Personal Finance How Do You Ever Retire at 65 and Live to 95 Given the Power of Inflation? |
- How Do You Ever Retire at 65 and Live to 95 Given the Power of Inflation?
- Grandparents received 6 mystery $10,000 savings bonds in the mail that have matured to $23,000 each; how can this be real?
- 401K Only Offers Actively Managed Funds
- You ALWAYS take a 43% raise, right?
- What kind of scam is this?
- Someone wants me to buy his car for $13,000 so I can pay off his loan be mailed the title. Is this not a scam?
- Illinois tollway collections agency wants $1,000 for tolls from two years ago!!!!
- 1st Post been a lurker, so what are holes in this retirement plan?
- I want to become a certified "Notary Public" for a little extra something on my resume. Are there any risks? How does a young person go about this?
- My fiancee and i suffered a total loss of property due to a house fire in 2017, filing taxes now, and need help.
- 24, no debt, have 5k I want to invest.
- Homeless, no car, no money. Scared to death.
- Previous Employer gave me $550 extra dollars. What do I do?
- I have 55k that I will be using for a downpayment for a house in 1 year, what should I do with it until then?
- (US) Want to make an offer on a House in the US but the owner did a bunch of non permitted work on the place. How do I go from here? Do I just move on?
- Radiologist's billing firm coded my bill incorrectly, my insurance denied the bill. Radiologist says it was done correctly and refused to change it.
- No car payment in 6 years, but now have to get another vehicle and I can't decide, help?!
- Linkedin just charged me over $600 after I cancelled my "free" trial.
- 25 years old with 15.8k debt seeking advice
- 21 Years Old, Preparing for Grad School
- If you were me, where would you put this one time bonus?
- Math Help: Help me figure out FSA Reimbursement Please
- HSA and Future Reimbursements
| How Do You Ever Retire at 65 and Live to 95 Given the Power of Inflation? Posted: 03 Mar 2018 08:20 AM PST I recently created a retirement spreadsheet using excel and am having a hard time understanding how, given the power of inflation, you could ever retire with relative certainty that'd you'd be ok in the long run. Suppose you retire at age 65 with optimistically $1.5 million in savings. Suppose that generates 5% per year in interest income that you plan to live on = $75K/yr. Suppose you pay 30% total income tax on that (fed/state) leaving you with ~$50K/yr or roughly $4,000/mo. Clearly today $4,000/mo is plenty to live on comfortably. But ~30 years from now (I am 36), assuming 3.2% annual inflation, $4,000/mo is worth only about $1,500 in today's dollars. Still maybe ok if you live frugally; maybe have a place to live for free at that point (assuming you didn't need your home equity to get to the original $1.5M nest egg). But the thing that really has me scratching my head is what if you live to be 95? That $4K/mo is now worth only ~$600/mo. That's tough to live on. AND the thing that is even harder for me to understand is how much money it would take to make a material difference — suppose you double the $1.5M nest egg to $3.0M. By 95, that is still only giving you ~$1,200/mo in today's dollars worth of purchasing power? Clearly you might have additional income — SSI and/or work pension etc. But for the sake of simplicity, assume you don't have those additional sources (because 1.5M as a nest egg is a stretch as is, so in coming up with the above numbers, I already shifted them to assume some of that original $4k/mo includes those sources). How does one responsibly plan to live into deep old age (the universe willing) given the power of inflation? Once you stop working and start living on interest income, your dollars seem to devalue rapidly. Is the only solution kids/other family support by ppl working who make salaries inflated to 60-years-from-now levels? Or just enjoy the first 10-15 years of retirement while your money is still competitive? Is the advice on so many finance websites to aim for 1M to 1.5M in retirement savings dated (keyed to today's dollars or even 30 years from now dollars, rather than 40/50/60 years from now dollars)? Or the advice that you should save X times your current salary to sustain X quality of life somewhat incomprehensible, since retirement is not a static situation, but rather a dynamic one in which X quality of life takes increasingly more income to sustain every year? I'd really appreciate any help with reorienting my thinking about this if possible. I thought the retirement spreadsheet drafting process would make me feel more secure, and instead I feel less secure. TL;DR - draft retirement spreadsheet has me confused as to how one can ever reasonably expect to live 30 years post-retirement on interest income alone without many millions in savings given the power of inflation. Please help :) [link] [comments]  |
| Posted: 03 Mar 2018 02:33 PM PST Hi Reddit, With the slew of various financial scams that target older people, my grandparents (and the rest of our family) have been very wary of things that seem "too good to be true". But something strange just happened to them. Out of the blue, they received six $10,000 savings bonds in the mail from the Bureau of Public Debt (three in my grandmother's name, and three in my grandfather's name) that were supposedly purchased in October 2001. When they took them to the bank, the bank said they had matured to >$23,000 each and the money was deposited into their account. My grandparents have no recollection of having purchased these bonds and are at a loss for how they could've forgot investing $60,000 in bonds. We're also all very confused about why they'd just be sent in the mail when they're worth so much money; what if they'd gotten lost or stolen? We would literally have never known they existed, and now we don't know if there are other investments of theirs that they've lost track of. Does anyone know of a way to determine the history of a savings bond/track where they came from? Does the Bureau of Public Debt really just send bonds to people in the mail? Why did they get them mailed to them when the bonds were 17 years old when they're 30 year bonds? Any insight would be GREATLY appreciated. [link] [comments]  |
| 401K Only Offers Actively Managed Funds Posted: 03 Mar 2018 09:19 AM PST Hi folks, My employer recently setup a 401K for employees, but the only options for investing are actively managed American Funds. I still make out like a bandit due to the employer's match, but is there any way for me to somehow move the money to a lower-fee index fund? Thanks. [link] [comments]  |
| You ALWAYS take a 43% raise, right? Posted: 03 Mar 2018 03:21 PM PST Living in the Boston area as a single with no kids (yes, one of many things I hope to change soon) at the hopefully ripe age of 29... So I've just been offered a 43% raise at a different healthcare company. I've been with my current company for almost five years. It's been a nice run, things haven't been as great of late (bit of an awkward workplace romance that's ended with me sometimes struggling to see that person everyday, but that's neither here nor there) That said, a 43% raise to go from $63K to $90K is something you do 10 times out of 9, right? I'll get all qualifiers out of the way: -Benefits are a wash. More specifically, free health insurance with both companies. -PTO appears to be about a wash. It'll come down to manager specific on getting days/time, but I suspect you have good and bad managers within both companies. -I really don't think there's going to be a major upswing in the hours worked. I'm not suddenly going to be working investment banker hours, in other words. Now for the bittersweet aspects of it... -This company is considerably less prestigious in name than the other. It's still well established, not some fly by night outfit by any means, but also doesn't carry the same recognition. -With that comes the fact that I'll be giving up a lot of the corporate goodies I'd taken for granted. Free coffee/water, no more! State of the art cafeteria and elevators and building? Lol. This will be a major culture shock for me working in a place where the roof is coming down (okay hyperbole). Think of a facility where it's like a high school in a less fortunate area (like my Alma mater...) and that's what we're looking at here. Picture one of those buildings they have on the show "Silicon Valley" and you have my current employer. -Currently, I have one day work from home every week, which is a luxury that'll be hard to say goodbye to. This new job DOES have remote work capabilities, but they said "it depends on the person" and "usually not right away with new employees" So, I say all of this to say, assuming no match, I take this one, right? I'm just being a baby when it comes to my comforts in my status quo that I got so used to, right? And a 43% Match from my current employers is probably unrealistic, right? While I've been with the company for 5 years almost, I've only been in this individual role for about a year, which leads me to my next question that they shouldn't be too vindictive about me accepting a new role...particularly when I explain that I didn't seek it out and I make it clear that this is a business decision? Welcome all thoughts and ideas on this one! [link] [comments]  |
| Posted: 03 Mar 2018 06:42 PM PST I was contacted by someone in regards to a delivery job where bulk items would be sent to my house, and I would be responsible for packaging them individually and delivering them to businesses in my area. Everything seemed legit until my contact said a check was being issued to me for a month's worth of expenses. The check arrived today and its for over $3,600. Needless to say, I will not be cashing or depositing the check until I actually get the packages and do some work. It just seems odd that a company would issue such a large amount of money (in hopes that I cash it I assume) before I've lifted a finger for them. What's the endgame here? They want me to cash the check to start some BS with my bank? I'm highly suspicious that this is a scam, I just don't know how it would work. If it is a scam, do I need to take steps to report them to someone? Or just shred the check and ignore all further correspondence? Thanks in advanced for any advice and insight. [link] [comments]  |
| Posted: 03 Mar 2018 02:49 PM PST Link to a screenshot in the comments. He never mentioned that it was loaned. I'm making sure there is a legal way I can go about this since any car I've bought was just with cash. [link] [comments]  |
| Illinois tollway collections agency wants $1,000 for tolls from two years ago!!!! Posted: 03 Mar 2018 09:44 AM PST Hello PF! two years ago my Grandma passed away in Illinois,I live in Colorado.I went to Chicago for the funeral and to the burial site in a funeral procession.In that time I went through a couple of tolls(I wasnt worried about it figuring I would get the bill in the mail,Thats how colorado does it) A few months later I get a bill for a couple of hundred dollars from the Illinois tollway authority.I call to dispute it.I am told I have to appeal it with a letter and proof.I send a letter,with some proof. Never hear back. Then I get a letter from a "Professional account management LLC" stating I owe 1,000 dollars for violations of tolls.I dispute it with them and tell them it was part of a funeral procession and from out of state and am not aware that I would not be billed for the tolls until I was in violation.They basically say "F*& you pay me" I really cant afford to give these people 1,000 dollars. What...If any,are the options I have? I just got my credit score above 700 and dont want a collections killing that! Especially something just feels sleezy when I call them.Bad attitudes from the start. Thanks PF! [link] [comments]  |
| 1st Post been a lurker, so what are holes in this retirement plan? Posted: 03 Mar 2018 04:09 PM PST Thank you in advance for your consideration. I'm 58 now. At 62 I retire, and my plan is draw the SS $1,875/mo, plus my $1,630/mo pension. At 65 I will have an annuity kicking in at least $1,100/mo life. I have a Whole life policy which I can take loan $100k which is tax free, and don't have to pay back... still leaves $125k life Ins for my 2 daughters to split. (Divorced no SO). Home paid worth $85k - Frugal But In HCOL prop & income tax, but it ought to sell fast being lower end 1st buyer. I Plan to relocate to FLA before 1/2022. Using home sale funds and the $100k loan to budget buy home. Currently have $12k emergency fund @1.5% savings. Next 3 years I suspect that will be $75k (probably will CD ladder or after tax invest, for now this market just parking in the 1.5% savings). Already 2018 I've $24,500 maxed in 401k which is currently at @ $550k was 100% equity but just shifted took profits - Yup Feb 2018 to 80% equities/20% now in money market cash preservation. Hit it just at the near perfect time! What luck! I will add 3 more years $24.5k each 1st quarter annually or what ever max IRS allows before retire @ 62 bday in Nov 2021. So from 62 to 65 will have $42,000 annual. So @ 3.5% SWR adds another $21k annually. Finally -Health insurance the big if? Right middle of healthy BMI height weight chart, waist belly 2-3" over inseam, sure seem very healthy, eat mostly right, never smoked, gave up drinking 8 years ago. Family history folks live to 80's. So of course the (USA) Health Insurance costs will be scary but not stoping me currently from this plan. Again thanks, seems all the reading I have done on many of these threads, while not exactly FIRE early sure seems 62 ought be do-able. That said is this a sound plan and /or why isn't this a good plan? What am I missing or should consider? [link] [comments]  |
| Posted: 03 Mar 2018 05:24 PM PST I live in the state of Arizona, and apparently I need a $5000 bond from an insurance company to get my licence approved. I read that, that bond only protects the people I'm notarizing, but I don't get any protection from it. I'm in my 20's and I don't know shit, so if anyone could explain like I'm five to my next series of questions I would really appreciate it. •first off, what kind of documents need to be notorized, and why do they need to be notorized? •The $5000 bond is there to protect the people I notorize, so why would they need protection anyways? What's the risk for them? •What if I notorize something that I shouldn't have? What kind of trouble could I get into? Do I need some form of protection? •(about to drop the mic with this one.) What exactly is a bond? If I get a $5000 bond, do I have to pay for that out of pocket? [link] [comments]  |
| Posted: 03 Mar 2018 06:03 PM PST Hi everyone, first off let me start by saying that no one was injured or killed in the house fire and we are doing well for ourselves now. So anyway, yeah, my fiancee and I lost almost everything in a house fire last July, save for our dogs, our car, and a couple changes of clothes (We went to stay the night with my mom and at the last second decided to bring our dogs.) So, my questions are:
Thank you in advance for your help, and sorry for the formatting, I'm on mobile [link] [comments]  |
| 24, no debt, have 5k I want to invest. Posted: 03 Mar 2018 02:06 PM PST I currently have about 10k in my savings after getting my tax return. I want to invest half of it somewhere. My job doesn't provide any investment benefits of any kind so whatever I do is on my own. I don't know much about personal finance besides the few guides I've read on this subreddit. [link] [comments]  |
| Homeless, no car, no money. Scared to death. Posted: 03 Mar 2018 05:27 AM PST I've been struggling to find a steady job for the past 6 months. My girlfriends stepfather (who we live with) decided to kick me out without any kind of notice. It's been 1 week since I've been kicked out and the terror is really starting to sink in. I have no transportation, and no money. I don't know what my options are at this point. Any advice would be a great help. If you need any more info let me know and I'll add it. EDIT: My skills are mostly warehouse based, such as equipment experience and things of that nature. I live in Louisville, Kentucky. Cost of living is around 600 to 700 a month in rent. As far as the relationship goes, things are fine, and it's the only thing keeping me going. Right now I'm staying at a friend's trying to get a job where they work. EDIT 2: Wow, thank you all who replied to this post. I didn't think I was going to get so much advice, I'm going to take all of this advice to heart and I will keep you all updated as I go! I appreciate all of you kind people so much :) [link] [comments]  |
| Previous Employer gave me $550 extra dollars. What do I do? Posted: 03 Mar 2018 05:27 PM PST So I quit my job about a month ago because I received a nice job offer from a different company. However, two weeks after I quit I noticed my paycheck was short $20, because of a night I had to stay later. I contacted the company and they said they'll mail me a check with the difference. Now, today I check my online banking and $550 was deposited into my account and I haven't been with the company for over a month now. What should I do? It's extremely tempting to keep it. Can I get in legal trouble? [link] [comments]  |
| Posted: 03 Mar 2018 12:37 PM PST All my other financial concerns are covered and all debts are paid. So what should I do with this 55,000? [link] [comments]  |
| Posted: 03 Mar 2018 08:50 AM PST I went to check out a house with the wife and the guy basically must be a handy man or whatever but he did a whole bunch of work himself. This includes electrical, kitchen remodel, adding a firepit ect. My realtor sent me the list after checking it out and makes me nervous? Has anyone ever encountered this, and best to handle? [link] [comments]  |
| Posted: 03 Mar 2018 02:47 PM PST I went to the ER by ambulance last year with a suspected heart attack. After many tests, it was declared pain of unknown origin and deemed not a heart attack. All of the various tests done while in the ER were sent to my insurance company as emergency procedures except the one from the man who signed off on my radiology scans. Somehow, his overseas billing company billed it to my insurance as non-emergency, so my insurance denied it. I called the radiologist's billing company monthly. First they said they would review it, then they said it was submitted correctly. Then they said they would get back to me, but instead they sent it to a collection agency. When I called the Dr. directly, his office manager said he billed it as it was ordered from the ER. All the other tests were also ordered from the ER and there were no problems with coding. Do I have any recourse, or do I need to just suck up and pay the bill. Since it was denied, the discount from my insurance does not apply either, so I will have to pay the entire amount. [link] [comments]  |
| No car payment in 6 years, but now have to get another vehicle and I can't decide, help?! Posted: 03 Mar 2018 03:41 PM PST My car has been paid off for 6 years, I've been enjoying the extra money by traveling and exploring. Last week, 21 year old son totaled his 22 year old truck and now has no way to get back and forth to his job. Our work schedules conflict with each other so we aren't able to share, nor do I have the desire to drive him back and forth. I was planning on getting another car for me and letting him use my 2007. The problem is, I can't decide on what. Every time I make a decision, I've waited to long and said car is gone. Right now I'm looking at a few 2013 Corolla's all between 11998-13599 with mileage between 46 and 55,000 miles. I road trip often and this year plan on taking the grandkids (not his) more often. Should I look for lower mileage because of this? A different car? Any advice is appreciated. I don't care about impressing people. I'm not wealthy and keep my cars as long as possible so I need this one to last. (Son has been having a hard time finding his path in life and is not financially able to help at this time) [link] [comments]  |
| Linkedin just charged me over $600 after I cancelled my "free" trial. Posted: 03 Mar 2018 03:33 PM PST I signed up for their free premium trial because I wanted to message someone on there. I cancelled my membership well before the month ended. I now have a pending charge to my debit card for over $600. They have no phone number or email to contact customer service. Any help would be appreciated. [link] [comments]  |
| 25 years old with 15.8k debt seeking advice Posted: 03 Mar 2018 04:26 PM PST My debt amounts $15800 with an interest rate of 1%. I'll end up with about $2000 (maybe a few hundred dollars more) in savings this summer, where I graduate. I'll end up with a job that pays $2700 a month after taxes. I need to find a new apartment, but it won't be more than $580 a month in rent. Any tips or general thoughts on my economic situation would be much appreciated. Should pay off the loan as fast as possible or fx pay it over the next 10 year? [link] [comments]  |
| 21 Years Old, Preparing for Grad School Posted: 03 Mar 2018 08:07 PM PST Hello everyone, I was just curious on how my finances are doing, and what more I could do to improve them. I am currently a junior in college, and plan on attending graduate school next year. As for my finances, I have around $40,000 invested in a portfolio, $25,000 in a online high interest savings account, and around $5,000 in a brick and mortar bank. What are your opinions on how I should proceed? Thank you. [link] [comments]  |
| If you were me, where would you put this one time bonus? Posted: 03 Mar 2018 08:49 AM PST So here's the situation. I cringe to even write this out, but it is what it is and pretending the problems don't exist doesn't make them go away. I'm pushing 50, got three kids in various stages of teenagerdom, each with piddling college funds. Married, both my wife and I work. But life being what it is we're drowning in debt. I've got one credit card clinging to those 0% promotional balances, and another with a more typical interest rate I think around 14%, both carrying balances over $10k. Our home equity line of about $80k is nearly maxed after work we did on the house. We have no meaningful savings account, a thousand or two, the kind of thing we dip into every couple of months when an expense pops up, and then try to build back up where we can. So here's my question - I find myself with an unexpected bonus of $5000. What should I do? I figure here's my options:
Or something else? Whatever I do it isn't going to solve any of the problems I've gotten myself into, so I'm trying to figure out where it helps the most. Each has its own benefits. I'm not in a position to make major life changes, and it's not like we're dying. We pay our bills. It's just that over the years the debt's crept up on us and it's not going down nearly fast enough. My current theory would be to put it on the equity line, both because it'll give us that breathing room in the event of emergency, but also it might help bring down that interest payment a bit so that as long as I keep up the fixed amount payment I've been making, more will now start going to principal and I'll get a mini snowball going. I suppose the same is true of the credit card but ideally the credit card is something I'll stop using, whereas the equity line is something that's there for a reason, to help the house not fall down. Thanks for any suggestions! [link] [comments]  |
| Math Help: Help me figure out FSA Reimbursement Please Posted: 03 Mar 2018 07:38 PM PST I use an FSA to get reimbursed for medical expenses. This means that eligible medical expenses are tax free right? So, here's where I'm struggling... I submit a $125 claim for my husband's medical expense on my FSA account. FSA reimburses me and then I reimburse my husband (because he originally paid for it). Except that means that I effectively paid for his medical expense (albeit tax free). What I should have done is reimburse him minus what I would have saved in taxes right? This is my problem. How much do I reimburse my husband for? EDIT: We figured it out. So, if our tax rate is 30% then that's the discount. So if he paid $125 he would have saved $37.50 by using the FSA. That means that I need to reimburse him $37.50 and I keep the $87.50 because I've already paid that to to FSA through payroll. This way, it's as if he contributed the $87.50 to the FSA instead of me. [link] [comments]  |
| Posted: 03 Mar 2018 07:36 PM PST Is it correct that I can get reimbursed in the future for qualified health expenses I pay out of pocket? I know that's true for the current year, but is there a limit to the number of years past I can receive back reimbursement? I'm looking to invest what I have in my HSA and should be able to pay out of pocket for expenses up to the maximum out of pocket limit now and in the future. I don't want to miss opportunities for tax saving or investments on my HSA. I've got around $7K in the old fund and just starting a new fund (new employer, new HSA account with different bank). Old fund is with BB&T. Any suggestions for investment funds with BB&T? There are a few options I see on their website. 47yo single male. Thanks!! [link] [comments]  |
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