Datasets:

danielv835
/

pf_coach_v0.1

Dataset card Data Studio Files Files and versions Community

Split (2)

train · 300k rows

conversation stringlengths 56 26.4k
User (aliron): "I've put a lot of money (to me) into bond ETFs, and have been putting more and more money into stock ETFs to raise my stock-to-bond ratio. But now it just seems like too much money to lose as the market keeps going up and we're due a recession. I keep hearing about how bond ETFs are new and if they crash no one knows what's going to happen. \n\nIn the last few years, I've made more money than I ever have. I was also unemployed for long stretches of time before. I have a large amount of savings (enough for a year), and much more in an investment account. I can't help but feel my current job won't last a life time (what does anymore?) and I can't figure out the amount of risk I'd like to take. It's a lot of money to lose. Whereas in a savings account, I lose money due to inflation and there's an opportunity cost to hoarding money there--but I'd still have the cash there when I need it.\n\nMaybe I'm just a worrier. Have any of you felt this way before? How do you manage your risk?" Self: "You only lose if you sell"
User (aliron): "I've put a lot of money (to me) into bond ETFs, and have been putting more and more money into stock ETFs to raise my stock-to-bond ratio. But now it just seems like too much money to lose as the market keeps going up and we're due a recession. I keep hearing about how bond ETFs are new and if they crash no one knows what's going to happen. \n\nIn the last few years, I've made more money than I ever have. I was also unemployed for long stretches of time before. I have a large amount of savings (enough for a year), and much more in an investment account. I can't help but feel my current job won't last a life time (what does anymore?) and I can't figure out the amount of risk I'd like to take. It's a lot of money to lose. Whereas in a savings account, I lose money due to inflation and there's an opportunity cost to hoarding money there--but I'd still have the cash there when I need it.\n\nMaybe I'm just a worrier. Have any of you felt this way before? How do you manage your risk?" Self: "What type of bond ETF are you buying? Not all bonds are created equal. If you have high quality mid-to-Long duration government bonds then you will be absolutely fine in a crash. "
User (aliron): "I've put a lot of money (to me) into bond ETFs, and have been putting more and more money into stock ETFs to raise my stock-to-bond ratio. But now it just seems like too much money to lose as the market keeps going up and we're due a recession. I keep hearing about how bond ETFs are new and if they crash no one knows what's going to happen. \n\nIn the last few years, I've made more money than I ever have. I was also unemployed for long stretches of time before. I have a large amount of savings (enough for a year), and much more in an investment account. I can't help but feel my current job won't last a life time (what does anymore?) and I can't figure out the amount of risk I'd like to take. It's a lot of money to lose. Whereas in a savings account, I lose money due to inflation and there's an opportunity cost to hoarding money there--but I'd still have the cash there when I need it.\n\nMaybe I'm just a worrier. Have any of you felt this way before? How do you manage your risk?" Self: "I'm very risk averse as well. I also have over a year of cash. I've convinced myself to drop to 6 months but can't get over the fear of a near term loss. I know this is foolish, and I'll be able to ride out a recession with no problem, but I haven't pulled the trigger yet. "
User (aliron): "I've put a lot of money (to me) into bond ETFs, and have been putting more and more money into stock ETFs to raise my stock-to-bond ratio. But now it just seems like too much money to lose as the market keeps going up and we're due a recession. I keep hearing about how bond ETFs are new and if they crash no one knows what's going to happen. \n\nIn the last few years, I've made more money than I ever have. I was also unemployed for long stretches of time before. I have a large amount of savings (enough for a year), and much more in an investment account. I can't help but feel my current job won't last a life time (what does anymore?) and I can't figure out the amount of risk I'd like to take. It's a lot of money to lose. Whereas in a savings account, I lose money due to inflation and there's an opportunity cost to hoarding money there--but I'd still have the cash there when I need it.\n\nMaybe I'm just a worrier. Have any of you felt this way before? How do you manage your risk?" Self: ">Whereas in a savings account, I lose money due to inflation and there's an opportunity cost to hoarding money there--but I'd still have the cash there when I need it.\n\nIf you are a cash heavy conservative investor don't park your money in savings accounts. Buy US Treasuries. The yields are higher and are tax-free at state/local levels. The risk level is exactly the same as an FDIC insured bank deposit\n"
User (aliron): "I've put a lot of money (to me) into bond ETFs, and have been putting more and more money into stock ETFs to raise my stock-to-bond ratio. But now it just seems like too much money to lose as the market keeps going up and we're due a recession. I keep hearing about how bond ETFs are new and if they crash no one knows what's going to happen. \n\nIn the last few years, I've made more money than I ever have. I was also unemployed for long stretches of time before. I have a large amount of savings (enough for a year), and much more in an investment account. I can't help but feel my current job won't last a life time (what does anymore?) and I can't figure out the amount of risk I'd like to take. It's a lot of money to lose. Whereas in a savings account, I lose money due to inflation and there's an opportunity cost to hoarding money there--but I'd still have the cash there when I need it.\n\nMaybe I'm just a worrier. Have any of you felt this way before? How do you manage your risk?" Self: "It sounds like you are investing too aggressively for your taste. You should lower your stocks percentage and increase bonds percentage instead.\n\nFind the balance that lets you sleep at night and don't change it because "a recession is coming" supposedly. Never try to time the market." Skiinz19 (Skiinz19): "Part of his worry is how bond etfs will react to a recession." Self: "If bonds are too aggressive to be in OPs portfolio, then stocks absolutely are." Skiinz19 (Skiinz19): "His issue being the unknown nature of how bond etfs will weather a financial storm.\n\nInstead of going from stock to bond etfs, he could focus on CDs."
User (aliron): "I've put a lot of money (to me) into bond ETFs, and have been putting more and more money into stock ETFs to raise my stock-to-bond ratio. But now it just seems like too much money to lose as the market keeps going up and we're due a recession. I keep hearing about how bond ETFs are new and if they crash no one knows what's going to happen. \n\nIn the last few years, I've made more money than I ever have. I was also unemployed for long stretches of time before. I have a large amount of savings (enough for a year), and much more in an investment account. I can't help but feel my current job won't last a life time (what does anymore?) and I can't figure out the amount of risk I'd like to take. It's a lot of money to lose. Whereas in a savings account, I lose money due to inflation and there's an opportunity cost to hoarding money there--but I'd still have the cash there when I need it.\n\nMaybe I'm just a worrier. Have any of you felt this way before? How do you manage your risk?" Self: "How soon do you have to have to access the money? If you're 10+ years from retirement, don't worry about the market falling, because it will most likely come up by then. There are only a handful of ten year time frames in history where a ten year time period was down. "
User (HeadHancho): "My mom asked me to help find her a high interest savings account for her liquid assests. I've been looking around and have been reading lists like [this list from Doctor of Credit.] (https://www.doctorofcredit.com/high-interest-savings-to-get/) \n\nSome of those interest rates are really high, but I'm wondering if any of those are worth it. I have read that many of those super high interest rate accounts are only promotional and usually drop after a short time. \n\nShould I even bother with those super high interest rate accounts or go for one from Marcus or Synchrony that shouldn't drop significantly? I'm not sure how to judge varying accounts." Self: "Go with Marcus. Super simple, 1.9% APY. "
User (HeadHancho): "My mom asked me to help find her a high interest savings account for her liquid assests. I've been looking around and have been reading lists like [this list from Doctor of Credit.] (https://www.doctorofcredit.com/high-interest-savings-to-get/) \n\nSome of those interest rates are really high, but I'm wondering if any of those are worth it. I have read that many of those super high interest rate accounts are only promotional and usually drop after a short time. \n\nShould I even bother with those super high interest rate accounts or go for one from Marcus or Synchrony that shouldn't drop significantly? I'm not sure how to judge varying accounts." Self: "Don't go with online banks, buy US Treasuries like 4 week/3-month T-Bills. Their interest is tax deductible at the state level as well so effective yields can be higher if you are in a Blue State"
User (HeadHancho): "My mom asked me to help find her a high interest savings account for her liquid assests. I've been looking around and have been reading lists like [this list from Doctor of Credit.] (https://www.doctorofcredit.com/high-interest-savings-to-get/) \n\nSome of those interest rates are really high, but I'm wondering if any of those are worth it. I have read that many of those super high interest rate accounts are only promotional and usually drop after a short time. \n\nShould I even bother with those super high interest rate accounts or go for one from Marcus or Synchrony that shouldn't drop significantly? I'm not sure how to judge varying accounts." Self: "Citizens Access is at 2.12% right now and is affiliated with Citizens bank."
User (wifeymat123): "I’m currently in a managers role (lower down) in a care providing company. I currently work between 50/60 hours a week, and my wage just isn’t enough to cover my financial outgoings.\nI am in a tonne of debt due to the last care company I worked for. I need to find ways to make extra money,could anybody give me some suggestions please?!" Self: "Get a roommate or a second job. " User (wifeymat123): "I live with my parent and our house is full. I physically don’t have time for a second job as I often (2/3 times a week) do at least a 24h shift, sometimes longer. I am really stuck " CypherGingerton (CypherGingerton): "Can you lower your expenses? Buy food in bulk? Eat out less?" User (wifeymat123): "I don’t tend to eat out much, as I am always working. I don’t really buy much food either, as I don’t eat a lot. My only real outgoings for me each month is my rent, car, phone bill. My last job screwed me over so I’m a good 2/3K in debt, so the rest of my outgoings go towards that" Self: "Rent, car, phone. How much are these? What is your income?" User (wifeymat123): "My income is on average £1400/month. Rent £350 car £450 and phone is £70. Some months I may have to pay for my SO’s phone, totalling £140/month if his is included." AlmennDulnefni (AlmennDulnefni): "Try to get a similar managerial position in an industry that actually pays. "
User (wifeymat123): "I’m currently in a managers role (lower down) in a care providing company. I currently work between 50/60 hours a week, and my wage just isn’t enough to cover my financial outgoings.\nI am in a tonne of debt due to the last care company I worked for. I need to find ways to make extra money,could anybody give me some suggestions please?!" Self: "Get a roommate or a second job. " User (wifeymat123): "I live with my parent and our house is full. I physically don’t have time for a second job as I often (2/3 times a week) do at least a 24h shift, sometimes longer. I am really stuck " CypherGingerton (CypherGingerton): "Can you lower your expenses? Buy food in bulk? Eat out less?" User (wifeymat123): "I don’t tend to eat out much, as I am always working. I don’t really buy much food either, as I don’t eat a lot. My only real outgoings for me each month is my rent, car, phone bill. My last job screwed me over so I’m a good 2/3K in debt, so the rest of my outgoings go towards that" Self: "Rent, car, phone. How much are these? What is your income?" User (wifeymat123): "My income is on average £1400/month. Rent £350 car £450 and phone is £70. Some months I may have to pay for my SO’s phone, totalling £140/month if his is included." Self: "Both your car and phone sound high. You may want to look into reducing those. Your income is way low. You should be searching for a better job. " User (wifeymat123): "My car is on a 5 year finance, i took this out when money was stable in my last job months before they screwed me over. My phone is high but that’s due to the insurance I have on it, I suppose I could look at having this removed, but even so that is only an extra £15/mo saved. Ive only just got this job a couple of months ago. The wage would be sufficient if I wasn’t in as much debt as I am, but I cannot seem to get myself out of it no matter how much I scrimp and save. " Self: "Insurance on a phone is pretty much a rip off. Remove that. And the wage isn't sufficient, you're getting paid peanuts for managerial work and long hours. You also may wanna look into selling your car if you can. " User (wifeymat123): "My car is crucial to my life I couldn’t work etc without it as I live in a rural area. This is why I’m sooo stuck! Sometimes my wage is more but that’s just an average " Self: "Well I didn't mean not have a car, but clearly you can't afford the one you have. If you aren't underwater on it, it may be worth selling and using what you have to get a beater for the time being. "
User (Ashrascal): "I been helping my mom financially for the past 2 years. I'm 20 years old and I work a full-time job. We've been financially stuck for what seems like forever because after my mom got divorced with my dad he does not pay child support for my siblings even though we've been through all the legal processes. I don't mind helping my mom out until she gets back on her feet (because taking care of 3 kids by herself is a fucking lot) but I would like to be able to save or make more money on the side to feel like I won't be stuck here forever helping her. Any advice?\n\n (Also sorry if this is poorly written) " Self: "Pay yourself first. Set aside an amount to save, pay your bills, then help your mom." User (Ashrascal): "I do really try to save as much as I can. We've been overdue on some bills so she had to practically take my entire paycheck to catch up plus we have to pay rent. I was able to keep about $50 :/"
User (Ashrascal): "I been helping my mom financially for the past 2 years. I'm 20 years old and I work a full-time job. We've been financially stuck for what seems like forever because after my mom got divorced with my dad he does not pay child support for my siblings even though we've been through all the legal processes. I don't mind helping my mom out until she gets back on her feet (because taking care of 3 kids by herself is a fucking lot) but I would like to be able to save or make more money on the side to feel like I won't be stuck here forever helping her. Any advice?\n\n (Also sorry if this is poorly written) " Self: "You're a good kid. Check out the budget links. Help her set a budget now that she has a new job. It's really surprising where we spend our money, if you track it." User (Ashrascal): "Ok I will! I try to help her make one already but this will probably make it 1000x better. Thank you so much! "
User (Ashrascal): "I been helping my mom financially for the past 2 years. I'm 20 years old and I work a full-time job. We've been financially stuck for what seems like forever because after my mom got divorced with my dad he does not pay child support for my siblings even though we've been through all the legal processes. I don't mind helping my mom out until she gets back on her feet (because taking care of 3 kids by herself is a fucking lot) but I would like to be able to save or make more money on the side to feel like I won't be stuck here forever helping her. Any advice?\n\n (Also sorry if this is poorly written) " Self: "How old are your siblings? Your mom needs to increase her income and cut costs. " User (Ashrascal): "16 and 14. She just got a new job at a law firm as a receptionist. I've been trying to help her build a budget because it seems like she doesn't know how to make one herself" Self: "Ok so they are youngish. They can potentially help contribute though. They can do housework, or even at their ages get part time jobs.\n\nHelping her with a budget is probably going to help her more than any money you give her though, so keep that up for sure. Cut every cost possible. " User (Ashrascal): "They are doing their fair share of housework imo. My brother has been talking about working at some place close by so I'm gonna take him up there to see if he qualifies (age-wise) and yes I can tell that every time I make a budget with her it gives her a sense of what we're doing with it and where it's going and makes her feel better so I will continue to do that :) We're also experts at buying cheap products lol"
User (Ashrascal): "I been helping my mom financially for the past 2 years. I'm 20 years old and I work a full-time job. We've been financially stuck for what seems like forever because after my mom got divorced with my dad he does not pay child support for my siblings even though we've been through all the legal processes. I don't mind helping my mom out until she gets back on her feet (because taking care of 3 kids by herself is a fucking lot) but I would like to be able to save or make more money on the side to feel like I won't be stuck here forever helping her. Any advice?\n\n (Also sorry if this is poorly written) " Self: "Instead of giving her the money that she "needs" you need to decide what expenses you'll pay. Then just pay those and keep the rest for yourself. Otherwise the more money you make, the more money she'll need." User (Ashrascal): "That's very true. Once I started working full time she took out a huge amount more. I'll be sure to talk about that with her and budget our expenses around that :)"
User (Ashrascal): "I been helping my mom financially for the past 2 years. I'm 20 years old and I work a full-time job. We've been financially stuck for what seems like forever because after my mom got divorced with my dad he does not pay child support for my siblings even though we've been through all the legal processes. I don't mind helping my mom out until she gets back on her feet (because taking care of 3 kids by herself is a fucking lot) but I would like to be able to save or make more money on the side to feel like I won't be stuck here forever helping her. Any advice?\n\n (Also sorry if this is poorly written) " Self: "Stop helping out.\n\nYour job isn’t to help her support you.\n\nShe should be utilizing child support, welfare, food stamps, etc. \n\nIt is your moms job to support you, not the other way around. \n\nBe a kid, blow your money on what you want and save it where you want. Stop helping your mom pay for her bills. HER BILLS. \n\nEdit: as somebody else pointed out, once you start helping her pay, she’ll always seem to need help and want access to your money. Put your foot down and stop giving her money. "
User (NeverCallMeIshmael): "Throw Away as this is private financial information. \n\nI’m a 40 yr old Federal employee in need of some guidance on my specific situation. \n\nAssets: 120K between government TSP (401K) and Rollover IRA; 10K in liquid savings account @ 1.85% APR.\nLiabilities: 9K remaining grad school loan @ 4.08%; 23K balance remaining on new car loan 3 yr term @ 2.29% (bought recently with 7K downpayment and monthly payment of $750)\nIncome: 102K per yr\nExpenses: I pay about $1050 each month on debt service, and $945 for rent. Food/entertainment/utilities/phone all kept very reasonable so that I am able to save about 1500-2000 per month. I also contribute 5% of my salary to TSP, which is fully matched by the government.\nCredit: Excellent credit score at around 820.\nBackground: Grew up poor and have no safety net in the form of parental help (they’ll probably need my financial help as they continue to age).\n\nI realize at age 40 that I don’t have a super impressive financial picture, although it’s also not terrible. The reason I’m not doing better ties back to a nasty divorce about 6 years ago during which I essentially walked away from everything in order to get out of a really toxic relationship. No regrets there, but it did result in a major reset that involved a lot of divorce debt (lawyers, new furniture, settlement, car, moving expenses, etc.). Also did some traveling that I should have skipped until I was on a better financial footing. All that’s in the past and I’m now determined to save and be more responsible. \n\nNow I’ll come to the main point of this post. I am about to marry a 33 yr old woman whom I’ve been living with for 3 yrs and dating for 4.5 yrs. She has the following financial picture:\n\nAssets: None besides her defined-benefit pension plan at work.\nLiabilities: 31K in consumer debt (recently consolidated all her cc debt which was previously APR @ 23%, now reduced down to 11%); 61K in student loan debt (rates unclear but she says loans are at 6-8% APR).\nIncome: 62K per yr\nCredit: Good around 750\nBackground: Also from a poor family with parents who may need some help financially a few yrs down the line.\n\nShe knows she’s made some really bad choices, particularly in regards to the the 31K consumer debt. In the past six months she’s curbed her spending, consolidated the high interest cc debt, acknowledged the mistakes she’s made with living way beyond her means, and has felt a lot of guilt and embarrassment over the mistakes. I feel confident that she’s seen the light.\n\nI’m hoping for some guidance on how I can intervene and help bail her out - or even whether I should intervene at all. The way I view it is we are a team and this is now my problem. For example, we may want to buy a home with FHA loan in the next couple years, which means even if I apply for the mortgage without her, our Debt-to-Income will be viewed jointly for that type of loan, which would probably result in us being rejected on account of her DTI. \n\nMy ideas on how to help: I could take a loan against my TSP retirement account to pay off her consumer debt, which she would then repay to me with interest at the G Fund rate @ 2.5% or so. That would still leave a ton of student loan debt, but at least the higher interest consumer debt would be wiped out. TSP loans don’t count against DTI so that would really improve our ability to get the FHA. There is, however, the opportunity cost I would incur from taking that money out of the market and only receiving the 2.5% G fund interest rate instead of the much higher potential gains I would likely experience in the mutual funds. \n\nAnother idea I had was to transfer her some or all of her 11% consumer debt over to a zero percent cc in my name, which she would then make monthly payments on to pay down within the term (we wouldn’t transfer more than she could realistically repay within the term, which would probably be 18 months). This may take my credit score down a bit, but probably not a ton and it would only be temporary. \n\nAny feedback on my ideas or other ideas you have are desired. " Self: ">She knows she’s made some really bad choices, particularly in regards to the the 31K consumer debt. In the past six months she’s curbed her spending, consolidated the high interest cc debt, acknowledged the mistakes she’s made with living way beyond her means, and has felt a lot of guilt and embarrassment over the mistakes. I feel confident that she’s seen the light.\n\nI hope you're right. but time will tell. \n\n>I’m hoping for some guidance on how I can intervene and help bail her out -\n\ndon't bail her out. that's how you help her. \n\ndon't do more than she does. she needs to sort through this, without someone else bailing her out. \n\nshe needs to feel some pain and discomfort. she needs to feel the consequences of her decisions. if you bail her out, it prevents her from feeling the necessary pain to avoid this making the same choices. \n\n>My ideas on how to help: I could take a loan against my TSP retirement account \n\nNo. Nooooooooooooooooooooooooooooooooooooo. \n\ninterest rate is not the point. you're missing the big picture. she needs to feel the pain. She needs to fix this, herself. she needs to struggle. she needs to work overtime. she needs to not eat out for a solid year, and live on ramen and stitch up the holes in her socks because there's no money for new clothes. that's how she will avoid this sort of behavior in the future. \n\nyou need to stand to the side, offering advice and encouragement. \n\nif you want, the most you should possibly be doing is something like paying 50 cents on the dollar. she cuts her expenses, she works extra shifts, and she pays down $1000 in debt, you pay $500. she pays another $1000, you pay another $500. this re-enforces positive steps she's taking, but does not bail her out. if she stops paying towards debt, you stop paying. \n\n>Another idea I had was to transfer her some or all of her 11% consumer debt over to a zero percent cc in my name\n\nagain, your heart is in the right place but this will be counter-productive. she needs to do this. if her credit is shot and she's stuck with 11% interest rates as the best she can get, that's the consequence of her behavior. she needs to feel the pain and discomfort of her choices. \n\nif you two get married, you are simply not going to be able to buy a house for a few years. that's another consequence (notice a trend here? I'm big on consequences. lots of addicts in my family. I learned the hard way to never protect people from the consequences of their choices, and never do more for them than they're doing for themselves). \n\nyou two might want to take the Financial Peace University classes from Dave Ramsey, the radio host and best-selling author. he's the king of financial boot camp: making and sticking to a budget, paying off debt, etc. \n\nhttps://www.youtube.com/watch?v=sAV7Nsxv2ng&list=PLlkeyjq6Mjc7AGjo9fw6nioajfq1Wd02w\n" jsbhsv33 (jsbhsv33): "I wish I could up vote this more. “Live like no one else, so you can live like no one else.” Snowball the debt. \n\nAlso, if your job requires a clearance (never answer that question), Heavy debt is a negative indicator. It could cost you your job due to you being able to hold a clearance. IMHO. "
User (NeverCallMeIshmael): "Throw Away as this is private financial information. \n\nI’m a 40 yr old Federal employee in need of some guidance on my specific situation. \n\nAssets: 120K between government TSP (401K) and Rollover IRA; 10K in liquid savings account @ 1.85% APR.\nLiabilities: 9K remaining grad school loan @ 4.08%; 23K balance remaining on new car loan 3 yr term @ 2.29% (bought recently with 7K downpayment and monthly payment of $750)\nIncome: 102K per yr\nExpenses: I pay about $1050 each month on debt service, and $945 for rent. Food/entertainment/utilities/phone all kept very reasonable so that I am able to save about 1500-2000 per month. I also contribute 5% of my salary to TSP, which is fully matched by the government.\nCredit: Excellent credit score at around 820.\nBackground: Grew up poor and have no safety net in the form of parental help (they’ll probably need my financial help as they continue to age).\n\nI realize at age 40 that I don’t have a super impressive financial picture, although it’s also not terrible. The reason I’m not doing better ties back to a nasty divorce about 6 years ago during which I essentially walked away from everything in order to get out of a really toxic relationship. No regrets there, but it did result in a major reset that involved a lot of divorce debt (lawyers, new furniture, settlement, car, moving expenses, etc.). Also did some traveling that I should have skipped until I was on a better financial footing. All that’s in the past and I’m now determined to save and be more responsible. \n\nNow I’ll come to the main point of this post. I am about to marry a 33 yr old woman whom I’ve been living with for 3 yrs and dating for 4.5 yrs. She has the following financial picture:\n\nAssets: None besides her defined-benefit pension plan at work.\nLiabilities: 31K in consumer debt (recently consolidated all her cc debt which was previously APR @ 23%, now reduced down to 11%); 61K in student loan debt (rates unclear but she says loans are at 6-8% APR).\nIncome: 62K per yr\nCredit: Good around 750\nBackground: Also from a poor family with parents who may need some help financially a few yrs down the line.\n\nShe knows she’s made some really bad choices, particularly in regards to the the 31K consumer debt. In the past six months she’s curbed her spending, consolidated the high interest cc debt, acknowledged the mistakes she’s made with living way beyond her means, and has felt a lot of guilt and embarrassment over the mistakes. I feel confident that she’s seen the light.\n\nI’m hoping for some guidance on how I can intervene and help bail her out - or even whether I should intervene at all. The way I view it is we are a team and this is now my problem. For example, we may want to buy a home with FHA loan in the next couple years, which means even if I apply for the mortgage without her, our Debt-to-Income will be viewed jointly for that type of loan, which would probably result in us being rejected on account of her DTI. \n\nMy ideas on how to help: I could take a loan against my TSP retirement account to pay off her consumer debt, which she would then repay to me with interest at the G Fund rate @ 2.5% or so. That would still leave a ton of student loan debt, but at least the higher interest consumer debt would be wiped out. TSP loans don’t count against DTI so that would really improve our ability to get the FHA. There is, however, the opportunity cost I would incur from taking that money out of the market and only receiving the 2.5% G fund interest rate instead of the much higher potential gains I would likely experience in the mutual funds. \n\nAnother idea I had was to transfer her some or all of her 11% consumer debt over to a zero percent cc in my name, which she would then make monthly payments on to pay down within the term (we wouldn’t transfer more than she could realistically repay within the term, which would probably be 18 months). This may take my credit score down a bit, but probably not a ton and it would only be temporary. \n\nAny feedback on my ideas or other ideas you have are desired. " Self: "I would advise against using your retirement accounts or your credit to pay off her debt; I do understand your view about doing this as a team, but that makes for a messy situation. While currently you are contemplating marriage and a life together, you may end up with a divorce situation down the road that's more toxic than the past.\n\nCouple of thoughts for you to consider.\n1) Defer your marriage until the situation is better sorted out; that way, if you choose to buy a home, you don't get automatically stuck with DTI being jointly viewed.\n2) With her gross at 62K (and takehome probably around 45K) - the debt of 31K from cc and 61K from student loans are about 2-3 years intensive payment. You may want to think about providing living support (you pay the rent / utilities etc. and other shared expenses, so she can maximize repayment of the debt; if for some reason she doesn't pay it down or there's a separation, the only thing you're out is the expenses you already paid).\n3) 0% Balance transfer : If her credit score is good (750) - there's no reason she can't get that and pay down part of the debt. She may not get the full 31K, but every bit helps.\n\nIf over two years she's able to pay it down substantially or fully, you know you've got a partner on the same path as you; augurs well for marriage. If not - then you've at least kept your finances free." User (NeverCallMeIshmael): "While #1 is a non-starter (we already have a wedding date), #2 and #3 are most certainly approaches I will look at. I esp. like #3 because, you're right, her credit is probably good enough to get at least a better rate than 11% on the consumer date. Thank for for sharing your thoughts on this, they were helpful and insightful."
User (NeverCallMeIshmael): "Throw Away as this is private financial information. \n\nI’m a 40 yr old Federal employee in need of some guidance on my specific situation. \n\nAssets: 120K between government TSP (401K) and Rollover IRA; 10K in liquid savings account @ 1.85% APR.\nLiabilities: 9K remaining grad school loan @ 4.08%; 23K balance remaining on new car loan 3 yr term @ 2.29% (bought recently with 7K downpayment and monthly payment of $750)\nIncome: 102K per yr\nExpenses: I pay about $1050 each month on debt service, and $945 for rent. Food/entertainment/utilities/phone all kept very reasonable so that I am able to save about 1500-2000 per month. I also contribute 5% of my salary to TSP, which is fully matched by the government.\nCredit: Excellent credit score at around 820.\nBackground: Grew up poor and have no safety net in the form of parental help (they’ll probably need my financial help as they continue to age).\n\nI realize at age 40 that I don’t have a super impressive financial picture, although it’s also not terrible. The reason I’m not doing better ties back to a nasty divorce about 6 years ago during which I essentially walked away from everything in order to get out of a really toxic relationship. No regrets there, but it did result in a major reset that involved a lot of divorce debt (lawyers, new furniture, settlement, car, moving expenses, etc.). Also did some traveling that I should have skipped until I was on a better financial footing. All that’s in the past and I’m now determined to save and be more responsible. \n\nNow I’ll come to the main point of this post. I am about to marry a 33 yr old woman whom I’ve been living with for 3 yrs and dating for 4.5 yrs. She has the following financial picture:\n\nAssets: None besides her defined-benefit pension plan at work.\nLiabilities: 31K in consumer debt (recently consolidated all her cc debt which was previously APR @ 23%, now reduced down to 11%); 61K in student loan debt (rates unclear but she says loans are at 6-8% APR).\nIncome: 62K per yr\nCredit: Good around 750\nBackground: Also from a poor family with parents who may need some help financially a few yrs down the line.\n\nShe knows she’s made some really bad choices, particularly in regards to the the 31K consumer debt. In the past six months she’s curbed her spending, consolidated the high interest cc debt, acknowledged the mistakes she’s made with living way beyond her means, and has felt a lot of guilt and embarrassment over the mistakes. I feel confident that she’s seen the light.\n\nI’m hoping for some guidance on how I can intervene and help bail her out - or even whether I should intervene at all. The way I view it is we are a team and this is now my problem. For example, we may want to buy a home with FHA loan in the next couple years, which means even if I apply for the mortgage without her, our Debt-to-Income will be viewed jointly for that type of loan, which would probably result in us being rejected on account of her DTI. \n\nMy ideas on how to help: I could take a loan against my TSP retirement account to pay off her consumer debt, which she would then repay to me with interest at the G Fund rate @ 2.5% or so. That would still leave a ton of student loan debt, but at least the higher interest consumer debt would be wiped out. TSP loans don’t count against DTI so that would really improve our ability to get the FHA. There is, however, the opportunity cost I would incur from taking that money out of the market and only receiving the 2.5% G fund interest rate instead of the much higher potential gains I would likely experience in the mutual funds. \n\nAnother idea I had was to transfer her some or all of her 11% consumer debt over to a zero percent cc in my name, which she would then make monthly payments on to pay down within the term (we wouldn’t transfer more than she could realistically repay within the term, which would probably be 18 months). This may take my credit score down a bit, but probably not a ton and it would only be temporary. \n\nAny feedback on my ideas or other ideas you have are desired. " Self: "Don’t go into debt to pay her debt. \n\nWhy don’t you just make higher payments on the CCs? You make a good wage. Either combine finances and pay off her debt together or you can take over household bills so she can make mich bigger payments and pay it off sooner. \n\nDon’t mess around with bandaids like borrowing from your retirement or new cards. Buckle down and pay that shit off.\n\nEdit to add: you aren’t going to be her dad, you’re going to be her partner. Dads dole out consequences and teach lessons, partners conquer problems together. 100% make sure she understands that the debt is a problem, but please don’t just stand back and let her suffer to “teach her a lesson.”" User (NeverCallMeIshmael): "I think you're right about not going into debt for her, and hence transferring her debt to a zero percent cc in my name is a bad idea. However, my thinking on the TSP is that I'd essentially be borrowing from myself, thereby helping her/us avoid paying the high 11 percent interest over the approx 2-3 years it would take to pay off the 30K consumer debt. Aside from the opportunity cost of making the loan, there's not really other costs associated with that approach. You have given me something to consider in terms of just pitching in directly to pay off the debt. I don't want to punish her and, as mentioned above, she has a lot of guilt over her mistakes already. Thanks for the input." Self: "Together you make 160kish per year. If you guys live off half that and pay off the debt with the rest you’ll be golden.\n\nTo be fair, I would recommend being married before pitching that much in against her debt, but it’s really a choice only you can make. \n\n"
User (NeverCallMeIshmael): "Throw Away as this is private financial information. \n\nI’m a 40 yr old Federal employee in need of some guidance on my specific situation. \n\nAssets: 120K between government TSP (401K) and Rollover IRA; 10K in liquid savings account @ 1.85% APR.\nLiabilities: 9K remaining grad school loan @ 4.08%; 23K balance remaining on new car loan 3 yr term @ 2.29% (bought recently with 7K downpayment and monthly payment of $750)\nIncome: 102K per yr\nExpenses: I pay about $1050 each month on debt service, and $945 for rent. Food/entertainment/utilities/phone all kept very reasonable so that I am able to save about 1500-2000 per month. I also contribute 5% of my salary to TSP, which is fully matched by the government.\nCredit: Excellent credit score at around 820.\nBackground: Grew up poor and have no safety net in the form of parental help (they’ll probably need my financial help as they continue to age).\n\nI realize at age 40 that I don’t have a super impressive financial picture, although it’s also not terrible. The reason I’m not doing better ties back to a nasty divorce about 6 years ago during which I essentially walked away from everything in order to get out of a really toxic relationship. No regrets there, but it did result in a major reset that involved a lot of divorce debt (lawyers, new furniture, settlement, car, moving expenses, etc.). Also did some traveling that I should have skipped until I was on a better financial footing. All that’s in the past and I’m now determined to save and be more responsible. \n\nNow I’ll come to the main point of this post. I am about to marry a 33 yr old woman whom I’ve been living with for 3 yrs and dating for 4.5 yrs. She has the following financial picture:\n\nAssets: None besides her defined-benefit pension plan at work.\nLiabilities: 31K in consumer debt (recently consolidated all her cc debt which was previously APR @ 23%, now reduced down to 11%); 61K in student loan debt (rates unclear but she says loans are at 6-8% APR).\nIncome: 62K per yr\nCredit: Good around 750\nBackground: Also from a poor family with parents who may need some help financially a few yrs down the line.\n\nShe knows she’s made some really bad choices, particularly in regards to the the 31K consumer debt. In the past six months she’s curbed her spending, consolidated the high interest cc debt, acknowledged the mistakes she’s made with living way beyond her means, and has felt a lot of guilt and embarrassment over the mistakes. I feel confident that she’s seen the light.\n\nI’m hoping for some guidance on how I can intervene and help bail her out - or even whether I should intervene at all. The way I view it is we are a team and this is now my problem. For example, we may want to buy a home with FHA loan in the next couple years, which means even if I apply for the mortgage without her, our Debt-to-Income will be viewed jointly for that type of loan, which would probably result in us being rejected on account of her DTI. \n\nMy ideas on how to help: I could take a loan against my TSP retirement account to pay off her consumer debt, which she would then repay to me with interest at the G Fund rate @ 2.5% or so. That would still leave a ton of student loan debt, but at least the higher interest consumer debt would be wiped out. TSP loans don’t count against DTI so that would really improve our ability to get the FHA. There is, however, the opportunity cost I would incur from taking that money out of the market and only receiving the 2.5% G fund interest rate instead of the much higher potential gains I would likely experience in the mutual funds. \n\nAnother idea I had was to transfer her some or all of her 11% consumer debt over to a zero percent cc in my name, which she would then make monthly payments on to pay down within the term (we wouldn’t transfer more than she could realistically repay within the term, which would probably be 18 months). This may take my credit score down a bit, but probably not a ton and it would only be temporary. \n\nAny feedback on my ideas or other ideas you have are desired. " Self: ">She knows she’s made some really bad choices, particularly in regards to the the 31K consumer debt. In the past six months she’s curbed her spending, consolidated the high interest cc debt, acknowledged the mistakes she’s made with living way beyond her means, and has felt a lot of guilt and embarrassment over the mistakes. I feel confident that she’s seen the light.\n\nI hope you're right. but time will tell. \n\n>I’m hoping for some guidance on how I can intervene and help bail her out -\n\ndon't bail her out. that's how you help her. \n\ndon't do more than she does. she needs to sort through this, without someone else bailing her out. \n\nshe needs to feel some pain and discomfort. she needs to feel the consequences of her decisions. if you bail her out, it prevents her from feeling the necessary pain to avoid this making the same choices. \n\n>My ideas on how to help: I could take a loan against my TSP retirement account \n\nNo. Nooooooooooooooooooooooooooooooooooooo. \n\ninterest rate is not the point. you're missing the big picture. she needs to feel the pain. She needs to fix this, herself. she needs to struggle. she needs to work overtime. she needs to not eat out for a solid year, and live on ramen and stitch up the holes in her socks because there's no money for new clothes. that's how she will avoid this sort of behavior in the future. \n\nyou need to stand to the side, offering advice and encouragement. \n\nif you want, the most you should possibly be doing is something like paying 50 cents on the dollar. she cuts her expenses, she works extra shifts, and she pays down $1000 in debt, you pay $500. she pays another $1000, you pay another $500. this re-enforces positive steps she's taking, but does not bail her out. if she stops paying towards debt, you stop paying. \n\n>Another idea I had was to transfer her some or all of her 11% consumer debt over to a zero percent cc in my name\n\nagain, your heart is in the right place but this will be counter-productive. she needs to do this. if her credit is shot and she's stuck with 11% interest rates as the best she can get, that's the consequence of her behavior. she needs to feel the pain and discomfort of her choices. \n\nif you two get married, you are simply not going to be able to buy a house for a few years. that's another consequence (notice a trend here? I'm big on consequences. lots of addicts in my family. I learned the hard way to never protect people from the consequences of their choices, and never do more for them than they're doing for themselves). \n\nyou two might want to take the Financial Peace University classes from Dave Ramsey, the radio host and best-selling author. he's the king of financial boot camp: making and sticking to a budget, paying off debt, etc. \n\nhttps://www.youtube.com/watch?v=sAV7Nsxv2ng&list=PLlkeyjq6Mjc7AGjo9fw6nioajfq1Wd02w\n" User (NeverCallMeIshmael): "I can appreciate your perspective on this. Maybe she does need to learn the hard way. That said, we are partners and our fates, financial and otherwise, will be tethered. So her pain will transfer to me. Her having to pay that 30K 11% consumer loan off over 2-3 years would be about 10K or so less into our family's future. I've had addicts in my life as well, and so I've been on some level feeling like there needs to be a consequence, otherwise she won't learn. But I've also learned to forgive people as long as I can trust that they've truly learned lessons and atoned. I am no so naive as I was during my first, toxic marriage mentioned above. My compass is much better tuned and I believe she has learned and won't repeat these mistakes. Thanks for your input and I will definitely check out the Dave Ramsey link."
User (NeverCallMeIshmael): "Throw Away as this is private financial information. \n\nI’m a 40 yr old Federal employee in need of some guidance on my specific situation. \n\nAssets: 120K between government TSP (401K) and Rollover IRA; 10K in liquid savings account @ 1.85% APR.\nLiabilities: 9K remaining grad school loan @ 4.08%; 23K balance remaining on new car loan 3 yr term @ 2.29% (bought recently with 7K downpayment and monthly payment of $750)\nIncome: 102K per yr\nExpenses: I pay about $1050 each month on debt service, and $945 for rent. Food/entertainment/utilities/phone all kept very reasonable so that I am able to save about 1500-2000 per month. I also contribute 5% of my salary to TSP, which is fully matched by the government.\nCredit: Excellent credit score at around 820.\nBackground: Grew up poor and have no safety net in the form of parental help (they’ll probably need my financial help as they continue to age).\n\nI realize at age 40 that I don’t have a super impressive financial picture, although it’s also not terrible. The reason I’m not doing better ties back to a nasty divorce about 6 years ago during which I essentially walked away from everything in order to get out of a really toxic relationship. No regrets there, but it did result in a major reset that involved a lot of divorce debt (lawyers, new furniture, settlement, car, moving expenses, etc.). Also did some traveling that I should have skipped until I was on a better financial footing. All that’s in the past and I’m now determined to save and be more responsible. \n\nNow I’ll come to the main point of this post. I am about to marry a 33 yr old woman whom I’ve been living with for 3 yrs and dating for 4.5 yrs. She has the following financial picture:\n\nAssets: None besides her defined-benefit pension plan at work.\nLiabilities: 31K in consumer debt (recently consolidated all her cc debt which was previously APR @ 23%, now reduced down to 11%); 61K in student loan debt (rates unclear but she says loans are at 6-8% APR).\nIncome: 62K per yr\nCredit: Good around 750\nBackground: Also from a poor family with parents who may need some help financially a few yrs down the line.\n\nShe knows she’s made some really bad choices, particularly in regards to the the 31K consumer debt. In the past six months she’s curbed her spending, consolidated the high interest cc debt, acknowledged the mistakes she’s made with living way beyond her means, and has felt a lot of guilt and embarrassment over the mistakes. I feel confident that she’s seen the light.\n\nI’m hoping for some guidance on how I can intervene and help bail her out - or even whether I should intervene at all. The way I view it is we are a team and this is now my problem. For example, we may want to buy a home with FHA loan in the next couple years, which means even if I apply for the mortgage without her, our Debt-to-Income will be viewed jointly for that type of loan, which would probably result in us being rejected on account of her DTI. \n\nMy ideas on how to help: I could take a loan against my TSP retirement account to pay off her consumer debt, which she would then repay to me with interest at the G Fund rate @ 2.5% or so. That would still leave a ton of student loan debt, but at least the higher interest consumer debt would be wiped out. TSP loans don’t count against DTI so that would really improve our ability to get the FHA. There is, however, the opportunity cost I would incur from taking that money out of the market and only receiving the 2.5% G fund interest rate instead of the much higher potential gains I would likely experience in the mutual funds. \n\nAnother idea I had was to transfer her some or all of her 11% consumer debt over to a zero percent cc in my name, which she would then make monthly payments on to pay down within the term (we wouldn’t transfer more than she could realistically repay within the term, which would probably be 18 months). This may take my credit score down a bit, but probably not a ton and it would only be temporary. \n\nAny feedback on my ideas or other ideas you have are desired. " Self: "I’m following this intently, as I’m in a similar position, albeit with my wife’s student loans. I recently had her put statements from all accounts on the table so we could rework our budget, and found out her “about $50k” in student loans is really about $75k.\n\nSomething that would have saved a lot of mental anguish, is if I had this information years ago - it wouldn’t have changed us marrying, but a lot of choices over the last few years would have been different. Make sure you have the full picture of all her debts, and try to get her to buy-in to whatever solution you work out together. Good luck!"
User (NeverCallMeIshmael): "Throw Away as this is private financial information. \n\nI’m a 40 yr old Federal employee in need of some guidance on my specific situation. \n\nAssets: 120K between government TSP (401K) and Rollover IRA; 10K in liquid savings account @ 1.85% APR.\nLiabilities: 9K remaining grad school loan @ 4.08%; 23K balance remaining on new car loan 3 yr term @ 2.29% (bought recently with 7K downpayment and monthly payment of $750)\nIncome: 102K per yr\nExpenses: I pay about $1050 each month on debt service, and $945 for rent. Food/entertainment/utilities/phone all kept very reasonable so that I am able to save about 1500-2000 per month. I also contribute 5% of my salary to TSP, which is fully matched by the government.\nCredit: Excellent credit score at around 820.\nBackground: Grew up poor and have no safety net in the form of parental help (they’ll probably need my financial help as they continue to age).\n\nI realize at age 40 that I don’t have a super impressive financial picture, although it’s also not terrible. The reason I’m not doing better ties back to a nasty divorce about 6 years ago during which I essentially walked away from everything in order to get out of a really toxic relationship. No regrets there, but it did result in a major reset that involved a lot of divorce debt (lawyers, new furniture, settlement, car, moving expenses, etc.). Also did some traveling that I should have skipped until I was on a better financial footing. All that’s in the past and I’m now determined to save and be more responsible. \n\nNow I’ll come to the main point of this post. I am about to marry a 33 yr old woman whom I’ve been living with for 3 yrs and dating for 4.5 yrs. She has the following financial picture:\n\nAssets: None besides her defined-benefit pension plan at work.\nLiabilities: 31K in consumer debt (recently consolidated all her cc debt which was previously APR @ 23%, now reduced down to 11%); 61K in student loan debt (rates unclear but she says loans are at 6-8% APR).\nIncome: 62K per yr\nCredit: Good around 750\nBackground: Also from a poor family with parents who may need some help financially a few yrs down the line.\n\nShe knows she’s made some really bad choices, particularly in regards to the the 31K consumer debt. In the past six months she’s curbed her spending, consolidated the high interest cc debt, acknowledged the mistakes she’s made with living way beyond her means, and has felt a lot of guilt and embarrassment over the mistakes. I feel confident that she’s seen the light.\n\nI’m hoping for some guidance on how I can intervene and help bail her out - or even whether I should intervene at all. The way I view it is we are a team and this is now my problem. For example, we may want to buy a home with FHA loan in the next couple years, which means even if I apply for the mortgage without her, our Debt-to-Income will be viewed jointly for that type of loan, which would probably result in us being rejected on account of her DTI. \n\nMy ideas on how to help: I could take a loan against my TSP retirement account to pay off her consumer debt, which she would then repay to me with interest at the G Fund rate @ 2.5% or so. That would still leave a ton of student loan debt, but at least the higher interest consumer debt would be wiped out. TSP loans don’t count against DTI so that would really improve our ability to get the FHA. There is, however, the opportunity cost I would incur from taking that money out of the market and only receiving the 2.5% G fund interest rate instead of the much higher potential gains I would likely experience in the mutual funds. \n\nAnother idea I had was to transfer her some or all of her 11% consumer debt over to a zero percent cc in my name, which she would then make monthly payments on to pay down within the term (we wouldn’t transfer more than she could realistically repay within the term, which would probably be 18 months). This may take my credit score down a bit, but probably not a ton and it would only be temporary. \n\nAny feedback on my ideas or other ideas you have are desired. " Self: "Take over living expenses. Have her put 100% of her income toward her debt. After a year the debt is half gone." User (NeverCallMeIshmael): "This is worthy of serious consideration. I do worry a little that I may get resentful, but that's my issue to work out. I really do just want move forward without dwelling on the mistakes from her past, and her and I are a team. Thanks for your thoughts." Self: "1. You (as a couple) will save money on interest.\n2. She will still see the effects of debt by putting all of her money toward it.\n3. You (personally) will be more resentful if you two have kids soon and she wants to stay home and you end up paying off the debt she incurred before marriage."
User (ApplePonyEater): "So this will be my first year paying property taxes, and I have some questions on the process of paying them.\n\nHow do I know when they're due? Will I get a notice in the mail?\n\nHow do I know how much I owe? Will I be notified of this?\n\nHow can I pay it? Do I need to go somewhere? Can I do it through something like TurboTax?" Self: "This will vary by your local authority, so we have no idea. Where I live you can view it all online, but they mail out notices too.\n\nIt might be included in your mortgage's escrow process, so you don't do it at all." User (ApplePonyEater): "Well, it gives me a place to start looking, thank you!"
User (ApplePonyEater): "So this will be my first year paying property taxes, and I have some questions on the process of paying them.\n\nHow do I know when they're due? Will I get a notice in the mail?\n\nHow do I know how much I owe? Will I be notified of this?\n\nHow can I pay it? Do I need to go somewhere? Can I do it through something like TurboTax?" Self: "I get the bill in the mail. Then you will have option to pay in single or two installments.\n\nYou can look at the property tax statement in the county website and search by your home address. At least I could that for my county." User (ApplePonyEater): "I'll give that a shot, thank you!"
User (ApplePonyEater): "So this will be my first year paying property taxes, and I have some questions on the process of paying them.\n\nHow do I know when they're due? Will I get a notice in the mail?\n\nHow do I know how much I owe? Will I be notified of this?\n\nHow can I pay it? Do I need to go somewhere? Can I do it through something like TurboTax?" Self: "Depends. One of our houses we get a bill in the mail and pay at that time, our other house has it built into the escrow. First step would probably be to call your lender and find out if it’s included in escrow. If it’s not, you will get a bill. "
User (ApplePonyEater): "So this will be my first year paying property taxes, and I have some questions on the process of paying them.\n\nHow do I know when they're due? Will I get a notice in the mail?\n\nHow do I know how much I owe? Will I be notified of this?\n\nHow can I pay it? Do I need to go somewhere? Can I do it through something like TurboTax?" Self: "You're likely to have a special one time supplemental property tax that won't be taken out of escrow. Depends on the county."
User (ApplePonyEater): "So this will be my first year paying property taxes, and I have some questions on the process of paying them.\n\nHow do I know when they're due? Will I get a notice in the mail?\n\nHow do I know how much I owe? Will I be notified of this?\n\nHow can I pay it? Do I need to go somewhere? Can I do it through something like TurboTax?" Self: "Your county's Assessor/Tax Collector office will send you a bill for your property tax. Depending on what county you're in, you can get an online copy of the bill from the collector's office.\n\nYour mortgage may include an escrow, where you pay a portion every month with your mortgage and the lender pays the bill in the end. If it does, your lender should be able to show you your escrow balance.\n\nIf your mortgage doesn't include the escrow, then you have to pay it yourself. You'll get a "supplemental" bill a few months after you purchase your property, and then you'll get a regular annual bill. (The annual bills are coming out right about now -- I just got mine last week).\n\nIn California, the tax is due in two equal payments, the first payment is due by December 10th and the second payment is due by April 10th. You can probably pay online at your tax collector's website."
User (ApplePonyEater): "So this will be my first year paying property taxes, and I have some questions on the process of paying them.\n\nHow do I know when they're due? Will I get a notice in the mail?\n\nHow do I know how much I owe? Will I be notified of this?\n\nHow can I pay it? Do I need to go somewhere? Can I do it through something like TurboTax?" Self: "Always pay the exact amount it says to pay under "Amount Due." We were overcharged/overpaid the first two years due to a reassessment in our favor (if it's in their favor, they reassess immediately; in yours, they take up to 3 years). We received a statement that said exactly how much we had overpaid, so we subtracted that amount from the amount due and sent it in 3 weeks early. \n\nTwo weeks after the due date, our bank notifies us that our PT payment has been rejected, and two days later we get a new bill for the full amount we were supposed to pay, plus an ass-raping penalty charge. A couple weeks after the payment + late fee went through, we received two checks in the mail (a few days apart from each other) one for the first year's overpayment and one for the second year's overpayment. The refunds combined came out to roughly $200 more than the late penalty cost. \n\nBureaucracies— sheesh! "
User (ApplePonyEater): "So this will be my first year paying property taxes, and I have some questions on the process of paying them.\n\nHow do I know when they're due? Will I get a notice in the mail?\n\nHow do I know how much I owe? Will I be notified of this?\n\nHow can I pay it? Do I need to go somewhere? Can I do it through something like TurboTax?" Self: "You will get a bill from your County Assessor's Office indicating your tax liability and when it's due. I just received mine (California). Due dates are county dependent but generally the first installment is due in the beginning of December and the second one is due in the beginning of April.\n\nYou could also contact your County Assessor's Office in order to confirm your tax liability and to ensure they have your correct information. "
User (ApplePonyEater): "So this will be my first year paying property taxes, and I have some questions on the process of paying them.\n\nHow do I know when they're due? Will I get a notice in the mail?\n\nHow do I know how much I owe? Will I be notified of this?\n\nHow can I pay it? Do I need to go somewhere? Can I do it through something like TurboTax?" Self: "Your bill (paid in 2 payments Dec and April due dates) will come in the mail. You can mail in a check or you can go online and make a payment. The payment is made on a county website. You can go on there now and using your parcel number or address usually find what you own." vermiliondragon (vermiliondragon): "Technically Nov 1 and Feb 1 due dates, but no late fee unless paid after December 10 and April 10. " Self: "Thank you for the correction. You are right." sockalicious (sockalicious): "Here's how to remember the due/late dates:\n\nNovember December February April - No Darn Foolin' Around"
User (DataGuru314): "I'm currently a contract employee and my employer provides a 401K plan (through Wells Fargo, ick) but does not provide any contribution to it. Does it still make sense to max it out or should I wait until I am a non-contract employee and my employer provides a matching 401K? " Self: "You may find these links helpful:\n\n- [401(k) Fund Selection Guide](/r/personalfinance/wiki/401k_funds)\n- [401(k) FAQs](/r/personalfinance/wiki/401k)\n- ["How to handle $"](/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 (DataGuru314): "I'm currently a contract employee and my employer provides a 401K plan (through Wells Fargo, ick) but does not provide any contribution to it. Does it still make sense to max it out or should I wait until I am a non-contract employee and my employer provides a matching 401K? " Self: "Do you have any debt with high interest rates?\n\nHave you maxed out an IRA or Roth IRA?" User (DataGuru314): "I still have about about 15k in student loan debt. I don't have an IRA or Roth IRA. This is basically my first "real" job out of college. "
User (DataGuru314): "I'm currently a contract employee and my employer provides a 401K plan (through Wells Fargo, ick) but does not provide any contribution to it. Does it still make sense to max it out or should I wait until I am a non-contract employee and my employer provides a matching 401K? " Self: "Yes. Money into your 401k is tax deductible and grows tax free. Assuming you have your emergency fund covered and you don't have any high interest debt, and have maxed out an IRA, put as much into your 401k as you can." User (DataGuru314): "How do I start an IRA? " axmantim (axmantim): "Find a company that handles them, contact them. It's literally that simple. Mine is with Fidelity, my mom has one through her credit union. My brother got his after talking to a financial advisor. Not being rude, but just Google iras and you'll find a company that does them. "
User (DataGuru314): "I'm currently a contract employee and my employer provides a 401K plan (through Wells Fargo, ick) but does not provide any contribution to it. Does it still make sense to max it out or should I wait until I am a non-contract employee and my employer provides a matching 401K? " Self: "It is still beneficial because it is a tax advantaged account.\n\nSince there is no match, max out your IRA first ($5,500) since you likely have better options and your choice of brokerages, but everything else poor into your 401k.\n\nWhen you change jobs, you can then roll the 401k funds into your prefered IRA"
User (DataGuru314): "I'm currently a contract employee and my employer provides a 401K plan (through Wells Fargo, ick) but does not provide any contribution to it. Does it still make sense to max it out or should I wait until I am a non-contract employee and my employer provides a matching 401K? " Self: "It is still beneficial because it is a tax advantaged account.\n\nSince there is no match, max out your IRA first ($5,500) since you likely have better options and your choice of brokerages, but everything else poor into your 401k.\n\nWhen you change jobs, you can then roll the 401k funds into your prefered IRA"
User (DataGuru314): "I'm currently a contract employee and my employer provides a 401K plan (through Wells Fargo, ick) but does not provide any contribution to it. Does it still make sense to max it out or should I wait until I am a non-contract employee and my employer provides a matching 401K? " Self: "Yes. Money into your 401k is tax deductible and grows tax free. Assuming you have your emergency fund covered and you don't have any high interest debt, and have maxed out an IRA, put as much into your 401k as you can." Desblade101 (Desblade101): "You pay taxes on the growth of a traditional 401K. On a Roth 401K you pay taxes on the deposit, but not on the growth. " AlmennDulnefni (AlmennDulnefni): "No, you pay taxes on disbursements. " pdiddy117 (pdiddy117): "Ummm.... your disbursement’s are your principle plus growth so...." AlmennDulnefni (AlmennDulnefni): "Yes but you are not paying taxes until you remove funds from the account. Which can help a lot with some types of investments and makes rebalancing free and such. "
User (The_Fax_Machine): "When I was born, my mom's boss gifted me with $500 of Disney stock in my name. I've never touched it and today it's worth a little over $23,000. This is the only investment I have. Disney is a very stable stock, but dividends are low and seeing as I'm only 21, I'd like to take a more aggressive approach and possibly move that money to a managed account. I'm conflicted on this, because pretty much all of the value is capital gains, so the minute I liquidate it to move it, I'm losing nearly $5,000. I think I could get more gains in the long run with a more aggressive approach, but I have a buddy in finance that says he doesn't think it's a great idea to sell and take the tax hit unless I think the investment will be loosing value. Is it better to move it now, since I'll have to take the hit eventually anyways, or should I wait since it's a safe bet and growing on it's on, albeit slowly? \n \nEdit: It seems I may have been wrong about some of these numbers. I'm not positive of the original value but I know the current value is correct. The $5000 tax hit estimate is off, as 20% CGT is probably not my tax bracket, but rather an example a broker I spoke with used. I'll look more into that and update with my actual bracket tomorrow." Self: "You may find these links helpful:\n\n- [Tax Software Megathread](http://redd.it/7r0tvv)\n- [Taxes](/r/personalfinance/wiki/taxes)\n- [Understanding tax brackets](/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 (The_Fax_Machine): "When I was born, my mom's boss gifted me with $500 of Disney stock in my name. I've never touched it and today it's worth a little over $23,000. This is the only investment I have. Disney is a very stable stock, but dividends are low and seeing as I'm only 21, I'd like to take a more aggressive approach and possibly move that money to a managed account. I'm conflicted on this, because pretty much all of the value is capital gains, so the minute I liquidate it to move it, I'm losing nearly $5,000. I think I could get more gains in the long run with a more aggressive approach, but I have a buddy in finance that says he doesn't think it's a great idea to sell and take the tax hit unless I think the investment will be loosing value. Is it better to move it now, since I'll have to take the hit eventually anyways, or should I wait since it's a safe bet and growing on it's on, albeit slowly? \n \nEdit: It seems I may have been wrong about some of these numbers. I'm not positive of the original value but I know the current value is correct. The $5000 tax hit estimate is off, as 20% CGT is probably not my tax bracket, but rather an example a broker I spoke with used. I'll look more into that and update with my actual bracket tomorrow." Self: "I'm assuming you're in the US. What's your total annual income? Are you sure you're in the 25% long term capital gains bracket? Are you subject to the kiddie tax?" User (The_Fax_Machine): "Total annual income is around 20k-25k. Not positive about my gains bracket, the broker I was talking to may have been using 20% as an example. Not positive about the kiddie tax either, I'm 21, single, no kids, and live on my own, and am a student. Sorry! I'm clueless on this kind of stuff, never even considered touching the stocks til a few months ago."
User (The_Fax_Machine): "When I was born, my mom's boss gifted me with $500 of Disney stock in my name. I've never touched it and today it's worth a little over $23,000. This is the only investment I have. Disney is a very stable stock, but dividends are low and seeing as I'm only 21, I'd like to take a more aggressive approach and possibly move that money to a managed account. I'm conflicted on this, because pretty much all of the value is capital gains, so the minute I liquidate it to move it, I'm losing nearly $5,000. I think I could get more gains in the long run with a more aggressive approach, but I have a buddy in finance that says he doesn't think it's a great idea to sell and take the tax hit unless I think the investment will be loosing value. Is it better to move it now, since I'll have to take the hit eventually anyways, or should I wait since it's a safe bet and growing on it's on, albeit slowly? \n \nEdit: It seems I may have been wrong about some of these numbers. I'm not positive of the original value but I know the current value is correct. The $5000 tax hit estimate is off, as 20% CGT is probably not my tax bracket, but rather an example a broker I spoke with used. I'll look more into that and update with my actual bracket tomorrow." Self: "Dividends is not a good reason to sell. Diversification might be. They is a high tax rate for someone with no investments. Are you sure that's right? What is your income?" User (The_Fax_Machine): "Somewhere between 20-25k. Looking at all these responses, I'm thinking the broker I spoke with was using 20% as an example. He doesn't know my income."
User (The_Fax_Machine): "When I was born, my mom's boss gifted me with $500 of Disney stock in my name. I've never touched it and today it's worth a little over $23,000. This is the only investment I have. Disney is a very stable stock, but dividends are low and seeing as I'm only 21, I'd like to take a more aggressive approach and possibly move that money to a managed account. I'm conflicted on this, because pretty much all of the value is capital gains, so the minute I liquidate it to move it, I'm losing nearly $5,000. I think I could get more gains in the long run with a more aggressive approach, but I have a buddy in finance that says he doesn't think it's a great idea to sell and take the tax hit unless I think the investment will be loosing value. Is it better to move it now, since I'll have to take the hit eventually anyways, or should I wait since it's a safe bet and growing on it's on, albeit slowly? \n \nEdit: It seems I may have been wrong about some of these numbers. I'm not positive of the original value but I know the current value is correct. The $5000 tax hit estimate is off, as 20% CGT is probably not my tax bracket, but rather an example a broker I spoke with used. I'll look more into that and update with my actual bracket tomorrow." Self: "Why not just leave it alone?" User (The_Fax_Machine): "It seems risky to me to have all my eggs in one basket, though Disney itself is pretty diversified so maybe that cancels out. I'm just worried there could be more lucrative strategies I'm missing out on."
User (The_Fax_Machine): "When I was born, my mom's boss gifted me with $500 of Disney stock in my name. I've never touched it and today it's worth a little over $23,000. This is the only investment I have. Disney is a very stable stock, but dividends are low and seeing as I'm only 21, I'd like to take a more aggressive approach and possibly move that money to a managed account. I'm conflicted on this, because pretty much all of the value is capital gains, so the minute I liquidate it to move it, I'm losing nearly $5,000. I think I could get more gains in the long run with a more aggressive approach, but I have a buddy in finance that says he doesn't think it's a great idea to sell and take the tax hit unless I think the investment will be loosing value. Is it better to move it now, since I'll have to take the hit eventually anyways, or should I wait since it's a safe bet and growing on it's on, albeit slowly? \n \nEdit: It seems I may have been wrong about some of these numbers. I'm not positive of the original value but I know the current value is correct. The $5000 tax hit estimate is off, as 20% CGT is probably not my tax bracket, but rather an example a broker I spoke with used. I'll look more into that and update with my actual bracket tomorrow." Self: "Do you have a CGT allowance in The USA per annum?\n\nCan you sell up to your allowance and experiment with that therefore no chargeable event?\n\nThat's what I'd do." User (The_Fax_Machine): "To be honest, I have no idea. I am from the USA and haven't heard of that, but I'm pretty clueless on this stuff. Sorry!" Self: "The idea is over here in the UK is that you can sell about £11,700 (which is currently invested) within your allowance which you don't pay gains tax on. \n\nIn theory you could sell X amount and invest in whatever you like without having to pay capital gains tax.\n\nGive it a little read, it could help you out a little :)"
User (The_Fax_Machine): "When I was born, my mom's boss gifted me with $500 of Disney stock in my name. I've never touched it and today it's worth a little over $23,000. This is the only investment I have. Disney is a very stable stock, but dividends are low and seeing as I'm only 21, I'd like to take a more aggressive approach and possibly move that money to a managed account. I'm conflicted on this, because pretty much all of the value is capital gains, so the minute I liquidate it to move it, I'm losing nearly $5,000. I think I could get more gains in the long run with a more aggressive approach, but I have a buddy in finance that says he doesn't think it's a great idea to sell and take the tax hit unless I think the investment will be loosing value. Is it better to move it now, since I'll have to take the hit eventually anyways, or should I wait since it's a safe bet and growing on it's on, albeit slowly? \n \nEdit: It seems I may have been wrong about some of these numbers. I'm not positive of the original value but I know the current value is correct. The $5000 tax hit estimate is off, as 20% CGT is probably not my tax bracket, but rather an example a broker I spoke with used. I'll look more into that and update with my actual bracket tomorrow." Self: "Is it magic Disney stock? Because itd have to have averged a 20% return per year over 21 years to go from $500 to $23,000.\n\nDisney was about $20 a share in 1997 and $117 now. Even with a 1.5% dividend it's about 10% short of that return." TooMuchFiberz (TooMuchFiberz): "You're missing a 4 for 1 and 3 for 1 stock split. I don't feel like doing the math on it but could be possible. " Self: "It's a good idea, but incorrect. Stock splits don't create return.\n\nThe July 9, 1998 he had 40 shares at $12.5. On July 10, 1998 he had 13.3 shares at $37.6. Both equal $500.\n\nYahoo actually publishes an Adjusted share price historically, which factors in stock splits and dividend payments. So if you take today's adjusted share price and divided it by the adjusted share price on the day of purchase that will if you your all-in return including dividends.\n\nHe's off by a magnitude of 10 somewhere. Either it was $5,000 in stock originally or he only has $2,300 now.\n\nhttps://finance.yahoo.com/quote/DIS/history?period1=-252356400&period2=1538366400&interval=1d&filter=history&frequency=1d" User (The_Fax_Machine): "I know it's at $23,000 now so you may be right about it being $5000 originally. I'll add that all the dividends earned have been reinvested in Disney. Not too important where it started, just wondering what to do now." Self: "I would sell it and diversify. you're never going to get a better deal than long term capital gains. Holding 1 stock is a bad risk based return. Get a total market or at least total US market mutual fund or ETF. You'll get the same expected return or better with less volatiity in theory at least." User (The_Fax_Machine): "Thanks for the advice! I'm going to try and get ahold of an accountant or similar to confirm I'll have 0% long term CGT. If that's the case, you guys are life savers!"
User (The_Fax_Machine): "When I was born, my mom's boss gifted me with $500 of Disney stock in my name. I've never touched it and today it's worth a little over $23,000. This is the only investment I have. Disney is a very stable stock, but dividends are low and seeing as I'm only 21, I'd like to take a more aggressive approach and possibly move that money to a managed account. I'm conflicted on this, because pretty much all of the value is capital gains, so the minute I liquidate it to move it, I'm losing nearly $5,000. I think I could get more gains in the long run with a more aggressive approach, but I have a buddy in finance that says he doesn't think it's a great idea to sell and take the tax hit unless I think the investment will be loosing value. Is it better to move it now, since I'll have to take the hit eventually anyways, or should I wait since it's a safe bet and growing on it's on, albeit slowly? \n \nEdit: It seems I may have been wrong about some of these numbers. I'm not positive of the original value but I know the current value is correct. The $5000 tax hit estimate is off, as 20% CGT is probably not my tax bracket, but rather an example a broker I spoke with used. I'll look more into that and update with my actual bracket tomorrow." Self: "Will you have more than $50,600 of income in 2018 if you sell?\n\nPut another way, is your other income over 28K this year? " User (The_Fax_Machine): "My income this year (excluding the stocks) should end up being between 20-25k. So to answer your question, probably not." Self: "Then this is a good time to sell the stock. Your long term capital gain tax will be 0% on your gain. See the Qualified Dividends and Capital Gain Tax Worksheet in the 1040 instructions for line 44." User (The_Fax_Machine): "That's incredible, I'll look into that! Thank you so much" Self: "Basically, if your taxable income keeps you in the 10% and 12% tax bracket, your long term capital gains get a special 0% rate when you realize them. \n\nIf you wait until another year when stacking your gains onto your other income causes some of the gains to be in the 12% bracket but pushes some gains into the 22% bracket, the amount below the threshold are taxed at 0% and just the gains above the threshold get taxed at 15%. Selling this year would make sense.\n\nThe threshold is close to but not exactly same as the border between 12% and 22% bracket. It's off by $100 if Single."
User (The_Fax_Machine): "When I was born, my mom's boss gifted me with $500 of Disney stock in my name. I've never touched it and today it's worth a little over $23,000. This is the only investment I have. Disney is a very stable stock, but dividends are low and seeing as I'm only 21, I'd like to take a more aggressive approach and possibly move that money to a managed account. I'm conflicted on this, because pretty much all of the value is capital gains, so the minute I liquidate it to move it, I'm losing nearly $5,000. I think I could get more gains in the long run with a more aggressive approach, but I have a buddy in finance that says he doesn't think it's a great idea to sell and take the tax hit unless I think the investment will be loosing value. Is it better to move it now, since I'll have to take the hit eventually anyways, or should I wait since it's a safe bet and growing on it's on, albeit slowly? \n \nEdit: It seems I may have been wrong about some of these numbers. I'm not positive of the original value but I know the current value is correct. The $5000 tax hit estimate is off, as 20% CGT is probably not my tax bracket, but rather an example a broker I spoke with used. I'll look more into that and update with my actual bracket tomorrow." Self: "Are you working? Are you sure you're in the 15% cap gains bracket?" User (The_Fax_Machine): "Total annual income is around 20k-25k. Not positive about my gains bracket, the broker I was talking to may have been using 20% as an example. I'm 21, single, no kids, live on my own, and am a student.\n\n" Self: "Keep your 2018 taxable income under $38,600 and you'll pay no capital gains tax. If you have to, sell part of the stock in 2018 and the rest in January." User (The_Fax_Machine): "I didn't even know that was possible! Is there anything special I will have to file or will it just be exempt from tax?" Self: "You have to report the sale on Schedule D, but when you calculate your tax, if your taxable income is less than $38,600 then you'll pay 0% on the capital gain."
User (VeggieLion): "\n\nI've been using my Walmart AmEx Bluebird card for a couple of years. It was about $5 to buy the card at Walmrt. There's never a reload or monthly fee. I just add money with cash at any Walmart checkout counter.(since I pass by at least 3 Walmarts on the way home each day, it's very convenient)\n\nI mainly use it for buying stuff from questionable foreign websites. Unfortunately, some of them don't take AmEx. \n\nIs there a reloadable prepaid Visa/MC card that charges no monthly or reload fee like the Walmart AmEx Bluebird card? " Self: "Maybe this link helps you https://www.nerdwallet.com/blog/banking/nerdwallets-best-prepaid-debit-cards/"
User (VeggieLion): "\n\nI've been using my Walmart AmEx Bluebird card for a couple of years. It was about $5 to buy the card at Walmrt. There's never a reload or monthly fee. I just add money with cash at any Walmart checkout counter.(since I pass by at least 3 Walmarts on the way home each day, it's very convenient)\n\nI mainly use it for buying stuff from questionable foreign websites. Unfortunately, some of them don't take AmEx. \n\nIs there a reloadable prepaid Visa/MC card that charges no monthly or reload fee like the Walmart AmEx Bluebird card? " Self: "Is that the whole idea of having a card from a decent bank? Just dispute the charges."
User (VeggieLion): "\n\nI've been using my Walmart AmEx Bluebird card for a couple of years. It was about $5 to buy the card at Walmrt. There's never a reload or monthly fee. I just add money with cash at any Walmart checkout counter.(since I pass by at least 3 Walmarts on the way home each day, it's very convenient)\n\nI mainly use it for buying stuff from questionable foreign websites. Unfortunately, some of them don't take AmEx. \n\nIs there a reloadable prepaid Visa/MC card that charges no monthly or reload fee like the Walmart AmEx Bluebird card? " Self: "Citi dc virtual cc numbers work great for me. Privacy.com seemed to have no customer service when I was a customer earlier this year and had problems. Like no phone number to call and not a single reply to any of my emails. Not even a auto email reply to at least acknowledge they received my email. "
User (VeggieLion): "\n\nI've been using my Walmart AmEx Bluebird card for a couple of years. It was about $5 to buy the card at Walmrt. There's never a reload or monthly fee. I just add money with cash at any Walmart checkout counter.(since I pass by at least 3 Walmarts on the way home each day, it's very convenient)\n\nI mainly use it for buying stuff from questionable foreign websites. Unfortunately, some of them don't take AmEx. \n\nIs there a reloadable prepaid Visa/MC card that charges no monthly or reload fee like the Walmart AmEx Bluebird card? " Self: "Haven't found any reloadable Visa / MC that doesn't charge fees or is easy to use.\n\nOptions to consider :\n\n1) Visa gift cards\n2) Virtual card options from BankAm (Shopsafe) / Capital One (Eno / Citibank.\n3) Privacy dot com offers a virtual card that links to your debit card instead of credit cards.\n4) Or get a different no-fee checking account with a debit card that you can use for such transactions; don't link it to any of your other accounts, turn off overdraft and add cash through their ATM..." User (VeggieLion): "Thanks! I just found Visa gift cards at my local Staples this afternoon. There's a fee to buy them, but with the rebate(in Staples gift card, today's the last day of the rebate), it's essentially free. :) "
User (VeggieLion): "\n\nI've been using my Walmart AmEx Bluebird card for a couple of years. It was about $5 to buy the card at Walmrt. There's never a reload or monthly fee. I just add money with cash at any Walmart checkout counter.(since I pass by at least 3 Walmarts on the way home each day, it's very convenient)\n\nI mainly use it for buying stuff from questionable foreign websites. Unfortunately, some of them don't take AmEx. \n\nIs there a reloadable prepaid Visa/MC card that charges no monthly or reload fee like the Walmart AmEx Bluebird card? " Self: "Just get a real bank card. Save yourself the hassle. Unless you can't because you are in the country illegally or you have something in ChexSystem that prevents you from opening one."
User (Thisjayguy): "I'm currently about 3 years out from buying a home, and plan to save around $100K for a down payment. I'm at about 30% of that, and keeping that money in a "High Yield savings account" .... which returns like .7%. I'm wondering since I don't necessarily need a $100K goal, and I'm able to tolerate some risk, should I consider investing this money in the mean time? " Self: "Well at a minimum, there’s savings accounts close to 2% nowadays. Ally, Barclays etc"
User (Thisjayguy): "I'm currently about 3 years out from buying a home, and plan to save around $100K for a down payment. I'm at about 30% of that, and keeping that money in a "High Yield savings account" .... which returns like .7%. I'm wondering since I don't necessarily need a $100K goal, and I'm able to tolerate some risk, should I consider investing this money in the mean time? " Self: "I did mine 50/50, and got lucky because the market was up. But I was prepared to delay or buy less if I didn't get lucky. The key is not to be forced into selling low." User (Thisjayguy): "solid advice, and I say 3 years out, but really it's a minimum of 3 yrs until I get to the location where I want to buy. so I'm prepared to delay buying further if need be."
User (Thisjayguy): "I'm currently about 3 years out from buying a home, and plan to save around $100K for a down payment. I'm at about 30% of that, and keeping that money in a "High Yield savings account" .... which returns like .7%. I'm wondering since I don't necessarily need a $100K goal, and I'm able to tolerate some risk, should I consider investing this money in the mean time? " Self: "Make sure you have 6 months worth of emergency expenses first before thinking of investing or buying a house.\n\nIf you think you’re going to need the money within 5 years, don’t invest it. Put it as a dp for the house or put it in a high yield savings account. If you won’t need it - go ahead and invest it in what you’re comfortable in. Most knowledgeable investors pick the total stock market index fund.\n\nSome things to think about:\n\nDo you need a home? If you’re going to buy it for the sake of investment, then it’s a poor decision be it bull or a bear market. If you need it(you’ll live in the area for a while, rent prices of a similar house is high) - then it also doesn’t matter if it’s a bull or bear market."
User (Thisjayguy): "I'm currently about 3 years out from buying a home, and plan to save around $100K for a down payment. I'm at about 30% of that, and keeping that money in a "High Yield savings account" .... which returns like .7%. I'm wondering since I don't necessarily need a $100K goal, and I'm able to tolerate some risk, should I consider investing this money in the mean time? " Self: "you can get FDIC insured CDs paying 3% right now, which is far better than .7% in a savings account"
User (s1eeper21): "Currently contributing to my employers 401k... up to the match which is in an index fund (BlackRock Equity Index T Fund - 0.03% expense ratio) and maxing out my HSA ($3450).\n\nI just opened up a brokerage account with Vanguard and about to contribute the max, $5500. I'm a beginner to investing and not sure what fund to contribute to. Would it be wrong to put the $5500 in another index fund, such as VOO.\n\nI have no other taxable investment accounts as I'm currently saving for a downpayment on a home.. which I should have enough by Jan 2020. Any assistance would be appreciated. Thanks" Self: "You may find these links helpful:\n\n- [Retirement Accounts](/r/personalfinance/wiki/index#wiki_retirement_accounts)\n- ["How to handle $"](/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 (s1eeper21): "Currently contributing to my employers 401k... up to the match which is in an index fund (BlackRock Equity Index T Fund - 0.03% expense ratio) and maxing out my HSA ($3450).\n\nI just opened up a brokerage account with Vanguard and about to contribute the max, $5500. I'm a beginner to investing and not sure what fund to contribute to. Would it be wrong to put the $5500 in another index fund, such as VOO.\n\nI have no other taxable investment accounts as I'm currently saving for a downpayment on a home.. which I should have enough by Jan 2020. Any assistance would be appreciated. Thanks" Self: "Yes sounds fine. \n\nKnow that equity markets are volatile and can lose half their value at any given time, however over the last 100 years have shown to produce very good returns.\n\nThink about getting more conservative when you near retirement if you can."
User (rico21r): "I just came across this app last night, does anyone have experience with it?\n\nIf you're unfamiar, basically you can sign on to a certified pre-owned owned car directly from the app and pick the car up at the dealership. It seems like a pretty good deal but I'm not sure about the value compared to just leasing. " Self: "From what I have learned I can't imagine how this idea will work. Apparently they are buying the car then letting a consumer drive it for a monthly payment for no preset amount of time. When you decide you don't want it anymore I am unclear what they do with it, sell it back to the dealer for a loss? Is the car titled in your name? It seems like it is. \n\nIf this is as simple and straight forward as they are making it out to be it could be a HUGE change in the relationship between people and cars. Especially for those typically under-qualified for conventional ownership schemes. "
User (rico21r): "I just came across this app last night, does anyone have experience with it?\n\nIf you're unfamiar, basically you can sign on to a certified pre-owned owned car directly from the app and pick the car up at the dealership. It seems like a pretty good deal but I'm not sure about the value compared to just leasing. " Self: "Owning and taking care of the car and driving it for a long time is way better value then leasing" iconoclast63 (iconoclast63): "You can't just say this without explaining why. " SoggyMcmufffinns (SoggyMcmufffinns): "Leases are designed to make money off of you. You just pay off someone else's vehicle and any depreciation and end up with nothing in the end, but more car payments. You are also severely limited on what you can do to or with the car. Mileage,how far away you can drive it, etc. For the same as a lease payment you could likely just own a vehicle in many cases. For the vast majority of people it makes a ton more sense to own than to lease. Why pay off someone else's car and depreciation for them. Plenty of reliable cars out there for cheap and will make a better profit for you in the long run generally." iconoclast63 (iconoclast63): "But none of that applies to this post. Fair.com is a new way to making a monthly payment to drive a used car but not signing a contract and being able to change cars whenever you want. " SoggyMcmufffinns (SoggyMcmufffinns): "Yes, but none of that applies to this particular comment. You stated you wanted an expansion on leasing. In the post it mentions leasing as well so talking about leasing does indeed apply here." iconoclast63 (iconoclast63): "Okay, fine. But the post is about Fair.com. " SoggyMcmufffinns (SoggyMcmufffinns): "Yes, the post is about Fair.com vs leasing. Therefore expanding upon leasing is very much relevant."
User (rico21r): "I just came across this app last night, does anyone have experience with it?\n\nIf you're unfamiar, basically you can sign on to a certified pre-owned owned car directly from the app and pick the car up at the dealership. It seems like a pretty good deal but I'm not sure about the value compared to just leasing. " User (rico21r): "Yeah that's what I noticed too. Too good to be true I suppose. "
User (DarxusC): "Yesterday I logged in to the site to activate my new nerfed Barclay Rewards card (which was once a Sallie Mae card). It took me a while, because this card is of no use to me.\n\nToday I tried many times to log in with the same credentials. It didn't work. I knew I was using the same credentials.\n\nI clicked the "forgot password" link. It asked me for some info, then told me my username, which I noticed was displayed in all caps. I thought "no way...." opened a new browser tab, and tried logging in again, copying and pasting my username in all caps, and the same password which had previously failed, and it worked. \n\n\nThis is so bizarrely disappointing that I had to share." Self: "I was wondering why I couldn't log in! My workaround was to go through mobile.\n\n"
User (DarxusC): "Yesterday I logged in to the site to activate my new nerfed Barclay Rewards card (which was once a Sallie Mae card). It took me a while, because this card is of no use to me.\n\nToday I tried many times to log in with the same credentials. It didn't work. I knew I was using the same credentials.\n\nI clicked the "forgot password" link. It asked me for some info, then told me my username, which I noticed was displayed in all caps. I thought "no way...." opened a new browser tab, and tried logging in again, copying and pasting my username in all caps, and the same password which had previously failed, and it worked. \n\n\nThis is so bizarrely disappointing that I had to share." Self: "Wow... thanks for the heads up! \n\nEdit: Weird, it's still not letting me log in with my username in all caps.\n\nEdit 2: Reset my password. Still won't let me log in on the website, but the new password works on the mobile app. Something strange is going on."
User (DarxusC): "Yesterday I logged in to the site to activate my new nerfed Barclay Rewards card (which was once a Sallie Mae card). It took me a while, because this card is of no use to me.\n\nToday I tried many times to log in with the same credentials. It didn't work. I knew I was using the same credentials.\n\nI clicked the "forgot password" link. It asked me for some info, then told me my username, which I noticed was displayed in all caps. I thought "no way...." opened a new browser tab, and tried logging in again, copying and pasting my username in all caps, and the same password which had previously failed, and it worked. \n\n\nThis is so bizarrely disappointing that I had to share." Self: "So weird... Same thing happened to me"
User (DarxusC): "Yesterday I logged in to the site to activate my new nerfed Barclay Rewards card (which was once a Sallie Mae card). It took me a while, because this card is of no use to me.\n\nToday I tried many times to log in with the same credentials. It didn't work. I knew I was using the same credentials.\n\nI clicked the "forgot password" link. It asked me for some info, then told me my username, which I noticed was displayed in all caps. I thought "no way...." opened a new browser tab, and tried logging in again, copying and pasting my username in all caps, and the same password which had previously failed, and it worked. \n\n\nThis is so bizarrely disappointing that I had to share." Self: "Using caps or using mobile site won't work for me. :( \n\nE: I was able to access my account after resetting the password, but couldn't get back in after that when I tried to log back in with the new password."
User (DarxusC): "Yesterday I logged in to the site to activate my new nerfed Barclay Rewards card (which was once a Sallie Mae card). It took me a while, because this card is of no use to me.\n\nToday I tried many times to log in with the same credentials. It didn't work. I knew I was using the same credentials.\n\nI clicked the "forgot password" link. It asked me for some info, then told me my username, which I noticed was displayed in all caps. I thought "no way...." opened a new browser tab, and tried logging in again, copying and pasting my username in all caps, and the same password which had previously failed, and it worked. \n\n\nThis is so bizarrely disappointing that I had to share." Self: "I'm glad I wasn't the only one. Still can't log in with the all caps method though. thanks for sharing" User (DarxusC): "Yeah, I haven't been able to get into my account since just after I posted this. I'm real curious what's going on."
User (DarxusC): "Yesterday I logged in to the site to activate my new nerfed Barclay Rewards card (which was once a Sallie Mae card). It took me a while, because this card is of no use to me.\n\nToday I tried many times to log in with the same credentials. It didn't work. I knew I was using the same credentials.\n\nI clicked the "forgot password" link. It asked me for some info, then told me my username, which I noticed was displayed in all caps. I thought "no way...." opened a new browser tab, and tried logging in again, copying and pasting my username in all caps, and the same password which had previously failed, and it worked. \n\n\nThis is so bizarrely disappointing that I had to share." Self: "Huh. I haven't had any trouble all weekend."
User (DarxusC): "Yesterday I logged in to the site to activate my new nerfed Barclay Rewards card (which was once a Sallie Mae card). It took me a while, because this card is of no use to me.\n\nToday I tried many times to log in with the same credentials. It didn't work. I knew I was using the same credentials.\n\nI clicked the "forgot password" link. It asked me for some info, then told me my username, which I noticed was displayed in all caps. I thought "no way...." opened a new browser tab, and tried logging in again, copying and pasting my username in all caps, and the same password which had previously failed, and it worked. \n\n\nThis is so bizarrely disappointing that I had to share." Self: "I saw that yesterday. No matter what I tried. It said my user and password was wrong. Still cannot get in." ICrowdfundedYourMom (ICrowdfundedYourMom): "Me too"
User (DarxusC): "Yesterday I logged in to the site to activate my new nerfed Barclay Rewards card (which was once a Sallie Mae card). It took me a while, because this card is of no use to me.\n\nToday I tried many times to log in with the same credentials. It didn't work. I knew I was using the same credentials.\n\nI clicked the "forgot password" link. It asked me for some info, then told me my username, which I noticed was displayed in all caps. I thought "no way...." opened a new browser tab, and tried logging in again, copying and pasting my username in all caps, and the same password which had previously failed, and it worked. \n\n\nThis is so bizarrely disappointing that I had to share." Self: "I just tried to log in successfully with my normal username and password, must only be affecting some users." User (DarxusC): "I still can't log in today."
User (DarxusC): "Yesterday I logged in to the site to activate my new nerfed Barclay Rewards card (which was once a Sallie Mae card). It took me a while, because this card is of no use to me.\n\nToday I tried many times to log in with the same credentials. It didn't work. I knew I was using the same credentials.\n\nI clicked the "forgot password" link. It asked me for some info, then told me my username, which I noticed was displayed in all caps. I thought "no way...." opened a new browser tab, and tried logging in again, copying and pasting my username in all caps, and the same password which had previously failed, and it worked. \n\n\nThis is so bizarrely disappointing that I had to share." Self: "I have/had the same card. I just put my netflix subscription on it and have it autopay from my checking to keep it active for the utilization/credit." User (DarxusC): "Yeah, I haven't used it in a year and a half, because I'm not convinced I care to keep it. I was just logging in to double check autopay before showing a little use, and I can't. Not impressed."
User (d1x69): "So i am 22, finally getting myself financially stable working at a bank, and its introduced me to the concept of investing. I had a few people recommend those apps as a sort of fire and forget type of investing and i had others tell me those are horrible ideas. What are your thoughts on say acorns/robinhood? Any input would be super helpful!\n\n" Self: "You may find these links helpful:\n\n- ["How to handle $"](/r/personalfinance/wiki/commontopics)\n- [Investing](/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 (d1x69): "So i am 22, finally getting myself financially stable working at a bank, and its introduced me to the concept of investing. I had a few people recommend those apps as a sort of fire and forget type of investing and i had others tell me those are horrible ideas. What are your thoughts on say acorns/robinhood? Any input would be super helpful!\n\n" Self: "Never make another mans mistakes. When it comes to investing you really want to be in control and that involves educating yourself on the Stocks,Mutual Funds, and Bonds you’re investing in. I’m okay with anyone using a site that helps with education but these click bait give us money and we will make you rich and have a awesome portfolio are just that to good to be true. Also anytime the word “forget” is acceptable in any investment is a long term bond, but even then interest rates change which require action. \n\nTDLR: Don’t invest in gimmicks, educate yourself on the matter and be in control of your future."
User (PhlyingHigh): "I recently graduated in May and have \~$1200 in credit card debt on 2 cards, $1000 on one and $200 on the other(Both are close to maxed out). I was under the impression that my job(60k salary) would start as soon as I graduated but it didn't start until mid July so I had to pay 2 months of rent and groceries on my credit card. I have been contributing 5% of my paycheck to my TSP (Company matched 5% and gives 1% automatically) and I was wondering if I should temporarily stop contributing to my TSP and use that money to pay off my credit cards since they are maxed out? \n\n&#x200B;\n\nI have a pretty large student loan debt (\~90k private and \~25k fasfa after all the interest) and want to refinance the private loan to a better rate. I looked into SoFi but was declined because of length of employment and poor credit score. I checked my credit score and it says the credit usage is very high(Obviously) which is hurting my score. \n\n&#x200B;\n\nShould I stop my TSP contribution for a few months so I can pay off my credit card debt faster and begin improving my credit score or should I continue contributing and pay off what I can for my credit cards?\n\n&#x200B;\n\n&#x200B;" Self: "You may find these links helpful:\n\n- [Retirement Accounts](/r/personalfinance/wiki/index#wiki_retirement_accounts)\n- ["How to handle $"](/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 (PhlyingHigh): "I recently graduated in May and have \~$1200 in credit card debt on 2 cards, $1000 on one and $200 on the other(Both are close to maxed out). I was under the impression that my job(60k salary) would start as soon as I graduated but it didn't start until mid July so I had to pay 2 months of rent and groceries on my credit card. I have been contributing 5% of my paycheck to my TSP (Company matched 5% and gives 1% automatically) and I was wondering if I should temporarily stop contributing to my TSP and use that money to pay off my credit cards since they are maxed out? \n\n&#x200B;\n\nI have a pretty large student loan debt (\~90k private and \~25k fasfa after all the interest) and want to refinance the private loan to a better rate. I looked into SoFi but was declined because of length of employment and poor credit score. I checked my credit score and it says the credit usage is very high(Obviously) which is hurting my score. \n\n&#x200B;\n\nShould I stop my TSP contribution for a few months so I can pay off my credit card debt faster and begin improving my credit score or should I continue contributing and pay off what I can for my credit cards?\n\n&#x200B;\n\n&#x200B;" Self: "Keep contributing. You should easily be able to pay off those credit cards and then start buckling down on your school debt. " User (PhlyingHigh): "Would delaying refinancing by 3-6 months really save me money in the end though? If I can drop from ~9% to 6-7% I would save a decent amount of interest. "
User (PhlyingHigh): "I recently graduated in May and have \~$1200 in credit card debt on 2 cards, $1000 on one and $200 on the other(Both are close to maxed out). I was under the impression that my job(60k salary) would start as soon as I graduated but it didn't start until mid July so I had to pay 2 months of rent and groceries on my credit card. I have been contributing 5% of my paycheck to my TSP (Company matched 5% and gives 1% automatically) and I was wondering if I should temporarily stop contributing to my TSP and use that money to pay off my credit cards since they are maxed out? \n\n&#x200B;\n\nI have a pretty large student loan debt (\~90k private and \~25k fasfa after all the interest) and want to refinance the private loan to a better rate. I looked into SoFi but was declined because of length of employment and poor credit score. I checked my credit score and it says the credit usage is very high(Obviously) which is hurting my score. \n\n&#x200B;\n\nShould I stop my TSP contribution for a few months so I can pay off my credit card debt faster and begin improving my credit score or should I continue contributing and pay off what I can for my credit cards?\n\n&#x200B;\n\n&#x200B;" Self: "You should keep contributing enough to get the full match. The 80% ROI you're getting by contributing 5% (and getting 4% match, in addition to the automatic 1%) is much greater than the probably ~20% APR you're paying on the CC balance. But you definitely shouldn't contribute anything beyond that, and your CC debt should be your #1 priority with the money you have leftover.\n\nEdit: I would also advise against refinancing the federal student loans. By all means refinance the $90k of private loans to get a better interest rate if you can, but I would keep the federal student loans federal since you work for the government and are eligible for PSLF. You can focus your payments on the $90k of private loans for the 10 years and make minimum payments on an IBR plan on the federal loans. If you end up paying off the private loans sooner than 10 years by paying them aggressively, you can at that point reevaluate if you want to continue on the PSLF route or start aggressively paying the federal loans." User (PhlyingHigh): "I want to refinance the private loan but I can’t due to my credit score. My high credit usage is bringing the credit score down which would just delay my ability to refinance. \n\nMy thought process was if I stop contributing to my TSP for 3 months I’ll have paid pretty much all of my credit card debt. Now that my credit usage is down my credit score will begin to increase and I’ll be able to refinance in early 2019. If I keep contributing it’ll take me 6-9 months to bring it down. With 3-6 months of a lower interest rate (~6-7% instead of ~9%) I’ll save money in the end. " Self: "You'd have 3-6 months of a ~3% lower interest rate, but be losing a guaranteed 80% ROI on that money. Plus that free money going into your TSP is going to grow exponentially because of compound interest while it's invested for 30+ years. You'll be getting the most bang for your buck by continuing your contributions. If you want to get the CC debt paid off more aggressively so that you can refinance sooner, I'd look to see if there are expenses in your budget you can cut for a few months." User (PhlyingHigh): "I guess that does make sense when you think about it over the course of 30 years. It just brings me a bit of peace of mind if my credit score was constantly decreasing because I’m maxed out on my cards. \n\nThe credit card that is only $200 limit was a student card that I got while in college to help build my credit. With such a low limit do you think I should just close it after I pay it off and try to stick to one card? " Self: ">The credit card that is only $200 limit was a student card that I got while in college to help build my credit. With such a low limit do you think I should just close it after I pay it off and try to stick to one card?\n\nGenerally you should never close a credit card unless it has an annual fee and cannot be product changed to a card without a fee. If you close it, you lose the available credit, possibly increasing your utilization (although utilization has no memory and is easily manipulated, so this isn't a huge deal). It will also fall off your credit report in 10 years, at which point you will lose a 10+ year old account, dropping your average age of accounts and hurting your credit, and in your case you'll lose what appears to be your oldest card, hurting you even further." User (PhlyingHigh): "If I don’t plan on using the bank should I just keep it open and not deposit money into it so I can keep the bank history? It’s a local bank near where I grew up and I don’t have any near me now. \n\nIf I try to open another bank (I currently have 2) will that hurt my credit if I don’t get a credit card through them?" Self: ">If I don't plan on using the bank should I just keep it open and not deposity money into it so I can keep the bank history?\n\nThere's no need to keep a bank account open if you no longer want to use it.\n\n>If I try to open another bank (I currently have 2) will that hurt my credit if I don't get a credit card through them?\n\nDeposit accounts do not affect your credit, since they aren't credit. Some banks do perform a hard pull when opening an account for a new customer, so that could ding your score, but it would be a very small impact and hard pulls stop affecting your score after a year and fall off your report entirely after 2 years. It's also not a common practice for banks to do, but there are some that do."
User (GunstonPatriot): "Good evening PFers,\n\nMy wife and I are jumping headfirst into purchasing our first home. We (think) we have all of our ducks in a row, but just wanted to get the opinion of you fine folks before committing 100%. I’ll give a brief background of our financial situation, and then ask some specific questions regarding our potential home search.\n\nBackground Finances\n\nLocation: Northern Virginia\n\nCombined Annual Income (Pre-tax): $160k\n\nLiquid Assets (Checking/Savings): $162k\n\nCombined Savings (Tax advantaged Retirement Accounts): $165k\n\nDebt: None, rotating credit card debt, paid off monthly (~$1-$2k a month for various expenses).\n\nCredit Scores: >760 each\n\nHome Purchase Information\n\nWe’ve been pre-qualified through one bank so far (USAA), with an APR of 4.99% on a $400k loan for a $500k house. We plan on putting 20% down on any house we end up purchasing, and figure that $100k + 5% closing costs ($5k) would still leave us with a large enough E-fund cushion (~$55k liquid assets).\n\nQuestions:\n\nBased on our income and saved cash, would a $500k house be a reasonable purchase? We are afraid of becoming “house poor,” and would rather rent longer, save more, and buy a less expensive house. However, if $500k seems reasonable, we don’t think there would be any reason to wait to purchase. \n\nThanks for your help!\n\n\n" Self: "It seems reasonable. You have enough saved to put 20% and the rule of thumb is typically no more then 3x your income(which would be a mortgage for 480k max and your planning on 400k so way less then the max). I’d say go for it. The only concern I’d have is if you plan on kids soon. Daycare or having someone quit work can really cut into your budget. So if that’s something your considering I’d factor that cost in before buying and if you feel the mortgage is still affordable go for it(it should be but it’s always something to think about just in case)." vbnudeguy (vbnudeguy): "Good point about daycare. It's super expensive in that area. " User (GunstonPatriot): "Thanks for the input! We had always heard the 3x rule, but never considered that it was in comparison to the loan amount and not the total home cost. Comparing 3x our income to 400k vs 500k is much more reassuring!"
User (GunstonPatriot): "Good evening PFers,\n\nMy wife and I are jumping headfirst into purchasing our first home. We (think) we have all of our ducks in a row, but just wanted to get the opinion of you fine folks before committing 100%. I’ll give a brief background of our financial situation, and then ask some specific questions regarding our potential home search.\n\nBackground Finances\n\nLocation: Northern Virginia\n\nCombined Annual Income (Pre-tax): $160k\n\nLiquid Assets (Checking/Savings): $162k\n\nCombined Savings (Tax advantaged Retirement Accounts): $165k\n\nDebt: None, rotating credit card debt, paid off monthly (~$1-$2k a month for various expenses).\n\nCredit Scores: >760 each\n\nHome Purchase Information\n\nWe’ve been pre-qualified through one bank so far (USAA), with an APR of 4.99% on a $400k loan for a $500k house. We plan on putting 20% down on any house we end up purchasing, and figure that $100k + 5% closing costs ($5k) would still leave us with a large enough E-fund cushion (~$55k liquid assets).\n\nQuestions:\n\nBased on our income and saved cash, would a $500k house be a reasonable purchase? We are afraid of becoming “house poor,” and would rather rent longer, save more, and buy a less expensive house. However, if $500k seems reasonable, we don’t think there would be any reason to wait to purchase. \n\nThanks for your help!\n\n\n" Self: "NOVA is an expensive market so this advice should be adjusted for your area. \n\nA safe rule is to take the highest earner's salary and get a mortgage that's not more than twice that amount. The mortgage amount would be after the down payment. This way you've got a place that can be paid for even if something happens and you don't have an extra income. It also allows you plenty of room for the (numerous) unexpected expenses of home ownership. \n\nIf you try to keep up with your neighbors you may end up broke which isn't going to help you. Most of them are maxed out on credit and barely making ends meet even though they have a big house and fancy car. " User (GunstonPatriot): "Thanks for the input! I think 2x the highest income would limit us to a loan of about $170k. In this market, that would get a condo or a shabby townhouse we think.\n\nWhile we would LOVE to spend that amount for a home purchase, we don't think it's feasible. We certainly need to take into consideration what we can afford if only one of us is able to work at any time.\n\nAdditionally, as an added data point - our rent is currently around $2150 for a 2 bed/2 bath apartment with a detached garage. The math for a 500k house after 20% down appears to come out a little bit more a month (~@2600).\n\nWe are trying our best to avoid ending up like your example of the neighbors that overextend their finances."
User (Black_rose1809): "So I normally don't do these mistakes but my children were complaining about something on their phones and I kind freaked out, when I saw the email. It basically said that I was going to be permanently blocked, and started to ask my social security number. Usually this would be my #1 red flag but my kids mentioned this question on their phones, I didn't think on it. I then got the gist when they asked a selfie with my ID and I'm like no. I didn't continue the process and closed the browser.\n\nSo I did my calls. I called my bank and cancelled my cards, getting a new one soon. I called Apple and got things fixed and money back from some purchases I didn't authorized and I called a credit union and put a freeze on my credit just in case.\n\nI'm not sure if that's all I can do, but any more advice would be appreciated. \n\nAnd yes I learned my lesson. " Self: "Don’t worry, it’s fake. "
User (gakuon): "I am 32 and finished my PhD a couple years back. From 16-30 essentially I was working myself through school and supplementing with loans so I have 146k in student loan debt. I am working now in public service to take advantage of the public service loan forgiveness program. (I've made sure my loans qualify and i'm on the right repayment plan). \n\nRight now I'm making 95k per year, and my wife is making about 67k per year. (before taxes). We had to live apart because of job opportunities for a while, but now we're back in the same city. In the past 18 months of working I've been able to save about 11k in a savings account and about 4k in my 403b (401k for non-profits). \n\nAfter my monthly bills I am able to save around 1000-1500 per month, which I'm now going to put the next 5000 or so into stocks, then keep a balance of cash and stocks increasing in parallel. \n\nFirst, what could I do better? \n\nSecond, and the main question I want advice about: I want to buy some things for myself but i've never bought anything for myself more than a couple hundred bucks before. I don't come from a well-off background and I want to make good financial choices. \n\nI want a nintendo switch, wanted for months, but I can't justify ~$500 for something like that. Also, I play guitar and have for a long time and want a nice guitar, the cheaper one I am interested in is about 2200, and the nicer one I would love is about 3400. \n\nAt what point should I consider it okay to spend money on myself for things like this? Thanks very much for any advice.\n\nEdit: Someone said I should mention more details about my budget. \n\n* After tax income: ~$5200/month\n\n* Rent: 2100/month (NYC, so its basically a dumpster at this price).\n\n* Student Loans: Currently ~400, going to go up to about 700 when I update with them in december.\n\n* Utilities: ~250/month (internet, phone, power).\n\n* Food/Random things ~250/week (1000/mo) (I budget for this but put the excess in savings at the end of each month).\n\n* Savings: ~1000/mo\n\nThis leaves a little wiggle room of about 400 per month for unexpected expenses that get added to savings or leisure at the end of each month. \n" Self: "Hell yea!! Live your life!!!"
User (gakuon): "I am 32 and finished my PhD a couple years back. From 16-30 essentially I was working myself through school and supplementing with loans so I have 146k in student loan debt. I am working now in public service to take advantage of the public service loan forgiveness program. (I've made sure my loans qualify and i'm on the right repayment plan). \n\nRight now I'm making 95k per year, and my wife is making about 67k per year. (before taxes). We had to live apart because of job opportunities for a while, but now we're back in the same city. In the past 18 months of working I've been able to save about 11k in a savings account and about 4k in my 403b (401k for non-profits). \n\nAfter my monthly bills I am able to save around 1000-1500 per month, which I'm now going to put the next 5000 or so into stocks, then keep a balance of cash and stocks increasing in parallel. \n\nFirst, what could I do better? \n\nSecond, and the main question I want advice about: I want to buy some things for myself but i've never bought anything for myself more than a couple hundred bucks before. I don't come from a well-off background and I want to make good financial choices. \n\nI want a nintendo switch, wanted for months, but I can't justify ~$500 for something like that. Also, I play guitar and have for a long time and want a nice guitar, the cheaper one I am interested in is about 2200, and the nicer one I would love is about 3400. \n\nAt what point should I consider it okay to spend money on myself for things like this? Thanks very much for any advice.\n\nEdit: Someone said I should mention more details about my budget. \n\n* After tax income: ~$5200/month\n\n* Rent: 2100/month (NYC, so its basically a dumpster at this price).\n\n* Student Loans: Currently ~400, going to go up to about 700 when I update with them in december.\n\n* Utilities: ~250/month (internet, phone, power).\n\n* Food/Random things ~250/week (1000/mo) (I budget for this but put the excess in savings at the end of each month).\n\n* Savings: ~1000/mo\n\nThis leaves a little wiggle room of about 400 per month for unexpected expenses that get added to savings or leisure at the end of each month. \n" Self: "At the end of the day, you have to enjoy your life. Saving is so important but it's okay to enjoy your money too.\n\nDoes your wife have any student loans that could be paid off? \n\nAlso it is always important to remember that PSLF is not guaranteed. I would regularly check with your loan provider that the loan payments still qualify after hearing about the amount of people that were mislead last year when they tried to cash in at year 10. Also, there is no promise that the loan forgiveness will still be an option in 10 years either, it can be terminated by congress. There has already been bills introduced for eliminating it for new borrowers. It's up to you to determine what that means for you.\n\n\nThat said, with your income and financial set up, you're not being reckless by treating yourself to a big purchase every once in a while. You can wait and give it to yourself as a christmas or birthday gift or as a reward for something. Or you can set aside a small amount each month until you have enough for it so it doesn't feel like spending it all at once. You work hard, it's okay to spend some of that work on enjoying your life right now versus saving to enjoy it later. \n\n\n" User (gakuon): "Thanks for your comment, I really appreciate it.\n\nMy wife doesn't have any debt, because we have had to live apart on and off over the years because of work and school we have maintained separate finances and accounts. She has about 10k in savings independently of mine. (Though we could share finances if need be, its just where we are right now).\n\nI'm doing yearly updates and keeping paperwork about the PSLF. I know I'm making qualified payments and it covers all my loans as of now. What you say about it being possibly eliminated though is disturbing. \n\nAnyhow, I have typically saved a little at a time for a "big purchase" in the past, nothing huge but it was at the time. I guess at some point I just have to decide when is a safe time to make a big buy and hope for the best. When I'm in the store though with the item in my hand and go back and forth between, "Buy it!" and "Save, buy it later, it'll be fine later." I never buy it. I got some kinda buyers anxiety. "
User (gakuon): "I am 32 and finished my PhD a couple years back. From 16-30 essentially I was working myself through school and supplementing with loans so I have 146k in student loan debt. I am working now in public service to take advantage of the public service loan forgiveness program. (I've made sure my loans qualify and i'm on the right repayment plan). \n\nRight now I'm making 95k per year, and my wife is making about 67k per year. (before taxes). We had to live apart because of job opportunities for a while, but now we're back in the same city. In the past 18 months of working I've been able to save about 11k in a savings account and about 4k in my 403b (401k for non-profits). \n\nAfter my monthly bills I am able to save around 1000-1500 per month, which I'm now going to put the next 5000 or so into stocks, then keep a balance of cash and stocks increasing in parallel. \n\nFirst, what could I do better? \n\nSecond, and the main question I want advice about: I want to buy some things for myself but i've never bought anything for myself more than a couple hundred bucks before. I don't come from a well-off background and I want to make good financial choices. \n\nI want a nintendo switch, wanted for months, but I can't justify ~$500 for something like that. Also, I play guitar and have for a long time and want a nice guitar, the cheaper one I am interested in is about 2200, and the nicer one I would love is about 3400. \n\nAt what point should I consider it okay to spend money on myself for things like this? Thanks very much for any advice.\n\nEdit: Someone said I should mention more details about my budget. \n\n* After tax income: ~$5200/month\n\n* Rent: 2100/month (NYC, so its basically a dumpster at this price).\n\n* Student Loans: Currently ~400, going to go up to about 700 when I update with them in december.\n\n* Utilities: ~250/month (internet, phone, power).\n\n* Food/Random things ~250/week (1000/mo) (I budget for this but put the excess in savings at the end of each month).\n\n* Savings: ~1000/mo\n\nThis leaves a little wiggle room of about 400 per month for unexpected expenses that get added to savings or leisure at the end of each month. \n" Self: "> First, what could I do better?\n\nIf you can post a detailed budget people will jump in and give you specific advice.\n\nOtherwise all we can do is chant the usual "spend less save more drink the kool-aid, etc etc".\n\nIf you can budget, you can probably find space to buy yourself stuff. Especially if you two are clearing 130k/year already." User (gakuon): "I posted a bit of budget info, thanks for the suggestion. \n\nEdit: You said "If you can budget, you can probably find space to buy yourself stuff." My mindset is though, if I don't need it, I should save it. I want to know at what point I can relax that a bit. Should I have 26k in savings before doing anything else for instance (~6 months expenses if i was unemployed)? I just don't know when its a bad move to spend the money vs save it. \n" Self: "Ah so more of a meta question. Definitely have a 3-6 mo emergency fund before investing or splurging, or killing medium interest debt.\n\nBeyond that, depends on when you wanna retire. The table here is a good benchmark (based on after tax savings %):\n\nhttp://www.mrmoneymustache.com/2012/01/13/the-shockingly-simple-math-behind-early-retirement/\n\nThat assumes you're starting from 0, so the math changes a bit based on your current investments.\n\nFor you the equation changes more because of the mountain of debt you have to kill. So add those years on top. Then figure out what you wanna do."
User (gakuon): "I am 32 and finished my PhD a couple years back. From 16-30 essentially I was working myself through school and supplementing with loans so I have 146k in student loan debt. I am working now in public service to take advantage of the public service loan forgiveness program. (I've made sure my loans qualify and i'm on the right repayment plan). \n\nRight now I'm making 95k per year, and my wife is making about 67k per year. (before taxes). We had to live apart because of job opportunities for a while, but now we're back in the same city. In the past 18 months of working I've been able to save about 11k in a savings account and about 4k in my 403b (401k for non-profits). \n\nAfter my monthly bills I am able to save around 1000-1500 per month, which I'm now going to put the next 5000 or so into stocks, then keep a balance of cash and stocks increasing in parallel. \n\nFirst, what could I do better? \n\nSecond, and the main question I want advice about: I want to buy some things for myself but i've never bought anything for myself more than a couple hundred bucks before. I don't come from a well-off background and I want to make good financial choices. \n\nI want a nintendo switch, wanted for months, but I can't justify ~$500 for something like that. Also, I play guitar and have for a long time and want a nice guitar, the cheaper one I am interested in is about 2200, and the nicer one I would love is about 3400. \n\nAt what point should I consider it okay to spend money on myself for things like this? Thanks very much for any advice.\n\nEdit: Someone said I should mention more details about my budget. \n\n* After tax income: ~$5200/month\n\n* Rent: 2100/month (NYC, so its basically a dumpster at this price).\n\n* Student Loans: Currently ~400, going to go up to about 700 when I update with them in december.\n\n* Utilities: ~250/month (internet, phone, power).\n\n* Food/Random things ~250/week (1000/mo) (I budget for this but put the excess in savings at the end of each month).\n\n* Savings: ~1000/mo\n\nThis leaves a little wiggle room of about 400 per month for unexpected expenses that get added to savings or leisure at the end of each month. \n" Self: "Not an expert at all but let me just say that you earn your money, go out and spend some it's absolutely fine bud. Buy the switch now and maybe later grab that nice expensive guitar." I_have_shoes (I_have_shoes): "Good advice here"
User (gakuon): "I am 32 and finished my PhD a couple years back. From 16-30 essentially I was working myself through school and supplementing with loans so I have 146k in student loan debt. I am working now in public service to take advantage of the public service loan forgiveness program. (I've made sure my loans qualify and i'm on the right repayment plan). \n\nRight now I'm making 95k per year, and my wife is making about 67k per year. (before taxes). We had to live apart because of job opportunities for a while, but now we're back in the same city. In the past 18 months of working I've been able to save about 11k in a savings account and about 4k in my 403b (401k for non-profits). \n\nAfter my monthly bills I am able to save around 1000-1500 per month, which I'm now going to put the next 5000 or so into stocks, then keep a balance of cash and stocks increasing in parallel. \n\nFirst, what could I do better? \n\nSecond, and the main question I want advice about: I want to buy some things for myself but i've never bought anything for myself more than a couple hundred bucks before. I don't come from a well-off background and I want to make good financial choices. \n\nI want a nintendo switch, wanted for months, but I can't justify ~$500 for something like that. Also, I play guitar and have for a long time and want a nice guitar, the cheaper one I am interested in is about 2200, and the nicer one I would love is about 3400. \n\nAt what point should I consider it okay to spend money on myself for things like this? Thanks very much for any advice.\n\nEdit: Someone said I should mention more details about my budget. \n\n* After tax income: ~$5200/month\n\n* Rent: 2100/month (NYC, so its basically a dumpster at this price).\n\n* Student Loans: Currently ~400, going to go up to about 700 when I update with them in december.\n\n* Utilities: ~250/month (internet, phone, power).\n\n* Food/Random things ~250/week (1000/mo) (I budget for this but put the excess in savings at the end of each month).\n\n* Savings: ~1000/mo\n\nThis leaves a little wiggle room of about 400 per month for unexpected expenses that get added to savings or leisure at the end of each month. \n" Self: "Buy a Switch bundle and one other (discounted) digital game (< $30). I really liked Mario Odyssey. Wait a while before you get an extra set of controllers or another game. \n\nYou’re an adult. Save and buy stuff when you want to. I don’t think an entertainment console that you could use for several years is a bad investment. It’s better than going on an expensive Disney vacation. "
User (gakuon): "I am 32 and finished my PhD a couple years back. From 16-30 essentially I was working myself through school and supplementing with loans so I have 146k in student loan debt. I am working now in public service to take advantage of the public service loan forgiveness program. (I've made sure my loans qualify and i'm on the right repayment plan). \n\nRight now I'm making 95k per year, and my wife is making about 67k per year. (before taxes). We had to live apart because of job opportunities for a while, but now we're back in the same city. In the past 18 months of working I've been able to save about 11k in a savings account and about 4k in my 403b (401k for non-profits). \n\nAfter my monthly bills I am able to save around 1000-1500 per month, which I'm now going to put the next 5000 or so into stocks, then keep a balance of cash and stocks increasing in parallel. \n\nFirst, what could I do better? \n\nSecond, and the main question I want advice about: I want to buy some things for myself but i've never bought anything for myself more than a couple hundred bucks before. I don't come from a well-off background and I want to make good financial choices. \n\nI want a nintendo switch, wanted for months, but I can't justify ~$500 for something like that. Also, I play guitar and have for a long time and want a nice guitar, the cheaper one I am interested in is about 2200, and the nicer one I would love is about 3400. \n\nAt what point should I consider it okay to spend money on myself for things like this? Thanks very much for any advice.\n\nEdit: Someone said I should mention more details about my budget. \n\n* After tax income: ~$5200/month\n\n* Rent: 2100/month (NYC, so its basically a dumpster at this price).\n\n* Student Loans: Currently ~400, going to go up to about 700 when I update with them in december.\n\n* Utilities: ~250/month (internet, phone, power).\n\n* Food/Random things ~250/week (1000/mo) (I budget for this but put the excess in savings at the end of each month).\n\n* Savings: ~1000/mo\n\nThis leaves a little wiggle room of about 400 per month for unexpected expenses that get added to savings or leisure at the end of each month. \n" Self: "It all comes down to your priorities and perpetual choices, man. \n\nWhen I was a kid, I wanted a car. My parents were not in a place to buy me one, (not that they aould have anyway), and if I wanted it, I had to save. \n\nSo, I sat down, and made a priority list. I laid out what I really wanted, and what I would have to do to achieve ALL of my goals. \n\nIn my list was savings, giving, bills (cell phone and school clothes at the time), and goals. My goals have changed over the years, however the process is the same. \n\nWhich goals are the most impirtant to you? Which are the priorities?\n\nI will be honest, I hate debt, and $146,000 of it would be MY priority, hands down. It is one thing to invest, and make payments toward debt, but it is another to tie up cash flow forbother goals.\n\nAgain, it comes down to your preference and opinions. Good luck man!\n\n" User (gakuon): "Thanks for your comment. I also hate the debt. I'm in the public service loan forgiveness program though so if I make minimum payments for 10 years the balance will be forgiven, I should save ~80k in the end this way and can save the money I would have spent on the debt this way. It bugs me alot that I do have that high of a balance, but I am trying to play the long game with this one. I have no other debt though. \n\nI think an issue I'm having is that my priority is to be at a point where I have enough, but I'm not sure where that is. If I have enough, then I can use a bit. But if i dont have enough, and I use a bit, I shouldn't have used it. Do you know what I mean?" Self: "Money is a guarantee that we may have what we want in the future. Though we need nothing at the moment it insures the possibility of satisfying a new desire when it arises.” —Aristotle\n\nSorry for not responding earlier. Kid's birthday party and football do NOT mix well, lol.\n\nI absolutely know what you mean, man. The truth is, we may never have enough, at least in that regard. You have to define what your enough is...set the standard first. Dave Ramsey and other financial life coaches like to encourage 3-6 months of established emergency fund covering all expenses. That is a good standard of protection, should the worst scenario arise.\n\nThat being said, you HAVE TO ENJOY YOUR LIFE. \n\nMaybe beyond that, establish standards for spending on yourself. Say, as an example, $3,000 a year. Stick to that amount only, at least while you have other things to fund or save for. My wife and I believe in paying ourselves first. If you don't reward yourself for all your hard work, you will be only working to work, and that gets tiring and depressing. \n\nMy great-grandpa was worth $3-million when he died. However, he lived crazy...same pair of pants for 15 years but with a new sown patch every so often. He ate the cheapest foods, and let his home fall apart...and shopped only for the cheapest deals always. Now, that is the EXTREME. He became that way because of the Great Depression he had lived through. It doesn't mean he was right to save every penny and not enjoy his life. \n\nWe work to fulfill provision for our needs and the needs of our loved ones. Anything and everything beyond that provision is left up to our interpretation. Whether you choose to fulfill the needs of others, spend the money on toys, or just save...all up to you. \n\nHowever, my only advice is this...you can look for deals or cheaper ways to buy the quality product you desire...but do not skimp on quality. Spend your hard-earned money on something that you're going to value and look at with pride. If it is your Nintendo, sure, find it cheaper or on sale, but buy the works...get quality. Same with the guitar. Make it worth the purchase...this adds to the mindset of spending and saving. \n\nAnybody can buy a hundred cheap things and then wonder where their money went at the end of thr day. If you had saved your money and sacrificed to get to that point, then buying quality items helps you respect those purchases even more, which reinforces the concept of saving for whst truly matters.\n\n"
User (gakuon): "I am 32 and finished my PhD a couple years back. From 16-30 essentially I was working myself through school and supplementing with loans so I have 146k in student loan debt. I am working now in public service to take advantage of the public service loan forgiveness program. (I've made sure my loans qualify and i'm on the right repayment plan). \n\nRight now I'm making 95k per year, and my wife is making about 67k per year. (before taxes). We had to live apart because of job opportunities for a while, but now we're back in the same city. In the past 18 months of working I've been able to save about 11k in a savings account and about 4k in my 403b (401k for non-profits). \n\nAfter my monthly bills I am able to save around 1000-1500 per month, which I'm now going to put the next 5000 or so into stocks, then keep a balance of cash and stocks increasing in parallel. \n\nFirst, what could I do better? \n\nSecond, and the main question I want advice about: I want to buy some things for myself but i've never bought anything for myself more than a couple hundred bucks before. I don't come from a well-off background and I want to make good financial choices. \n\nI want a nintendo switch, wanted for months, but I can't justify ~$500 for something like that. Also, I play guitar and have for a long time and want a nice guitar, the cheaper one I am interested in is about 2200, and the nicer one I would love is about 3400. \n\nAt what point should I consider it okay to spend money on myself for things like this? Thanks very much for any advice.\n\nEdit: Someone said I should mention more details about my budget. \n\n* After tax income: ~$5200/month\n\n* Rent: 2100/month (NYC, so its basically a dumpster at this price).\n\n* Student Loans: Currently ~400, going to go up to about 700 when I update with them in december.\n\n* Utilities: ~250/month (internet, phone, power).\n\n* Food/Random things ~250/week (1000/mo) (I budget for this but put the excess in savings at the end of each month).\n\n* Savings: ~1000/mo\n\nThis leaves a little wiggle room of about 400 per month for unexpected expenses that get added to savings or leisure at the end of each month. \n" Self: "I think you could afford it . Personally, there are worst things you can do with your money. Also, I’m biased, since I love my switch!"
User (xRevolvz): "I have a hypothetical question, that obviously should not be done in real life due to interest, but would a credit card loop possible and would you be able to manage it enough to the point where you could continuously pay your credit card payments with other credit cards without your credit score taking a hit, for the rest of your life? \n\nExample: I apply for 20 credit cards over a period of time and get accepted with all of them. Each credit card has a $30,000 credit limit. I buy a TV for $6000 with one credit card (A), and get a bill next month. I pay the $30 bill with credit card (B) by taking cash out of an ATM and sending cash in. Next month a credit card bill comes from (A) and (B) I pay credit card (A) with credit card (B) and pay credit card (B) with (A)... I continue on until interest starts to cause card (A) starts going past 25% of the credit limit due to interest, and then start using credit card (C) to pay off (A) and use (B) to pay off (C)... continue on and on and on for the rest of my life carrying the $6000 purchase plus interest across several credit cards. \n\nIs this theoretically possible to accomplish while maintaining a good credit score and basically never pay for the item you purchased? If so could this be applied on a bigger scale? Let’s say you are rich and have a credit line of $1,000,000 on each card and buy a $750,000 house in cash. Are there any protections against people doing this? " Self: "You can't pay for a credit card with a credit card.\n\nIf you take a cash advance off card B, you are charged an additional premium on your standard interest rate. \n\nIf you tried to do all this the lending institutions would win and you would lose. You're not going to best them except by paying what you contractually agreed to pay when you took the card. \n\nPs.the credit bureau has a score which begin to tank and lenders would stop granting you new ones of credit."
User (xRevolvz): "I have a hypothetical question, that obviously should not be done in real life due to interest, but would a credit card loop possible and would you be able to manage it enough to the point where you could continuously pay your credit card payments with other credit cards without your credit score taking a hit, for the rest of your life? \n\nExample: I apply for 20 credit cards over a period of time and get accepted with all of them. Each credit card has a $30,000 credit limit. I buy a TV for $6000 with one credit card (A), and get a bill next month. I pay the $30 bill with credit card (B) by taking cash out of an ATM and sending cash in. Next month a credit card bill comes from (A) and (B) I pay credit card (A) with credit card (B) and pay credit card (B) with (A)... I continue on until interest starts to cause card (A) starts going past 25% of the credit limit due to interest, and then start using credit card (C) to pay off (A) and use (B) to pay off (C)... continue on and on and on for the rest of my life carrying the $6000 purchase plus interest across several credit cards. \n\nIs this theoretically possible to accomplish while maintaining a good credit score and basically never pay for the item you purchased? If so could this be applied on a bigger scale? Let’s say you are rich and have a credit line of $1,000,000 on each card and buy a $750,000 house in cash. Are there any protections against people doing this? " Self: "You’re hilarious.\n\nYou can’t pay credit card with another credit card directly. You can do a balance transfer but the balance transfers—with exception of the intro offer (much like cash bonus or points bonus for opening the card) chase slate has—its 2-3%.\n\nYou cannot do balance transfer for the full credit limit amount and sometimes even only offer you a certain percentage of your credit line that can be used for a BT.\n\nNot to mention the higher your balance is, the greater the minimum balance will be.\n\nAnd while it is possible to have a million dollars in cl, to get it is dmn near impossible these days. I’ve seen 500000 limit on cards (opened in 99) and even then they only accept wires or cashier check—not credit card—for home purchases."
User (xRevolvz): "I have a hypothetical question, that obviously should not be done in real life due to interest, but would a credit card loop possible and would you be able to manage it enough to the point where you could continuously pay your credit card payments with other credit cards without your credit score taking a hit, for the rest of your life? \n\nExample: I apply for 20 credit cards over a period of time and get accepted with all of them. Each credit card has a $30,000 credit limit. I buy a TV for $6000 with one credit card (A), and get a bill next month. I pay the $30 bill with credit card (B) by taking cash out of an ATM and sending cash in. Next month a credit card bill comes from (A) and (B) I pay credit card (A) with credit card (B) and pay credit card (B) with (A)... I continue on until interest starts to cause card (A) starts going past 25% of the credit limit due to interest, and then start using credit card (C) to pay off (A) and use (B) to pay off (C)... continue on and on and on for the rest of my life carrying the $6000 purchase plus interest across several credit cards. \n\nIs this theoretically possible to accomplish while maintaining a good credit score and basically never pay for the item you purchased? If so could this be applied on a bigger scale? Let’s say you are rich and have a credit line of $1,000,000 on each card and buy a $750,000 house in cash. Are there any protections against people doing this? " Self: "Given that you'd be paying cash advance fees you'd quickly run out your credit line.\n\nThat's assuming you'd be able to advance the full limit of the card, which is uncommon. I think my advance limit is around 30% of the line on most of my cards, specifically because if you had a $100,000 line you could advance it all, board a plane to Bangkok, and never be seen again."
User (xRevolvz): "I have a hypothetical question, that obviously should not be done in real life due to interest, but would a credit card loop possible and would you be able to manage it enough to the point where you could continuously pay your credit card payments with other credit cards without your credit score taking a hit, for the rest of your life? \n\nExample: I apply for 20 credit cards over a period of time and get accepted with all of them. Each credit card has a $30,000 credit limit. I buy a TV for $6000 with one credit card (A), and get a bill next month. I pay the $30 bill with credit card (B) by taking cash out of an ATM and sending cash in. Next month a credit card bill comes from (A) and (B) I pay credit card (A) with credit card (B) and pay credit card (B) with (A)... I continue on until interest starts to cause card (A) starts going past 25% of the credit limit due to interest, and then start using credit card (C) to pay off (A) and use (B) to pay off (C)... continue on and on and on for the rest of my life carrying the $6000 purchase plus interest across several credit cards. \n\nIs this theoretically possible to accomplish while maintaining a good credit score and basically never pay for the item you purchased? If so could this be applied on a bigger scale? Let’s say you are rich and have a credit line of $1,000,000 on each card and buy a $750,000 house in cash. Are there any protections against people doing this? " Self: "> I buy a TV for $6000 with one credit card (A), and get a bill next month. \n\nOk.\n\n> I pay the $30 bill with credit card (B) by taking cash out of an ATM and sending cash in. \n\nCash advances charge interest immediately. There is no grace period. The end result is that you will continue to accrue interest as if you had just left it on one card originally.\n\n> Next month a credit card bill comes from (A) and (B) I pay credit card (A) with credit card (B) and pay credit card (B) with (A)... \n\nSo at this rate, not only are you paying the ~25% or whatever APR on the balance you're carrying, but you're also paying the ~25% or whatever APR on your cash advances. \n\n> I continue on until interest starts to cause card (A) starts going past 25% of the credit limit due to interest, and then start using credit card (C) to pay off (A) and use (B) to pay off (C)... continue on and on and on for the rest of my life carrying the $6000 purchase plus interest across several credit cards.\n\nYou will be able to go at this for awhile, but the end result is that you will end up owing $600,000 in debt, $30,000 on each card, for your $6,000 TV.\n\n> Is this theoretically possible to accomplish while maintaining a good credit score and basically never pay for the item you purchased? If so could this be applied on a bigger scale? Let’s say you are rich and have a credit line of $1,000,000 on each card and buy a $750,000 house in cash. Are there any protections against people doing this?\n\nThe protection is that buying a $750,000 house in cash with a 25% APR is not a good deal."
User (xRevolvz): "I have a hypothetical question, that obviously should not be done in real life due to interest, but would a credit card loop possible and would you be able to manage it enough to the point where you could continuously pay your credit card payments with other credit cards without your credit score taking a hit, for the rest of your life? \n\nExample: I apply for 20 credit cards over a period of time and get accepted with all of them. Each credit card has a $30,000 credit limit. I buy a TV for $6000 with one credit card (A), and get a bill next month. I pay the $30 bill with credit card (B) by taking cash out of an ATM and sending cash in. Next month a credit card bill comes from (A) and (B) I pay credit card (A) with credit card (B) and pay credit card (B) with (A)... I continue on until interest starts to cause card (A) starts going past 25% of the credit limit due to interest, and then start using credit card (C) to pay off (A) and use (B) to pay off (C)... continue on and on and on for the rest of my life carrying the $6000 purchase plus interest across several credit cards. \n\nIs this theoretically possible to accomplish while maintaining a good credit score and basically never pay for the item you purchased? If so could this be applied on a bigger scale? Let’s say you are rich and have a credit line of $1,000,000 on each card and buy a $750,000 house in cash. Are there any protections against people doing this? " Self: "After you get this loop going, I will be pleased to sell you a perpetual-motion-fueled cash-making machine so you can pay off the increasing finance charges with real(-ish) money.\n\nNot only that, but it can be attached to your car so you don't need to put gas in the tank. And for only a small additional payment, there is an attachment that will help you fight male-pattern baldness."
User (xRevolvz): "I have a hypothetical question, that obviously should not be done in real life due to interest, but would a credit card loop possible and would you be able to manage it enough to the point where you could continuously pay your credit card payments with other credit cards without your credit score taking a hit, for the rest of your life? \n\nExample: I apply for 20 credit cards over a period of time and get accepted with all of them. Each credit card has a $30,000 credit limit. I buy a TV for $6000 with one credit card (A), and get a bill next month. I pay the $30 bill with credit card (B) by taking cash out of an ATM and sending cash in. Next month a credit card bill comes from (A) and (B) I pay credit card (A) with credit card (B) and pay credit card (B) with (A)... I continue on until interest starts to cause card (A) starts going past 25% of the credit limit due to interest, and then start using credit card (C) to pay off (A) and use (B) to pay off (C)... continue on and on and on for the rest of my life carrying the $6000 purchase plus interest across several credit cards. \n\nIs this theoretically possible to accomplish while maintaining a good credit score and basically never pay for the item you purchased? If so could this be applied on a bigger scale? Let’s say you are rich and have a credit line of $1,000,000 on each card and buy a $750,000 house in cash. Are there any protections against people doing this? " User (xRevolvz): "I feel like there is a lot of confusion, this is a hypothetical question, I’m not asking if it is a good idea, theoretically would I be able to do this and maintain it for years? So far I haven’t seen any comments of people answering the actual question, only stating that it’s a bad idea because in the end the interest would add up and you would have to pay it all back. My question clearly stated that because of interest it wasn’t a good idea, but is it theoretically possible to maintain this loop for years without ever actually having to pay a cent until you run out of credit cards to pay with? "
User (xRevolvz): "I have a hypothetical question, that obviously should not be done in real life due to interest, but would a credit card loop possible and would you be able to manage it enough to the point where you could continuously pay your credit card payments with other credit cards without your credit score taking a hit, for the rest of your life? \n\nExample: I apply for 20 credit cards over a period of time and get accepted with all of them. Each credit card has a $30,000 credit limit. I buy a TV for $6000 with one credit card (A), and get a bill next month. I pay the $30 bill with credit card (B) by taking cash out of an ATM and sending cash in. Next month a credit card bill comes from (A) and (B) I pay credit card (A) with credit card (B) and pay credit card (B) with (A)... I continue on until interest starts to cause card (A) starts going past 25% of the credit limit due to interest, and then start using credit card (C) to pay off (A) and use (B) to pay off (C)... continue on and on and on for the rest of my life carrying the $6000 purchase plus interest across several credit cards. \n\nIs this theoretically possible to accomplish while maintaining a good credit score and basically never pay for the item you purchased? If so could this be applied on a bigger scale? Let’s say you are rich and have a credit line of $1,000,000 on each card and buy a $750,000 house in cash. Are there any protections against people doing this? " Self: "CCs don't accept payments from other CCs.\n\nCash advances are calculated daily AND payments are applied to cash advances after the primary balance is paid off, meaning if it took you 2 months to pay off your primary balance ALL your payments go to the primary balance and the cash advance balance has been accruing interest daily for 2 months! Not a good idea." User (xRevolvz): "Theoretically, it is possible though? " Self: "Paying with a CC, no.\n\nIt's possible with the cash advance, but youd be paying a LOT more in interest that it would be cost prohibitive. "
User (xRevolvz): "I have a hypothetical question, that obviously should not be done in real life due to interest, but would a credit card loop possible and would you be able to manage it enough to the point where you could continuously pay your credit card payments with other credit cards without your credit score taking a hit, for the rest of your life? \n\nExample: I apply for 20 credit cards over a period of time and get accepted with all of them. Each credit card has a $30,000 credit limit. I buy a TV for $6000 with one credit card (A), and get a bill next month. I pay the $30 bill with credit card (B) by taking cash out of an ATM and sending cash in. Next month a credit card bill comes from (A) and (B) I pay credit card (A) with credit card (B) and pay credit card (B) with (A)... I continue on until interest starts to cause card (A) starts going past 25% of the credit limit due to interest, and then start using credit card (C) to pay off (A) and use (B) to pay off (C)... continue on and on and on for the rest of my life carrying the $6000 purchase plus interest across several credit cards. \n\nIs this theoretically possible to accomplish while maintaining a good credit score and basically never pay for the item you purchased? If so could this be applied on a bigger scale? Let’s say you are rich and have a credit line of $1,000,000 on each card and buy a $750,000 house in cash. Are there any protections against people doing this? " Self: "You can't pay credit card bills directly with credit cards. You can pull off some stuff like this with special payment services but there's usually a fee that makes it nonviable." User (xRevolvz): "Cash advance is what I was thinking, in the example I took cash out of an ATM. " The_World_Toaster (The_World_Toaster): "A cash advance has a much higher interest rate and starts accumulating immediately. it wouldn't work."
User (asdfqwerzzz2): "Hey all,\n\nJust opened up a Fidelity ROTH IRA, and contributed ~$2800 to it.\n\nAt first, I but $500 of an ETF that was extremely conservative, but realized for my age (20,M,no debt) that I can afford to be more aggressive.\n\nWith the remaining $2300 I invested in FUSEX (meant to mirror the s&p500).\n\nAfter doing more reading, people say that FUSEX has a minimum ROTH investment of $2500. Did I mess up and will I get fees? Or have I actually met the criteria for this minimum / does this minimum actually exist?" Self: "You may find these links helpful:\n\n- [Retirement Accounts](/r/personalfinance/wiki/index#wiki_retirement_accounts)\n- ["How to handle $"](/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 (asdfqwerzzz2): "Hey all,\n\nJust opened up a Fidelity ROTH IRA, and contributed ~$2800 to it.\n\nAt first, I but $500 of an ETF that was extremely conservative, but realized for my age (20,M,no debt) that I can afford to be more aggressive.\n\nWith the remaining $2300 I invested in FUSEX (meant to mirror the s&p500).\n\nAfter doing more reading, people say that FUSEX has a minimum ROTH investment of $2500. Did I mess up and will I get fees? Or have I actually met the criteria for this minimum / does this minimum actually exist?" Self: "https://fundresearch.fidelity.com/mutual-funds/fees-and-prices/315911206\n\nMinimum IRA Investment: $0" User (asdfqwerzzz2): "Thank you! "
User (asdfqwerzzz2): "Hey all,\n\nJust opened up a Fidelity ROTH IRA, and contributed ~$2800 to it.\n\nAt first, I but $500 of an ETF that was extremely conservative, but realized for my age (20,M,no debt) that I can afford to be more aggressive.\n\nWith the remaining $2300 I invested in FUSEX (meant to mirror the s&p500).\n\nAfter doing more reading, people say that FUSEX has a minimum ROTH investment of $2500. Did I mess up and will I get fees? Or have I actually met the criteria for this minimum / does this minimum actually exist?" Self: "Fidelity recently changed a lot of there funds to zero minimum to invest. They also have awesome customer service so don’t be afraid to give them a call with any questions you may have. " User (asdfqwerzzz2): "Thanks for the reply, very helpful! "
User (LonnyF): "I have about $35,000 in CC debt across 4 cards. I'm making more than minimum payments but i'm getting hit with varying rates of interest. What's the best way to consolidate into one recurring payment? I'm not looking to reduce my debt or do anything to jeopardize my credit rating which is 720+. I just want to simplify and reduce interest. Thanks in advance!" Self: "You may find these links helpful:\n\n- [What's the best way to pay down my debt?](/r/personalfinance/wiki/debt#wiki_what.27s_the_best_way_to_pay_down_my_debt.3F)\n- [Dealing with collections](/r/personalfinance/wiki/collections)\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 (LonnyF): "I have about $35,000 in CC debt across 4 cards. I'm making more than minimum payments but i'm getting hit with varying rates of interest. What's the best way to consolidate into one recurring payment? I'm not looking to reduce my debt or do anything to jeopardize my credit rating which is 720+. I just want to simplify and reduce interest. Thanks in advance!" Self: "Go to your local credit union, see if they'll take all of the credit card debt and roll it into one loan (it'll be a lot lower % as well), only do this if you can restrict yourself to not using any credit until that's paid off.\n\n&#x200B;\n\nIf the credit union wont lend to you (try 2 or 3), then aggressively pay down the highest interest rate first, then move onto the second..etc until they're all paid off. I dont want to be judgey, but if you end up with 35k in credit card debt, it may be best to stay away from credit cards."
User (LonnyF): "I have about $35,000 in CC debt across 4 cards. I'm making more than minimum payments but i'm getting hit with varying rates of interest. What's the best way to consolidate into one recurring payment? I'm not looking to reduce my debt or do anything to jeopardize my credit rating which is 720+. I just want to simplify and reduce interest. Thanks in advance!" Self: "Open 0% balance transfer cards." Caravaggio_ (Caravaggio_): "None of them are gonna offer him a large enough line of credit for $35k debt. Also I doubt they will be about to pay it all off within the promotional period. " Self: "Oh so it’s all or nothing? No. 5k moved to 0% is better than none." Caravaggio_ (Caravaggio_): "True if the owed amount was under $10k your advice would be good). but they need a large loan (HELOC or take a loan out of your 401k) to cover the entire debt owed. $35k on a credit card (15% APR) comes out closer to $5200 in just one year interest charged. I've seen interest rates be as high as 29.99 percent on cards and if that's true you will be charged in a year close to $10k in interest alone. "
User (Matt463789): "My wife recently had a small medical issue and we made the mistake of taking her to an emergency room, instead of an immediate care. They didn't explain the difference until afterwards. They pretty much just gave her a quick look and prescribed some antibiotics and now they have sent us a bill for almost $2000. I have read that you can sometimes negotiate the price down and I was wondering if anyone had any helpful tips or info on how to mitigate or contest this bill.\nThanks!" Self: "You may find these links helpful:\n\n- [Emergency Funds](/r/personalfinance/wiki/emergencyfunds)\n- ["How to handle $"](/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 (Matt463789): "My wife recently had a small medical issue and we made the mistake of taking her to an emergency room, instead of an immediate care. They didn't explain the difference until afterwards. They pretty much just gave her a quick look and prescribed some antibiotics and now they have sent us a bill for almost $2000. I have read that you can sometimes negotiate the price down and I was wondering if anyone had any helpful tips or info on how to mitigate or contest this bill.\nThanks!" Self: "The cost of emergency room is not just the antibiotic that was given but the entire support structure that was setup to receive and treat patients. Insurances would pay in the past but are now starting to push us to pay when they think it was not an emergency.\n\nI say this so that you don't take an agressive stance with the facility when negotiating but do negotiate as it is a lot of money. Try to find comparative cost in nearby areas (they will not willingly disclose), and do not underbid them so much (offering 50 bucks when 500-1000 may be expected) that they stop talking to you. If you don't have the money it is much easier, you refuse to pay and they will try to settle but if we have money you can't use that strategy much (the stakes for you are much higher with collections etc), and it does not make sense to use the threat then. \n\nThen there are some claim negotiators who can do this in your behalf. They don't work for small fees but they may take this 2000 dollar case: if they save you 1000 and charge 100 as negotiation fee you may be happy to pay. Some may do it for free too but the one I checked once was fee based.\n\nLast but not the least, if you have money sitting in HSA, use that, but I guess you know that already. That at least saves the taxes.\n\nWish there was an easy answer but it will be so subjective."
User (Matt463789): "My wife recently had a small medical issue and we made the mistake of taking her to an emergency room, instead of an immediate care. They didn't explain the difference until afterwards. They pretty much just gave her a quick look and prescribed some antibiotics and now they have sent us a bill for almost $2000. I have read that you can sometimes negotiate the price down and I was wondering if anyone had any helpful tips or info on how to mitigate or contest this bill.\nThanks!" Self: "Not all hospitals will work with you to reduce the amount but it is worth a try. What you will want to do is go IN PERSON to their billing the department and speak with someone about reducing. Ask for an itemized bill of every single thing they charged you for. Then if you can't lower the charge, tell them you can pay X amount now and then a monthly payment of something low but that is all you can afford.\n\nThey want to be paid, regardless of when. I stretched a $3000 bill over 4 years this way.\n\nGood luck."
User (Matt463789): "My wife recently had a small medical issue and we made the mistake of taking her to an emergency room, instead of an immediate care. They didn't explain the difference until afterwards. They pretty much just gave her a quick look and prescribed some antibiotics and now they have sent us a bill for almost $2000. I have read that you can sometimes negotiate the price down and I was wondering if anyone had any helpful tips or info on how to mitigate or contest this bill.\nThanks!" Self: "I would call and explain the situation to the billing department, tell them you really dont have the money to pay it but you could ask your parents (this doesnt need to be true) if you could get $500, start there and try to pay as little as possible. They inflate bills for this exact reason." thewizardofash (thewizardofash): "> tart there and try to pay as little as possible.\n\nI'd be careful with that as they can still send OP to collections." Self: "Yes, I didnt say not to pay it, but there is a long period of time before it goes to collections, often 90-180 days and you can usually get a reasonable amount quickly because the hospital wants to be paid."

Subsets and Splits