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I saved a bunch of money, now I don't know what to do with it.

I originally posted this to /r/frugal and they suggested that I post here. I have had a job for the last several years where I have been earning only $20,000-23,000. Because of this, I haven't really been purposefully stocking away money. I feel like I am living on the razor's edge, but somehow I have $53,000 in the bank. I need to know what to start doing with this. Clearly I am not spending as much as I think I am. I really am not quite sure how I have done this. There was a time about 4-5 years ago I only had $23 in the bank. I didn't really make an overly concerted effort to change, but here I am. I have about $8,000 in student loans, $0 in credit card debt and a credit score of about 815. I have nothing saved for retirement. I know I should get a Roth IRA, but that's about it. I know the difference between a Roth IRA and a regular IRA, but I don't really know what really happens when I have one. 401K is not an option. I work for a non-profit and nothing like that is offered. I have to buy all my own insurance. A very nice bonus is that by the end of the year, my salary should increase to somewhere between $40,000 and $50,000. I have no plans to change my spending habits at all because I am comfortable, so I imagine I will have up to $30,000 income after expenses for the foreseeable future. This is all quite new to me. What do I do? /r/frugal also said my numbers don't add up. It's a long story but I live rent-free. (Not at my parents.)

For the sake of brevity I'm going to be really specific: Pay off debt Make an emergency fund (probably about $10k in your case). Keep it in the bank. Open Vanguard Roth IRA, contribute 5k. Select Prime Money Market as the investment. Open Vanguard taxable account, put rest of the money into it. Prime Money Market too. Read [Bogleheads Investment Philosophy]( Figure out what you want your asset allocation to be (stocks vs bonds ratio). Age in bonds is a good rule of thumb. Figure out what you want your domestic vs. international stock ratio to be. 30-50% intl is the norm. Following the [principles of tax-efficient fund placement]( use your Roth to purchase as much of your bond allocation (Vanguard Total Bond Market) as possible. Select to have dividends reinvested. If you need more than 5k of bonds, use Vanguard Intermediate-Term Tax-Exempt Bond Fund in the taxable account. With the rest of your money -- the stock portion of the allocation -- purchase Vanguard Total Stock Market and Vanguard Total International Stock Market in the appropriate ratio. In your taxable account, select to not have dividends reinvested. Dividends will accumulate as cash. You can withdraw this cash to pay taxes (you will owe some taxes every year on the earnings of the taxable account) and/or to re-balance your portfolio every year or so. Each year, move 5k into the Roth and re-balance everything. If that seems complicated, blame taxes. It would be much simpler if you could put all the money in a Roth. Then you could just use a target date fund and be done with it. But if you did that in your taxable account, you'd be paying needless extra taxes every year.

If you work for a non-profit they should be able to open a 403B for you. A 403B is the same as a 401K but non-profit organizations are allowed to contribute differently than other companies so the names are different. Your employer may not want to contribute anything to your 403B, but they don't have to... they might be required by law to open one for you and to let you add to it for your retirement as you wish with each paycheck.

personalfinance

MoneybagsThrowaway

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mackstann

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Eldritter

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On a scale of 1 to Tide Pod Challenge, how dumb would it be to buy a house with $175+ in student loans?

The debt is mostly from law school and I have no other debt. I make around $50k as a prosecutor; I make small income-based payments every month and I'm on track for student loan forgiveness in about 8 years. To keep a mortgage payment around 1/4 of my take-home pay, I would not buy a house that cost more than $175k and I'll only do a 15-year fixed. By the end of the year I will have around $40k saved; most of which will be a down payment. Would it be dumb for me to buy a house at this juncture? Warning: I'm not getting a "better job" for more money so don't even ask.

Couple questions: How confident are you about staying in the home a considerable amount of time (4+ years?) Why are you so adamant about a 15 year fixed? They're ideal, but I'd open yourself up to 20 or 30 year loans, given the circumstances. Even a 7 year ARM can be a good choice depending on the circumstances. What can you rent for? Off the top of my head, it doesn't seem dumb. A lot of it depends on how long you'll be in the home, how confident you are those loans will be forgiven, what rent is like in your city, etc.

175k on a 50k salary? JESUS! I'm on track for student loan forgiveness in about 8 years Why would you spend the next 8 years of your life up to your eyeballs in debt? You are in no position to buy a house and will not be until this debt is 100% gone. If I were you, the first thing I would do is start looking for a new job. You need to get your income WAY up. You can't afford to make only 50k with that much student loan debt.

personalfinance

law_man_863

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shoot_your_eye_out

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Cheesewheeler89

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30 to 15 year Refi?

Currently in the 4th year of a 30-year fixed at 3.625%. Current balance is $560k. Monthly payment is $2800 but we pay an extra 1/12 payment each month (effectively make 13 payments a year). With the current rates, we are considering refinancing to a conforming 15-year fixed in the high 2s. This would involve buying down the balance to $510k. We have the cash available to do this buy down. We also have the monthly cash flow to afford the extra ~$500/month payment. My math shows we will save $200k in interest over the life of the loan. We plan on staying in this house for a long time. Thoughts on if it is worth buying down the balance to get a conforming loan? Other thoughts?

I just did almost exactly this. Had 3.875 30 yr and paid down to 500k and got a 15 year at 2.875 with no closing cost. A true no cost refinance. The difference in interest was significant so I didn’t even look into doing the invest in stock market option. My goal also to pay off this loan ASAP as well. I just did a comparison of if I paid the extra amount on my existing vs the extra based on refinance, I would still be paying hundreds of dollars more towards interest if I just made extra payments based on existing loan. Now my payments will have an additional 1k per month to principal and way less towards interest.

that's enough of a rate difference to justify a refi if you are staying put and the closing costs are reasonable. paying down $50K of principle out of savings is a personal thing. if that leaves you with healthy savings, it probably makes sense. if that taps you, I wouldn't do it. it will cost you some interest, but paying your current note down at a payment level to pay off at 15 years would leave you with some flexibility and you can hang onto that 50k if you want. I refi'd from a 30 to a 15 a couple years ago and am glad i did. the savings over the life of the loan is significant and the thought of being done with my mortgage before my kids are out of high school is exciting.

personalfinance

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Quitting my job next week and wanting to make sure I get my vacation pay, not sure what to do to ensure this?

Pretty much as the title says. &x200B I requested my vacation hours to be cashed out and have decided to leave my job due to a new job offer making more money. I put my two weeks notice in BEFORE receiving my vacation pay and I just want to know the legality of not receiving my pay and/or the actions I should take in my coming time to try and make sure I receive my pay. &x200B TLDR: read title

There are a handful of states that require PTO to be paid out regardless. If you're in one of those states, you're good. Most states require them to pay it out of the have a written policy that states they pay it out. You'll need to check your handbook, or any other place with listed company policies if you live in one of these states. If you happen to live in the handful of states without any laws dictating PTO payout, you're SOL. It likely won't matter that you requested it get cashed out before notifying them you're leaving. If you happen to be in this situation, the only thing you can really do is talk to a lawyer.

I’m in Canada... but i got my vacation time paid to me in my last pay stub/deposit when i was in the same situation as you (got a new job that pays more, had 2 weeks of unused vacation, 2 weeks notice)

personalfinance

Tarryn921

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MarcableFluke

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Capital one Helzberg Diamond account

When I bought my now wife's engagement ring I financed it at helzberg, what I didnt know at the time was that I was actually applying for a Capital one Helzberg credit card. They made it seem as if I was just applying for a 0% interest loan program. Anyways long story short, the ring has been paid for within the terms of the card, I never paid any interest but now I have this stupid $5000 capital one helzberg credit card. Is there someway I can have it changed to a credit card that I might actually use? I dont buy jewlrey often enough for this to be useful for me, and at the same time I dont want to close it out of fear of hurting my credit. Or am I just stuck with this crap credit card? Thank you for your replies.

Just cut it up and forget it exists if the balance is zero. You don't get a credit ding for closing the account, your credit builds because it still shows an open line of credit, and no risk of it being stolen or anything. I would set up an online alert if it ever gets used again, like a text or email at least. Otherwise you could call capital one and ask about moving the account somewhere else buy I've never heard of such a thing.

Call capital one and see. If it is a full card, you very likely can change it. Of course, you can always cancel it. I had one of those, bought a vespa but wanted to finance it over 2 months, and got one of those credit cards. Really crappy terms outside of the 0% period, so cancelled it. If similar, do the same.

personalfinance

tnolan182

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ctpuzah

A medical loan I was religiously paying was sent to collections. What can I do?

I was sent to the hospital December of 2010 and was billed $1500 for a dislocated shoulder. I didn't have a high paying job but wanted to pay for the bill (without discounts, or help) so the hospital opened a medical-credit account for me through Torrey Pines bank, in which I paid religiously since. Fast forward 3 months ago, I got the bill down to $109. At that time, I was also paying off a lot of my credit cards thanks to a 2nd job that gave me a lot of of extra hours I thought that my Torrey Pines account is one of the credit accounts that I have paid off and so, I stopped paying the account. They used bankdatacenter.com as their online payment site, and that website doesnt show any history of payments or any current balance, so I had no way of checking if I paid it off (I couldnt remember) 2 weeks ago, I received a collection letter asking for $249.00 plus $98.00 interest that was said I owed to the hospital. I found out that Torrey Pines sent back my $109 bill back to the hospital (cause I stopped paying), then the hospital sent the bill to collection I owe $109. Not $300+ that the collection company wants. What can I do? I already sent them a mail that asking for a verification of the debt. In addition, rummaging through my unread mails. I found that last statement of me owing only $109. What can I do to fight the extra dollars that they want? I have every intention and capability to pay down that $109 bill.

You missed a payment. What is your expectation? Your only recourse here is to call Torrey Pines and explain the circumstances. If they agree to your story, you'll have to work with them to get it back from the collection company. Otherwise, pay the 300+ and move on.

In the USA collection agencies buy your debt from, in this case, the hospital. What this means is that the agency contacting you to collect has a "bottom line" they can accept from you, which I would assume is the amount they paid the hospital and most likely a percentage beyond for operating/overhead. What this means for you is that you can contact the collections agency and make them an offer, provided you're able to pay the amount you offer at the time of that contact. Best wishes getting this sorted out. If you have the time and the inclination, would you mind explaining how working through a bank with the hospital changed, if it did at all, the way in which your medical debt was reported to the credit bureaus? I ask because medical debt is, to the best of my understanding, not reported or considered the same as other debt. I wonder if shifting that debt to a bank for a payment plan changes that.

personalfinance

rhkenji

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Rain_King

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-farrago

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Shot in the dark but I’m desperate. Can anyone help me understand my options at a Uruguayan hospital asking for daily payments? I’m a US citizen.

My dad and stepmom are vacationing in Uruguay. He unfortunately talked her out of travel insurance. He had a very bad fall requiring emergency brain surgery and will be in an induced coma for weeks. The charges are ~10k/day. They want us to pay in real time. After 4 days we’ve maxed out credit cards. They won’t work with a payment plan. My parent’s insurance only covers 50k of international expenses. Do we have other options? Does anyone have experience using Uruguayan hospitals as a foreigner? We’re trying to get in touch with the embassy. Thank you in advance for any ideas on how to navigate this. On top of trying to keep my father alive, this is beyond overwhelming.

Medical airplanes can and do transport critically ill people like your father with brain injuries. They can and will work with doctors in both the sending and receiving hospital to make sure they safely can, but they are pressurized, or can fly at low altitudes. I don’t know where you live, but I would try calling a large hospital where you would expect he could be treated near your home and see what they can offer. Some hospitals have either their own airplane or can recommend one they work with. I would reach out the embassy first, but then if they are of limited assistance, I would contact a hospital where you are from. I know that the large hospital near me has a airplane and they can fly anywhere in the America’s. But also your insurance company might be a good place to turn to in this instance, they may have their preferred air service they have a deal worked out with. Good luck.

I’ve previously done rotations as a resident in 2nd world countries. If you were in a private hospital and could not pay they would turf you to a public hospital (where I was at the time). Depending on the country the variation in quality of care for public hospitals can be enormous. I’ve also done air medical evacuations. Yes, low level flights (it’s been years but I believe they are under 10,000 feet) are possible. Takes longer with more stops to refuel. At that time the company was charging around $100,000 for a flight like this from Europe. Africa would add another 12-16hrs so I would bet a doubling of the cost. For a private (not insured) flight they would want cash up front. It’s been years so verify all this yourself. I assume he has USA insurance? Determine which hospital is in network and has specialized neuro trauma care. Contact that hospital to see if they have recommendations for air medical companies they have worked with in the past then contact one of those to see what is possible. These transfers are VERY complex and need co-ordination between the sending hospital and the receiving hospital/ic . Expect to pay out of pocket for the flight. Expect your local hospital to verify with you USA insurance that they will cover costs for injury received in other country upon repatriation to USA. Sorry for your situation. To others reading, this is why you buy travel insurance.

personalfinance

SimsaRims

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My boyfriend hasn't filed taxes for the past 6 years

Title says it all. My boyfriend hasn't filed his taxes for the past 6 years. He's never been a high earner so I doubt he owes the IRS much if anything but I have no idea how to go about tackling this. Is this something we need a professional accountant for or can we handle it ourselves? We want to get him straightened out and back to filing every year but don't don't where to start.

If he's owed money, he can get it for the past 3 years, but if he's owed money from years before that, it's too late. First step would be to gather all his W-2s and other records related to income that is taxable, and figure out whether he owes or is owed. IRS has prior year tax forms and their instructions booklets available as pdfs at Although in certain circumstances a result from an earlier year is used on a later year's taxes, that's probably not the case for him. So you might suggest as a working method to go backwards year by year, from most recent to farthest back, just because it may be easier to assemble the information for more recent years than older ones. If his tax situation is simple (not many sources of income, withholding happened at workplace, few or no special deductions or tax credits), it should not take long to get a sense of the situation year by year. Then it's just a matter of filling out the pages, signing, and mailing them in. Next, you'll probably tell us "He doesn't have any of his W-2s" or "He has no idea how much he earned because he was paid cash." :-/

He should gather all of his w2s and contact a tax professional ASAP. Hopefully he just became overwhelmed and is not generally irresponsible like this. It is serious to not file or pay your taxes.

personalfinance

jeffers0n

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What would be included in the Reddit Hive Mind Fund? (Ticker Symbol: MLADY)

Post one company and we'll let r/investing vote on the funds we can include in creating MLADY

I'll offer symbol suggestions for the two versions of the fund: Bullish: FOMOX (Fear of Missing Out) Bearish/Inverse Bet on Reddit Index: OHNOX (As OHNO often follows FOMO) Ford seems to have attracted a considerable amount of the hive mind's attention after the Google rumor.

I'm a let you finish but $YOLO is the best ticker symbol of all time

investing

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Own a home free and clear in New York; need to buy in South Carolina

Like the title says, my wife and I already own our NYS home outright. I have a job offer in Charleston SC and we're looking to relocate the Hanahan/Summerville/North Charleston area. Down payment for a new mortgage would come from the sale of our NYS home ?unless we're able to use the equity in the home? This is the first time I've ever had to move out of state for a job. I need a little guidance in how to go about looking for a mortgage out of state while relocating for a new job in the same field I've been in for 20+ years. Thanks in advance for any advice

I would personally suggest planning on renting for 6 mo to a year in Charleston before you buy. That way there's no rush. You can really get to know the area to figure out what community you want to live in and you're not feeling pressured to find and buy the first house that comes your way. Just focus on selling your home and finding a decent short-term rental then when you get down to Charleston you can focus on buying your next place.

Assuming your house has appreciated less than $500k since you’ve lived there, you can sell and not have to pay capital gains taxes. What if you and your wife find a month to month place to rent down south in the area you’d like to buy in? That way you’re not worried about selling and buying at the same time and you’ll have more time to look for your next home.

RealEstate

Licensed_To_Kill

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Is being a stay at home Mom worth it when trying to get out of debt

I'm currently a stay at home Mom of a 9 month old baby. As much as I love staying home with a baby is it worth it when we're trying to get out of debt? We're wanting to start Financial Peace University, but it's really hard to get the first step done and save $1000. My husband is a plumber and brings home between $400 and $600 weekly. We barely scrape by and that's pinching pennies. We have currently about $40,000 of debt between student loans, car payments, and medical bills. I know if I worked full time we'd have to bring on daycare and another car payment because we only have one, plus extra insurance. Would the extra expenses be worth it to pay off debt faster or adding in more debt of a car and an two extra bills be counter-intuitive?

In your situation, it might be better to look into work-from-home jobs (transcription, etc.), they pay a lot less but there's no need for daycare and a second car, plus flexibility (work when the baby is asleep, etc.). It might be enough to cover the gaps, especially because daycare for infants is way more expensive.

Potential earnings - childcare costs - car payment - car insurance payment - gas = how much you could bring home. In many cases, unless you have specialized skills that will allow you to secure a job that pays enough to make this worth it, the math doesn't point to it being a practical move. HOWEVER, that doesn't mean that your choice is to do nothing. The internet is an infinite moneymaking opportunity. What skills or interests do you have? Photography? Crafting? Writing? Child development? You could make things and sell them (Etsy, eBay), write a blog or column, make videos and publish on Youtube, lots of things. [Here's a list of lesser-known legitimate ways to make money at home.]( Often these will take patience and hard work, but if you start now you could be in a much better position a year from now. I personally chose to start a youtube channel.

personalfinance

ashdardek

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My father is selling "shares" of his life insurance policy to his kids because the premium is going up and lost his job recently. Should I buy one?

**

Does he still need life insurance? You make it sounds like the kids are all independent adults. if he lives to 99, the worst I can do is double my investment That's not how investment return is calculated. You have to consider the annualized return.

The point of life insurance is to protect your income when you have dependents. That is the reason the pricing was structured like that. While your father was making money and had children at home it protected them if he dies early. But after he lost his job then financial dying early is not a problem. So if he could drop the policy use the $300/mo to live on.

personalfinance

Nexion21

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timetraveler3_14

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I'm 19, no credit, best place to buy first car?

Hey there. I'm 19, just started over in a new state and I've never bought anything as important as a car. I think I understand the process for getting the best deal on a new car from a dealership, but I also hear all about auctions and craigslist etc. Etc. What is the best way to go about getting a good first car, in the opinion of the personal finance gurus?

Best way to get a first car? Without any additional info the best way is to buy a car you can pay cash for and get inspected by a third-party garage for ~$100.

Car salesmen here. If you are wanting a new car then I would try a Honda dealership or a Chevy dealership. Print off a true car quote before you go. Most of the cars that banks wild lend on for you would be a civic or a cruze. Even a sonic. But don't go in wanting to get a $40,000 camero with no credit. Your rate will be high but it can get done if you have income of atleast $22,000. Ford has some value priced cars as well.

personalfinance

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Lets share our (pretty) graphs?

What graphs do you have in your spreadsheets and what stories do they tell? Looking for some inspiration.

Using throwaway. I'm not financially independent yet, but working on it. 24/M making $55K. [Credit score graph]( [ef, 401k, ira, student loans]( [income vs. expenses]( [net worth](

Late to the party, but here is [mine]( ! 28yo earning 86k. 2008-2010 was a time when I didn't properly track stuff or have any book keeping skills. I spent way too much time searching for some of the info needed to build this chart. A few things: 2009: Inheritance of some cash + an apartment (owned by my brother and I) 2010: use inheritance money to buy my own flat. Takes until 2012 to complete, so debt is accumulating while the flat has only a fraction of its final value. 2010 is also the year I stupidly bought a car. 2011-2012: Way overspending my income and destroying my savings. 2015: Inheritance again! March 2017 should see me cross the 300k mark!

financialindependence

ilovecollege_nope

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How to find a stock that's worth investing in?

Don't get me wrong, guys. I know how to determine whether to put my money into a stock or not. What I mean is that now I just go to Yahoo Business and check the indicators for each company I can find there and it takes so much time to actually find a company that's worth it. How do you guys save your time searching for stocks to invest in?

I wait for bad news to hit a company, then I look into the company to see if their core business is still good. Take JNJ for example, recent reports [[1]]( suggest that they've known about asbestos in their baby powder for a long time. I then look into the data behind the reports to see how much weight they have and the likelihood of it significantly impacting the company. Then, if I think the stock has been oversold and the underlying business is golden, I buy. This does not mean I endorse JNJ.

[Stockopedia]( the information on this site comes and at a cost but it's worth the cost. Their ranking systems, screens and data has done wonders for me picking stocks that I wouldn't normally look at.

StockMarket

Greg05

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Paying off debt

I have a mutual fund that basically serves as my emergency fund. I have at least 6 months of expenses in there. I'm wondering if it's a good or bad idea to take most of that out (leaving a little over a month's expenses) to pay off my credit card and some of my car payment? Obviously once the car is paid (in about a year if I do this) then I'd redirect all the money back to the fund. What do you all think?

It's good to have 6 months of expenses in an emergency fund It's generally not good to have your emergency fund in an investment vehicle; emergency funds ought to be liquid since they could be needed in an emergency Credit card debt is an emergency. It is particularly an emergency if it is not on a 0% interest card Without knowing your income/expenses and the particulars on the car loan, I don't feel comfortable giving exact advice on that. It may make more sense to keep emergency funds rather than pay it off

If you have good credit and a decent income, another option might be a balance transfer credit card. There are some offers out there that will let you transfer your balance to the new card for low or no fee, then give you a period of 0% interest to pay that balance off. See: If you go this route, DO NOT put any new purchases on the new card until you get the transferred balance paid off. Another option: Shop around with banks and credit unions to refinance the high-interest debt. Shop the CC debt and the auto loan separately. If you own a home, you can borrow against home equity and get a much lower rate than the credit card company. One thing you haven't told us is whether your mutual fund investment is in a roth or traditional IRA or in a taxable account. If it's in a traditional IRA, you could be facing bigtime taxes and penalties if you withdraw before age 59.5. If it's in a taxable fund, you could still face capital gains tax upon withdrawal, at either the short-term or long-term rate, depending on how long you have held it. Do the math before you make a decision.

personalfinance

strfyr3

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TroubleBrewing32

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In the early stages of looking for a house. But I have a few concerns...

Financial Status: $30K savings $9K car loan @ 2.9% 3 Credit Cards ~$15K total limit, 0 debt $74K salary (will be getting a 3-5% raise at the end of the year) ~700 credit score (Credit Karma) I'm looking to buy a house in the near future. I have no intention of putting 20% down, even though I will have to pay PMI. The types of houses I'm looking at are in the low $300Ks. I need to get out of my current living situation ASAP. My primary concern is I have a derogatory mark on my credit score from 6 years ago (charge off). I'm aware that after 7 years it should be removed, it's just bad timing in relation to my current living situation. Ever since that single event I have never missed a payment on anything. In addition to not missing payments, I paid off 100% of my ~$35K in college loans. According to Credit Karma, my credit score is just below 700. If I'm willing to accept the PMI (i know it's one of /r/personalfinance's circlejerks to always put down 20%), would anything I listed deter me from getting approved? What about home loan interest rates?

$74K salary and The types of houses I'm looking at are in the low $300Ks. This doesn't mix. You're looking at homes that are far too expensive for your income, especially with your lack of a healthy down payment, a 9k car loan, and a semi-decent emergency fund. The same advice that I give out to everyone applies to you here. Go no higher than 3X your annual income on a home purchase. For you, that would be 222k. It's in your best benefit to put 20% down to avoid PMI, which is literally throwing money away each month (to the tune of several hundred dollars). Some basic numbers for you. A 300k loan at 4.25%, with 3.5% down will result in a $1424 mortgage payment. PMI will be at least another $100-150, depending on how you're financed. Your taxes are a wildcard, but I would guess around $150/month. Your insurance will likely be $75/month. That puts your minimum housing costs at $1749-1799ish, again, all depending. On a 74k salary, you likely take home $4000-4300/month, depending on your deductions. That puts this payment at anywhere from .41% to .44% of your take home pay. That's FAR too high. It should be no higher than .33% on the top end. Based on your credit score, and your current DTI, I can't see you getting approved for a 300k+ loan regardless.

you do not say what area you are looking. many cites used to have incentives to first-time home-buyers. While most have closed these programs down, California still has a grant program that if you have an AGI of less than 100k and are buying a home under 300k, they will give you a grant of 15k for your downpayment.

personalfinance

house_hunting

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Blacksheep214

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Favourite Investing Book(s) Read in 2013 ?

What is your favourite book that you read in 2013? My personal favourites included Against the Gods Competition Demystified the dhandho investor The Most Important Thing

Here's a great list the posted in another thread: "Okay here it is: Essential Readings “The Outsiders” by William Thorndike “Margin of Safety” by Seth Klarman “The Intelligent Investor” by Benjamin Graham Value Investing Principles and Tools “Manual of Ideas” by John Mihaljevic “Essays of Warren Buffett – Lessons for Corporate America” by Lawrence Cunningham “Common Stocks and Uncommon Profits” by Phil Fisher “Security Analysis” by Benjamin Graham and David Dodd “The Sleuth Investor” by Avner Mandelman “You Can Be a Stock Market Genius” by Joel Greenblatt “The Aggressive Conservative Investor” by Marty Whitman For Your Interest Behavioral topics “Fooled by Randomness” by Nassim Taleb “The Most Important Thing – Uncommon Sense for the Thoughtful Investor” by Howard Marks “Irrational Exuberance” by Robert Shiller Biographies/ Relevant stories “Made in America” by Sam Walton “The Snowball – Warren Buffett and the Business of Life” by Alice Schroeder “Tap Dancing to Work” by Carol Loomis “Poor Charlie’s Almanack – The Wit and Wisdom of Charles T. Munger” by Peter Kaufman “Fooling Some People All of the Time” by David Einhorn “When Genius Failed” by Roger Lowenstein “The Big Short” by Michael Lewis Accounting “Quality of Earnings” by Thornton L. O'Glove “The Vest Pocket Guide to GAAP” by Steven Bragg “ Creative Cash Flow Reporting” by Charles Mulford and Eugene Comiskey"

I think "Master the Markets", by Tom Williams is a worthwhile read. Pay no attention to the software the author tries to push on you, though. The book does a good job of explaining volume-spread analysis. Should be freely available online as a pdf.

investing

Tannorp1

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hedgefundaspirations

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across32

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ce7rlul

Giving up free but poor lifestyle to live very comfortably?

My parents are very well off. $3M + family business, 3 buildings, a couple estate homes, stocks etc. My fiance worked for my dad for 3 years and had excelled in his position (moreso than my brothers) but we had a terrible falling out and we returned all handouts (help with apartment, car etc) and left completely to a new state. We have good jobs but with competition and living costs so high, we are just now making ends meet. We are enjoying living a faster paced life in the city, and the freedom of not asking for vacation just to be rejected by parents who instead of giving free time forced their grown children to take vacations with them. And we are very career focused, unlike my sibling. They are happy to glide along, no goals etc. My parents manipulated, controlled and sometimes even pitted my siblings against each other for the desired outcome. Most recently SO and I have each had a fair share of low blows by our employers. Scams, bounced checks, startup = no paid leave until 2 years later. I couldn't even take off 1 day for a family friend's funeral. Job hunting, moving, money troubles is slowly tearing down the ideal image I have of my life on my own. This has got me thinking -although I am grateful for the chance to live out my dream- city living, being completely invulnerable from parents' schemes/antics, we are thinking about starting a family and I can't help but miss what I had before. Have you or anyone you know given up freedom (low income, big/pricey city, no paid vacation/free time) - for a very comfortable, almost extravagant lifestyle (month long int'l travel, VIP stays, first class everything, shopping) given exclusively by controlling, manipulative, guilt-tripping parents? Are you glad you did it or do you regret? Even if you haven't what are your thoughts?

From among the two choices presented, I'd pursue choice C; none of the above. I've bailed twice on situations that were very lucrative, but just didn't suit me. Both times turned out very well in the end and I am very comfortably retired at age 63 at the moment. You may want to plan your bailout a bit before executing, but trust me, it can be done.

This would be better answered by /r/spirituality, these questions are really about relationships imho. I'd suggest offering to your parents to visit a family therapist together at their expense. It's really your only answer in my honest opinion. You can't keep living in poverty resenting your parents happily, and you can't live with your parents under their manipulation happily. (again, just my opinion)

FinancialPlanning

summer_summer00

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reg-o-matic

drhz619

DieEisKonig

drisp77

Should we refinance my wife's car? Terrible interest rate. 22 payments to go...

Hi all, I am wondering if I could get some advice on the best course of action to take here. My wife is current paying ~14% interest on her 2011 Hyundai Sonata (~11k KBB value) on a 5-year loan amounting to a pretty brutal payment of ~$420/mo. She has a pretty poor credit score and has been unable to refinance with the dealership (who she is financed through currently). She has not missed, or been late on a payment on the vehicle in over 2 years. There are 22/60 payments left to go. What I am wondering is - does it make sense to refinance the loan? This is a pretty high interest rate, and I'm pretty confident that, now that we are married (I have a good credit score), we could look into this... and if so, is it best to go through a bank? A credit union? I am pretty financially illiterate so I just thought I'd get you guys' opinions. Thanks!

If you have 22 payments left at $420, then you will pay out a total of 9240. Even if they cut your interest rate in half, you would save ~$600. Add in loan origination fees etc and you are only saving a couple hundred bucks over 2 years or ~$10 a month. That's a lot of work for $10 a month. You would save more if you can scratch together some extra cash and pay it off early with minimal hassle.

Try penfed, it's a credit Union Bank we did good with. But a car is only worth the trade in whole sale price to a bank. A dealership can mark up your interest rate from a bank up to 3 points on average based on the state (so1 point equals 1 percent), so her credit might not be as bad as they say. It should be better making those perfect payments. Good luck!

personalfinance

bullex

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DallyLlama1

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cmsyqjz

Poopanddoodle

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cmsxoee

Is this scam?

I’m trying to get a job online as virtual assistant on Upwork. Is this scam? I don’t know what he means by this: (Person said:) Alright, All you have to do is have it printed out, Trim it with scissors to check size and place it on a smooth or dark surface okay? As soon as the deposit has been confirmed you are to forward the confirmation email to me for record purpose okay? What does he mean by this? Do you think it’s a scam because to me I don’t know what he is asking, I’m very confused. Thanks

You are being asked to deposit a FAKE CHECK. Your bank will release some of the funds to you. THIS DOES NOT MEAN THE CHECK HAS CLEARED. Your new “employer” will ask you to do something with the fake funds. This is the scam. Wherever/whatever you do with the money at their request, you are losing that money forever, because ... THE FIRST CHECK WAS FAKE AND WILL BOUNCE A FEW DAYS LATER. Additionally, your bank may freeze your account. If you already deposited it, call your bank NOW and explain you were scammed. If you didn’t, block the person, report to Upwork, and move on. Keep in mind that if it seems too good to be true, especially with “online jobs”, it probably is. TLDR scam.

Why on earth would someone send a check to a stranger, aka virtual assistant, to deposit using a mobile app? Why would someone have this assistant deposit checks into the assistant's personal bank account? This does not make sense. Legitimate businesses have their own bank accounts in which to deposit checks.

personalfinance

SeriousGift

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foooofly

ecp1ln5

allthedifference

ecpxr8i

Dad died living off of disability leaving my mom alone and poor

My father died yesterday and my family is not sure how to handle the expenses. He was only 44 and it was unexpected. He was unemployed and living off of disability for about 10 years. My mom is also unemployed and I believe living off of disability. Neither of my parents have checking accounts, so obviously no savings either. Last night the police would not leave until my mother found a funeral home to come take the body. She did not tell me how much this cost, and I have no idea how she is paying for it. We don’t plan on a funeral because my parents have no friends or loved ones beside me and my sibling who have not spoken to them in about 2 years. With no job I have no idea how my mother is going to continue to pay her bills or live at all. Are there any resources for her to help cover cremation costs, or just to go to seek help as to what to do next? She is renting a house now, but I am positive she will need to get an apartment but she has two huge dogs. When I tried to ask her what to do next she is just too overwhelmed to even begin to know what to do. I currently work for a nonprofit and actually started a new job today. I have less than $1000 saved. My only sibling is unemployed. Sorry for rambling. I also apologize for weird formatting as this is only my second post. TL;DR my parents are very poor and live off of disability with no assets. My dad died last night, leaving my mother alone. What are her options financially?

Legit funeral homes will offer a very inexpensive option (direct cremation) and they will not hound you for payment. They make their money off of people like me, whose wife wanted all the trimmings, i.e. a $10K funeral. Even then, I didn't get a bill, nor pay a dime, until two months after it was all said and done.

I'm sorry for your sudden loss. Another user mentioned direct cremation. Ask A Mortician did a useful vlog about how to go about arranging one, and what you can expect to pay for it. It's probably the most economical option.

personalfinance

Rando_Calrissian54

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lucky_ducker

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saphirayne

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Obamacare affecting anyone's personal finances? How are you handling it?

Our small group plan is being cancelled so now I'm entering the lovely world of shopping for a new plan as my work's HR coordinator. Was wondering how others are thinking about things... (And, just to keep things geared to PF and not politics, can replies focus on your own experience rather than opinion of the whole law? It could get rather heated...)

My rates have dropped from $486/mo to $127/mo, with no loss in quality. My dental has increased from $14/mo to $16/mo, with an increase in benefits, that is, they now cover root canals, stuff like that. I don't have my vision information in front of me, sorry. I'll edit with that information when I find it.

I'm able to stay on my parent's health insurance for 3 more years and got to stay on it even though I got married. And my birth control doesn't need a copay anymore, so instead of paying $15 a month, I pay $0 a month. And I probably would've paid about $100 or so a month if I was completely kicked off my parent's insurance (whoo nuvaring) so it's working out pretty well for me so far.

personalfinance

gailosaurus

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Goku_Mizuno

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cdf3yzq

invaderpixel

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cdf8zey

Married couple combining finances

My husband is a UK citizen while I'm in the US, so we've not yet joined our finances. Now we're looking at this summer as our goal to be living together and it's time to start thinking about how to combine households. Any suggestions for how to go about this would be appreciated. In general we don't want to have "his and hers" money. There will be a period after he moves when he's unemployed/looking for work, but going forward we'll be sharing expenses equally. I'm not sure if we should maintain separate checking and savings accounts while adding a joint account(s), or combine either or both of the existing. What has worked well for you?

What has worked well for you? It's very simple. All income goes into the same checking account. All bills and other purchases come from that very same checking account. If either of us want to make a personal purchase, which is rare, go ahead and do it. No need to consult the other unless the purchase is somewhere north of $20.

I like having a 'his', 'hers', and 'ours' system. You decide what percentage or flat amount goes into each account as a couple. I like having household expenses be a unit expenditure, we know what our goals are and work as a team to get there. But I love having the ability to save and splurge as I see fit on my individual money. I have been on the lookout for a cute, comfortable, and high quality boot for months. I'd started eyeing a $200 pair longingly, but just couldn't spend that much on shoes. Then they went on sale for $120, and I bought those puppies without a second of remorse. God I love them! They are everything I wanted and more. I would never have felt comfortable buying something like that with joint money. On the flip side my SO has a motorcycle in addition to his car, he spends money maintaining and fine tuning it. He enjoys tinkering around, so it's part of the hobby to fix it, ride it, and turn things up a notch. He spends several hundred dollars on it a year, and gets a lot of enjoyment out of it. I'm happy he's happy. If it were joint money I'd probably be less happy about the expenditure.

personalfinance

runnerandfloss

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DiggingNoMore

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not_safe_for_you

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ceukajf

Got back from vacation, wtf happened to oil?

I went on vacation for a month, I swear oil was at $50 per barrel if not close. So wtf happened now to drop it so low?

People are panicking about gasoline inventories. It means the price drop is justified, but much more short term because gasoline inventories are nowhere near the size of oil inventories. If you read the IEA reports supply and demand of oil is effectively in balance. We should be in a sizeable deficit sometime between now and 2017. The interesting thing is that short term price movements make no difference in oil production today - in other words this price shift is a good time to buy because there's a significant price movement on a short term concern when the price move's only impact will be on long term supply.

It's called the law of supply and demand... Oil companies are coming back online that sealed their pumping price of 50$ a barrel which is causing future prices to drop. I will once again drive this point in every oil thread I post in the problem is ultimately demand. If demand isn't sufficient at growing you can kiss the whole pricing system goodbye.

investing

whatyoulookinatbud

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Working_onit

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CommanderMoney

d5uhhob

Thoughts on financial aid being used for student housing?

I was reading "struggling and thinking about being homeless" thread and debating commenting, but I was having a difficult time not being rude so I was trying to figure out exactly where my reaction was coming from. I realized that, as someone who chose to live with a parent through college specifically to make a financially responsible decision (the living situation itself was really not ideal), I have a difficult time feeling supportive of towards those struggling to pay for their housing with financial aid. To me it seems like this situation is USUALLY* a lifestyle choice rather than an educational necessity, and I get frustrated by the idea of financial aid going towards something that (seems to me) like an irresponsible life decision. What are PF's thoughts on this? This post could probably also be generalized more broadly into, "Are there monetary life decisions that other people make which you feel personally upset by, or are you able to view things more objectively?" *exceptions made if an appropriate university is not available within commuting distance, or if parents are unwilling/unable to continue housing.

My daughter considered a school that is a 30-40 minute drive, and obviously she could have commuted but I would have encouraged her to live on campus if she'd gone there, even if she had to use some financial aid to do so. There are valuable life skills and networking connections made while living on campus. If you commute, it's easy to get into the habit of treating college like high school or like a job. You drive in, go to class, drive home, hole up in your room & do homework, and you don't take time to get involved with the campus or your fellow students. You graduate with a degree, but no experience and no network, and you struggle to find a job. College isn't always just about the classroom. I know that some students will still make it a point to network and get involved living off campus, but I also know my daughter. If you give her the ability to retreat into her own personal bubble and just focus on academics, she will do just that, so anything that makes it more likely for her to be forced to deal with people is a good thing. My daughter is planning on going into engineering (she's going away to college this fall at a school 2 hours away), so a reasonable amount of debt is acceptable in my opinion. I wouldn't let her take out anything beyond federal loans (she'll have $5,500 in fed sub/unsub loans her first year), but with co-ops, internships, and me helping pay down the loans she does take while she's in school, she should end up graduating with a STEM degree and small enough student loans that she isn't a slave to them. Her working, and having the loans, while I pay the rest, means she's equally as invested in her education as I am. Also, as someone who was once so poor & financially dumb that I intentionally wrote a bad check to the grocery store just to have some food (this is while also having three pay-day loans in weekly rotation), I try pretty hard not to judge other people's financial choices. Life isn't black & white and there are a myriad of factors that play into financial decisions and can result in some pretty crappy situations. Everyone does stupid things, acts impulsively, and makes missteps. If you're lucky, and financially stable, those missteps might be a small hiccup. If you're already living on the edge of your finances, one misstep can be the start of a painful spiral into pay-day loans, bad checks, and lawsuits. Very few people enjoy being in a bad place financially, so I'm not sure it's ever appropriate to be rude or slam people for previous decisions without offering them positive ideas going forward. I do understand tough-love and pointing out exactly where someone went wrong in an effort to then show them how to climb out of the hole, but offering judgment without encouragement should be unacceptable. The past is done, and you can rest assured that most people posting here for financial help are aware of the stupid shit they've done and the stupid situations they've gotten themselves into.

Financial aid shouldn't be used for living costs. I've seen so many college kids "live it up" on fianncial aid, then bitch nonstop about having to repay all these student loans. Worse, I've seen people live it up, then not repay the student loans because they figure "well my job isnt paying enough, screw it." Guess who gets stuck with the bill,...hardworking taxpayers. If students want to live on their own, their parents should front the cash or they should take out a non-government guaranteed loan.

personalfinance

littiefirefly

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Moneygrowsontrees

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ch38enm

WeAreAllSheep

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ch3aa1s

My wife and I have separate insurance, and I want to use my HSA funds to pay for her bills.

I don’t foresee needing my HSA dollars in the near future for myself, and I’ll be getting on her insurance next year anyway. We have bills to pay for her right now, and I don’t want my HSA funds to go to waste. Am I allowed to use them for her expenses?

Are you sure you're talking about an HSA account? I ask because you said "I don’t want my HSA funds to go to waste" which makes me think you're talking about an FSA. HSA funds never expire or go away. Anyway, yes, you can use the HSA funds for your spouse. Your limit depends on your wife's current insurance type, but [here]( is a good pdf that should clear that up.

Yep, shouldn't be a problem. You are subject to individual contribution limits, but as long as the expense is on the list of allowed expenses, the IRS doesn't care whether it is you or your wife who incurred the expense.

personalfinance

Pikesmakker

t3_741esh

The_Last_Unicorn_

dnur39w

cjw_5110

dnur6da

How do I setup a payment plan for taxes?

So I'm fucked, I owe $3k in taxes this year. God knows how, I'm broke AF. Who do I contact to setup a payment plan?

No matter what, file that return on time, and pay anything on or before April 15. Assuming your return is complete and correct, you will receive [the first notice demanding full payment]( in mid-May. This notice will show any payment you made, the unpaid tax, and the initial assessments of the Failure to Pay (FTP) penalty and interest. The FTP is generally 0.5% of the unpaid tax, charged per month or part of a month. The IRS interest rate is currently 6% per year, compounded daily on the unpaid tax and penalties. The rate can be increased or decreased on a quarterly basis. If you are able to full pay this by the notice due date, you are done. If you can't, you need a payment plan. If you think you could pay in 120 days or fewer, you want a Full Payment Agreement. This begins the day you make the request by phone, face-to-face, or [using Online Payment Agreement]( (OPA). During the 120 days, the FTP and interest accrue, but you aren't obliged to make a fixed monthly payment. Send as much as you can as often as you can, one payment or twenty payments. If you need five months or more, you want a formal Installment Agreement (IA). With this plan, you agree to a fixed monthly payment and a regular due date each month (1st - 28th). The general rule for a minimum payment is (amount due on 1st notice / 72), so roughly $45.00. Once an IA is established, the FTP rate is reduced to 0.25% of the unpaid tax per month. You can request the IA by phone, face-to-face, using OPA, or by sending [IRS Form 9465]( with your federal return (electronically or by mail), or just mailing the form. You can request to have the monthly payments automatically debited from your checking account using OPA or Form 9465. This is a Direct Debit Installment Agreement (DDIA). Every Installment Agreement has a one-time user fee. This fee can range from $31 to $225, depending on the terms and conditions. Generally, using OPA to establish the DDIA will result in the lowest possible fee. If the IA defaults for any reason (missed or late payment, payment for less than the minimum, a new balance due on a future return) the Services charges another user fee to reinstate the IA, from $43 to $89, again depending on the terms and conditions of the original agreement. Most IRS payment plans require filing compliance. IRS will review your account to be sure all required returns are filed for, in most cases, tax years 2013 through 2018. If you choose to establish a payment plan using [Online Payment Agreement]( I encourage you to wait until you receive the first balance due notice. The general IRS customer service line is toll-free at 1-800-829-1040 M - F 7am - 7pm local time. You can request face-to-face help by calling IRS at 1-844-545-5640 M - F 7am - 7pm local time to make an appointment at your local Taxpayer Assistance Center.

Be aware, that due to the government shutdown, and with the new tax season added to it, the IRS is still way behind in processing payments and payment agreements, as well as all their paperwork in general. My wife and I are clearing up a mess with them right now, as their system sent notices saying take no action, then sent notices that they are punishing us for taking no action, etc. It is really overwhelmed, and it looks like one department is not communicating with another well at all. Best to call, and arrange to get it set up yourself, as they will charge double if they do it. Just call first so they can get it in the system that you are doing it yourself, their system will assume you aren't doing anything otherwise, and the interest and fees will start racking up. After months of the back and forth nonsense, a couple phone calls got it straightened up and done with. The IRS agent on the phone with my wife told us what was going on, and to do this rather than the normal filing, so it's straight from the horses mouth. I would add that the IRS is not hard to deal with when it is obvious that you are being honest and trying to get them paid. Edit to add: Expect to be on hold for a long time, at least an hour, and it may take several calls to get to an agent. With the system so backlogged and throwing errors in the works like we went through, too, their call center is pretty overwhelmed too.

personalfinance

i0datamonster

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these-things-happen

ejrn1nx

Faelwolf

ejru0ky

I'm 33 and just paid off my mortgage. Now what?

My wife and I have been running a small business for the past 8 years and it's gone quite well... better than we had ever expected. We live pretty modestly and I think we've done a decent job of being responsible with our money. I'm 33 and she's 30. This week we finished paying off our mortgage. We did it in just 5 years, which I'm super proud of. It saved us at least $150k in interest! So, we're officially out of debt and we're maxing out what we're allowed to contribute to our retirement ($12.5k/year per person into our Simple IRA). Assuming that business continues to do well, we'll have some free cash since we won't have a monthly payment and won't be making extra payments towards our mortgage each year. We're trying to consider what to do over the next few years as the money accrues. We've thought about buying an investment property, but I don't know if I want the hassle. I'd love to hear any advice, ideas, suggestions. Thanks!

That's awesome. Good having some users here who do inspiring things. The only suggestion I have(can't even call it advice because I can't give someone in your place advice) is that you make sure you are protected.

Same boat here. Probably use savings now to build high interest and sizeable stash and wait until another big drop in stocks (32billion drop this week) and invest them for an immediate rebound gain. Repeat every so often as savings get big enough each time. Or second property that's more suited to just wife & I and rent this one. Might be hard to sell this one once the rent $ starts coming in (instead of paying it out).

personalfinance

bucklenut14

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jpop23mn

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DonutChucka

czpu7dw

$NVIDIA, why no hitting the roof after TESLA announcement?

TESLA announced they will be using the Drive PX2 platform which NVIDIA sells at the moment for 15.000$ in all their cars. They expect to sell around 200.000 cars in 2017. This is around 3 billion revenue for NVIDIA (This is 1/2 of the 2016 NVIDIA's revenue)... whereas... the stock barely moved today...

the stock barely moved today... 1-) NVIDIA isn't a low cap biotech company, so it takes a lot to move it. 2-) Sometimes institutional investors use good news to sell, so this might have happened. "Good news = stock will skyrocket right away" might not be a good strategy. It doesn't matter how much I buy, if the guy holding $50M worth of stock starts selling, I'm screwed. In this scenario, I might have waited more depending on the scenario. 3-) $15.000 looks like its retail (advertised?) price, Tesla probably will pay much more lower than that since they'll order 200.000 of them.

They should make lots of money on it, but uhh uncertainty. This isn't a buyout of Nvidia in which case they would do so at a premium and that stock will climb to it real fast. When TSLA and NVDA get a contract, that's money gained, and the stock will move on that. You are taking their expected numbers and applying their expected purchase price. You aren't even considering any delays TSLA could have, or the mass purchasing discount they would be entitled too. Gotta ask other questions like: Will TSLA survive to purchase these? Will NVDA will still be the best option come time to get these AI car modules?

stocks

Spoite

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laraveling

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ghostabdi

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UPDATE: Have you taken a job at a startup? How did it work out for you?

Original thread - Got a lot of great advice from a lot of people, and wanted to say a big thank-you to the community. It's been a wild mix of emotions over the last month and a bit, and I thought my experience would provide some help to others going through a similar, tricky time. 1) Right after the thread was posted, I attempted to negotiate a $20k increase in salary. I was offered an extra $10k and took that job. I was happy to take on the opportunity, even if the money wasn't exactly what I was after. It did feel like a bit of a sideways step, but an appropriate one. I let my current company know, and handed in my notice. They were disappointed, but made no attempt to keep me. 2) Everything has been smooth sailing up until a week ago. I was asked to meet with a mutual contact, also running a startup, that was looking for some tips on hiring someone with a similar skill set to mine. We got along very well, and I decided to pursue to the opportunity. 3) Today I received a final offer, just before I was due to start with the company I'd already accepted an offer from. The offer was an extra $20k (and $30k over the job I'm leaving), a bigger title, as well as equity, and just about everything the other company could offer. I contacted the other startup, very apologetically and let them know this was best thing to do for me in my career, and for my family. 4) Between this thread and the OP, we've managed to hit a 55% and 65% savings rate. An extra $1300 a month will do wonders for increasing that further, in our pursuit to FI. It was tricky letting the other guys know that I'm out just before due start, but I feel confident and comfortable with my decision. Sometimes you need to rip the bandaid off, and trust your gut. Time will tell whether it's the right decision! Thanks again all!

I joined a startup in 1985 at age 36 for almost no raise (it was just 3 of us to start). I was single with money in the bank and tired of both big companies and contract work. Job lasted close to 10 years until a liquidity event that made me FI. Enjoying the work was the most important factor to me since any big payout was clearly distant and not guaranteed.

I have been with a startup for about a year and a half now. We are just getting to where I can be a real employee and not contract. I have a lot more time at home and a very flexible schedule. Monetarily, I could probably make more somewhere else but I wouldn’t have the freedom. However the direction we are going and forecast I have made tells me I can plan on receiving an excellent pay raise within he next 6-8 months.

financialindependence

panache123

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Ckjorstadhris

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How to sell a home where no one is buying(MN)

So I relocated out of state for a job and put the house on the market back in October. It's still there. We have dropped the price relatively consistently with it, plenty of showings, not even one lowball offer. Has to be the price right? Well having my realtor report to me about houses +-50k in my price range and their hasn't been a sale in a month in our range. Houses below say 300k selling like hotcakes, anything above is dead and has been since October. Comps are competitive within what else is on the market. Other realtors also not having any bites. House is all redone to the current H&G standard (grays, blues, whites) and we have nothing but good reviews after showings but always seem to be the "2nd choice" for a handful of buyers that were deciding. Being away from the family for 8 months has been brutal but we don't want to give away the home. Winter was especially brutal so the market we figured would be slow/dead and we are just outside the TC area but access to light rail within 5 min. What do you do when no one is buying? We thought about renting, but that has its pros/cons. Wait more? Edit1 - MLS # available on request, will send via PM. Pics are finally on Zillow!

Just sold a house in the Twin Cities, people are definitely buying. We had 6 offers the first day it was on the market. You're right about the price point though, it's definitely more focused on the sub $400K range. We do have friends who sold a $600K house recently and while it took 2 weeks they still had a ton of showings and sold for 95% of asking. Would you be able to post a link? I'm guessing the biggest thing working against you is time on the market. In my experience in MN the market is just completely dead until Superbowl weekend in February. Going on the market in October when kids have just started back at school and winter is coming is problematic. But maybe it's a marketing issue.

I live in St. Paul, and I saw that there are drawbacks to owning a house, such as you having to pay extra for trash, (at least from what I heard?) &x200B What city you live in? I heard property taxes are highest in Minneapolis. &x200B I thought about buying a house, but with maintenance, mortgage and property taxes, along with utilities, I don't think it would be a safe option for me.

RealEstate

MrTrifectaWins

t3_bokqg7

LBluth21

enhfa3t

punkrockfishboy

enjcu82

Downside to being flagged a pattern day trader as long as you have the min acct balance?

For any PDTs here, that’s basically the question: is the downside purely in the requirement to hold 25k min in your brokerage account (on trading days, as I understand it), or are there other issues like tax implications or something? My searching so far has indicated that it’s just holding the minimum, but one article mentioned things can change if you trade so much that you’re classified as a “trader”, like it’s your main “employment.” Also I probably wouldn’t be day trading all the time, just these wild swings with TSLA and SPCE have allowed me to gamble on intraday changes in direction a few times. I don’t plan on doing that every day or long term, and I have a full time job.

No downside as long as you have the required $25k. One big upside I saw from my non-Robinhood broker is that they allowed you to borrow 4x your account balance for day trading, 2x your balance otherwise on margin.

It's been awhile since I got PDT flagged and then later had the status removed, but IIRC, the biggest issue I had was when holding a trade overnight and then selling the next day. The sales count against your PDT balance for that second day. This makes more of an impact if you're going from multiple trades per day and then trying to get into something like swing trading where you might hold a position for a few days and then sell to open new positions. Also if you tend to run big trades or lots of small trades up to the full value of your account, you wont have enough PDT balance after selling your overnight positions to buy more that same day.

options

rms313

t3_f6fyfh

CrimsonMarshal

fi4o6rp

DoubleWolf

fi5bjla

Just got married. Trying to combine finances. How does this plan sound?

We have our joint checking, a joint checking that reoccurring bills get taken out of and then we have a joint savings. We bring home about $5800 a month. $1200 a month goes to joint checking for bills. This will cover mortgage, utilities, loans, insurance, taxes... $2000 goes to savings. $1000 ($500 each) goes to personal accounts. We can use this to buy whatever without asking the other person. $1000 will go to our joint credit card. This card will be use to pay for fuel, groceries, dinners, household supplies, joint expenses. This will leave about $600 a month in the checking account. This is for vacations, new tires, unplanned expenses or whatever we want to spend it on..... Maybe even put it in savings at the end of the year. Any suggestions or advice?

$1,200 a month for bills would be amazingly small. Just curious if that number could be correct. Are you estimating in some way, or is your actual expenses you are incurring now?

$500/month each sounds high to me. However my wife & I are rather frugal. We keep everything combined but we get an "allowance" each week for $50 for our personal budget. However birthday's/christmas etc we get so much $$ for presents. This works for us but other people think its crazy

personalfinance

UncleFupa

t3_7ggvyf

rdonn27

dqizzv5

fuzzywuzzypete

dqjm907

Anyone invested in or owns a FedEx Deliver Route business???

I am interested in buying an established FedEx delivery business and running it myself, based in the US - west coast. I understand there are different segments (home, business, long-haul, etc), very interested to hear all the perspectives. Please share any general/detailed experiences in owning such a business and how tough it is to deal with FedEx, employees,etc? Any big surprises that you could not have anticipated before you got into the business and started dealing with it? The ROI (30% to 40%) is really good if you run the business yourself. You are pretty much "guaranteed" to have business via FedEx, so you don't have to sweat if you will have customers or decent margins as you are working with an established brand. Please share your your thoughts / experiences. Thanks.

I drove for an owner in ground. You have to expect the worse. A company has a huge delivery and you can't fit it in the truck, too bad. truck breaks down, too bad. Driver quit or is sick, too bad. You are 100% responsible. If you do this, you should probably work first to see if it's something you want to do. Make friends with other divers and help each other out. It's tough but can be very profitable.

corporation have profits down to a science. they don't give easy money away but rather outsource the least profitable parts of their business. i'd be very wary. you're def not going to get rich breaking ur back trying to collect the cookie crumbs a big corporation left behind on the table.

investing

serge3

t3_2mtaov

Diesel-66

t1_cm7gwkj

cm7gwkj

ferapy

t1_cm7jnvq

cm7jnvq

2008 car, got into an accident, do I fix the car or keep the money?

I have a 2008 Lexus ES350 with about 72,000 miles on it. I'm the 3rd owner of the car, and I only drive like 12 miles a day, back and forth to the park-n-ride, hence the low mileage. The car runs perfectly, has newer tires, and is overall a great car. It is, however, in what KBB calls "fair" shape. 3 of the 4 corners of the car have dents or scrapes, and there is scraped paint in several places. It's a 10 year old car, and looks it. But it's still a really good car. A few weeks ago, I got into an accident that was 100% not my fault. I was driving through a parking lot at like 10mph when another driver took a right durn directly into me, hitting my back passenger side wheel well with the front of their car. Both insurance companies blamed the other driver, and my deductible was waived. The dent is noticeable, but honestly, it's not the worst dent on the car. The insurance companies sided in my favor, determined the cost of repair to be $1200, and asked a simple question: "Do you want $1200, or shall I arrange the repairs for you?" I was unaware those were options. From what I can tell, I have three choices: 1. Have them arrange to fix the dent caused by the accident 2. Keep the money 3. Take the money, and fix one of my larger dents According to KBB, I don't think fixing this dent is going to lift the value of the car by $1,200, and the car drives perfectly. Given those options, what would you suggest?

Seems like keeping the money is the best idea. I don't think fixing a dent that isn't even the biggest dent makes sense, and if you're already comfortable driving around with a couple dents, you may as well put the money in a fund for your next vehicle.

A 2008 Lexus ES350 with 72K miles on it has a lot of life left. If you are only worried about using the car for transportation, take the cash. If you want to keep the car for transportation and not be totally embarassed by how ugly it is, have them fix it. If you plan to have a larger dent fixed, be prepared to throw some additional cash in to cover the cost. Also, be aware of anything that might cause you to fail a safey inspection, if your states has such a thing.

personalfinance

CitgoSign

t3_689gax

finanshalom

dgwpd44

petedacook

dgx62la

Thinking of opening a money market account as my "emergency funds". Is it worth it?

I have a bad habit of succombing to temptation. I like the idea that with MM accounts, there is a max number of withdrawls you can make in a specific block of time. I am only going to use this money if my car blows up or something awful happens. Is it worth it to do this? Thanks.

My recommendation would be to open an online savings account. From what I have seen they have higher interest rates than money market accounts. Since you are susceptible to temptation, an online savings account will work for you because while the money is liquid, it is not as easily accessible.

Let's say you use Ally bank. Their money market account gives you checks and a debit card. Their savings account doesn't and also has slightly higher interest (although .85% vs 1% is barely anything) so something like that might be better suited to your needs.

personalfinance

IAmTheBeefCake

t3_4fpicp

minimalistgamer

d2aw2z1

mail323

d2b7mui

The Dividend Aristocrats In 1992 - Where Are They Now?

There are some errors in the spreadsheet: Dover, Emerson Electric, Genuine Parts, and Stanley Black & Decker are also still aristocrats, and although Philip Morris (now Altria and a bunch of spinoffs) is not technically an aristocrat, its family of companies (MO, PM, MDLZ, KHC) has never collectively cut its dividend. But more importantly, the author does not include the performance of the 1992 aristocrats had you just bought them and never did anything else. Just eyeballing the list, I'm fairly certain it would've done quite well. The market's return over time comes almost entirely from a small set of superstar stocks, and this list contains many of them. You don't need all, or even most, of your stocks to do well to get a good result.

Clearly you can't just dump your cash in and forget about it. You have to keep an eye on free cash flow, in particular, if you're hoping to keep getting that juicy dividend.

investing

contezpablinos

t3_8k7d8s

quaxch

dz5ivti

commentfreely

dz5l152

Most people on financial message boards say they will wait until they are 70 to collect Social Security

I am fascinated by the discussion about the best age to collect Social Security- if you are retired- found on various financial messages boards. Regardless of the Internet site most people say they will wait until they are 70 years old before collecting so they can get a bigger check. Funny thing is most studies say only about 3&37; of people will actually wait until they are 70 to collect Social Security Benefits. Are the wait until 70 crowd on message boards a group of Walter Mitty's wanting everyone to know they are financial geniuses who will live to 100 years old and have so much money saved that SS is just an after thought? Or fools that don't understand that they are losing in the end because they miss 8 years of checks and have to take money out of investments to cover expenses and have less money to invest because of these withdrawals, while they wait for their first check at 70 and likely die before they break even?

People also claim they will start dieting and start exercising at much higher rates than they actually do. Gym membership spikes in early January and attendance is back to normal only a few weeks later. That's the human nature part of it. Or fools that don't understand that they are losing in the end because they miss 8 years of checks and have to take money out of investments to cover expenses while they wait for their first check at 70 and likely die before they break even? This analysis is also flawed. If you need the money, take the money from SS, but "break even" is NOT the goal. The goal (for me) is longevity insurance. I want to have enough money no matter how long I live. All those cases of early death where I miss out on SS I could have had are of no importance to me, since I will be dead. I only care about the outcomes where I live a long time and might need the money. Money to the heirs is a nice bonus but not a driving force in financial decisions. Likewise spending as much as possible is NOT a goal. I want to make sure I have enough to live a comfortable lifestyle I enjoy and be secure that I will be able to continue it even after I FIRE no matter how long I live.

Longest lived male in my entire family tree did not celebrate 80th birthday - f--k that waiting until 70 crap. Claiming at 62 unless fate somehow for some awful reason finds me actively at work then.

financialindependence

KillingTime56

t3_8rzpzp

hyperotrophy

e0vdypl

zackenrollertaway

e0w14ev

I really want to make a stupid purchase. What is your thought process when you want to live outside your means?

I'm about to get a promotion that will add about $1000 a month to my paycheck. I really want to waste it on a Tesla Model-S. (car payment of about $780 for seven years) I'd still be on track to retire on time. I have no debt. I'm barely making $100k a year. I don't think I can justify an $80,000 car. Could you?

Nope. probably not. If you could pay cash for it - maybe - but it's still a bad move on paper to put that much of your income into something that will go down in value. especially if you have to finance it for 7 years. also your math is a bit fuzzy. $780 x 84 = $65520 $80K @4.9% apr 84 month = $1126 / a month and you will repay ~$95,000 principal and interest unless you make a down payment. Also factor in the battery replacements. perhaps that's a wash against gasoline (or better for you) don't know - but those batteries don't last forever.

I'm not sure I could justify a Tesla Model-S even if I was making $10M/yr. There are much better performance/price options if you want a sporty car, regardless of whether or not you can afford the $80k price tag. Which as other posters have pointed out, is probably a bad idea.

personalfinance

rangerjello

t3_1l2iyr

jdoe74

t1_cbv4v3w

cbv4v3w

ANGR1ST

t1_cbv6fiy

cbv6fiy

What should a 22 y.o.'s financial portfolio look like?

Hi PF, nice to meet you. I just graduated with my Masters and got my first job with a salary of $67k, expecting it to rise to about $80k within a year or so. I am making way more money than I need for my current lifestyle, but I look forward to having a more extravagant lifestyle after 6-8 more years. I'm currently putting 10% of my income into my company's Roth 401k, and planning to invest in rental real estate. My question is, what other financial instruments should I be using? I have been considering indexed universal life insurance as well as a Roth IRA. Thank you!

lets see when i was 22, i had a pretty diverse portofolio. Granted i was making WAY less, but these can be increased proportionately: $22.55 money in coat pockets. $5.07 money in couch $95 invested in 3 types of weed $88 in checking account $1025 in text books, street value $12 $45 worth empty cans and bottles As you can see i was a pretty savy student. I would try to enter the can and bottle market ASAP, but get out soon as the bubble is slated to burst when fellow students clean out their domiciles before leaving for xmas break.

Congrats on getting to your position! I'm 25, and was in the exact same boat 2 years ago. I took the route of paying off 100% of student loans instead of investing anything to make it end sooner. But now that that's done, I'm taking the pretty standard approach that most people here would recommend: 15% of gross income to savings (If income is 100k, 15k should go into savings. I just add up whatever pre-tax and post-tax contributions I make to get to 15% of pre-tax income). Of that 15%, first max out whatever 401k match your company will provide, then max out Roth IRA, then fill out your 401k with whatever is left to get you to 15% 6-9 month emergency fund. Some people do CD ladders, others straight savings accounts, but I use a bond-based account in [Betterment]( Set some savings goals! Again, I use Betterment for this, and have a car goal so that I can buy a nice, but used car with cash Optional: start a business. The best way to achieve your financial goals is to have more than income stream. I try to save about 40-50% of my total income. This helps mitigate the lifestyle inflation people here have mentioned. Be proud of yourself that you're this dedicated to financial responsibility. If you want a referral link to Betterment (you get $25, I get $10), PM me.

personalfinance

throwawaymybut

t3_1rpwyj

RandyPandy

t1_cdppxfz

cdppxfz

pineapplepaul

t1_cdpyzqd

cdpyzqd

Moronic Monday: Ask that question you always wanted to ask about investing or the stock market!

Welcome to the first full trading week of 2014! On Moronic Monday's we encourage all our visitors to ask those investing related questions they were always too afraid to ask. The members of r/investing are here to answer and educate! NOTE: If your question is: "I have $10,000, what do I do?" There is no single answer to this question, but we will also need A LOT MORE information if we are to give some sort of answer: How old are you? Are you employed/making income? How much? What are your objectives with this money? (buy a house? Retirement savings?) What is your risk tolerance? (Do you mind risking it at blackjack or do you need to know its 100% safe?) What are you current holdings? (Do you already have exposure to specific funds and sectors?) Any other assets? House paid off? Cars? Expensive girlfriend? (not really an asset) What is your time horizon? Do you need this money next month? Next 20yrs? Any big debts? Any other relevant financial information will be useful to give you a proper answer. Be aware that these answers are just opinions of Redditors and should be used as a starting point for your research. You should strongly consider seeing a registered financial rep before making any financial decisions!

Let me start by saying I am not an investor and I merely only have my money in target retirement funds at Vanguard but this has been on my mind for a while. That being said, what value does a company get from having stocks available beyond the IPO? Let me clarify a little bit as this is how I understand stocks: A company wants/needs a bunch of money. So they work with an investment bank to sell a ton of shares that provide no real value in the actual company. Usually can't vote in anything, and one share only gives you like, 0.0000000000000000000001% of the company as they are extremely diluted. Investment Bank decides the company is worth $X. So they take $X and divide it by some crazy amount and wind up with $Y/share. They buy shares from the company and sell them on the market at the price they came up with. The company gets money, the bank makes money, everyone is happy. From this point on, the price is determined by the market. This is where my confusion comes from. As most shares are non-voting, you usually have no rights to the company anymore than any other random person, but yes, you are an "owner." Why does a company care about the value of their stock? If it goes up, they don't get any more money. If it goes down, they don't lose any money, correct? Google's shares could goto $1/share, but other than people talking about the price of their stock crashing, how can it have any actual effect on Google other than bad press? Also, value of stock is set completely by the market, right? So... Let's say Google's earnings were higher than expected. So the price goes up. Other than investors thinking it should be worth more, why should the price of the shares go up? I basically see all of this as baseball card trading. The baseball player gets money to use their picture. Thousands are produced, and the value of the individual copy of the card changes depends on how much you can sell it to some other dude for. How wrong am I?

I am a big fan of index funds, but would like to check out individual companies' balance sheets, just for fun. However I'm super new to that. I have one question regarding Google's statements, which I found [here]( (click "Balance sheet" near the top; I'm using end-of-2012 data): Their total equity is 71'715 M. They have 329.98M shares outstanding. Does that mean I get 71715/329.98 = 217 million dollars of equity per share I buy?

investing

StockJock-e

t3_1ujdj3

MrUnknown

t1_ceipryf

ceipryf

goddammitbutters

t1_ceiuxmk

ceiuxmk

Received a small amount of money. How can I turn that money into more?

I received 10,000 dollars. I want to save it as emergency money mainly because I've never had this much money at one time before. What are some fool-proof ways to slowly (or quickly) turn that 10,000 dollars into more? Throw it into a savings account and try to collect interest on it? Or is 10,000 dollars too low to collect any good interest on?

If you want to save it as an emergency fund just put it into a savings account call it a day. If you want to invest it invest it. Can’t really be both

Here's a thought: 10k invested in 10 years should become 25k (if invested in high dividend stocks, and general growth of said stocks should get you there). 25k in 10 years should become 65-70k (20 years in) 65-70k should turn into 140-160k (30 years). This is based on if you buy into dividend stocks, and general market growth (which is a gamble but generally always goes up, as long as no company goes bankrupt your invested in). If you add steady cash to that 140k-160k can turn into 200, 300 or 500 easily. It's certainly something to consider. Will it work? I can't say. But you have better odds of becoming a millionaire off that 10,000 then any other way.

personalfinance

Sad-Hunter

t3_avb4bu

Findingmyway1

ehdta72

Just_Stuffs

ehejgb0

PayPal continued to charge an account I removed from their system, admitted that the problem was their fault, but stated that they will not reimburse me for overdraft fees.

What are my options here? I recently moved to a new state and changed credit unions. I removed the "old" account from PayPal and received confirmation that the account was removed a few weeks ago. I then went about my life. I got a phone call from the old credit union today that I have over $300 in overdraft fees from failed PayPal transfers. I opened my PayPal account and saw that the removed bank was BACK, and that PayPal was trying again to charge for recurring payments, so I'm being hit with multiple overdraft fees for small $5 transactions. Ann, the customer service rep I spoke to, said that there is a known issue currently at PayPal where bank accounts are not properly removed. She removed it administratively from her end, but told me I would still be charged a few more times on that account and there was nothing she could do to stop it. She made it very clear to me that PayPal would not reimburse me in any way for the overdraft fees, despite admitting the issue was the fault of PayPal, as it's simply their policy to never reimburse for overdraft fees. I asked to be escalated, and she told me the answer would not change with her supervisor. I asked to be sent to their legal department, and she refused to transfer me there. What are my options for recovering these funds? Should I take PayPal to small claims court? EDIT: They offered to give me a letter to show to the credit union. I took them up on this, and the letter says the issue is all my fault instead of PayPal's fault, as they admitted to me both in text and via our previous phone conversation. EDIT: After telling them I would file a complaint with the CFPB and file in small claims court, they offered to reimburse for the overdraft/NSF fees. Thanks, everyone!

Small claims would probably do the trick. It's not worth their time to actually show up and go through the motions so they'll likely settle beforehand. Happened to a friend.

A similar thing happend to me where the debited my bank account to the tune of £4000 right before i purchased a car. Went to the ombudsman who sided with paypal because i didn't have the audio recording of paypal admitting fault. Have you got evidence of them admitting fault, would love to use it to open a small claims dispute Thanks

personalfinance

ZachSka87

t3_f6dqzf

stressedinadvance

fi4k932

AllThingsGassed

fi6tyqq

If there's a big dip in the market in the coming months (i know I know), can I sell all my investments in my Roth IRA and park them in cash?

I have an IRA in Fidelity, invested in a 3 different Mutual Funds, and I keep hearing that the market is going to correct itself soon (next 3 months), hopefully it doesn't, my investments are a little on the aggressive side. My questions is, if I can sell a good chunk and buy it back once it bottoms? is that possible? good idea? Please somebody shoot this guy/me? Cause there's a cash account for the money I transfer every month to be invested, and I was thinking maybe when the sell starts I can park that money there and wait for the whole debacle to stop. Maybe I loose a little bit before I know is going down for real, but it might save me some money, no? Thoughts? Please be gentle.

Good and bad stretches happen. The important thing is that the long term averages are in your favor. Don't try to outsmart the market. If it were easy to time when you were in or out well, then everyone would do it.

I tried that once and watched the market pass me by. I was just getting my act together and was constantly reading about the market. It seemed so overvalued. There’s plenty of perma-bears out there predicting the next crash. They made so much sense. I’d discount any good news. I was just building my own echo chamber to repeat what I wanted to hear. I got out of the market convinced it was about to go lower. Instead it climbed steadily up 25% for two years while I sat on the sidelines. You can’t time the market. Just set it and forget it. I know it feels too passive and that you need to take action. Don’t! I heard a good quote once that I frequently remind myself of: “If you think the market is high now, where do you think it will be in 30 years??”

personalfinance

Ichoosepepsi

t3_77gm33

alexm2816

dolnpo8

Whoopteedoodoo

dom91oi

Huge increase in salary - Redux

A link to my previous thread - I just wanted to say thanks to everyone for all the advice. The job offer DID happen. I was expecting 80-85k, maybe a little less, but hoping to negotiate up to that high. The number I was offered was 101k. My jaw almost hit the floor, and I accepted immediately, no negotiation. So here we are family of 3 with one on the way, 6 weeks ago, barely skimming by on my 37k a year. Now my wife is working at 44k a year after 3 years unemployed, and my salary has bumped to 101k with 15% bonus annually. I don't know where to start, but I will try my best to soak up all the FAQ's here and would love love love to invest some of my disposable income into some self sustaining ideas like real estate, etc. Sorry for the ramble, I'm just overjoyed and again, wanted to say thanks for all the advice and well wishes. tl/dr Went from 37k/year to ~160k/year.

Two pieces of advice I always give to people when they start making real money: It will not take long to feel like $160k isn't all that much money. Despise the feeling that you have 'made it' and the feeling like money is a gift. You earned it. Keep earning it. Keep living like it could all go away one day. Pay cash for the NECESSARY upgrades to your life, and don't get wrapped up in the stuff you can afford now. Don't ever forget what its like to live on $37k. Sounds like your killing it. Keep going!

One thing I'd highly recommend is getting a financial advisor. We started using one this year and it's amazing how they keep you in check. We make a very solid household income and it keeps us living below our means, investing wisely, and money comes out and straight into savings before we even see it. She's also helped me with my personal business savings and investments and knows where to put money/when to move it accordingly. Costs us $1200/yr and is well beyond that value in how much we're saving due to her guidance.

personalfinance

[deleted]

t3_2fe3tg

Pitt87

t1_ck8k246

ck8k246

CynicSayWhat

t1_ck8xqqh

ck8xqqh

How to profit from Kobe Steel scam?

I'm expecting companies that uses the affected materials by this company to potentially dip, since the companies would need to spend resources into testing/recalling or whatnot. Kobe Steel isn't traded on the US exchanges, but GM, Boeing, and probably a few others use their steel and are on the US exchanges

Catch the falling knife next week. Easy money. My Mitsubishi shares are up 47% and I don’t remember how much I made with Osho Foods when they had their Yakuza scandal. People underestimate the power of bowing and asking for forgiveness.

Buy stock of their competitors, they will gain marketshare when Kobe falls. ex: Arcellor Mital is up 10% since the news broke. So you're already a bit late to the party

wallstreetbets

TFinito

t3_76hs3q

thelordofthepings

doe4cj9

eldiablodelafiesta

doe6d6t

Is it possible to live $900 a month?

Me and my girlfriend have to start doing some serious budgeting. With our minimum incomes (we get a lot of overtime) minus bills it comes to about 900. Could we live off that? The 900 would be going to Groceries, Entertainment, Gas, Clothing, Dogs, etc. We spend a lot more than that now mostly due to overtime which isn't always a guarantee so our expenses fluctuate a lot. Then were going to try and pocket the overtime and put it into savings to start up an emergency fund. Thought I should ask you experts of course.

Simple math problem. Set down and add up all of your monthly bills, including grocery shopping. If that answer is less than $900, then your answer is yes. If it's over $900, then go back and look at your expenses and see if there are luxury areas that you could cut to get the number down.

There are people that manage to live off of $900 TOTAL. As long as you take to heart the difference between a want and a need you can cut spending significantly.

personalfinance

SavageJerkoff

t3_43hu06

alek_hiddel

czib0wv

BeefiestName

czikt7y

My car has been repossessed and my mom's telling me to let all my debt go and just focus on saving cash since my credit is already screwed. Is she right?

Tl;dr planned on paying off debt but mom says not to because my car has already been repossessed. Will it all be cleared in 7 years anyways? Hey, guys. Just some background...I'm 22 and had a ticket which I irresponsibly chose to ignore when I was younger and forgot all about. I bought a new car (I know) and paid for insurance 6 month in advance. Fast forward a couple months and I received a letter (to my old address) saying I wasn't approved because my license was suspended. I was dealing with fees and tickets and decided to hold off on paying my car and it got repoed. It was honestly a huge relief. I had tickets, suspended registration and no insurance. Now I'm perfectly happy and much less stressed taking public transportation. I'm still paying for some traffic tickets and have some other debt too (a payday loan and a closed Bank of America card). I have a couple of store credit cards, a credit card and a loan with my credit union that are all either being paid or time or don't have a balance. My original plan was to take care of the tickets first and focus on paying everything else including the car but my mom is telling me I should pay off the open lines of credit and let everything else go since my credit is already screwed. Is she right? Will it all just go away in 7 years?

Here are some things that could happen: Up until the statute of limitations (varies by state) on any of the debt, you could be sued for it in court. If you lost the lawsuit, then the lender can use the judgment to seize assets and money in bank accounts subject to whatever limits your state has set. Most states also allow for some wage garnishment with a judgment against you. You probably won't get sued by everyone, but you may get sued by someone. After the statute of limitations is past, you still may get sued for a debt, but the case would be dismissed as long as you showed up to court and brought up the statute of limitations defense. If you didn't show up, they could still get a judgment against you. Judgments can also be on your credit report for 10 years. The time they have to collect on a judgment varies by state, but is usually longer than the statute of limitations. In some states it is very long or can be renewed. So a judgment against you today could trigger someone raiding your bank account 20 years from now if your state's laws allow that. Separate from the statute of limitations, any bad marks will stay on your credit report for 7 years and hinder your ability to get loans and good rates in the future. As the accounts age they will not have as great of an influence, but they will still be there for 7 years. It is quite likely that the various accounts will be sold to collection agencies that buy bad debt. They can be passed around from one to another quite frequently. Each one will probably try to contact you in some way for the debt; by mail or by phone. You can limit how they can contact you by invoking rules of the Fair Debt Collection Practices Act, but you have to do it for each new collection agency that buys the debt. They can continue to try to collect on the debt even once it is off of your credit report and past the statute of limitations. Something you had long forgotten about could get you mail or phone calls 10 or 15 years from now. So, that's what can happen. With the tickets, I don't know your local laws but there could be possible jail time if you don't pay those, so take care of those first. If you are able to pay off the rest of it, I would recommend doing that. Even if you can't make payments on everything, pick the ones you can pay and pay them off, then start paying on the other ones. Even though you will have bad marks on your credit, paying the debt will keep you from getting a judgment and possible wage garnishment. The bad marks on your credit will also not look quite as bad if the account is paid in full even with a lot of late/missed payments.

I think you have your priorities in order and your mom's advice isn't all bad. First pay the government, everything you owe them because this won't go away. Don't ignore anything that can land you in jail. Second pay the banks, everything you owe them because you don't want to be in the situation where you can't get a bank account. Third pay your credit cards, same as with the banks but see if you can negotiate on interest rates or fees. Last, I think your mom is right about the car. Let it go, the damage is done. Focus on rebuilding financially and living more responsibly.

personalfinance

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What happens if you are 1 day late with a home mortgage payment? (NJ)

My parents are computer illiterate and left me in charge of one of their home loan mortgage accounts and, this isn't an excuse but, I've been away for the past month with no internet (hiking and camping in an area without internet for a month) and just got back to civilization, I see on the NYCB website that the "Next Payment Date" and "Date Due" is 1/1/2017 while the "Late Charge Date" is 1/16/2017. I'm making a payment now but it won't be in effect until the next business day 1/2/2017, effectively one day late. What happens in this case where I'm 1 day late, are we charged extra interest, does the credit score for my parents go down? I really feel like I messed up here and am hoping someone can clarify what's going to happen or if there's anything I can do

You answered your own question. Your payment isn't late until the 16th on that later charge date. Most mortgage companies give 15 days past that date in order to get checks and such.

Nothing. My mortgage has the exact same setup. I frequently forget and don't send in my payment until the 1st or 2nd of the month. Usually my bank doesn't receive it until the 5th or 6th. They haven't complained or said anything to me. Typically a payment would have to be 30 days late for it to be reported on your credit as a late payment.

personalfinance

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Co-Signing for car with a parent...?

Hello all, please forgive me for my grammatical issues in advance My mother needs a new car, but based off her income she will not be able afford one (she makes 20-24k a year) so she needs a consignee. The car has just recently been paid off it's an 06 Impala. It has been through hell and back. The car has oil leakage problems, heating/ cooling problems, and exterior body damages as well. We're hoping to do a trade in, but we might just scrap the car if the trade in isnt worth it. At the moment I have a job so we're trying to get this done ASAP. Also I'm going into the military soon so I'll have money to send her if she needs it(which is part of my plan). But a the same time I dont want to feel like its an obligation to give her a certain amount of money every month to pay for her car. As a 21 yr old with no credit history, what are the pros and cons of co-signing with a parent? I don't want my credit to be destroyed before I even get a chance to use it myself. I really know nothing about the ins and outs of the car dealership business, I'm just a kid that wants to help his mom get a car. What value car should we be looking for? 20k and below? I just want some insight before I get into something of this magnitude, because I dont want my credit to suffer. I know having credit problems at a young age can linger and cause major problems in the future. Thanks

cosigning means you are 100% responsible for that loan. If she doesn't pay, you will have to pay or it will ruin your credit. The bank may never even notify you that she didn't pay the bill until you get the notice from the collection agency

I bought a car on my own with that kind of income, no problem. Granted it was a used car, but it wasn't a problem. If she's being asked for a co-signer even though she has income, that means she hasn't paid as agreed in the past. Therefore you are signing up for bad credit history when this loan isn't paid either. If you want, give her a beater car after saving up for a few months. But don't screw up your credit by co-signing. I disagree with a few folks here: co-signing is never a good idea. It would be better to just give someone a down payment than to help them get into a loan they aren't ready for on their own.

personalfinance

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IQ option and binary options

Does anyone find IQ option as a good broker and are the binary / digital options reliable?

[Binary options are a scam, stay away from any broker that offers them to be safe.]( But you can get a real broker and sell options on stocks (credit spreads, cash secured puts, the wheel etc.). It's slow, but do it long enough and the math works out in your favour.

I see most of the coments are from people who have no idea about binary options. I'm no expert but used IQ for a couple of months and somehow managed to stay even. Your only counterpart is the "broker" or trading platform. There are no 3rd parties. You trade with the trading platform and cannot sell the options somewhere else. Basically, binary options are either calls or puts with a short expiry time. 1 min, 3, 5 and so on. With just one click you can "invest" so take care and don't put all eggs in one basket.

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Roth IRA Question

I have had a Roth IRA for a couple years now. Recently I discovered that there are eligibility limitations based on income. My wife and I exceed the maximum allowable income to contribute anymore to the Roth. There is only a couple thousand worth of stocks and cash in it. I stopped contributing to it but my question is, what do I with with it now? What options do I have? Any help would be appreciated.

In 2010, the IRS eliminated the limits on IRA to Roth IRA conversions. Here is how it works. 1) Contribute post tax dollars to a regular IRA. 2) Then covert the regular IRA to a Roth IRA. 3) Profit. If you only contribute post tax dollars to your regular IRA, there is no tax on the conversion. What this means as that you AND your wife each put up to 5k into a regular IRA. Then you convert it to a Roth. All it requires is more paperwork. I have done this on Vanguard since the change in 2010. It simply requires an extra few mouse clicks. Cites [(1)]( [(2)](

You dont have to do anything. You can leave that roth IRA as-is until you retire. there are no rules about someone who is above the income limit owning a roth ira that they opened/contributed to before they were above the income limit. am i understanding your question correctly?

personalfinance

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Critcism of bogleheads method

Many here swear by bogleheads long term investing method, and it does seem to be a good way to invest for the future. But nothing is perfect, and I have yet to read an argument against it. What are in your opinion its downsides?

Boring. Instead of hatching schemes to profit off of Chinese currency devaluation or the "Grexit," you instead focus on saving money and investing routinely according to your planned asset allocation. Ignorance. The stock market is like a sport you know nothing about. You'll have no interest in watching analysts yell about buying or selling stocks on CNBC. When the topic of investing comes up at cocktail parties and people are looking for "stock tips," you have nothing to contribute. You won't know anything about trendy stock-picking methods other than that the math doesn't favor you in the long run. Fear of Missing Out (FOMO). When the stock market is way up, people with an asset allocation of any sizeable amount of bonds (say, 20% or more) have to watch their neighbors (who may be 100% in stocks) "make" more money for a while. No lucky shots. You will never buy the next Tesla, or Google, or Apple, or whoever, for dirt cheap and become a millionaire. You will never pick the rare mutual fund or sector that happens to outperform the rest of the market that year.

My main criticism is that people hold it out as a panacea for all investments, whereas for high net worth individuals and others with special needs it's at best non-optimum.

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Recommended Areas of USA to Live?

Hi...not sure if this is an appropriate question for this subreddit. This is my first time visiting here. Though I assume there are some pretty knowledgeable people here! :) So basically, I'm working on trying to gather information on reasonable places to live in the United States. I currently live outside of Boston, MA with my parents. This area is fairly expensive and not really financially suitable for my girlfriend and I's situation. In my current town...average list price is $1M, lowest we would be able to rent for is $1.5k-2.5k/month. While the location is obviously great...simply not affordable for us. I was hoping I would get some assistance on expanding my knowledge of strong areas of the country to live. What we are looking for: Strong technical work opportunities. I work in IT, so it would be great if it was an area that had a growing tech industry. We don't want to live in isolated areas, as my work will depend on technical based businesses. Schools: My girlfriend is aiming to work in the school systems as a youth behavioral counselor. We would like there to be plenty of options for schools in the area so she can seek work. As well as for when we start planning a family, we would like a good school system for our children. We would love to have a decent chunk of land. Not massive...but maybe an acre? We want room for our dogs to run free. If you do provide some information, please be specific as possible :) When listing city areas, please inform me of "bad/good" parts of the city, or the more wealthy side, etc etc. Thank you! Edit My goal is to hopefully build a comparison of various cities in different states around the US. In terms of average house prices, $/sq ft, lot sizes, school systems, job opportunities, etc etc. To sum it up: We don't really have any tie downs. Looking for better value real estate, but still in a tech-growing area. We aren't big on "city life". We have looked into Raleigh, NC, any input?

your only two requirements for living somewhere are job opportunities for IT and behavior counseling? try any major us city btw if you want affordability, high wages, and good weather, go to texas

I would say metro Atlanta area as well. You can find relatively cheap housing, decent plots of land, it has a big tech industry, and there are areas with great schools. If you were to look in Forsyth County, around 30 min north of Atl, you'll find some of the best schools in the state, and also have your pick of housing from 150s to 1 millions. And Alpharetta is a pretty big business hub for north ga (partly in Forsyth, partly in Fulton co).

RealEstate