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Kris-Fillip

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Which industries can actually be disrupted profitably?

Facebook and Google have been able to both significantly improve COGS and the product quality and user experience for the buyer. Many other disrupters have created better product experiences but struggled to find improved profits and trade at significantly higher PE ratios if they’re making a profit at all. WeWork = Office space Netflix = Media Tesla = Automotive Which industries do you feel present an opportunity for improved profitability and user experience?

Healthcare communications is absolutely one. Companies like teledoc moving in. People love it and it's much more profitable. Docusign and Adobe sign are absolutely a place as well. Digital document handling will revolustionaze similarly how digital check handling has done for the banking industry. Last but not least, even if it's furthest away, self driving cars. Waymo alphabet is looking real great there for the long run. All these are unprofitable because they are growing or developing, but are no doubt more profitable once in place.

Any industry with inefficiencies that can be resolved in a scalable manner. Is there an asset or something else that is being underutilized? A guest room that is empty except when your inlaws visit during xmas, a car that's only driven 2 hours a day when you commute and run errands? Is there information asymmetry that makes it difficult for 2 parties to come to an agreement? Hailing a cab visually relies on line of sight vs hailing on your phone means if the cab is a block over, they can still find out. Is there some sort of other friction that could be removed from the system? Is there a lower cost alternative. To me, however, the question isn't whether an industry can be disrupted. It's whether the advantage the disruptor gains is sustainable. They need some sort of moat. Otherwise their business model can be replicated and competition will drive margins lower.

stocks

tais0n

t3_e8pjqa

lykosen11

fadr0j0

protostones

fae1zhm

I'm interested in learning how to research and analyse stocks. Where to start?

Hi, fox! Like the title is suggesting, I want to learn how to research stocks, I've read The Intelligent Investor, Security Analysis 6th edition, I did read more books related to investing, but I can't find what I'm looking for. What books would you suggest me from which I can have better understanding of how analyse Balance Sheet, Liabillities, Assets etc.

There is the fundamental approach and the technical approach. Fundamental approach summarized: Research the business model of the company you are interested in, extrapolate their net margins over the next 10 to 20 years based on your most educated idea of their future profitability, and assign a valuation of the company based on this research. This gives you a market cap --- if the real market cap is more than what you think it should be based on research, then you think the stock is overvalued. If your valuation is higher than the real market cap, then you think the stock is undervalued and you should consider buying depending on how confident you are in your valuation. Technical approach summarized: LOOK THERE IS A GRAPH THAT LOOKS LIKE A HEAD AND SHOULDERS!!! BETTER SELL NOW BEFORE THAT RIGHT SHOULDER APPEARS!!!11! The technical approach is much easier to accomplish because it does not involve actually learning anything about the company, or really learning anything for that matter. You don't have time to research the company? Just look for an inverted triangle. Hope this helps.

You read The Intelligent Investor and Security Analysis and you say you haven't learned how to analyze stocks? Reread them and google every single term you know. Those 2 books are considered the bible of value investing

investing

almirla

t3_8qb0c3

daviddavidson29

e0hw7on

coocoo99

e0iri0e

Freelance client said they only issue 1099s upon contractor request. Why is this?

I checked in on 1099 status for one of my freelance clients and they said "sorry for the delay, we typically only send them to people who requests them." However, the amount they paid me last year is almost $4000 (well over the $600 minimum). We both have to claim this on our taxes, correct? Why would they not send this 1099 to me by default? This is for web development work. Just wondering if I'm missing anything here! Thanks.

You actually don't need to receive a 1099-MISC form to complete your taxes. They're nice to have, don't get me wrong - but all a 1099 really does is tell you how much money a person has paid you over the year. It's just a nice thing to have to verify your year-end totals. The reason why this form can be disregarded is that most 1099 income has no tax withholding taken from it. If you get $5000 bucks from someone, you literally get $5000 bucks and have to pay estimated taxes yourself. I had to go to an IRS office yesterday and talk to a clerk, and she said that 1099 forms that do withhold taxes is actually a huge flag for fraud at the IRS. So yeah, if you don't receive a 1099 don't sweat it. Just log in how much money you received and just go from there. I'm a website developer myself, too.

Well, I'm going to take a shot in the dark. Either, this place is so small that they don't have the manpower to prep every 1099 to vendors. OR, this place has so many vendors, that majority being corporations, that they don't know who needs a 1099 and who doesn't and after being told multiple times that its not needed, just gave up.

personalfinance

beeeees

t3_48etzg

anwserman

d0jaagt

ThatsATallGlassOfNo

d0k4608

How do I ask my boss for a raise if I am just an interim manager?

I work in the food industry at a chain restaurant. My boss has had a pretty rocky history with managers. Since he bought our store, he has went through 2 managers (both who worked for him before and still work for him) and both haven't done a good job, leading to him sending them to other stores. Since then, another worker and myself have been taking on the responsibilities of managers, i.e. managing the money, changing the "face" of the store every month, ordering product, etc... until the our boss finds someone who can effectively fill the position. Here is the issue though. I recently asked him if he found anyone to fill the position, and he told me that the store is running well, and he doesn't want to push anyone into the position, which I understand, but this isn't what we agreed. I am in college, and looking for internships as I have less than a year left. Already, these extra responsibilities are taking time out of my schoolwork and my life. Even yesterday, I had to stay late because a coworker didn't show up for work, and I lost a day on a paper I have to write. I was also at the store on both of my days off this week to help co-workers fix a problem that they caused with the money in the cash register. Long story short, I feel I can't keep doing this without a raise and I want to ask for one, but I don't know how. I would also be okay with splitting a raise with the coworker who is helping me with these responsibilities, because he deserves one too. I just need something to make this worth it.

I am in college, and looking for internships as I have less than a year left. Don't ask for a raise. Reduce your responsibilities to what you're being paid for and concentrate on school and landing an internship in your field. Your future is far, far more important than a shitty retail job that's getting you through school. Tell your boss you will be resuming your normal role and that you're willing to help with the management stuff when time allows, but stop staying late, coming in on days off, or putting in OT. This shouldn't be your focus.

every store is different, ever company works different and had different rules. can you tell them i'm doing what i'm paid, if you want me to do x i need to be paid for? can you stop doing things to force their hand? are you ready to start over as a peon and reprove yourself at another company? this is why i stayed too long at a retail position. i didn't want to prove myself again. and what i accomplished at the job was a lot but meant little to another company.

personalfinance

Choco-boco

t3_4n4tvv

nailz1000

d40vaoa

monkeyman80

d41vbsi

What is your take on AMD stocks?

So AMD have been a rocket the last year but where will it end? and how is China vs USA going to affect the stocks? My reason for liking AMD is simply because of the development processes of Chips and their general direction. In addition they are now ahead in many ways to Intel on their production technology by producing chips smaller than Intel is capable of. I see AMD climbing a lot in the future too. But i am concerned about the near future having a mayor correction. People are nervous and is buying gold.

Long term AMD is solid. They are putting effort in the right areas, and are opportunistic when possible without deviating from their long term plan. (I.e., stocking as much as possible during the bitcoin hype, but not changing their overall supply strategy to impact their expected chip sales). &x200B Today they will launch their new 7nm platform chip (Rome?), just as worries about Intel vulnerabilities surface for all chips made after 2012. &x200B They are a growth company and their P/E reflects that, but they have little to lose at this point. they are grabbing market share from Intel and doubling their share at this point is not unrealistic. We can expect them to at least capture 10-20% of the overall market. They are seeing growth in both consumer and server sales, as well as licensing designs to chinese companies. The last part, however, I don't see a valuable future play.

Short and medium term think be fine. But longer term I believe you will see the big cloud providers more and more doing their own chips. It just makes sense. It has started but just barely getting going. Google for example does all their own network silicon (Lanai) and their own AI silicon (TPU). Amazon is just starting to use their own ARM chips. Then we also have the RISC-V phenomenon.

stocks

Titsandassforpeace

t3_cn4pyn

issius

ew6yfsa

bartturner

ew8pnmb

High Income: Should I convert 401k to Roth IRA?

I know other parts of this has been covered elsewhere, but I'm struggling as to whether I should roll-over my previous employer's 401k into a Vanguard Roth IRA. As I understand it, these are the pros and cons: Pros: (1) Tax-free withdrawls on Roth IRA, (2) no forced distributions at age 70. Cons: (1) I have to pay taxes on the WHOLE amount this year, (2) Supposedly a Roth IRA is more accessible to collectors in the event of bad stuff, like losing a personal injury lawsuit. The 401k has a balance of ~$120k, and paying taxes on it all at once would suck. But 30 years down the road, will I be thanking myself for the pain? I'm mid thirties, $250k/yr, two kids and a wife. My tax bracket is high now. In 30 years I have no idea where it will be. Thanks for any advice!

but I'm struggling as to whether I should roll-over my previous employer's 401k into a Vanguard Roth IRA Roll it into a traditional, roll-over IRA (unless the 401(k) has some truly excellent fund choices). There are no taxes for doing so. You can call their support line and get help with this, too. The only other reason to not do this is if you're doing a backdoor Roth.

It comes down to whether or not you believe you'll be in a higher tax bracket in 30 years. Will you still be working? If so you'll be making just as much, if not more in income. That, coupled with the assumption that tax rates will likely continue to increase for higher tax brackets may mean that you're better off paying taxes now. If you won't be working, you won't have any taxable income aside from taxable investments and you're tax bracket will remain low, in which case, you're better off paying taxes in the future.

personalfinance

anonymousjohnson

t3_1hxz7k

arichi

t1_caz16j4

caz16j4

ralam

t1_caz7dsh

caz7dsh

I hear of parents stealing their kids' identities and ruining their credit from time to time. Could I do the opposite for my kids?

I dont mean can I steal someones identity, rather, could I open a credit card in my son's name and build a great credit history?

You could set up your son as an authorized user for one of your own credit cards, in case you're curious. Stealing his identity and setting up tradelines (e.g., loans, credit cards, etc) in his name only, though, would constitute fraud, which is a felony.

Couldn't piggyback on my parents because they ruined their credit scores. But I started with a student credit card at 16. Around age 21, my score averaged 770 so I'm paying that forward by putting my sister as an AU. Age 23 was when I did "App-o-rama's" and "churning" for sign up bonuses.

personalfinance

bear_Down67

t3_2a7etz

zonination

t1_cis80z8

cis80z8

okiedokie321

t1_cisuc7k

cisuc7k

r > g and FI

I am wondering what others think about this. Given Thomas Pcketty's now-famous formula, how does this relate to the goals of FI and the broader implications for social well-being. To briefly recap the little formula in the title: this expresses a relationship between the rate of return on capital (r) and the overall growth of the economy(g). We can think of the rate of return on capital as the annualized rate of growth on assets. Those who are pursuing FI would love to see an increase in r. On the other hand, the growth of the overall economy is directly correlated with the annual income of the average person. As we get closer to FI, we care less about this, since our financial well-being depends less and less on income and more and more on assets. Picketty warns that we are nearing a situation where r > g and that this is really bad for the well-being of the average person in our society, that it will drive greater and greater levels of inequality, and ultimately reinstate something like a modern landed aristocracy where those who have capital will experience radically different lives than those who rely on debt and income in order to survive. Picketty counsels that governments need to start taxing assets/wealth, not just income. Income taxes will do nothing to reduced inequality in a situation where r > g because the wealth of capitalists is not tied to income. Instead, governments that care about reducing inequality should tax wealth directly. Ok, so this prompts a few comments that are relevant to FI: 1- None of this should be surprising because the very notion of FI depends on rentier capitalism, such that FIers derive "rent" from accumulated assets rather than income. So FIers are the capitalists that are the antagonists of Picketty's narrative. 2- On the face of it, FIers should embrace a situation of r > g. In fact, perhaps they would counsel that everyone should get into the savings game so that we can spread the wealth around and the benefits of increases in r can be had by almost anybody. 3- On the face if it, FIers should be concerned about Picketty's proposal (and consequently his fame) for suggesting that governments tax wealth. After all, that is going to make FI just that much more difficult. But given theses considerations, how should we think about this situation from a broader moral and social perspective? Or, maybe, how do you reconcile your FI goals with the parasitic aspect of rentier capitalism? Are you looking forward to Picketty's doomsday scenario and cheering for a do-nothing legislature? Or are you concerned about the social implications of this scenario and willing to forego some personal gain for the prospects of a more equal society?

Are you looking forward to Picketty's doomsday scenario and cheering for a do-nothing legislature? Or are you concerned about the social implications of this scenario and willing to forego some personal gain for the prospects of a more equal society? Most definitely the latter. There's a short term benefit for us FI'ers who happen to be generally better off, but long term it's not good even for us. There's an interesting Ted Talk on the effects of inequality and how it harms not only the poorer within those societies, but also the rich. See [here](

Taxing wealth accumulation is the wrong direction to go. Taxation is effectively the government's way of discouraging certain behaviors. Do we really want to discourage the practice of saving? Widespread individual financial irresponsibility is already a huge problem, let's not make it even less attractive to save! Instead, we should be moving to a consumption-based tax system. Sales tax on everything except the basic necessities - primary residence, groceries, education, and medical care. That removes most burdens from the poor and eliminates all the loopholes for the wealthy. If you want to live a frugal life then you don't pay much in taxes, but if you live it up with private Yauchts/Jets and otherwise excessively throw around your wealth, you're gonna pay a premium for it. A tax on political donations would be outstanding as well, but I don't see that one as likely to ever happen. Essentially, I'd like to see accumulation of capital be restriction-free, but the use of capital itself taxed. The problem with income inequality is not that some people have more, it is that they can exert disproportionate influence with it. If you tax the use of capital as power, you cut the problem off at its source without negatively impacting everyone else.

financialindependence

smithzk

t3_2jf183

fifteencat

t1_clb46tk

clb46tk

kiyonisis

t1_clbilti

clbilti

Need advice!! Divorce finalized. Have 6 months to buy out spouse. Need at least $46,200.

So here's my problem.. my credit tanked the past 3 months from mid 700's to 652 b/c of credit card debt from attorney fees. I have $84k in home equity that I need to tap into. Ideally, I need as close to $60k as possible to pay her off and the vast majority of my debt associated with the divorce. Looked into Cash Out Refinance but would only be able to pull $30k from house.. Banks are denying me for home equity loans b/c of my "Excessive Obligation in relation to income even with paying off all revolving debt" My revolving debt is $15,568 with a $32k limit. Its frustrating because I have the equity in my home... I just need to get at it! Please help! Thanks!

Speaking from experience here. Sell the house because it was your marital home and needs to go. Sell the house because your ex will still feel some residual attachment to it. Sell the house because your next SO won't want anything to do with a house previously lived in by your ex. Sell the house and move somewhere that is undeniably your turf.

Can you try to get an agreement in the finalized divorce settlement to pay $xx amount in cash and then make payments on a regular basis afterwards? Can you allocate some other part of your divorce settlement (like, for instance retirement savings) to the payment instead? (This may not be the smartest financial move, either!). Can you sell a lot of stuff in the house to generate a few thousand plus, like says - pay the rest through hard work and sacrifice.

personalfinance

Damfino47

t3_3yskal

Slagggg

cygi9o5

double-xor

cygabzz

If flash crashes are just "malfunctions" Why do the markets always go down and never up 1000 pts?

So I just thought about this today, when the Dow dropped 1000 plus points a couple weeks ago, and also in 2010, it was explained as a "malfunction" but isn't it funny how these "malfunctions" never have wild, 1000 pt swings upwards?

Well many times companies set their algorithms such that if a stock drops a certain percentage it'll sell automatically. So if a stop drops in price rapidly, some stocks are sold automatically which causes more stocks to sell automatically. Usually companies don't do the same with buying.

Who is explaining it that way? It was not a malfunction. It was a brief moment of sobriety in the middle of an orgy. Also the market never shoots upward like that because of the psychology involved. The market is run by institutionals. They will never agree to such a rapid increase in pricing no matter how good news is. The markets have already priced it in. Until they haven't then they will gradually move upward.

stocks

VRgamer84

t3_806k3x

nickzakh

dutbsul

Rookwood

dutisox

A friend has asked me to lease a car, the down and 39 months of payment will be paid in advance. Why should or shouldn't I go for this?

This friend is quite well off.. but the friend just moved here from another country and doesn't have credit. So I was asked to lease a Land Rover Evoque. The down and 39 months of payment will be paid in advance. Why should or shouldn't I go for this?

You'll be responsible for any damage s/he does to the vehicle during the term of the lease; If they don't turn the property in at the end of the lease, you're responsible for the payments to buy the vehicle; If they were that well off, they'd just buy the thing; If they get into an accident you can be sued for their driving; It shows up as a debt on your name. This can make getting debt harder and less favorable for you; There is no bargained for exchange involved in this transaction. You're taking a degree of risk with nothing in exchange.

Take the money up front ... Go purchase this car for cash Profit From a financial stand point leasing is never a good idea ... you'll be paying 30-40% more than the vehicle is worth, then, at the end, if you want to purchase the vehicle, you have to pay them even more. It's just a dumb way to purchase something. Hell, rent to own is better than leasing.

personalfinance

kindanoob

t3_46y4tn

WaywardSparrow

d08owon

Holtonmusicman

d08yuvv

After 7 years with Starbucks, I'm cashing out my options, currently at it's 5 year peak.

[image remove] I'm due for 2 raises in a row due to internal restructuring. This will put me at the pay ceiling for barista, which means I will no longer be eligible for raises, I will instead receive a lump sum each quarter in addition to regular wages relative to the number of hours I work. I also have 80 hours vacation to cash out. I don't plan to stay with the company much longer, since I want to focus on my last semester of school. So I'm cashing out about 150 options, average cost of options is 17 (mix of 8 and 22), for a value of 9771.50, about 160 hours planned labor and 80 hours vacation at max pay scale ( about 13), roughly about another 2k with 70% take home, 1456, that's about 11227, enough to pay off my credit card bills, my student loans, and enough to start a 401k with 80 shares to hold onto. I have another job and some savings to last me until I graduate. My question is... am I missing anything? any advice?

Starbucks partner checking in, as a student you should be aware that at the turn of the year you are also eligible for the final year of the tuition reimbursement program, assuming you utilized it in 2014. As a 7 year partner that's an extra 1k for something you're already paying for (partners don't seem to be aware, but last year they lifted the requirement that your classes directly benefit your position within the company). Also, When you start the 401k, (assuming you're doing it with starbucks) in 2015 the company will be dropping the match down to 4% from 6%. Going to class now, will try to think of anything else...

As a general note, I would suggest cashing out options like this as soon as you are eligible. I don't understand the desire to "double down" on a company like this. If Starbucks fails you lose your job (or at least there's a higher chance of losing your job/less of a chance at getting a raise) AND you also lose out on a big portion of your investments. I wouldn't go so far as to say you should SHORT your company, but it isn't out of the realm of reasonable actions. If you DO believe you know more about your company than the market and that the "company will do well" then you should either a) get a job as an investment banker, b) loan out money to invest in the company because you have this extra knowledge and/or c) get investigated by the SEC. Either way, you're doing fine and selling these now sounds like a good plan.

personalfinance

Dome_Hepot

t3_2ndo97

Totemologist

t1_cmcse99

cmcse99

4672

t1_cmctgl3

cmctgl3

Is Buying a Vacant Lot and holding it for 3 years a good idea? (US)

Hi everyone! So I'm in Illinois, and I'll be in the market to either buy a house or build one in the next 2-3 years. But just casually browsing online brought me to a very perfectly located vacant land lot for sale by a local realtor near me. This got me thinking: Should I buy it now so that I have it whenever I'm ready to build? Or should I be searching for vacant lots only when I'm exactly ready to build? I'm assuming I'll have to pay property taxes yearly on the vacant lot that I buy, and that's ok by me because it so perfectly located near everything I like in a neighborhood I love. But what else should I be wary of before buying the lot? It's listed at $29k for 0.16Acre and there are already families living across the street from it and even directly next to it, so it's not isolated or brand new. Thanks!

Is it in a HOA development? Because if so, you will be required to build a house to their exact specifications. Not too big, not too small, certain styles only, etc etc etc.

check for flood plains, easements, utilities, etc. also may be taxed at a higher rate (residential lots in some areas are taxed say 7% while EVERYTHING ELSE is 29% in same area, so check that).

RealEstate

derpmcturd

t3_7z75yr

_Chimney_

dum2w1n

fifty2fifty

dumnsom

Call me paranoid but why does the Ameritrade Android app need permissions to take pictures without my knowledge?

Just went to install the app, and when confirming permissions saw this statement: "Allows the app to take pictures and videos with the camera. This permission allows the app to use the camera at any time without your confirmation." WTH

Its for automatic picture taking when you open specific categories like check deposit. It also does it for the barcode scanner. The reason why it says take your pictures without confirmation is that when you open up the barcode scanner, you dont actually click any button to take a picture but once it recognizes that a barcode is in the camera view, it takes the picture and the brings up the ticker symbol of that company.

Probably default language used so a third party app can use the camera. I don't use this company, but I imagine they have a built in check deposit feature using the phone's camera.

investing

radamesort

t3_1r7yt3

[deleted]

t1_cdkj7i5

cdkj7i5

RickyButlerMeatball

t1_cdkhifu

cdkhifu

Accidental Landlord: Time to cut our losses?

We are looking to move to a new house on the other side of the neighborhood. Our current home was bought during the bubble so we are looking to lose about $20-25k ($251k purchase) if we sell. The P/I, taxes, hoa and insurance are $1,750. We could likely rent it for between $1,400 and $1,600. Assuming we could handle a $200 loss every month just to build equity, is this a really bad idea? I know cash flow is the main factor when you are investing in homes (plural) but I don't plan on doing this fulltime. I'm just trying to recoup some losses on this house. We are 4 years into a 15 year mortgage. $158k left on the house. EDIT: Just to be clear. We could walk away from this house with $50-60k in hand. This question is more about whether waiting it out makes sense to get back to what we paid for the house 7 years ago.

You're on a 15yr mortgage, people don't get cash flow on 15yr mortgages. Cashflow numbers are based off a 30yr number. You're getting plenty of "cash flow", you're just choosing to put it all into the equity building on the house. In your case, you're paying about $700 in principal back every month, while a cashflow number would be based off a $230/month 30yr payoff period. You've decided to put around $470 extra per month payments, which puts you $200 in the whole. Cashflow would be about $270/month otherwise and in this case you're making roughly $470/month on the property just in equity payback. This doesn't include any appreciation on the property.

While you are getting really good financial advice on this thread, the most important question you need to ask yourself is whether you actually want to be a landlord. Its a ton of work and sometimes a huge headache, but its doable, as evidenced by all successful landlords since time immemorial. If you want an extra job, then keep the property and build equity. If you don't want an extra part time job, then just sell and move on with your life. Also go to /r/landlords

RealEstate

simpletonne

t3_3007yq

pkennedy

t1_cpnvta6

cpnvta6

systemlord

t1_cpobeuw

cpobeuw

Paid in Full

Mortgage paid in full. $110,000 mortgage taken out in Feb. 2003, payment of $800 month, regularly paid $400 extra per month for 11 years. Next goals: $20k each in 2 college savings funds right now stands at $2k each.....$1 million dollars in retirement funds right now stand at $200k Income is around $60k and no other debt. Here is to living completely debt free and to decent stock returns over the next 20 years :) Advice for young people, just stick to it be consistent, set a budget and live way below your means. Don't let possessions run your life, stay healthy and positive. I am 40 years old and didnt make over $15k in one year until I was 25, so I got a little slow start but I was definitely able to make up for it.

I am 40 years old and didnt make over $15k in one year until I was 25 As an underemployed 25 year old making ~22k, this is really inspiring. Thanks for sharing your success story!

I am 27 and have $40k in College Loans. I have a car (~$12K) and motorcycle (~$4k) paid in full in my name. I have $11k saved up in cash and $20k in Stock options. My income is currently $68k a year. How should I proceed?

personalfinance

moneyman74

t3_1ywbab

JSlasha88

t1_cfof6yv

cfof6yv

SirBitWattz

t1_cforhti

cforhti

19 year old gets 5k, father wants it put into a college fund. Unsure if I should do that, or put in a savings account so it's accessible. Or something else entirely.

EDIT: My father gave me the money. Should have made that more clear. Let me preface this by saying I fully intend to use this money towards either my education, or emergency expenses. There isn't really much debate on that. My father thinks that it would be in my best interest to put it in my college fund (529 plan for college savings). However, the risk of the money not being accessible is putting me off from doing that. I'm responsible with my money: I don't impulse buy, I have a credit card that is paid off every month. I'm not worried that I might spend that 5k on something unimportant to my education or safety. I plan on going to Ball State in Indiana for 4 years, starting at the end of next year. I currently have 54k in my college fund. Is the interest of a college fund worth not being able to use the money?

You not being able to access the money is a feature, not a bug. The fact you are already going "hey, I might need that" for non-college related things is kinda exactly why plans like that exist.

Why are you worried about not being able to access the funds? Do you have no other form of income? Do you have some kind of debt besides school expenses? ( Medical , etc ? ) If you lead a normal life, have no medical issues or other debt, and are employed I would just listen to pops.

personalfinance

Coolclone

t3_3yg795

crystalhorror

cyd6vpi

bluebeltcritic

cydbdbh

Dating and FI/RE

I've been dating a girl for about a year, and she recently confided in me that although our dates are always fun and she thinks I'm quite charming, she worries that I can't always afford them. I'm actually quite successful and have a relatively high net worth, but she said she's noticed me carefully consider purchases (even smaller ones) and so on. I am definitely quite frugal by nature, I grew up poor - my family doesn't have any money and I worked menial jobs to pay my way through college. Those frugal habits are hard to shake, although they've served me well for my FI/RE ambitions &x200B I told her not to worry and that I'm quite comfortable, but I'm worried she will feel deceived if she sees the actual figures. WDYT I should do?

After dating for a year, she obviously knows your profession and probably has a good idea of your salary range....if you are frugal all the time and do not explain your plans, I'm sure it is raising red flags for her. To people on this board, you seem sensible, but for people who don't have an understanding, you will come across as both cheap and selfish....two traits no one wants associated to them by their partner.

Maybe before telling her about your goals you ask about hers to see where her head is financially. Does she think about retirement, family, vacations, moving, what quality of life does she expect? Tailor your explanation of FIRE based off her current thoughts and it will be easier to explain why you do what you do.

financialindependence

SmoothChapter

t3_a0l7h0

stepparentthrowaway9

eaikjga

Insane_Koala

eaj84rg

Will deferring my student loan payments and/or CC payments during the crisis affect my credit or future borrowing?

Does asking for a deferment on any of these payments have any negative outcome for me or my guarantor? I’m 20 and still in school, but I’m on the in school repayment track so I have minimum payments for my student loans. I’d prefer to be able to defer those payments as I’m currently working down my CC debt (current at $1886 of a $3500 max) but I’m concerned asking for something is going to flag me as a high risk borrower.

Deferring student loans doesn’t harm your credit. Missing an agreed upon payment does. You should defer them until you have that credit card paid off at the bare minimum. Paying down a loan that can be deferred at five or 6% while having a balance on a credit card that’s between 17 and 27% is just burning money.

Focus on getting rid of the CC first; as another poster stated, the higher interest will be more detrimental, and I can only assume that at $1800, it's the smaller balance. Call the student loans and change your payment plan, ask for someone to explain the benefits of each of the available options. With still being in school, you should be able to go to a deferred plan with no penalty. Also, find another job - grocery stores/Walmart are hiring tons of temporary - if you have a car, delivery is HUGE, and growing

FinancialPlanning

KindaArt3mis

t3_fo82dc

Butters0422

fldnkq5

jnorr13

flfhl41

Good way for investing at a young age?

I’ve been doing some research and I’d like to start investing some extra income I have, but my question is what is the safest way to invest? I’ve done some research on brokered cd’s, Real estate investment trusts, Municipal bonds, and annuities. I know broker cd’s are heavily market dependent, which is risky. I know real estate investment trusts usually require high investments to get started. I know municipal bonds and annuities are risky due to inflation. What’s some advice someone might have for someone who’s trying to get into investing? I don’t have a set amount but as of right now I’m in college making about 20k a year My goals are either for a home down the line and early start on retirement US Resident My money is made from a legitimate job, I pay taxes on it.

1).Open a cash management account at Fidelity. This is a checking account but it also allows you to buy stocks/bonds/etf/mutual funds plus the perks of a really good checking account. Buy ITOT. This is a US total market index. Basically it’s a investment vehicle that has every major US company in its portfolio. It’s about 60.56 a share currently. Open a Roth IRA. Contribute the max 5500 a year to it and buy ITOT. This money will grow tax free when you finally withdrawal it after you are 59.5. Study investing, asset allocation, and your overall comfort with risk. Every dollar you invest today will be 21 dollars in 45 years. It will be 41 dollars after 55 years. 81 dollars after 65 years and 160 dollars after 75 years. Time is your friend. Impulse is your enemy. Let’s us know how steps one and two go.

Do some research on Roth IRAs (Max it if you can) and Mutual Funds. If you’re young, you should be more concerned with growth and retirement if you have some other things in place. Do you have adequate life insurance? Do you have 6 months of living expense saved? Since you’re in college still, I’d focus on saving money and a Roth. I really do think that’s better for you right now than investing.

FinancialPlanning

DemonzGaming5

t3_9sqazo

aceman97

e8qmauh

CaramelApple10

e8qvz7u

Does it make sense to ask the question "what is the origin of this call option?"

My wife is recently getting into options, which is pretty cool. This means that she is always asking tons of questions while trying to learn all about them. The past few days she has been constantly asking me how to find out where an option originated. The best I can do is try to explain that that the origin of the option is irrelevant, but she insists that "someone had to write it! Did they write it when it was worth X dollars? Or did they write it 2 months ago?" Can someone help me out here? Does this question make sense? If so, how would you find the history of a single option?

Options always come in pairs. For every given contract, i.e. underlying, call/put, strike, expiration, the clearing institution has a file of existing option positions. The sum of all positions, counting long as positive and short as negative must be zero, otherwise the clearing firm takes on risk. Options don't have a identity that the retail customer can see. The clearing firm keeps the anonymity of each market participant. But you can see the total number of outstanding options, this is called open interest. This fluctuates over the lifetime of an option, getting smaller as expiration draws near. Let's say you want to buy an option. You create a buy limit order and you are matched to another party that wants to sell this specific option. There are three cases: You don't have a position, the other party does not have a position. Two new options are created, you get the long one, the other party gets the short one. Open interest increases. You have a short position, the other party has a long position. The options annihilate. Puff. Open interest decreases. You don't have a position, the other party has a long position. The option is transferred to your account. Open interest remains unchanged. If somebody wants to exercise an option, the clearing firm assigns randomly a short option position to the long position. But you can't see who owned the short position that you exercised, again anonymity is preserved.

Stock options may originally be derived from the future market. Here is some information which may or may not be useful. Like you said most people don't care about the origin and it may be headache trying to figuer out all the process flow. We just wanted to trade and make money. If I were to guess, it all started from certain institutional entity that can provide liquidity.

options

lasertoast

t3_8wq8lb

ArminiusGermanicus

e1xvs96

cheapdvds

e1xnu82

I wanna live aboard a small boat with my wife.

so, my wife and I want to buy a 40 to 55 foot live aboard ocean fairing vessel "used ones run between 6000 for shit tier boats, and 75 thousand, which is about the top end of our budget, we would park it on a coastal marina in the region we live in, sell off ALL of our shit, and then spend the next two years working and taking classes on ships and engine work until we were ready to sail it elsewhere. so I know its not a super bright idea, but we are smart recourseful people who can be ok with such a minimal lifestyle. what do you guys think?

spend the next two years working and taking classes on ships and engine work until we were ready to sail it elsewhere. Could you do that before you got a boat?

Obviously a bunch of people are going to think this is a risible idea, but I think it's a fine one that just doesn't appeal to them personally. The word for this lifestyle is "liveaboard", and it bears similarity to the "small house" community. There's useful cross-fertilization of ideas, I would say. what do you guys think? How tall are you? There's something of a vertical space concern in most sailboats - if you're taller than about 5'8" then a lot of boats are going to make you feel like you live in a hobbit hole.

personalfinance

LordSinguloth

t3_9x2mw0

Cattle_Whisperer

e9p3kzu

crashfrog

e9p7cu2

Looking to buy a house fairly soon. I make really good money but I have beyond terrible credit

As the title says, I would like to buy a house but my credit is awful (mainly because of lack of credit history) so I need help with getting my score up to at least the 580 range as soon as possible. As far as existing debt that shows on my report I have the following: $8k in delinquent student loans. They have been garnishing the majority of my tax returns the last two years. It was around $30k, it should be wiped out after this tax season. A $400 medical bill. I figure I can just negotiate and pay this off whenever. My dilemma is that I don't know how to start trying to build a revolving credit history. I tried to apply for the Capitol One secured card today and was denied even for that. I don't care about fees, deposits, etc. All I am looking for is some place that I can secure a revolving credit line from that is less than say buying a car but I have no idea where to look.

If you "make really good money" then why haven't you been able to pay off your debt that is in default? You can start by paying off the $8400 now.

Take this with a grain of salt but I'm only speaking from my own experience... I was able to get a Fingerhut account, it's not revolving, but after you pay off your first bill with at least 3 months of payments they will switch to a revolving credit for you, all the while reporting to credit agencies. Brought my scores up in a few months.

personalfinance

Storkly

t3_5ciyp7

JeterWood

d9wvs10

KingNFM

d9wuvvn

Basic, silly credit card question

I'm having a discussion with someone over on R/Churning, and realized I've never really thought about this before. Tried googling it, but there's no definitive answer. Does carrying a balance on your credit card impact your credit score? Does carrying a balance impact your utilization and your debt to credit ration? I assumed it does, but I'm being told it doesn't....

Former credit card risk manager here.... Your credit report (for the most part) does not know whether you are a transactor (pay your balance in full every month) or a revolver (pay less than the full balance, and end up paying interest). There are 2 metrics that tend to matter the most (across generic bureau scores and custom bank decision models): 1. Total debt outstanding, particularly in relation to declared income. 2. Utilization (balance as a % of available credit). In both 1 & 2, the statement balance is used. This is where it can seem odd. If you have a $5,000 limit, charge $5,000 and pay it off in full every month, you would be 100% utilized. If you have a $5,000 limit and pay only the minimum on a $2,000 balance, you are 40% utilized. Scoring models would reward the 40% utilized case (in general) more than the 100%, even though the 100% utilization individual is a responsible person who never accrues any interest charges. From a scoring perspective: manage your utilization, which depends upon your statement balance. From a personal finance perspective: you should never be paying interest on a credit card. It never makes sense to do that, regardless of the scoring options. There are almost always cheaper ways to borrow, if you have to.

Yes, technically, it has an impact, but not one that is significant. (in that there is no history) If you have 10k of available credit across all your cards, and every month you rack up 5k of balance to get rewards, and then pay it off in full, then every month you show you have a 50% utilization, which affects your credit, so the answer to your question is technically yes, even though you pay it all off. HOWEVER- if you stop charging to your card and the next month when the statement comes your balance is much lower, and your utilization ratio is back to normal, your credit score will jump back up. While utilization % does has an affect on your credit, it has no HISTORY, so if you had high utilization in the past it doesn't matter. Also, utilization is avoidable if you're paying it all off anyways, depending on when you pay your bill, even when churning for rewards. If you know your card statement prints on the 15th of the month, and you owe roughly 5k, you can pay whatever the balance is- maybe 4k, on the 10th, and when the statement prints, even though you had 5k worth of transaction, your statement balance is 1k so your utilization is back at 10%, not 5k with 50%. I hope that makes sense.

personalfinance

auggiedoggies

t3_35aiue

fromaltoona

t1_cr2k7bf

cr2k7bf

Slink78

t1_cr2jac8

cr2jac8

HOW COULD FUTURES POSSIBLY BE GREEN

Literally what good is happening right now. I bought puts on Hilton and then, their pathetic stock goes up 14% in one day as if everyone is moving into hotels. HOW?? Idk how much I can keep up this lifestyle I used the meme flair because this is all one big joke

IV makes it impossible to trade anything. Boeing said they were going to close their factories indefinitely and their stock went up 18% as if they announced their 787 MAX finally got fixed. Can't trade these unhinged markets

Market priced in a Mad-Maxesque future where roving bands of marauders in gimp suits spend their days raping, murdering and cannibalizing everyone. When it turned out that we'll probably just sit inside panic buying paper products, everyone relaxed a bit

wallstreetbets

RileyWH

t3_fwg24d

[deleted]

fmo59v7

WestBrink

fmorqrb

Parents promised to pay off student loan. Now they won't.

In high school, parents forced me to go to college. I was not exactly wanting to. I thought trade school might be better. Being respectful, I followed their advice under the promise they would pay back my loans. I have been out of college for nearly 4 years and found out they have been putting them in deferment. They loans are fixing to start being due monthly, and my wife and I have other financial obligations. Parents say they cannot pay loans yet are paying for my other siblings loans while they are currently in college. Their reasoning is I can afford to pay them back now. What should I do? And what am I legally required to do? Possibly options: sell house and cars for cheaper options, put investments on freeze, and break donation promises while I blitz on loan Hold parents to original promise This is manageable and I'm not freaking out. I am just really hurt by parents to force my hand on this. EDIT: sorry for posting then leaving. I had to learn whose name the loans were in, and talk more with family. The loans are in my name, and mine alone. My wife is being a great sport about this despite it blindsiding her most of all. Her temperance and grace are my solace in these seemingly fucked moments. We are going to continue with investments (scaled back to matching on 401k), and we will continue with donation obligations. We are tightening our budget and getting in touch with our frugal upbringings. I will continue to seek advice in r/relationships For what is worth, I am able to be financially independent in large part because of this subreddit. I also have friends I spoke with tonight who are going through similar waters. I will be passing along this subreddit's resource to them.

In addition to what you learnt in college, let this be a little life lesson about complicated arrangements and vague promises to pay for things. If the loans have your name on them, the you're going to need to pay them.

Take a deep breath, and go look at how your loans look. Get on Credit Karma. See what student loans you have. The ones in your name, you have to pay. Parent Plus and other loans, you can tell them to go pound sand for going back on their word. You have a solid plan for downsizing your life to attack your debt. Cut out donations, sell your car for something cheaper to run, etc. Ask your parents to refinance in their name. If not, then this is a serious breach of trust, and /r/relationships is where you want to discuss your role with them going forward, as well as /r/raisedbynarcissists to see how to successfully limit your future interactions with them. They'll come crawling back once marriage, grandchildren are in the mix, and at that point, you can consider how to interact with them.

personalfinance

SaturnVl

t3_5wc0uw

sfinae

de8vuc4

agjios

de93dt9

I'm 17 and have no idea what career to pursue

So I'm 17 years old, currently a junior in high school and I have no idea what kind of career I want to pursue. I've taken PFL (a waste of time at my school) and haven't got an idea what I would be interested in getting a degree in. A side note, my dad was in college for nearly 8 years after changing his major twice, and I don't want to make the same mistakes, and would like to stay in college as little as possible with a decent income in the end. I've thought about maybe sharing a house with some friends after high school but not sure how that would work out with going to college. Currently, I also have a part time job at a theater while taking most AP classes at school, any advice on how to balance all of this?

This is great advice I once received. Get a copy of a college course catalog*, a green highlighter, and a red marker. Highlight any class which appeals to you. Red out any class that sounds awful. Ignore classes you are uncertain about. Whichever major has the highest ratio of greens is a good place to start considering. Yeah. That dates me. I doubt such a thing is available in print these days. I expect an equivalent is available digitally somewhere.

You might want to spend some time looking at the Occupational Outlook Handbook (google it, it's online free). I would not just go to an expensive college and start taking random courses with no idea what you want to do. If you want to go that route, go to community college and keep living at home so you don't pile up debt.

personalfinance

AudaxYT

t3_6sveli

janellthegreat

dlg1090

VicePrincipalNero

dlg7bwi

Help for a 17 year old on his own.

I made a decision to leave my home and family (with their support) and go back to my old town. I have friends and their parents who are willing to help me, and I have a couple job opportunities lined up. Ultimately I would like to buy a car and an apartment. Does anyone have any tips for a teenager working full time to make the most out of his paycheck? Is it possible to get an apartment and a job while working full time and attending night school?

Yes, but to be honest you're going to have to be better than your record is speaking for. Finish high school first. I promise you there is nothing in your "old town" that is worth having that stain on you. THEN, you can think about moving out on your own, and there's nothing wrong with that. Hard? Yes. But come back for practical advice when you're done with school. My immediate tip, though: Have the job in the bag before you move. Don't move on the promise of "opportunities lined up." It's a great way to find yourself homeless, regardless of the best intentions of your friends and their parents.

Here's the only tip you need: If your expenses are more than your income, you are screwed. You won't even have a credit card with a meaningful limit because you have no history. You'll simply run out of money and be SOL. "Opportunities" don't pay, jobs do. Unless you can tell me right now that you are hired and how much money you are going to make, you are unemployed. How is anyone supposed to advise you if you can afford anything without knowing how much money you make? It is very possible that you won't be able to get an apartment because it will be illegal or you won't have the necessary credit/income to qualify. If you want to make the most out of your paycheck, stay at home and get a job there. Here is my assumption of you: you are failing school, you have a tense relationship with your parents, and maybe even minor run ins with law enforcement. This isn't going to get better if you move, because you are the problem, and you are bringing yourself with. Apologies if I am way out of line here, I especially hope you aren't being abused, but it doesn't sound like it based on your post.

personalfinance

coffee-n-a-blunt

t3_33p6r9

raika11182

t1_cqn3fyk

cqn3fyk

lefthighkick911

t1_cqnqxlt

cqnqxlt

Separated from my wife, what to do about our house?

Leaving emotional attachment, relationship info, etc. at the door. &x200B About 2.5 years ago, I got married and we bought our first house. A few months back we separated. We had an FHA mortgage with only 3% down, but scored a great interest rate of 3.75%, but there is PMI insurance The house cost $130k, and we now have \~12k in equity. I've done a few improvements, but a couple other repairs are needed. (maybe 3k worth) If I were lucky, I could get $140k for the house. (I'm guessing) Minus the 6% going to a realtor, split 2 ways, that leaves each of us with a whole lot of not much money to move, find a new place, etc. &x200B I make substantially more money, and could pay for the house myself. She doesn't want the house, I kinda do (mostly for the garage), but I'm not that attached. The mortgage is way lower that what rent for a comparable / smaller place would be. &x200B Does it make sense for me to keep the house? Should I sell it, buy myself a smaller place? I've found some decent places on Zillow for substantially less that I'd be ok with, but the interest would be higher. Should I keep it for a short time, get the repairs finished, build a little more equity, then dump it? &x200B &x200B &x200B &x200B &x200B &x200B

If you're happy in the house, you can afford it alone, and it's already mortgaged PMI-free with a great rate then I don't see a problem with you staying. Just be aware the technical aspect of how the house is split would need to be spelled out in the divorce decree/agreement. You will probably owe her 50% of the equity you have in the house, and you might need to refinance the mortgage if it's in both of your names. These steps could theoretically be combined. For example, your mortgage balance maybe goes from $118k to $124k, with $6k paid to her on closing.

the numbers you gave would be $6800 for both of you, how is that not enough to move? would she be willing to put in half the money for the repairs? cause if you want to sell and start over you might as well sell without buying her half out first. work out a deal that you stay and finish the repairs and then sell and split at the higher rate.

personalfinance

nihillist

t3_atlv54

Hyppy

eh1vjsv

t3hd0n

eh20jtz

What are the ways i can evaluate property neighborhood?

How do i determine if the neighborhood i will be buying my house is good? I drive around but only can tell little about the area.

read the local paper, stop in at the local police station, ask neighbors during an open house, drive through at all hours, get out of your car and walk around, if you are a guy, ask a woman if she'd walk around there at night, ask local realtors.

What are your first impressions? If you sell down the line buyers will probably have the same first impressions. What is being build? Some things are easy: A new train station would be worth while, new stores perhaps. How are the homes, well kept? Are people renovating or building houses up? If you see a lot of boarded up homes, a lot of vacant stores, down town that is half deserted those are signs of a decline.

RealEstate

NananananaImBatman

t3_aejkbq

stuckandrunningfrom

edpsa7p

craigleary

edq3z3h

Should I quit a high paying job with no job to go to? Not sure if this is a mid-life crisis, a nervous breakdown, or some final return to a desire to do something meaningful

Hi Reddit, I'm a 38YO guy, well educated who makes a base salary of 200K per year, with a nice bonus and stock options. I have 2 years cash/emergency savings excluding 401K - I rent in a high-cost city. I manage a business within one of those companies that drive shareholder value relentlessly (You can't possibly imagine - the pressure is intense to constantly improve revenue, profitability, and otherwise). I'm used to being a high-performer, and for a variety of reasons I faced some REAL challenges that have to do with the legacy of the position I've taken on. My company is asking me to move across the country (While my numbers are terrible), and I've recently began suffering anxiety attacks, sleepless nights, and I'd say general depression based on my job. My question is this, should I fall back on my cushion and leave it all behind (No gaurantees on another job...) - or stick it out and plan for a recovery, or some other option? Thanks in advance for any advice - this is a terrifying situation to me, which is why I'm considering such an extreme option.

Hi 38YO guy... It sounds like you're in need of a VACATION. When's the last time you took one AND are you able to take one for at least 2 weeks to reset? Additionally, it's easier to find a new job when you're still employed versus risking a gap in your employment history. A friend of mine lost his job making more than you make and spent over a year and a half to find something. He's getting paid maybe half of what he originally made. If you're willing, try cutting down on your unneeded expenses to make that emergency fund last longer in the event that you really need a break. Lastly, have you thought about seeking out a therapist? They may offer guidance for alleviation of stress in positive healthy ways.

The good news here is you have a good cushion to make a major life change. If it helps you I had a job that was doing similar things to my life. It got to a point where I was asked to move to another area in order to get a promotion I desperately needed so I could make more than $10/hr. I felt so trapped, like an animal in a cage who just sort of gives up because you have no other choice. Quitting was not an option because I had just left my second job, and the only thing keeping me afloat because of a physically and verbally abusive manager. At one point driving to work I hoped I would get in a car accident so that I could go to the hospital and rest for a few days. At that point I broke down and realized I couldn't live my life at work. I was missing everything else, I never saw my friends or family and I was constantly exhausted. So I made a keep of faith, and buckled down and applied for everything I could get my hands on. I spent my last $300 on a plane ticket for a job interview with a company I loved, and by some sheer luck of the universe I now have that job that I love, that gives me purpose, that adds value to my life and that I can set work/life boundaries with. My point is, this path you are on is not healthy. You need a break. That may mean a 2 week vacation, it may mean quitting altogether. Luckily you have the means to buffer this reprieve. Take some time and go volunteer, take care of yourself and mentally reset. Ask yourself how you want to live the next five years, really check in with what you want to do. If it meant you had to take a pay cut to say ~60k a year, in order to have a job that you love could you downsize your lifestyle to do that? On a side note I know someone who was in a similar situation. He did quit his job and grabbed his motorcycle and moved cross country and decided to go back to school, travel, and see bands. He was one of the happiest, most carefree wonderful people I've ever met. He passed away a few months ago and I just think, thank God he decided to experience his life. Nothing is guaranteed and sometimes it's easy to get caught up in the things we 'should' or 'have' to do and forget that it's really the steps along the way that matter. Don't waste them being miserable.

personalfinance

[deleted]

t3_2irmdy

TheFrugalLady

t1_cl4si22

cl4si22

jammbin

t1_cl517r2

cl517r2

Question about Roth Ladders and using Taxable Accounts for the first five years

I just wanted to make sure I'm understanding this stuff correctly: If you start a Roth Ladder, you're really just waiting for the account to reach the five year cut-off so that you don't have to pay a penalty withdrawing the money early, right? So you could theoretically continue working if you wanted to for those next five years? Also, can you roll a tIRA into an existing rIRA account? Wouldn't that circumvent the five year rule? I assume you HAVE to roll a tIRA into a new rIRA. What if you continue making contributions to that rIRA during those five years? I assume only the age of the account matters, and not the age of the contributions that have gone into it? On a similar note, if you have money that you put into a taxable account, as long a you keep it within the 0% LTCG bracket, you can withdraw that money without paying any other taxes on it, right? If I've got all of this right, you roll all your 401ks into a tIRA, and roll that over into a new rIRA account. Once that matures to five years, you're allowed to make withdrawals on it, but do you pay LTCG taxes, or income taxes on this amount?

Ok, I'll try to hit a couple items here. Good questions. Converting to Roth When you move money from Traditional to Roth, it is considered regular income for the current tax year. Contributions and cap gains are lumped into one figure that you must pay taxes on. Withdrawals There are two five year rules in play with Roth IRA's: Capital Gains cannot be withdrawn until the owner is 59 1/2 years old and the account has been open for at least 5 years. This applies to those who are of retirement age. Contributions can always be accessed. Conversions to a Roth IRA cannot be withdrawn penalty-free until they've seasoned for five years after the transfer. It does not matter if you move the funds to a new or existing account, tax treatment is the same. You will have access after five years to three items: Roth IRA Contributions Traditional IRA Contributions Traditional IRA Capital Gains ...but be restricted from touching the Roth IRA cap gains because they have not been taxed. If you withdraw them pre-59 1/2, you'll get hit with ordinary income tax, not LTCG tax. Working During Conversion It's usually advised to setup your ladder when your income is lowest to minimize taxes. Adding $20-30k in ordinary income to your AGI will cost more while working than when leading a relatively low consumption life in retirement.

I don't plan on retiring early but do strive to achieve Financial Independence. I am just getting started at 25. In a few years my wife and I plan on having kids and her staying at home with them. Would it make more sense to invest in traditional now and when we take a drop in income use a roth ladder to lower our tax rate? I could convert the traditional at a rate that would still keep us below the next tax bracket up.

financialindependence

argent_pixel

t3_3x96fz

SodaStove

cy2lqq6

arrow410

cy3ajy2

FIRE, frugality and weight loss

TLDR: Started bringing lunch to work and lost weight. One month ago I discovered the FIRE Movement. As part of my 'reducing expenses" phase, I started bringing my lunch to work and eating out less often. I knew this would save me some money, but I didn't realize that it would also save me calories. My homemade lunches turn out to have less calories than the burritos or Subway sandwiches (foot long always) that I bought at lunch. In one month, I've lost 6 lbs. I wasn't overweight at all, but could lose about 10-12 lbs. So, unless I have some disease that coincidentally caused weight loss at the same time (work stress causes me to worry I have deadly diseases), I haven't changed anything else in my exercise or diet. Just making more homemade meals. Has anyone else experienced this great side benefit?

I don't want to eat out because it's too expensive, and I don't want to prepare and carry food to work because I'm lazy, so I simply do intermittent fasting.

Awesome! One thing to keep in mind though! 2-4lbs of that weight loss was water weight! Eating the premade burritos and subway sandwiches (especially lunch meats) are LOADED with sodium. Sodium causes water retention and a lot of the bloat feeling you get. Cutting all that sodium out likely made you lose a couple pounds purely from water. Not to be a downer; because either way it’s a good thing! I just want to prevent your hopes from getting high and expecting more, equal weight loss from maintaining that diet! Kudos!

financialindependence

buddhajer

t3_bidrpp

Dissentient

elzyn8e

SavageDuckling

em08rc7

Just created a Scottrade account and bought my first shares.

I've always been a big gambler online and at Casinos around the area. I thought I would try out the stock market. I've been researching the past few days and loaded $100 up on Scottrade. I bought 5 shares of Ford stock at $12.62 for $70.13 with $7 commission included. There's a lot to learn on this platform but I love the interface and they have a Scottrade Streaming Quotes java app that's pretty neat. Anybody else have any Ford shares?

I'll be the first one to give you the same answer that everyone else here will. You should use that $100 to buy and read some books from the Recommended Reading section of the sidebar. Next thing you should do is start paying off any debt that you have. After you have done that start building up an emergency fund, enough money that you could live off it for 3-6 months incase you lose your source of income, and then start saving up some more. Once you have at least $1000-2000 in spare non-emergency fund money, you can start thinking about investing in the stock market. The problem with your small share volume approach is that you're automatically ~22% down (considering you have to pay another $7 to get it out). Ford will have to go up to $15.43 (22.23%) before you break even. Not to be harsh, but you are basically throwing you're money in the trash. My suggestion would be to: Start a practice trade account online (Updown.com is one, there are many others) Read some of the books in the sidebar Pay off any debt you might have Save up an emergency fund (3-6 months of expenses worth) Save up enough enough for single trades (minimum of $1000 per trade, otherwise commissions can eat up your profits) Have at it and have fun, accept that you will lose money at some point.

Investing is a much safer place to put your money than gambling. Some general tips. When in doubt, follow Warren Buffet. He is never wrong. Example: A few months ago when Bank of America was in the shitter (~$5.40/share), Warren bought a few million worth. I followed suit. Today, BAC is somewhere around $7.70. Thats a 40%+ gain Load up money infrequently, but when you do, make sure its a big amount. Otherwise the commissions will just kill you.

investing

treycopeland

t3_p9hi0

alexunderwater

t1_c3nkqah

c3nkqah

picador10

t1_c3nlsmk

c3nlsmk

I am paying an annual fee ($45) on my oldest credit card. I have tried to call and get it taken off but capital one won't work with me. I have had this card for 5years and it is my entire credit history. I have opened 2 more cards in the past 6 months. How much will canceling this card hurt my score? I don't plan on buying a house or a car for at least 2 years. Should I just suck it up and keep the card? I can make up the 45 in rewards from other cards. I have never made a late payment and I pay off my balance every month.

If you close the card it will remain on your reports and continue to count toward age for about 10 years. I'd close it. By the time it drops off your reports, your other cards will be old enough that they'll help your score. Plus, if you're willing to close the card, there might be a better chance that C1 is willing to work with you on it. But I wouldn't bet on that, they're notoriously stubborn about things like this.

Same boat. Oldest card, $39 annual fee, no rewards, very low limit. Called them earlier this year and they could not hide the contempt in their voice when they said I was not eligible to have the fee removed. 7+ years, no over-limits, no late or missed payments. They also told me I could not have a limit increase or interest decrease. 769 FICO at the time.

personalfinance

MrNiceGuy24198

t1_ceioeo7

WestTexasRedneck

t1_ceipti8

ceipti8

[deleted]

t1_cej3wgl

cej3wgl

Selling first home.

I am selling the first house I purchased and expect a decent amount to come back to me after paying off remaining loan and other fees. I've never had a large amount of cash and could use advice of how to best allocate that money. I have another home I live in so no need to put it into another down payment. Currently considering a combination of maintaining 6 months living expenses in a savings account, a 12-18 month CD, max contribution to Roth IRA, and rest into some sort of investment. Thoughts?

Definitely build your emergency fund, if you don’t already have that covered. I agree that maxing your IRA and 401k are good ideas. The rest depends on your goals. If you think you’ll need the money in the next 5 years, then I’d look at HYSA, CDs, or T-Bills. If you don’t think you’ll need the money for at least 5 years then I’d use a taxable brokerage and buy either a broad-market (like SCHB or VTI) or target-date index fund.

Thanks for the comments, helping me out too since I'm thinking about selling the house to pay off debts and investing the rest, and renting for 1 year to save up for the next home purchase. "Currently considering a combination of maintaining 6 months living expenses in a savings account, a 12-18 month CD, max contribution to Roth IRA, and rest into some sort of investment. " - good strategy

personalfinance

Spikedjuicebox

t3_c9ul0b

galactica_pegasus

et31488

cHiliBoba

et3inds

I fell for a ticket scam, and despite using a credit card to pay for the goods I never received, I’m still at a loss for the total amount I paid.

As you can imagine, I feel rather stupid right now. A couple months ago, I found someone selling tickets to the Camp Flog Gnaw Music Festival in LA. I had just missed the cutoff to buy them directly from the festival website, and I was so desperate to go that I ignored my gut feeling and better judgement. I agreed to send the other party $550 via Apple Pay Cash for two General Admission Passes for the two-day festival. Knowing this was risky, I elected to use my Capital One Venture Credit Card to fund the Apple Pay Cash transaction. My understanding was that credit cards protect you from financial loss due to fraudulent transactions. It became evident I was being scammed weeks after sending the money, when the other party deleted our entire correspondence and blocked all established means of communication. Initially I contacted Apple Customer Support, who referred me to an “Apple Pay Cash Specialist.” This Specialist informed me that there is no Apple Pay Cash dispute process for fraudulent transactions, and advised me of three options I had to resolve the situation: dispute the charge at my financial institution, try to contact the other party, and file a police report. I immediately contacted Capital One and disputed the charge. I was informed that the entire amount of $550 + a $16.50 fee Apple charged me for using a credit card for Apple Pay Cash would be posted back on my statement, as well as any interest that I had been charged on that purchase. They did this almost immediately, and I thought I was out of woods. A few days later, I go to retrieve unrelated funds from my Apple Pay Cash account, and see that Apple Pay Cash charged a $566.50 “Balance Adjustment,” putting my Apple Pay Cash account in the negative. I’ve simply gone from owing Capital One $566.50 to owing the same amount to Apple Pay Cash (who I’ve recently come to find out is operated by Green Dot Corporation (yuck)). I have gone back and forth countless times over the past two weeks between Capital One’s and Apple’s customer support lines, and have gotten nowhere. Apple Pay Cash’s stance is that they have satisfied Capital One’s dispute/chargeback by sending the funds back to Capital One, but they are holding me accountable for that amount because I authorized the transaction. Capital One’s stance is that they have disputed the transaction, and because Apple Pay Cash is not challenging that dispute, there are no further measures they can take to have Apple reinstate my funds. Apple’s actual customer support representative has been very forthcoming, but his hands are tied as Apple Pay Cash issues are handled exclusively by Apple Pay Cash Specialists (who I believe work not for Apple, but for Green Dot.) Am I completely out of luck? I specifically used Capital One and elected to pay the Credit Card fee because I wanted to be protected from this exact situation. Thank you for taking the time to read this far, and any advice would be appreciated!

You're likely out of luck. Most cash pay apps don't offer any sort of fraud protection. You also weren't the victim of fraud, but fell for a scam which is materially different. Take the information you have on the perpetrator to the police, file a report, and learn an important lesson about cash pay apps. They're functionally the same as cash.

Wait, I don't understand. Apple Pay sent the money back to capital one but is still charging you. Capital one says there is nothing they can do, because Apple Pay isn't disputing it? Doesn't this mean that Capital One now has $556 from Apple Pay? And shouldn't they just refund you that on your statement credit since you paid for goods/services that you didn't receive?

personalfinance

josdc

t3_9noioj

Aww_Topsy

e7nu7lq

tomatuvm

e7nxcqp

Buyer wants to take early possession 2 days before closing: Bad idea or terrible idea?

My agent came to me with a good offer from a conventional buyer. They're closing on their home to get funds for my home, and want to take possession 2 days before closing. The whole idea of white knuckling it for 48 hours and hoping nothing goes wrong doesn't sit well with me, and I let the agent know that. The agent replied back that they are offering to include a rental agreement for the 2 days to delineate liabilities. Is this a really bad idea? UPDATE: Buyer was able to work it out, offer accepted with no early possession needed. :)

Noooo. Move the closing date or tell them sorry. They can live in a hotel for a couple days. "Failure to plan on your part is not an emergency on my part."

if you agree to you leaving your property 2 days early, want not just amend the contract with both parties, adjust the closing date and inform lawyers. this way, there is no rental period and you get paid. when a buyer buys and sells the same day, the money can move fast enough to make that possible so I don't really see a reasoning on why they would want to move into your home for a 2 day rental fee. - from a Canadian realtor

RealEstate

Throwaway503s

t3_4tovty

ew73

d5j7ce9

Big_Gifford

d5jgwao

Trading based off option price inefficiencies

Hey, I've been using options for a little over a year to hedge my stock portfolio, and make directional trades. Other than that I'm relatively new to more advanced option trading strats. I just recently stumbled upon a well made video on youtube by "OptionAlpha", and it went over finding "underpriced" options by using a formula using prob itm, spread width and net debit or credit. Video here; [ _yswp5Ho&list=WL&index=65&t=0s]( *10:40-\~12:15* This topic fascinated me and I'm curious if anyone used this as their primary trading strat? Would such a thing be possible? Why or why not? Appreciate any feedback, and take notice that I'm brand new to this. Thank you

Yeah, lots of smart people work in big teams in white offices with free coffee in new york, chicago, and london to do this 24/7. Also they have smart computers do a lot of it too, and even sometimes figure out how to price these things better than formulas you or I even know. They make a lot of money!

I'm thinking your title is different than your question.... If you are suggesting trying to trade the nickel difference on option setups that may be slightly mispriced off par based on probability of ITM...as others have suggested it's a fool's errand as that is the definition of HFT arbitrage... If you are asking about the content of the video, which uses the above mispricing example to build the case that entry price matters relative to expected return then absolutely yes...understanding this concept is fundamental to investing in anything, not just options. You will occasionally see an argument around here that supports writing options by simply stating "better to be the casino"...stay away from any advice that looks solely at probability of profit...if the 'investor' is not also weighing return with probability they will long term lose money. That is the key takeaway from the video and fundamental to investing.

options

Short-SPX

t3_dxwi0i

Sushies

f7x0kj9

ndlsmmr

f7y4nzp

Scottrade just charged me $20 for a reorganization on a stock. Is this normal for a brokerage?

Anyone know of better fees? I hate them debiting my account for things I have no control over. EDIT: I complained to Scottrade and got this reply: We are sorry to hear you're considering to transfer your account to another investment firm because of Reorganization fees charged to your account. Per our commission and fee schedule, your account was charged a $20 mandatory reorganization fee. This is a flat service fee for the processing of the corporate action. A mandatory reorganization is a corporate action initiated by the company that impacts all shareholders – participation is mandatory and no action needs to be taken by the shareholders. Please visit our Brokerage Commissions and Fees Schedule page to view our complete commissions and fee schedule including possible miscellaneous service fees. Thank you for choosing Scottrade. Please let us know if we may be of further assistance.

I had a penny stock that did a 70:1 reverse split last month (was .15/share and turned into $17/share). Scottrade charged me a double digit fee, IIRC it was close to $30. I didn't bother calling them even though I was furious. 1 month later I received and customer satisfaction survey email and told them exactly how I felt. It was an anonymous survey, but I left my name and account number in the notes section. Within 48 hours a Scottrade rep called me to remove the fees...and even followed up 2 days later to inform me that the fees were in fact removed.

The truth is you dont really hold the stocks in your portfolio, nor do you truly hold the balances in your bank accounts. You may legally "own" them, but physically they are held in your name by your brokerage or bank. They may act on your property, and it is up to you to contest their action in court, while in the mean time, the action stands. when they choose to levy fee's on you, fee's you have implicitly or explicitly agreed to when you signed up for the service, you have likely already agreed to allow them the right to charge certain fee's. One example is Schwab - IIRC on of their terms is that they may trade the underlying securities in your account as they see fit, with or without your permission. They may also seize assets i your accounts if they become insolvent.

investing

ed2417

t3_28nlrk

Derrick4Real

t1_cicuraq

cicuraq

esterbrae

t1_ciddbos

ciddbos

Buying a new primary residence and renting the old one out, what happens with primary mortgage?

My wife and I are looking to move, but rather than sell our old place we'd like to rent it out. If we finance the new place as our primary residence will this cause the banks to call our note due on the place and force a refinance as an investment property at a higher rate? (we just want to walk into this eyes wide open) We've lived in this property for 3-4 years, and could see ourselves moving back at some point in the future. (its in the suburbs and were thinking of moving into the city for a few years.). Anyone have any insight or advice as to what this looks like/what to look out for? Thanks. Edit: Thanks all for the input this has been immensely helpful!

Your mortgage should remain on the property as it is. Most mortgages have an occupancy requirement but if you have lived there for 3 years then you have fulfilled it. This is a standard way people get into real estate investing, known as house hacking. You get good terms with owner occupied loans live there for a year or two then move out, rent the property, and purchase another with an owner occupant loan. I would encourage first to read you mortgage documents to double check that this is the case for you.

When you buy as a primary, you are only obligated to reside in the home for the first 12 months, after that you can do whatever you want. Rules for new home and whether you can offset current house payment with a lease varies by program, so for that you’ll need to sit with a knowledgeable and honest loan officer. Lots of variables, easiest way is to simply qualify with both payments.

personalfinance

Version0ne

t3_fawevc

RE_riggs

fj0pz0s

AUorAG

fj198oi

I am getting urges to buy individual stocks because they seem more fun than buying index funds.

How do I suppress this urge? I have no idea how to read financials or do proper DDs so I doubt I will be able to pick good companies. It's so much more fun to look at your portfolio if it's made of hand picked stocks than global-weighted ETFs. The idea of owning a piece of a company that I like rather than just throwing money into the market is much more appealing. Also the fact that the company that I bought might go 2x in the next few years while that's going to never happen with indexes. But I don't trust my ability to pick good stocks. How do I fight this urge???!

Keep your index funds and start an account with robinhood to buy individual stocks. You can buy just a share or two of each stock with robinhood without loosing your shirt to commissions. You can have your fun and be responsible at the same time.

“If investing is entertaining, if you’re having fun, you’re probably not making any money. Good investing is boring.” -George Soros Like others said, get a RH account and fuck around with like 10% of your portfolio at most.

investing

FreelanceFifty

t3_8ciqlm

Chouston3

dxffzf9

Symphonic_Rainboom

dxgcyqi

I recently won 500k in a work related injury. What should I do so I can make more money and help my family?

I want to provide my family a business opportunity, something where they'll never need to work again in the future, in turn provide residual income. Money they can in turn invest and make companies for themselves. Any market advice is welcome.

Okay, first a couple questions. I will attempt to explain why I am asking each question. Is your injury permanent and prevent you from working again? If your injury prevents you from working again, it may be good to start with determining the amount of money you need to sustain your current lifestyle on this money. Are you depending on this money to fund your own retirement? If you are 61 and have a large permanent injury after already funding your retirement, than this is money that can do that. If you are 25, can't work ever again, this money should be used to cover your living expenses. Do you have a budget that takes in account the expenses related to the injury? Such as ongoing medical costs, assisted living, a special vehicle for a wheelchair, etc? I applaud your effort and plan to provide for your family for the future, but I would caution that you need to make sure you aren't going to need that money in the near future.

I deal with work comp claims for a top insurance company. At that dollar value I'm guessing you have an attorney. If you haven't already gotten your settlement buy out, just structure it through an annuity which the insurance company will likely try and push anyways.

investing

[deleted]

t3_1m1t6h

the_sam_ryan

t1_cc4y27p

cc4y27p

bnb5550

t1_cc51eig

cc51eig

Collection Agency "lost" my first $100 payment

Hey PF community! I apologize if this has been addressed elsewhere, I just did not see it. So I had some medical bills go into collection, and was now in a position to do something about it. After numerous times calling, I got ahold of the law office who is trying to service the debt. We decided to start a $100 payment per month to get the ball rolling. Fast forward to a few days after my first withdrawal, I get a new call from a law office stating they are now collecting for the Hospital, and they show no record of payment. Wait. A few weeks hoping the records would update, and nope, never did. So after many back and forths between the two firms, neither say they have the funds but I clearly show it leaving my account. The original firm is no longer returning my calls and all I ever seem to get is a voicemail when I call. What recourse do I have? What can I possibly do next to try and rectify this? Anyone have this happen to them? I know it's only $100, but on a $700 bill it goes a long way. Thank you for any and all replies!

What recourse do I have? What can I possibly do next to try and rectify this? Anyone have this happen to them? I know it's only $100, but on a $700 bill it goes a long way. Stop paying them. I would find a FDCPA lawyer on [NACA.net]( and sue them for misrepresenting the amount of a debt. How did you agree to it? If there is a bank record of the payment, I would save that and give it to the lawyer you have representing you.

what you need is a letter from the collection company that is SIGNED. That out lines exactly what will happen that they will settle the debt of $700 with 6 payments of $100 on or before the X day of the month. Then you need to mail them a check and keep copies of the checks for future reference.

personalfinance

GoGoats54

t3_b83jzc

truthbomb999

ejvo9sw

chopsui101

ejw8qeh

Cousin charged $2000 for ER bill while on holiday without insurance. Does she have to pay?

My cousin is currently holidaying in the the US and in her words she "forgot to buy health insurance" for the first time ever while on holiday. A few days in she had an issue where her arm got damaged/hurt on Sunday night. Because all the pharmacies were closed by then (and because she didn't know about 24 hour pharmacies or any other solutions), she made the decision to travel to ER to walk in and ask for a sling. I don't think she left the reception but instead just spoke with the receptionist, refused all offers of treatment, and only asked for the sling. Because she lives in a country where healthcare is paid for through taxes, she has never been handed a hospital bill for treatment. In her words, she thought there was no way this exchange would cost her more than "$20 to $100 dollars max". She then said how caught offguard and shocked she was to get billed $2000 dollars. Since then, she's taken advice from friends and family who have helped her argue the bill down to $500 dollars. Today she is talking about not paying the bill at all and she has asked my advice on this. I would really appreciate some firsthand information on if (as I suspect) this is a bad idea and just how much of a bad idea this might be so that my cousin can make these last few decisions about this situation without making any further unecessary mistakes. She will be in the U.S. for one more week before flying out again. Thanks in advance.

As someone who has worked within insurance for many years and has focused largely on the areas of domestic medical within a country that also has health care covered by taxes, as well as international travel claim investigations - the onus is on her to take out a suitable level of cover when travelling, and having forgotten to do so, pay medical expenses herself. It’d be between her and the provider to lower or forgo the cost. Considering she’s already reduced the bill considerably the cost is something she would need to pay otherwise she would be chased up legally even when having returned to her come country. An unfortunately expensive reminder to take out travel insurance as soon as you have tickets if in case anything happens before or on the trip.

Does she have an itemized receipt for what she is being billed for? She may have to request it but it should breakdown where the charges came from and not just say “treatment - $2000”. If there are things listed that she did not receive she may be able to talk it down some more. Maybe not below the $500 at this point but you never know.

personalfinance

coops678

t3_cpqkno

bulbpicker

ewr05b6

AR131313

ewrdxzr

Older retired friend is 50k in CC debt, asking me for advice

My friend wants advice on how best to eliminate his 50k credit card debt. He's currently living off of social security, aged 71, supporting himself and his wife (was a housewife her whole life). The expenses that got him in this predicament are one-time events, he just didn't have the savings for them. Refinancing/HELOC is not an option for him. He is aware of the possibility of destroying credit, he doesn't seem concerned. This post isn't to request advice on how to curb spending habits, he's well aware he needs to live within his means. &x200B This is a request on how best to proceed forward to pay it down. He approached me to see if there's any credibility to using a debt consolidation service like national debt relief or one of their competitors. I did some research and found that they negotiate with creditors only after you stop making payments for a number of months to the credit card companies, and start depositing money in a savings account. This process destroys your credit, which he's prepared to do if it's the best strategy. He wants to know if there's a better way forward since he's on a fixed income, but lives on such a slim margin between his mortgage and living expenses, and his income. Is there an alternative method that some of you may have had success with? The minimum payments are far out of his reach as the credit cards in question are starting to go past their introductory interest rates.

Consult with a local bankruptcy attorney. There may be some free legal clinics for seniors in his area. State homestead laws would factor heavily. Could try r/legaladvice Helping him find local agencies and making sure he’s getting any aid possible is one of the best things you can do. May be eligible for food stamps or other benefits he doesn’t know about. Can he and/or wife work? Reverse mortgage? Again, he needs local professional advise to make sure he protects himself as Much as possible.

You don't mention anything about his monthly expenses and whether or not he can afford his expenses plus paying this debt off from his monthly income. If so, I would see if he can transfer some or all of the debt to a credit card with a low/no introductory interest rate. That might buy him some time to pay down some of it without the interest growing faster than he can pay.

FinancialPlanning

throwaway122314f44s

t3_d1hi2b

rankinfile

ezm0yj0

schultz100

ezlwdxt

Student debt forgiveness - low risk high reward play

Get a student loan for as much $$ as you can Park the money in 3 year Treasuries Don't fucking touch the Treasuries! Not your money yet! Wait for student loan forgiveness Now one of two things happens: Student loans are forgiven -> you cash out Treasuries, win 100% Student loans are not forgiven -> you sell Treasuries, pay back, lose interest rate difference (few % a year). What am I missing here? This trade has ridiculously asymmetric win to loss potential.

Seems to me that you would need to probability-weight the likelihood (and structure) of student loan forgiveness. The interest rates on student loans are high enough that this seems very risky.

You would need to make 10 years of payments (or 120 monthly payments), while working for government/non-profit institution to qualify for student loan forgiveness. Interest rate is about 4-7%, and you would basically have paid off all the principal (and more) before you are forgiven, unless your profession is doctor, lawyer, or dentist where your loan would be large enough.

wallstreetbets

MakeoverBelly

t3_dqycle

ultra-rooster

f6bmhfu

MrShakeNBake

f6cyy2f

In E*Trade, how would I set a stock up to sell automatically at a 10% gain?

I'm a rather passive investor- I rarely check my stock posiitons more than once a month, since the daily rise and fall makes me stressed out! I've got some stocks that are somewhat volatile (up and down a lot) and I'd like to automatically sell them when they gain 10% without having to monitor them all day. Is that possible?

Limit order. Still not a sure thing though, but they're designed to buy or sell at a designated price or better. Example, you buy stock at $100/share, place a limit sell order for $110/share. You'll have to pick whether you sell all or none or in partial groups, and how long the order is good for.

limit order, which executes when the stock reaches your specified price or better. you can either do a limit sell (in your case) or a limit buy. a limit sell will sell at a certain price or greater. a limit buy will buy at a certain price or lower. some stock programs will let you specify the percent, but unfortunately most will make you do the math to determine the price at which it has increased by 10%

investing

LavaSquid

t3_bh7bxr

maddumpies

elqiqq8

test822

elrb8r4

Getting Married Soon, Options Other Than A Prenup?

I'll keep it short. I'm 25 and my fiance is 24. We currently own our own home together, and use a joint account that we always keep $2,000 in for emergencies and bills. But with us getting married soon she's mentioned joining our finances (to be clear, there is NO way this girl is out for my money, I've been with some crazies, she isn't one). But for her I think it means a trust and security thing. The issue arises when you consider she has about $1,500 total in her bank account, but because I've always been a neurotic saver, I have about $70,000. To get a prenup we'd have to pay significant lawyer fees (and while I have alot in investments, I try not to touch those, and really in my day to day accounts, I only have a few thousand kicking around). I was thinking we simply jack up our joint account consistently. Like constantly put in more, so that eventually the majority of most of our money ends up in there. We might each only have a few thousand in our personal accounts (that would be ours to spend), but the joint account would be shared by us and might have $20,000 in it eventually. To be clear, with the joint account, we ALWAYS and strictly contribute identical amounts to it for fairness's sake. I love her to bits, and am going into this not expecting failure, but I'm a caution oriented person, and just making my net worth shared strikes me as a frankly stupid move. I don't think we'll ever get divorced, but hell, who does? We all know the divorce rates. Thoughts? Other possibilities? Suggestions? Or how even to make the big joint account sound more appealing and less "I'm-protecting-my-money-for-when-we-get-divorced"-ish? Thanks all!

I'm usually all for prenups, but 70k is not a lot of money in the grand scheme of things. I agree with -better-craft I would not base my decision on getting a prenup on what kind of woman I was marrying, but I would look at a cost - benefit analysis. Unless you have an inheritance coming (and she doesnt) or your incomes are very different or you have a significant amount of money (lets say 250k+), then prenup every time no questions.

Call around to local family law attorneys in your area, and make appointments with 2 or 3 of them for free consults about the marital/nonmarital property laws of your state. You should just have to keep the money separate,, in an account that you never add marital funds to(meaning ANY income you receive while married), put her name on, or put any of her money into, and keep all of the records for the account that show it is premarital money. And don’t listen to the commenters about your relationship not being strong enough to get married if you are concerned about a prenup. Marriage is a contract, congratulations that you love each other, but one day you may not love each other anymore, and that contract will still be there.

personalfinance

SirFriendlyFellow

t3_9l1qi0

MoarPill

e73c2zi

myicedtea

e73e87z

Invest or New Laptop

I am a 19 year old first year student working in a commissioned sales job who right now has $2000 in his savings and would like know where to go from here... A) ($1000) Put money in a Questrade account and get the experience of real trading since I have always done it through mock trading sites B) ($2000) Replace my current laptop with a new one that I can bring to school/take notes/play games/do homework on C) Keep saving Of course you guys will say to keep saving but consider my position as a young guy and think about some of the young adult whims that are pushing me. What would you do in my shoes? Thank you for considering!

A) Trading is for fools who think they can beat the market. Hint they cannot. Don't buy individual stocks, buy low fee index funds in retirement accounts and don't touch it for 40 years. B) What is wrong with the one you have. C) Yep. That is the grind. Once you get $1million you can retire.

Oh my. First off, life really needs to slap you in the face if you're seriously considering dropping your ONLY $2K on a laptop to play Fortnite and take notes in class... Secondly, you have no business gambling the stock market when you have less than two months of savings to your name. Keep that money in a high interest savings account, because you'll need it for emergencies and such. When you have more than 6 months of savings stored, I would think about opening up a Roth IRA and contributing as much as possible to that each year.

personalfinance

NOG-SENPAI

t3_a3ix5o

bhspencer

eb6lr2u

hipst3rgingr

eb76lj7

If you had no morals and didn't care about destroying your credit score, how could you gain? Could you borrow lots of money and declare bankruptcy?

I'm not planning on doing this but I was just curious and I want to perform something like a thought experiment. Let's say you had pretty good credit >750 or maybe even just average credit. You no longer cared about your credit score and you wanted to do a series of actions that resulted in personal gain at the cost of demolishing your credit score. How could one do this? If you take out loans and refuse to pay then the lender can confiscate your assets. But what if you don't have a home or a business?

Take out largest cash advance possible on credit card, or multiple. Then go to a casino and bet it all on a color in Roulette. If you win, immediately pay it back and pocket the rest. If you lose, bankruptcy.

YES! Your math teacher never did this with you? Well anyways, with a simple TVM program on your calculator you can find out just how much money you could make here. My teacher said in theory when he was a kid in college he could have applied for 10-20 cards and maybe even been given them all with huge lines of credit. He could have cash advanced them and had say $10...15k in cash. Now you give this to your brother or some fake person entirely so it isn't in your name - but they pay taxes and etc. You have 12.5k with 35 years investment 4 times a year.........7% thats $142 grand and all you had to do was put up with 7 years of bad credit and assume a 7% return (which is modest, it is thought you can get as much as 9% safely, in which case your returns would be $282k.)

personalfinance

Software_Engineer

t3_vp09n

deeladd

t1_c56dv8a

c56dv8a

factory81

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c56klkn

Guy hit my parked car, his insurance agreed to cover it. Do I have to get car repaired?

I am a 20 year old college student. My car got hit while parked outside of a friends house. The guy felt really bad about it and turned the claim over to his insurance company. The insurance company called me today and agreed to cover the damage. They want me to take it to one of their approved body shops and they will pay the body. Is there any way I can just get a check for the damage instead and not get the car repaired? The first estimate I got was about half the value of the car, and as a college student cash in hand would go a lot farther than fixing the car. The damage is just a rather large dent in one of the doors that doesn't affect the car beyond appearance. I am ok with leaving the car like it is with the dent and not getting it fixed. Is there anyway I can get a check from the insurance company and not get the car fixed? Also the car is in my name and I have insurance if that is important.

They may require you to take it to one of their approved places to get an estimate before cutting you a check (rather than using your original estimate), but no-you are not required to use the money to fix the car. Just make sure you inform them that you don't want the repairs done and they should get it taken car of.

You will most likely be issued payment via a check written out directly to you whether you are going to get it repaired or not. You also are most likely not required to go to a VIP shop for them to write an estimate on the vehicle. You should be able to take it to any shop. Maybe you have a shop that your family has gone to for years or your friends have recommended. The shop would write an estimate, take pictures, and then submit it to the insurance company for review. The estimate is exactly what it is called, an estimate. It is fluid and can change. Something to keep in mind though is that if get in an accident again down the road and these repairs have not been made, it will effect the value of the vehicle. Two situations could occur: If your vehicle is determined to be a total loss, the insurance company will deduct the damage from this prior accident from the final payment. Essentially, the vehicle is worth less than it was worth prior to the accident because of the unrepaired damage. If you get in another accident and the damage occurs in the same area of the car as this current claim an insurance company will likely deduct betterment if the vehicle is repairable. This means that since that area is already damaged from a prior accident, they do not owe to put on a brand new part. They would take a percentage off of what a brand new part would be and make you pay the difference. Just wanted to make you aware of those things, it is ultimately your decision. Let me know if you have any other questions. Source: Auto Claims Adjuster.

personalfinance

Hewhodont

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kakawkakawmf

cwoixd8

NachosGrande

cwoyxy4

Fidelity vs Interactive Brokers

Sadly, I need to move on from Tastyworks because they are not approved by my employer’s compliance department. I am choosing between Fidelity and IB because they at least pay decent rates on sweep vehicles. Any preferences on tools/UI between these two? TD-Ameritrade and E-Trade are also approved, but I am reluctant to go with one of these two because the yield on idle cash is so poor, despite how good their tools may be.

Fidelity isn't made for trading. Their "tools" are practically non-existent. Though they do have all the usually tools, it's difficult to execute quick trades with them. They're made for investing and holding for a longish period of time. I'm not sure about interactive brokers, but I do hear people recommending them for trading. So if they have decent tools then they're probably better.

I can't say I have any desire to daytrade but I'm really curious about the notion that Fidelity active trader pro is too slow to do so. Anyone care to do a side by side video comparison of their daytrader workflow showing where it's too slow? I know it's a resource hog but on beefy system it seems quick to me.

options

jayy42

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diff2

exev7pm

lanatmwan

exijyq4

I honestly don't get how people pay for things?

Me and my husband combined make about 60k/year (me $44k, him the rest, he's a full time student with part time job). We live very frugally in a small apartment (rent $250 ((

We live very frugally in a small apartment This doesn't seem to jive. You should be taking home about $3,500/month after taxes but before everything else (401k, etc.) So after rent, 3k. No car payments, no kids. I'm going to assume your student loans are in the area of 500 combined. I'm also going to assume that food is probably around 750/month for the both of you. This leaves 1,750 between the both of you. Is there something I've left out? Even if you're paying 1,400 into your retirement you should be able to afford a $300 car payment. So if my numbers are just completely off, is it possible that you're nickel and diming yourselves to death? Is your shopping or misc category too big or too repetitive?

I make 13/hr. My wife is a stay at home mom with our 2 year old son. I just bought a $5k van (I paid it off immediately with tax return) with student loan/grant money for her to have at home, and I still drive my 1996 Honda Accord with 225,000 miles, no a/c, and tons of problems, but most are not mechanical and it drives me from work to home daily. We live in a 2 bed 2 bath apartment in a nice neighborhood, for $750/month (half of my take home). She doesn't have health insurance, my son has medicaid (free), and I have an HSA account that I use for her hospital bills/prescriptions, and I just don't go to the doctor, I use home remedies (they all work, some just take longer than others). We have TV/Internet/Home phone, and a basic cellphone ($80/mo) for her when traveling/driving. I have a work cell-phone. We also have $180 in food stamps for food every month, and we have WIC (which isn't much at all at this point, just milk which my son is the only one to drink and we end up wasting some because he doesn't drink enough quickly, and we use the bread but I have about 30 cans of beans I need to give away soon). We manage the $180 as frugally as we can, and I end up pushing out about $100 from my monthly income for food also. We eat out about once to twice a month, costing a total of $40/month at most. We have renters insurance, and full coverage on the vehicles.. we don't buy video games and video game systems, we don't rent movies or go to the movies, we don't do much outing stuff unless it's free. You're making $60k a year? I could own a house with that much a year. There's something wrong with your budget. EDIT: Just to clarify, the only debt we have is student loans, $3500 for her and $2000 for me. She's getting her degree and I'm looking at an additional $3,000 to her current $3500, maybe less depending on the grants she gets. I'll finish my degree once she's working and we can afford day care/pre school, that way I'll make more. Then we will save up and get reliable vehicles (paid in full, I hate loans) and then we will save up about $5-10k (1 year worth) and put it down on a house. So, over the course of the next 3-4 years, we'll be saving and working and pushing towards owning a home. I'm 23 right now. By the time I'm 28 I want to own my own home, and every tax return will go towards the principle.

personalfinance

pfthrowaway333

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CarlSagan79

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c5k44w9

[deleted]

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c5k9e4x

Financed truck was stolen and recovered, but was destroyed by arson. Insurance company settlement offer feels extremely low

I owned a 2003 Dodge Ram 2500. Diesel, top of the line equipment packages, etc. Basically my dream truck. Kept full coverage insurance on it since day one, 500 dollar deductibles. After parking my truck at a friends on the 4th of July so I could safely drink that night, we returned 2 hours later and the truck was gone. Filed a police report, the truck was found the next day about 5 miles out of town on an old dirt road, completely burned down. Truck was declared a total loss, and I received an settlement offer last night for a hair under $14,000. I paid $16,500 for it in January and the trucks book value is around $18,000. Is this it, or can I refuse the offer and wait for them to come back with something better?

They make that value on comps in your area. But they do everything they can to remove decent examples of similar trucks. Go searching for comps that are on sale for a high price and send it to the claims advisor. Be nice about it and just hold out for more. They always offer the lowest they can first. Once you accept the payment though... that's it.

They did this to me as well. They claimed it was worth less than half of what my car was truly worth. You can reject their valuation and work with the agent to find actual comparable vehicles. They probably looked at non diesel base models then added 1000 for the diesel and some random amounts for the other features. Find actual comparable vehicles in your area with the same mileage etc. In my example they offered 4.5k and we eventually settled on 11.5k as the value of my vehicle. The agent cut corners and did not acknowledge any of the specific features my car had, nor did he compare it to other cars of the same trim. Once this occurred my offer really jumped up. Be a thorn in their side if you have to.

personalfinance