Personal Finance Suggestions for a late bloomer that's a work in progress |
- Suggestions for a late bloomer that's a work in progress
- Would you take a 40% pay cut for better work life balance? Advice for a 24 year old...
- Closed on a house, but sellers still live in it--what to do about utilities?
- [Taxes] I live in Colorado and bought a small townhouse a few months ago. CO just voted to repeal it's "gallagher amendment". What does that mean for me?
- 25k credit card debt. And can’t afford the minimum payment.
- Should I Buy a House in this Market considering my current situation?
- Applying for Social Security Retirement for my dad, and they want tax returns going back to 1980?!
- Abysmal Portfolio Return
- Help me choose a benefit plan
- To rent or to buy
- Apartment lists cold water as included with utilities. What does that mean for hot water?
- Personal Finance after Addiction Recovery
- Calculating Inherited IRA Withdrawal Amounts (over 10 years)
- Getting a small loan to help me out while in college
- PayPal Business Debit Mastercard - what's the catch?
- IRS notified me that I'm being audited because my ex-wife received APTC (healthcare.gov tax credit) for my son. Need advice.
- Am I paying my cc off correctly using auto-pay each month?
- How should I handle new student loans?
- I got debt collection letter from wakefield for medical bill last years
- Tax event of converting traditional IRA to Roth IRA
- Can someone help me with this math 15 vs 30 year mortgage vs investing
- Can you voluntarily report information to a credit bureau?
- 19 unique situation
| Suggestions for a late bloomer that's a work in progress Posted: 04 Nov 2020 10:14 AM PST So I'm 40yrs old and I have basically nothing for retirement. I'm a late bloomer financially speaking since the whole personal finance thing didn't hit me until last summer. Then corona came along. Lucky I didn't hit me to bad and only went about 5 weeks not working and I had enough money to get by but now I'm starting over with the worry of going back to not working. My income is 19.50/hr and a normal work week is 58.5hrs. And I have a separate account for 30 a day for per diem. When I do my budget I work with 600 a week. I low ball my income on my budget to keep myself in check (still learning financial responsibility and spontaneous spending). I'm working on my credit and paying down debt. At the same time as saving for emergency fund. My question is is there a faster way to save? My first idea is to get a CD and put money in savings at the same time. After a year use the money from CD and move to an investment account and hopefully start having my work generate a little more income to work with. Are my thoughts on the right path or am I just gonna spent all this time and not have it pan out when there are better options? And I know this takes patients and is a big part of it but I also want my money to work for me and actually feel I'm financially improving. Any advice is much appreciated. [link] [comments]  |
| Would you take a 40% pay cut for better work life balance? Advice for a 24 year old... Posted: 04 Nov 2020 03:10 PM PST Hello personal finance, I'm a 24 year old that has recently gotten into the field of medical sales. I'm bringing in about $200,000 per year (commission and base) at my currently company but the hours have been brutal and I'm quickly burning out - I'm talking 55/65 hour work weeks. It has gotten to the point where I'm getting panic attacks on a weekly basis. I have been doing my research and several smaller companies in the area have openings for similar jobs paying around the $120k range (commission and base). I have had a 2 interviews with two companies, each one with zero OT required and closer to home by about 10 minutes. With being so young, do you recommend taking the pay cut and going with a company where I would be working less and has a much more relaxed atmosphere? Monthly expenses - $1400 rent - $100 utilities / subscriptions - $800 car - $1000 food and entertainment - $100 student loan repayment I will also be maxing out my 401k contribution and Roth IRA in either scenarios. Thank you for the help! [link] [comments]  |
| Closed on a house, but sellers still live in it--what to do about utilities? Posted: 04 Nov 2020 06:55 AM PST Hey, so I closed on my first house on the 28th that my girlfriend & I bought from her brother and his wife. The plan was their house's closing was going to be shortly after ours, but it has been one hurdle after another...I don't mind letting them live in the house as long as they need, because my girlfriend and I have a place to stay. But is there anything I should be doing now that the property is officially ours? A friend of mine mentioned that since we got our mortgage under the idea that it was to be our primary residence, that we have to actually be living in it within 30 days. I haven't found anything to back that up, but a more immediate concern would be what to do about the utilities. Do we go ahead and switch those over to our names, even though we're not sure when exactly we're moving in? It's an unusual situation, but I just want to make sure letting them stay there isn't going to cause issues for anyone involved. Thanks in advance! EDIT: I live in West Virginia [link] [comments]  |
| Posted: 04 Nov 2020 08:10 PM PST I realize that it means I won't be getting the large expected cut in property taxes, and will instead probably get a raise in my taxes, but how much? The house is only worth about 200k [link] [comments]  |
| 25k credit card debt. And can’t afford the minimum payment. Posted: 04 Nov 2020 02:08 PM PST Hi everyone! As the title states my wife and I are in over our heads. Credit cards have been maxed due to Covid issues, my unemployment for a month, car repairs and frivolous spending to be honest. Now that our cards are maxed we have no credit to try a balance transfer card to pay it down quicker. So we then tried a personal loan to consolidate the debt into one payment with one interest rate and that was a no go as well . My credit is straight awful. A repo and a couple cards that were closed with a balance owed. I've paid these off since but the effects are still lingering. So now were thinking about asking my wife's mom to either co-sign on a loan or asking her to open a credit card up with us to get a better interest rate. Together we make about 80k. Every month our chase accounts go negative. And it's getting to the point to where it's unbearable. And has seriously fucked my state of mind. Growing up in a non stable home has given me super bad anxiety about money. I've done plenty of research on how to pay it off quicker (debt snowball technique) etc. idk what to do anymore. I wanted to give up on it and just stop paying it and have some peace of mind for a couple of months and then try to settle it. But I think I'm gonna need a new car sooner and my wife wants to buy home. Obviously not now but sometime soon. I guess this was more of a rant then a question. I just feel lost and any help you guys could give me couldn't hurt at this point. [link] [comments]  |
| Should I Buy a House in this Market considering my current situation? Posted: 04 Nov 2020 03:34 PM PST Hey all, Some background on me. I live in the midwest with a stable tech job making ~95k/year, and am 26y/o. I have 120k in retirement accounts, 65k in post-tax brokerage accounts, and 35k liquid. No debt. Currently in a situation where my lease ends in March, and my current roommates will be buying a house. I have gotten used to the standard of living of splitting a house with roommates, and am not really looking forward to reverting back to renting an apartment. My girlfriend currently lives with me, and she would likely move in with me wherever I end up going and would pay rent. Our current share of the rent is 1150. Regardless, I want to make plans as if I were paying for the whole thing as a form of CYA. My original plan was to buy a multifamily unit and live in one of the units and rent the rest. However, in a sellers market, there has been basically no supply in my area. On top of that, for a conventional loan, I would need 25% down to make that work, and clearly I have money tied up at the moment. So I started looking into just buying single family, and was approved @2.75% for a $380k home with 10% down. However, with the amount that I contribute to my retirement accounts and monthly budget, that would leave me with barely any cashflow at the end of the month, let alone my entire cash funds being used up. Clearly this is the absolute top of my budget. Looking at the market for the last couple months has been rough. Barely anything good out there in a reasonable range, alongside an impending housing crash which has me scratching my head due to the demand out there. On the other hand, I can't find a decent apartment for under 1500, so my cost of living will go up at the same time as my standard of living going down. With my current mortgage approvals, I could put 20% down on a 300k house and my monthly payment would be around 1650. For reference, the 10% down on 380k house came out to 2100 with PMI. It's clear that my 35k liquid funds also will not cover this. Looking into having my dad gift me some money for this - the yearly non-taxable limit seems to be 15k. So if he gifts me 15k before year's end, and 15k after newyears, I would be approaching 65k, which would get me close to that 20% down on a 300k house. Even without abusing the taxable gift limit, I could sell some extra stock. I feel like I could make 20% down on a 300-350k house work, by selling some post-tax stock to close the gap. The payment being in the 1650-1850 range would still net me $500/mo cashflow, even after budgeting for my usual retirement account contributions. Is this a dumb idea given the current economic climate? My job is tied to the government, with contracts flowing into the next decade, so I feel pretty safe there. Selling stock to buy into a housing bubble seems like a stupid idea to me. If I wait another year, I could buckle down and save another 10-20k, and more safely reach that 20% threshold. Not only that, but if housing prices go down due to the collapse, I will get more house for my money, and will have more options to choose from. Am I being too chicken to pull the trigger? Or should I play it safe and rent for another year? Thanks in advance! Edit: Budget since someone asked: Current Budget: Monthly income after retirement, benefits, etc - 3760 Costs: - Rent (my share) - 700 - IRA (max allowed) - 500 - Bills (no debt) - 300 - Transportation - 50 - Food - 250 - Discretionary - 250 Net Cashflow (savings) - ~1700 After buying a house (lets say $2k/mo to be aggressive): Monthly income after retirement, benefits, etc - 3760 - Mortgage - 2000 - IRA (max allowed) - 500 - Bills (no debt) - 300 - Transportation - 50 - Food - 250 - Discretionary - 250 Net Cashflow (savings) - ~4-500 Please note in the above scenario I am not considering the rent income from my girlfriend which would probably be in the ~600 range. So my actual cashflow would be closer to $1k. [link] [comments]  |
| Applying for Social Security Retirement for my dad, and they want tax returns going back to 1980?! Posted: 04 Nov 2020 07:54 AM PST A little backstory on what has happened so far: My father is reaching social security retirement age in December and asked me to start the application process for him. Initially we tried filing it on the website as him, but couldn't get through the credit verification questions. He left the states back in 2006 or so and has worked in SE Asia during that time, paying taxes here in the US as well as he was filing as self-employed. His credit went to garbage in 2008 and he hasn't had much credit activity since. The questions were all asking about credit things in recent years but I answered Not Applicable to them all because well, they were. After some denial we pulled his credit report and it looks like the birthday is showing the wrong year on his report, maybe that's why we got denied? Anyways, I applied again under the option that a third party (me) was filing for him and he would need to sign the documents after. Everything went through fine online and then we got a call from the local SS office. This is where things are getting weird and I'm not sure what is going on
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| Posted: 04 Nov 2020 06:30 PM PST Hi, I have a brokerage account at Vanguard where I am invested in the traditional Boglehead "3 fund approach", in addition to the other half of the portfolio being diversified with Dimensional funds. Since 2016, I've averaged a measly 4.6% return on my portfolio. I realize this is about the long haul, etc etc, (plus the crazy state of world affairs) but how bad am I off compared to the averages? UPDATE: a tremendous thank you to everyone for the guidance and candid advice. This is a great Community and I'm grateful for the counsel. [link] [comments]  |
| Posted: 04 Nov 2020 10:20 AM PST Hi I am in my mid 20s, and still healthy. These are the plans that I have and the highlighted ones are the one I am leaning towards. What would you guys pick? If you have any other suggestions, please let me know. For dental plan, I just highlighted the one that has the most company cost, I am not sure if that is the indication that I should use. Any input would be greatly appreciated. Thanks. [link] [comments]  |
| Posted: 04 Nov 2020 01:31 PM PST Im in an awkward stage of my life. I feel it is fine to live my parents because of my culture from my parents. However the country I am in is more independent (usa). [link] [comments]  |
| Apartment lists cold water as included with utilities. What does that mean for hot water? Posted: 04 Nov 2020 06:56 PM PST I've been looking at an apartment and the listing on the agency's website lists cold water, sewer, trash as included in the rent. Does that mean my hot water is a seperate bill? I pay electric which is an electric heat pump. Is the hot water included with the electric bill somehow? If I go on Zillow though, it says the owner pays water, sewer, trash. It doesn't specify cold water in this description. Is there a typo on one of these descriptions, or just a difference in phrasing that it doesn't matter? I'm really confused here because otherwise, this is a great place. [link] [comments]  |
| Personal Finance after Addiction Recovery Posted: 04 Nov 2020 03:29 PM PST Hi everyone. I read a thread earlier here about someone who is a "late bloomer" to personal finance and I found it helpful advice without shaming OP for it. I have realized that I have been scared of posting for help on here because of fear of shame over my own financial situation. But I really need help and I do not know where to start. I am going through grad school and I have taken on student loans as such. Unfortunately, I experienced the loss of a close family member and I relapsed about a year ago. I am not proud of it at all and I have completely wiped out my savings in both fueling my addiction and then paying for rehab and therapy. I am about to get my last sum of money from loans in Jan and I'm totally terrified of being unable to sustain myself post graduation. I have about 1 month and a half of recovery under my belt. I am in my twenties so I unfortunately do not have many assets and currently no income as a student. I just have that lump sum coming in at the beginning of Jan and that's it. On top of this, my grades have suffered so I really doubt how impressive of a candidate I will be to get a job in this post-Covid economy. It just feels like the cards are stacked against me and I have fucked up everything for myself. I appreciate any help in how to budget for my circumstance. TDLR: I am a recovering addict going through grad school who doesn't know where to start for personal finance. Edit: added more details. [link] [comments]  |
| Calculating Inherited IRA Withdrawal Amounts (over 10 years) Posted: 04 Nov 2020 06:28 PM PST My wife received an inherited IRA from her father, and it's beholden to the Secure Act's 10-year rule for non-spouses. I've run a bunch of simulations regarding how much to take out and when, but wanted this sub's advice. Our MAGI is around 130-140k, so a good 60k off of the Roth contribution limits. In my numbers, I assumed a 6% growth rate of the funds before they're withdrawn. Starting at year zero (this year) and going to year 10 (2030, as he passed in 2020), I'm trying to decide what percentage of the total fund to withdraw. Initially, I had calculated some fixed % of the initial amount to withdraw every year, so that by year 10 that is how much is left to withdraw, and it comes out to ~ 10%. However, I also tried a variable calculation, where I withdraw X%, where X =1/(years remaining), so ~9% in year zero (11 years remaining, 10% in year one (10 years remaining), etc. Both methods keep me situated in the same tax bracket, so I'm able to estimate the additional tax on each withdrawal as well. Obviously not withdrawing money in year zero is slightly better long term, but my math shows not by much (less than 10k over 10 years). So is this variable method the correct way to calculate my withdrawals? Or is there some better way to calculate the way to pay the least tax? Thanks! [link] [comments]  |
| Getting a small loan to help me out while in college Posted: 04 Nov 2020 10:12 AM PST I am in school to become an aircraft mechanic, I have 10 months left and just got kicked out of my parents. I have 4k in cash, a car, and no job. Every job that I have looked at so far wants to pay me 9-10 dollars an hour, school is very rigorous and I cant commit to full time employment or I might risk falling behind in school, I have an offer to live with my brother for 500 dollars a month, and I have an additional 500 dollars in expenses. I have almost no credit but have paid off a lot of my student loans. I feel that my only option is to find someway to get a loan for 2000- 4000 dollars to be able to stay on track with school, does anyone have any ideas? [link] [comments]  |
| PayPal Business Debit Mastercard - what's the catch? Posted: 04 Nov 2020 07:42 PM PST https://www.paypal.com/merchantapps/appcenter/makepayments/bdmc Apparently I have this on my PayPal account but never activated it. It is a debit card, (Mastercard) NOT a credit card. The only fees are for making cash withdrawals through an ATM or bank teller, or making a purchase from a merchant outside the US. It would be accepted anywhere Mastercard is. Obviously this would be of limited use unless you regularly received money to your PayPal account from e.g. selling items on eBay, BUT: You can link a bank account to the card so that it pulls funds from there if your PayPal balance is insufficient to cover the amount of a purchase. And most importantly:
So apparently I can just use this instead of my bank debit card and get a free 1% cashback on my purchases? I read over the cardholder agreement and didn't see anything concerning; there is a standard daily purchase limit of $3000 but I wouldn't come close to that anyway. Here is the agreement, am I missing anything? https://www.paypal.com/us/webapps/mpp/ua/debitcard-full It sounds too good to be true, but if not, it's basically free money compared to using my bank debit card (I'm currently in credit card debt so I don't use credit cards for purchases). So is there something hidden in the fine print that would make it a bad idea to use the PayPal debit card for purchases within the US? [link] [comments]  |
| Posted: 04 Nov 2020 02:12 PM PST Hi r/personalfinance - tl:dr - I'm being audited by the IRS because my kids were insured by my ex-wife on healthcare.gov and they received the PTC through her. As per my divorce decree, my original 2019 return claimed my son, but after being notified that this was an issue, I filed an amended return that did not claim any dependents. I'm uncertain how to respond to the IRS request for form 8962... SHORT STORY LONG: I have two children ages 8 and 6 with my ex-wife. Per our divorce decree, I provide health insurance through my employer for both kids, and did so for the full 2019 calendar year. My ex also purchased coverage for the kids using healthcare.gov. I was not aware that she was receiving the Premium Tax Credit (APTC/PTC) for this coverage. Our decree says I get to claim my son as a dependent on my taxes, so I did so when filing my 2019 return in late January. I received notification some weeks later that the IRS required additional information to process my return. This is when I learned that the kids had received PTC through my wife. Reviewing the potential impact on my return and on the advice of the mostly helpful folks at TaxSlayer.com, I elected to file an amended return that removed the dependent claim for my son. I thought that would be the end of it. Then yesterday I received another letter from the IRS notifying me that I'm being audited because I or "someone I claimed a personal exemption was enrolled in health care coverage through the ACA marketplace" and that advance payments of the premium tax credit were made. I attempted to call the IRS at the number on the letter, and the automated system informed me that they can't take my call. I called TaxSlayer back and they said to send them the letter and they'll "get back to me", but given how following their last advice has played out, I'm looking for some, lets say, additional guidance. Any of you kind redditors have a suggestion for how to fill out this damn form 8962 given that my tax family as per my amended return did not receive any PTC? Also - is there any problem with my ex receiving the PTC for my kids when I was providing them with 1E coverage through my employer? Thanks so very much in advance for any guidance you might have. [link] [comments]  |
| Am I paying my cc off correctly using auto-pay each month? Posted: 04 Nov 2020 05:47 PM PST Amazon Chase cc. I just have it set to auto-pay the full amount ("statement balance"). The only other option (aside from "fixed amount") is "minimum payment due". Any concerns? [link] [comments]  |
| How should I handle new student loans? Posted: 04 Nov 2020 10:28 AM PST I will be getting married soon, and my partner has a significant amount of student loan debt. We both recently started good jobs, and have the capacity to pay aggressively towards them, to the point where we could get them knocked out in a year or less. Is there any negative towards paying off student loans quickly? Does it have any negative credit effects? Thanks for your input, having a big debt is pretty new to me! [link] [comments]  |
| I got debt collection letter from wakefield for medical bill last years Posted: 04 Nov 2020 06:43 PM PST I got debt collection letter today from wakefield for medical bill last years. The principle balace is 1,428.00 they also charged accrued interest of 85.87 and the interest rate is 5%. What happen if i dont pay them? Can they sue me if I have asset? and if they sue what is the amount I have to pay? What should I do? I do not really care about my credit score. [link] [comments]  |
| Tax event of converting traditional IRA to Roth IRA Posted: 04 Nov 2020 10:02 AM PST Hey guys. 2019 was the 1st year I began to contribute to a traditional IRA. It just so happened to be the 1st year that my AGI was over $75k. So upon realizing that there was no tax advantage to my traditional IRA (I deposited after-tax money), I want to convert that into a Roth IRA because I'm still within the income parameters. If I make the conversion, will I get hit with a tax bill on the withdrawal even though I never got the tax deduction in the 1st place?? [link] [comments]  |
| Can someone help me with this math 15 vs 30 year mortgage vs investing Posted: 04 Nov 2020 03:25 PM PST Some people will say mortgage as much as possible and invest the rest. BUT most do not actually have the purchase amount upfront. So for this example I would like to start at zero. I understand having 300k investments and getting a mortgage for 300k. But this example would be two people starting with zero Person 1. 15 year 300k mortgage 3.2% interest $2100 month Person 2. 30 year 300k mortgage 3.80% interest $1,397 month invests the difference of $703 month $254k After year 15 person one invests the entire amount of the paid off mortgage of $2100 a month for 15 years. $378k Person one paid $78k in interest Person two paid $203k in interest Person one had the investment compounding for 15 years Person two had the investment compounding for 30 years Who is ahead? [link] [comments]  |
| Can you voluntarily report information to a credit bureau? Posted: 04 Nov 2020 08:12 PM PST Two of my reports don't reflect a credit card (bank) and/or a personal loan, both of which are in excellent standing, and so the reports state there is 1. No recent activity on credit cards and 2. No recent activity in revolving accounts. I've had the card for almost three years, and the loan for two. One report also says the age of my newest (only) credit card is too recent (again, almost three years). [link] [comments]  |
| Posted: 04 Nov 2020 09:26 AM PST Hello all I am 19 and in the military with about 20k in savings. I plan to be in the military for at least the next 10 or so years which means housing food healthcare is all covered for the foreseeable future. I am about to get a 36k loan with extremely low interest ( less than a percent for 7 years). With my circumstances I can invest very aggressively (with what I understand). Where should I focus my investing/saving to take advantage? [link] [comments]  |
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