Personal Finance Traditional 401k vs Roth 401k |
- Traditional 401k vs Roth 401k
- 0% debt is a surprising psychological burden
- IRS took all my money because of stolen SS#
- Equifax ignored Identity Theft? Can they even do this?
- [Pennsylvania] Inherited $9,600 via check from a relative from Washington not taxed, around how much will I need to pay come tax return time?
- Can I afford to buy an apartment in NYC?
- Did my former employer commit wage theft?
- Buying a house with my family?
- Wallet stolen with ID, credit cards, and checks fom a break-in. Froze credit and deactivated/made new accounts but they've been able to write and cash checks via drive-thru banking?
- Help finding out if I have some old stock
- Mid to Late 30's couple, pay off student loans or buy a house?
- [New York] Why has my monthly interest become higher after I made multiple one-time principal only payment with Toyota?
- Has anyone had problems with appraisals?
- Debt Consolidation- Need advice
- Are there any type of accounts that I’m able to contribute money to but not be able to withdraw from for a certain amount of time?
- Car lease, buy, renew
- Leaving Bank of America for Ally, is there any advantage to leaving my account open?
- Pay off the credit card or keep the emergency funds?
- Received a custodial account worth around $20,000 from Edward Jones. If I ask them to liquidate it and transfer it to my bank while I decide what to do, will I be taxed significantly?
- Unemployed and In-Between State Moves - Which state health insurance can I sign up for?
- Traditional pretax 401k rollover to vanguard IRA. Couple questions.
- Low interest (2.5%) debt, interest only 2 years - invest or pay off or any other ideas?
- Student loan forbearance was extended til the end of January, 2021. Should I make a big payment on it, or put saved money towards Roth IRA
- Changing jobs in a week. Is it possible to max out my HSA and roll over my old 401(k) all before the year ends?
| Posted: 05 Dec 2020 06:20 AM PST Hi everyone, this is my first time posting to this sub Reddit. I'm currently 23 years old and I just crossed the three month mark at my employer so I can start making 401k contributions. I make $23.08 an hour or roughly $48k a year pre tax. My monthly take home pay is usually around $3100 (I get a bit of OT when meetings run long and I'm allowed to clock in 10 minutes early so I do) and I am currently putting $1k to savings ($600 towards a car and $400 towards building out an emergency fund), $500 to Roth IRA and $600 to private student loans per month. I currently live with my parents and I'm fine being here. I currently have my 401k contributions set to 15% Roth contributions. My question is should I be making these contributions traditionally, Roth style or a combination of the two in order to take advantage of pre tax money. My employer match is only 2%. Also, I have my investments set to 45% large cap over two funds, 20% small cap, 20% mid cap, 14% international and just 1% towards a high growth bond fund. I'm looking for extremely high returns for now since I'm young so I'm not concerned about risk. How does this sound? Edit: Thanks for all the responses and great advice! Y'all have been a bigger help than you could know! [link] [comments]  |
| 0% debt is a surprising psychological burden Posted: 05 Dec 2020 10:58 AM PST I have $5,000 of my 0% interest car loan left. I also have $5,000 sitting in a savings account earning 0.6% interest. The temptation to just pay it off is huge, even though it doesn't make sense financially. Debt is such a psychological burden. I decided to move the $5,000 to an index fund to earn more money than it would in savings. And it has! It makes me feel a little better. (Yes, the index fund could go down at any time. Yes, I have an emergency fund and save for retirement.) Edit: Today I learned people have VERY strong feelings about owing money. I did not expect this to have so many divisive opinions haha. [link] [comments]  |
| IRS took all my money because of stolen SS# Posted: 05 Dec 2020 01:15 PM PST On Mobile and Not sure if this is the right sub... TLDR: IRS took all my money from checking, joint, savings and money market. I have no liquid assets anymore. IRS says the owing party's SS# is the same as mine. Story: This all happened yesterday. It was pay day and I wanted to move money to our joint account and take cash out for gifts for my daughter for her birthday and Christmas. I noticed that my checking and joint were in the negative and my money market and savings were zero. I always leave at least $500 in my checking and $1000 in my joint in case I miss recording a purchase and any overdrafts would come out of my money market that had over $8,000, so I should never have a negative. I immediately called my bank and they told me it was an IRS withdrawal that is perfectly legal and I must owe back taxes. I always get money back at taxt time so I know that I don't owe any taxes. I then call the IRS. After what seems like holding for hours and then getting transferred around I speak with someone that can actually tell me something. They said there was nothing under my name but when they search my SS# a different name comes up, of which they wouldn't tell me, and that person has liens, the amount they also wouldn't tell me, and that the IRS used my, the same used by the tax ower, SS# to find associated bank accounts to levy and did so when they found mine. I explained the error and she said that under my name it did show that we owed nothing but since my SS# was used she couldn't do anything to reverse the levy. I'm going to speak with a tax attorney as soon as I can get with one on Monday but I have no clue what to do from here. I have no money for anything. My mortgage is due one the 15th, my daughter's preschool tuition is due 10th and of course her birthday and Christmas. I do have some gifts for her so thats fine. But I have no clue how long this will take. I am going to call HR and have them stop direct depositing my check for next pay period but I get paid once a month so thats not until January. I just wanted some advice on anything else I can do on my end. And I'm wondering how they got my number and what else it could be used for. I check my credit on credit Karma and haven't seen anything new or suspicious. So maybe it was just a transposition of numbers that just happened to be mine. If you made it this far thanks in advance. Edited to add paragraphs and make reading easier. [link] [comments]  |
| Equifax ignored Identity Theft? Can they even do this? Posted: 05 Dec 2020 05:23 PM PST Hello Everyone: My identity was stolen and someone opened an account which went to collections under my name. I filed the proper police and identity theft reports then forwarded them to the credit bureaus. Transunion and Experian immediately deleted the collection. Equifax refused to delete it. Isn't federal law in the FCRA to block it within five days of the identity theft report?! How can they refuse it? Thank you for the help. [link] [comments]  |
| Posted: 05 Dec 2020 06:37 AM PST If you need anymore info please let me know. I know the Inheritance tax in PA ranges from 4.5% to 15% but I just wanted to know if I was reading it wrong. [link] [comments]  |
| Can I afford to buy an apartment in NYC? Posted: 05 Dec 2020 07:33 PM PST Ive been looking at apartments and I've been wanting to buy a decent 1br. I make roughly 230k although it's a little more nuanced. Roughly 150k is straight salary. 60k is from monthly vesting stock grants. Roughly 20k is from a yearly guaranteed bonus. In terms of assets, I have about 200k in liquid assets as well as another 150k in assets for retirement that i dont want to touch. In terms of expenses i dont really have many. My cellphone + subscription services is about $150. I dont have a car and my health insurance is free from work. I also dont currently pay rent (back to living with my parents). I do go out with my gf and that ranges heavily depending on the month. Anywhere from $0 to $1500. My search criteria has been 1br apartments with >600sqft, hoa fees <$900 in the downtown Brooklyn area or nyc. If we count only my cash based salary, my take home (after all taxes and 401k deduction) is about $6500/mo. I found a decent apartment for about 650k and with the mortgage, hoa fees, property taxes, and insurance, the monthly payment is about $4000 If we only count my cash based salary, is $4000 manageable on my take home salary? I dont like counting the stock based income because technically it can be worth a lot less if the stock dips heavily although right now its worth more. I'm kind of worried about the potential HOA fee increases and property tax increases in the following years would push the apartment into an unaffordable range for me. [link] [comments]  |
| Did my former employer commit wage theft? Posted: 05 Dec 2020 07:21 PM PST For a year and a half, I was a barista at a coffee shop (non-chain, "ma and pop"). Because of my prior barista experience, the manager started me at $14.25 an hour instead of the minimum wage of $12. Three months into the job, there was a mass exodus of staff which created a challenging environment; the manager thought I handled it well and that I stepped up, so he decided to reward me and bump my pay to $15 an hour. A few months later, that manager left for a different job, and soon after that is when COVID struck. I was laid off for three months before returning at the request of the shop owner, let's call them "Andrew". When I came back to the job, Andrew did not send me any new contracts. He did not email me about a new wage, nor did I verbally agree to one. I simply came back to business as usual. However, when I looked at my check I realized I no longer received $15 per hour, I was back to $14.25. I thought it was a mistake and I didn't want to start a fuss over it. It was a difficult time to own a business. But what happened next made it clear it's not an accident. When I returned, I was one of three baristas and I was working 24 hours per week across 4 days. After a couple months, four new baristas were hired at $12/hour, and I was suddenly cut down to a single 4-hour shift per week (the minimum legally required). I suspected that I was being driven out to save money, but that he couldn't legally fire me. Clearly, he intended to fire me the moment I made any infraction. Just last week, my employment was terminated for "multiple correctives" after I got my first write-up for switching shifts without manager approval (I thought it was approved because I misread a notification in the app. Turns out the owner and manager never even saw the request to switch shifts — however, my replacement showed up for the shift and nobody noticed we switched until I confessed my mistake to avoid confusion). Obviously, this wouldn't even come out to a remotely significant amount of money, but it seems illegal to drop my hourly wage without even a verbal warning, let alone a contract with my signature. Am I correct that this situation is wage theft and should I pursue a claim through my state's labor board? [link] [comments]  |
| Buying a house with my family? Posted: 05 Dec 2020 03:49 PM PST Hi all. So my parents are getting older and about to retire. We are an Asian family so future plans always included keeping them out of nursing homes/assisted living facilities and that they live with family. Currently, I (27F) live with my two older siblings. I make the highest income (~68k) while my older sister makes (~45-50k) and older brother works a minimum wage job. None of us have any student loans thankfully or other debts to be paid. Since all of us "kids" are single and not in any sort of relationship, I doubt any of us are planning to marry soon and would just live together to save money. I am wanting to buy a house and am considering to do so with my sister and have my parents live with me as their caregiver. When I discuss this with her, she doesn't seem to really care and has stated willingness to contribute $$ (she's got a very indifferent personality about everything). I haven't spoken with my brother about this, but I am under the assumption that he would want to come and live with us, so I plan to have him pay rent rather be involved in the home ownership aspect (because he's quite frankly unreliable) My parents have offered to provide some sort of financial assistance so that we can afford a nice 4 bedroom home, but they've been sending me a lot of information lately about the types of homes they're interested in. Essentially, they're wanting to build a home and the designs they are wanting has a price point of ~$350k Thoughts on this whole situation and finance aspect?? The more information they send me and the more we discuss it, it starts to weigh down on me as a bad idea, but I'm hoping to make a smart compromise at the same time. I feel like culture plays a big part in this and is making my decisions a lot harder [link] [comments]  |
| Posted: 05 Dec 2020 02:30 PM PST They've managed to cash checks and money has been pulled out of one of the new accounts I've had created since I froze my other accounts - AND somehow they've managed to have money pulled from one of my business accounts as well (of which no information was included in what they stole) to cover a a 2500 check they wrote to themselves for "house renovations"... which makes no sense to me at all. All in all theyve already managed to have almost 7500 dollars cashed out in the past few days. How are funds being pulled from my newly created account and my business account when the bank was instantly notified and they dont have this information? Is my bank being incompetent / is there nothing else that could be done here to keep more checks from being cashed? Is there something I'm not thinking of? [link] [comments]  |
| Help finding out if I have some old stock Posted: 05 Dec 2020 05:49 PM PST I worked for a company around 13 years ago and had opted to have a part of my paycheck go into the company. I have no clue how stocks work so I'm not sure if I still have them. If anyone can point me in any direction to find out would be appreciated. [link] [comments]  |
| Mid to Late 30's couple, pay off student loans or buy a house? Posted: 05 Dec 2020 11:25 AM PST I am 34 yrs old, my husband is 39. We are late bloomers in life, and did not have stable, higher paying employment until our 30's. My husband is a permanent federal employee and makes $62k a year, he will make about 80k in the next 5-6 yrs. I work as a contractor, $51k a year with the contract ending in spring 2023. We rent a small apartment ($950 a month, 800 sqft) so we can save money. We have always lived in apartments. In 6 months we have saved $15,000. Our goal is to save $30k for a down payment. We would like to adopt a foster child eventually instead of having biological children. My preference is to adopt once we own a home, this way the child won't have to change school districts. My student loans are the only debt we have-cars are paid off and no credit card debt. My student loans total about $48,000. I have 4 loans, two are federal loans and two are private loans. The private loans are $12000 and $13000, while the federal loans are $6500 and $16000. The interest rates for all 4 are between 3-4%. We are considering the following options: Option one: Pay off student loans first then save for a down payment for a home. Our dream home (3 bedroom, 2 bath, 2 car garage rancher) would cost $260-300k in our area. The other option for a home would be 180k-200k if we get a one car garage single family home or a townhouse/condo instead. The problem with this option is that I may be unemployed by the time we are ready to buy if we pay my student loans first. It would also mean putting off adopting a child for a longer period of time, or adopting while living in an apartment (we would have to get a bigger/more expensive apartment in that case). Option Two: Buy a smaller/less expensive townhouse/condo/apartment for 70-100k so the mortgage would be less than renting (500-700 a month). Pay this off pretty quickly while paying off student loans, later on we would then save for a down payment for our dream home and use this as a rental for extra income. The advantage of this is that even if I become unemployed, my husband would be able to cover the entire cost of the mortgage and all of our bills. The downside is our child having to change school districts potentially once we move again, also it means living in a smaller space for longer. Option 3: Buy the dream home first, then pay off student loans. We may also decide to buy the cheaper 180-200k rancher or townhouse/condo instead, not as nice as our dream home (and older), but more affordable. Buying the house first would allow us to have a home sooner and we could foster to adopt sooner. The downside is if I am unemployed it would be more of a challenge financially, but my husband's income might go up enough to cover it. I also would hopefully not be unemployed for long, but it's hard to predict. We are really struggling with the best thing to do financially and emotionally. I feel so far behind in life, still renting in our late 30's and not having a child yet, but I also don't want to put us in a bad financial situation. I would like to have a home paid off before we retire. We lived in poverty for all of our 20's. I made $12-$14 an hr until I was 29. Now that we have more money, I want to be responsible, but also enjoy what we have. The later we buy a home, then we may put off adopting. I do have concerns about being too old to be parents if we wait too long. What do you think the best thing to do is? [link] [comments]  |
| Posted: 05 Dec 2020 06:11 PM PST Hello guys, I bought a car in September from Toyota and have been making one-time principal only payments since I have some extra cash. However, I noticed for the November payment. Around 25% of that payment was paid towards interest compared to my October payment's 15%. Why is that? I was under the impression that making one time principal only payments would make me pay less interest? [link] [comments]  |
| Has anyone had problems with appraisals? Posted: 05 Dec 2020 06:31 AM PST This is my first home purchase. I am working with M&T Bank (FHA Loan), they sent an appraiser to our house we just finished building. The appraiser valued the home $15,000 less than what the builder was asking for ($550,000). The builder does not want to lower the value of the home. They are saying that the appraiser 1) did not include a $8,000 seller credit in his appraisal, 2.) He used the wrong square footage (400sqft off), 3.) The appraiser had the wrong number of bedrooms listed, 4) The appraiser had the wrong number of bathrooms listed. The builders are saying that the appraiser refuses to change his evaluation. Now M&T Bank wont pay more for the house than the appraised value and the builder wont lower the price. So this leaves me stuck in the middle to have to pay the difference. Unfortunately we are already over budget and can't provide the additional $15,000 so we are forced to close the contact to the house and get our money back. I can probably come up with the money in a week, but is it even worth it? I feel like I am just eating the difference here. Has this or something similar happened to anyone? Is there anything we can do here? Why would the appraiser refuse to adjust the appraisal when it was clearly butchered? [link] [comments]  |
| Debt Consolidation- Need advice Posted: 05 Dec 2020 05:32 PM PST So, it took me a while to post on here about my financial situation, but I'll lay it all out so you have a better understanding and can give me solid advice specifically for my current situation. I'm 23 and live with my boyfriend (he just started working two jobs.) We have two pets. I just started a job back about 3-4 months ago that's 100% commissions. I haven't made a single dollar since then. My mentor/ boss advised me not to get a second job so that I can focus 100% on this one. I just got a second part time job driving for a company like PostMates which I'll do in the evenings. My boyfriend and I are DROWNING in debt and are barely living paycheck to check. We both have student loans (he's having to pay on his, but I don't have to pay on mine just yet) and we both have car payments and have to have full coverage insurance. He also has over 1,000 for a medical bill that we just received in the mail. I'm 3 months behind on my car payment and falling behind on my credit card payments. We almost got evicted at our last place and we owe them around 3,000. We are currently frantically trying to scrape the money for rent that was due on the 1st. My total debt not including school loans is around 9,000. I need to know what my options are asap. I thought about taking out a debt Consolidation loan so I can get everything paid and just have to worry about the one payment, but I don't know much about what my options are. I'm worried about us falling behind here and getting evicted. I made a huge list of every single bill I pay and the date it's due. My problem is my debt to income ratio. I have way more debt than I have income. I want to throw in the towel on the insurance job so I can have a regular job with steady income, but once I get going at this insurance career I'll be making BANK. I know I need to ride it out, but I'm falling behind on bills and I'm way in over my head. Someone please give me some solid advice. Also I live in TN if this helps!! [link] [comments]  |
| Posted: 05 Dec 2020 06:59 AM PST I've tried savings accounts and even though there's a 6 monthly withdrawals, it didn't really work out. I wanna know if there are any accounts out there where I'm able to contribute to but not withdraw from for a certain amount of years or not until I get to a certain age. I'm 20 and a really bad saver so I need a model where I can save and not be able to touch the money for a period of time after. [link] [comments]  |
| Posted: 05 Dec 2020 07:56 PM PST I have a current lease on an Audi, it is up in January. I have a good job, make money and I am trying to figure out what to do since I am not driving that much - extend lease for 6 months to see what happens with C-19, lease a new Audi or find something nice but cheaper. Issue is that I am not that motivated to test drive a bunch of cars right now. Advice? [link] [comments]  |
| Leaving Bank of America for Ally, is there any advantage to leaving my account open? Posted: 05 Dec 2020 04:10 PM PST Hi! As the title says, I'm leaving Bank of America and moving to Ally due to minimums, fees, 0.01% APY, and general disregard/disrespect for the consumer. I have had my Bank of America Savings account and Checking account for a decade. (I'm 29) Is there any reason I should consider leaving open my account with the min balance just sitting there? Is there an advantage to having a legacy with a bank? ( They treated me quite poorly despite my legacy, so I'm ready to close and say good bye ) [link] [comments]  |
| Pay off the credit card or keep the emergency funds? Posted: 05 Dec 2020 07:53 PM PST Hi all, I'm in my 30s and single, recently started my career. I now run my own business, and make a fine income around 75k pre taxes. I have 5,000 in an emergency fund, and I have 8,000 in credit card debt (at 9.9% APR) from graduate school. Because I'm self employed, and we're in a major economic crisis, the emergency fund seems very important. I try to pay 100-200 on my credit card each month. However, I paid $450 in interest on the card this year. It's through a credit union so, low interest rate, but that's still a lot of interest. I figure that my line of credit serves for an emergency as well. So, is the emergency savings really that important to keep, or should I put a couple thousand towards this credit card debt? The small emergency savings isn't making much money. But it does make me feel a little better about 'what ifs'. (Also, I contribute to a 401k and a Roth account separately.) [link] [comments]  |
| Posted: 05 Dec 2020 04:41 PM PST I apologize if this is a common question, but I could not find relevant information on google or browsing through the sidebar links for around 30 minutes. I may just not have been looking in the right places. Is there a better way of handling this process other than simply asking my financial advisor to liquidate the current assets and transfer it to my bank? Would it be better to liquidate up to a certain amount and waiting to avoid being taxed at a higher rate, or would it not matter? Thanks for your time. [link] [comments]  |
| Unemployed and In-Between State Moves - Which state health insurance can I sign up for? Posted: 05 Dec 2020 05:50 PM PST I've been resident of Florida for the past 10 years, have a condo I own there and am in the process of renting it out to tenants by end of this month. I've been planning on moving to CO for a while, so I decided to stay over my parents house in Jersey before I leave for good to CO. I want to sign up for health insurance for 2021 and I know deadline is the 15th. My question is, since my existing address in Florida will no longer be where I reside in and I don't have a set address over in Colorado yet, which state would I sign up under and how would I go about in putting an address down? I do have a PO Box in Florida which I intend on keeping, but they don't allow that with most of the pages where you signup on healthcare.gov. My parent's house in Jersey is about the only place where I have any type of assurance on in case I have something that needs to be sent to me via mail, etc. I also know I qualify for a lot of the subsidies since I got laid off back in March and have made under 50k combining both unemployment income and income from work this year (2020). [link] [comments]  |
| Traditional pretax 401k rollover to vanguard IRA. Couple questions. Posted: 05 Dec 2020 05:30 PM PST I am currently in the process of doing a roll over and i was wondering if i can get some help. the first question i had was, in my vanguard account, for traditional contributions, i have 1 titled "Traditional IRA" made by me last year. current balance is $0 becuase i decided i no longer need this eyars contribution to a traditional and did a recharactization to roth IRA. the 2nd traditional i have is titled "Rollover IRA" from my employer 2 jobs ago that I rolled over. Does it matter which traditional IRA I roll over my current one to? I would ideally want it in the rollover IRA one because of OCD reasons. but is there an actual difference between the traditional IRA I opened vs the "rollover IRA" automatically opened when i did my first ever rollover? second question is. with my current new rollover (100% traditional contributions) I plan on shifting to my own 3 fund portfolio (probably 2 fund for now since I am young) I remember reading some other thread on reddit regarding tax efficiency of bonds vs stocks in a traditional vs Roth. Are there any tax advantages i should even care about when making this 3 fund portfolio in my traditional ira? [link] [comments]  |
| Low interest (2.5%) debt, interest only 2 years - invest or pay off or any other ideas? Posted: 05 Dec 2020 04:41 PM PST Assuming I do this on Monday, should I buy into index funds or just keep aggressively paying the debt? I owe 75k on all of this debt and it's a personal loan (refi'd student loans and car payment). I only have to make interest payments til Nov 2022 at which point it will be the remaining balance over 5 years. I've been paying ~2k a month including the interest payment, but I'm wondering if it's a good idea to invest RIGHT NOW. The market is very inflated imo, and I'm wondering what your thoughts are on buying in at a market high. Thank you in advance! [link] [comments]  |
| Posted: 05 Dec 2020 08:26 PM PST They keep pushing the forbearance back. I've been saving the payments I would have made plus extra in a HYSA. I have also started contributing to a Roth IRA for the first time this year. A little here, a little there. My Roth Ira rate of return has significantly outperformed my interest rate on my student loans. My student loan interest rate is only 3.7% spread across 8 loans ($26,500) left. My current roth contributions for 2020 is only $1,200.00. Should I invest more before into my roth now (I have the funds to max it for 2020) or should i continue to save and make a big payment towards my student loans right before student loan interest rates go back into effect? [link] [comments]  |
| Posted: 05 Dec 2020 03:26 PM PST Next week is my last week at my current employer. I have about $50k in my 401(k) which I contributed to pre-tax. I don't have health insurance or an existing HSA. The new job has a 40% pay bump which will put me in a higher tax bracket. I've heard it is advantageous to roll over a 401(k) from a previous employer into a Roth IRA because right now in 2020 is probably the lowest salary I will ever have again. I already have a Roth IRA. Would this mean moving the 401(k) into the Roth IRA I already have and paying taxes on the converted amount? How does this affect the $6000 annual limit? I plan on signing up for a HDHP at the new employer and creating an HSA. Would it be possible for me to dump the full allowable amount in the next 2 weeks or is this only done via payroll deductions? [link] [comments]  |
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