also don't know if having an M. Asc really improves my ability to get a job by that much. \n\nAnyone have any insights or experience on this?" cmilliorn (cmilliorn): "Well I don't know anything about your specific degree but do this.\n\n1. How much will it cost you? The actual degree itself , lost income and time etc.\n2. Is there a specific job you have in mind? What does it pay? \n3. What employment could you get that you can't get now?\n4. Will this new degree earn you enough money to cover the expense of the degree and is it worth the effort?\n\nIf you line all that out you'll probably answer your own question. \n\nGood luck to you " Self: "Thank you for the feedback. That's a really good way of structuring my thinking." cmilliorn (cmilliorn): "No prob as a 3rd party it's usually easier to see the solution "
User (AutoModerator): "\n### New members, please check the [PF Wiki](https://www.reddit.com/r/personalfinance/wiki/index) to see if your question might be answered there.\n\nPlease use this thread for personal finance discussions and questions which might not warrant a separate post. Please note that the subreddit rules still apply here.\n\nMake a top-level comment if you want to ask a question or start a discussion! Please don't downvote "moronic" questions!\n\nA big thank you to the many PFers who take time to answer other people's questions!\n\nFor past Weekend Discussion threads, please search the [Weekly Archive](https://www.reddit.com/r/personalfinance/search?q=Weekend+Discussion+author%3AAutoModerator&sort=new&restrict_sr=on&t=year#res-hide-options).\n" Self: "Is it a good decision to do a Master's degree in engineering financially speaking? I graduated last year with B. Eng and I've been working for the last year. I want to be able to do more technical and specific positions and I feel like with a M.ASc, I might be able to get that. But i'm still building a pro-con list. The biggest con I can see right now is that I would go from making 48k/yr down to whatever I can get in grants and a part-time job. I also don't know if having an M. Asc really improves my ability to get a job by that much. \n\nAnyone have any insights or experience on this?" Denne11 (Denne11): "Most engineering jobs only require a bachelors. Experience will be more beneficial, as will knowledge of computer programs specific to your specialty of engineering (civil, mechanical, etc.)\n\nWith a B. Eng, you may not be able to get into an engineering grad program." Self: "A B. Eng + references + GPA + an interested prof is what I understand of the formula. I have that all in line. If i wanted to I'm pretty sure that I clear the minimum requirements.\n\nThat's what I'm balancing. Getting a P. Eng would be a good career move as well. My annoyance right now is that I'm quite low down at my current company and I feel like I'm not really moving much ahead or getting much useful experience. I want the experience on my resume but when my year contract is up, I'm thinking about doing an M. ASc to get my career headed more in a direction that I want.\n" Denne11 (Denne11): "I completely read B. Eng as English, not Engineering. My bad. \n\nI think whether or not a masters will help depends on which field of engineering you're in and which field you want to go to. Start by looking for the type of job you want. See what those requirements are and the salary. If those jobs don't require a masters, or have low pay, then don't waste your time and money."
User (AutoModerator): "\n### New members, please check the [PF Wiki](https://www.reddit.com/r/personalfinance/wiki/index) to see if your question might be answered there.\n\nPlease use this thread for personal finance discussions and questions which might not warrant a separate post. Please note that the subreddit rules still apply here.\n\nMake a top-level comment if you want to ask a question or start a discussion! Please don't downvote "moronic" questions!\n\nA big thank you to the many PFers who take time to answer other people's questions!\n\nFor past Weekend Discussion threads, please search the [Weekly Archive](https://www.reddit.com/r/personalfinance/search?q=Weekend+Discussion+author%3AAutoModerator&sort=new&restrict_sr=on&t=year#res-hide-options).\n" Self: "I have a 401k matching question. I joined a new company in June and they match 100% of your first 1% and 50% on your next 5% of pay. I have been putting in the match amount, 6% and have been receiving a match of $90 every paycheck. I recently upped my contribution percentage to 10% and for some reason my match went up to $140. If I have already been contributing the match amount of 6%, why did my match cotribution go up? Wouldn't the extra 4% contributed not affect the match since I am already at the match percentage of 6%?" Downvotes-All-Memes (Downvotes-All-Memes): "Ask HR or your plan custodian"
User (AutoModerator): "\n### New members, please check the [PF Wiki](https://www.reddit.com/r/personalfinance/wiki/index) to see if your question might be answered there.\n\nPlease use this thread for personal finance discussions and questions which might not warrant a separate post. Please note that the subreddit rules still apply here.\n\nMake a top-level comment if you want to ask a question or start a discussion! Please don't downvote "moronic" questions!\n\nA big thank you to the many PFers who take time to answer other people's questions!\n\nFor past Weekend Discussion threads, please search the [Weekly Archive](https://www.reddit.com/r/personalfinance/search?q=Weekend+Discussion+author%3AAutoModerator&sort=new&restrict_sr=on&t=year#res-hide-options).\n" Self: "Having read the Tax wiki, and also being a packrat in recovery, how long should I keep things like my w2s and hard copies of my tax filings (if I use tax preparation software)?" Downvotes-All-Memes (Downvotes-All-Memes): "[This post](https://wallethacks.com/how-to-organize-your-financial-documents-once-and-for-all/) has some decent insight into this question.\n\nTL;DR 7 years." Self: "Thank you very much! I really appreciate it! "
User (AutoModerator): "\n### New members, please check the [PF Wiki](https://www.reddit.com/r/personalfinance/wiki/index) to see if your question might be answered there.\n\nPlease use this thread for personal finance discussions and questions which might not warrant a separate post. Please note that the subreddit rules still apply here.\n\nMake a top-level comment if you want to ask a question or start a discussion! Please don't downvote "moronic" questions!\n\nA big thank you to the many PFers who take time to answer other people's questions!\n\nFor past Weekend Discussion threads, please search the [Weekly Archive](https://www.reddit.com/r/personalfinance/search?q=Weekend+Discussion+author%3AAutoModerator&sort=new&restrict_sr=on&t=year#res-hide-options).\n" Self: "My company offers both traditional and Roth 401k options, and they match 100% of your first 5%, so here are my questions: \n\n1. Can I contribute to the traditional and Roth at the same time? \n2. If so, can the employer contribution go into the Roth? \n3. If so, do I then have to pay tax on the employer contribution up front?" Brye11626 (Brye11626): "> Can I contribute to the traditional and Roth at the same time?\n\nYes. There should be an option to split it (say 5% to both) when you set up your contribution schedule.\n\n> If so, can the employer contribution go into the Roth?\n\nNo. It's not allowed because a employer contribution can't really be "post tax". All employer contributions go to traditional 401k.\n\n> If so, do I then have to pay tax on the employer contribution up front?\n\nN/A since 2 isn't possible." Self: "Awesome, thanks! \n\nOne quick follow up question: does that mean I have to contribute to the traditional to get the match, or could I contribute solely to the Roth, but then have the employer contribution go into the traditional?" Brye11626 (Brye11626): "You can contribute Roth. The match will just go traditional."
User (AutoModerator): "\n### New members, please check the [PF Wiki](https://www.reddit.com/r/personalfinance/wiki/index) to see if your question might be answered there.\n\nPlease use this thread for personal finance discussions and questions which might not warrant a separate post. Please note that the subreddit rules still apply here.\n\nMake a top-level comment if you want to ask a question or start a discussion! Please don't downvote "moronic" questions!\n\nA big thank you to the many PFers who take time to answer other people's questions!\n\nFor past Weekend Discussion threads, please search the [Weekly Archive](https://www.reddit.com/r/personalfinance/search?q=Weekend+Discussion+author%3AAutoModerator&sort=new&restrict_sr=on&t=year#res-hide-options).\n" Self: "Is it a good decision to do a Master's degree in engineering financially speaking? I graduated last year with B. Eng and I've been working for the last year. I want to be able to do more technical and specific positions and I feel like with a M.ASc, I might be able to get that. But i'm still building a pro-con list. The biggest con I can see right now is that I would go from making 48k/yr down to whatever I can get in grants and a part-time job. I also don't know if having an M. Asc really improves my ability to get a job by that much. \n\nAnyone have any insights or experience on this?" cmilliorn (cmilliorn): "Well I don't know anything about your specific degree but do this.\n\n1. How much will it cost you? The actual degree itself , lost income and time etc.\n2. Is there a specific job you have in mind? What does it pay? \n3. What employment could you get that you can't get now?\n4. Will this new degree earn you enough money to cover the expense of the degree and is it worth the effort?\n\nIf you line all that out you'll probably answer your own question. \n\nGood luck to you " smokeycanoe (smokeycanoe): "Sadly it is often hard to connect the dots forward.\n\nSometimes it is only after the fact that you have a good grasp on ROI. (See Steve Jobs' Stanford commencement speech, who puts it better than I)."
User (AutoModerator): "\n### New members, please check the [PF Wiki](https://www.reddit.com/r/personalfinance/wiki/index) to see if your question might be answered there.\n\nPlease use this thread for personal finance discussions and questions which might not warrant a separate post. Please note that the subreddit rules still apply here.\n\nMake a top-level comment if you want to ask a question or start a discussion! Please don't downvote "moronic" questions!\n\nA big thank you to the many PFers who take time to answer other people's questions!\n\nFor past Weekend Discussion threads, please search the [Weekly Archive](https://www.reddit.com/r/personalfinance/search?q=Weekend+Discussion+author%3AAutoModerator&sort=new&restrict_sr=on&t=year#res-hide-options).\n" Self: "Is it a good decision to do a Master's degree in engineering financially speaking? I graduated last year with B. Eng and I've been working for the last year. I want to be able to do more technical and specific positions and I feel like with a M.ASc, I might be able to get that. But i'm still building a pro-con list. The biggest con I can see right now is that I would go from making 48k/yr down to whatever I can get in grants and a part-time job. I also don't know if having an M. Asc really improves my ability to get a job by that much. \n\nAnyone have any insights or experience on this?" smokeycanoe (smokeycanoe): "At some schools you can do a course based masters in your spare time if your employer is willing to give some flexibility. Some are even willing to help pay.\n\nAs a fellow BASc (&P.Eng.), I'll say getting a MS was one of the best decisions I ever made. Cost some opportunity at work initially (it is hard to do both concurrently), but knowledge gained has made up for it in spades. Bachelor's is the new highschool diploma.\n\nMS is how you separate yourself both credentials & knowledge." Self: "Thanks for your input. I'm really feeling what you said about a bachelor's being a high school diploma in my current position. I was shocked that the position required a B. Eng but in terms of tasks seems like it could be done by someone with just a high school education. "
User (AutoModerator): "\n### New members, please check the [PF Wiki](https://www.reddit.com/r/personalfinance/wiki/index) to see if your question might be answered there.\n\nPlease use this thread for personal finance discussions and questions which might not warrant a separate post. Please note that the subreddit rules still apply here.\n\nMake a top-level comment if you want to ask a question or start a discussion! Please don't downvote "moronic" questions!\n\nA big thank you to the many PFers who take time to answer other people's questions!\n\nFor past Weekend Discussion threads, please search the [Weekly Archive](https://www.reddit.com/r/personalfinance/search?q=Weekend+Discussion+author%3AAutoModerator&sort=new&restrict_sr=on&t=year#res-hide-options).\n" Self: "If there's an income limit on Roth IRAs that just means I can't contribute into the account anymore right, if I had a job change that put me over the limit all of the previous funds I had put into the account would still be freely available and when I retire I can still cash in on the fund" ChiantiAndFavaBeans (ChiantiAndFavaBeans): "Income limits are annual. This means that any contributions from previous years can sit in that account, you just can't add new funds (unless through a backdoor).\n\nIf you contributed this year and your income for the year will be above the limit, then you'll have to recharacterize the Roth as a Traditional IRA. You can backdoor later." Self: "What happens if you don't switch over to a traditional when you go over the income limit?" ChiantiAndFavaBeans (ChiantiAndFavaBeans): "IIRC, you pay a significant penalty every year until it's corrected"
User (AutoModerator): "\n### New members, please check the [PF Wiki](https://www.reddit.com/r/personalfinance/wiki/index) to see if your question might be answered there.\n\nPlease use this thread for personal finance discussions and questions which might not warrant a separate post. Please note that the subreddit rules still apply here.\n\nMake a top-level comment if you want to ask a question or start a discussion! Please don't downvote "moronic" questions!\n\nA big thank you to the many PFers who take time to answer other people's questions!\n\nFor past Weekend Discussion threads, please search the [Weekly Archive](https://www.reddit.com/r/personalfinance/search?q=Weekend+Discussion+author%3AAutoModerator&sort=new&restrict_sr=on&t=year#res-hide-options).\n" Self: "Late last August I got a [BofA secured credit card](https://www.nerdwallet.com/card-details/card-name/Bank-of-America-BankAmericard-Cash-Rewards-Visa-Signature) with a $300 limit (which I have since had my deposit returned and the limit upped to an incredible $500!), earlier this year I got a [Capital One](https://www.nerdwallet.com/card-details/card-name/Capital-One-Platinum-For-Average-Credit) card with a $2000 limit, and just yesterday I was approved for a [Chase](https://www.nerdwallet.com/card-details/card-name/Chase-Sapphire-Reserve) card with a $25,000 limit. I want to get rid of my other two cards now, but I believe that would have a negative impact on my credit score due to my oldest credit line now being less than a month old.\n\nShould I keep the BofA card around? It's got a yearly fee of $39. I'd really like to close it out though since I'm dumping my BofA checking account as soon as I empty it.\nThe Capital One card has no fee, but is 4 months newer." hohuligan (hohuligan): "Having more lines open will help improve your credit score, so if they don't have fees, keep them open. \n\nI would close the one with the fees though. The four months isn't going to make much of a difference long term." Self: "> The four months isn't going to make much of a difference long term.\n\nGood point, I'll close it then. I'll be glad to be done with BofA completely now. What an awful corporation they are."
User (AutoModerator): "\n### New members, please check the [PF Wiki](https://www.reddit.com/r/personalfinance/wiki/index) to see if your question might be answered there.\n\nPlease use this thread for personal finance discussions and questions which might not warrant a separate post. Please note that the subreddit rules still apply here.\n\nMake a top-level comment if you want to ask a question or start a discussion! Please don't downvote "moronic" questions!\n\nA big thank you to the many PFers who take time to answer other people's questions!\n\nFor past Weekend Discussion threads, please search the [Weekly Archive](https://www.reddit.com/r/personalfinance/search?q=Weekend+Discussion+author%3AAutoModerator&sort=new&restrict_sr=on&t=year#res-hide-options).\n" Self: "Should we put something in the Wiki (my apologies if it is there and I didn't find it in my search) or sticky about not using debit cards, almost ever? It seems like it is such a hassle if anything goes wrong with it like someone getting your information and making a withdrawal you didn't initiate." caraway602 (caraway602): "Some places don't actually accept credit cards. Example: Winco, my local grocery has a standing policy to not accept credit cards in an effort to save costs and keep their costs low. They estimate that each month they are able to save $150,000 per store by not incurring credit card processing fees. I can honestly say that these savings are passed on to the end customer. When I compare my bill there against Safeway or Walmart, I estimate that save an average of 20% each visit. \n" Self: "In that case I'd use cash."
User (AutoModerator): "\n### New members, please check the [PF Wiki](https://www.reddit.com/r/personalfinance/wiki/index) to see if your question might be answered there.\n\nPlease use this thread for personal finance discussions and questions which might not warrant a separate post. Please note that the subreddit rules still apply here.\n\nMake a top-level comment if you want to ask a question or start a discussion! Please don't downvote "moronic" questions!\n\nA big thank you to the many PFers who take time to answer other people's questions!\n\nFor past Weekend Discussion threads, please search the [Weekly Archive](https://www.reddit.com/r/personalfinance/search?q=Weekend+Discussion+author%3AAutoModerator&sort=new&restrict_sr=on&t=year#res-hide-options).\n" Self: "YNAB - y/n? Also I keep seeing over and over that it is a 1 time purchase however it explicitly states on the website \n>"Is this a one-time charge? No. You'll be billed annually. But you'll get better sleep daily."*\n\n\n Is it really worth $60 a year?" AlundraLegolasMpreg (AlundraLegolasMpreg): "I have no experience with YNAB personally, but you can poke around /r/YNAB for plenty of discussion on it.\n\nYou're seeing conflicting talk about whether YNAB is a one-off purchase or a subscription because [YNAB used to be a traditional client-side app, but recently moved to a cloud-based subscription model](https://www.reddit.com/r/ynab/wiki/faq#wiki_what_is_the_difference_between_.22ynab_4.22_and_.22nynab.22.3F). The old non-subscription model is [still available for purchase for now](https://purchase.youneedabudget.com/), but they're ending support for it at the end of the year in an attempt to move their customers towards the more lucrative subscription pricing."
User (AutoModerator): "\n### New members, please check the [PF Wiki](https://www.reddit.com/r/personalfinance/wiki/index) to see if your question might be answered there.\n\nPlease use this thread for personal finance discussions and questions which might not warrant a separate post. Please note that the subreddit rules still apply here.\n\nMake a top-level comment if you want to ask a question or start a discussion! Please don't downvote "moronic" questions!\n\nA big thank you to the many PFers who take time to answer other people's questions!\n\nFor past Weekend Discussion threads, please search the [Weekly Archive](https://www.reddit.com/r/personalfinance/search?q=Weekend+Discussion+author%3AAutoModerator&sort=new&restrict_sr=on&t=year#res-hide-options).\n" Self: "YNAB - y/n? Also I keep seeing over and over that it is a 1 time purchase however it explicitly states on the website \n>"Is this a one-time charge? No. You'll be billed annually. But you'll get better sleep daily."*\n\n\n Is it really worth $60 a year?" wishful_lizzard (wishful_lizzard): "It used to be one-time, they changed to a subscription model with the last major release."
User (tbo18): "Hey guys Im fortunate to earn an extra 5k for the coming 10 years.\nIm living in Germany and plan on investing that amount as long as I get that salary.\nwhat is the best advice in terms of funds, stocks etc?" Self: "You may find these links helpful:\n\n- ["How to handle $"](http://www.reddit.com/r/personalfinance/wiki/commontopics)\n- [Investing wiki page](http://www.reddit.com/r/personalfinance/wiki/investing)\n\nI am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/personalfinance) if you have any questions or concerns."
User (tbo18): "Hey guys Im fortunate to earn an extra 5k for the coming 10 years.\nIm living in Germany and plan on investing that amount as long as I get that salary.\nwhat is the best advice in terms of funds, stocks etc?" Self: "I have no idea how to invest money (i'm only 17 y/o) but can i ask you what you do for a living?"
User (tbo18): "Hey guys Im fortunate to earn an extra 5k for the coming 10 years.\nIm living in Germany and plan on investing that amount as long as I get that salary.\nwhat is the best advice in terms of funds, stocks etc?" Self: "The best advice is to invest only in things you understand. \nMutual funds are usually a pretty good bet but be reasonable in your earnings expectations, 6% earnings over the life of a fund is a good benchmark.\nDo your homework before you invest, know what the fund will charge you for managing your money and don't be too quick to buy what a brokerage house suggests, they often work on commission and will sometimes talk you into what ends up being a better deal for them than you! \nKnowledge is key!"
User (tbo18): "Hey guys Im fortunate to earn an extra 5k for the coming 10 years.\nIm living in Germany and plan on investing that amount as long as I get that salary.\nwhat is the best advice in terms of funds, stocks etc?" Self: "That's a very nice amount. I don't live in Germany, so I don't have the answers. A few things:\n\n1. There's also /r/Finanzen ; and [this post may help you, too](https://www.reddit.com/r/eupersonalfinance/comments/53rqol/de_how_should_i_invest_my_spare_money/).\n\n2. I thinkit's pretty useful if you spend some time on understanding what you're doing. Read books (public library!!), blogs, watch youtube videos, read information from the banks/institutions that you decide to become a client of, read their small print, etc."
User (GEDKID): "Hi, im currently in the process of getting my GED and going to community college for two years i plan on saving up at least 20k while i get my AA then i plan to move to either NY, LA, or SF when i have the 20k and a job lined up. Any steps or precautions i can think about or take to help meet my goals?" Self: "You may find these links helpful:\n\n- ["How to handle $"](http://www.reddit.com/r/personalfinance/wiki/commontopics)\n- [Investing wiki page](http://www.reddit.com/r/personalfinance/wiki/investing)\n\nI am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/personalfinance) if you have any questions or concerns."
User (GEDKID): "Hi, im currently in the process of getting my GED and going to community college for two years i plan on saving up at least 20k while i get my AA then i plan to move to either NY, LA, or SF when i have the 20k and a job lined up. Any steps or precautions i can think about or take to help meet my goals?" Self: "1.) Narrow down where you want to live to 1 or 2 places, do a LOT of research on cost of living, lifestyle, public transit, etc.\n\n2.) Be sure that your degree is in a field which has good job prospects in the region which you are planning on moving to.\n\n3.) Line up your living arrangements before you move so that you don't get there and realize that finding a rental is impossible. \n\n4.) Visit before you move. Make sure you like the area, establish a bank, living arrangement, find grocery stores, etc.\n" User (GEDKID): "Thank you, very helpful"
User (GEDKID): "Hi, im currently in the process of getting my GED and going to community college for two years i plan on saving up at least 20k while i get my AA then i plan to move to either NY, LA, or SF when i have the 20k and a job lined up. Any steps or precautions i can think about or take to help meet my goals?" Self: "So that's about $833 / month to do it in two years, $667 in 30 months.\n\nFor some people, that's not really possible. For others, they do three times that on an ongoing basis. Where do you fall in the spectrum?" User (GEDKID): "as hard as it sounds to believe its approachable for me" Self: "No reason that it wouldn't be approachable. Just set a plan and stick to it. Good luck!" User (GEDKID): "Thank you :)"
User (GEDKID): "Hi, im currently in the process of getting my GED and going to community college for two years i plan on saving up at least 20k while i get my AA then i plan to move to either NY, LA, or SF when i have the 20k and a job lined up. Any steps or precautions i can think about or take to help meet my goals?" Self: "Watch rent. Live cheaper. Fight for EVERY dollar. That means making the right decision at ALL times of the day. Don't get dragged to eating out, wasting money at bars, etc. Don't buy an iPhone 7 if you already have an iPhone 6, just to have the latest and greatest. Make sure that you aren't paying interest on your credit cards or anything. Buy those Ralph Lauren shirts at Goodwill for $6 each instead of at a department store for $70 each. Make sure that you have a job lined up, and you know exactly what you want to do, if you're going to be moving to a high cost of living city like you mention."

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