Personal Finance Ready to retire this summer. Please find any holes in my plan. |
- Ready to retire this summer. Please find any holes in my plan.
- Lawyer's office seems to have lost a check I physically handed to them, but someone cashed it. Do I have to give them another one, or is it their problem?
- Am I Misunderstanding “Passive Income?”
- Potential Zelle Scam and my response
- Sent To Collections As a Minor
- In-law forgot to declare 401k
- Paying for car insurance on a car I sold over a year ago - do I have any options?
- Is 700$ after all bills/necessities paid enough to get me by monthly?
- Can I ditch my career at 45 to "retire?"
- How much of an advantage will someone have if they graduate college with no debt?
- My credit card was declined 3 times even though I've been paying the minimum balance. Why?
- Budgeting for New Rent
- Advice on how to turn a Political Science degree into long term wealth?
- Early retirement advice, savings goals
- 50-30-20 Budget question
- Wages garnished for 9 years
- Recast Rental Property or Invest in Stock Market?
- Large tax refund deposit holding up mortgage commitment
- Are rent to own home's that simple? can you help me?
- Best structure for inherited property
- College Student Credit Card Income
- Professional Services To Backdoor Your Roth IRA?
- High Interest Rate Savings Account
| Ready to retire this summer. Please find any holes in my plan. Posted: 05 Jan 2021 04:46 AM PST EDIT: THANKS FOR ALL OF THE INSIGHTFUL COMMENTS. I READ EVERY ONE, EVEN IF I DIDN'T REPLY.Female, with no health conditions, will be 66 in March(full retirement date 66+2months, so, June 1,2021). I started Medicare this January and have a no-fee Advantage Plan. I have a total of just over $400,000 in all of my accounts total (403B, savings, mutual funds, small IRA). When I retire, I will get $2400/month SS. MY PLAN: pay off the mortgage of $25,000 now. Quit my job (currently at $60,000/yr) in April or May 2021, use my personal leave time (300hrs) for income until SS kicks in (June) and come away with a bigger cushion in savings from excessive leave time they will pay out (I own a house, I want a bigger cushion!). My budget says I can actually live on the SS with a $1000/month draw from 403B, giving me $40,800/yr to live on (and that's with over budgeting). Yes, I'm aware that I will forfeit the "8%" increase if I were to wait until I'm 70 to draw SS. But doesn't it make more sense to do it this way? If I were to pull out $40,800/yr (to live on) from my $300,000 retirement fund to live on, I'd spend $142,800 of it (almost half) just in those 3.5 years. With this plan, I'm only using $3500 from my retirement plan $$. Thoughts? Opinions? ONE MORE THING: although I'm healthy, I work in a frontline position in a hospital, I'm being exposed to COVID, with "proper" PPE, many times a shift. Yes, I've started my shot series. We are being overwhelmed with COVID at this point. For the past few years, I've always said I had 2 goals: #1. don't get hurt #2. don't get fired. Now I add #3. don't get sick. EDITED to add: the house is worth at least $180,000 and I'm always considering selling, and yes, I should downsize. I'm already working reduced hours (33 hrs/week). And I can easily live off of that. I'm not a shopper, I'm not a spender, I've always been frugal and quite frankly, have most everything I need. My biggest budget allocation will be food, I feed myself very well, at home, with restaurant meals only 2-3 times a month (even before COVID). I want out of the environment I'm walking into constantly. I think this is my way out. EDIT (AGAIN). wow, awards! [link] [comments]  |
| Posted: 05 Jan 2021 03:01 PM PST During an in person meeting with an estate lawyer a month ago, I was requested to give them a physical check before leaving to settle our account, which I handed directly to the lawyer. A couple of days ago, they sent an invoice for the same amount. They say they have no record of the payment, but the check I physically handled them has been cashed. I sent them my proof of this, which includes the images of the endorsed check provided by my bank. I am nervous that they will still provide pushback even with these images, as we are planning on buying a house in the next three months or so and can't afford the credit ding if they come after us in collections, but we do not want to give them additional $. If they lost the check, is it their problem, and we can use these images to quickly clear up any collections attempts, or ours, and we have to issue a new payment and fight with the bank to get the other one back (when, in fact, it will likely show that it was cashed to the person the check is made out to, and thus not fraud)? [link] [comments]  |
| Am I Misunderstanding “Passive Income?” Posted: 05 Jan 2021 04:30 PM PST I was reading this article about a couple that's "quit their job and now generates $16,000/month in passive income." But they're managing 60 rental units, she's written and book, and "building her brand." That doesn't sound passive to me (like dividend checks, interest or portfolio growth). https://grow.acorns.com/amp/passive-income-lessons-from-early-retiree/ I'm not familiar with Acorns. Is this a clickbaity/gimmicky site like Motley Fool ("Rare double down alert...")? [link] [comments]  |
| Potential Zelle Scam and my response Posted: 05 Jan 2021 11:18 AM PST Hello Reddit, I find myself in an odd position, someone I do not know sent me $350 which immediately set off my scam response, I called my bank and reported the transaction as unsolicited. While I was on the phone with my bank, I received several calls from an unknown number which I didn't answer. The person started texting me saying they were the person that accidentally sent the money and wanted me to return the money through Zelle. I informed them I would not be doing that and to contact their bank, to which they responded very aggressively. Another number that was similar to mine started texting me threats and sent me pictures of my social media in an attempt to scare me into sending the money. I have blocked both numbers, and have screenshots of all the conversations that took place. I filed a report with my local police department and did not respond to any further interactions from the two numbers. The person(s) tried to contact my employer in an attempt to get to me, but got stonewalled by the front desk. I have already set aside $350 in a separate account so I know that money is not mine. Is there anything else that I could do? I think I have everything lined out properly, but a second, third, seventh opinion would be appreciated. Edit 5 Jan 2020: My bank has reversed the charge already! About 20 minutes after I made the original post, I checked my account and saw the reversal with a claim number. It appears the system works! [link] [comments]  |
| Sent To Collections As a Minor Posted: 04 Jan 2021 08:16 PM PST Hello everyone, When I was 16, 4 years ago, I had a medical procedure completed. Obviously since I was 16, I didn't have any credit nor did I even have a debit account. Well, 3 months ago, I noticed my credit dropped from 735 to 676, I noticed I had a collection from transunion. Upon further investigation it was from a medical bill from that surgery as a minor. My mother called the hospital and they didn't know anything, but she eventually found that it wasn't paid off and it was the hospitals fault. So she went on to pay it in full. I disputed it and claimed that it was not my responsibility and I was a minor and it was not our fault, the hospitals billing department messed up. 3 months later and I've still heard nothing. My credit report says that it'll be removed in 2024 even though it's paid in full. What else can I do to get this removed off of my credit history ASAP. I don't believe that this should affect my credit at all. Thank you! PS: Not understanding the downvotes, but okay. [link] [comments]  |
| Posted: 05 Jan 2021 01:46 PM PST Hello, My MiL is recently retired and she received a letter regarding her previous employers 401k. It stated that it was going to be cashed out because she has reached the age of 65, but she has the option to move to to another account (like a roth). She forgot to tell us and the 60 days just passed so it was processed yesterday to be cashed out and sent to her in a lump sum. How bad is this? I'm assuming she will be taxed heavily for taking a lump sum? Would it be possible for me to ask them to stop the processing on the lump sum check? Any other advice? Thank you [link] [comments]  |
| Paying for car insurance on a car I sold over a year ago - do I have any options? Posted: 05 Jan 2021 03:29 PM PST I'll start with I'm an idiot, and don't look at my credit card bills as often as I need to (and will from now on). Just realized I have been paying for monthly car insurance on a vehicle I sold over a year ago. Do I have any grounds to request a refund on the insurance premiums, or should I tuck my tail and eat the cost? [link] [comments]  |
| Is 700$ after all bills/necessities paid enough to get me by monthly? Posted: 05 Jan 2021 05:34 PM PST I (26F) am currently 50% of the way to my goal of saving 25,000 for a down payment on a house. I ran the numbers on what my estimated mortgage, all bills, pets food/costs, and my food will come to and I will be left with 700$ a month after all bills/mortgage/car gas/everything necessary is paid for. I have no debt my car is paid off as well as student loans. My car is also in good shape and should last another 5ish years. Will I be okay with 700$ a month after all bills paid, or is that too little? EDIT: my retirement fund is automatically taken out of my paychecks and is factored into this equation as well. [link] [comments]  |
| Can I ditch my career at 45 to "retire?" Posted: 05 Jan 2021 07:42 PM PST To get right to it, between saving early, a well paying job, and starting off financially ahead, at 40 I'm looking to retire at 45. The numbers:
Assuming I finish off the mortgage and pull out about 3.5% of my saving ever year, I'd need about $2,200,000 to retire. That's $500,000 more than I have now, but something I could potentially pull together in four years. Two mil is a lot of money but at $6k/mo I'm not exactly living frugally. I feel like I'm missing something big. FWIW, my goal is less to actually retire but to have career freedom. A job that pays less than half my current salary would keep my from dipping into savings, and at this point in my life the idea of a job I enjoy is more and more appealing than a job that makes me tons of money. [link] [comments]  |
| How much of an advantage will someone have if they graduate college with no debt? Posted: 05 Jan 2021 06:45 PM PST Question's in the title. How much of an advantage will someone have if they graduate with no college debt compared to the average graduate with a debt of ~$30,000. [link] [comments]  |
| My credit card was declined 3 times even though I've been paying the minimum balance. Why? Posted: 05 Jan 2021 06:12 PM PST I recently lost my job and I only have $5,000 left in savings to live off of until I get another job. Unfortunately, I qualify for 0 covid relief programs. My plan was to continue paying my rent with my savings, and rely on my credit cards for expenses. Up until this year, I have always always always paid my credit cards in full. But since I don't know when I'll have income, I've recently only paid the minimum balance on them to allow my $5,000 in savings to be able to stretch out more towards my rent. I have $20,000 available in credit across 5 credit cards. 4 of them I keep small monthly subscriptions on to autopay, just to keep them active. The last one, my mastercard, has the highest available credit of $7,500. So far I have racked up $1,200 worth of credit card debt on that card over the past 3 months. It's almost all food or public transit costs. I went to buy groceries today and my card declined. I thought I could keep putting purchases on the card until I max out the credit. Isn't that how people rack up credit card debt? Only 16% of the credit on that card is being used. This is my first time experiencing going into credit card debt, and I want to rely on it for now just in case it takes longer than expected to secure a job (I've already applied to 130). Why did my card decline and what am I supposed to do to ensure it won't decline? It was really embarrassing and a waste of time. I know I should be paying the credit card off, but financially it makes more sense to use my savings on rent for as long as I can. I'm currently on hold with the credit card company, but if you have any attentional info I'd appreciate it. [link] [comments]  |
| Posted: 05 Jan 2021 03:47 PM PST Hey you lovely money gurus, of which I certainly am not. I want to get a gut check here and make sure I'm not overspending. I currently live in a 2 bedroom apartment that costs $1500/mo. My partner and I split this so we pay $750 each. Prior to him living with me, I paid the full $1500 myself. Prior to this apartment, I paid $1800 on my own. We are looking at renting a house in a smaller city to get more bang for our buck (a yard, private parking, more storage, plus an extra bed and bath). The house we really love is $2400/mo. My partner and I would split this in half for payments, so $1200 each. Even though my share ($1200) is far less than the $1500 and $1800 I paid prior to him moving in, I feel like I'm wasting money and being irresponsible. For context, I gross about $75,000 a year ($6250/mo). I have around 3 months living expenses in savings, a small amount of investments, a modest 401k (I'm in my late 20's), and just recently paid off a few thousand in credit card debt from my early 20s. Am I making a poor financial choice here, or is this financially logical and responsible to pay $2400 (between the two of us) for our "dream home." Thanks! Note: Salary will remain unchanged after the move and I am not interested in buying (yet). [link] [comments]  |
| Advice on how to turn a Political Science degree into long term wealth? Posted: 05 Jan 2021 07:32 PM PST Hello. I'm trying to weigh my options and make sure I make the correct decisions for long term financial stability and wealth. I'm 24 and started my first job out of school a year ago next week. My salary for 2019 was around $43,000 with bonuses. I'm not really sure if that's a good amount or not. I live in a rust belt city if that helps. I was kind of expecting to make more when I entered college since my original plan was law school. I decided that wasn't worth it. My current position is in the credit department of a chemical company (I got lucky). I've been told I'm doing great and am already #2 in terms of performance on the team of 10. I'm starting to plan my next move and wanted some advice on that. My current ideas:
Are there any other ideas that I'm forget [link] [comments]  |
| Early retirement advice, savings goals Posted: 05 Jan 2021 12:13 PM PST I really don't want to work as a corporate slave until my health fails me. I'd love to be skiing or riding my bike 6 days a week before I'm too old. My hope is to retire at 55. Current situation: 43 years old, married, one child (3yrs) 12 years remaining on mortgage, no other debts $70k in savings $140k in 401k I also have a pension from a previous govt job that will pay approx $8k/yr, but not until after 65. I expect my wife will return to work part time once my daughter is in school, and would likely need to work full time when I retired for insurance until Medicare age. I have a rough sense of what sort of income level I need to survive, but I have no idea what the standards are for savings? I feel like I've been saving and planning well for a long time, but I should have some really specific goals for the next 10 years. [link] [comments]  |
| Posted: 05 Jan 2021 07:06 PM PST Hey guys, so I recently got into budgeting and I have a question about the allocation of funds. I currently have a 5 month plan to pay off student debt. I have no loans but I owe money directly to the school. I recently got a big raise at work and am wanting to get out of debt asap so I can begin saving and investing debt free. I am 25. So my set up right now (post raise) is like this: 45% is going to living expense (worst case scenarios) 20% to savings 30-35% to The college I owe. I'm not a big spender nor do I really go out my. My biggest expense before budgeting was eating out while at work. Do you all think it would be worth it to cut the savings to 15 or 10% for the next 5 months to go ahead and finish paying off my debt? That is currently all I owe/pay on aside from rent, utilities, and food. Any ideas on what would be the best way to go about this? The 5 month plan is because in 5 months I will turn 26 and will need to start paying into my healthcare plan and is also around the time my 401k will kick in. My company matches 100% of 4%. Thanks in advance! [link] [comments]  |
| Posted: 05 Jan 2021 06:50 PM PST Hello we need some advice. Long story short my husband and I were in a financial bind in 2010. We went to Spring Leaf Financial to get a debt consolidation loan for $2500. They paid off some small bills we owed and then we ended up with about $500 cash. Our monthly payments were $208 a month but unfortunately we werent able to pay them. (Times were hard). Then a representative showed up at our door asking if and when we can make a payment, which i thought was so weird! So anyways Spring Leaf is no longer a company but they have been garnishing our wages for almost 9 years through the courts. We now owe them around $4000 and the interest keeps going up. We feel we will never be able to pay them off through the wage garnishment because the amount keeps increasing. It just doesn't seem right. If anyone has any advice for us it will be greatly appreciated. Thanks in advance. [link] [comments]  |
| Recast Rental Property or Invest in Stock Market? Posted: 05 Jan 2021 06:34 PM PST Hello. I am 43 yo and employed with a good paying job (however, the thought of living off of rental income and retiring early is very enticing to me). I currently own three rental properties with each having a positive cash flow rate of $1000/month after all expenses. The most expensive of the rentals, for which I receive $3500/month gross, has a principal balance of $480k. I currently have approximately $350K in cash in my checking accounts. I was thinking of recasting the mortgage. By putting $200K into the recast to pay down the principle, I would be increasing my cash flow by approximately $1000 per month (due to the pandemic and potential worst case scenario of losing my job and tenants losing their jobs, I wanted to hold onto $150K in cash). Would recasting be a wise financial move or hyper-conservative? On one hand, I think I could get a better return on investment if I put that $200K into the stock market, but would be subjecting it to market volatility. On the other hand, if I aggressively pay down the mortgages on my rentals I could potentially retire early (if all rental incomes had the mortgages paid off I would receive approximately $10/month in rent). On my third hand, maybe there are better investment opportunities I have not even considered. Thanks for the advice! [link] [comments]  |
| Large tax refund deposit holding up mortgage commitment Posted: 05 Jan 2021 06:19 PM PST Got things figured out and an "out" solution if needed. Hi everyone, Problem with a hold up on my mortgage commitment. I am in the process of buying a house and currently getting a mortgage commitment. My mortgage processor asked for a verbal explanation about a large deposit, I submitted one explaining it was my tax refund from a investment property that was sold in 2019. They decided they wanted more documentation, so I gave them my tax returns. It clearly shows the exact refund amount for individual (a large refund) and federal (a small refund). They then explained it showed ONLY the small refund but not the large refund. Starting on page 1 it mentions the large refund, then mentions it on multiple other pages. I don't think they could miss that. They now want a copy of the fully signed closing disclosure from the sale and a copy of the check received for the proceeds which could take me days to get. I have a office handling getting me the paperwork since I'm out of state. I checked my tax returns: it shows the exact amount overpaid/ refunded from the California Franchise Tax Board that the processor is asking about, and mentions the router/account number for the large deposit (also the same as the processor is asking about). It also shows in the description of the deposit "FRANCHISE TAX BD CASTTAXRFD" under bank deposits description. I'm getting incredibly frustrated because I have a deadline to meet and I may miss it because of this. Any advice on what to do/how to handle this? TL;DR Mortgage processor not accepting tax returns with clear information about the large deposit being a tax refund. Large deposit is clearly from California Franchise Tax Board, it says for on the deposit description "FRANCHISE TAX BD CASTTAXRFD". Now asking for more documentation. I'm getting incredibly frustrated because I have a deadline to meet and I may miss it. Any advice on what to do? Thanks! edit: clarity [link] [comments]  |
| Are rent to own home's that simple? can you help me? Posted: 05 Jan 2021 04:25 PM PST Good evening everyone. I wanna asking in regards to Rent to own homes because, I have no knowledge of Rent to own homes. I am just learning about this from my mother who is currently making plans to search for a house. I am starting college this year, it's going to be stressful, I just know. However, I don't want my mother being scammed by some sus website. "Rent to own" sounds to good to be true because I feel, there is always some catch that I am not seeing or reading. And I don't have the ability to find everything that can help me help my mom because I have shitty research skills(working on it). Is there any advantages or disadvantages that I should be aware of? I really would appreciate it, so I can write some notes on it. Would having a good credit score be, long term, better? [link] [comments]  |
| Best structure for inherited property Posted: 05 Jan 2021 08:08 PM PST My 2 sisters and I inherited a vacation property (US) that has been in the family for 60 when my mother recently passed. We all love the place and are wondering what type of legal entity would be best to manage it. We are each thinking of contributing x amount of money for taxes and maintenance, enough to last for many years. We all get along now so we don't foresee any conflicts but I'm sure they will crop up. Any suggestions? [link] [comments]  |
| College Student Credit Card Income Posted: 05 Jan 2021 07:56 PM PST I am currently 18 years old and I am wanting to apply for a credit card. I recently found out about the Discover it Student Cash Back credit card. I am living at home with my parents and I currently do not have a job. I was wondering if I could put down the money I was refunded from my college and scholarships as income. I have a substantial amount of it in my bank account plus some other savings (almost $7,000). Would this credit card be a good option for me? [link] [comments]  |
| Professional Services To Backdoor Your Roth IRA? Posted: 05 Jan 2021 07:53 PM PST For several years now I've made just slightly too much to save using my Roth IRA, and I'm starting to feel like I'm missing out on some serious retirement benefits. At the same time, I've watched a bunch of videos and I just don't trust myself to do the paperwork right for a Backdoor Roth. Is there someone at Vanguard or a very trustworthy 3rd party person I can pay $300 to do this right every year? Side rant- I really wish this could be done with a one-button click or single piece of paperwork. This really feels like a loophole that was deliberately placed out of reach of people who aren't tax-savy or don't have a personal accountant. [link] [comments]  |
| High Interest Rate Savings Account Posted: 05 Jan 2021 07:52 PM PST What banks have the best high interest rate savings account? What are important details I should look for when choosing an account? [link] [comments]  |
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