Personal Finance Weekday Help Thread for the week of June 04, 2018 |
- Weekday Help Thread for the week of June 04, 2018
- Demoted today with a $9k pay cut - What are my options?
- The Psychology of Money: a thought-provoking list of "20 flaws, biases, and causes of bad behavior I’ve seen pop up often when people deal with money"
- An unconventional example of how a good credit score can save you >$25k
- I ruined my credit starting my business, but now my business is successful. I know I can't bounce back immediately, but what is the best approach I can take to improve my credit score ASAP?
- I’ve accepted 6 offers, but still can’t sell my house
- Over 420k in Private Student Loan Debt. What should I do?
- My Mom Was Scammed Over Computer and Phone - Just Need to Tell Someone, a Warning to All
- I’ve got a very nice job where I make 60k base salary. I have health benefits, FSA account, life insurance, 401k (matches at 3%), free food, and access to a ton of resources. I like my team and I’ve only been here for about 18 months.
- Need help with housing situation
- Getting kicked out at 18 with $2000 to my name. What are my options?
- Job pays flat rate, 500.00 a week. Looked good on paper but now i work no less than 12 hours a day 5 days a week amd often extra on the weekend
- Best Options for High Yield Savings Accounts ( ALLY / SYNC don't have ATMs and personal bank doesnt have cheap wiretransfer fees)
- Keep or cash EE Savings Bonds from 1989-1999?
- Just sold our house! We want to use $100k of the proceeds as a down payment on a new one in three years when my wife is done with grad school. Where should we put it in the meantime?
- In a little over a year...
- I work for the government and have to pay into a mandatory pension plan, but I don't know if I'm going to work for the government forever. Should I start my own retirement fund?
- I am a 16 y/o who enjoys the expensive hobby of DIY PC building. How do I balance saving with spending?
- Private student loans have me stuck between a rock, a hard place, and a harder place.
- Best book for first time home buyer?
- Just got a Capital One Platinum credit card with a $300 limit.
- Best high yield savings account?
- Advice needed: Torn between a new job and a counter offer
- Do I ask for a raise, or just leave?
- A judgement has been filed against me and my bank will not allow me to access my funds
| Weekday Help Thread for the week of June 04, 2018 Posted: 04 Jun 2018 06:08 AM PDT If you need help, please check the PF Wiki to see if your question might be answered there.While we never remove posts just because a question is answered in the wiki, this thread is a low-key place to ask any question no matter how "moronic" you think it might be. Make a top-level comment if you want to ask a question! Also, please don't downvote "moronic" questions! If you have not received your answer within 24 hours, you can feel free to start a discussion. A big thank you to the many PFers who take time to answer other people's questions! For past help threads, please search the Weekly Archive. [link] [comments]  | ||||||||||||||||||||||||||||||||||||
| Demoted today with a $9k pay cut - What are my options? Posted: 04 Jun 2018 08:38 AM PDT Background: I've been with my current employer for almost 4 years. I was hired as a service techinician (servicing/installing bank equipment - locks, safes, pneumatic tube systems, burg/fire alarms, cctv, etc) and was promoted to Service Manager Jan 1 2018. I'm the third person to take (and now lose) this job since I've worked there - It's a small company of 6 employees, and the boss is a hothead and very hard to please. I knew this going in, but I figured for the money it was worth an attempt. I was making $19/hr hourly working full time before, changed to $50k/yr salary once I took the manager job. Today, I had a pretty bullshit "6 month review" - He sat me down and basically said, "I don't think this is working, so I'm making you a tech again, I'll pay you $20/hr. Take the rest of today and tomorrow off, come Wednesday we'll get you rolling in the field again." He has his reasons, and I don't disagree that there were challenges in working together - but nothing was ever documented on paper, I would just have to sit through angry outbursts once in a while every time he didn't like the way I did something. Most critically, I just took a $9000 dollar pay cut - having just purchased a car, and this puts a huge crunch on my finances. I'm going to spend some time today redoing my budget, and I already don't like how it's going to turn out. Here are my thoughts. If I stay here, that management experience withers away, and loses effectiveness on my resume the longer I continue as a technician. Going back to work there is going to be awkward. That much I can manage, but I see it causing some interpersonal drama now that I'm back working alongside 4 techs I was previously in charge of. Lastly, would this qualify as constructive dismissal? I understand that my job duties are changing as well as my pay - but this is an 18% pay cut that was decided unilaterally. Would I be better served declining it and accepting dismissal, trying to survive off of unemployment while searching for something in the vain of what I was previously doing? This is the first time something like this has happened to me, and while my head is spinning a little, I feel like I can make the best of the situation somehow - just need a little guidance. I appreciate in advance any advice you can offer - and if there are any questions you have for me I'm happy to answer them. [link] [comments]  | ||||||||||||||||||||||||||||||||||||
| Posted: 04 Jun 2018 11:18 AM PDT http://www.collaborativefund.com/blog/the-psychology-of-money/ (via kottke.org) I found this discussion on common cognitive biases people make around money enlightening. It opens with a comparison of Grace Groner, the secretary that saved 7 million dollars to give to charity by the time she turned 100 with Richard Fuscone, former vice chairman of Merrill Lynch's Latin America division, who recently filed for bankruptcy. It's a long read, but it's full of rather profound insights in the biases we bring to the table concerning money and finance. Some of my favorite quotes:
and
(emphases mine) And this take on generational investment advice is fascinating:
It surprised me how many major financial decisions can be attributed to common, measurable cognitive biases. [link] [comments]  | ||||||||||||||||||||||||||||||||||||
| An unconventional example of how a good credit score can save you >$25k Posted: 04 Jun 2018 11:45 AM PDT I was recently running some numbers on how to avoid PMI on my next mortgage and was shocked to realize how much a middling credit score was potentially costing me/my wife. Listed below is a table of PMI rates on a 30 year mortgage with varying credit scores(source):
To look at the most extreme ends of the buying a spectrum a 200k home with 5% down an individual with a credit score of 760+ would pay ~$6000 in PMI versus an individual with a 620-639 credit score would pay ~$22000 in PMI(a difference of 16k). A borrower purchasing a 500k home with 5% down and a score of 760+ would pay ~$15000 in PMI versus an individual with a 620-639 credit score would pay ~$54000 in PMI(a difference of 39k). Now you might say it's ridiculous to have a borrower with a ~630 credit score and 5% down buying a 500k home and it absolutely is, but be mindful that when married couples file for a mortgage the lower of the two scores is used. Imagine a recently graduated doctor married to an individual with an unsavory credit score and while extremely unlikely it's still a possibility for the sake of the example. [link] [comments]  | ||||||||||||||||||||||||||||||||||||
| Posted: 04 Jun 2018 08:42 AM PDT I started a company a year ago, and during the process I had a Target credit card that was canceled due to my inability to pay it off (I did pay it off in full about a week after it was cancelled, but had already missed 5 payments). I also had 2 other cards that I was making regular minimum payments on, but they were nearly maxed out the entire time. Now, I'm making good money because my business is experiencing relative success, but my credit score has fallen from 780 to 601 over the past year. Now that I'm making a healthy income, my cards are all paid off and my goal moving forward is to only use them as tools to increase my credit score. Is there a perfectly optimal pattern of credit card usage for someone whose only goal is to increase his/her score? [link] [comments]  | ||||||||||||||||||||||||||||||||||||
| I’ve accepted 6 offers, but still can’t sell my house Posted: 04 Jun 2018 01:37 PM PDT So as stated, I can't sell my house. The house was built in 2011. I bought it dec 2014 for 255k. I am in the Central Valley of California. My house is part of a planned community that was half built when I bought my house. The houses built after I bought my house are roughly 1000 square foot larger and cost about 100k more. The house has granite, wood floors, new carpet (2017) and has been painted with a fresh coat of paint. It is in a gated complex with access to a pool, water park and playground. I am getting married in 26 days and my fiancé's house is a bit bigger and better equipped for a growing family. We listed my house 2 months ago for 279,900. Right off the bat we got an offer for 274,000. We talked them up to 275,000 and accepted the offer. Two days later they've backed out, saying they were going with new construction instead. We have had 8 offers on the house and have accepted 6. All of the buyers backed out within 24 hours. Some have given reasons for backing out such as they found out they were relocating the next day or They found out their interest rates would be 8%. This past Saturday we accepted an all cash offer of 267 and said she could close in 12 days. This woman had previously offered 240 and we told her no. We accepted the offer of 267 on Saturday. Sunday morning, our realtor called us and said the woman backed out because she was driving Through the neighbor hood and saw a do not dig sign placed there because of a high pressure gas line. Apparently this freaked her out and she backed out. We lowered our asking price to 269,900, but I'm not sure that was the right thing to do since we have had no trouble getting offers at the higher price. We are not in financial trouble and can afford to make mortgage payments on both houses, but would obviously rather only have one house. We have considered renting but due to the strict hoa rules have decided that it's not a great option with this house. Does anyone know what the issue is here? Any advice? Do we need a new realtor? Thank you so much for reading this! [link] [comments]  | ||||||||||||||||||||||||||||||||||||
| Over 420k in Private Student Loan Debt. What should I do? Posted: 04 Jun 2018 02:52 PM PDT Hey guys, I am currently a 4th year Medical student, and in the midst of wrapping things up. Reality has hit me hard, like really badly. I amassed this amount of debt because I was in a combined BS/MD program, and now that I will be starting residency soon, I realized I will not be able to get by. Due to the fact of my making roughly 50k a year in resdidency, I will be required to begin paying my loans, but the issue is that my monthly payment, with interest rounds to 4-5k a month!!! I really need to plan out a solution before I begin my personal life. I am 23 years old, and I'm over 400k in debt. Oh Lord. I thought about filing bankruptcy, but if I can settle the loan I can do that too. Someone told me to take out a loan and pay off the student loan so that I would pay 1-2k a month, which is more salvagable. What are my options? Ask me questions if I am missing details. I live in California if that helps. [link] [comments]  | ||||||||||||||||||||||||||||||||||||
| My Mom Was Scammed Over Computer and Phone - Just Need to Tell Someone, a Warning to All Posted: 04 Jun 2018 07:34 PM PDT Sorry for bad formatting and long story, but just need to get this out.I found out yesterday that my mom was scammed for close to 90k through her computer and over the phone. This story starts a year and a half ago apparently when my moms computer screen went black and a message popped up saying you have a virus call this number. My mom called the number and shockingly paid $400 to "fix" the problem. They took remote access over her computer and she said she saw them get rid of the trojan horses...ect Fast forward to a week ago and my mom starts getting tons of phone calls from a number she doesn't recognize. She finally picks up and the guy says that he is from the anti-virus company which is going out of business and wants to give her a refund. My mom logs onto her bank to get her account number when this guy takes remote control of my moms computer and transfers a large portion of her accounts out. This guy then says I am holding your money ransom unless you go get me pre-paid gift cards, and to my dismay did not call anyone. Shockingly she thought the only way to get her money back was to play along ( She insists she has never heard of any scams before) and when the bank calls to ask about the transfers to see if they were scams, she insisted they were legitimate. Finally after a week she tells the guy she won't do it anymore at which point he says it was all a scam and she is never getting her money back. I know what your all thinking and I agree, but I am trying to deal with the emotional fallout from this. It looks like she is going to sell her house and buy a cheaper one to make up for the losses, and still has a untouched retirement account so she will still be ok financially. If your parents are not computer literate make sure to teach about common scams, this was completely unexpected and out of character for my mom. It could have been so easily avoided if she just called me or knew about common scams. [link] [comments]  | ||||||||||||||||||||||||||||||||||||
| Posted: 04 Jun 2018 04:09 PM PDT I just received an offer from another comparable but smaller company for a base salary starting at 85k. This new position comes with excellent health care, 401k matches at 6%, stock options, etc... The commute will be a lot longer but is still doable. I'm torn because I love my current job but it feels financially irresponsible to not accept this new offer. I'm 29 btw. Any advice is greatly appreciated. Thanks! [link] [comments]  | ||||||||||||||||||||||||||||||||||||
| Need help with housing situation Posted: 04 Jun 2018 07:22 PM PDT Hello. I am in my early 60s and I have a question. I currently don't have a job, I am searching for one and have been for a while. I live in a house with my wife and kids, and the house is owned by my wife's parents. The house is completely paid by my parents in law, no mortgage and we have made payments to them for it for about 10 years, but unfortunately lost my business in 2008, and stopped paying for the house for about the last 10 years which was ok with the parents, but we live here. The taxes on the house are very high, and such they pay the taxes for it. Well unfortunately, my mother in law is getting too old to work and will no longer be able to pay taxes on the house, and maybe even her house. This is forcing us to maybe have to move out in a few months. Is there anything I can do to help? My wife and I have small business but nothing that will significantly help my income at all. The job market where I live is very small and I have a hard time finding a job. If you have any questions I can try to answer [link] [comments]  | ||||||||||||||||||||||||||||||||||||
| Getting kicked out at 18 with $2000 to my name. What are my options? Posted: 04 Jun 2018 12:09 PM PDT The last week has been the worst week of my life. I've had a falling out with my parents and I am getting kicked out of my house. I have $2000 and I am currently working on getting a job. My car was given to me by my father when he got a new car. He says I will not be allowed to keep it. I have no other family members to turn to, and only have a few friends. I am completely lost, and have no idea what to do. If anyone has any questions about my situation, please ask and I will answer them. Sorry this post is really bad, but my mind is in a lot of places right now and I'm having trouble thinking. To be quite honest, I'm scared. My main concern right now is surviving. What do I need to do from here to not end up unemployed and living on the streets? Edit: I was a bit unclear in my original post, but I am about to be hired to be a server at Cracker Barrel. [link] [comments]  | ||||||||||||||||||||||||||||||||||||
| Posted: 04 Jun 2018 08:04 AM PDT I started a job as a... lets say drivers assistant on a tool truck. The guy who hired me was an old boss from a former job, nice guy but these hours are flat brutal. I was told I just got a raise to 600.00 a week to take care of taxes, but essentially i am still getting the same rate as before. But the hours never change, hours start around 10 hours on a good day to 12-14 on a late one. Still paid the same rate. Am i getting screwed here? Please help. [link] [comments]  | ||||||||||||||||||||||||||||||||||||
| Posted: 04 Jun 2018 05:11 PM PDT Title says it all. I have done my research and bank already with Ally so Im thinking to go with them. I don't have much just under 20k saving for a house ( after my last post on here, I found out I need to save A LOT more or move from my area). Well my GF doesn't graduate for 2 years so her parents let us stay in the Granny flat for a mere $250 a month. So I'm able to put a nice amount into my savings each month ( more than rent somewhere else approx $1500-1800 depending on if there are any staycations/vacations during the month). The problem I have with these online savings accounts are that they (at least the ones I'm considering, Synchrony, Ally) Don't have ATM or branches in my area ( north San Diego). So I would have to wire transfer the amount each month. From my bank ( Wells Fargo that can be from $5-10). This would pretty much make me loose A lot of my interest gains. Does anyone have a better solution or does anyone know another company with the same interest rates 1.4 or greater that have ATMs,Branches or easy payment options (i.e. attach my other accounts to the savings account and make a payment type transaction to the savings account?) all help is appreciated Thanks in advance /PF! Edit: grammar [link] [comments]  | ||||||||||||||||||||||||||||||||||||
| Keep or cash EE Savings Bonds from 1989-1999? Posted: 04 Jun 2018 06:46 PM PDT We have a bunch of older EE savings bonds. Some are from 88 that look like they will hit their max 30 year life in a couple months. At this point they will stop earning interest, so cashing those is a no brainer. As I understand it, the ones form 89-94 are currently earning 4% (~$1k). Those 95-99 are earning ~2.1% (~$500). I am thinking now is a good time to sell since Trump administration tax rates are low. Don't need the cash, have decent emergency fund, do Roth and significant 401k. Would probably just put the funds into retirement or towards house principal. No other debt. [link] [comments]  | ||||||||||||||||||||||||||||||||||||
| Posted: 04 Jun 2018 11:27 AM PDT Is a CD the best option to guarantee we have more than $100k three years from now? Any recommendations? [link] [comments]  | ||||||||||||||||||||||||||||||||||||
| Posted: 04 Jun 2018 06:33 PM PDT I went from a 600 credit score to a 780 score. I have also paid of my 2011 Ranger 2 years early. My goal is to have a 800 score, I also pay all my bills the day they send them to me. So late fees. :) [link] [comments]  | ||||||||||||||||||||||||||||||||||||
| Posted: 04 Jun 2018 09:22 AM PDT Basically, I contribute a large amount of my paycheck to a pension plan which I cannot opt out of (around 15% every two weeks). If I stay with the government for 35 years or so, I'll get a pretty decent pension at around 80% of my income until I die. But I'm also 28 right now, and I have no idea if I want to work for the government for the rest of my life. But I've been working for them since I was 25 and have no real retirement savings of my own, so I don't really know what to do if I leave. I have quite a bit of money contributed to my pension plan already. So I guess my question is, should I start my own RRSP or TSFA? (I'm in Canada). I guess I also need to figure out what happens to all the money I contributed if I ever decide to leave... [link] [comments]  | ||||||||||||||||||||||||||||||||||||
| Posted: 04 Jun 2018 08:10 PM PDT This summer I will be working, earning ~$400/month (I am traveling for a few weeks out of the summer, so my only real option is working for neighbors, who are very kind and generous), but I will likely not be able to work during the school year as I work very hard in school and extracurriculars. I have saved ~$700 (checking account) + ~$160 (emergency fund, working on building this more). My only regular expense would be the GF, but she is fairly low-maintenance. Parents have said they will cover the majority of college expenses, but I know I should still be saving money for during and after college. I really enjoy DIY PC building and casual gaming/streaming on the side. How much of my income should I be saving vs. allowing myself to spend? TL;DR: I am a 16 year old with low personal income and expenses, how much should I save vs. spend? [link] [comments]  | ||||||||||||||||||||||||||||||||||||
| Private student loans have me stuck between a rock, a hard place, and a harder place. Posted: 04 Jun 2018 02:00 PM PDT I am a medical student, currently half way through my MD degree (leaving 2 more years before residency). I have about $151,000 in private student loans from my undergraduate degree that have exceeded the in-school deferment cap. I have about 1 month left on my forbearance allowance. Navient wants me to make payments of $1700/mo and are unwilling to compromise on anything below a payment of $1400/mo. While in medical school, it is almost impossible to hold a job other than retail (I currently work closing shifts at Target, ~30hrs/wk) because most of my time is dedicated to studying and focusing on school. I applied for refinancing with SoFi, Earnest, and CommonBond, all rejected due to the fact that I have little/no income as I am in medical school. I also tried applying with a cosigner (bringing the combined income to about $100,000) with SoFi and was still rejected for refinancing. Per SoFi, the only reason I am being rejected is based on my income, as I have a credit score of 715 and have never defaulted on my student loads, private or federal. I have no other loans. I have spoken with loan lawyers, refinance companies, and fellow medical students but have not found a solution. My father is cosigned on about $84,000 of the private loans. My main goal is to ensure that the loans he is signed on do not default and screw him and his credit. I am at the end of my rope and it seems to be burning as I climb. I don't know what else to do. Please help!! [link] [comments]  | ||||||||||||||||||||||||||||||||||||
| Best book for first time home buyer? Posted: 04 Jun 2018 08:58 AM PDT Hello All- I'm (27F) close to reaching my financial goal in order to start the home buying process. (3 months out) I've spoken with several different financial experts, I've done my own research online and spoken to experienced peers all within the last year. Now I'm looking for recommendations for books to prepare me and educate me. What would you recommend and why? [link] [comments]  | ||||||||||||||||||||||||||||||||||||
| Just got a Capital One Platinum credit card with a $300 limit. Posted: 04 Jun 2018 04:26 PM PDT I make about $3000 a month gross income. I am 22 and just got my first credit card. I applied for the Discover It Cash Back card but was declined due to no revolving history so I immediately applied for the Cap. One Plat. and was approved for $300 CL. According to Creditwise my score is 650. I am leasing my 3rd car now and have never missed a payment (total of 4.5 years of leasing I'd say). I'm also currently doing a "self loan" with my credit union where I gave them $500 and make 12 payments on it in order to help boost my score and have 4 payments remaining. I'm curious about how much of my limit I am supposed to spend a month to help raise my credit score and how long should I was to get another credit card? I will be paying everything off every month no problem. I guess I just want to increase my revolving history? I'm not quite sure, any suggestions? [link] [comments]  | ||||||||||||||||||||||||||||||||||||
| Best high yield savings account? Posted: 04 Jun 2018 05:11 PM PDT Hey guys, I'm looking for an online savings account to stash my emergency fund in. Roughly $10,000 is how much I'd like to keep. Since it's an emergency fund only, I wouldn't need to make withdrawals very often (hopefully ever), but I need to have access to it just in case. Which account(s) do you guys use or recommend for this? [link] [comments]  | ||||||||||||||||||||||||||||||||||||
| Advice needed: Torn between a new job and a counter offer Posted: 04 Jun 2018 06:38 PM PDT I've been with my current employer for about 6 years working as a field technician for specialized equipment. My starting salary was $46k and I currently make $50k, so wages have been pretty stagnant. Similar jobs in the area pay on average $80k, so I started looking and landed a new job last week at that rate. My current employer doesn't want me to leave and has offered to match the salary. My current job is salary plus overtime and last year about 20% of my salary came from overtime. I currently work from my home office and drive to customers to do repairs. When I finish the jobs assigned to me I go home and I'm free for the day, which is amazing. I've become quite good at the work, so it's not uncommon for me to knock out what should be an 8 hour day in about 5 hours. Seasonally, there are very stressful busy stretches which is why I had so much overtime last year. The new job would be salary with no overtime. The work is similar, driving to customers to fix equipment, but if I finish early I would then head to their office in the city to work on refurb units until quitting time. The benefits are good, but only slightly better than what I have with my current employer. This job will be more demanding and will require me to become proficient in repairing a much broader scope of equipment, but I would have a greater opportunity for growth, and raises seem much more likely with them. I live a simple life and do not have a family so career growth is not very important to me. I enjoy the occasional free time and the flexibility my current job offers me. For years I've had a long-term salary goal in mind and the offers I have on the table meet this goal, though of course I know inflation exists so it's probably not feasible to stay at this pay level forever. I know I could move closer to the city to reduce commute time should I accept the new job, but that comes with a significant spending increase and I absolutely hate cities. Any advice would be welcome [link] [comments]  | ||||||||||||||||||||||||||||||||||||
| Do I ask for a raise, or just leave? Posted: 04 Jun 2018 05:02 PM PDT About 4 months ago I began a job at an advertising startup as a project manger. I was offered a slightly higher than minimum wage hourly pay to start, with the promise of renegotiating a few weeks down the line once we figured out if we were a good fit (I was hired with little to no experience aside from my education in production). Graciously accepted, as I knew I could prove myself as an asset to the company by the time renegotiating came around. It never did. 4 months down the line and the company has been growing rapidly. I've taken a larger role in project development & writing all major materials for clients (articles, social media posts, and scripts for content). I also know for a fact that my work, in a company where no one else has a writing background, impressed a client so much that they resigned with us for a recurring campaign. I'm working more, and due to what I feel is poor record keeping of hours worked, am not making as much as I think I should. Recently, I discussed with my superiors a different schedule where I would only need to come in 2 times a week and work from home whenever necessary at an hourly rate. Essentially I have been offered the same exact rate of pay; which only coming in twice a week would be a tremendous reduction. That said, I want to hold out for a higher hourly, recorded by myself, and basically double my day rate to $200. I feel like I provide a great deal of value to this young company and the work is rewarding as I get to directly see the results of my labor, so I feel as though I'm an especially good position to demand a raise that's more fair to me. On the other hand, as a startup run by people in their early 20's, things tend to work very unprofessionally and I feel I might be better served and appreciated at another more established agency or production company now that I have greater experience in the field. [link] [comments]  | ||||||||||||||||||||||||||||||||||||
| A judgement has been filed against me and my bank will not allow me to access my funds Posted: 04 Jun 2018 08:36 AM PDT My checking and savings accounts have been frozen (Bank of America). I have a court document that states the hold be dismissed. A copy of the court order was sent to BoA, and I went to my local BoA branch and had a manger fill out a form and also mail another copy of the court document to BoA corporate. I was told by the branch manager that they have 20 days to comply with the court order, which sounds like bullshit to me. Is this legal? I need to pay my monthly bills and my accounts are still on hold. I also asked for a phone number to contact someone about this and she said she could not provide one. [link] [comments]  |
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