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HR made mistake, effectively pulled a bait and switch on me with pay. What do?

I'm a month into a position that was considered a "lateral move". Before accepting I asked to see a pay quote and was told that it wasn't a move up, just to another division so my pay would stay the same with an hourly rate and OT rate of 1.5x. HR just emailed me saying oops, it's actually base pay and bonus eligibility and oh ya it's effective as of your start date a month ago. My new role is very heavy on ot, easily 15+ hours a week so this robs me of a significant amount of pay and effectively drops my hourly rate by ~$10. Our bonuses are slim to none with no guarantees of any money at all. Can I fight this or am I SOL? Anyone been in a similar situation? Edit: Just to clarify I'm going from hourly pay (including 1.5x OT rate), to base salary with possibility of bonus (significant cut in pay given how much OT I put in) I e-mailed HR about pay before accepting and was told I'd keep my hourly setup 1 month after accepting, they are now telling me they made a mistake and that I'll receive salary + bonus (if any) Edit 2: Whew, didn't expect so many replies... I'm meeting up with HR tomorrow. I'll be bringing the printed e-mails to show them, and we'll take it from there. I have plenty of leverage on my side, but we'll see. On an unrelated point, I can't say I'm a fan of the "just quit" method here. Sometimes its not so easy to do, regardless of savings or pay. That said, keeping an eye out for better opportunities is never a bad idea.

You should have a candid conversation with HR and your manager (together) in which you explain that it's illegal to retroactively change your pay rate (and that you are a little disappointed/scared that HR isn't already aware of this). Also I would sort of say, "So, in my shoes, I think you would agree this is extremely disappointing. I like working here and I thought my work was highly valued. This really changes things for me and I just want to make sure there's no misunderstanding about how this is being received. To me, this is essentially a demotion. I'm not one to take rash action, but I think I know what you would do if you were demoted, so I have a lot to think about"... You're not making threats, but putting it out there like "hey, you are screwing me. If this isnt going to get fixed, I'm going to leave. You say I do good work here and I do, so let's fix it if we can", but you have to be willing to walk.

Really most of the top comments are bad. OP if you like working for this company propose that they adjust your new base pay to reflect your average total compensation in your last position (say over the last 6 months) . They can make adjustments for bonuses but ask them to support them with data. It is absolutely reasonable to ask for the pay to be restructured so there is no anticipated net loss of income on your part. But you should also have the expectation that you will need to go to salary instead of hourly. They won't want to mix salary types in one work pool.

personalfinance

robotsautom8

t3_3hki9b

usernameicanremember

cu85ory

MoKingDuck

cu8gf3w

Employer "gifted" my child $5k instead of paying me directly. What are the tax implications for me?

A substantial portion of my wages each year is given to me, through payroll, as a year-end bonus. Instead of including $5k in my bonus this year, for some reason my employer wrote a check out to my child (a minor) and gave it to me. I still received other money as a year-end bonus, but this additional $5k brought the total to where I expected it to be (implying that it was actually intended for me). I don't know why they did it that way, and I'm not going to ask unless I learn otherwise. I want to know how to handle the taxes on this. It was technically a gift to my child. It was from the company, written on a company check. I deposited the check and it's in a bank account in my name. What's the above-board way to handle this? Thanks for any help!

Companies can give gifts, same as people. It is on the giver to report it (if necessary). If its not showing up in your W2 or any paystub (or 1099 if you are that), then its a gift. You can outright, ask, too. Probably easiest way to go about it.

You might owe tax. This may fall under kiddie tax rules. In the past people tried to shelter money by giving it to children. You are walking a seriously fine line, as a gift to your child ONLY they can spend it, technically. I would seriously talk to a CPA if it is a bonus for you, then it's a bonus. Be very careful or both you, your child, and employer can get investigated for tax fraud.

personalfinance

infield_single

t3_am6qo2

BasicBrewing

efjqj7x

Fredthefree

efkdex9

Family could lose everything, please some advice.

My 50 y/o father could lose his job and he's basically suicidal right now about it. He had some kind of accident at work and is trying to cover it up since he would have been terminated anyway he's working on borrowed time. He hit another persons care with a forklift, luckily a family friend, he is able to afford the repairs, but doesn't know if anyone else saw(but it is on tape if anyone looks). I'm 22 college drop out with a min wage job and loans, my mother(50) also is min wage. I have 2 younger brothers not working(one in school). Basically my father has $200 to his name and we're generally fucked if he loses his job, no house, no car, no insurance the whole 9 yards. Besides putting my loans on deferment and picking up another job, what can be done? My father feels hopeless about finding another job at his age and with his bad back can't really do labor or stand long. I hope I'm not putting him at risk by posting this, but I'm so scared that my father might kill himself over this, I'm just so clueless.

Not exactly sure what your question is. Attempting to address everything. What is your basis for thinking your Dad is suicidal? Is he talking about ending his life? Is he giving away his possessions? Are there signs or is your dad depressed and/or stressed out? I run a company and things like this happen. Unless he was drunk or screwing around, no one gets fired for something like this. He is more likely to get in trouble if he continues to conceal the accident. Maybe its different where he works, but I fired everyone that made a mistake I wouldn't have a staff. Your situation should not be directly impacted by your father's job. You are 22 years old. Do you plan on living with your parents forever? What is your plan?

Well your family is obviously in a lot of trouble son, and you're not going to find an 'easy' solution to it. Can't give you any direct advice given lack of detail. But what I can say is that seeing your parents financial fuckups can serve as motivation for you to avoid the same mistakes. Research the highest paying job that you could imagine yourself doing. Research what education you need for it. Go back to your education as if your life depends on it and use that pain you see in your father's eyes as motivation to get through the tough times that will ensue. Sacrifices will need to be made and the one asset you do have left is youth and opportunity. Don't waste those.

personalfinance

Pleasedontsee1234

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jdoe74

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cg22si2

garblegarble12

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cg2vut6

Seller: Offer received with inspection contingency, but "as is"

we received an offer on our house with all contingencies, but they proposed an "as is" condition. I know this means no repair requests, but why would they offer that without us requesting it? Market is not that hot in our area. Are there any benefits for buyer or risks for seller because of that? Thanks for feedback.

It just gives them an "out" if they have the inspection and aren't satisfied with the results. It insinuates that they won't ask you to fix anything, but they may still back out if they find things that are more than they're willing to take on.

It could be taken as they are not making repair conditions just in the initial offer, or they could not be intending to ask for concessions after the inspections, although they still could. You should basically just ignore the "as-is" part of the offer.

RealEstate

Sad-Isopod9071

t3_nga16y

coralpeter

t1_gyppmc9

gyppmc9

paper_killa

t1_gyq6drn

gyq6drn

Is my budget reasonable? (grad student, living in boston).

Hey guys. So... I'm not actually a grad student, but I'm receiving almost exactly a grad student stipend. I make $2700 a month, which will be $2,300 after taxes (I used the right marginal tax brackets). If I pay $1500/mo for rent+utilities, I will have $800/mo = $200/week for groceries, savings, and other expenses. Is that unreasonable?

You need to be looking for rent around $700 or $750 to really set yourself up for other spending and saving. That means shared housing in the Boston metro area contiguous to the city. I think Craigslist shared/rooms subcategory is your friend here. Set [$800 as your max]( and search for places that show pics. As a search term you could use town or neighborhood word to narrow your focus. Ideally you want 2 or 3 roommates, near bus or subway. Source: Rented in Watertown for many years.

I disagree with most people's comments about rent... I've been looking for studios in Boston and haven't had much luck under $1300 (and I've been looking outside the city, including JP and Malden/Medford area). Since I lived in Boston just two years ago, rents have really skyrocketed. You'll definitely want to share if you can.

personalfinance

TissueReligion

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wijwijwij

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cjs41wq

CA_319

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cjsdjmk

I'm not happy with my current field. Is another $35,000 in Student loans (on top of my $10,000) worth getting a second Bachelors in a field that earns me an additional $15,000 at entry level, and a median salary of $110,000, and is in a field I see myself much happier in?

I have a BA in English Literature and am making a modest $40,000 each year in sales/marketing/communications. I have "soft skills", in other words. Problem is: it's not that much money and I hate sales. English Literature degrees are all about analysis, and it's not what I'm doing at all. My degree of interest is a BS in Software Engineering. A "hard skill" or technical skill, if you will. Yes, I'm good with math (read 2nd edit).

Hey ! I work as a Software Developer for a large company and helped my friends jump start a career and to get a job in my field as entry level web developers. Here's the kicker, I went 4 years to school and graduated with 5k debt.My friends on the other hand just did a free coding bootcamp.. and obtained a job in my field after a few months of training and going to Meetups to do coding challenges and to network. They all met their current employer through them. The beauty of software development is that well you don't really need a degree. My exes dad is a project manager for IBM with a HS diploma, 3 of my friends are entry level developers(people I just mentioned), and the guy who sits behind me at work has a GED. He likes to brag he didn't have to pay for someone to teach him. My team leader got his degree in Sales and transitioned to Web Development 3 years ago and he loves it. In your case since you won't have the education will have to rely on personal projects on your portfolio. This is the reason why you need to do meetups, network, and just get an idea. Build a portfolio website and put yourself out there like my friends and the guy behind me at work did. Basically what I'm trying to say is if you have some time and can read up on programming or a bootcamp such as the one I mentioned earlier and put yourself out there I believe you will get a job in the field. There are bootcamps that guarantee you a job but cost a pretty penny. The best part is you already have a degree. Your degree specifically is what is needed for Team Leaders/Project Managers.

There are no guarantees that a degree at 35K will get you a 110K job correct? One of the biggest problems in America is telling our kids that a degree will guarantee them a job in their desired field. Biggest lie ever.

personalfinance

shuerpiola

t3_5053zt

Ani10

d71973k

wolf1317

d71m1ch

How much money do you save/invest per month?

I'm curious about what the average person in this sub puts away (saving or investing) every month. Would be nice to know how one's doing based on the average towards financial independence?

Everyone on this subreaddit is a bloody engeneer. I'm a humble teacher. I make 40k annual and save 50%. My humble Aussie house is now paid off (340k) this way and I'm going to start in shares.

This thread makes me realize my "spending" is way higher. I just looked at my spread sheet, I have $5600 in "fixed" spending. Mortagge($2700), health insurance($1400/mo), day care($1100), disability insurance($540), auto insurance($200 for 2 cars) and HOA($171). Not even counting utilities or my normal budget. I def need "FATFIRE" money

financialindependence

Uilleam_Uallas

t3_7h46qs

nekoatsumeteacher

dqo20m9

FatFIRE_anes

dqosory

Should I co-sign on my sister's nursing school loan? (MO)

I'm 34 and make just under $40k a year. I have no real assets and live in an apartment with a paid off car. I do have some CC debt but I have outstanding credit. My sister is 23 and in a BSN program and has a 3.92 GPA. She's taken out barely any loans but needs about $15k more to finish and just canNOT work anymore these last 6 months of the program than she already is. My mother can potentially co-sign and isn't opposed to it but there are two issues there: 1. her credit is decent (EDITED) but already heavily utilized as we're a huge family (I am the oldest). 2. My mother is in remission from pancreatic cancer, has recently broken a hip and received a pacemaker. Things are not looking good. My sister did say (and we know this is dark), if our mother is the one who signs and she passes, the loan would be forgiven. It's a Federal Plus loan at 7.6%, fixed over 10-25 years. Interest accrued on principal balance from date of disbursement. Just running my options here. Please give any and all advice as I have rehabilitated my credit myself over the last 5 years from my own terrible choices (not really school but financial immaturity) and don't have a ton of knowledge about this. This isn't something I'd normally consider except that I know this is a quality degree program and she's doing well in it so I feel confident she'd be able to pay it but I don't want my personal bias to affect this decision (too much). Thanks.

Why does she need a cosigner? She needs to take out this loan by herself. Do not cosign, you don't make enough money to be liable for this debt, especially when your little sister will make more money than you on her first job.

If you co-sign, you sister gets a lower interest rate. She saves money. What do you get, other than the risk of having to pay the loan? IMO, it is only reasonable to ask you to co-sign if she is splitting the profit with you. For instance, if the lower rate saves her $1,000, she could agree to pay you $500 once she is able to start working again. Or after the loan is paid off. Whatever the two of you can agree on.

personalfinance

iendandubegin

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HereAboutAThing

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minorcommentmaker

e8bh5m3

Where do I put it ?

Selling my condo , so will net around $550000, suggestions on where to put this for income generation?

With that amount and your total asset level with your other investments, reddit should be the last place you get advice. Go to a professional. The benefit they will bring from a tax, planning, and legal perspective is worth the fee.

Assuming your primary objective is capital preservation with absolute minimum risks, below is what I would do. (1). Invest $150K in SHV The iShares Short Treasury Bond ETF seeks to track the investment results of an index composed of U.S. Treasury bonds with remaining maturities between one month and one year. (2). Invest $150K in BIL The SPDR Bloomberg Barclays 1-3 Month T-Bill ETF seeks to provide investment results that, before fees and expenses, correspond generally to the price and yield performance of the Bloomberg Barclays 1-3 Month U.S. Treasury Bill Index. There are many other ETFs with higher yield but you want to stick to SHV/BIL as these ETF are strictly limited US Government Treasury bonds/bills. (3). Invest $200K in Capital One CDs with different maturity date. And keep remaining $50K in cash in the bank for emergencies.

investing

Justlookingq

t3_de2tia

TheStonedEconomist

f2rq1fy

spicydude

f2txzx6

Early retirees, what are you currently doing?

I'm nowhere to close FI/RE myself(making my first transfer on IRA this week), but I'm curious though. What are you doing, once you quit the job and said that this one is "for real"? I would like to write books(I currently don't have time to do so due to uni) and volunteer at a nursing home, maybe learn some crafts too(plumbing, glaziering). What are your plans/routine?

We retired to a small homestead in Southwestern Pennsylvania where we raise livestock for our own personal consumption (chickens, ducks, geese, turkeys, pigs, and sometimes rabbits) as well as a small fruit orchard/vineyard and a couple of vegetable gardens. Currently (as in literally right now) I'm procrastinating about going out in the rain to start a fire in the smoker so I can smoke some kielbasa I made yesterday. After that, I need to make a mortadella and a boudin blanc. Yesterday, I made headcheese, salami, soppressata, and the kielbasa. Tomorrow, I have a bunch of people coming to my house to discuss how we can purchase a local historic landmark from Consol Energy because they own the property and have allowed the house and outbuildings to be vandalized and looted of the copper piping and wiring. The guests are from all over the state and are affiliated with various historic preservation entities, as well as a couple of friends of mine who are interested in purchasing the property in question and running their business out of it. I don't know any of these people (aside from my friends), so to make a good impression, I am putting out a lot of our charcuterie. On the menu is tonno di maiale (tuna pork- slow simmered cured pork that is preserved in olive oil. It's like tuna salad), salami, soppressata, prosciutto, cured egg yolks, kielbasa, smoked goose sausage, andouille, duck hot links, coppa, lomo, the boudin and mortadella, various pickled vegetables, and cheese/baguettes. About 70% of my land here is forest, so we heat our home with wood... I just started cutting next year's wood, so that's something I do any time the weather permits. And since we don't keep much livestock through the winter (just the laying hens), we do our annual vacation in January. We just got back from Turks & Caicos, which was a nice change of pace from the rainy, grey winter we've been having in Pennsylvania. I lift weights starting at the end of the summer (to bulk up for the pig-slaughtering season)... and usually taper off in about March/April... My cycle is basically to gain about 20 lbs from September-February and then once wood-cutting season starts (and outside work in general), those pounds fall off and I get all leaned out for the sunnier months. So, I'm going to go get the fire started and start making the emulsified sausages.

I have a husband and kid. I spend time with them every day. I play hockey and volleyball (great for socializing). I walk a lot. I weight train 2-3 times a week. I have lunch with friends 1-2 times a week. I read a lot. I take MOOCs (not enough time to do all the ones I like). I volunteer at my son's school. I manage my hockey team and am on the board for my hockey league. I like to do outdoorsy stuff: hike, bike, snowshoe etc. I watch scifi shows when I have time or am sick and/or injured or if I've got a knitting project. I wanted to learn to swim (currently actively not drown, but no form) and I wanted to get back into rock climbing. I don't have time for both. swimming won for now. I'll reassess when I get my swimming level where I want it. It took a while before I found all the things I wanted to do. I'm not the kind of person that is really really into one thing. I need variety.

financialindependence

jezusiebrodaty

t3_5pvb7y

ellipses1

dcu968x

unusedusername3

dcwkm21

I think I'm settled on these stocks to start dollar averaging down with in the next couple of days. Opinions?

Hey guys, thanks for reading. So I've been eyeing the market for a while and have been lurking the subreddit, and I think I've come up with a portfolio that I will start dollar averaging with. I'm investing $4500 - $5000 and I plan on holding these for around 5 - 10 years. Curious on your thoughts/whether there is enough diversification. Thanks again for checking this out. APPL - 20% MSFT - 15% DIS - 15% BAC - 15% V - 15% SBUX - 10% DAL - 5% ??? - 5% &x200B

Just a thought you could replace apple and microsoft with XLK etf. it’s 20% microsoft 20% apple i believe 5% V and MA then less of some others like amd intel nvda. Really good etf.

DIS tested resistance a lot today. But I know little and am just pointing out what I saw. Would have been good to day trade options on the peaks and valleys.

stocks

musicandtacos

t3_fkbzj2

zachrf1

fkrt14s

roytown

fkrzqit

maxed out on salary for current position. potential new position with lower pay but higher future cap.

Hey personal finance, Just seeking some advice on a potential job opportunity that has come up. I am currently a field supervisor for a conservation crew who is capped out on salary for this position. In order for me to earn higher pay i must switch jobs with a higher salary cap. Heres the catch, my supervisors position is currently vacant but has a lower (~15-20%) starting pay than what i am getting now. However, this position is more stable in terms of longevity and has a higher salary cap than the one im currently in. i have heard the phrase "a dollar today is worth a dollar tomorrow" and am worried that taking the lower pay but higher potential job is no guarantee to be earning more money down the road. just seeking advice. thanks

I have been in the same position in the past, switched companies and careers for a lower starting salary but higher potential. It worked out but I knew the risks and my SO was there to support me. Some people value stability over growth and potential risk, but nothing ventured nothing gained.

How many working years do you think you have in front of you? If you're approaching retirement within the next decade, then I think it's a tough choice that is going to come down to your personal preference for risk. If not, then I would absolutely take the risk and move up. Not only will you have an opportunity to make more in that role, but it will set you up for another promotion in the future.

personalfinance

Lavapaddler

t3_5k0gnl

MrCat_fancier

dbkd8vj

Badmoodsbear

dbkrp59

How do you prepare for a recession?

Speaking from the perspective a middle class wage worker with very marginal discretionary income. Aside from dusting off my resume and saving every cent available. How do you guys recommend preparing for this next downturn?

Emergency fund is very important during a downturn. You may consider bolstering the 6 month emergency fund to 12 months if you think you may have a hard time finding another job if you were to lose yours. Cash and liquid assets are very important during a downturn. Other than that, don't make any short sighted, knee jerk reactions to long term investments/retirement savings. Stay the course, rebalance as necessary, and maintain target asset allocations (i.e. if you're 85/15 stocks bonds and stocks take a nose dive leaving you at 70/30, instead of selling stocks because you think they'll drop further because that's all you hear in the news, sell bonds and buy stocks to rebalance back to 85/15 if 85/15 is your target asset allocation).

Don's cash out of the market trying to protect things, better to ride it out. You could maybe go more conservative but still sticking with leave it, not timing the market. Limit your bills/debt and have a good free cash flow. Hoard cash so you can ride it out if necessary and be positioned to take advantage of cheap things coming out of it. What got a lot of people in trouble in 07 was they ran out of cash and could not ride it out. Even if they did overpay for there house, most markets have recovered. So many people went to far in debt trying to get in while it was hot.

personalfinance

ChrysMYO

t3_7pyrdm

sh1ft3d

dsl369w

Stedw

dslf4oq

I have $1 Million and want to be free.

I'm 28, I inherited some property from my family that is worth a little over $1 Million. How can I become financially independent from this windfall? I hate my job, I work in a restaurant. My parents are militantly middle class thinkers that think the only way to be happy is to work a job, earn active income be asset rich but cash poor, I quote my mother as saying, "The only time you are free is when you die". I want to make this $1 Million generate enough passive income from investments; I want to create a well diversified portfolio that protects that capital but also generating me passive income and I plan to move to some SE Asian country (Thailand?) to live in a low-cost environment while letting my dividends reinvest itself for the years. How feasible is this? I hate my life and I hate to work. I hate my current lifestyle and I want to spend this freedom to become a healthier better me. I heard that I could withdraw 4&37; ($40,000) per year for life? Any advice would be greatly appreciated. Here is a little bit more detail about my situation. I am a resident of Hong Kong, and we have no dividend or Capital gains tax, therefore-- taxes are not factored into the capital. Because I live in Hong Kong, air fares to SE Asian countries are quite cheap and my home base is not too far away in case anything goes wrong in these countries. So, approximately I'll have about 1.2 Million USD. What is the best investment advice you can give to generate a livable passive income from this but allowing the capital to increase (protected from inflation)?

I read advice once that said you shouldn't make any moves for at least six months to a year after tragedy, like the death of a spouse, which often comes with life insurance money. I think there's some wisdom in that for you, too. You say you're unhappy, and you want to get away from your current life. But what do you want? Moves based on fear (i.e. running away from something that makes you miserable, versus running toward something that brings you joy) can sometimes be clouded by our negative feelings. There may be consequences you haven't yet considered that make you more miserable in the long run. The great thing about this inherited wealth is that it's yours. It's yours whether you work in a restaurant or live in Thailand. The smart thing to do would be to keep your job for now, seek out professional financial advice, and start building a plan. I bet you'll hate your job less, knowing you could walk out at any moment. It's easier to endure things we don't HAVE to endure long-term. But buy yourself some time, at least a few months, to reflect on what you do want, what you don't want, and how you can build a bulletproof plan to get there. I don't agree with your parents that people NEED to work in life. However, you may find, even with money, that having a job gives you some structure to your time--and when you have money, you can do anything you want. You don't need to pick a job for the money it brings you. You could become a dog trainer, because you love dogs, or be a bartender on a beach resort just to meet new people. And the only reason I mention that is because it can be really isolating to leave all those social structures behind and be on your own every day--so if you do decide you want some sort of schedule/structure that allows you to interact with people, think about all the off-the-wall jobs you could do that previously seemed ridiculous. Naked figure modeling for art students? Dressing up like Batman to visit sick little kids in the hospital? Underwater basket weaving?? Find what actually brings you happiness, and then structure your financial life around that. You have been given an incredible gift, to be able to choose from anything in the world that makes you happy--the hard part is just knowing what that is.

I would go to a Shrink that specializes in career planning. That’ll help you find something you like doing. With that $ you have the freedom to take some time to find that. Good luck.

financialindependence

DrySubject

t3_8qibha

reclaimingmytime

e0jdc5j

yungbeez

e0kyp2p

Shift from renters to homeowners

Do you think we will see a shift of renters to homeowners due to the low interest rates or do you think the economy will put a strain on homebuyers?

Not at all, in fact, the opposite, I fear. If we are approaching massive unemployment, some people who don’t have much emergency savings may be losing their homes if they can’t pay their mortgages. If anything, we will have more renters and possibly HIGHER rents as there is more rental demand. At the same time, there will lowered home prices for those who can afford it because fewer people will be in a strong enough position to put up a down payment. Of course, rental demand may lower as some tenants may be evicted and kicked to the curb, lowering rental demand. Tough to say, except there will be blood in the streets. Meanwhile, banks that foreclose may be slow to do it, so it will take time for us to fully see what impact this has, and how bad it is. I imagine it might be 6-12 months before we see foreclosures happening. Why do I think banks will not be aggressive? Because banks don't want to foreclose property and try to sell it into a super weak (low price) market. Remember about 10 years ago, back to 2009/10? Banks could foreclose on a condo "worth" $400k only a few years ago, and quickly realized it was worth maybe half that on the open market. While it's very sad that the owner "lost their condo", the owner didn't actually lose $400k (since they were only in for a down payment + a few years of payments). Who lost the $400k? The freaking bank. (Side note: Don't interpret that I have general sympathy for the financial sector. The real estate bubble was a result of the financial industry for offering huge mortgages to anyone with a pulse, making fat commissions, and then slicing them up and selling them off to investors.) Anyway, banks remember this shitshow from 2009/10, and in these Covid times, I expect they will try to work with the owner and hope that the owner can get back on track with their mortgage payments. To sum up: rental demand might go up as house prices may be down as the line of willing home buyers greatly contracts. Side note: liquid, deep pocket institutional buyers or tech companies like Zillow or Berkshire Hathaway ($100+ billion cash on hand) could snatch up properties at huge discounts, and become cash-flow-positive institutional landlords for 10-20 years before that property appreciates and they sell it off and make a killing. Zillow has about $2.5 billion cash on hand that's about 10,000 properties valued at $250k each. BH has about FIFTY times that = the buying power of a half million $250k homes. Maybe in 20 years, 30% of the country will rent directly from Zillow, and this will be the start of it all. Might be great news for companies that have the cash to play the long game for a decade +.

Nope. Underwriting reqs will get higher. Plus, with the massive forced unemployment, we'll likely see a large movement of homeowners into renters. More inventory will be available, but buyers will be mostly investors with strong cash on balance sheet. Those are the only borrowers banks would be wise to lend at 0% interest. Might even see a drop in loan to value ratio for mortgages (ie prioritizing higher downpayments).

realestateinvesting

dropkilla

t3_fl8nv3

conraderb

fkxi59h

realestatedeveloper

fkxx57h

r/investing, I'm a journalist hoping to get in touch with redditors who bought Iraqi currency as an investment. Any takers?

I'm a journalist with Al Arabiya News, and I'm hoping to interview redditors who bought the new Iraqi currency at any time after the 2003 invasion in hopes that it would appreciate. We could correspond either on the telephone or just on a private message. Edited to add: If you don't want your name to be behind this, that's completely fine. We can always quote you anonymously.

I am holding IQD valued at roughly USD600, at current price. When I invested, I expected the IQD to be replaced by USD parity -- crazy assumption I know. So the cash is just sitting in a locker, and I have practically written off any investment in my books. Let me know if you have any questions. And yea, I'm from Pakistan.

Paul, I tried really hard to bet against the Egyptian Pound in 2012, but I couldn't find a single broker who would allow me to. Those "exotic" currencies are impossible to come by unless you live IN the Middle East or are a big time hedge fund manager with access to illiquid markets and Arab currencies. Most FX brokerages will give you access to the mainstay currencies...USD, EUR, CHF, JPY, etc... With IQD, it's foolish to buy their currency because you'll have a very hard time finding a buyer who will give you a fair price for it right now. Who the hell wants to buy IQD? Not me...not banks. The IQD is a worthless currency no matter how you slice it. Gullible contractors and servicemen bid it up in recent years on the hopes of revaluation, but they're fucked.

investing

paulcrompton

t3_2ujffv

rogueonomist

t1_co91je2

co91je2

AQUA2

t1_co97xqp

co97xqp

Anyone used a CFA?

Hi all, first time caller, long time listener. I was wondering is anyone had any good/bad experience working through a plan with a CFA? Currently my savings is 100% on autopilot; money automatically deducted and basically split into four Vanguard funds (401k first, then individual account). The only manual work I do is once a year contribute to my IRA. In ~2 years my income will be jumping ~$200k. I'm probably willing to start doing some diversification to ~10 funds, tax-loss harvesting, and yearly rebalancing by myself. Do you think a CFA will bring anything extra to the table given the amount of information online these days? And is ~$300-$400k a year sufficient income to start doing "funky" tax/savings things rather than just dumping money into a bunch of index funds, or is that still just the level of a high-end W2 high-tax schmo? EDIT: FYI: The reason for the 4 fund Vanguard approach is that it seems like the easiest (laziest) way for me to reach FI (and maybe RE depending on how I feel). I do really like that basically all of my contributes go to my wealth (i.e. super low fees), but I didn't choose it due to some die-hard principle, only that it seems a simple and sensible way to save/grow. Thanks for all the CFA/CFP feedback btw.

Pretty sure you mean financial adviser, or CFP (Certified Financial Planner). CFA (Chartered Financial Analyst) is a whole different ballgame. CFAs often work in portfolio management and securities analysis rather than giving financial advise.

Do you really think you want to spend the kind of time it takes to effectively manage the tax loss harvesting? Wouldn't using Betterment or WealthFront be easier and more productive?

financialindependence

seriouslyandy

t3_40ina6

MaxximusDecimus

cyuhvsf

DialMMM

cyut5kg

$50 electricity bill house of 7

I live with 7 roommates. The one in charge the son of the landlord is demanding I pay $50 extra. My room is always cold. Like maybe a couple of degrees warmer then outside. He says everyone pays the same. If that's true than the electric bill is $350. That's outrageous! Would it be out of bounds to ask to see the electric bill? What should I do about my room. I mean I have to sleep with 5+ blankets at night to keep warm. I don't know what to do. I live in Washington state btw.

I think it is perfectly reasonable to ask to see the electricity bill and to ask how they are deciding who pays what. They should be able to explain what they are asking you to pay.

Definitely ask. That's not out of line depending on how the house is built, how your roommates use electricity, and the type of heating. Are people using space heaters? Absolutely make him show you the bill before you pay. We had a guy in my frat house pad the bills for beer money. We also had some legit 750 dollar gas bills in the winter. People left windows and doors open. Do your homework.

personalfinance

karasu667

t3_7qi7cw

canadianhealth

dspdo3i

kofpsp

dsr3fyf

I paid off my car 15 minutes ago. Should I drop full coverage?

The car is a 2015 VW Golf with 67k miles, worth $10,500. (I'm fighting the urge to buy a new car right now!) I'm currently paying $850/year for full coverage, so around $70/month. If I drop it to liability only, the cost will become negligible - less than a netflix membership. My car before this one was a 2012 civic that I bought cash and liability only coverage on it was -$50 (negative $50 - allstate paid me $4/month to insure my civic). Question is, what do I do? I know $850 is technically less than $1,000 so the numbers say keep full coverage for another year, but I'm wondering if it's worth the risk. What would you guys do?

With a 2015 it would be wise to keep full coverage on it until it was about 8-10 years old. It would be foolish to drop it down to liability. You hit a deer? No coverage. Someone steals it? No coverage? Someone hits you but has no insurance? No coverage. Keep full coverage! This will help to protect your investment. Congrats on paying off your car btw! Your rate of 70 a month is really good as well.

Easy. If the car is destroyed or stolen tomorrow, can you just go out and stroke a $10,500 check without feeling it? If so, go ahead and drop full coverage. If not, keep full coverage on the car.

personalfinance

galendiettinger

t3_8angjc

jumbledfiasco

dx00ut7

rld14

dx0lodr

How can I pay the absolute minimum for the insurance for my first car?

Currently saving up to purchase my first car, I have to pay for it 100% on my own so I'm planning on buying a beater, looking to spend about $3000 on a car from Craigslist... wondering what I am going to end up paying after I register my car, is there a way to pay the least amount possible?

Cheapest insurance doesn't bode well for financial planning. Liability coverage isn't something that you want to skimp on - I've seen too many horrible claim situations. Depending on your state laws, minimum liability may be something like 30/60/15, which means you only have 30k to go toward medical claims of someone you injure. I would have a min of 100k there, preferably 300-500k. You don't have to me a millionaire to be sued like one. Typically the price difference between shitty low levels of liability, and the higher liability is a few bucks each month. That said, if you have no lien on the vehicle, you aren't required to have comprehensive (glass, deer, vandalism, fire, theft) or collision coverage. I would keep comp coverage if you are in areas where deer/glass/theft/etc are high (honestly I would keep it on any vehicle - you never know when you're windshield may break) but collision? I wouldn't if the KBB isn't much more than 2k since it's likely a vehicle would be totaled in collision situations. Check with a few companies/brokers. See what discounts are available. Bundle home/renters with auto. All can help bring down price source - insurance agent

There are several factors that play into the insurance rate: Age, driving record, deductible, coverage. You can only influence two of those (deductible and coverage). If you're picking up a 'beater' then I am not sure you want to skimp too much on coverage in case something goes very wrong. Other than that, you should just shop around until you find the best deal.

FinancialPlanning

skrrskrrpewpew

t3_5z50yf

fae925

devh5ji

pokotok

devd1xg

Contracted through recruiter to work 6-12+ months, when should I start looking at other jobs?

I'm working through a large recruiting agency and the position that i'm working for now is a 6-12 month contract with possibility of extension (some have been here 2 years under the same contract terms with the same recruiting agency). The company I work for has a great atmosphere but they have not hired a contractor for a long time so I don't think that's an option for the future. I've only been here just under 2 months and I know i'm doing good work. From what i've gathered almost all the contractors have been here more than a year and it seems like everyone is comfortable with staying here more than the 12 months listed in job listing (meaning if you don't underperform there is years worth of work but nothing is guaranteed). When should I look for another job? How much notice might they provide? These are the biggest questions, i'm not sure if I should ask my recruiter (who is wonderful) because of any implication it might have so i'm looking for outside advice first. Getting a job in my field might take some time, I was very lucky to find this job because it is something I enjoy doing but is not directly related to my degree. I WAS looking for a job using my degree for more than 3 years and found nothing of interest so I used my skills and some particular classes I took to beef up my resume to be more suited for my current job. Thanks for any advice you can offer. I'm posting in PF because my biggest concern is the contract ending and my finances becoming strained.

If you're concerned there's no reason not to start looking from Day 1. It's easier to find work when you're employed, and less stressful if you're being selective. Be professional, don't do it on their time, and give notice when you leave.

Do you mind sharing the industry? A lot of recruiters for instance start off as contractors and then become full-time/exempt. It kind of matters from a career trajectory standpoint. Otherwise, start looking immediately. You can terminate before the end of a contract in most cases - the only punishment being any kind of clawback clause in your contract/a possible negative review... No one can fault you for looking for a full-time job or full employee status.

personalfinance

canofpotatoes

t3_3k8mhy

Baconality

cuvjtgm

greygray

cuvv589

Getting married and considering buying a house - too much too fast?

First post ever! I made an account so I can get some unbiased financial advice. My fiance and I are getting married in May and paying for the wedding ourselves. Total wedding cost is $50k; we have already paid $20k, so next month we will need to pay off the remaining $30k. We have a combined $35k in the bank right now, with no credit card debt. My fiance and I collectively make $115k (pre-tax). We are considering purchasing a house for $300k. We need $10,500 for the 3.5% down, and probably an additional $5k in closing costs. Including mortgage, interest, insurance, PMI, and taxes - the monthly payment would be $1792/month. We currently rent for $1500/month and our lease is up in June. My question is whether buying this house is a sound financial decision. We would have to put some of the wedding expenses (a little over $10k) on our credit cards (zero interest until next Feb), and try to pay them off with wedding gift money and responsible spending over the next year. I know this is a lot of information, but any input and advice would be greatly appreciated. I never thought we would be making so many important life choices in such a short amount of time!

Hold on a second here! You aren't seriously spending more than 6 month's take home pay on a wedding and then only paying 3.5% on a down payment. You realize the biggest reason for divorce is finances and you two are seriously starting your lives together in a crappy place. It makes so much more sense to do a $10,500 wedding and a $50K down payment than what you're doing. Not only are you spending $50K, but you're putting some of it on a credit card, that you may or may not have paid off before interest kicks in. You two need to stop thinking of your fairy tale wedding and bring it down many notches so that you can afford it. Putting a wedding on a credit card is not being able to afford it. Relying on possible cash gifts, isn't able to afford it. You need to have actual cash saved for it and still have plenty left in your security funds to afford it. You two are seriously jeopardizing your futures together by having 6-8 hour celebration that comes in at $6250-8333 an hour just so you can have a fairy tale wedding and impress your guests. If you two truly love each other, don't put this much financial strain on your marriage.

The question is whether you should be putting 50k into a one time event that lasts a weekend or something you plan to own and live in for a long time. IF you feel that 50k on a wedding is necessary/unavoidable, then I'd continue renting until you a) have the wedding debt paid off completely and b) have a larger down payment for the home. The mortgage insurance on FHA loans last for the life of the loan, which adds up very quickly and serves no real benefit to you as a borrower.

personalfinance

rootbeer_squareglass

t3_3420np

the_los

t1_cqqi5hj

cqqi5hj

BenSavageGarden

t1_cqqjkvo

cqqjkvo

I do long term care for an elderly couple and they're getting to the point where they need overnight care. I've been asked to name a desired wage for overnight shifts.

I really care about this couple and don't want my price to stand in the way of them being able to stay in their home vs. a nursing facility (staying home has always been the goal) I currently get paid $18/hour as a contractor to cook dinner, med reminders, change clothing and chores. How do I figure out what my desired wage is for an overnight shift?

You need to sleep there for a week on a trial basis first. They may sleep like babies and it'll be the easiest job in the world or they may be up all night turning on the oven and trying to burn the house down. You need to know which one it is and price accordingly.

Nurse here! Shift differential is usually about 8-15% more for overnights. When I made $27/hr I got a $3/hr additional shift differential for overnights. That diff was paid for the ENTIRE shift. As an NP I just entered into a contract for 104k per year base. If end up on an overnight shift I will get 10k per year more. If they want you to take less overnight ask them if you will be allowed to sleep and if they waive liability for anything that occurs while you are sleeping. Get it in writing. (They won’t) Are you a CNA? Are you working with a group of CNAs? Kinda “off the books” cash pay? Because you’ll need someone to split this with. I don’t ADVISE this kind of setup legally, but I know it happens and frankly it’s a god send for families. Home health aids are paid so poorly and so undervalued. My sister was working in this kind of setup. She and a group of girls were working together as “sitters” and sharing jobs through word of mouth. The only thing I didn’t like about it was that they didn’t feel empowered to call docs, so often sis would call me if it seemed like something was wrong. It worried me to put in my two cents and assume some liability. BUT, families that otherwise could not afford care through an agency (too wealthy for Medicare too poor to hire an agency) are getting in home help.

personalfinance

mberanek

t3_f26fxq

limitless__

fhazydg

dualsplit

fhdu43i

My father passed and left me $3,700, how can I use it to invest in myself to increase my future income?

My father passed on April 8th and my mom just flew out to Albuquerque for the weekend. She casually handed me the $3,700 check that I get for my dad dying (which feels pretty f'ing weird). While I really just wanna deposit it somewhere and never think about it again I know that as a 2014 college grad with a B.S. in mathematics and a $37k a year job in Quality Assurance at a non-profit I have a lot of room to grow my future income. So I specifically want to explore what it might look like to invest in myself instead of in the stock market or a CD or something like that. Ideas? If it helps I live in New Mexico, have an SO, don't want kids, have mucho student debt and a few thousand in credit card debt.

You'd want to invest in your future self by reducing your current liabilities. Throw all of it into your credit card debt. Once all of your high interest debt has been taken care of, you can either put it into your student loans or a roth IRA

First off, I'm sorry for your loss. To be candid, there aren't many direct uses of that money to do much in the terms of securing future income, it's just not enough. However, it can jump start some good habits. For example, use the money to pay off any existing credit card debt. Once that debt is paid off, budget to insure you DON'T carry a balance again. Take the money you WERE using to pay your credit card and invest THAT in a tax-sheltered retirement plan (IRA, 401k, etc.) That regular monthly deposit (even if small) kept up for a long period of time will do FAR more than a one time infusion of a relatively small amount of cash.

personalfinance

abaxtastic

t3_6dmg7q

CarlinT

di3tpqj

mathteacher85

di43z7o

What's the difference between a 15y mortgage and a 30y you pay off in 15y?

I know you can save a lot on interest with a 15-year home mortgage versus a 30. Can I get the same deal by paying off a 30-year note in 15 years?

A 15-year mortgage paid off in 15 years is much cheaper than a 30-year mortgage paid off in 15 years, precisely because 15-year loans have lower interest rate than 30-year loans. First some background info on how mortgage payments work: A typical monthly mortgage payment consists of four components: Principal, Interest, Taxes, and Insurance (commonly called PITI). The Taxes and Insurance are independent of the terms of the mortgage, they're a function of the property taxes charged by your government and the home insurance required by your lender. The TI part of your mortgage payment (Taxes and Insurance) changes from year to year as the government raises property taxes and as insurance requirements change. The Principal and Interest are specified by the terms of your mortgage. The PI part of your mortgage (Principal and Interest, combined) is the same every month, from the first payment to the last. The PI part of your mortgage starts out being mostly Interest and just a little bit Principal, and the balance shifts away from Interest and towards Principal over time. Ok, let's do an example! Play along using the mortgage calculator here (ignore the sliders at the top, work with the form under the graph): Set the property value to 200,000, the down payment to 20%, the interest rate to 3.5%, and set the term to 30 years. This results in a monthly payment (PI) of $718.47. Click on the "monthly table" button to see the breakdown of your bills (for each year). The first bill consists of $466.67 Interest and $251.80 Principal. Each bill after that has slightly less Interest than the one that came before it, and slightly more Principal, but they always add up to $718.47. The total interest cost of this loan (assuming the default repayment schedule) is $98k, about 2/3 of the entire $160k Principal that you borrowed. Now change the term of the loan ("Years" in the form) from 30 to 15 and change the interest to 2.75%. The monthly payment jumps to $1,085.79 (ouch!), consisting of $366.67 Interest (yay!) and $719.13 Principal (yay!). The total interest cost drops to $35k, about 1/3 of the cost of the 30-year loan. What happens if we now switch back to the 30-year, 3.5% loan and pre-pay the Principal? Click the Prepayment button at the bottom of the form, and make the monthly prepayment $367.32 ($1085.79 - $718.47), starting in month 1. This results in a monthly PI payment of $1085.79, just like in the 15-year loan, but look at the breakdown between Principal and Interest. You're paying $100 more in Interest per month, and a corresponding $100/month less in Principal. So it will take you longer to pay the 30-year loan off, even though you're writing the same-sized check every month. And you'll pay more total interest: $49k in the 30-year, 3.5% loan with prepayment, vs $35k in the 15-year 2.75% loan. The question you have to ask is: Is it worth $14k (or more!) over the life of the loan to have the option of only paying $719/month, instead of having to pay $1085/month?

At the same interest rate, 15 vs. 30 year is essentially the same. See my [spreadsheet]( If I did something wrong, let me know. I compared a 15 year making expected payments vs 30 year making an extra payment of 525 per payment. The total interest is essentially the same.

personalfinance

hardyintl

t3_33jaal

tangly_ganglion

t1_cqllxr7

cqllxr7

tell_tale_knocking

t1_cqllznb

cqllznb

Tax implications of selling high and then buying back in at a dip

Unable to find the answer after looking online so I figured I would ask you guys. Here’s an example scenario. Let’s say I own a stock that I’ve had for less than a year. It’s now at an all-time high and I’d like to sell and get back in when it dips at a later time. If I sell now I’ll be taxed at my tax bracket rate, let’s say 25% for arguments sake. Won’t the stock have to dip drastically in order to make this strategy worth it? Wouldn’t just holding through the dip make more sense financially (from a tax standpoint) if I was confident the stock would rebound? if I choose to hold and sell at a later time (after one year of owning the stock), let’s say the tax rate would be 15%. So based on that, selling the stock before one year to buy back in during a dip only makes sense if the stock falls more than 10%, and this doesn’t account for trading fees etc. Am I missing something?

You are correct that it depends on the volatility and size of the swings. Take this example using $4.95 per trade commission and your given tax rate of 25%: &x200B Buy 100 shares at $1 and sell at $1.20, then buy the same 100 shares back at $1.15 and sell at $1.30. Your profit is $6.45. If you held the same 100 shares you bought at $1 and sold them at $1.30, you profit is $12.60. As you can see, when you add the double commission and double taxes on scenario 1 you are definitely not making as much as you could if you just let the winner ride. &x200B If the swings are larger, it can become profitable to sell and buy the dip. Buy 100 shares at $1 and sell at $2, then buy the dip at $1.5 and sell at $3. Your profit is $167.70. If you simply held the 100 shares at $1 and sold at $3, your profit is only $140.10. &x200B It is possible to make money this way, but more often than not, you are probably over trading and not actually profitable come tax time.

Don’t forget wash sales. After selling at a loss, you cannot repurchase the same type stock within a month or the loss loses tax-deductible status. Sell when you want to put something down for a long time and reinvest elsewhere.

stocks

ormdo

t3_b43q0h

Ghost4113

ej3ycci

InternetDegenerate

ej5nrt4

Getting on same (budget) page with spouse who does things differently

I love this subreddit and found several helpful ideas searching, but still was left with some questions. Some of this might be better answered by r/relationships; I get that. Here goes. I work, full-time, and my wife is currently a stay-at-home wife working on some volunteer stuff and figuring out what her next step is. She's never made a lot and since we've been married, I've been the primary breadwinner. My income is well above median household income in our area, so I feel that we are fortunate that she can stay home. I've been using YNAB religiously for the past year and trying to steer us towards a better budget lifestyle. However, she hates YNAB—or any kind of electronic budgeting solution—and really has been resistant to my attempts to put in place a budget. Conversations about money quickly devolve into fights and she hates talking about it. However, she loves spending it, and $25 here or $50 there quickly adds up to several hundred dollars a month that was not planned for and is not going into our savings or moving us towards our goals. I feel like I am continually playing catch-up, stealing money that was allocated to savings to cover the things she decided to go buy. We can't separate accounts since she doesn't have any income, and its wearing me out to see the money I'm working hard to earn not move us farther forward towards the goals we've mutually set. It's also really irritating to see her buy all this stuff for the house or herself that she "wants/needs" and not be able to buy myself the things I'd like because I'm having to make up for her expenditures. TL;DR: Stay-at-home wife hates YNAB or looking at budget categories & numbers; can't stop spending. Any advice?

Other than splitting accounts or giving an allowance there isn't any real way around it. Sounds like she's unlikely to change as there has never been any consequence to her actions, if anything your behaviour, as sensible as is it, only enables her further.

What you have isn't a financial problem, but a relationship problem: disagreements over finances are one of the leading causes of divorce. My recommendation would be that both of you see a marriage counselor as soon as possible. If your wife isn't willing to do that, go by yourself.

personalfinance

Rice1319

t3_6hoeju

Honey_Rustler

dizurrx

fizzmore

dj0a1jt

I want to make a career shift, is it feasible?

Hello, I'm 33 years old, I work in tech, I have a masters, I've been doing my particular skill for over 15 years. I'm not burnt out per say, but i'd like to try something different in tech. I want to get into development, particularly mobile development. My plan is to save money, pay off all my debts, do some traveling, and when I return enroll in a bootcamp. Is this dumb, or should I do it?

Whether this is a good move depends on many things: How much do you currently have saved? Both retirement/non-retirement. How much do you plan to have saved? Do you have debt? What are your current expenses? How much do you plan to spend travelling? Do you have anybody who depends on your income? How much will the bootcamp cost? What sort of placement rate at what sort of salary does this bootcamp have? Why do you want to do mobile? Trying to change careers is not by itself either a smart or a dumb move. It can be a necessary move, depending on your current situation. It can be a move that is good for your overall life happiness/goals. And it can be a completely disastrous move. Which one it is depends heavily on the answers to the questions above.

I am a web designer and developer. Specializing in frontend. I studied for 1 yr and found loads of work straight away. You probably won't be making much money to start with, but if your talented you could be earning well over 100k in a 2-4yrs. I think your still young enough to get into it at 33. Go for it dude!

personalfinance

throwawayawayforever

t3_3bifxy

ElementPlanet

t1_csme6qc

csme6qc

beormalte

t1_csmj2q4

csmj2q4

How to get my shit back together

Hey Reddit, I recently came into some money (~10k) and need help figuring out what to pay off and when to pay it off. I climbed into a hole of debt and luckily should be able to climb my way back out of it with both my monthly income and a few grand of the monies. I have no savings so I’d like to save $7500 leaving me with $2500 to figure out my debt with plus any extra I have for the month until I am finally out of the hole I dug myself into. So, here’s the breakdown: ~$2000ish - Monthly income $1252 - Required expenses (Rent, utilities, food, gas, etc) Leaving me with about $748 extra a month. I currently owe: $950 - CapitalOne Balance $1300 - Payday Loan 1 $1131 - Payday Loan 2 $686.07 - Payday Loan 3 $500 - Parking Tickets ~$19k - Student Loans So far I have barely been able to make the minimum on my Capital One card and student loans due to the Payday loans I took out (Definitely learned from my mistakes with those). My credit score plummeted (505) due to the fact that I haven’t been able to make a payment on my student loans since June. I recently applied for income based repayment and if approved will get my payment from $108 a month to $56 a month. As of right now, I owe about $800 for a minimum payment on my student loans. I guess what I need to figure out is what I should be paying and when in order to get my credit score up and so I’m not letting the Payday loans accumulate too much interest. Thanks in advance, Reddit. :D

You must get rid of those payday loans immediately; they are so damn punitive. Then the capital one card, then the parking tickets. Moving forward, keep two months income in a separate account and chip away at the student loans. This separate account should only be used in an absolute emergency; nothing else. Promise me one thing; never ever ever again get a payday loan and never carry a balance on a credit card, and stop getting parking tickets... Good luck.

The order of business in my mind would be (in order of importance) 1 - Pay off all three payday loans NOW. 2 - Catch up on your students loans. 3 - Pay your parking tickets (no point risking further action, also, stop getting parking tickets you doofus) 4 - Pay off you CapOne balance Save the rest - still left with about $5k - you should then be easily able to save back up to the $7,500 you want to keep in savings. You're flushing interest down the drain (mixed metaphor much!).

personalfinance

JustALesbean

t3_9t5tfc

AxeMcFly

e8tv82w

Bazlow

e8uvgt9

Student loan interest rate is suspended, should i dump my normal monthly payments to the highest interest rate loan?

i have loans with navient and i pay about 250/month to my loans spread across 7 loans. one loan has an interest rate of 6.8% with a balance of 1,000. should i disregard my other 6 loans and put my $250 to that 6.8% loan? until the government increasing the interest rate again

Yes, in the long run that is the best option. Make sure you have a bit of a safety net first. But, pay all loans down first until you have to start paying student loan again

Is this really feasible? Assuming all loans are federal, don't you still have to pay the minimums on each loan, but they just aren't accruing interest? Or are you going into forbearance?

personalfinance

spellbadgrammargood

t3_fq9l34

PandR1989

flpbcnv

mcogneto

flr9n8j

Why does my financial advisor keep trying to sell me universal life insurance by claiming it's a good financial investment?

Background: I don't need life insurance, I am in my late 20s, no kids, no wife, no mortgage, 16k in college debt. To top it off I have a group life policy through work that will cover all my debt and funeral expenses if anything were to happen. He keeps saying that its a great investment because it has a lot of tax benefits, a guaranteed growth and the cash value that I can borrow against the policy anytime I want. So he keeps pushing saying that we should start out at a $25,000 policy which would be $8 a month but i contribute more to get the cash value immediately. My thoughts: if I put in $100 and have to pay $8 a month, that's an 8% fee im paying to get a guaranteed 3%....aka I loss 5%. Maybe I don't get it... help

Because permanent life insurance is a great investment... for the person selling it. See the FAQ entry on [life insurance]( You need to stop paying this salesperson claiming to be a financial advisor. They are only out to convert your money into their money.

Because your financial adviser works on commission, rather than solely on fees. Why are you using this person? At the very least, seriously consider moving your IRA to a company that charges very low fees, like Vanguard, and making new investments with someone other than that "adviser". But for mutual funds that aren't in tax-sheltered accounts, switching to other funds can cost you a hefty tax bill.

personalfinance

papawells225

t3_42u7oh

aBoglehead

czd4vds

larrymoencurly

czdvyww

What do I do with $40,000 worth of stock?

About a month ago, for my 21st birthday, my grandparents transferred a trust containing about $40,000 worth of stock (all from one company) into my name to do with however I pleased. I have full ability to sell every share or leave all of it as is. I know that I am a very lucky person to have been raised as wealthy as I have and I want to make the absolute most of it now that I'm on my own. I'd love to hear everyone's advice on investing and other money management advice.

Sell the stock, save $1,000 cash as an emergency fund in a saving's account, take a $1,000-$2,000 to spend on yourself (something you want, a trip, etc.), then transfer the rest to an account at Vanguard or Schwab and invest it all into a no load, no fee, low expense ratio (.03-.05%) total stock market index fund and leave it there to grow.

What is that, like $120 in dividends each quarter? Yesh. Sounds like you're well off so I'd save enough to make sure you can max our your Roth IRA for the next few years. Try investing the rest in ways that you think are wise after doing a bit of research. Also, I'd avoid talking about what you do with the money with anyone else in your family, especially your grandparents. It's yours now. Don't let other people pry and influence you to do something you don't want to.

personalfinance

highschoolhero2

t3_6uj21l

dystmrx

dlt2c5k

Grand-Warlock

dltn7dc

What happens to the mortgage if I die? Wife is not on it.

So the mortgage is in my name only, but now I am concerned what happens if I die. Her name is on the title and she would be able to continue payments at the current rate. However, she had a foreclosure about 5 years ago so her credit will still be damaged for ~2 years. Would she be able to 'take over' the mortgage or would it get called in and then either she has to refinance (if possible) or sell?

Life insurance for enough for her to pay off the house and depending on how young you are enough to either get her to retirement or until the kids are old enough for her to retrain and get back into the workforce

If she keeps making the payments, the loan servicer isn't even going to notice. If she makes the mistake of telling them, they make want her to refinance to put it in her name... using her credit, income, assets, etc, which it sounds like would be a bad thing.

personalfinance

huevosgrandote

t3_33a8vp

Nosdo3

t1_cqj2ell

cqj2ell

aardy

t1_cqj4jrq

cqj4jrq

Debt for a young adult. Input?

I'm 24, I make right at $30K/yr. Live in the USA in a small town, low cost of living. My necessary expenses are silly low. I don't have to pay house payment or utilities thanks to my job, and my truck payment is under $300/month. Off the top of my head, I think my remaining balance on the truck is right around $10k. I just bought an engagement ring for around $7,400, which I financed. I'm looking at a boat for $2,500 that I would choose to finance through an unsecured loan at 6-10% interest. I have a few thousand dollars in a savings account. I have been paying about $200/month into my savings account. Now that will be more like $100 into savings and $200 onto ring debt. I don't have any stocks or bonds or C.Ds or anything like that. I really just want to get a feel for how my situation stacks up in terms of debt management. I have alot more debt than I ever have, but I have been lucky to not need debt. College was on a scholarship and I don't have (and won't need to for a couple decades) to own or rent a house. Is that alot of debt? It feels manageable to me but I'm interested in others' input. When do people find themselves caught up?

So you have a tiny emergency fund, don't make a ton of money, haven't put anything towards retirement, and just financed a piece of jewelry that cost more than a decent car but has almost no resale value. You've made the mistake of thinking that everything's okay as long as you can handle your payments as they are now. Unfortunately, those loans don't just go away if you lose your job or get a big medical bill. Putting that money into savings instead of paying of loans for things you don't need would be the much wiser choice. Debt management is for poor people (if you owe more than you own, you're poor) wealth management is for rich people. If you want to be as wealthy as showing off a 7K ring implies, you should probably work on getting out of debt.

When you say low cost of living and low expenses, I'm thinking ~$600/month is reasonable. Add $300 for your truck payment, and you are at $900/month expenses. Right? Your income after tax should be about $2000/month, so you have $1100 left over. I'd say forget the boat, pay off the ring and truck in the next year and a bit, then start saving it all. Actually that's a lie. My real advice is to return the ring and sell the truck to get yourself out of debt, because your debt is over-the-top ridiculous and you're setting future-you up for a world of pain. But I doubt you'll listen to that.

personalfinance

rgw06001

t3_1g2tiv

CrashCourseInCrazy

t1_cag7ybn

cag7ybn

cecilpl

t1_cagejie

cagejie

Roommate moving out unexpectedly

I just (as in 13 days ago) moved into a 2 bedroom apartment with my coworker and his girlfriend. I found out that my coworker put in his 2 weeks notice and is going to move out of state for family reasons. He hasn’t told me yet. We moved in together to save money but now I’d be spending more money than before if I stayed in the new apartment. My base salary is 24k. Roughly 30-32k with commission. I previously lived in a dump of a studio apartment for $445 with roughly $110 in utilities (electricity,WiFi, etc). With my coworker leaving, my part of the rent would jump to about $650 if my other roommate doesn’t leave. I don’t really have a full estimate for a new utilities bill because I’ve only lived in the new place for 13 days. I’m in Tucson, Arizona which has a pretty low COL but I’m still freaking out. I don’t know what I’m going to do. I fear I’m going to be hemorrhaging money. TL:DR: Moved out of a cheap studio apt to save money with two roommates. One roommate is leaving less than a month into new lease. What can I do? EDIT: EDIT: I was going to let him tell me tonight but I’m confronting him tomorrow (Friday, 9/14). AFAIK, his GF is staying in the apartment. Also, his last day with us is Oct 8. So roughly 3 weeks. Whether he’s lying or not about the exact reason he’s moving doesn’t matter, right?

EDIT: I didn't realize this is a 2BR. OP needs to also find out ASAP if the GF is going to move out. If so, maybe OP could find a couple to move into the empty room. Confirm with roommate that he is leaving and get timeline. Find out ASAP if GF is going to move out. If so ... Start interviewing for new roommate(s). It is in departing roommate's interest to make showing the apartment as easy as possible. Tell outgoing roommate you expect him to pay rent until you get a replacement. Talk to landlord about being able to create a new lease when you find the new roommate. If departing roommate doesn't pay, then you either chalk it up or sue in small claims. Ask incoming candidates what their long term plans are, and whether they can commit to the term of the lease.

If the lease is in your name I hope you got a deposit from the co-worker Do you have a written agreement with him specifying that he is agreeing to stay for a year?

personalfinance

Mr_Irrelevant24

t3_9fim8l

wijwijwij

e5wpr4d

dwinps

e5womld

What’s best method to calculate value of stock ?

There’s so much methods there. I wonder what /r/stocks use.

Not exactly what you were asking, but look into Joel Greenblat's magic formula. Establish a minimum market capitalization (usually greater than $50 million). Exclude utility and financial stocks. Exclude foreign companies (American Depositary Receipts). Determine company's earnings yield = EBIT / enterprise value. Determine company's return on capital = EBIT / (net fixed assets + working capital). Rank all companies above chosen market capitalization by highest earnings yield and highest return on capital (ranked as percentages). Invest in 20–30 highest ranked companies, accumulating 2–3 positions per month over a 12-month period. Re-balance portfolio once per year, selling losers one week before the year-mark and winners one week after the year mark. Continue over a long-term (5–10+ year) period.

The stock market is very unreliable and unless you go with low yield and reliable blue chips; stocks that increase in value slowly over time. Many investors assume they'll find another amazon, apple, or twitter only to be disappointed because these are "valued" largely by hyperbole and some fund manager pushing them for extra incentives. If you ask me, the whole market is fixed and predicated on BS. Go into real estate instead.

stocks

Melyche

t3_6xltvs

OSUBedbugs

dmgwexi

fdfhjyff

dmi5cjv

Need Help deciding what next before New baby arrives!

Hi everyone. My wife and I are expecting our second child in 4 months. Currently have a 4 year old. We're already strapped on funds, really strapped. We're trying to figure out what our best choices are right now for us. We have no saved income. My wife and I each make around $1400. take home. Our rent is $880. per month and our 4 year old's daycare is $174 per week. Phone bill $100. per month. Electricity $100. per month. Water and Trash disposal currently included in rent. My wife has really good Blue Cross Blue Shield insurance through her City government job (taken from every check). Car Insurance is $200 every month on our small Honda. Gasoline for the month around $180. (About 6 tanks) The situation: My wife and I can't afford to put our newborn in daycare, nor want to. I would in a heartbeat leave my job to stay home once the child is born, but if I do so right now, we won't be able to make our bills. I am a graphic designer and currently employed through a local business and would love to start my own business, but don't have anything. I don't have the computer, the clients or startup funds. Nothing. What are your thoughts on what we should do? Our thought was to have me get rid of my day job, figure out a way to move into low income housing and work from home in the daytime and get an evening job that takes place after my wife gets home. There in lies many challenges though, income for first, last and security in the low income areas and the money for paying bills that we don't have if I quit my day job. With all sincerity, I thank you all for your responses in advance.

OP I’m sorry but you guys cannot afford a stay at home parent. If you quit your job and you are only getting $1400/mo in income... after all your bills you will only have $120 leftover every month not including gas for your car or food. Can you live off of $120/mo for food and gas? I doubt that. Clearly you guys did not think this through before getting pregnant again but I digress. You both need an income. If you can find a job (Target/Starbucks/grocery stores/restaurants/etc) that can give you hours opposite to your wife’s schedule then that’s what you should do and not quit entirely and stay home. Having a stay at home parent is a luxury most families cannot afford - yours is one of them.

First, congratulations on the new one. As for suggestions on help, I think you are on the right track. Obviously, first scour your spending for any fat to trim (eating out, going to movies, etc.) although your budget seems tight already, so there may not be much. The strategy that you and your wife have come up with seems most ideal. It's rare to quit everything and start a company from nothing, so if you are serious about starting your own business then this can be the push you need. I'd look at evening or night work even if it's a pay cut and then start working on GD contracts as you bring them in. Try to keep your focus on the GD work, not whatever your night job is (warehouse work can be good as you get some physical labor in). Also, if you go this route it's imperative that you do at least a little GD work so your skills stay up to date, so if you don't make it as self employed, then at least you can transition back into the field once the 4 year old can go to school full-time. This lifestyle can be hell so you need to be focused on making it short term for your health, career, and marriage. As per the low cost housing, the great thing is that you can move frequently. I would say go for the low cost housing as a stop gap until your finances get better, but only you know if it's truly safe enough so trust your gut if you have a financial choice.

personalfinance

CallMe_Josh

t3_7v7dt6

thebigFATbitch

dtq3eul

bruslance

dtq47e6

Since IRAs have a $5500 limit for contributions, is it a good idea to contribute the $5500 in one lump sum just to get it over with?

Just wondering. EDIT: As a follow up question: My IRA is currently in a mutual fund (I forget the name offhand, but there's a future date in the name...one of those retirement funds Fidelity offers with low fees that I am told is just fine for a guy like me.). Is it a good idea to keep investing in that fund, or pick another one? It's frustrating to me because I have a hard time understanding much of a difference between each mutual fund.

If you have the money, then yes. If you don't have the money yet, and need to take it gradually from your pay during the year instead, that's fine too.

To answer your second question, those target-date funds are great, as long as the expense ratio is small enough. Compare yours to Vanguard's, who typically have low of not the lowest fees.

personalfinance

I_am_a_goddamn_liar

t3_5mrbqe

DanLynch

dc5ppje

yetrident

dc6sn4y

Did we miss the bottom?

Held off on buying, now everything's rebounding. Lost out on short-terms gains of 20-30% on a lot of blue-chip stocks. For the record, I was looking at BMO on the TSX (Canadian Bank). It fell 46% and has rebounded 18% already (was 25% for a bit) from low a week ago. Also pays dividend of 6.16%

If we did why are you asking the group of people that got it wrong? Don’t get your advice on reddit. This sub is full of doomsday fetishists and confirmation bias.

I have some pretty low limit buy orders sitting out there. If we double bottom then I might get a few. If we just go up from here, I'll be happy too. Nothing wrong with extra cash in these uncertain times.

investing

disposable35345

t3_frxtd2

shibbledoop

fly9gq8

PHXHoward

flz8nhr

Credit Card question, should I even get one?

So I was going to post the question below, but then I read the FAQ (good for me right?) and I am wondering if what I was planning on doing was even a good idea. Should I even bother getting one? We are going to be doing a Re-Fi on our mortgage soon, should I wait till after? A few years ago I was in bad shape financially, I had a ton of CC debit, so I did debit consolidation/management. I did not do the lower amount route, I just made payments to the consolidation folks. I also, under their requirement/advice canceled my Cards. I paid off all the debit owed a year ago when I bought a house with my wife. She has 1 credit card with a small balance on it. I now want to get a card for emergency uses, also thinking of doing a balance transfer from her card to help with paying off that balance. My question is is there a good place I can look at different cards to compare to see which one would work for my needs? I don't want an annual fee, and I want as long as possible time for no interest on the balance transfer. I know that there will be a percentage charged on the transfer but that will be far lower than the interest we are paying right now on her card. Thanks!

You're looking to shuffle debt around after just recently getting out of major cc debt? Sounds like a bad idea to me, personally. With that in mind, nerdwallet.com will be the place to go to compare credit cards. You may not get approved for credit cards though if you've gone through consolidation. Not 100% sure on this.

I have three cards for different purposes. Two of them are high interest with excellent cash rewards. I use them for normal expenses and pay them off every month. The third is a low interest card from my credit union that I keep as a line of credit for emergencies. If I end up burning through my emergency fund, I have an extra $5k I can borrow at a 7% interest rate immediately. It sounds like you are looking for the second kind of card, in which case I recommend checking with your local credit union to see what they offer.

personalfinance

tominsj

t3_30e5o0

litecoinminer123

t1_cprkv88

cprkv88

trogdorhd

t1_cprsavk

cprsavk

Sold a used car on ebay, seller paid via PayPal and set up transportation. It's been 30 days. Payment has cleared. Am I still at risk? Can I do anything more to protect myself?

I've been reading all these horror stories online. The guy is in a different state and bought a used car from me for ~$4k. Paid via PayPal. Set up transportation and had the car picked up from me. I mailed him the title via signature required certified mail with tracking. I've been reading about all sorts of horror stories with chargebacks up to 180 days after a transaction and paypal/ebay siding with the buyer. Am I still at risk? Is there anything else I can do to protect myself? Note: I wanted to avoid this risk initially and my post required a paypal deposit + rest of payment in person, but the buyer sounded legit over the phone over many calls, and had a high amount of positive feedback. Now I'm praying I haven't been duped. It's been 30 days.

Move that $4k from PayPal to your own bank. Disconnect all banks and cards from PayPal. Wait out the full 180 days. If there's an issue fight with the negative balance on PayPal.

Isn't the scam that a while after the transportation, he files a claim with PayPal saying that HE didn't pick up the car, so you basically gave it away to some random third party for free? Seems sketchy, but I guess it could be on the level.

personalfinance

LoveOfProfit

t3_7cpn7b

PmMeYourWives

dproqvv

BeeGravy

dprt7jq

Will have to go to small claims court to get our deposit back. What can I expect.

Long story short, the appraisal on a house we were gonna buy was $30k less than what we offered. The seller wasn't going to come down in price and because there were some other issues that they didn't want to address, we decided to walk away. We had a mortgage contingency in our contract and we got a mortgage denial letter that claimed the collateral was not sufficient. 1.5 months later the seller still didn't release our earnest money and we are left with having to go to small claims court. I'm wondering if our contract and the mortgage denial letter is enough to win the case? Have you guys had the experience of getting your money back through small claims court? Oou broker already tried speaking to the sellers' agent and that didn't help. We haven't hired an attorney because our deposit is relatively low and we probably would pay just as much for a lawyer as we would get back from our deposit... and our agent keeps telling us we have an easy case to win. Our agent is kind of surprised at how difficult those sellers are making it, she said she never experienced anything like this before.

In CA (and I assume a lot of other states) you subject yourself to a possible $1000 fine if you act in bad faith in not signing the cancellation form to order the escrow company to release the deposit. If you have an attorney write a letter, they will typically cite the code that provides for that penalty. I've done this before and have always gotten the deposit back prior to going to court. Highly recommend. But, if you do go to court, DON'T be worried. Small claims is fun!. Before becoming a lawyer, I had to sue two times in small claims for random stuff. You don't have to have a law degree and know all the rules of evidence like you would in large civil suits or in criminal courts, you just show up without a lawyer and tell the judge what happened and provide evidence. Small claims is very chill, just remember to bring ALL relevant evidence (purchase agreement, appraisal report, letter from your lender, etc). The judge will ask the other party for their evidence, such as evidence that you waived those contingencies. If what you posted was the whole/true story, then the judge will rule in your favor, you give that judgment to the escrow company, and they will return your deposit.

Send a letter certified mail depending the deposit back. Personal finance or legal sub will Help you write I it. That may be enough to get your despotic back. If that fails small claims court will side with you as you had a mortgage contingency and clearly couldn’t get approval. Cut and dry you win and done.

RealEstate

vellass

t3_8ftdn2

maxiderm

dy6ecp7

blackh8552

dy6dpwi

Oil barron on the water

Checked out a [tanker]( that can hold 1 million barrels since storage is capped. A rental/charter option would be most prudent and likely could get it at 1-2%/week plus expenses. As crude is trading around ($11.42) per barrel at the time of this post, I'm feeling there's some money to be made here. Now.. anyone know out to captain one of these?

Family friend was oil tanker captain for the 3rd largest ship in the world. He just sits around the house drinking coffee now, sends me videos and photos of ships all the time, want me to go scoop him up?!? He can drive and we can be the crew.

If everyone subbed pitches $20 we can buy and crew this thing, and fill it with oil. If oil goes back to $50 in 2024 our approximate gains will be 30 million. I am so down for this.

wallstreetbets

BusinessCoat

t3_g4ygiz

AvgJoeCrypto

fo08rn3

__jackbutler

fo0ccnu

High Income: Opting out of workplace 401(k) and using IRA with tax deduction

The facts: [edit] dear god people, no employer match. I'm not that dumb. Due to current needs (saving up for house down payment, personal preference to accelerate student loan payout) I only have roughly $5-6k/yr budgeted towards retirement. My work offers a 401(k). I haven't put any money into my work 401(k). I'd prefer to contribute my retirement money into an IRA because my work 401(k) fees are ridiculous. Yes I totally understand that if things chance and I need to contribute more than 5.5k in retirement a year, 401k may be my best bet because higher contribution limits. IRS says for IRA "Your deduction is allowed in full if you (and your spouse, if you are married) aren’t covered by a retirement plan at work." If I "am covered by a retirement plan at work" I make too much money to get a tax deduction from an IRA. So the question is, am I "covered by a retirement plan at work" simply because I have the option of a 401(k), even though I have not contributed a penny to it? Anything I'm not thinking about here? Thanks

Out of curiosity, does your work offer contribution matching? Could it be advantegious for you to contribute to your 401K for the match, then roll over into your IRA for your investments? As far as I'm aware, you're not covered if you don't use it. HOWEVER, if your work is like mine and makes an automatic contribution in addition to matching, you are covered because someone is putting money into your work-sponsored retirement account each year. Think of it this way, if your work offers insurance and you don't take it, you're not covered. But if they offer you the super basic package and offer you the chance to upgrade, you are.

If your company doesn't match, and you have good investment skills, better to use your Ira than the 401k. 401k allows for much higher deductions somewhere around $17,000/year whereas the IRA its $5,500/year max.

personalfinance

[deleted]

t3_2su616

Theta_Zero

t1_cnsusnf

cnsusnf

FehTacticool

t1_cnt4dew

cnt4dew

My Boss sent out contact information to my coworkers and accidentally included my SSN. What course of action should I take?

I work for the intramural program at my university and my boss sent out an email with contact information to all of the other referees. He accidentally left in my social security number. Now all of my coworkers have access to my SSN. I told him about it and he sent an email out asking everyone to delete the attachment. I'm a little on edge about this and have put my SSN into my family's Norton Protection account. What else can/should I do to minimize risk?

I would ask said boss to pay for that Identity protection. As for what else you should do, keep a vigilant eye on your credit report, and if something shows up take action as fast as possible.

First off, your boss is an idiot. Second, it's a good idea to get in the habit of checking your credit report from time to time anyway. This is just another good reason to do that. Don't worry too much, but start getting in the habit of protecting yourself from slipups like this.

personalfinance

PennyCock

t3_829luw

EuropeanInTexas

dv8evve

snoos_antenna

dv8wqqt

First Ever Salary Negotiation, at 48 - Questions

A little back story, then on to my questions. I joined the Military straight out of High School at 18. After a 21 year career and retirement from the military, I accepted a job in my home state. The job is Union, and therefore has a fixed hourly pay with overtime. Some of the overtime is "Built-in" i.e. it is expected that out of every pay cycle there would be some amount of overtime to be paid as a result of the work schedule (12 hour rotating shift work). About 5 years ago I took a lateral transfer (temporary) to a different group with a slightly different schedule. My schedule is now 40 hours a week with no "built-in" overtime, BUT I am still able to pick up (and frequently do) pick up overtime shifts on nights and weekends. Pay in my current position is approx.$X if I work a straight schedule with no overtime. However, with overtime my income is approx. $X + 30% Current Situation: I have applied for a new position (Position 1) that is a staff (i.e. non-Union salaried) position. This position has a pay range of $X +/- 25%. Obviously, this would be a pay cut from the previous position, and would cut me off from the ability to work the overtime previously available. Other changes in benefits: 1) I would be eligible for a larger performance bonus, however the bonus amounts are not guaranteed. 2) I would go to a much stricter PTO scheme than what the Union enjoys HOWEVER Position 1 could potentially (but not guaranteed) put me in line for Position 2 that is coming open in a month or so, and Position 2 has a fairly decent pay raise (not sure of the exact amount). I guess I am looking for some feedback on what other people may think about this type of situation. I have never been in a situation like this and am not really sure how to proceed. I have never had to negotiate a salary before, I've only read about negotiations on Reddit. I have not received an offer on Position 1 that I applied for, and Position 2 (which is the one I really would rather have) has not posted yet, but should soon. I am leery of taking a pay cut, but wold be willing to if I thought it was a short term stepping stone to something better. From my interviews I got the feeling that my supervision liked the idea of me taking Position 1 with a quick jump to position 2, but of course nothing definitive has been given to me. The only assurance I do have is that if I take Position 1, I will not be prevented from taking Position 2 by time in position rules. Any Help or insight that the people of PF could give me would be greatly appreciated.

Pay in my current position is approx.$X if I work a straight schedule with no overtime. However, with overtime my income is approx. $X + 30% have applied for a new position (Position 1) that is a staff (i.e. non-Union salaried) position. This position has a pay range of $X +/- 25%. Sounds like you'll likely be taking a large pay cut and losing out on benefits and union protection at this new position. Can you clarify that this is correct? If so, this is likely a terrible idea. Position 1 could potentially (but not guaranteed) put me in line for Position 2 that is coming open in a month or so, and Position 2 has a fairly decent pay raise (not sure of the exact amount). Generally speaking, it's not worth switching jobs for a potential promotion down the road. Promotions are often dangled to keep employees working for less. Vague promises of future pay or future promotion opportunities cost an employer nothing and are completely nonbinding. Is position 2 a management-level position? Do you actually qualify for it? In general, you'll probably need to provide more details to get any decent advice here. What sort of field is this? Is there anything preventing you from keeping your current job and then applying directly for position 2 when it opens up?

I've always liked the saying a bird in the hand is better than two in the bush With that said sometimes you have to work a lateral or slight decrease to get to a better position with more growth opportunities. The key is the communication you have with that new management, talk is cheap and many careers are haulted by broken promises. Meet with your potential manager and tell him exactly what you're thinking. People are far more likely to work with you if you're open and honest, for example, you're absolutely right to be leery of potential promotions that haven't been granted yet (or ever). Sit down with them to see how serious they are about those promotions and all the steps you need to take to get there. Lay out the plan with management and theyll know you're serious and you'll know they're serious too. Remember a bird in the hand is better than two in the bush but that doesn't mean you never fly to get to a bigger bush. Make sure you always look out for A1 in the end, take chances but make sure you have back up options

personalfinance

NukeWorker10

t3_bxjh15

Thus_Spoke

eq7kux5

Murfdigidy

eq7nzzv

I'm about to pay off my truck and will have some extra income. How should I make use of this?

With savings plus my tax return I'll be able to pay off my truck within the next few weeks. It's around a $150/month payment, and I will be paying it off roughly 19 months early (originally was a 48 month loan). It's an older car, so the APR is/was around 3.5% and the payoff amount is roughly $2,800. Here's what I'm looking at, in order of likelihood, after rebuilding my savings account: Option 1: Open a 401(k). My company matches up to 6% pre-tax, so at a $35k yearly salary I could put in $175 per month max. I may not put that much in. It takes 4 years before I would actually be able to get back the full amount of their matching contribution, until then I get back part of their contribution on a sliding scale. Option 2: Just sit tight and prepare to pay for medical insurance. I'll turn 26 in September and will have to start paying for my own insurance. I have no idea how much this will cost, but I'll likely just go through my company. Option 3: Some type of small installment based loan to continue to build credit. Accordint to CreditKarma.com I have a 699 TransUnion score and a 718 VantageScore. I don't know what I would actually do with the money once I received the loan. Option 4: Pay off my college loans. I don't want to do this because it's an installment loan and keeping it open will continue to help with my credit score. I owe too much to be able to pay it off outright as I am with my vehicle ($6,700 vs $2,800). I pay 6.55% on this loan with a $93/month payment. My yearly COLA/performance based salary increase will hit in August, and I'm expecting a $1,000-$2,000 yearly salary increase. Throwaway because a lot of friends know my real username and this has some personal information.

NEVER pay interest to increase your credit score. DO NOT take out a loan to try and increase your score. DO NOT wait to pay off your student loans to try and increase your score. Get a credit card and only buy things you need with it and pay it off in full every month if you want to increase your score. But I think you should invest in your 401k up to the company match and then put extra money towards your student loans.

Do you have an emergency fund, or are you emptying all your savings to pay off the truck? If the latter, don't do that.. The typical recommendations on r/pf are as follows: Build emergency fund (3-6mo of expenses) Contribute the minimum amount to get the full match on your company 401k; this is quite literally free money. Minimum payments on all debts, and anything leftover goes to the debt with the highest interest rate A couple questions/comments: Why would you want to pay off your truck at 3.5% when you have a student loan accruing interest at 6.55%? I would be putting my extra money towards the student loans. DO NOT take out a loan just for the purpose of building credit. This is a huge waste of money and not necessary at all. A couple credit cards that you pay in full every month will do just fine. Just remember to ALWAYS pay on time and NEVER carry a balance.

personalfinance

HappyBillmore

t3_1vusj5

whiteraven4

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cevyvgi

zoidbergular

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cew3hte

Financial Independence and Mental Health

There's a very interesting article in today's Sunday Times (UK, probably paywalled) [Why money worries can be a fatal obsession]( From the headline you might think 'oh another story about unmanageable debt spiralling into depression and eventually suicide' but actually it's very different. The person concerned was well paid, as was his wife, and they had no debt. His money 'problems' came from an obsession towards saving, and knowing the exact state of his financial affairs (he would regularly ask his wife to check their current mortgage balance). His behaviour all sounds like things which we would commend in this sub, like maximising his tax-free savings allowance, putting away lump sums each month in savings accounts, taking his own lunch to work and seeking out the cheapest options for take-away coffee. On reading his diary his wife found he thought it note-worthy when he didn't get worked up about spending £5 on dinner at the convenience store on the way home from work. Despite seeking help he very sadly took his own life in 2011. I personally am a somewhat obsessive and depressive character, I've had several bouts of counselling and was addicted to gambling for a while in my teenage years. This article has got me wondering if seeking FI is just another form of obsession that can become just as damaging psychologically. Are there any trends people have seen and how do you stop FI/RE destroying the very thing it's trying to create, a better more enjoyable life?

This article has got me wondering if seeking FI is just another form of obsession It can be. Many people try to use it to hide from other issues or telling themselves that "I'll be happy when I'm FI". Guess what - waking up FI is just another day. FI/RE destroying the very thing it's trying to create, a better more enjoyable life? Obsessive saving can be damaging. But that's not what FI/RE is about to me - it's about prioritizing happiness (per dollar spent). Focusing on what truly makes you happy (as opposed to what just gives you an adrenaline rush when buying things).

It sounds like this person had OCD. That's sad, but it's not really related to FI. Anything can become unhealthy if taken to extremes. Washing your hands after using the bathroom? Responsible. Washing them until they bleed? A problem.

financialindependence

djlevackio

t3_5s7yvb

GraemeCPA

ddd0dcu

dont_let_me_comment

dddgeju

How do you deal with boring jobs and poor coworkers?

Im right at that tipping point. Net worth in the 200-300k range, just got that six figure job I was always dreaming about. Investments, emergency fund, primary home, etc all set up right where they should be by the guidance of this sub. I'm 29 and doing well! But goodness do I hate going in every day. 1 hour commute each way in traffic, coworkers at the new job are aweful and don't understand what they are doing. My tasking is extremely unfulfilling, for example I was given five days to prep for a 15 minute meeting with some guy down the hall. And there's almost no work. Gmail is blocked, my boss hates seeing people on phones, and doesn't allow telework or even the 9/80 schedule all other departments have. So I literally drive two hours a day to sit in a cube and stare at a wall for 8 hours. Its Office Space on steroids. So basically, I'm being overpaid and can hit FI really quick while doing nothing but watch my youth slip away. What would you do? How do you get through that hump of watching the returns pile but FI still seems so far away?

I would stay... just for the “experience”. Serve your one year and start farming out to other companies that are more interesting, have better benefits, and will pay you comparably. Six figures for a low stress no hazard pay job is nice, there are a lot of people doing much much more for much much less.

Learn a new skill. Without knowing your current (professional and personal) skills, pick up something that can help you. Learn to do crazy things in Excel. So much of the world runs on Excel. Learn a programming language, a good choice is Python. Then you can even branch out into data science, full stack web development, whatever you want. Learn a foreign language. May not help you professionally, but maybe you dream of visiting France someday. Just find something that you've wanted to learn or read about and figure out how to do it while at work.

financialindependence

dillonph

t3_drs0eo

YikingViking

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bertsdirt

f6qb3re

Car totaled from hail damage, insurance says my only option is to give the car back to the bank.

Car: 2016 Mazda CX-5 Insurance: USAA + Gap coverage Down payment: $1000 Payments to date: 3x$500 = $1500 Running out of options here, need advice. Sorry if this isn’t the right place. We got some bad hail and when the agent finally got around to appraising the damage, he said the car was totaled and that, because it’s financed, the bank would have to take it back. Insurance is paying for the cash value of the car, and gap coverage is taking us the rest of the way to the original purchase price (~9k difference). My question is this: don’t I own $2500 worth of that car? If my only option is to buy a new car, then I should really be getting every penny back (or at least a percentage commensurate with my investment as compared to the original price.), right? Also, I find it shocking that the repair could be worth more than the $22k that the car is worth. If we could get a quote for less, wouldn’t the insurance prefer that option? What does the bank’s position as primary lien-holder have to do with things? TIA

Your regular car insurance pays you what the car was worth before it was damaged. Your gap insurance pays an additional amount to cover your remaining car loan. There's no additional coverage for the $2500 you already paid. Consider yourself smart to have bought the gap insurance!

As noted by others, that $2,500 had already vanished via depreciation. But you didn't feel it or notice. The accident and insurance settlement essentially forced you to do the math and feel the loss of the depreciation. Find a nice used CX-5 that somebody turned in after the lease is up. You're golden.

personalfinance

Hihungry_1mDad

t3_clns87

DanLynch

evwkymb

solarguy2003

evx0cia

I really F_cked myself with this car loan.. HELP!!

Alright here's my deal, Ill state the numbers first, and then give some background.. I have an auto loan for an 09 Impala,with 150k miles on it The amount I have left on the loan is $12,934.35 I pay $300 a month on my car note Thats still another 3.5 years I have left of paying this amount... Heres the background now.. Im 26 and currently in school full with plans to transfer to a 4 year at the latest by NEXT fall.. I only work part time so that I have time for school... At the time I got the car I underestimated what that -$300 a month would do to my budget.. Its killing me... What exactly are my options, and what can I possibly do..?

Your options are: Continue paying the car loan Sell the car for 12,934.35 and pay off the loan Sell the car for < 12,934.35 and have enough cash on hand to pay off the difference on the loan

Who is your loan with? If it's not with a small(ish) bank or a credit union, look into those and see how much refinancing would save you. Maybe looking into a second part-time job, too. If refinancing lowers your payment, but you are making a little more money, you could pay over the minimum payment and pay off the car faster.

personalfinance

Nuke__Dukem

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TrueBlonde

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cgif34w

dragonfliesloveme

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cgin9si

Do I need a realtor if I know the place I want?

A colleague is selling her place and I am looking at buying it. I am currently renting so I don't need to sell my place. Do I need a realtor if I know the owner and the place I want?

Absolutely you do! Middle men are critical to the American economy, and they deserve their 6% total commission even if you do literally all the work on your own. If you’ve already found a house and have a fair price settled, you’re bad, and you should feel bad. What I’d recommend is that you find a pair of random realtors and simply gift them the 3% commissions per person. Maybe even bump it up to 4% per realtor. That way you’ll feel good about not contributing to the decline of their industry.

Find a decent real estate lawyer instead. They will be significantly cheaper, will help guide you through the process, and you can negotiate a price for 3% less. Lastly, a lawyer works on time to protect your interest. A realtor is motivated to push the sale through and, especially in my market, have a loose hold on the "truth".

RealEstate

funnygal1224

t3_74xof0

Roboculon

do1zk6y

fullyopen

do24wlr

Unsolicited credit increase

I'm in pretty good financial shape overall and the wife and I just paid off some of our outstanding consumer debt. Today I got an email that my credit limit on one of my cards had been increased. Will this have any effect on my credit score? Any other side effects I need to know about? (I'm not likely to go out and spend as a result so that shouldn't be an issue. )

It will help your credit score. Your credit utilization will be better. As long as they didn't do any unauthorized credit checks to increase this limit, there is nothing that will effect you negatively.

Is it still legal to simply increase someone's credit limit like that where you live? I get letters in the mail saying I qualify for an increase, and to call in if I want it, and ignore the letter if I don't. (I live in Canada.)

personalfinance

Nogginboink

t3_1r28l8

_LiD_

t1_cditbsn

cditbsn

lilfunky1

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cdityzg

Pulling the trigger in more time off

I'm still in the long way to go, hard slog years of FI. I'm 38 and I'm looking at minimum 45, more realistically 50, for FI and RE. I'm sound financially - just got a long way to go. However, I have been looking at cutting down on work hours now and waiting a little bit longer till full FI. In a couple of previous jobs I negotiated four day weeks. In my current one that won't really work just same amount of work to do in less time - but I am considering asking for 4 weeks extra unpaid leave every year and just taking a mini-retirement annually (on top of normal holidays). Anyone else approached the ramp up to FI this way? Is it worth the longer wait till FI by grabbing some extra time now? Feel slightly guilty as I know it's impeding progress financially - but the whole point of FI is to have the time to do what I value.

I do this and love it. I negotiated for more vacation time though, unpaid leave is tougher to justify, if you don't mind working into your 50s you should do it.

I'm older than you, so I can say with confidence I had more energy and paitence for work stress when I was your age. Now I'm approaching 50 and I want to FIRE next week, but I have 8 to 13 yrs to go depending on if I use the 55yr rule. Put your time in now and then take off the rest of your life when you're ready.

financialindependence

JohnDalrymple

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PaytonAndHolyfield

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I-suck-at-golf

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