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Advising my father to move away from an actively managed portfolio to Vanguard index funds.

My father recently mentioned that he was considering moving away from Chase where he holds an actively managed retirement portfolio. I had mentioned that it may be a good idea for him to invest in passive index funds through Vanguard. My father is 54 years old and is self employed as a part owner in a freight transportation company. He has been investing in retirement funds for a while now, but I do not know much detail. What I want to do is provide my father with resources on potential portfolio allocations within Vanguard and how they may limit expenses compared to a managed portfolio. I remember seeing a number of examples of 3 and 4 index fund portfolios through Vanguard. I assume my father has the assets to purchase Admiral level funds from Vanguard. What are some good resources that I can provide to my father to show him that a passive portfolio may provide more stable and increased returns? Any examples of portfolios would be greatly appreciated too. Thanks!

Not what you're asking for, but one thing to make sure your dad understands will be the inevitable bull/bear cycle(s) that he will see between now and retirement. With active management, you can at least feel like the manager is "doing something". With passive investing in index funds, you need to have the intestinal fortitude to ride it out solo. Make sure he has a written plan that states in black and white what the right moves are in the event of a market correction as well as a market run-up. What day(s) of the year will he be re-balancing regardless of what the market has just done and what he "feels in his gut"? Write out what several scenarios will look like and explain the logic behind what his actions should be: i.e., the market has just tanked, and his stock index fund has just lost 30% of it's value seemingly overnight. Today is his pre-scheduled re-balancing day, so instead of getting out of stocks and going all cash like his instincts are telling him to do, he's going to sell bond fund shares and buy stock index fund shares to get back to his target ratios. Buy low. Stocks are on sale, and over the long run will go up. Scenario 2: the market has just had a tremendous run-up and has gained 25% over the last 6 months. Bonds have been pretty blah over the same time span. Instead of selling all of his boring bonds and going 100% stocks, on his pre-scheduled re-balancing day he's going to sell some of his stock index fund shares and buy bond index fund shares to get back to his target ratios. Sell high, lock-in the gains and cushion himself against the inevitable market correction. I got plugged into passive investing starting around 2006, and around 2008ish I saw a bunch of people panic and abandon their plans when everything seemed to be burning down around them. They ended up locking in their losses and missing out on the recovery. Other people were mentally and emotionally prepared and knew that these sorts of markets happen and stuck to their plans, as uncomfortable as it was to be buying stocks at that time. Those people reaped the long term benefits.

This is a worthwhile exercise, I think, because if your father is going to make changes, he needs to feel that his direction is motivated. It sounds like he has expressed a desire to move away from one custodian. Has he also expressed interest in moving from actively managed to passive index funds? I don't think you will be able to guarantee better "returns." After all, stock picking, or choosing a winning managed fund might result in higher returns. But you can do some things. For example, you can focus on costs like expense ratios. If dad sees how expense ratio * balance is mounting up to hundreds of dollars, and this would be reduced by using index based portfolio, that can be one piece of your evidence. Another might be to look at volatility. See if you can find some numbers, such as at morningstar, that give standard deviation of returns for the various funds he is in now. Standard deviation around a mean is a historic value, so it can't be said to be completely predictive. But the std dev can be used as a guide about the wildness of variability. So if your father is interested in less fluctuation in returns, this is something to look at. Another thing I would consider is mapping out for him his current asset allocation in broad terms. Examine with him if his allocation makes sense for his age, his risk appetite, and his peace of mind. Then, if you are building with him a suggested different group of funds to use, you can show him how to get the same general asset allocation (if what he has he likes), and yet at lower cost. The point here is to stress that he can get a new portfolio that still preserves important elements of his current one (asset alloc) but has improvements in other ways (expense ratio, maybe lower volatility). Lastly, once you have a suggested alternative portfolio, you can compare its cost to what he has now. You won't be able to compare future performances of old vs new. Without a multistep approach like that, it could be a disservice to just throw a suggestion at him. The steps I outline above are a way to build "buy-in" that gives him agency. I imagine feeling in control about this kind of change would be important. Also, be open to possibility that he may want to have a blended approach. Perhaps some portion of overall holding could be earmarked for active management, or stock picking, or "tilting" toward a favored sector. But you might suggest limiting the scope of this (to a "sandbox" to play in). It is a good idea to be thinking about this esp. since your dad is in his 50s, so asset allocation adjustment may be a part of the decision. Also, I am presuming that most of the change will be done in the retirement accounts (IRA and maybe a SEP-IRA or solo 401k), where such changes don't trigger capital gains taxation.

personalfinance

cookwarestoned

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Looking into Roth 401k. Why wouldn't my tax rate be lower after I retire than it is when I am working?

This is what I'm talking about: "If you think that your marginal tax rate will be lower when you retire than it is now, then a Roth 401(k) loses some of its appeal." But of course my tax rate will be lower because I won't be working anymore, right?

You won't be working, but if you withdraw 200k from your 401k then you've earned 200k that year. You are basically deferring the taxes. The way this is supposed to work out, is you go out and earn 150k when you are working, yet, you are putting kids in college, paying a mortgage etc, so you are probably spending 80k of that. But you are in the 28% bracket. Then when you retire, you've paid off your home, no more kids. Now all you need to live is basic bills, food, hobbies, occasional travel, etc. so now you can live on 25-40k (or future equivalent) a year. So now you are in a much lower bracket. Beauty of a blend between Roth and Traditonal is that the Roth money has already been taxed, so its not counted as income. So you can pull 20k out of the roth, and 20k out of the traditional, and only be taxed like you earned 20k. That really only works though if you are in a reasonable bracket now. If you are making like 200k or something, 1 you earn too much to even do a roth, and the tax savings of a traditional clearly win out.

When you pull money in retirement from pre-tax accounts like a 401(k), that money will be taxed as income. If right now you have $20k of taxable income, at the peak of your career you have $100k of taxable income, but in retirement you will withdraw from those pre-tax accounts at a rate of $60k per year, then in retirement your tax bracket will be higher than what it is currently is. If you have post tax accounts such that you withdraw $25k from the post tax and $25k from the pre tax accounts, then your tax rate in retirement will be about the same as it is now.

personalfinance

passwordgoeshere

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ElementPlanet

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Went into a Fidelity years ago when I was young to deal with assets and I’m not sure what happened

This is in California, not sure if this is better suited for legaladvice instead. A few years ago when I was 18, immediately after my dad passed away, my mom took me to an well known investment service to get some things sorted out from my father’s end. I know it was related to me because my siblings didn’t go and she told me I had to be there. I’m almost certain that this was related to my dads assets and I was told by an employee there that after every x amount of years, I can withdraw x amount of money once I reach a certain age (not 100% sure). Honestly the whole thing is a haze to me and I can’t remember what exactly happened because my dad had just passed. I completely forgot about this until recently when one of my coworkers and I were talking about wills and I briefly mentioned this incident. My coworker said it sounded like I have a trust. One of my siblings asked our mom if our dad had left us a trust and she said that he did not. My mom and I do not have a good relationship and so I’m not in the position to ask her what happened years ago in some financial service office. My mom is not exactly the best person to me and I would not put it past her if she had been doing something behind my back by taking me there. So I’m wondering: 1.) Does anyone have an idea of what this could be? 2.) How would I find out more information about this? My coworker says I might have a Fidelity account that I don’t know about. If I go there, is it possible to find out information about this with my ID alone?

It doesn’t hurt to go into an office an ask. I would, but I am wondering if the assets are held in your name or not. If it’s a trust, and you aren’t the trustee but the beneficiary, it would be hard to look up in the system if you don’t have the details. The tax id would have had to change to an ein. Do you remember signing anything?

Go get that checked out. It's worth your time to figure this out and if your mom drained your account I don't think there is much you can do. All they should need is your id and maybe your ssn.

personalfinance

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Inheriting paid-for house, split 50-50 with sibling. Should I buy her out or sell it?

It's a classy problem to have, I get that, but feel like it's a major turning point in life. Here's the details. I own a home with an affordable mortgage, and am currently able to save a few hundred dollars a month, and have a good amount in savings... about $35k. Our father is dying and I have one sister. We are 50-50 on the house. She doesn't want it, so I'd either buy her out or agree to sell. His house is probably worth $500k - $550k, so I'd have to sell my house and get a new mortgage, larger than what I'm currently paying by at least $25k. His house needs major renovations, at least $100k (new roof/dry rot, complete rewiring, plumbing, bath/kitchen updates, driveway, water heater, flooring, etc.). That would eat through any equity I'd get from my current home and leave me with small savings account, and less cash flow per month. Not to mention the increase in property taxes. We live in CA, so my dad is paying tax based on an appraisal from over 30 years ago. New tax bill would be about $5k a year (1500 more than what I pay now). Parents house is in a really nice area, several million dollar homes within blocks, but it's just an old home. 2 bed/1 bath, 1500 sq ft. I'm afraid I'm just thinking of buying it for sentimental reasons, and would be setting myself up for a struggle down the road, vs staying put, cashing out my father's house and moving on with my life. My dad is also leaving us a small amount of cash, maybe $30k each. Any help is appreciated.

People in this forum are probably not aware of the tricky CA property tax law known as "Prop 13". This will have a dramatic effect on your decision to sell it or keep it (and fix it, and rent it). As you mention, your dad is paying tax based on a 30 y/o appraisal. Something to keep in mind is that in many cases you can inherit the property tax basis, too. Make sure you look in to this. It might be worth keeping the property if you're only on the hook for hundreds a year in property taxes, as opposed to thousands.

Sell the house and pay off your mortgage, if you want to invest in a project in the future then carefully consider a house for rennovation and be sure you will be significantly better off from it

personalfinance

12dustbunnies

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EthanWoodward

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My Wells Fargo 401k Account was Drained!

I just signed into my WF online banking account to pay off part of my credit card, and saw that the 401k account I never touch has been totally drained through a 'distribution'. It doesn't even say what date this happened, or what method was used. &x200B I've been passed around three departments on the phone and have had someone stop talking mid-sentence to chew their food, nobody seems terrible alarmed or concerned, and nobody can give me any 401k account information until Monday. This seems insane to me. Has anyone else experienced anything like this? Anyone have advice on wtf I can do right now?

Are you still employed with the 401k sponsor? If not, and if your balance is (was) under $5000, the plan may force a distribution without your consent (after certain notifications are provided). I'm guessing that may be what happened.

Like other comments, could have been a force out where they just mailed you a check. Make sure your address is up to date. If it is not, they can always stop pay and reissue a check to new address.

personalfinance

47milliondollars

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WalterMitte

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Is it feasible to buy a 208k home with a gross salary of 40k/year (CAN)

I have a downpayment of 20k. My net income per month is 2200, I'm planning on getting a second job on the weekend as a barman, maybe an extra 500 per month. Right now my financial obligations amount to around 650$ I'm just curious to know If I'm looking at something that is way out of my league or not and if any of you have purchased something similar with a similar income. I might also consider getting a roomate who will pay me 500-600 a month to live in the home. It's a three story townhouse. brand new. Thanks for any advice.

I think this one is out your league. That'd be over half your income after taxes, insurance, and utilities. I think you (and lenders) have to consider the worst case scenario--no second job, no roommate.

In the US, you can't use the projected income from a roommate on mortgage applications unless the unit is zoned as 2 properties, I imagine banks follow the same rules in Canada Maybe some small credit unit might be OK with it, but I'd be surprised.

personalfinance

musicandsex

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Selecting my first two mutual funds

**

I intend to entrust some of my savings to a financial advisor, who has steered me toward two mutual funds Bad idea. Your financial advisor is only out to turn your money into their money. Those two funds are likely very expensive to own. Please read the information found in the FAQ.

Fire any financial adviser who recommends "C" shares because they have the highest annual expense ratios, and high costs (sales loads, redemption fees, plus expense ratios) will likely drag down your profits in the long run. An adviser who recommends "C" shares is likely just a sales person who consults Morningstar.com (you can do that for free) and isn't a real expert. Those funds each charge about 2% of the gross per year, meaning if you have $1,000 invested, you're charged about $20 a year (taken out monthly). That may not seem like much, but considering that the stock market has gained only about 7% a year, after inflation, that 2% of the gross is like 28% of the gross, each year. Don't take fund ratings too seriously because the highest rated funds have tended to underperform in future years -- check the Hulbert Financial Digest to verify. Forbes admits this drawback of its "Honor Roll" and "Best Buy" funds and tells readers to pay more attention to costs and volatility (risk), including bear market track records. If that so-called "adviser" wants to know why you won't sign up with him, just mention Vanguard. That seems to make sales critters shut up fast. It also might not hurt to also ask why his recommended funds charge 5-10 times as much as Vanguard's. Real friends don't try to profit monetarily from friends.

personalfinance

fromagi

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aBoglehead

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larrymoencurly

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Thinking of picking up a house back in the US, I live overseas.

The house is cheap, as is most property in this particular little PA town. It's currently owned by family members, who I'm very close to, almost like second parents, and my uncle is very much a DIY guy, who's done well in maintaining the house. That being said, they'll sell it to me cheap, like $25,000. Easily managed monthly home loan. What else should I be considering though? I've been overseas for like 15 years now, and will be for possibly another 5 to 10 years. So I'm a bit behind on what I need to consider. In mind currently: Loan (easily done) Homeowner's insurance property management/maintenance (will probably go through a company to find renters & such) Any other costs I'm missing? I've no intention of paying renters' bills or anything, or furnish the place more than the sporadic furniture that already exists. So, reddit, what am I forgetting? Told them I'd give them an answer about the property (2 apartments, one up, one down) within a couple months, so I have SOME time. But not a lot. Cheers in advance!

Property tax. Also get it inspected. Even though its from someone you know, you still want to know what you will have to pay for in the next few years.. if the AC is on it's last leg, if there is termite/water damage that will need to be addressed. Get the full workup, so at least you know what needs to be done.

Property taxes, you probably don't even need a loan for that value honestly if you can afford it. Make sure you keep in touch with the local family to do basic things for you. If you like you can pay them a small amount and write it off against the income as an expense along with your management company fees. You need a full turnkey management company. This is small enough that there isn't a point going way to far into detail except good insurance against damage from the tenants.

personalfinance

seneschall-

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Jaxonian

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CN3RET

dalshfs

Is there an app that can round up any purchase I make to the nearest $ and put the difference in a savings account?

I bank at PNC and they don't offer anything like this but I'd like to use an app or bank program that has an automatic savings account deposit feature that is used every time I purchase with my debit card. For example, I'd like features where I could set it to deposit $5 into a savings account from my checking account when I use my card or even a microtransaction feature where if I buy something, let's say a cup of coffee, and the bill is $3.50 the cost would be rounded up to $4 and 50 cents would be added to the savings account. Does anything like this exist?

I'm going to echo some of the other commenters: don't reinforce bad spending by connecting how much you save to how much you spend. You are establishing a feedback loop that goes, "The more I use my card, the more I save." If you want a trickle of money to move from checking account to savings every month, multiplying number of card transactions in a month by 50¢ and transferring that amount would do it. Why not just be deliberate and earmark some income to savings every month?

Wells Fargo has it, but fuck those guys. Instead, set up an automatic transfer to savings at the start of each month. I understand why you want to do the round up (I did it for many years actually), but the biggest financial movements forward I’ve made were contributing to tax-advantaged accounts and set automatic saving each month. Even just $100. An snowball pretty quick.

personalfinance

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newlyentrepreneur

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Sellers who listed with Redfin Concierge Services: was it worth it?

Has anyone here prepped their house to sell with Redfin Concierge Services? If so, was it a good value, or was it not worth the hassle?

I've purchased a house using Redfin and it went fine. I would recommend against using them to sell as they lack experience/skill and their ability to price property using their 'algorithm' is easily damaged by missing or corrupt data.

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RealEstate

WryLanguage

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Oldjamesdean

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LocationBot

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Purpose Behind Unbuildable Lots?

I apologize in advance for such a dumb question, but I'm genuinely curious why people are allowed to buy & sell land they can't even use for camping. Especially when at some point the land is owned by the county who are the same people placing restrictions on it & should know it's useless? Shouldn't they just be consolidated to the neighboring parcel who was allowed to build on their lot? Or is it as simple as: not all land can or has been reviewed. Is there any benefit in being stuck with such a lot?

I've worked in local planning /zoning and it is really quite rare that new residential type lots are being created with the designation of being truly non-buildable. That practice was essentially written out of the code decades ago. What we're seeing now are likely (hopefully!) vestiges of the past. In my experience, the main reason lots might be designated non-buildable could be because of an inability to hook up to water and sewer, be it public or a private well/septic. As far as consolidation goes, there's probably a process for that, which would cost money. If I owned a house next to a wooded/grassed non-buildable lot that someone else owed but didn't use at all, why would I bother myself to buy it, pay taxes each year, and pay for the county and a surveyor and a lawyer to consolidate it? Which brings us to your real question, why do people buy and sell them. Others might have actual examples, but the county potentially sells it because they don't feel a need to continue maintain it or keep it in inventory or regulations have changed so they no longer have to own it, and then unfortunately you might see a series of purchasers who don't do their due-diligence. With that being said, there are various levels of"non-buildablity" and you might find that your zoning office would permit structures like a simple garage or workshop, a garden, fruit stand etc.

I've seen this a few times, could be different reasons. Well-off guy wants to be a master of a larger domain. Doesn't want the land potentially combined with someone else's lot because he would not be able to control it in the future. Preserves his view and buffer from neighbors. Also in my area some planned communities have dedicated open spaces. In exchange for being able to build 30K houses the developers promise to leave some land untouched. Usually this gets owned by the HOA at some point but not always. It definitely differs by area. Sometimes a lot gets bought because people are dumb about what they can do with it, or it turns out to not be financially feasible. Also sometimes rules about building change over time, someone might have bought a lot years ago not realizing what they'd be required to do eventually.

RealEstate

Sk0lBanga

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phasexero

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Meeting with Edward Jones advisor. What are good questions to ask?

I have about 25k from a previous employer 401k that I switched over to Edward Jones approximately 10 years ago. I meet with my advisor every year and pay 40 dollar yearly retirement fee. I would like to become more involved in understanding all of the fees. I've asked before, but I'm not sure I fully understood the answers. The funds are A shares. Any other good advice on questions to ask regarding if the overall performance of the fund is worth the fees.

EJ I think might have the worst reputation here. I have yet to see a good post about them. You should switch to Vanguard, Fidelity, Schwab and tell EJ thank you for your service it's been a great 10 years. The funds are A shares. OMG! I almost cried seeing this. Not surprised with EJ. A class shares are the worst share class to be in. They typically charge a 5.5 to 6% front load fee so if you invest $10K into one of those funds you actually only invest $9,400 dollars and the fund needs to do better than 6% to break even. Every time you put money in they are charging you 6% there are also 12-b fees as well as high ER fees. Compare that to any of the three I mentioned that have zero fees except the ER which is super low. I can guarantee your funds have underperformed compared to putting it in index funds with any of those three I mentioned. My heart goes out to you and wish you the best! These two wiki's are also very valuable [Investing]( and [Retirement](

Educate yourself by finding out what the fees are for all the funds you have. Manage your own money (for free). Put it with Vanguard or Schwab and invest in the total stock market fund or S&P 500 stock fund.

personalfinance

SandyMcFiddish

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hopingtothrive

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I am covered by two dental insurance policies with same company. Should I be getting a bigger benefit from them, since I essentially pay them twice?

I'm covered by my employer and my wife's employer, and have Delta Dental.

No, you should be dropping one of the plans and hoping that your employer offers you some money back for the savings. Same with medical if you're paying for family coverage.

I've worked for an insurance company for 8 years and very rarely have I seen a situation were being covered by two plans is financially beneficial. Doing some quick math based on Premiums, Waived Coverage Credit, Deductibles, and the Out of Pocket Max can find the best route for your situation. Typically single/single comes out ahead unless one or the other has a much nicer plan.

personalfinance

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Investment for young nephew

Hey pf, I want to start some investments for my nephew. He is turning 1 year old in October and while I could get him some toys or clothes, I figured I would do what no one did for me or what no one is likely to do for him. Clothes get grown out of, toys break, etc but he WILL need money later on. The question is - what to do with it? I don't have even remotely enough money to put it into some kind of trust fund (I was thinking about $50 each time there is a birthday or gift-giving holiday) and I don't want to pay taxes on it or have his parents have to pay taxes on it. I don't know about 529s considering he isn't my kid and I have no clue if hes going to go to college. I know you can purchase bonds but those have shit interest rates. Ideally this would be money that was tax-efficient, didn't count against me for my IRA or 401K contributions, was invested 90-100% in the stock market, and I could add to over the course of the next 18 years. Ideally I would be able to prevent him form getting at it any sooner than I say (I don't want him to be able to draw on it before hes mentally capable of making good financial decisions). What do you guys think?

Yeah, just make sure you don't have any high interest debt yet. 529s work even if he's not your kiddo -- you can open one in your name, and change it to his name when he's ready. They can be used for all educational expenses, not just college.

Are you me? I also live in NY and have a nephew turning 1 in October. I was thinking about starting this same topic since I'd love to stash away a little money for his education down the road.

personalfinance

jenkag

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Williamisme

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JSlasha88

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So the fed just announced rate cuts. When will banks who lend for real estate adjust their rates?

My question only pertains to the fed announcing a rate cut earlier this week. If I go to look for refinancing loans will they already be adjusted, or is this something that takes a few weeks or months for the banks to adjust?

Banks charge whatever they feel like and it’s only loosely related to short term interest rates. Mortgages are much more sensitive to the 10-year and 30-year treasury bond which are priced by the bond market not the fed or the government.

The fed rate does not influence mortgage rates. It’s an indicator of short term interests and will influence things like what you pay on s car loan or CC debt. Mortgages tend to. E. O related to yield on treasury bond, the price of which is is not determined by the fed rate. Rather, bonds offer a safe haven for investors when there are jitters in the market and boy did we have one hell of a jittery market over the last couple of days causing bond yields to fall. Even before the rate drop , mortgages were the lowest they have been since 2016. You should still be able to get a good deal. I just kicked off an application , got quotes 3.25 on a 30 year conventional refinance. We have PMI and our old rate was 3.75 the payback works out to be about 6 months. TL , DR; rates are low start shopping

RealEstate

penguin941

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CosmicQuantum42

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Renting at a discount in exchange for repairs?

Curious if anyone has tried this? I currently need to move for work as the commute is ridiculous and will be even worse this winter. My mortgage is below the going rate that I could rent it for, but it currently needs repairs I just haven't had time to do. Thinking of trying to rent the property out at cost in exchange for them fixing it up while they live there. Am I better off selling as is and taking a hit?

Do you honestly think that a renter is going to do repairs to your standards at their expense? I think that's very optimistic. A far more likely outcome is that somebody will take you up on the cheap rent, do absolutely nothing (at best) and leave it in even worse condition later. The only real question in my mind is whether they owe you back rent when they go. Go ahead and sell as is. Good luck.

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RealEstate

Karmah0lic

t3_6y7txq

ShortWoman

dml9n18

LocationBot

dml8hl4

Purchasing stock in my employer?

I have not been employed long enough by my company to be eligible for the ESPP. Is it illegal for me to purchase stock in the company outside of the ESPP? EDIT: Thank you for advice. Considering the biases I overlooked and the certain benefit of purchasing through the ESPP I will be waiting.

Not illegal unless you are trading on insider information. Just be aware though that by virtue of working at your company you have concentrated risk in your company (if they, say, go bankrupt you will lose your job), so buying stock further concentrates your exposure

On one hand it's a great way to align your interest with that of your company and shows you made the right decision in joining and believe in the future. On the other hand, you may want to invest in other companies as a way of diversifying away from your own decisions.

investing

Be_Are

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fireandnoise

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damasque

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clkrmqv

Best credit card for a noobie?

I have just started a new job and am finally in a comfortable financial position. I have been looking into getting a credit card to start building credit for future needs such as apartment hunting(i have no credit currently and with my last apartment my roommate had a co signer with credit that helped us out) and im not entirely sure what would be the best choice. A friend of mine just got a capital one card as his first and i looked into it myself as well as a few others i could potentially start with. What would be a good apr/interest rate? And what companies should i potentially look into/avoid?

You don't want to pay interest in a credit card. You want to pay off the whole balance every month. Discover generally has a good reputation, as does Chase, American Express and Capital One. (Capital One inquires on more credit bureaus, so there's that.)

If you have no credit, get a secured credit card or have one of your parents add you as an authorized user. If you have established some credit history, Chase Sapphire Reserve or nothing. Sorry, had to say it.

personalfinance

ikesmith

t3_55coza

yes_its_him

d89frd4

redyouch

d89p5lm

Early Retirees: tell me your story!

I'm 24, my fiance is 23. We're looking forward to fast tracking our saving plan soon after the wedding so that we can retire early. I'm having a good time playing with our numbers but it's all theoretical. I want to hear some real life early retirement success stories. When did you decide it's was a priority? Did you change your lifestyle at all? What do your numbers look like? How did people around you react? How do they treat you now? Is your spouse on board? Was that a challenge? I wanna hear all about it!

I'm 58, spouse is 63 and we are both retired (me 1 yr, her 3 yrs now). We have always been savers. She bought her first car with money saved from lawn and snow shoveling around age 17. We've both, luckily, are well matched in our financial habits. We both started IRA and 401ks as soon as they were available in the 80's. I didn't meet my current wife until late in life. My first wife couldn't balance a checkbook so we split very early after marriage. When did you decide it's was a priority? As I mentioned we each started saving very early. I waited until 30 to buy my first house and had paid it off under 10 years. This was when interested rates on homes were about 10-11%. I'd opened a money market account and used it to save for my down payment while renting. When the rent+savings > mortgage, I started looking for home. Did you change your lifestyle at all? Not really, we both were frugal from early on, but I tend to occasional spend on big things, her more on little things. We've never been into the "keeping up with the Jones'" lifestyle. Remember our parents lived through the depression and WWII so the force was strong. What do your numbers look like? We've been millionaires for a number of years and are very close to crossing $4m. $500k house on 3 acres in the country, 3 cars and no debt. We retired when it was obvious we were making more in the market than at work (our networth moves +/- 60k/week). At times we saved 50% of our pre-tax income per year. It also helped that we never had kids and those expenses. How did people around you react? I don't know. Until we bought the country place I suspect most thought we were poor since we are pretty tight with money and still are. Some at work knew I was in the stock market and would ask advice and figured I was well off. We are like the book "The millionaire next door." I know my family has no idea of our wealth and I like that since it reduces the begging. But I've paid my brother's property taxes for years now so he can keep a roof over his head. I think for me, the question is "how do I react to people around me". I have problems understanding the poor financial choices people make. Examples:buying a new car and increasing the deductible because they couldn't afford the payment & insurance (they were t-boned a week later). Getting laid off at 62 with little job prospects, health issues and they still go out to expensive restaurants. They also have 4 years left on their mortgage. I just shake my head. How do they treat you now? If they are friends, like friends. We don't flaunt our wealth. I doubt anyone we do business with knows. Is your spouse on board? Was that a challenge? Yes. I'm actually the relative spender but we are well matched. Edit: The secret is budget, budget, budget, and never bust the budget. When you've sent the allocation for a category you have to stop, or reduce the amount in another category. When I was single and just in my new house I even resorted to the envelope method ($ in envelope for each category. when empty, spending stopped).

I was distrustful of the long term state of my profession due to the nature of the industry and was interested in freedom which required lots of financial stability to be able to live as i choose.. spending all id like on food, clothes and vacations it would only cost me an average of 2000 per month to live like that keeping in mind my home would have been paid off, same with a vehicle if I needed one and didn't live in the city. I decided real estate might be a good choice to experiment with since the investment rises along with inflation and rent isn't controlled in new buildings. Working 70k-80k annual I had another 2k per month of discretionary income I put entirely towards bonus payments in paying off my mortgage faster without inconveniencing my quality of life for money. At 31 the mortgage is paid off and it also increased in value rent would be 3.5k per month, I can retire now and use the passive income to pay property management companies and mortgage brokers to handle things for me while I still have more than I needed left over to fund my life roaming the earth as a nomadic vagabond.. but right now the plan is to get another property of equal value to live in while renting this out as an artificial raise for the extra 3.5k per month an use it to pay off the new one twice as fast. No reason to retire now. I should have another down payment in a few years at this rate and I'll see how viable this passive income idea is.. if it holds up we'll see if rampant greed takes hold of me and turns me into a super villain, or ill become batman

personalfinance

just_ron

t3_29hwpz

ruralcricket

t1_cil3ftv

cil3ftv

vitriolic_amalgamati

t1_cilczls

cilczls

Hello there, I have over $28k worth of student loan debt and I only have 30 credits finished, is there a way I can report them or is there something I can do?

Here's a little background story. I came to the United States 12 years ago and I started college a few months after ( I was 17), I decided to go to this private college because had a family member working for them as a student advisor and she assured me that was my best option so I did. I applied for financial aid and got approved, after 6 months or so passed by I had a death in the family and wanted to take a break so I went to the school and told them about it and they said it was fine. Now here's where it gets crazy, they kept on scheduling me for classes I didn't sign up for and dropping me, they did this a bunch of times and cause of that my GPA went from a 4.0 to a 1.7 and I owe over $28,000. Is there something I can do about that? Please help Thank you.

Can you document your whereabouts during the period you were away from school? Rent payments, phone records, bank records, etc. If so, take that to a lawyer, who can advise you about reporting this to the police as student load fraud.

Just curious was this private school that your relative worked at a "for-profit" school like ITT which have been notorious for fraud or is it a traditional 4 year non-profit fully accredited? Large or small? The advice u are getting is for people assuming the school made an error/has students best interest at heart.

personalfinance

dayana_1124_88

t3_743vsc

dave_890

dnvbu3i

Shouldnothavejoined

dnw1l0z

I'm 26 and make $50k.

Hey guys, I've definitely been learning a lot from everyone's experience on here, I thought I'd ask for some of the wisdom myself. Here's the breakdown Income: $50k Current Monthly income: $2200 8% Retirement contribution Emergency Savings: $2000 Rent including utilities: $1100 Bills: $180 Gas: Budgeted for $250 a month, usually under Food: $500 (pretty bad spending) Coffee: $60 Credit Card Debt: $5k-$7k fluctuating Student Loans: Completed Car Insurance: $680/6months I quit my job and moved from my home state in 10/14 and moved to DC where the cost of living is dramatically higher. I obviously know it makes the most sense to pay off the credit card and I'm trying. I pay almost $1000 a month to my credit card bill, but problem is I am also using the Credit card to pay for everything so it just seems to stay constantly where it's at... go figure. I got it down to $4k earlier this month but with moving again, deposits, and double month payments, and new furnishings, it brought my credit card right back up to a high amount again. I'm pretty independent financially and help out my family back home when I can, but I want to be smarter with my earnings. I want to learn how to use the money I have in my favor. I've been relatively good with my money so far, paying off things and never having a late payment or anything like that, credit score is about 746 per Mint, but I really want to start getting into the green and not see that interest being billed any more. I've had credit card debt for about 6 years now. Any suggestions on how to kick it in the butt? Any and all suggestions and tips would be greatly appreciated.

Get on a budget and follow it. If you don't already have roommates, you need some ASAP. Coffee budget should be $5 a month. You can brew a lot of coffee for that much. I've been relatively good with my money so far, paying off things and never having a late payment or anything like that Respectfully, no you have not, at least as long as you have had a balance on a credit card and been spending $60 on coffee and $500 on food. That is an emergency. If you have had credit card debt for six years, you have been doing "relatively good" compared to someone who is a deadbeat that does not pay your bills and as such has a low credit score. You are not doing "relatively good" in terms of having your basic financial basics covered. Spending money on new furnishings is pretty crazy when you have credit card debt. Discretionary luxury spending needs to stop until the credit card debt is at 0. A second job maybe as well. You need to tame the credit card debt ASAP.

Spend less. less coffee, cheaper food, less luxory, less everything. Just buy what you absolutely need to live/work. Throw every last penny at the credit cards. It will take time but you'll get there. Also perhaps get a loan from a bank at a cheaper rate than the credit card to pay it off ?

personalfinance

stars_are_shiny

t3_37sf1y

IAMAWELL

t1_crpgg91

crpgg91

bonjourlewis

t1_crptl76

crptl76

My boss forgot to add me into the system when I started my new job, now its payday and I cant get my check for another 2 weeks. Is there anything I can do in this situation?

Recently, a couple weeks ago I began my new job as a back of the house cook for a Panda Express. I am supposed to get paid bi-weekly, with my first check coming in yesterday. My boss told me that I will not be able to get paid until ANOTHER 2 weeks because he forgot to put my payment information in when I started working there. Not too sure what this means but I have bills that were supposed to be paid off and this puts a big delay on that. Is there anything I can do in this type of situation besides accept it and wait?

I'm GM of a few franchises. I've made this mistake before. I usually ask the employee if they're willing to wait, if not I cut a check straight away (cost us a bit more from our payroll service, but if it's my fault, I'll eat the fee, it's not their fault). On a rare occasion if someone is brand new and they can't wait 2wks out from their start date, I will pay in cash. My payroll service allows me to enter an amount that was advanced and deduct the tax from their remaining payroll for the pay period and report it as an advance. On RARE RARE occasions I'll just pay them out in cash lol. I do this with extreme discretion due to the illegal nature of defrauding the IRS. tldr: there are many things I can do to remedy the situation you're currently in. Explain the situation to your boss and maybe they can work something out since it was their error

My HR department I think has offered to float people money in situations like this; let them know if the lack of pay is going to cause them a major hardship.

personalfinance

uhCarter

t3_8fdl8d

jonnyapples

dy373nf

AssaultOfTruth

dy303mj

Could be given free house and property

Recently my wife’s grandmother passed away and had a house with around 17 acres of property. The house was reversed mortgaged. Her son inherited the house but doesn’t want it or the property. I might have a potential buyer set up and the son is willing to sign everything over to me if I want it. What advice would y’all give because I don’t know what all will be involved with this especially with a reverse mortgage plus what tax issues can arise from being given everything? Should I pay a small amount or is it better to just be given everything? Should I even deal with it?New to this and you can use a good bit of advice.

Verify if there is a reverse mortgage. The son has a certain amount of time (usually 6 months) to refinance or sell before the reverse mortgage is due. Verify the balance. HECM (reverse mortgages) can be satisfied for 95% of appraised value or the current balance, whichever is less. He likely can't just sign it over to you.

I bought a reverse mortgage out once. It was a decent deal. I’ve passed on at least 5 that were absolutely under water. Owed more than it could be worth. Good ones seem rare. But it is worth looking at.

realestateinvesting

Baymax613

t3_fen0e6

deffmonk

fjp7my2

fiya79

fjpd5ea

What will being a 50% member of an LLC do for my social security benefits when I'm old?

I am co-owner (50%) of a Limited Liable Corporation and I don't pay the taxes for it myself, we hire an accountant to do it but I don't have a clue how this will benefit me when I reach retirement age. Can someone explain in layman's terms what exactly an LLC does and if I will be eligible for social security when I hit retirement age? I live in New York if that helps.

It will have no effect one way or the other. If you're a W-2 employee, social security is taken from your paycheck. If you're a 1099 contractor only, you'll pay payroll taxes as a part of what you owe. Your SS benefits remain unaffected. ...although there's some question as to what Social Security will look like in another 20-40 years.

First off, I am not an accountant, but I have dealt with this kind of stuff at a higher level for myself and friends. When you are a 50% owner and actually work for the company, you cannot receive salary but MUST instead do what are called 'guaranteed payments'. You would receive a regular paycheck, but it would be taxed like a contractor on a 1099. Just like a contractor, the LLC doesn't pay FICA on your behalf and instead the burden is shifted to you via self-employment tax. Self-employment tax IS the medicare and social security system as if you were an employee, so you would get the benefits when you need them. Presumably/hopefully your accountant is doing this for you. On the other hand IF you do not receive a salary, and instead only make money when the LLC makes money via a distribution then its totally a different story. In this case you likely get paid quarterly or annually and receive a schedule K. The payments are taxed as a return on an investment, so you probably pay less taxes overall. The downside here is that you are not contributing into social security or medicare, so you wouldn't be able to draw from social security when you're older. I don't know your exact situation, but most people who are active participants in an LLC have some of both kinds of income. A regular paycheck (guaranteed payments) and extra that seems like bonuses (distributions), for social security purposes only the regular paycheck counts.

personalfinance

clocee

t3_2j1cn3

Sorthum

t1_cl7fugw

cl7fugw

wookborm

t1_cl7i5z6

cl7i5z6

Recent college graduate having difficulty in job market and finances

I recently graduated college with a BS and live in San Diego with my SO. I was working retail making 3% above minimum wage at a company I have been working at for 8 years. I quit back in November in order to be able to look for career jobs full time. I also took out private student loans because my parents make too much to get public loans. Even with their stellar credit score I could only obtain a minimum interest rate of 8%-9% for a total of 35k. Now, I can't find a job in any related field of my major and the loan company (now Navient) can't process an unemployment deferment because they're private. What should I do?

Beg them to allow you to skip a few payments due to the unemployment, and find a job fast. Your first mistake was quitting a paying job before you had another one. If you can't find a job in your area in your chosen field, you may need to move to an area with jobs in that field.

You need a job immediately regardless of the field. I don't care if it pays less than the one you quit and it's is something you hate. It's temporary and can stop the bleeding. Get two of them if you have to. Also, as others have said, SD is not the best place in the world to try and get on your feet financially. Maybe look toward lower cost of living areas if you can live with that.

personalfinance

15MinClub

t3_48ygy5

beardsaddle

d0nlny7

Southwestern

d0nwf4r

What to do with a Traditional 401k after leaving job

I will be leaving my job in a few months. I have a 401k with my current employee but I'm not clear what the steps are after I leave.   I'm interested in rolling it over into an IRA. I'm currently with Fidelity. Can I stay with them? Or is there a better option? Does the rollover happen automatically? Or do I need to initiate it? I've never done this before.   EDIT: Thank you for all the helpful responses. This has been very insightful.

When leaving an employer, you have three options for your 401k: Leave it where it is. They may charge you an annual fee for this, but it depends entirely on your current employer's specific plan. Roll it over into your new employer's 401k, if any. This will let you keep all your money in just one single 401k account. Your new employer's plan administrator can help you with this. Roll it into an IRA. Fidelity, Vanguard, Charles Schwab, etc all offer great options here, and they will help you with the paperwork to make it happen. As a general rule, you will get the best customer service from the company/plan you are trying to move money to, as it is in their interest to help you make the transfer.

You should find out if your previous employer will let you keep your money there and if they will pay the administrative fees. Nearly all large companies pay the admin fees which add up to 1-2% of your 401k every year. I've kept my money with a previous employers account for four years. It's saved me $10,000 in fees I would have paid if I had moved it to a privately held account.

personalfinance

hooperz

t3_4e6p9n

flexible_dogma

d1xhaw1

EricFinanceGuy

d1xo0jl

(US) Is applying for a Discover IT card really a good deal?

I received a letter from Discover about their IT card today. It talks about how students can receive 20 dollars cash back for keeping a gpa over a 3.0, which seems like a really good deal to me because I have excellent grades. I have no credit right now since I just turned 18 so I'm looking to establish my credit. I have a good paying part time job making roughly 375 a month, I also babysit which is about 180 a month. Does anyone having personal experience with this card or have any advice? Thanks

From what I'm seeing on their site, it's twenty bucks cash back, not 20%, otherwise I'd have to enroll in some community college classes lol. If you don't have credit you may want to call them first to see what their requirements are for approval rather than wasting a hard inquiry on your report for something that's a solid no. Discover isn't as lenient as your bank/credit union or maybe Capital One would be (given your lack of credit history). That said, I have multiple Discover accounts and have always enjoyed my experience with them. Great cash back promos and their customer service is top notch.

Discover does have some very good rewards (ie rotational 5% cash back), you are also able to monitor your FICO score with discover. I would be careful getting discover as your 1st credit card because it isn't accepted everywhere. You might want to start off with a master card or visa which is more widely accepted. If you only have the discover card you might run into situations that force you either to use your debit card or cash. Which isn't a bad thing but credit cards are usually more secure and offer more benefits compared to a debit card or cash. Either way congratulations on your 1st credit card, but just remember: Don't spend more than you have in your bank account and Pay your bill in full and on time every month. Good luck!

personalfinance

kellysweatshirt

t3_3tne7c

Pm_me_some_dessert

cx7mu1l

Fluffy_Gorilla

cx7qawr

Buying a new vs used car for about the same price

I'm about to purchase a new car but I don't know if I should go used or new. I have been looking around and I've noticed that some new cars are similar prices to older ones. Is there any benefit to purchasing one over the other,financially wise? I am looking to spend ~$300 but can afford more if need be.. Edit : after reading all these comments I decided to go cheaper and used. I plan on getting a honda civic for ~$8k, possibly cheaper with some negotiation. Thanks for the advice.

I am looking to spend ~$300 but can afford more if need be. Never look at purchasing a car through just a monthly payment. That's how people get tricked by the shady car dealers into 7 year loans with interest rate of 13%, all while trying to keep the monthly payments right at the set level. Decide how much car you need, and can afford based on your finances. New or used is often discussed, and it all should come down on how you get a best deal.

Firstly, what are you planning on doing with the car? Do you need it to get to work or would it be okay to have the car hung up for a little while for repairs? If it's the later with low expected distances just get the cheapest/safest vehicle you can and save up for something nicer later. Second, once you've gotten a grasp on what you want in a car get a quote for insurance on your top 3 or so choices. You'd be surprised how much different the cost of insurance could vary on similarly priced vehicles.

personalfinance

biggiesmallztough

t3_2a1qm9

ed_lv

t1_ciqmt0x

ciqmt0x

1enigma1

t1_cir4207

cir4207

Marijuana and Gold

Figured I'd throw my current buys out there, and see what anyone has to say. For marijuana, my hopes are set on BLOZF, which is a company making breathalyzers for weed. I imagine that will end up being used within the next year or two, so it should end up paying off. Another is MSRT, "MassRoots", an app that is basically like an Instagram for stoners and also helps people locate dispensaries as well as rate different strains. Apparently they just got a contract with Aphria, a big name in the industry, so I imagine it will expand. Another random is one my dad got me to invest in, called WRN, Western Gold and Copper. They've been drilling into a mine in Canada for what feels like forever now, but they are finally starting to take off. I recommend looking into these companies. One I wanted to see if anyone knows about is CPRX. It's a medical company, no marijuana involved. Another my dad told me about a while back, I've mostly lost money on it, but I'm still wondering if it has any hope. Let me know what you think. Thanks!

You're right on the gold company drilling for "forever"...it's a gold company thats how it works. Put billions of dollars into the ground for over 10 years and hope to come out with something. As for MassRoots, you're buying a tech platform, if you want to buy into the marijuana craze i suggest buying marijuana companies rather than a company whose product is based on location of dispensaries (google maps?).

Cannabix licenses some patents and have created a few prototypes, though they arent exactly unique as other companies are creating them as well. I also dont even think the breathalyser findings are usable for anything. Its like a test for alchohol that says you had drinks over the weekend, its not really useful.

stocks

abstractnoodle

t3_5euhdp

Flytoskala

dafeejl

[deleted]

daftt8w

Anyone here a fan of financial author Michael Lewis?

The Big Short is pretty much my favorite book about investing, with Lewis' other famous book, Liar's Poker, a close second. [

So I recently read Flash Boys, after working in that industry for 10 years- just left right before he published it. Lewis can tell a damn good story. But if you notice, there is a distinct pattern to them- there is always some hero, usually an underdog of sorts, who wasn't really chasing it but just kind of fell into the situation. Real life isn't that clean. In the case of Flash Boys, what he wrote was mostly accurate. But he only really talked to one small group of people at RBC, who also happened to be opening a new exchange- he only got one side of the story, despite there being several well-known figures from the HFT world that he could have talked to. The strategies he talks about in that book are one tiny piece of the HFT puzzle, and I don't believe any firms employ strategies like that anymore, at least not profitably. So yeah he is an entertaining writer, and mostly gets his stuff straight, but don't go quoting his stuff in any kind of serious discussion. I wouldn't use his work to even try to form an opinion- I mean you can, but in the two books he wrote that I have had "insider knowledge about" (the Big Short being the other), he really only tells a single side and leaves a lot out.

I've had The Big Short on my nightstand since Christmas but I still haven't gotten around to reading it. I have a lot of trouble getting into financial stuff like that.

investing

MuffMagician

t3_26uzem

kevstev

t1_chutlm2

chutlm2

bcrabill

t1_chuvg4u

chuvg4u

ELI5: the concept of trickle down economics.

I don't care if it works or doesn't work, I just want to know what the idea is and how it claims to work

The idea is that money flows downward--that is, it starts at the top (business-owners), flows down through employees (which then become consumers), and then back up to the top again (as consumers spend money at businesses), so the cycle continues. The concept of trickle-down economics (which is really a pejorative term; the real term is "supply side economics") states that if you give tax breaks and economic incentives to the people at the top--that is, the very rich and/or businesses--they will use that money to create more jobs and pay their employees better, which translates to more wealth for the middle class and more consumer spending. The problem is, though, that it's really just an excuse to give those people incentives--they don't create more jobs with it, or pay their employees better. They might invest it in the stock market, but ultimately the money isn't sent down the line, it's hoarded at some point.

If the government wants to boost the economy it can do so by making more money available to citizens in the hopes they will use it in a way that increases activity in the economy. There are complications and shades of gray but, for ELI5 simplicity, they can either give money to poor people who will generally go out and spend it, making the economy better by increasing demand, or they give money to rich people who will generally invest in growth of new or existing companies, increasing supply. "Trickle down" is really called "supply side" economics. The government is trying to make more money available to the people who generally create the supply of goods, ultimately boosting the supply, boosting the economy enough that everyone down the chain ultimately benefits. Giving money to rich people is usually not done directly, it is done by lowering the income tax rate, either on investment income, on corporations or on the income of rich people themselves. It can work if there is a lack of money available to invest, holding back the expansion that would help the economy. That's kind of a rarity, though. Usually a good investment will always attract investment money, even in hard economic times. Also, increasing the supply is really good only if the supply is short. There would be little benefit at all (even harm) to increasing the supply if the additional goods cannot be sold. That doesn't hold for the reverse: increasing the demand is a virtual guarantee of ultimately increasing the supply. That is probably a better boost to the economy, but too often people in the real world don't run out and spend the extra money like the government hopes they will, so demand side is okay but historically also has less success than the textbook says it should have.

explainlikeimfive

mjmesco

t3_5io8bv

km89

db9nsxu

picksandchooses

db9te6n

People who have taken time off in their 20s/30s

Hello FI community! I’m curious to hear about people’s experiences who have taken >3 months off relatively early in their career and then gone back to work. I’m currently 25, recently hit my 3 year anniversary at work and have been getting increasingly antsy to take several months/a year off work to travel, visit my family, etc. I’m worried though about finding a job after because I’m so early in my career and I’ve heard that employers are skeptical about “gaps” in resumes. I’m not too concerned about finances as I have enough saved up to last me a few years. Who has done this? How was your experience in the sabbatical and finding a job after? Thanks!

I quit my low-paid corporate marketing job and took a part-time/barter job on a horse farm when I was about 28. I liquidated $7,000 in stock options as my backup cash, and made it last the entire 2 years. Housing was free based on doing designated farm chores, and I made a small income from teaching lessons. All in all, I worked about 20 hours a week. At the end of it I applied to law school, attended on scholarship, and began a completely new career. If anything, its been a positive, or at least an interesting thing to discuss in job interviews. It also made me realize I absolutely AM cut out for early retirement, I don't get these people who are "bored" without work. between cooking projects, crafts, reading, and just staring at the mountains, I was plenty busy.

I recently decided to move out of my HCOL city to a LCOL area. I have a job in the new location so not really taking a year off from work -- but I see it as a way to collect my thoughts, learn some new things -- plan is to move back to HCOL area in a year or so.

financialindependence

msrj4

t3_7ll2c3

cantcountnoaccount

drn7jug

Guywalkes

dro71n0

Got rear ended while my friend was driving. I had to go to the doctor's and get an MRI. Who's supposed to pay for this?

This happened a few months ago. The guy who hit us was at fault (he was texting and driving). It didn't do too much damage but still shocking nonetheless. My chiro recommended I get an MRI to check for any damages. I sent everything to my insurance and they sent a letter back asking about all the parties involved. Not sure what to do or who's supposed to pay for this.

Doctor here. MRIs are expensive and need to be ordered by an MD. I am not going to weigh on the controversy surrounding chiropractic. However MDs handle this specific issue much better. MRIs are for medical problems, you need a medical doctor. EDIT: I should have mentioned DOs are also just as qualified as MDs. I think of them as the same thing so I forget to mention them.

What state are you in? It's going to dictate who pays your medical bills. I'm an attorney in Michigan. Here, your own or a resident relative auto insurer pays your bills before the owner or driver of the car you're in, regardless of who was at fault for the accident.

personalfinance

Ackwardness

t3_560icx

IdRatherBeTweeting

d8fbvmj

mansquito1983

d8fvnrh

How is a Salary of 30k Peanuts?

Just a question from a simple youngster starting out in the job market. Now I know what low pay is (I'm a cook), and 30k, to me, looks like a lot of money that I could save. Would you say that this view predominately comes from the perspective of someone supporting his/her spouse and/or kids off one income stream? In this case I can definitely see how 30k is low. In my case, I don't plan on owning a house anytime soon or within the next ten years. I don't need a nice car and I've even thought about getting a scooter or bike to get around town and using my old Camry for long distance. I own a simple cellphone, I don't watch TV, and if I didn't work at a restaurant I would cook all of my meals at home and cheaply. I use the library. I don't smoke and I rarely drink. These things are not temporary annoyances that I hope to fix someday with more money, I recognize that this is the type of life I have to lead if I have any intention of saving money, however small the amount may be. So am I missing something? Are there some hidden "grown-up" fees that I haven't hit yet? I suppose my thinking will change when I have a child, but by that point I would hope to be a chef and maybe make 30k, so...

30,000 peanuts a great, but somewhat odd, compensation package from an employer. According to the Georgia Peanut Commission, you're looking at roughly $950/ton in the open market. I'm not quite sure how that works out in terms of weekly income, but I think the first thing you're going to have to deal with is storage, unless of course, you can find a buyer who's willing to accept 30,000 peanuts on a yearly basis.

Provided you get health benefits and aren't you should be able to do fine with your salary. You won't live like a king and you'll have to be slightly frugal if you want to have a decent amount of money. Take advantage of a retirement plans like a 403b, put in a little bit of money every month and you can watch it grow. I'm making about the same and going to grad school, but I live with my parents and pay basically half of what a normal rent would be. That in mind I have some money saved up and right now enjoying a (cheap) 7 day vacation. Just be smart and save your money!

personalfinance

elmango

t3_ikkf3

[deleted]

t1_c24ho7s

c24ho7s

[deleted]

t1_c24jv6v

c24jv6v

What is the best credit option to earn airline miles?

Wanna make the dollars I spend be a little more useful. Credit card*

I like the Capital One rewards card. You get 2 "miles" per dollar spent. And you can use it to simply erase travel purchased using their conversion. For example, I could buy two airline tickets for $700, and then erase it from my card for 70,000 miles. This also works for hotels, rental cars, etc. This way you just book it as usual without having to go through the CC companies website.

Your best option is to get rid of your credit card and save up money to go where you want to go. Credit cards offer these incentives for the same reason that you would put cheese in a mousetrap.

personalfinance

Zillapede

t3_33t0t1

Capt_Riker

t1_cqo5cm1

cqo5cm1

Jake8957

t1_cqo6hk2

cqo6hk2

Hospital still has not sent a ~$3k bill more than one year after the procedure was performed.

I was wondering if anyone has dealt with this problem before. I had a procedure done in September of 2017 and knew that I would be on the hook for a portion of the bill. More than one year later, I still have not received the bill. I was sent paperwork that showed what I should expect the bill to be, called ~6 months ago to confirm the bill was on their books, the works. They said they were still trying to figure something out with insurance. Obviously, I’m not excited to rid myself of several thousand dollars, but I don’t want my credit to take a hit if they suddenly decide I’m delinquent. My main concern is that I moved since I gave them my billing info. Should I just update that info and continue to wait? Push them to get it sent out? Thankful for any advice!

Call your insurance to advocate on your behalf. Usually medical facilities are contracted with insurance companies to bill them within a certain time frame, and if they don't do it in a timely manner (can be 3-6 months sometimes) they have to write it off or appeal to the insurance company as to why they couldn't do it in time.

Definitely contact them and update your billing address, then ask for a status on the bill. They won't send you to collections without adequate notice, I had a procedure done a few years ago and remember getting the final bill at least one year later.

personalfinance

DOGGODDOG

t3_9ufwgp

jonnygozy

e93y719

WakkoLM

e93yc4z

$5,000 for 10 minutes in the ER

In August of last year my dad took me to the ER because the skin in my hand stated to blister and peel off. They sat me down for ten minutes looked at my hand and sent me home with some anti itch cream. I move out of my dads place not to long after that and about a month ago he sent me a letter saying my hospital had gone to collections. They are charging me 5000 dollars! I had no medical insurance at the time but the nurses had told me at the time the hospital would cover it so I didn’t even think of it after I moved I tried to look for some sort of paperwork from the hospital but literally threw everything away when I moved. There’s absolutely no way I can afford a 5000 bill but I also don’t want to mess up my credit. Is there anything I should be doing to get my bill out of collections?

First of all, having no medical insurance NEVER means the hospital is just going to forgive your bill. It means that they will try every way possible to collect it and eventually it will go to collections. Different from other debt, they will not garnish wages or other stuff like that, but it's still your debt. Second, this is an important thing to realize that the emergency department is for emergencies, there is always urgent care and community clinics which are $200 a visit as compared to wasting ED resources. Now to get to your question. Go or call the hospital financial advisor office. Explain your situation, they will lower the bill, and they will work with you to come up with a payment plan. I know some things can look a little scary, but let this be a lesson to 1 prioritize getting medical insurance, one never knows when their appendix will act out or get into a car accident. 2 familiarize a bit more with what services you can get in ED vs urgent care vs your doctor's office Good luck! Don't freak out, it will be ok.

Call them. Tell them to can't afford anywhere near that. Offer to pay $250 or so. Tell the, you know that an insurance company would likely pay no more than 10-20% of the bill they gave you max. See if they will agree to $250-$500 up front or a payment plan for higher amounts. Hospital billing is a fraud and personally should be illegal what they do. Someone with insurance the hospital would likely get $500 for what you described.

personalfinance

ethnicthunder

t3_9mhn5l

pinolis

e7exyv3

Flymia

e7fns9b

Here’s to the wildest market in history! If 20+million unemployed doesn’t drop the market why would Apple, amzn, google and Microsoft missing earnings?

AAPL320 or MSFT185 6/19 call!! No significant pullback until we test all time highs!

You have this completely backwards and wrong. The market doesn’t care about unemployment because everyone is getting paid still. The market will have a spasm if earnings are worse than expected because literally 25% of spy announcing this week. That’s when you feel the rug being pulled from beneath your feet. Probably Tuesday.

Pokimaine = Sell-Off Stoolies = Rally Oh no, this is the top isn’t it boys? I haven’t reloaded puts yet so I wouldn’t be surprised if this was the week it zooms right past me

wallstreetbets

Madharder

t3_g8f6uy

Bravefan21

fonbkdu

NAh94

fone09y

Tesla stock patterns

Hi! A few years ago I purchased a few shares of Tesla stock and since then I've been observing some patterns. It seems that there's a direct correlation between oil prices and value of the stock. When oil prices are down, the value of the stock goes down. Is there any reason why I shouldn't be buying more stock when oil prices are low, and selling when they're high? I feel like I could have made a lot of money just by following this simple idea. Am I missing something?

Sounds like you should check out Markowitz portfolio optimization. Its more or less a formula to calculate the correlation of different securities to establish an efficient frontier between risk and reward of your portfolio's correlation coefficients; essentially selecting assets that are less likely to lose value at the same time.

You're not missing anything, you are right. Tesla is an electric automotive and energy storage company. They are in direct competition with oil companies and generally any company producing energy. With oil prices down, the competition is becoming more affordable. This is a direct hit to Tesla. So, when you see low gas prices and low Tesla stock price, it is not a coincidence. But, this also doesn't mean you found the golden ticket. How do you know when gas prices will go up anytime soon if ever? When gas was around $60 a barrel, everyone and their mother were saying to "Just give it two weeks." What have we seen? Oil prices almost cut in half since then.

stocks

Rhoso

t3_41s1tq

Dmonster98

cz4qenl

blulev

cz4x92r

TESLA WHY DO YOU DO THIS

I legitimately thought his news would cause the price to go up. If not go up, at least stabilize. Do investors not like the news of the Model 3?

Everybody thought this > stock already wildly overpriced > market movers look at this and see a nice opportunity to close/reduce long positions and open short positions today > they make millions > average people who speculate and are incapable of higher thinking lose out. Repeat ad infinitum.

As much as I love the Inverse Cramer Theorem, I think he was right when he said you needed to drop acid for TSLA to make even a little bit of sense. That said, it's not too crazy to think a stoxk this ridiculous would just jump straight back up on Thursday.

wallstreetbets

xXTheCitrusReaperXx

t3_6l19wz

Martin5hkreli

djqb3ip

8kenhead

djqt6bl

This doesn't make sense

I'm new to this be easy on me... Can someone explain to me how a stock price is up 2% on the day but my call options are red? I called my broker and the operator said it's all computerized and accurate but I feel it's clear market manipulation. Thoughts? Did this happen to anyone else here?

Mr. Broker sir, my option isn't up, can you check the computer? I feel like I deserve it to go up. I didn't check the greeks and don't even know what they are, but here I am playing options! This has to be the MMs working against me.

Are you in or out of the money? When is the expiry? All questions that are relevant to your situation. If you made a call for 500 when the stock is only at 398 and it expires tomorrow, then yea it’s likely your call is shit tanking.

wallstreetbets

useagle23

t3_99nuzd

RTMidgetman

e4p0vyo

WolfofWhistelin

e4p17k0

Where do you think the market goes from here?

Do you think that was it as far as coronavirus jitters and that the market resumes its upward trajectory?

I think we're probably in for a correction as the coronavirus impacts supply chains and quarterly numbers. I'm still mostly in stocks, but have increased bond exposure as of late.

Money is still cheap. Companies and people can borrow money and get a greater return on investment than the interest charged on that borrowed money. When that stops, and it may take a market scare to do it, we will see a recession.

investing

MarkBrooklyn

t3_f9wkqz

HughManatee

fiuf57s

brownck

fiuouvf

Dividend Growth Portfolio in Roth IRA?

Hello, I am interested in building a dividend growth portfolio and am wondering if I should build it in my Roth IRA account or my regular taxed brokerage account. I contribute to my 401k and also would like to have a separate portfolio for regular growth stocks.

Depends on what you’ll do with the portfolio. If you’re not going to rely on the dividend income until retirement, it would be more tax efficient in either the Roth IRA or 401k. In a taxable account, you’re paying taxes on the dividend distribution and ordinary dividends are taxed at your normal tax rate bracket.

I'd invest in good companies regardless of whether they pay dividends or not. Assuming you are young and have a long horizon, buy more growth orientated companies or just the entire S&P 500 rather than focusing on income. There is no real reason to do that until you are closer to retirement. Remember, dividends are not free money.

investing

dark3stxhour

t3_e7fgxj

dadrewsky27

f9yrm21

atdharris

fa2cexm

Gave my 2 weeks, and agreed to help out even after starting my new job

Hi everyone, I got this job straight out of college and have worked here for 3 years. The company is only 6 people, and in a very niche market of the nuclear industry - we have only 2 competitors in the country. We're in an extremely busy period, and one employee just left a month or two ago. Really terrible timing for me to quit, but what can you do :( A subset of the company's work is even more specialized, and only the owner, one coworker, and myself know how to do it. I have a large portion of that work on my plate right now. The coworker is completely swamped on one project, and the owner does the work of 10 people and is far too busy to take over my stuff. This isn't something they can hire out for. Any new employee would start from scratch, unless they came from a competitor (not going to happen). My leaving is an enormous blow to the company. It sounds conceited, but it's true. Because of all this, my boss asked if I could continue to help out with those projects after leaving. I said yes, and that's as far as the conversation went. Now I'm faced with the financials. Am I doing this out of the goodness of my heart? Will I continue billing my hours at my salaried rate? Will I become a contractor and earn a contractor's rate? In such a small company, there's no clear procedure here. Sorry for the lengthy explanation! Any input is appreciated. Thanks!! TL;DR - Leaving a very small and very specialized company. Agreed to continue to help out with my current projects, even after starting the new job. How does this work financially?

You need to make your boss sign something saying they will pay you as a subcontractor at XX rate. Feel free to make this higher than your salary was. You are doing them a favor. Get this signed and it writing before doing work for them beyond your last day. DO NOT do any work for free. Also make sure any requests for work with est time to complete is agreed upon in writing before staring to do the extra work.

I would bill a daily rate. However many hours it takes on any given day doesn't matter. You touch work relating to your old project, for any amount of time at all, you bill your daily rate. Only you can know what is a reasonable rate, but do not bill hourly. When you need to work on something, even just for an hour, it can interrupt your day moderately to severely, hence why you want consideration given to this and it can only really be captured in a daily rate (which should be on the premium end). As a starting idea, find out whatever your salary worked out to be on a daily basis, then double it. I briefly worked as a compliance contractor and we billed out a daily rate. If we did anything at all on a given day, we were paid for the entire day. In our field, contracting rates are roughly double-triple on a daily rate basis compared to salary. Your field is very specialised so you hold the cards and can charge whatever you like by the sounds of it.

personalfinance

damped-HO

t3_58hi54

Aajmoney

d90f94h

diego-d

d90g1s8

What was the best financial decision you have made?

I saw this post "What was the worst financial mistake you have made?" and I learned a lot by reading the comments. Which made me think we can also learn a lot by sharing our successful decisions

Married an extremely financially savvy woman. It is so nice to be able to talk to her about our finances and know we're on the same page. She's brilliant. I love her.

Going abroad for 15+ years, and taking responsibility for making my own way and building my own consultancy. Enjoyed much lower (and more flexible) taxes than here and a lower cost of living. Taking advantage of forex fluctuations in the 90s; the easiest money I ever made. Maxing out my 401(k) when we moved to this country. Marrying someone with a congruent financial style.

personalfinance

s123b

t3_2hf9b0

Lurkalo

t1_cks5gep

cks5gep

TheYellowClaw

t1_ckstuyh

ckstuyh

My dad plummeted my credit score at age 11.

Hi I'm bringing bad news and need advice to fix it. I am currently 18 years old. I recently was looking for apartments with my significant other and spoke to my mother for advice about what to ask and to save. My mother told me I might want to check my credit score before I do any applying because she thought my dad had taken out something in my name. Turns out my mom was right, the first and only thing on my credit score was a debt that was worth over 1200 dollars. It was from a cable company that he had apparently made an account for so he could get 3 cable boxes. He never returned those cable boxes and to this day I have no idea where they are. What do I do? UPDATE: Thank you to all of the people who have so graciously taken the time to try and help. You guys are amazing. I have filed a dispute and should hear back within the month. Until then I am gonna talk to my father about all of this.

I recently found out that I had debt as well from a relative doing something under my name when i was 14 years old. I found out when I signed up for credit karma but I just did a dispute through them and wrote that I had no knowledge of it and that I wasn't even 18 when it was created. They removed it no issue

It's not your debt, it's your father's. You can definitely dispute it. "I was 11 when the debt was taken out" is a pretty sure-fire win for you. However, there is a relationships element to this. Often you need a police report for identity theft to get something removed from a credit report. How is your relationship with your father? Is him going to jail over this an acceptable outcome for you? You might need to weigh giving him the chance to pay off the debt and hopefully compensate you for whatever hardships you encounter due to the damaged credit, until it falls off your report, if you're not okay with that.

personalfinance

goodniteskye

t3_au1ilo

Casuistry1248

eh4wiwb

pianojosh

eh5gbyo

What does your monthly spending/budget look like?

My wife and I are discussing how it is possible to save close to 50% of our income for retirement. I make $100k/yr but still can't see how 50%+ is doable. If you're saving 50%+, I'm genuinely curious to see what your monthly budgets and expenditures look like... Even if it's just your spending "categories" and not amounts it would help (although amounts would make it much more real for me). Thanks in advance for your input!

Everyone in this thread is so frugal. I am envious of these savings rates! Compared to you guys I am reckless with money, but compared to other people I know I live a spartan lifestyle. So does no one buys gifts for holidays, or decor for their house, new games/technology (phones/laptop/tv's/computer upgrades), have hobbies, go to movies, buy new clothes, personal hygiene products, doctors visits, budget for home and car repairs and eat out somewhere nicer than say, mcdonalds or chipotle?

My wife and I are certainly not at 50% now. We used to be pretty darn close before buying a new home. But we live in a high COL area and just bought a new home. At the end of the day, we love the idea of FIRE, but not at the expense of our lifestyle. We could have bought a home in the suburbs for $200K less, but would have had an hour commute each way into work, so instead we bought a home in the city. I could drive a 10 yearold car, but instead I drive a BMW. We could make all of our vacations camping or road trips (we do plenty of that too) but we like to do one international trip each year. At the end of the day, any savings rate is really possible, but it's a matter or priorities. My wife and I make about $300,000. We take home about $175,000. We max our retirement accounts, $36,000 + matching. We invest in taxable accounts about $30,000/yr . We save about $10,000/yr for future investments. We donate another $15,000/yr. Either opportunistic investments, an investment property, etc. Our big monthly expenses are: Housing Expenses (Interest, principal, insurance, taxes): $5050 Cars(2): $800 (paid off in 1 and 2 years, then this will go to investments for a while) Student Loans: $250 (to be paid off in 4 years, low interest) $3500: Everything else. Vacations, groceries, cable, TV, travel, cleaning service, cell phones, etc.

financialindependence

-lloydchristmas

t3_49av5n

WizzLMan

d0qmxni

Psycik99

d0rf8se

Is 40% of gross income ever justifiable for rent?

Hello r/personalfinance! I need to move next month, and am currently trying to decide between two apartments. One is in the area that I'd like to live in, has all of the features that are important to me, has just been remodeled, and is generally a nicer place. It also has an excellent gym on site, which would decrease the odds of me getting a gym membership during the winter (I live in a very Northern state, where running outdoors often is impractical from November through March or so.) With all utilities, internet, laundry, and parking costs, it comes out to close to 40% of my gross pay. The other apartment is somewhat outdated, slightly outside of the area that I'd prefer to live in, and has no gym, but has the features that are priorities/"necessary" for me. It's also in an apartment that mostly caters to the 55+ demographic, and I am in my early 20s. When I toured the unit, the leasing agent specifically pointed out to me that the complex has quite a few activities, but that most of these would not be, "of interest to my generation." This first apartment, with rent, utilities, laundry, and parking added into my calculations, this apartment would be about \~36% of my gross income. I know the general rule of thumb is not to spend more than \~30-33% of gross income on rent. However, I have been tracking my expenses through Mint for several years and am confident that I would be able to continue my current savings/retirement contributions (\~20% of gross income between 401K and HSA contributions) without spending more money than I have. I would expect to still have a couple hundred dollars left over at the end of each month to put towards short term savings. I live fairly frugally (other than my apparently expensive taste in apartments,) have no student loan payments, and paid for my car in full. I do not have any friends who are financially-stable enough to trust as roommates, and would not feel comfortable signing a lease with someone who I do not know, so a roommate is not a great option at this time. If the general feel of the subreddit is that neither of these apartments are a viable option, my next go to option would be to search for something cheaper and accept that I would be less happy with my living space without the couple of features that I care about. I would appreciate any feedback about this decision!

Things to keep in mind: 1: If you can avoid owning and paying for a vehicle and roll transportation budget into your housing budget, it's ok to exceed the 33% rule 2: If that isn't applicable, then no, it's not financially wise 3: But what is financially wise is not always the most important thing to do. The point of this sub is to give you advice that is strictly financial, and then it's up to you to weigh that against other aspects of your life and come to a final decision about what is right. Finances are just one piece of your life

40% of gross pay on housing is unfortunately becoming a norm, so don't feel like you're the only one: Provided you are still hitting your targets on your 401k/HSA, I think 40% is a less-than ideal yet entirely justifiable scenario.

personalfinance

totallynotawhore

t3_9cd1t0

lol_admins_are_dumb

e59s133

jevidon

e59xb29

Craigslist Scam: Need Help

Query: I am a realtor and I have a listing that is pending. Someone with the address (fastgrace at outlook) keeps posting a scam on craigslist with my listing as a rental. Normally I would not care, as these things are obviously scams, but I am having several people call thinking it is real. Today I had someone who had already started her moneygram, but hadn't given fastgrace the confirmation code yet. Craigslist has done nothing to help, save for telling me to find the listing and click the prohibited button. So I beg the brilliance of reddit to help with shutting down that email address in some way. Thanks for your help. I can show you the email received from the perpetrator.

A bit out of the box suggestion but perhaps see if one of the local TV news stations wants to do a consumer alert type story. You would need to be willing to be interviewed. But hey every realtor I know loves publicity lol.

There is not much Craigslist can not because it does not charge anything. The best you can do? Post something that tells THIS IS A SCAM everyday until you close.

RealEstate

kselliot

t3_3tbw7x

wamazing

cx4wcxp

mingfisher

cx4v8kf

I need a small auto loan for 4500. Nowhere will take me due to credit/ short length at current employer. Would trying lending tree be a terrible idea?

My credit is around 620 and I've only been employed at this place (my current job for 2 months.)

If you could pay it off in 4 months, can you just hold off for 4 months and pay cash? Doesn't make sense to me to get a high interest loan (which it would likely be with your credit score) if you can pay cash.

LendingTree can be good for some people to receive multiple offers, but most won't. And they will do a hard pull on your credit to see if you're eligible for any of their lenders which will cause a hit to your score even if you don't get a match. Personally, you may be better off joining a credit union. You may be able to get an auto loan, if not, you'll be able to get a lower interest personal loan than those offered by big time lenders.

personalfinance

mtbrider

t3_3ifuur

ChiantiAndFavaBeans

cug9fdn

purecyn

cugde2j

I am 24 years old and will eventually accumulate about 340k in educational loans at a 6.8% interest rate. Please help me.

First off my reasons for the debt. I want to be a doctor, I know other similar careers (nursing, Physicians assistant) would be much better financial choices but I really want to be in a doctors role who can pursue academics, research etc. Yes I know I can still pursue my academic interests in other fields but the bottom line is I only have one life to live and I feel I will regret not going for what I really want. As you probably know medical school is really tough to get into and really expensive. I didnt get in right away I went through a special masters program that fed into the universities medical school. Now i am a first year student at a pretty prestigious university. My masters cost 58K and the next 2 years will cost 120K the next 2 years after that will cost 160k. In the past this was okay because doctors made a ton of money but now some specialties are earning as low as 150k a year. If im being hopeful lets say I match into a high paying field like general surgery. Thats a 5 year period of making 50k and then making around 250-300K. By then my interest will be nearly 700k correct? How can I manage this from an early age? - I can do the military scholarship due to asthma

If you had the entire balance of 340k in loans at 6.8%, it would take you ten years for that to equal 700k. And that's with no payments being made whatsoever. So I'm not entirely sure where you got the idea it would 700k after you got out of school. On all levels, I am wholeheartedly against going into this much debt. But if you're in it, just make as much money as you can, live on as little as you can and put as much as you can towards paying that debt. You ABSOLUTELY will not be able to live the doctor lifestyle that you're probably drooling over for a very long time. The greatest benefit of this is if you do get out from under that debt and still don't give in to lifestyle inflation, you will be saving money like crazy.

Become an OB/GYN. They make ~$300k/year. It is tough to get into as a male for standard OB but GYN isn't too bad. Just know you'll be doing GYN on 50-90+ year old woman for the rest of your life.

personalfinance

doubledmantits

t3_ypra0

elliotrosewater

t1_c5xqlbi

c5xqlbi

jiqiren

t1_c5xrhsb

c5xrhsb

Being overbilled for an ER visit?

Last December I got a new job that had a 90 day waiting period for any benefits. I ended up getting getting short term health insurance with a $7.5k deductible until the end of March. Well, a week before my real insurance kicked in I ended up feeling sick, fainting, and breaking my nose on the fall down. I went to the hospital and waited for over 6 hours to be told, "You should really see a doctor." They also did an EKG and took my vitals, but that's pretty much it. I learned my lesson - next time I'm avoiding a hospital unless I'm actually dying. Anyway, I've gotten two bills so far. One from the hospital for about $1,850 that was knocked down to $650 after a little/no insurance discount. I got another from the physician for $1,200 where they offered 20% for paying within 30 days. When looking up the coded items on the physician's bill, I see the ER visit was coded as a 99285. Looking this up, I see this is the most severe ER code. I found [this article]( mentioning the misuse of the code, and this from a United Healthcare document: To use CPT code 99285 for billing, the presenting problem(s) during an emergency room visit are expected to include the following: medical conditions that are of high severity, are potentially life threatening, and require the immediate attention of a physician. From what I've read, it seems I shouldn't have been billed at this code. I've asked the billing office to reconsider, but they came back saying they agree with the code. What should be my next step? I've thought of a few options: Try and get my short term insurance to deal with it. Since I'm not going to hit the $7,500 deductible, it doesn't seem like they would work very hard to get my bill down. Email the billing office explaining why I think I'm being over-billed and ask (bluff) for the address to their legal office to give to my attorney. File a complaint with Office of Inspector General/JCAHO/State AG/Center for Medicare and Madicaid/Department of Health and Hospitals and wait and see if anything happens. Just pay the bill and get the 20% discount (Or try and haggle for a bigger discount).

I'm not sure you are going to get anywhere with the code; I think that is right on the money as losing conscious is a pretty serious symptom. That doesn't mean you should fight it, but be aware that billing department probably addresses these "false alarm" issues constantly. In the future: consider urgent care, not the emergency room (although in this situation I think you right to go, just as I think they coded you correctly). Good news is it was a false alarm (I hope!)....hope you are feeling better.

It's a lot but go to the hospital billing office and work out a payment plan. Ask their social workers if you have any other solutions because of your finances. They will help you out.

personalfinance

myfacehurtz

t3_33pcb1

Not_a_Mainer

t1_cqn441v

cqn441v

hadMcDofordinner

t1_cqndbrg

cqndbrg

When does it make sense to have multiple credit cards?

I've had a Capitol One card for several years now, with 1.5% cash back. This year, I picked up another card with better rewards in order to capitalize on things I buy a lot of, mainly food. So I got an Amex with 6% on groceries, 3% on retail and 1% on other stuff. I currently use the amex only at places with the special rewards/promos. And my Visa for everything else. Is this a dumb idea? I figured having two cards that I pay off every month will build my credit more, but it feels like I have the Visa for no reason. The extra .5% doesn't seem worth it. I would appreciate your thoughts on the matter

I have five (?) credit cards. Make sure you can keep track of them, keep em on autopay, and always follow the 1 rule of credit cards: Always pay the entire statement balance so you don't pay interest. Citi Doublecash has 2% cashback on everything. There are a few cards that have 2.5% cashback (USAA Limitless, if you're in a state and are eligible).

Paying off your balance monthly will be a very steep mountain to climb for building credit. Credit worthiness is given to individuals who accumulate credit availability, manage credit through a low balance and timely payments. To increase your credit score, increase credit dramatically over a lengthy period of time to avoid too many credit report pulls. Your goal is to continue to increase your credit limit on your current cards and add a card from time to time till you reach 4 to 6, with limits into the tens of thousands (combined, unless your income calls for it) this process over a several years will give you a great credit score. Do not use credit for things you can't afford, use it for the reward and keep a minimal balance. In other words, have to pay a little interest from time to time.

personalfinance

CarmakazieCthulhu

t3_7x7e0m

persondude27

du62yhg

cvega88

du62wn8

Good day to max out Roth IRA for 2013?

Since this Fiscal Cliff deal was reached, the market seems to be doing quite well today. In the past, lump sum investing in my IRA (Vanguard 2050) has benefitted me more than dollar cost. Would today be a good day to put a big chunk of my $5,500 in? Is it best to wait a few days and see if things settle or go back down? If I go in today, and it continues to go up for a few days and somewhat hovers than it would benefit me quite nicely... but there lies the risk. What are you guys doing?

every year.... just put the money in as soon as you can the one year you get timing it right will be cancelled out by a year when you wait and the market rips in your face.... you've already made the assumption the market is going to go up over time as the years go by.....so you should be making the assumption that waiting weeks or months each year for the next 40 years to put money in an account in anticipation of the market going down makes no sense. spend your focused brain power on things that matter your going to drive yourself needlessly nuts trying to time the market in an account that is index correlated and capped at a few thousand every year

Check is in the mail for my Roth IRA. Crossing my fingers for a shitty start next week. If I were trying to time the market, I'd wait till the end of February(Fiscal Cliff Part Deux).

investing

dbernie41

t3_15u2jz

houle

t1_c7ptk5s

c7ptk5s

Knofbath

t1_c7q8w7s

c7q8w7s

I made a costly mistake

I purchased a brand new 50k Mercedes. + services + extended warranty + taxes + interest rate (2.8%) = 68K I gave a downpayment of 22K. Gotta pay the rest at 640 USD per month for the following 6 years. If I sell the car now, Im pretty sure I will only lose the 22k I gave as downpayment. When is it worst/better to sell it? Should I lose the 22K downpayment now and get rid of the car and the debt, or keep it and water down those 68K year after year.

Looking at you previous threads that you started - it seems like your biggest issue is self control. You need to learn that skill before you can actually mature as an adult.

Do you like the car? Can you afford the monthly payemnt right now? If you can afford it and you like the car, just keep it. A brand new car should last you 10 years.

personalfinance