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    Friday, August 7, 2020

    Personal Finance Weekend Discussion and Victory Thread for the week of August 07, 2020

    Personal Finance Weekend Discussion and Victory Thread for the week of August 07, 2020


    Weekend Discussion and Victory Thread for the week of August 07, 2020

    Posted: 07 Aug 2020 02:05 PM PDT

    If you need help, please check the PF Wiki to see if your question might be answered there.

    This thread is for personal finance questions, discussions, and sharing your success stories:

    1. Please 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, please feel free to start a discussion.

    2. Make a top-level comment if you want to share something positive regarding your personal finances!

    A big thank you to the many PFers who take time to answer other people's questions!

    submitted by /u/AutoModerator
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    MA- Employer just told unemployment that I quit my job, my eligibility is now under review after receiving benefits since March

    Posted: 07 Aug 2020 08:29 AM PDT

    I am a bartender at a restaurant, and when MA shut down restaurants my employer told us all to file for unemployment. I did not hear from them for a week and reached out when they opened for take-out only to find out what was going on, if they were asking people to work, etc. I was told there were no hours really and they'd let me know if they needed me. Shortly after a stay at home advisory was issued in MA, my employer asked me if I wanted to come in for a 3-4 hour shift answering phones. Initially I said sure, but then thought about the risk vs. reward of that scenario and told my boss I was uncomfortable at that time because there were so many unknowns about the virus and transmission and it just didn't feel safe. I have a toddler with reactive airway disease and I just didn't feel good about potentially exposing my family, and asked to return when more was understood about the virus. She understood and since then my coworkers have gotten letters asking them formally to return, and giving them a date to respond by. I did not get this letter, but bars don't open until Phase 4 here so I was expecting that's when I would be called back. Then yesterday I got a message from unemployment that it was reported that I had quit, with my last date of work being March 15. I have been receiving unemployment since March 31st. The message states that if I am found ineligible I could be responsible for paying back any benefits I have received. I responded immediately with my account of what transpired, pretty much exactly what I wrote here. I'm hoping someone can advise me on how I should proceed from here, because I do not have that money available to me if I end up having to pay it back and I'm very concerned about what that would mean for my family.

    submitted by /u/ThumbelinaJolie
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    My boss asked me to resign

    Posted: 07 Aug 2020 11:18 AM PDT

    If this isn't the correct sub to post, I apologize.

    I'm currently a rad tech (X-ray), working two per diem jobs. At job 1, I'm working 3-4 days a week depending on urgency of the hospital. Job 2, I'm working 1 day a week since covid began (before covid, 2-3 days). I'm struggling to pick up hours where I can get it. My manager at job 2 called me and asked me to resign my position because I was working only 1 day a week (but they weren't offering any more hours!).

    Something about this doesn't feel right. I was hoping if any of you would have some feedback at the matter. I don't want to lose this second job. My boss hasn't been is not at all professional. Even the demeanor of the call was abrupt. I just responded that I would get back to her, but before I hung up, she told me again to put in my two weeks. For the most part, I have a good rapport with patients and I have 0 marks against me or my performance.

    Can she just ask me to resign? Couldn't she just fire me if need be?

    submitted by /u/Chardsohard
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    Should I pay my car loan off early, or keep making monthly payments to help my credit score?

    Posted: 07 Aug 2020 04:32 AM PDT

    Hello! I am a 22-year-old college grad who just started a new job. My only debt right now is a car loan totaling $6,200, and the payments are $200 a month. As of right now, each of the payments pay about $30 to interest and the rest to the principle.

    My new job just gave me a sign-on bonus, and originally I was going to use the whole sign-on bonus to pay off the car loan all at once. Some of my relatives have advised me not to do that, though, because the car loan is my only debt and they say that keeping it for another year would help my credit score. I graduated without student loans from a scholarship, and the only thing helping my credit is one credit card that I pay off in full every month.

    Now I don't know what to do! I think my credit is good (it's 760), and I don't even know why I would need stellar credit right now. The SOONEST I see myself buying a house is 3-4 years from now, and I bought my car new 10 months ago, so I'm not planning on any large purchases like that anywhere in the near future. Would paying the loan for another year really make that big of a difference on my credit score? Having that debt kind of bothers me, but I also don't want to mess up my credit score. Any help/advice would be very appreciated!

    submitted by /u/CornCountyMechE
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    Got a new job that pays significantly more than I've ever made and could use some advice

    Posted: 07 Aug 2020 01:59 PM PDT

    Hi Reddit,

    I just found out that I landed a new job that I had applied for which pays significantly more than I have ever made previously. It is a 1099 position and starts at 120K a year (to put this in perspective, my last job was as a sales development rep which payed about 45k, and prior to that I was an E4 in the Army), this means that even after taxes I'll be bringing home easily twice what I'm used to. My wife and I are both working on our student loans and we still owe a few thousand on our car, but beyond that we're debt free.

    My big questions revolve around how to handle taxes (I've been told forming an LLC and then S Corp is my best bet, but that's way outside my scope of experience), and how to get the most out of my income in the long term. Also, any advice about how to avoid lifestyle creep would be appreciated.

    Thanks in advance, I hope everyone has a good weekend!

    submitted by /u/Vonstapler
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    My wife will be out of work in a month and our expenses will be greater than income, how should I prioritize?

    Posted: 07 Aug 2020 05:17 AM PDT

    Our bills before groceries and all misc. expenses leave us with less than $100 per month in un-allocated money. Obviously, our expenses will be greater than my income, but I was curious how I should handle the following.

    Due to a family emergency, we incurred some expenses the last month or so and have about $2.5k on a credit card.

    We have $3.5k in savings. Should I use that to pay off that credit card right away, but have less cash to cushion this loss in income? Do a balance transfer and then pay it off while she is back to employment? I have a credit score of 800+, so I will be able to find a card to transfer it to and address.

    Obviously, holding debt is bad, but eliminating all but $1k in savings is going to result in losing all that money and getting it right back on a credit card.

    submitted by /u/BucolicAnchovy
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    Should I sell stock to pay debt?

    Posted: 07 Aug 2020 09:07 AM PDT

    UPDATE: Opted to do it - thank you all for the advice! I have about 29k in exercisable stock for Zillow. Stock price just went up and I'm wondering if I should sell and pay off my car (16k)/pad a downpayment (house would be ~350k) for a future home purchase, or if I should leave it in the stock market.

    submitted by /u/finding_mimo
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    A bit confused about capital gains tax.

    Posted: 07 Aug 2020 02:41 PM PDT

    I'm not clear on how US capital gains tax would be evaluated in the following situation.

    Let's say I buy 100 units of stock in company X on January 1st and it's valued at $50/share. If I sell any of that stock in that calendar year, I would be subject to short term capital gains tax. If I wait until next calendar year, it's subject to long term capital gains tax. So far so good.

    Now let's say company X is doing well and in June it's valued at $70/share and looks like it will continue growing. So I purchase another 100 shares in June.

    Next year comes around and in March of that year it's valued at $80/share and I decide I want to sell half of my stock in company X. So I sell 100 units.

    How exactly is that tax calculated on this? How does anyone know "which" of the 200 shares I sold? Or would I have to choose specific shares to sell? Could I sell a mix, e.g. 50 of each and pay varying tax on each group of 50?

    submitted by /u/Myllokunmingia
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    Is my loan from Sallie Mae reasonable?

    Posted: 07 Aug 2020 05:45 PM PDT

    I finally got approved for a loan with Sallie Mae. I went to approve it, and I was planning to pay the interest rate through college. But then I realized my interest rate was 12.375%. Is this a normal interest rate. I keep getting told that it's very high. What I'll be paying in interest is more than my loan. I've never done this before so I have no clue if this is normal or if I have any other options. I have until the 23rd to figure stuff out. And the only reason I'm posting is because my sisters tuition is about the same as mine yet she's paying how much I am for 1 year with this loan, for all 4 years.

    submitted by /u/bootie1116
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    What does it mean to "pay by cash" and how do you do it?

    Posted: 07 Aug 2020 12:41 PM PDT

    I always hear people talk abut getting a discount on cars / medical procedures etc by paying by cash but they never explain what this means, are you literally showing up with cash to hand over? Or does it mean you just write a check? How exactly is this done?

    submitted by /u/elmerbronte
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    At what point does it make sense to buy a (used) car rather than pay for repairs?

    Posted: 07 Aug 2020 02:03 PM PDT

    My car is 11 years old with 150,000 miles, it has a module that needs to be replaced which will be about $2,600. According to Kelley Blue Book, my car is worth about $900-$1,000. It has a lot of cosmetic damages but, aside from the expensive repair, nothing that affects the car's functioning.

    I make $3k/month so this repair is really expensive to me. Does it make sense to use that money to put a down payment on a used car in better condition with fewer miles, or will I get more value in paying for this repair and keeping my car?

    Edit: a kind redditor pointed me in the direction of a mechanic that specializes in Kias, who will do the repair for roughly half the price or less, so that's what I'm going to do. But I appreciate your advice because I will need it in the future!

    submitted by /u/veepisadocumentary
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    Student Loan Pay off Advice

    Posted: 07 Aug 2020 03:28 PM PDT

    Hi All,

    I currently have 43k in student loans. I have saved up to 65K in savings. Should I pay off the student loans at once now considering there is no interest?

    Just wanted to get some advice.

    Thanks

    submitted by /u/Harshkane
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    How bad are private loans? I need urgent advice

    Posted: 07 Aug 2020 02:11 PM PDT

    Hi I need some advice. I'm a premed student and i am enrolled for a 2nd degree so i can be eligible for financial aid to finish the required courses needed for Med school. I graduated last year (May 2019) & decided late that i wanted to go to med school. I only needed 8 classes and i finished 4 of them last year using subsidized loans (i maxed out all my Pell grants & am only eligible for loans). Today I woke up to an email from my school saying that "only courses that Degree Works shows as required will qualify for financial aid. Students enrolled in courses not required may have their aid reduced or cancelled." I have to take 4 more classes but they are not considered "required for my major" so i am assuming that I will have my loans cancelled. I'm waiting to talk to the financial office but I'm freaking out because school is supposed to start in 2.5 weeks. The cost for these 4 classes will be about $5500 (based on what I paid last year). Should I struggle to try to pay this out of pocket (I work part time only about ~20 hours a week) or take out a private loan?? Can someone shed some light on the pros and cons?

    submitted by /u/RoyalInterest
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    Seeking a Personal Advisor for my Finances

    Posted: 07 Aug 2020 03:42 PM PDT

    As the title states, I am trying to find someone for financial advice and really am looking for someone to assist in taxes and stock portfolio (401k, ROTH, etc.) I had an Edward Jones representative reach out to me. What are your thoughts and how should I approach researching into this. I've heard Robo-advisors have taken over for a lot of people and am unsure what that entirely means. Thanks everyone!

    submitted by /u/Agent-Shark
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    Tax documents, benefit application documents, EIN confirmation documents, EFTPS Pin, and business bank documents stolen from my car last night – Help. :(

    Posted: 07 Aug 2020 04:52 PM PDT

    Hi all,

    I was planning on taking this file with all of my information listed above to my office, but it was stolen out of my trunk last night when someone broke in. I know it was dumb to leave it in there, but there is nothing I can do about that now.

    I feel like my life is over at 24. There is so much information in that file (social security, EIN, business bank account info, benefits information documents, my last two addresses, cell number, email, etc) that whoever has it could easily be me in a matter of months, and whoever has it is obviously a malicious piece of shit because they only stole that out of my car (plus my skateboard). I've worked really hard to have impeccable credit and a clean record, and I'm applying to law school in the next month or two, so knowing all that could come crashing down if someone does something illegal or takes out loans or bank accounts and fucks up the finances is making me anxious and depressed.

    I did everything I saw that was recommended online thus far:

    • Changed passwords on every single account I have, from Facebook to IRS to banks etc
    • Froze my credit on Equifax, Transunion, Experian, ChexFV, Innovis, and Sagestream
    • Signed up for Norton LifeLock Standard to notify me of potential fraud, and for fraud alerts through Equifax, Experian, and Transunion
    • Froze my business banking account and transferred all funds out of my business banking account.
    • Called FTC and SSA (they said they can't do anything until something has actually happened, and that they would not even take the report)
    • Filed a police report (I had to call and file because online didn't work, so I'm getting a copy via mail)
    • I am sending a letter and form 14039 to the IRS tomorrow to cancel my EIN and to report potential tax fraud so I can get a pin for next year; I already filed months ago for this year. I can have access to a printer tomorrow, hence why I have to wait.
    • Signed up for CreditKarma and alerts.
    • Added alerts to my personal bank account, which wasn't fully compromised. It will notify me of basically any transaction.

    I'm really bummed, but I'm trying to do as much as I can to protect myself, especially with law school apps just around the corner. Is there anything you all would recommend? Thanks.

    submitted by /u/yungmonet_
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    Should I opt out of binding arbitration on a car purchase.

    Posted: 07 Aug 2020 04:30 PM PDT

    I just purchased my dream truck. I found a museum piece of a fairly rare 2013 with only 13,000 miles on it. I purchased it through Carvana and will be picking it up from one of their vending machines on Wednesday.

    Part of the purchase contract states that I agree to binding arbitration unless I inform them that I wish to opt out within 30 days of the purchase. Is this something I should be doing?

    submitted by /u/Rocketfella307
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    Traditional vs back door Roth IRA

    Posted: 07 Aug 2020 01:21 PM PDT

    Please help me to understand what would make more sense for me. I'm single & 28 yo and make around $140k in California. (I expect to make more in the coming years as I continue to renegotiate my contract). I have no assets. How do I decide if traditional or backdoor Roth is more beneficial for me?

    submitted by /u/swswhisk
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    PPO vs HDHP w HSA

    Posted: 07 Aug 2020 01:12 PM PDT

    I am healthy 22 year old and started my first job and need some advice on choosing health care plans.

    Option 1: PPO

    • $64.57 per paycheck
    • $1,000 deductible with $25 copay
    • $2,400 max out of pocket
    • Inpatient/outpatient services: 85% after deductible

    Option 2: HDHP with HSA

    • $58.57 per paycheck
    • $1,800 deductible
    • $3,000 max out of pocket
    • Inpatient/outpatient services: 90% after deductible
    • The company contributes $500 to my HSA annually automatically.

    I have no idea on how to compare these plans. I feel like creating a HSA isn't worth it because the PPO plan has similar premium rates. At the same time, the $500 free contribution to the HSA is pretty appealing, I think that alone can help cover my deductible for surprise medical expenses. Any help would be appreciated.

    submitted by /u/EngineerAndDesigner
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    Should I pay for a Tax preparing course?

    Posted: 07 Aug 2020 01:54 PM PDT

    25 year old, trying to increase my income but still keep my current job.

    Hi everyone! Thank you for taking the time to read and help me out. There's a course that I learned about on YouTube and they will help me learn how to file forms, what to charge per form, marketing strategies, an invite to a Facebook group, and there's a call twice a week to ask the woman in charge any questions that I might have and she would help keep me accountable. Her course is $1,000

    There's another women who has a different but similar course, who I also found on YouTube. She's offering videos on how to file different forms, access to her small Facebook group, some marketing strategies, and occasional calls but not as consistent as the 1st option above. This course is $875 if I want to keep 100% of my profits. $500 if i wanted to work under her umbrella but she would take 40% of my profit per tax return.

    My questions are: Is it worth it to choose either one of these courses? I don't have any knowledge about tax laws or forms.

    How much money did you make your 1st year as a tax Preparer?

    I have no interest in book keeping right now, so I would just be focusing on tax returns. Does this sound like a good move?

    Again, I really appreciate any advice you can provide.

    submitted by /u/helpingtrying
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    Should I keep my tuition money on a high yield savings account or into my 529 account?

    Posted: 07 Aug 2020 07:41 PM PDT

    Hi everyone,

    I am very fortunate to have a grandma who started a 529 account for me. I have $6500 in it. I am starting graduate school this fall and my tuition and fees will end up being about $64,000 for 2 years. I have saved an additional $19,000 for grad school. My tuition this semester is $14,000. I am wondering if I should play it safe and keep my money in my savings which yields about $10 a month or if I should put it all in my 529 account in hopes that it will grow. The account has a return rate of 4.43%. It hasn't dropped during the pandemic but I don't want to screw things up my putting all my school money in.

    Should I withdrawal all of my 529 and close it? Or should I put my remaining money in my 529?

    submitted by /u/PresidentDixie
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    I am a 20 year old with 9k CAD in my bank account currently in school, how should i start investing?

    Posted: 07 Aug 2020 07:35 PM PDT

    I know this may be asked a lot, i really want to start investing for my future but i don't know where to start.

    submitted by /u/_Undead
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    I need advice about paying off my car

    Posted: 07 Aug 2020 05:21 PM PDT

    The only debt I have is my car and I owe 9k. I have 9k in savings, should I payoff my car to live debt free? That would free up $500 a month but that would wipe out my savings. Any thoughts?

    submitted by /u/sergioneptuna
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    Deferred mortgage amount: accruing interest?

    Posted: 07 Aug 2020 07:24 PM PDT

    Mortgage Wizards, is this accurate?

    My mortgage is divided into two parts: an "interest-bearing principal" and a "deferred principal." The deferred principal is about $40k.

    I'm going to have to make some major decisions about this house in a few short years: sell? rent whole house? rent some of house? stay? Obviously, market conditions at that time will be a factor, but in the meantime I'm trying to figure out probable best options. I called my lender and got the following information, but I'm not sure I trust it.

    1) The "deferred principal" does not, and will not, accrue interest. That $40k will stay $40k over time.

    2) If I pay a little extra every month, the overpayment will go toward the interest-bearing principal, not the deferred principal.

    (Why don't I trust the answers I got? Mostly because they're both in my favor, lol. I also felt like the guy answering my questions didn't seem confident in what he was saying.)

    Thoughts? Advice?

    (Also, this is the first time I'm posting in this sub; I hope this is appropriate. There is no flair for "mortgage" so I wasn't sure which to choose.)

    submitted by /u/LadySimini
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    Refinance advice

    Posted: 07 Aug 2020 06:28 AM PDT

    Would like some advice if these closing cost are too high and should look elsewhere. Seems like a great deal to me but I don't know much about these things.

    Currently owe about 144600 on a 30 yr 3.99 rate. We are 5 years into the mortgage and think we're staying put here since houses have nearly doubled in priced since we bought.

    Was offered a 1.99 on a 15 yr with $4800 closing cost

    Our payment would only go up about $100

    Seems like a great deal to me but would like someone else's input on it. Thanks

    submitted by /u/oarriaga26
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    Best Way to Finance a Home Remodel

    Posted: 07 Aug 2020 01:15 PM PDT

    I own a older house completely paid off with a 65k HELOC that's currently running a balance of about 13k from earlier remodels.

    I need to renovate both main bathrooms due to my significant other moving in and the house getting up in age. I've so far gotten two quotes that are both in the range of $30,000 to $35,000.

    Since we aren't married I don't feel like I should ask her to support this renovation. So I'll be floating it myself. My D/I Ratio is between 13% with debt in my name and 50% if you add in co-signed Parent Plus student loan debt with my parents. My debt is Car Payment, Student Loan, and the HELOC. My Credit Card is only ever short term debt that's never more then $1,500.

    I've been swinging between just using my HELOC or doing a Home Improvement Loan that will also consolidate my outstanding HELOC balance. I'm very risk adverse when it comes to debt. My worry with the HELOC is that the interest is variable between 1% and 30%.

    Anyone have suggestions on how to finance this project?

    submitted by /u/SkippytheBanana
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