Personal Finance Why is it a good thing to pay off a mortgage fast... but not good to pay cash for a house? |
- Why is it a good thing to pay off a mortgage fast... but not good to pay cash for a house?
- Is it bad to rent forever rather than buy a home?
- I have received about 20 loan request emails in the past hour. I froze my equifax credit report months ago. Should I be concerned?
- Scam Warning - Call from legitimate number
- If you’ve received a temporary pay cut at work, when and how is it appropriate to ask for your salary to be reinstated?
- Quit or get fired
- I am 27 years old and have no debt, but I am overwhelmed by trying to find the perfect balance between cash on-hand and cash invested
- Check your credit card rewards points for fraud
- Buying a home without SO in the mortgage
- 22yo, $6k/month, not sure what to do
- I was told not to pay the full statement balance on my credit card.
- Everything my family owns was stolen yesterday. How do we protect ourselves?
- Roth 401(k) allows me to save more than the regular 401(k)?
- Should i be sitting on $30k?
- Severance Package Help
- I'm spending 70% of my weekly income on rent
- Pregnancy spans over two health plan years. HSA Maxed now, should I move to higher premium lower deductible for 2021 to cover delivery?
- Should I refinance after only two years into 30 year mortgage?
- Should I lease or purchase my water heater?
- Should I take a student loan rather than put it on my credit card?
- My mom was the victim of a giftcard scam. We need help.
- Total Financial Ruin
| Why is it a good thing to pay off a mortgage fast... but not good to pay cash for a house? Posted: 02 Sep 2020 09:07 AM PDT My husband and I are saving a ton of money right now so that in 4-5 years we can pay cash for a house. He is very risk averse... me less so but still fairly risk averse. It sounds really nice to have a fully paid off house, to only have to worry about taxes, upkeep and utilities. I have seen a lot of people online saying that it is a really bad idea to pay cash for a house, that it is better to get a mortgage and invest your money in something else. BUT... I also see people really excited that they got their house fully paid off. Or people celebrating that they can pay extra payments towards the mortgage. It just seems like these two things are contradictory. Everyone seems to want a paid off house, but people say I shouldn't just pay for it all at once. Please explain or discuss. [link] [comments]  | ||||||||||||||||||||||||
| Is it bad to rent forever rather than buy a home? Posted: 02 Sep 2020 12:40 PM PDT I've heard for the longest time that renting is equivalent to "throwing away money," but my friend recently sent me this article that seems to argue that renting is actually the same as buying a home, and that neither is throwing away money. But how can that be when paying down your mortgage results in you owning a home in the long run whereas renting forever doesn't? What am I missing? [link] [comments]  | ||||||||||||||||||||||||
| Posted: 02 Sep 2020 10:52 AM PDT Like the title says. The emails are from different cash advance and loan companies. Any insight is appreciated... [link] [comments]  | ||||||||||||||||||||||||
| Scam Warning - Call from legitimate number Posted: 01 Sep 2020 02:46 PM PDT I got a call on my cell phone today from my parents' house; at least that's how it appeared on my phone. The first 15 seconds or so sounded like a woman in distress, grappling for the phone and gasping for breath. Then a strange man's voice came on the line and insisted several times, "Katherine (mom's name) needs your help!" I asked what was going on and he told me to open Venmo on my phone and send him $500 and he'd leave her alone. I continued the conversation as if I was complying while shooting off texts to both of my parents. Thankfully they quickly called and confirmed they were out of town and that no one should be at their house. I'd hung up on the caller to answer the call from my dad, but he did call back from an unidentifiable number shortly after. He told me he believed I had involved the police and upped the ante. I asked him if he knew who I was (attempting to establish whether he knew the relationship I had to Katherine) and how he got my number. He bristled and did not answer. Once I finally said, "Katherine isn't at the house that you called from," he hung up and did not reengage. Thankfully, a neighbor checked out the house and confirmed no one was there as well. I knew my parents were out of town, knew that my mom does not go by her full name, and knew that a scenario in which she was being held hostage over $500 was highly unlikely. Nonetheless, in the moments after having heard what sounded like a woman in immediate distress, it was incredibly difficult not to think, "ok, but what if this is real?" I was impressed that the scammer was able to not only spoof my parent's house number but knew enough to call someone who would know my mother and be invested enough in her safety to pay the demand. I did some googling of our names and phone numbers later to try to establish how easily linked we are online and it was not immediately apparent. On one hand, and especially in hindsight, this was clearly a scam. On the other hand, it took some amount of sophistication and adrenaline is a hell of a drug. Beware. [link] [comments]  | ||||||||||||||||||||||||
| Posted: 02 Sep 2020 06:49 AM PDT Everyone at my boutique consulting firm received a "temporary" 15% pay cut a few months ago. Now, it seems like business is picking up and we're even starting to hire new people. I am working more than ever before (including all day weekdays, over weekends, late into the night) on my reduced salary and I'm starting to get frustrated. I don't mind working overtime, but I do mind being overworked for a reduced salary (especially if they can afford to hire on new people). How and when is it appropriate to ask for my salary to be reinstated? Obviously I can't see everything going on behind the scenes, and I don't want to overstep my ground especially with everything going on in the world — but I'm over this and ready to receive my full pay check. [link] [comments]  | ||||||||||||||||||||||||
| Posted: 02 Sep 2020 12:51 PM PDT I'm 63 and have worked in a government job that is well paid, but that has high stress and requires post graduate degree in a science. I am reviewed and rated by my supervisor twice a year, and I have never had a bad review for the quality or quantity of my work (I've had many supervisors over the years). In April I got a new boss, and she has begun reviewing all of my work. My previous bosses would review a small random fraction of my work, and never found significant errors. This new boss has found errors in every case I've worked on. Most seem legitimate , but some are subjective. If I continue to have errors called, and have poor production, I will go into a process that will end in firing, but it might take at least 6 months. This has caused me a lot of anxiety and has basically made me paralyzed in making decisions I need to make for my job. Therefore I'm not getting the amount of work done that I need to to keep the job. I had thought I would work indefinitely since I used to like my job. My question is should I hang on to the job through the long process of getting fired, or should I just resign to avoid the stress. I would plan to retire either way. Financially I'm ok either way for retirement, although of course I would end with more money the longer I hang on, and would get unemployment if fired. I'm even thinking that I might have a case for age discrimination but not sure since my production and quality of work are now being affected. Any advice? [link] [comments]  | ||||||||||||||||||||||||
| Posted: 02 Sep 2020 02:23 PM PDT Quick info dump on me:
I'm hesitant to tie up my cash into an index fund / investments, because ideally, we would like to buy a house within the next 3-5 years, and having that money available for a down-payment seems like the correct play. My overall questions are:
I've read a lot of the FAQ/wiki content, but the valuation of my ESOP and wanting to keep cash on-hand for a house is tripping up my decision making abilities a bit. Any advice is appreciated! [link] [comments]  | ||||||||||||||||||||||||
| Check your credit card rewards points for fraud Posted: 02 Sep 2020 06:20 PM PDT I have a fidelity rewards card and had some fraudulent transactions back in May. Thanks to Mint, I saw it immediately, reported it and the transactions were cancelled. Around the same time, a scammer redeemed my points for a number of $25 wayfair gift cards....despite using a unique, lengthy password. I didn't discover it until a few days ago. So consider checking your rewards points routinely as fraud wont show up on a financial aggregator. [link] [comments]  | ||||||||||||||||||||||||
| Buying a home without SO in the mortgage Posted: 02 Sep 2020 06:30 PM PDT I (26F) am planning on purchasing a home in the next few months. I have already figured out my budget on what I can afford on my own. My SO (25M) will be living with me in the new home but we are not married and the home will solely be under my name. My numbers are all based on me affording it on my own and whatever SO pays will basically be extra that I can put into my mortgage payments. Since SO will not be in the mortgage but will be paying to live there, what is the best way to deal with this situation? I am trying to cover my bases in case things don't work out. He's gonna be putting money in but in my mind it's kind of like he's paying rent to me instead of a stranger if we were to just rent a place together. I am taking full liability here by getting everything under my name so I don't know that it's fair to give him a piece of that either. Planning on talking to him about it of course but wanted advice as I think it's kind of an awkward conversation. [link] [comments]  | ||||||||||||||||||||||||
| 22yo, $6k/month, not sure what to do Posted: 02 Sep 2020 10:57 AM PDT I'll keep this post as concise as possible. Father died when I was young, mother passed away 3 years ago soon after I graduated high school. I was in college (1 year in) but when she passed, it sort of put all my plans on pause. Lived with other family for a bit and continued college, but eventually had to move out on my own. I lived with roommates for a bit, couch surfed, slept in my car, and scraped by to survive. Our family owned a couple of properties (houses and apartments). I inherited a share of the properties (trust) when I turned 21 (part owner so I get a share of the rental income). Trustee was not making enough distributions for my support (only minimal distributions here and there far below the poverty line for where I live) and breached fiduciary duty (not enough support, money being payed out to him/herself, unexplainable expenses on accounting, etc.) . I found out all of this after getting a lawyer and he reached an agreement with the trustee's lawyer; I will be receiving roughly $6k/month in distributions from rental income. I was on one path at first (college, bachelors degree, a fairly standard path), but since having to survive mostly on my own when I was 19, I learned a lot about the real world. I did an internship, worked numerous low-paying jobs, learned importance of budgeting, insurance, leasing an apartment; you know, how to adult type stuff. There are countless things that school doesn't prepare you for which I had to face. I feel like I learned more in the past 2/3 years than the previous 10 years. I have since been slowly been taking more college classes to get back into the swing of things. I'm unsure of what path to take right now. I'm just looking for some advice on how to navigate my situation with this new $6k/month income. If this is the wrong subreddit I would also appreciate a referral to the proper subreddit. Thank you for reading. [link] [comments]  | ||||||||||||||||||||||||
| I was told not to pay the full statement balance on my credit card. Posted: 02 Sep 2020 02:40 PM PDT I'm a military spouse and am in a Facebook group specifically for military spouses. There was a thread regarding credit cards and one woman in particular said to never pay off the full statement balance every month. I said "wouldn't you have to pay interest if you don't pay the full balance?" and she said "you want to pay some interest it's called revolving credit don't pay the full statement balance your undermining all your hard work". My question is what in the world is she talking about what? WHY would anyone want to pay interest. I've paid off my statement balances in full all 9 years of owning a credit card and my I have a 770 credit score. Would my credit score be higher if I didn't always pay it off in full? [link] [comments]  | ||||||||||||||||||||||||
| Everything my family owns was stolen yesterday. How do we protect ourselves? Posted: 02 Sep 2020 05:44 PM PDT On the last day of our move into a new state, thieves drove off with our 20-ft UHaul and everything we own. In the resultant chaos, I can't even remember which important documents were in the truck. There were definitely credit card agreements, extra checkbooks, legal records, tax returns, car titles... What should I do to lock down my identity and my accounts? I would be grateful for any suggestions; I'm overwhelmed with the entire complicated process and am losing track of what to do immediately. I'm afraid that something will fall through the cracks and I'll end up paying for it later. [link] [comments]  | ||||||||||||||||||||||||
| Roth 401(k) allows me to save more than the regular 401(k)? Posted: 02 Sep 2020 04:37 PM PDT Hi I just wanted to ask to have my logic checked out before I commit to my plan. My employer offers a Roth 401(k) in addition to the regular 401(k). Both the 401(k) and the Roth 401(k) share the same limit of $19,500 for people my age, so it seems like I can contribute the same amount to both. However since the Roth 401(k) is after-tax, I can effectively invest more in the Roth 401(k) than the regular 401(k). Let me give an example of what I mean when I say, "I can effective invest more in the Roth 401(k)" in case it isn't clear. Let's say my marginal income tax rate is 25%. I can put $19,500 pre-tax money into my 401(k) but I can put $26,000 pre-tax money into my Roth 401(k). This is because $26,000 * (1 - 25%) = $19,500. Is my thinking valid? If so then a huge advantage of the Roth 401k is that it lets me invest more now into a tax-advantaged account. To be honest, I still have a car loan and stuff so maybe I'll just invest less for now into the regular 401k, since my taxes will likely be much lower when I retire, but after I pay off my car loan the Roth 401k becomes much more attractive. [link] [comments]  | ||||||||||||||||||||||||
| Posted: 02 Sep 2020 07:44 PM PDT I have $30k sitting and feel like i shouldn't have that much doing nothing. I contribute to 401k at 9% pre match and have no IRA. My mortgage with HOA fees etc.. is 50% of my net income, that sounds high when i type it out. I feel i should cut 401k to 5% for match and put the rest in an IRA although my 401k is a Roth. [link] [comments]  | ||||||||||||||||||||||||
| Posted: 02 Sep 2020 07:26 PM PDT Hello, I dont know if this is the right sub but my position was terminated today and the severance package I got seemed pretty slim. The package consists of 1 month paid and 1 month of accrued vacation time. I know from talking to a previous employee that she got 3 months of full salary and she had been working at the company for significantly less time than I did. Is there any way that I can argue for a better severance package based on what the previous employee got? Is my package strange somehow? I am not very knowledgeable about this and have not had to deal with this before. Thanks for any suggestions. I am not going to be hurting for a while since I have some savings and such but it seems pretty unfair and I am pretty shocked at the moment. [link] [comments]  | ||||||||||||||||||||||||
| I'm spending 70% of my weekly income on rent Posted: 02 Sep 2020 04:46 PM PDT Say I get $350 a week my rent is $250 of that a week and I just live with my grandparents. I give them my rent in cash and they spend it on whatever. I have the smallest of the 3 rooms in the house and the spare room is much bigger than mine. Our Internet bill is relatively high because we have an expensive plan for no particular reason. I don't know about the power but it shouldn't be more than $70 extra a month for me. Right now however I'm really getting like $270 a week and they still expect this amount. If I move out it has to be within distance of work for I fear getting another job is to risky for me [link] [comments]  | ||||||||||||||||||||||||
| Posted: 02 Sep 2020 09:26 AM PDT Some background: Wife and I are in a HDHP currently. HSA is maxed for 2020 ($2,400 from Employer, rest from us). Pregnancy will span into 2021. At that time, would it be in my interest to grab the lowest deductible plan for the plan year of 2021? This would disqualify from the ability to continue to add to our HSA. We also get $2,400 from the employer no questions asked for being in a HDHP plan. Plan Options for Comparison Option 1: HDHP plan (Current) Option 2: Lower deductible (Non-HDHP) Option 3: Lowest deductible (non-HDHP) Will plan on FSAD once the baby arrives in 2021. Never been pregnant before, so we have a lot to learn. Thanks for reading this far and helping with any recommendations.
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| Should I refinance after only two years into 30 year mortgage? Posted: 02 Sep 2020 09:20 AM PDT I see that refinance rates are anywhere from 2.75-3.5 on a 30 year refinance. I currently owe $160k on my mortgage. I bought the condo for 175k and the current value is roughly 200k. My current rate is 4.75%. I will be living here for at least two more years with the intention of renting it out after moving. It seems like a no brainer to refinance but I am sure I'm not thinking of everything. Any guidance would be greatly appreciated. [link] [comments]  | ||||||||||||||||||||||||
| Should I lease or purchase my water heater? Posted: 02 Sep 2020 10:58 AM PDT I've lived in my house for 8 years. When I moved in, I took on the previous owner's lease plan for their water heater. It was rolled into my gas bill, so, out of site, out of mind. Last November, my water heater started failing, and because I was on a lease plan, replacement was quick and free. Last week, I received a letter from my gas company saying they are ending rolled-in leasing for the water heater. While I would be paying the same each month, its a separate bill to keep track of, for $29.22 per month. I got a payoff quote for $2137. So, my question is, should I purchase the water heater outright, or continue leasing indefinitely? Thanks ahead of time. == UPDATE == So I found out that if I were to buy a new water heater elsewhere and have this one taken away, it would cost $1050 since I have 26 months left on the contract. Cost of a new one + $1050 is pretty much no difference than buying it outright. Come 27 months, it would cost $150 as I'd be out of contract. Looks like I'll be setting up a reminder in my calendar to purchase a new water heater at that time. Now I get to kick myself for 2 years as I pay the lease each month. Thanks all for your feedback. [link] [comments]  | ||||||||||||||||||||||||
| Should I take a student loan rather than put it on my credit card? Posted: 02 Sep 2020 08:09 PM PDT I need a loan for $900 for my tuition this semester. I plan to pay it off by the end of the year. Would it hurt me in any way to take an unsubsidized student loan? I'd rather do that since the interest is much less than my credit card. Hopefully I am thinking straight here, but I wanted to make sure I'm not hurting my credit at all from this. Thank you [link] [comments]  | ||||||||||||||||||||||||
| My mom was the victim of a giftcard scam. We need help. Posted: 02 Sep 2020 05:29 AM PDT | ||||||||||||||||||||||||
| Posted: 02 Sep 2020 02:42 PM PDT My mess started last summer. I was working an insane rotating schedule that consisted of 60-80 hours a week, and had been for over four years. My ex and I (17 year marriage) had been growing apart, and the relationship was crumbling. I had a total mental health breakdown and quit my job. A few days later my wife and daughter left. The travelled across country to live with her parents, leaving me with all the bills, the cars, and all the debt, which is in my name. I fell behind during the two months I was unemployed. I found a job, but never could get caught up again. My accounts are delinquent at this point, and two emergencies over winter put me further behind on the mortgage. I figured on catching up when Spring brought overtime season. Covid left me without that capability as work slowed down. Between the interest rates and penalties I accrued I now feel my situation is unsalvageable. I am now trying to save to hire a bankruptcy lawyer. I have very limited funds because I have been trying for so long to pay everything. The only option see is to borrow the money from my 401k, which has only a few grand in it. Does anyone have any suggestions that might help me through this process? [link] [comments]  |
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