Personal Finance Why is the Roth IRA so special? |
- Why is the Roth IRA so special?
- ARMY added as a new employer at the beginning of every month. I have no military affiliation.
- Bought a car today. Transmission went out 60 miles from the car lot and everyone had gone home for the day. Is there any chance I can get a refund?
- Health Insurance Denies $70, 000 Pre-approved surgery
- Signed a letter promising to pay my dad's debt to my uncle. Is this a valid contract?
- IRS saying I owe 9,000 for 2014, but I only made less than 5000 that year
- Company has 15% 401k Contribution Limit? Is this Normal?
- How do I catch up?
- $5,000 surplus for the first time in my life.
- First time home buyer programs
- What does "1% of your first 4%" mean in terms of 401k contribution/match from employer?
- Parents keep taking money out of my account?
- Medicaid mistake?
- More down payment into new house? Or put more money into ETFs?
- Get paid monthly but not making enough to really live comfortably.
- Doubling my income in a few weeks, how should I prepare?
- My rental company is not replying to workorders. Should I pay for repairs/replacements myself?
- Mixed answers on how much house I can afford. Thoughts?
- Moving from US to the EU soon (as a US citizen) what are somethings I should prepare or look out for financially?
- Moving to Chase Bank and Have a Question
- Job Offer Negotiation
- Aetna HealthFund HDHP with HSA -- Questions about 2018 contributions and type of HSA used.
- I recently noticed that two CVS gift cards that I had ordered with credit card rewards points were completely drained at stores hundreds of miles away. What can I do?
- How should I invest my finances?
| Why is the Roth IRA so special? Posted: 08 Sep 2018 09:03 AM PDT Hello, I am having trouble grasping the idea that the Roth IRA is so special. I know that the Roth IRA is taxed as you contribute money into and not taxed when you take the money out, but why wouldn't you just skip that step and just invest the money in stocks in a brokerage account and pay the ~15% capital gains tax instead of paying the ~24% income tax on the Roth IRA contributions? I know I am missing something. Is it because if you invest invest the money separately from a Roth IRA you are paying the income tax and the capital gains tax? Can someone please explain to me what I am not getting. Thank you. [link] [comments]  |
| ARMY added as a new employer at the beginning of every month. I have no military affiliation. Posted: 08 Sep 2018 11:30 AM PDT Admittedly this isn't a huge pain, but it is frustrating and incorrect. I noticed once that "ARMY" was prominently displayed as a current employer of mine when I started checking my credit reports. If I dispute this, the item is removed, and then, like clockwork, the employer is re-added around this time of the month. I've looked around for some office within the military that I could contact to have them correct their records, but searching for this topic returns mostly information about how to declare yourself as Active Duty or how to defend yourself from identity theft if you're in the military. Does anyone have any information on how to correct something like this? Any help would be greatly appreciated. [link] [comments]  |
| Posted: 08 Sep 2018 03:16 PM PDT I was visiting my brother about three hours from home this weekend. Saw a car listing I was interested in, went and looked at it, drove and looked great, so I went and got cash from the bank and bought it. This was at about 11:30 am. They closed at noon because it's Saturday. I headed home and made it 64 miles before the transmission went out and left me sit on the side of the highway. I had it towed back to the car lot because I was a heck of a lot closer to there than home, and then my wife took me the rest of the way (she was following me in our minivan with our kids.) My question is, what are my odds on a refund on this thing? I signed a document saying it was being sold as is, but this is a private dealer and has the guys name on the sign. I guess I'm hoping he has some integrity and cuts me a break considering I didn't even get to drive the thing for an hour. I also took all this money out of my savings so I'll be pretty bummed if it's just a complete loss. A transmission is completely out of the question to replace on this car. Thoughts? I probably won't hear from this guy until Monday so I have to stew about it until then. Edit: I live I Indiana if that matters. Edit 2: Guy just called me and the first thing out of his mouth was that he was refunding my money. Said he was sorry and not a crook about 15 times. Guess there really are some good people left in the world. [link] [comments]  |
| Health Insurance Denies $70, 000 Pre-approved surgery Posted: 08 Sep 2018 04:47 PM PDT Today I received a denial for payment from my insurance company that was pre-approved. I had major surgery for Thoracic Outlet Syndrome in July, 2018. There is only one surgeon for this in my "in" network plan and she's very young so I opted to travel out of state to get this operation. I selected an excellent doctor who was out of network as is the hospital where I had this operation. My surgeon's office got a pre-approval for this operation from my insurance company and I have written documents backing this up. I double checked with my insurance company before surgery and was assured this surgery was approved and I would be left responsible for the $4,500 deductible. Additionally, I received a letter before surgery from my insurance company confirming my out of network coverage. The denial letter I received today from my insurance company informs me it was not deemed medically necessary surgery and therefore they would not pay the hospital for it. My surgeon would not have operated on me without pre-authorization nor would I allowed it. We are not wealthy people and have extended family helping with the $4,500 deductible. This 70k bill will bankrupt us. I will contact my surgeon's office Monday and do have written records from them confirming the pre-authorization. I have the records necessary to confirm the pre-authorization. As an aside, my surgeon was paid already by my insurance so I guess the insurance company deemed it was medically necessary for her to operate on me, but not in the hospital? This begs the question, what is the purpose of getting a pre-authorization if they can "un" pre-authorize it after they get the bill. Getting this letter sucked and ruined my day. Does anyone have any other advise out there or how to handle this? [link] [comments]  |
| Signed a letter promising to pay my dad's debt to my uncle. Is this a valid contract? Posted: 08 Sep 2018 12:46 PM PDT About ten years ago, a real estate deal my father and uncle worked on went belly up. Somehow, my father wound up owing my uncle about $50,000, mostly because my uncle took out a HELOC to finance a deal. My uncle, to cover his ass, asked my dad for a notarized letter confirming my dads intent to pay off the debt and in case my father should pass, that my sister and I would cover the debt. I was young and stupid and signed it to support my dad. I am now getting married in December and am terrified that one day my wife and I will be responsible for this debt. I am angry at myself, angry at my dad and angry that no one in my immediate family said "hey, that is probably a bad idea." It is my understanding that since I and my sister did not stand to receive anything in exchange for taking on this debt, that it may not be a valid contract. But what are my options? I have asked my father to provide me the letter. My plan is to speak with a lawyer, review said letter and see what options he suggest. I am pretty scared that I may have signed away my future. I am an idiot. [link] [comments]  |
| IRS saying I owe 9,000 for 2014, but I only made less than 5000 that year Posted: 08 Sep 2018 02:00 PM PDT I filed my w-2 for 2014 before the last deadline April 2018, and now I am getting a notice in the mail saying I owe 9K even tho I only made around 5,000 dollars in 2014 whats going on, is this a mistake? [link] [comments]  |
| Company has 15% 401k Contribution Limit? Is this Normal? Posted: 08 Sep 2018 07:46 AM PDT Hey everyone, so I have been contributing 15% to my 401k since I past the 1 year mark of being employed where I am now (Here just about a year and a half now). I make roughly $50-55k a year and am living at home practically expense free, which I plan to continue doing so for a few more years. I actually made a post earlier in the week looking for opinions on opening a taxable account vs. bumping up my 401k contribution. I already max out a Roth IRA. Well after hearing some input I decided the best bet would be to up the 401k contribution while I can. So I went to make the change from 15% to 25%, but was told with our plan, 15% is the max allowed here... Is this normal? What are my options? It is a crappy feeling leaving tax-advantaged money on the table... I'd love to hear some feedback on the situation I'm facing and what else I could do if this is infact the case. Thanks everyone! [link] [comments]  |
| Posted: 08 Sep 2018 02:35 PM PDT I've got a decent paying job, making about $70k. Just over 40, I started "saving" for retirement about 6 years ago. Only have about $20k in my company matching(they match up to 3%) 401k. How do I catch up? [link] [comments]  |
| $5,000 surplus for the first time in my life. Posted: 08 Sep 2018 05:20 PM PDT I recently settled a law suit. After all of the expenses are paid, I'm left with $5,000 above and beyond my living expenses. Is that money best put in a savings account, or invested, or a little of both? I've lived hand to mouth for years, so I don't know anything about this. What's the best way to make this little bit of surplus work for me? I have an emergency fund of $1,000 at the moment, and my needs are modest. [link] [comments]  |
| First time home buyer programs Posted: 08 Sep 2018 01:13 PM PDT I'm 22 with 20k saved- in about 8 months I am wanting to buy my first home. I keep hearing about first time home buyers program. Is this something I should take advantage of? Any down sides or hidden things I should know about? [link] [comments]  |
| What does "1% of your first 4%" mean in terms of 401k contribution/match from employer? Posted: 08 Sep 2018 06:48 PM PDT I asked the HR rep on slack what the employer match was at our company and that was her reply. She was walking out the door when I asked her and I wasn't able to get her to elaborate on that, does anyone here have any idea what that means? [link] [comments]  |
| Parents keep taking money out of my account? Posted: 08 Sep 2018 02:38 PM PDT Alright so I'm a teen and I recently got a job and I have a joint account with my dad with direct deposit set up. Unfortunately, I have parents who think that I do not manage my money very well so they take out my money as soon at is put in and don't give me any of it while saying that they are saving up for my college tuition. So I recently talked to my employer and switched from DD to a regular check so I could spend a little bit of it before they take it away but its been three checks and nothing has changed. My dad knows about it and I feel like he blocked the change I made. Is there any way he could do that? [link] [comments]  |
| Posted: 08 Sep 2018 06:52 PM PDT I got a letter saying i owe them 21k cause from a certain period of time i wasn't eligible for medicaid but i never received a letter saying i wasn't eligible, instead i always got letters saying that im eligible & my benefits will continue. Why would they bill me if i was never told i wasn't eligible? Can i fight this? Is it a mistake in there system? Im scared. Please help! [link] [comments]  |
| More down payment into new house? Or put more money into ETFs? Posted: 08 Sep 2018 10:15 AM PDT 30 y.o. going to have around $100k saved next year, looking to get into a house around $500k. Current house will net around $25k when sold. I expect in 15 years a home like that will be worth $650+ with improvements. The question is, should I put down as much money as possible and get rid of PMI quickly? Or is it better to save the money and grow it? Kind of a newbie at investing. Other info: married, one kid, another on the way, make around $200k per year. Minimal other expenses. Also, homes are very expensive where I live, $500k is just to get a decent place... [link] [comments]  |
| Get paid monthly but not making enough to really live comfortably. Posted: 08 Sep 2018 08:37 AM PDT Hello everyone and thanks in advance. I am draftsman working in a small local engineering firm. I am currently making 15 dollars per hour, with no benefits or vacation days(working as a contractor). The reason I don't have benefits is because I wanted a 4 day (10hrs each) work schedule instead of a 4.5 day. (The last half day is a waste of time). The company pays monthly as opposed to every two weeks. I've been doing the basic procedure (25% of my check for taxes, 20% for savings). They hired me straight out of high school and began training me as a draftsman. The environment is ok and the work is fulfilling. The only problem I have is if I take any vacations(holidays included) whatsoever or splurge(Taking GF to a nice restaurant,hobbies,etc.) I have to continue super short on money until my next paycheck. Should I ask for a raise? Or am I in a good position relatively? I would like to move out of my parents house but it doesn't seem feasible. [link] [comments]  |
| Doubling my income in a few weeks, how should I prepare? Posted: 08 Sep 2018 05:46 PM PDT I have a "good" problem.... I am undergoing a career change that carries with it a significant increase in income. I retired from the military and lucked out with an amazing new job starting in a few weeks. My income will go from about $75k to around $150k, and from one steam of income to three: military pension, VA disability, and new salary. That's going to be about an extra $4k at least per month which is nuts. This puts my wife and I in a completely new situation financially and I want to make sure we are prepared to handle this sudden influx of money. We have lived below our means for years and had about 6 months expenses saved up, but that has eroded down to about 3 now for several reasons, one of which is an 8 week gap between my last paycheck and the next. We can handle that no problem and are also funding a nice vacation in the mountains during my time off. But I want to be prepared so I don't go crazy blowing money when it starts to rain in a few weeks. (I'm lusting after an orange Jaguar convertible, send help) We have zero debt except for our home, which only has about $77k left. We use our credit card near daily and pay it off every night. We live in a lower cost of living area in the Southeast where there is basically nothing to do. We self-levelized all our bills years ago and set up multiple funds for various expenses that we fund throughout the year. Our finances are largely on autopilot already. My thoughts are to build up our emergency fund back up to at least $30k (it was that before...) and then start slamming money into the house. Wife desperately needs a new car, hers is 12 years old and worth about $1500 on a good day, so I'll get her a late model replacement. She is an amazing woman who struggled her entire life, so I want to set up and maintain a "kindness fund" account with a few thousand kept in it that she can use on anyone she meets anytime to help them out. Other than that I'm stumped on what to do with the money. Invest for sure, but I'm focused on the shorter term right now, what we need to think about over the next few weeks/months to get nailed down. Things like financial planning/legal/insurance/etc concerns. I need guidance. (And yes, expand our lifestyle a bit and enjoy the fruits of our frugality and work are definitely on the list,but I don't want lifestyle creep to wipe it all out either.) So PF, what would YOU do in this situation? [link] [comments]  |
| My rental company is not replying to workorders. Should I pay for repairs/replacements myself? Posted: 08 Sep 2018 06:20 AM PDT I moved in a month ago and they haven't replied to any workorder (submitted both on paper in-person and online) yet. Basically there is a small leak and there is some mildew/mold on window blinds that I want replaced. Can I be charged or fined for fixing things myself? [link] [comments]  |
| Mixed answers on how much house I can afford. Thoughts? Posted: 08 Sep 2018 09:27 AM PDT I'll be taking a job within the next few weeks that will require me to relocate to Maryland. I'm not against renting, but because of the high rental costs I would like to have something to show for my efforts after a few years. Initially I'll be making 85k, and my wife will bring in approx. 30k. We have a 2 year old son who will need to be in daycare 5 days per week (~1100 to 1400) and we also have student loan payments at about $180 per month. Other than those costs we have no debt, own both our cars, and want to ensure we make healthy retirement contributions. I'm also a veteran so can utilize my VA loan to remove paying PMI. I've heard everything from you can spend no more than 200k to up can afford 320k. I figure the older my son gets the less I can expect to spend on daycare, Which is sizable. Anyone have any thoughts? I've sat down and run the numbers a few times but I feel like I'm missing something. I don't want to just squeak by either.. Emergency funds are important. [link] [comments]  |
| Posted: 08 Sep 2018 08:57 AM PDT I know I will still need to file taxes each year at the federal level, I don't anticipate being taxed at a lower rate or making above the the threshold (moving to a Scandinavian country). What are other things I should clear up or shut down before I move? 1) should I maintain a credit card? 2) should I maintain a US bank account or should I move all of my savings over seas? 3) 401k should I keep that money in the 401k or cash it out? Should I roll it over to a 401k not with my current employer? 4) I have a good chunk of money that I trade within Robinhood can I continue to do that from abroad? 5) vehicles I current have 2 vehicles should I sell them both or store extra stuff in one and pay for storage of the vehicle? Thanks in advance for your help! [link] [comments]  |
| Moving to Chase Bank and Have a Question Posted: 08 Sep 2018 06:45 PM PDT I got my first bank account a couple years ago with U.S Bank. Long story short, it's not worth my time having an account there. It's just very inconvenient for me. I plan on switching to Chase on Tuesday after a direct deposit gets to me. However, the next 2 weeks for me are a bit busy, but I'd like to switch ASAP. So, I've been thinking about opening my account online now and just close my U.S Bank account after that deposit comes. Is this a good idea? Additionally, if I do open it online, will they automatically mail me a debit card or is that something I have to call or go into a branch to request? Or is this all just too much and I should just find time to go into the branch and do all of it there? Edit: Accidentally referred to direct deposit as a check. Fixed to remove potential confusion. [link] [comments]  |
| Posted: 08 Sep 2018 08:18 AM PDT Hi all. So I am a 23 year old M with 2 years of work experience. I received a job offer for a about an 8% bump in base salary but a 1% cut in total comp. How do I negotiate higher. I want a 10%-15% bump in total compensation. An external recruiter is working on placing me and acting as a buffer between myself and the hiring company. I do not want to accept the offer I was given at the current level I am at. What can I do to maximize my return and get the offer that I think I am worth? Thank you. [link] [comments]  |
| Aetna HealthFund HDHP with HSA -- Questions about 2018 contributions and type of HSA used. Posted: 08 Sep 2018 06:18 PM PDT I had a few questions about the federal employee HDHP plan by Aetna.
I could not find this anywhere and maybe I was not looking in the right location... Does Aetna require the use of a specific HSA account or do you bring your own HSA account to the plan and give them the information so they can deposit their $62.50 monthly into the account? I want to know this so I can research the required HSA or research a good one that I can bring to the plan. For that matter, if anyone here has recommendations on an HSA to bring to this plan, I am all ears.
I read up a bit on this and it seems like as long as I am eligible for my HSA through 2019, I can make the contribution for 2018. However I do not know how to calculate how much I should contribute. Wouldn't Aetna be contributing 62.50 in December of 2018? So I would have to take this into consideration right? I will be honest, this process is very confusing to me, so a thorough run through of this process would be helpful for me. It would be awesome if a current federal employee or someone using this plan could chime in. The full plan can be read up on here: https://www.opm.gov/healthcare-insurance/healthcare/plan-information/plan-codes/2018/brochures/73-828.pdf Thanks! [link] [comments]  |
| Posted: 08 Sep 2018 04:42 PM PDT I used Discover points to order the gift cards in May 2018 and one was drained in July and another in August. I received them in the mail. Someone must've either guessed the number on the card or had access to the card and then guessed the PIN through brute forcing on the online CVS balance checker. [link] [comments]  |
| How should I invest my finances? Posted: 08 Sep 2018 04:41 PM PDT I'm 25 and for years have been getting "this and that" advice from people on investment. I make $80,500 a year plus a bonus, which usually equates to about 17% of my salary. I contribute 8% to my 401k, which matches up to 3%. I've heard that I should max out my 401k first before investing with a Roth IRA, but I've also heard people suggest going straight for the Roth IRA. I've heard other suggestions as well, and I honestly don't know what's best. I don't have really any savvy investors in my life that I can ask. I've poked around this subreddit, but can't seem to figure this out for myself. Help would be great. Once I get my 2018 tax returns, I plan to invest in a two family house so that I can live in one side and rent out the other. Other than that, I don't really know what I should be doing to plan for retirement. How can I make the most out of my money to best save for retirement? [link] [comments]  |
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