Personal Finance Regarding Roth IRAs: Simply Putting Money into a ROTH IRA Does NOT Invest that Money. You Also Need to Allocate Those Funds! |
- Regarding Roth IRAs: Simply Putting Money into a ROTH IRA Does NOT Invest that Money. You Also Need to Allocate Those Funds!
- Saving money is kinda similar to dieting/losing weight. It’s a routine that doesn’t show up immediately but doing this over six months or a year or longer shows results.
- [UPDATE] Bought a car a month ago, now surprise! Transmission needs replacing. Don't know what to do. Help?
- Please help my father might die I have no relatives he’s the last of my family not sure how to pay the bills all the bills are under his name.
- How can I buy a tiny house? Im close to homeless and having a 200 square-foot room to live in would be heaven to me.
- Can someone please explain Money Market Accounts?
- I Just Opened Up A Traditional IRA and a Roth IRA with Fidelity.
- I'm having troubles finding a full time job and it's starting to get to me
- Have too much money in my savings/emergency fund. What should I do with it?
- I think I am saving money to the point that it is no longer enjoyable
- Should I take the plunge?
- Terminated from my remote job while living and becoming a resident in a different state, which state do I apply for unemployment in?
- Need advice for my wife who co-signed on a car loan
- Long-term vs short-term student loan (refinancing)
- Is this a smart refinance move? After two years of ownership, from 4.5% to 2.75%. Savings of $110 a month (30 year to 25 year loan, ~800 credit score)
- What does it mean to list my estate as a life insurance beneficiary
- Looking for advice on what to do with my money
- Where to find how much property tax will drop?
- Should My Twin and I buy a house now or next year?!
- Bank that Offers Free ACH to External Account?
- Tempted to Accept Pre-approved Chase Sapphire Preferred Card - Change My Mind!
- I [25 yo] got evicted from my apartment when I was 22 because I didn’t pay rent. I need advice on how to go about this now since I am worried about what might happen.
- Saving, best percentage of income I should save each paycheck
- Vehicle Decision
| Posted: 22 Sep 2020 06:38 AM PDT I wanted to just make this short PSA to potentially prevent other investors who are new to ROTHs from making the same noob mistake I made. Following the advice learned from years of lurking on this sub, I opened a Vanguard ROTH IRA a little over 2 years ago. I ultimately ended up contributing the max 2 years in a row. I kept monitoring the balance and saw that it didn't seem to be growing too much, but figured that was just a combination of the current market going up and down + my monthly contributions. Turns out the funds by default just sit in a money market holding account, NOT being invested. You have to manually allocate your funds to a specific (or a combination of) investment/target retirement accounts! Once you select your investment accounts, you can have your monthly contributions automatically go there instead. I'm sure this is super obvious for the majority of you, but sadly I didn't know about it. Hopefully someone else can learn from me and not the hard way. Don't miss out on months or years of potentially growing and earning that compound interest like I did! Edit: a little overwhelmed by all the messages of thanks I've received! It's a comfort to know I'm not the only idiot out there. I am now happily accepting a .01% annual share of all the net cash my esteemed financial advice just saved you all :D [link] [comments]  |
| Posted: 22 Sep 2020 12:05 PM PDT It starts with cutting back on the daily purchase of that $4 Starbucks coffee/tea. Instead, it involves replacing your daily coffee or tea with buying large quantities at a discount from Costco or Walmart or wherever you get a good deal. This discourages you from going to Starbucks. Weight loss is replacing that one donut or pastry with fruits. To discourage yourself from binging on pastries or donuts, you buy a lot of fruit so you gravitate toward that in your home. It involves cutting back the $11 burger that you get from various restaurants from four times a week to say two. Weight loss involves replacing that hamburger with a chicken breast sandwich from four times a week to two. This is an example of a behavior. I have no idea your spending habits or how much money you make or have. It is weekly or monthly buying some of your necessities with coupons. Weight loss involves reducing your intake of food. You don't go from eating a whole large pizza to eating two slices overnight. You go from eating the whole pizza to eating one fewer slice each week or month. My point is the results rarely show up overnight. You might save a few bucks every week. For weight loss, you usually need a week to lose one or two pounds. But over six months, maybe you've saved an extra few thousand bucks or over six months you've lost 15 to 25 pounds. The little changes add up over time. That's the name of the game of saving money just like it is for losing weight. [link] [comments]  |
| Posted: 22 Sep 2020 08:41 AM PDT I posted about a week ago regarding a $7k fix we thought we'd need on our car. This community was incredibly helpful and sympathetic, and people seemed genuinely interested in our situation and the outcome, so I thought I'd post an update. You can read the original post here. I did what everybody suggested and called around to both independent general mechanics, independent transmission shops, and chain places like AAMCO. The transmission-specific places all said they could do it for between 3500 and 4k, but one independent general mechanic said they could replace it with a junkyard-pull transmission for 2300. I trust that guy, because I'd been to him a few times already for state inspection stuff and felt confident about the shop and felt like I was treated fairly by him. The new (to me) transmission will have a ninety day warranty, and a mechanic's warranty on labor for a year. We picked it up last night and drove around for about an hour and it's running smooth. What a relief. Never thought I'd be relieved about spending $2300 but here we are! Thanks again to everybody who offered help, advice, and just commiserated with us. [link] [comments]  |
| Posted: 21 Sep 2020 09:46 PM PDT Please help my father might die I have no relatives he's the last of my family not sure how to pay the bills all the bills are under his name. I'm 29 had a really strange upbringing but it left me not having any education and have only Done odd jobs I don't have a GED either I've never paid any bills before and don't have any credit My father was in the Air Force for 27 years he is now on a ventilator Because of heart failure All I know is he's paid off the mortgage of the house. I found his birth certificate and social security number. I also have his computer login and emails? What do I do Im the only family member left? And only have 120 dollars But I do have ebt Was told Estate attorney (I've looked it up and can't afford it I only have 120 dollars) Human services Not sure what else to do it's all overwhelming and confusing My dad might be weaned off the ventilator tomorrow what should I ask him? If he dies? (Edit) also I don't think my father has a will I live in New Mexico and it says this if you die without a will When someone dies without a will (or intestate), New Mexico probate law designates the surviving family members to whom the estate will pass. ... If the deceased left no surviving spouse, then the deceased's surviving children (both biological and adopted) receive the deceased's property in equal shares. Would everything just go to me then maybe this is why he didn't write a will? [link] [comments]  |
| Posted: 22 Sep 2020 10:26 AM PDT And I can live anywhere in America so a cheaper area is totally fine with me as long as it's safer. How do I find a tiny house and either rent one or buy one? [link] [comments]  |
| Can someone please explain Money Market Accounts? Posted: 22 Sep 2020 06:17 PM PDT One of my friends was talking about her Money Market Account. I've looked it up online but I'm still a little confused. What is the interest rate based on? Can you lose money like you can in stocks? What are some general pros and cons? Do you need a minimum number of deposits/withdrawals? I'd like to let my emergency fund remain pretty liquid but still earn more interest than it is in my savings account, is this a good option? TIA! [link] [comments]  |
| I Just Opened Up A Traditional IRA and a Roth IRA with Fidelity. Posted: 22 Sep 2020 02:36 PM PDT I have an idea of what I want to put in my Roth IRA, but not my Traditional IRA. Any suggestions? I'm wanting to fully invest in Index Funds. I have been reading about the three fund portfolio on Bogle heads. So any advice would be great. [link] [comments]  |
| I'm having troubles finding a full time job and it's starting to get to me Posted: 22 Sep 2020 02:53 AM PDT Before COVID, I had a part and full time job that paid me once a week - one job on Friday, then next week, another on Thursday. It was a pretty good balance and helped carry me pretty far despite my mom and her friend consistently asking me for money. I was strict with how much I saved, and I was doing my best to try and save as much as possible. I was literally exhausted. All the time. I've been replying to job postings loyally. The earliest posting I've replied to was one that had been made just 6 hours prior. I'd get messages on my gmail saying that my resume was being looked at, but I never get a follow-up call whatsoever. It just feels like jobs are making postings just so people reply to them rather than to hire them in the midst of COVID still. But with CERB ending and flu season getting closer, I don't know what to do. Which brings me to my question - what should I do? I know I should keep searching and trying, and I am. I'm trying to wedge myself in to something, at least, with even seasonal work, but I've had no luck so far and it's killing me mentally. I'm playing with the thought of even starting online businesses, but at this current stage, I feel like I need at least another 9-5 before I go into that. I just feel stressed out and scared of what's going to happen for the final quarter of this year and the rest of 2021. [link] [comments]  |
| Have too much money in my savings/emergency fund. What should I do with it? Posted: 22 Sep 2020 06:52 PM PDT I have a regular savings account with my bank which I'd say has around $5,000 more in there than what's necessary. I could take that money out and still have plenty for an emergency fund that lasts 6 months. But I'm not sure what I should do with it. These are the options I was mulling:
Thoughts? The other thing I keep thinking about is just general market volatility and if now is the time to consider the first two options over the next few months. But I'm probably overthinking it. I'm also open to other suggestions entirely of course. [link] [comments]  |
| I think I am saving money to the point that it is no longer enjoyable Posted: 22 Sep 2020 02:46 PM PDT I've seen a few variations of this post. I've been feeling slightly off in the past several months about my relationship with saving money. It used to bring me a lot of happiness but now it doesn't. I am not posting this out of grandiosity or to show off. I have a job and also own a side business. I am 30 but have really only been seriously saving for the past 2 years or so. I spent 4 years in grad school getting 2 masters. I have no debt at all. I rent an apartment and don't plan on buying in the next 2 years due to possibly relocating. Schwab Roth: 25k Brokerage: 71k Vanguard Simple IRA: $11k Solo 401k - just opened but I will put 15k in this before the year is over. The Simple IRA is for my full-time job. They offer a 3% match. I make $61k there. My own business is a therapy practice I started mid last year. I work on this business about 15 hours a week. For this year I will have a pre-tax profit of $70-$75k. I have it set up as an S-Corp and will take a salary of $45k. The rest I will take as distribution to save on the extra 15.3% tax. Before this year is over I will add another 5k to the simple IRA, 5k to the employee contribution for my solo 401k, 9k to the employer contribution, and 30k more to my brokerage. By the end of this year if the markets hold I should have about $160k in the various accounts. All in for this year I am looking at having saved about 60-70k in the various accounts. While my practice could decrease next year it is not likely. It has grown every month and is very stable. I live off of every other paycheck from my w-2 job. My pay this year pre-tax will be $130k. Next year I anticipate being at $150-160. My main question is what's next. With what I have in place, I could put $30k a year into retirement accounts and still have more than I would spend. I can put together a healthy 20% downpayment fund in about 6 months since I have already put money to the side for it. I don't have kids and will wait to have them before I start their college account. I just don't know what I should be striving towards anymore. Comments from the community welcome [link] [comments]  |
| Posted: 22 Sep 2020 06:11 PM PDT Hello ! I'm having a bit of a dilemma ... At my current job I get paid roughly $22.50/hour (I'm salaried) and I'm pretty miserable. Since I'm salaried I tend to work over my 40 hours and not get paid a cent extra, if I miss a day I don't get paid, and had vacation and sick days revoked with corona virus as the excuse. They also do not pay holidays. I have shitty medical insurance, drive 1.5 hours in the morning to get there and 2 hours home. And I only get a 30 minute break. The work load is very overbearing and stressful, and the work environment is terrible. I got offered another job. It's 20/hour. HOURLY. They offer 401K, medical and dental, overtime and give a 1 hour lunch break. It is exponentially closer to where I live (it would only take 20-30 minutes to get there with traffic) and the work load would also be much much lighter. My fear of taking the job is the difference in pay. My bills right now are roughly $2000 a month with est. rent, gas, groceries, some loans COVID forced upon me, etc. Would you take the leap? I welcome all advice. [link] [comments]  |
| Posted: 22 Sep 2020 08:53 AM PDT Ok so I am kind of in a sticky situation and the timing could not be worse. My company in IL allowed me to continue working for them remotely while I moved to Utah around late June. This lasted until early September when I was then terminated. My Illinois license is recently expired and I am expecting my Utah license in the mail very soon; however, when I tried applying for unemployment for Utah, I was told I was ineligible because my company is IL based. If I am no longer technically a resident of Illinois, can I still be eligible for unemployment since my company is IL based and I am now a Utah resident? [link] [comments]  |
| Need advice for my wife who co-signed on a car loan Posted: 22 Sep 2020 07:45 AM PDT I will try to make this as short and informative as possible. A while ago my now Wife, cosigned on a boyfriends auto loan (now her ex). So they are both on the title of the vehicle. After they split up he has moved several times, stopped making payments, deferring payments, has gotten camera tickets (that are mailed to my wife), has no valid drivers license, is not an insured driver (my wife has been paying the insurance in her name because she doesn't know what else to do). She does not know the location of the car. The latest is that he says that the car is in impound and "good luck with it" but will not disclose the location or any other information. What are any options that my Wife may have to get her name off of this loan. Anyway at all, she can default on the loan if they are both on the loan and title? She is willing to take the credit hit but he will not willingly give up the car and we don't know if it is really in an impound or where it actually is located. Is there anything that can be done? Can she report the car stolen or would that be a false police report (technically it is and technically it isn't at the same time).... Please, ANYONE can you give us advice?! [link] [comments]  |
| Long-term vs short-term student loan (refinancing) Posted: 22 Sep 2020 04:57 PM PDT Before you read this, here's some background information:
I'm trying to weigh my options when it comes to refinancing my private students loans. In general, I would like to get people's opinion on selecting a long-term loan (say 10-20 years) vs a short-term loan (5 years). Of course, the benefit to short-term loans is lower interest and less interest paid, thus saving money in the long-term. If I were to re-finance with a long-term loan, however, I would still overpay as much as I can and target to pay them off within five years or so. With the higher interest rate I would still be paying more interest, but the difference in total paid wouldn't be nearly as much if paid in a shorter time period. For example, based on the quoted rates from Citizens Bank: If I paid a 5yr loan in 5 years with an interest rate of 3.49% I would spend a total of $121,127, but my minimum monthly payment would be $2019. If I paid a 20yr loan in 5 years with an interest rate of 4.47 I would spend a total of $124,072, but my minimum monthly payment would be $700.38. After playing around with my future budget in YNAB, I have confidence I have the financial discipline to still make at least $2000 payments every month, but having the the lower minimum gives me a lot more room to move around my budget in the case of an emergency (yes, I do also have savings). I also have the option of investing the difference, so I could put say $500 a month into a three-fund portfolio (I'm thinking either a non-IRA or an HSA), pay the loan off in 7 years (~$1500/mo) and I should be able to make the difference back with my investments. So, what do you think my best option going forward is? Is planning to overpay a 20 year loan a good idea for the sake of lower minimum monthly payments? [link] [comments]  |
| Posted: 22 Sep 2020 04:22 PM PDT Howdy, I'm looking to refinance and take advantage of the low rates. I've owned the home for exactly two years but I can apparently drop my rate by 1.75 points. Please let me know if I can give you more info! [link] [comments]  |
| What does it mean to list my estate as a life insurance beneficiary Posted: 22 Sep 2020 02:03 PM PDT My job requires that I sign up for their life insurance policy for liability reasons and I'm not sure who I should list as my beneficiary. I'm 24 years old and i have no kids or anything. My closest relatives are probably my parents. One of the options it gives me is to have "my estate" be the beneficiary and I'm trying to figure out what exactly that means and if it's better or worse than just listing my parents. [link] [comments]  |
| Looking for advice on what to do with my money Posted: 22 Sep 2020 02:47 PM PDT Hi all, looking for some suggestions here. I've read through some of the subreddit articles already but still not really sure what the best decisions for my situation are. I'm 25, no debt, making about 90k a year and currently have 86k saved in a high interest savings account. I also have been contributing to my 401k and maxing out a Roth IRA. Mentally I've allocated about 30k of that savings account to an emergency fund but the remaining 50k+ I'm not sure what to do with. I've thought a bit about saving for a house down payment but I don't really have any concrete plans for that. Overall the pandemic has kind of put my life on hold and I'm not spending like I ideally would on travel or stuff like that. Realistically I know I don't need that much in liquid savings, but I do admit seeing that number grow gave me a lot of satisfaction when I was first becoming independent. But now I'm thinking that I could be a lot smarter about it and set myself up to be comfortable in future. I'm pretty naive about investing beyond 401k and Roth IRA. What would you do if you were in my position? [link] [comments]  |
| Where to find how much property tax will drop? Posted: 22 Sep 2020 05:27 PM PDT When I bought my house a year ago, I was told the house was built in 2000 and the owners at the time decided to roll the cost of the sewer tap into a 20yr payment on the property taxes. That is supposed to expire this year. Where can I find the amount that it will drop? I want to roll that amount directly into the mortgage payment as an extra monthly principle payment on top of the $250 I'm already doing. This will help reduce my mortgage much quicker. [link] [comments]  |
| Should My Twin and I buy a house now or next year?! Posted: 22 Sep 2020 07:34 PM PDT We are twins (M) and both 30 years old. Don't ask whose older. :-) He makes 120k and I make 50k but work in the union and will make 100k in five years. He is an attorney and will make more too as time passes. I was super excited when he told me he wanted to buy a house. However, he now thinks it is best to wait until we have more savings. I have 10k saved up and he has 20k. We live in San Diego and the average cost of a house, in the area where want to live in, is 630k. But when we were actively searching he was looking at houses in the 850k range (I think this was too high but we can get something we both agree on in the 775k range). Is it better to wait until we have more savings? Or should we buy now? He spends $1,500 a month on rent and I spend $900. What about getting the first time homeowners loan and only putting 3.5% down? We both love reddit so I am definitely going to show him this post. Thanks for reading! [link] [comments]  |
| Bank that Offers Free ACH to External Account? Posted: 22 Sep 2020 11:50 AM PDT I am looking for a Bank that will allow free ACH transfers to external third party accounts. I have requirements for ~$6K transfers roughly once or twice a month, that I have the option to pay a wire fee (I am currently paying $20 per wire from Ally) or transfer via ACH. Ally and Schwab (the two banks I currently use) only allow ACH to your own accounts, not externally. I'm seeing mixed messaging on whether Zelle can be used, but Ally has a low limit for Zelle so likely would not work for me regardless. Are there any US banks that allow free external ACH transfers? [link] [comments]  |
| Tempted to Accept Pre-approved Chase Sapphire Preferred Card - Change My Mind! Posted: 22 Sep 2020 07:10 PM PDT First, a shoutout and thanks to the r/personalfinance community - I have been using a lot of the advice and general supportive discourse in this subreddit to vastly improve my financial well-being over the past year. I consolidated a lot of outstanding debt with a credit union loan, and then let my credit rating rise enough to be able to refinance with a Marcus loan. I've paid a third of the total in one year, and have not incurred a single interest charge since consolidation. Now I have a sterling credit rating and a preapproved invite from Chase (I've had a Freedom/Freedom Unlimited card for a long time) for both the CSP and CSR cards. Understand, I *want* at least one of these cards. Like, a lot. But my paid-for Civic is starting to show its age, and I will be in the market for a new-to-me car loan soon. And someday even maybe get a mortgage. So I feel like I ought not to be opening more lines of credit at the moment. My two loans (really the same loan) already show up as two hard pulls on my credit reports. How bad is it really, if I add a third? And then maybe it feels a little frivolous. TL; DR: I'm tempted to accept Chase's invite for a pre-approved CSP and/or CSR. Change my mind! [link] [comments]  |
| Posted: 22 Sep 2020 03:02 PM PDT I am from Texas. I got evicted from an apartment a few years ago and never took care of the charges because I didn't have the money. Now that I might have some money to put towards that, I am wondering how to go about it. I checked my credit score on credit karma and it's "fair". But it says that I have an open balance of $2,590 from my apartments. Does the debt on collection stay there until you pay it off? How much will it affect me when I am trying to rent a new apartment if I start paying it off or if I don't? Should I pay it all at once or pay it little by little? Who do I call to pay it and can I compromise with them to pay less? Please help! [link] [comments]  |
| Saving, best percentage of income I should save each paycheck Posted: 22 Sep 2020 06:33 PM PDT What's the best percentage of my income to save? I make about 2000 a month, more or less [link] [comments]  |
| Posted: 22 Sep 2020 06:26 PM PDT My wife's SUV (VW Atlas) was totaled in an accident. We are now car shopping in this terrible market (no inventory due to COVID). Our family is growing, so within 3-5 years we were planning to get a larger SUV. Question is, all things being equal (down payment, interest, etc) is it better to get another "smaller" SUV for around $40k-$45k for 3-5 years, then upgrade to a larger SUV which would be about $50k-$55k or vice versa? Essentially, bite the bullet now and pay for the bigger vehicle (which we'd keep for the long term) or pay less now, keep the lower note (by about $150/mo) then trade up when we need the space? Be gentle. [link] [comments]  |
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