Personal Finance Financially insecure or am I overthinking 30 year old |
- Financially insecure or am I overthinking 30 year old
- Giving up on home ownership. Invest all at once, or DCA?
- Skipping your dental cleaning will not save you money in the long run. If you can't afford it, be sure to check with your dentist to see if they offer discount plans.
- Why the big difference in house affordability in what redditors suggest vs the calculators on Zillow, Redfin, etc. ?
- Dad wants "us" to buyout a lease on a car in my name
- Any suggestion for in-depth, free, financial planning tools?
- Where to invest if I have a pension and already max out Roth IRA?
- Better to buy new car in cash or with 0% financing?
- Question about W-2 forms and tax refunds from an intern
- Thinking of Quitting Work and Retiring Early
- How to retire early without penalty?
- Is 4% a reasonable fee for a real estate agent?
- made some money trading stocks, looking to put away 20k for kids I dont have yet, whats the best way to do this?
- Investing with brokerage account
- Bank of America system is TRASH!! Charge $25 FEE afterward! Didn't tell me anything upfront! Backward autopay system!
- Refinancing with big banks vs. smaller lenders
- Does my down payment actually matter to seller.
- Filing taxes on time but paying late; trying to figure out how much I'll owe in full
- Recommendation for auditing health insurance deductible and claims
- Can I use health exclusion to avoid capital gains on a home?
- Someone is opening accounts in my name
- Apartment Construction Delay
- Saved money while student loans are in forbearance, what should I do with the cash?
| Financially insecure or am I overthinking 30 year old Posted: 06 May 2021 08:32 AM PDT Immigrant here came to the states at 3 years old currently living in Chicago,IL. Father recently passed away we grew up poor and i had to spend a good amount of money covering the funeral and some of his sideway illegeitmate business debts for my mothers sake. I expect no inherritance from my mothers side either. I used to have a dream about retiring early but for right now ive put that aside mentally. Growing up poor has made me i want to do things right and sicne my fathers passing and see what it did to my mother and my family ... im wondering if im doing things right am i missing something ? Expenses: Rent, groceries, subscriptions, hair cut, bills cost me about :$ 2500/month Base Salary 55K (2% raise every year) after commision i average about 100k-120k/year. 401k :$50k ( company offers no match ) I have 5 % of my paycheck go this right now.Traditional IRA: 13k ( i only recently started this i plan on contributing the max every year if possible.) House Fund: $30k (hoping to get to this 50k by age 31 so i can put down 10 % on a house using an FHA first time home buyer loan on a 500k house in chicago.)Emergency Fund: $18k hoping to get this to 25k by age 31 ( dont anticipate having to use this really.... but thats why its called an emergency fund i have in a 90% bonds/ 10% stocks portfolio) Stocks: $90k I manage this on my own where i think thats the part that has become stressfull ive made some chunky returns but its taken up mental real estate and thinking about just handing this over to a financial inverstment planner so i dont have to think about it. My company does not have an HSA it has an FSA is that something i should be contributing to ? Am i missing something ? any advice ? Time to go see a thereapist or a financial planner about this stuff? Moneys never tight but im always on edge about planning. [link] [comments]  |
| Giving up on home ownership. Invest all at once, or DCA? Posted: 06 May 2021 10:00 AM PDT after 8 years of saving up cash to put a down payment on a house, I have realized that home ownership is not in the cards for me, especially after this housing boom we're experiencing now. (It's taken 8 years because I've been chasing a moving target. I could have had a down payment 4-5 years ago if prices hadn't kept rising faster than I could save/get raises, but now there's no catching up) Landlords are taking anything they can get their hands on, leaving people like me with well paying, secure, middle class jobs, completely outpriced and stuck renting from them for the rest of our lives. Maybe if I one day leave my HCOL city I'll be able to buy a home, but that's not in the foreseeable future. Trying not to think about how much compound interest I've missed out on not having this money invested all this time. What's the best course of action for getting this money in the market? Take the plunge and go all in at once, or dollar cost average over a period of time? [link] [comments]  |
| Posted: 05 May 2021 01:17 PM PDT I had my first dental appointment today in over a year. It wasn't the *worst*, but it wasn't the quick cleaning that I usually have. There's some gum disease, which doubled the cost of the visit, and it's bad enough that I have to come back again next month. Fortunately I found out from my dentist that they have their own discount plan for $59/year which reduces the cost of all visits, and I encourage anyone who is still laid off to look into this. The timeline of my assumptions/decisions that led up to this:
When I decided not to opt in to Cobra dental, it would have been about $600/year. 2 cleanings/visits at about $150 each are usually what I need and so I took that calculated risk. It still might not end up costing more than that, but I realized that having insurance meant I was more likely to actually go, because I wouldn't want to lose out of benefits I was paying for. This may be no-brainer stuff to some people, but if it helps one person go get their teeth taken care of, I figure it's worth sharing this story. Edit to add link/info on periodontal disease: Many people in the comments have said they never need to go to the dentist and had no issues, or think that dentists over-diagnose deep cleanings. Everyone should of course make their own decisions based on their health history. Given that gum disease can creep up on you and not seem bad at first, I don't think twice a year is a bad recommendation for most people-- and my lesson here was that I am not one of those lucky people. https://premierperiodontics.com/dental-blog/what-happens-if-you-dont-treat-gum-disease [link] [comments]  |
| Posted: 06 May 2021 06:01 PM PDT Household TC: 300K before tax Are redditors generally more conservative in their calculations? Or are online house affordability calculators more aggressive? Online calculators typically use 36% nominal, 42% max debt to income in their calculations. Edit: playing devil's advocate here. I see a lot of comments about Redfin and Zillow benefiting from me buying a house and so showing a larger mortgage affordability. But same is true for calculators on nytimes or other sites not selling me a mortgage or a house. [link] [comments]  |
| Dad wants "us" to buyout a lease on a car in my name Posted: 06 May 2021 01:48 PM PDT I (23F) am a full-time student currently living at home in the US. I have a leased 2018 Civic coming up on the end of the 36-month term this November. The original amount financed was a little over $15k, 0 down,159/mo. It was originally my responsibility while I was still working, and I paid the initial fees (~2500), monthly lease amount, and maintenance. I got back into college for Fall 2019, at which point my dad started paying half in exchange for shared use of the car. At some point, he generously took over the monthly payments in full. The car, however, is in my name only and on my credit only. I am also on parents' insurance which they pay for, but I'm officially listed as a "policy holder" (this was required). We're approaching the end of the lease and my dad has approached me to say the car is valued at $19k (I don't know where he got this info yet) and that he wants to buy it out. The payoff amount currently at ~13k and I would prefer not to nuke my savings over this car. I was hoping to wait until closer to the end of the lease to assess my situation. I'm currently working on saving to move with my partner, who goes in-office at a new job sometime in the fall. I don't know if I'll need or want a car, and what my other financial obligations will look like yet. I'm worried about going into this conversation because I don't have enough knowledge/confidence and feel that in general I'm easily manipulated. I'm seeking insight on if/why the buyout might be beneficial, how it would affect my credit, and what's fair when negotiating the "we" and "us" of this situation. Possibly important details: My credit history is the best in the household. My parents wouldn't have qualified to lease a new car, at least not 3 years ago when I got it. They have 1 car other than the Civic, purchased from craigslist and they own it outright. My mom takes that one with her to work, so this is why my dad offered to pay and share — the lease is nice, reliable, and I don't use it every day. tl;dr: We've both put money into this lease, Dad more than me. He wants to buyout and is ready to pay in full. It's legally in my name and on my credit so I don't know how to proceed. edited to fix an accidental omission [link] [comments]  |
| Any suggestion for in-depth, free, financial planning tools? Posted: 06 May 2021 05:00 PM PDT When I was with a Financial Advisor (Edward Jones), I had access to a report that showed my projected retirement savings and if I would outlive my savings or not based on information we (my FA and I) entered, such as how much per year I expect to save, how much I expect it to grow, and how much I expect to spend per month in retirement. I've recently left that company for a do-it-yourself approach, but the brokerage I went to (Vanguard) doesn't have an in-depth planner that I know of. Are there any good free or inexpensive tools out there like this that you know of? I'd want something that can track multiple retirement accounts for me and my spouse, and allow me to play around with various numbers, adjust ROI's, put in hypothetical 'large' purchases (house, boats, cars, etc) in retirement to see how that affects my overall wealth, and maybe even an option to include/exclude Social Security (cause you know, with 20+ years to retirement, SS may not exist, or maybe it will). Thanks! [link] [comments]  |
| Where to invest if I have a pension and already max out Roth IRA? Posted: 06 May 2021 01:05 PM PDT Hey all, I am mid-30s with a state-funded pension that will pay well. I also have a Roth IRA that I am finally at a point where I can max out my annual contribution. Past the IRA, are there any other investment vehicles I can use that spare me some on taxes? I realize if I have a healthy IRA, social security, and pension, I should be fairly comfortable at time of retirement, but I alway like to minimize my tax burden. The only thing I don't like about investing in something like an index fund is the essential double-taxation from capital gains taxes. Is this my best option anyway? Or would you recommend something else? I have a low mortgage rate so I'm not that worried about paying that off early. [link] [comments]  |
| Better to buy new car in cash or with 0% financing? Posted: 06 May 2021 08:03 AM PDT If I've saved up and have the money to buy a new car in cash, is there any advantage to financing it? They have a 0% deal, but I assume there are fees that go along with that. My credit is good, and I don't need to build it up more. Thanks for any advice. [link] [comments]  |
| Question about W-2 forms and tax refunds from an intern Posted: 06 May 2021 02:06 PM PDT I'd like to quickly preface by saying that I've never filed taxes before and am just starting to learn all of this so please excuse my naivete. I recently secured an internship which gave me a $10,000 bonus before the start of the program to provide for any moving/living costs, equipment, etc., After taxes however, this amount came out to be $6,255.00 (37.45%). To my understanding, I could potentially get some of this money back as a refund after I file my taxes. But since the company hasn't sent me a W-2 form yet and a W-2 form is for the year prior (2020), my takeaway is that I basically can't get that tax refund this year; I would have to wait until next year. Is this correct? Also, would it potentially reflect negatively on me as an intern if I submitted a new W-4 form when my internship program hasn't started yet? [link] [comments]  |
| Thinking of Quitting Work and Retiring Early Posted: 06 May 2021 05:23 PM PDT I have a high-stress job, but I think I'm pretty okay at it despite the stress. (I've been at it for roughly 10 years or so.) I have been exploring the FIRE (Financial Independence, Retire Early) movement for a while, and I'm wondering if my personal finance plan is even do-able. See below.
I think of it this way-- if I were to just drain my $500,000.00 cash at a rate of $1,500.00 per month, I can survive for perhaps 27.78 years on just liquid assets alone ($500,000.00 / $1,500.00 = 333.33 months or 27.78 years). I'm not calculating costs like inflation though. Notwithstanding, all the other things like my tax-deferred accounts, my dividend producing income stream and underlying portfolio, and even the equity in the house as a last resort act as a sort of cushion. So, my questions/concerns, are then as follows:
Thank you everyone for your time in reading this! EDIT 1: THANK YOU EVERYONE for actually reading this and giving me some tips. I'm very appreciative of your guys' time. EDIT 2: Some facts that I guess I didn't disclose well enough: (i) I will likely still work but just at a less stress, lower paying job, (ii) I don't know how much I've paid to SSA in taxes, but I pay a lot like maybe 250k to 300k to 350k a year in taxes, and (iii) I am close to the above-mentioned facts, but I may need 2 or 3 years to give myself a little more buffer. [link] [comments]  |
| How to retire early without penalty? Posted: 06 May 2021 11:55 AM PDT I've been looking into FIRE and I have a question. Suppose i save $1 million and I just want to live off 4%. How do I get that money? If i'm 40 and want to retire I have to deal with hefty penalties for any withdrawals from retirement accounts. So how would I "live off 4%"? This is all hypothetical. I'm nowhere near a million, but I'm certainly doing what I can! [link] [comments]  |
| Is 4% a reasonable fee for a real estate agent? Posted: 06 May 2021 05:57 AM PDT I'm about to sell my house. The market is apparently very hot with homes selling fast. Some agents take 6%, some others have proposed 4% off the bat. 1- is the fee usually negotiable? 2- is 4% a reasonable fee in the context of a hot market? (~$38k) 3- should I just try to sell on my own and save quite a lot of $$$? 4- does anyone have experience with Redfin, which seems to take a 1% fee? [link] [comments]  |
| Posted: 06 May 2021 07:56 PM PDT My wife and I plan to have two kids, and we will prolly start trying in a few months. I want to put away 10k to start with for each child, and when they start college, they can have it and whatever leftover they can keep. I am thinking of just putting 20k into the VOO or SPY, and we can just add more over time. Should I just open another account on my brokerage? Should I diversify index funds? Is there another way I should do this? Ideally, the funds would be untouched for 18 years. [link] [comments]  |
| Investing with brokerage account Posted: 06 May 2021 12:53 PM PDT Hi, I have started investing since last 4 years, maxing out my 401k and IRA since then. However since I didn't know or had interest in investing years before that, I have large sum (about 100k apart from my emergency funds) that is still uninvested.Through 401k and IRA I can only invest upto $25500 / year. Does putting remaining amount in brokerage account at once make sense or there are better options? [link] [comments]  |
| Posted: 06 May 2021 07:18 PM PDT Terrible Service Warning Last month, I payed my credit card, and my statement balance was $0. However, I had autopay set up to pay my "statement balance", and BOA charged me $258.17 anyway. So I ended up with $258.17 credit on my account, and at the time I had 2 recent payments. My credit canceled the recent payments and came out to be $230.63. I talked to an associate on phone, and she informed me that I am not able to stop the $258.17 payment, because that was DONE, but I am able to get the $230.63 credit back. I said fine. However, this month, I saw this on my account:
They've charged me the $258.17 again + $25 returned check fee, What the Hell?! I talked different associates, 3 managers, was told that the $258.17 was never taken out of my checking account in the first place, because of insufficient funds. And I have to pay the $25 fee. According to them, their SYSTEM decides whether I can get the $25 waived, neither the associates nor the managers can change that. After talking to a manager, I've found that the BOA system updates its autopay amount each MONTH. Their autopay wouldn't know whether I have payed during the month or not, it's my fault that I didn't cancel the autopay that says "Pay statement balance" which was $0 at the time. In this digital age, if you're going to update your system once per month, why don't you go back to pen and paper? After 2 hours struggling to get $25 waived on phone and being denied, I have accepted that it's my fault at this point. But WAIT! After I checked my checking account, and I HAD sufficient funds! I always had $3000+ in my checking account! I was mad, so I called again. Ha! This time I've found that the $258.17 didn't get through, is NOT because of insufficient funds (great, the managers even didn't bother to check my payment record, to know the real reason why the payment was canceled), it's because I have requested a stop on that payment. Yes, I had double payment, my balance was $0, and I requested a stop on the extra $258.17, that's why I have to pay a $25 returned fee. At the time, I was NEVER informed that putting a stop on that extra payment would result in a fee! Plus she told me that the $258.17 was charged, there is no way to put a stop on that, I can only get the extra credit back! Apparently the associate I've talked to didn't know either. According to the new associate, fees related to an action are NOT SHOWN on their screens! The associates won't know it until it's charged! Funny. I would still have to pay the $25 fee. [link] [comments]  |
| Refinancing with big banks vs. smaller lenders Posted: 06 May 2021 04:14 PM PDT With mortgage rates falling yet again, I'm looking into the possibility of refinancing down to a 15-year mortgage. I have my 30-year mortgage through one of the traditional banks (e.g., Chase or BoA). When I look at sites like NerdWallet and bankrate.com, I'm seeing that the rates that these big banks are offering are significantly higher than some of these presumably smaller banks that I had never heard of before (e.g., Better, Reali, Homefinity, et al). In short, my question is, what gives? These low rates are very appealing, and I'm curious what the potential downsides/risks are. What should I beware of here? [link] [comments]  |
| Does my down payment actually matter to seller. Posted: 06 May 2021 07:11 PM PDT Like many others in this space I am in a HCOL area where the housing market is bananas. Everyone I talk to says the same thing - to win a bid you need to be at 20 pct down payment, waive inspection and appraisal contingencies, and offer well over ask. My question is - does my down payment actually matter to the seller? Do they have visibility into it? Couldn't I just say my offer was 20 percent down but then work 10-15 with the lender as long as I know that I'll be approved for that. If I'm the seller wouldn't I really only care about proof of funds? My wife and I have a combined income of 325k and credit scores over 775 fwiw. Any advise or guidance appreciated. Sincerely, -Guy who's wife won't leave HCOL area :( [link] [comments]  |
| Filing taxes on time but paying late; trying to figure out how much I'll owe in full Posted: 06 May 2021 02:06 PM PDT Due to some unique circumstances my tax bill is very, very large this year (exercised a lot of ISOs without knowing what AMT is). The only way I'd be able to pay it off is by selling shares that I exercised; unfortunately they're subject to long term capital gains until August. Thus, I want to wait until they "mature" so I can save 9% in taxes I'm trying to figure out what I'll owe the IRS when I eventually re-pay. From my understanding there are two factors with late payment (I'm not considering a late filing penalty since I'm going to file on time): interest and failure-to-pay. Interest is a daily compounding interest where the interest rate is the current short term federal interest rate + 3%. All I could find on the current short term rate is 0.13%, so the interest rate I'll be charged is 3.13%. The failure-to-pay penalty is 0.5% of the total taxes owed charged every month. I'm planning on waiting until 4 "cycles" to pay, so I'll owe 2% of my total tax bill. Thus, to calcuulate how much I owe in full, this is what I have: x + interest + (0.02 * x) where x = my tax bill. Is this correct? It honestly seems a lot less than I was expecting ultimately and it's not that bad. I want to make sure I'm not missing something or if I'm oversimplifying it and if you want to know, x = $79k... [link] [comments]  |
| Recommendation for auditing health insurance deductible and claims Posted: 06 May 2021 01:56 PM PDT Last year we had our first child and so our health expenses were pretty high. We have an HDHP with HSA through my work. I've tried to do some math to understand the deductible and how far along we are and were. It seems impossible to make the claim numbers and our out of pocket payments from our HSA match what BCBS was tracking for our deductible. What's the best way to audit the deductible vs what we are paying etc throughout the year? Is there a service you can pay a fee? Or is there someone with BCBS we can talk to just to go over the claims and deductible to explain it? I don't see how anyone can be certain or trust the insurance company to properly track the deductible vs all the claims and payments we are making towards the deductible since we don't pay the insurance company, we pay the provider. Edit: adding that we are expecting our 2nd child late this year so I am hoping to be much more on top our deductible and when we have reached out initial out of pocket limit and the total out of pocket max [link] [comments]  |
| Can I use health exclusion to avoid capital gains on a home? Posted: 06 May 2021 07:33 PM PDT Recently bought a home next to a busy Highway and railroad ( bad move I know). I thought I would be fine with the realtor saying it's a quiet zone at night. And getting special Windows. Well, that's not the case and I am too light a sleeper. I'm afraid the lack of sleep is affecting my health. The house value has increased significantly. I want to sell ASAP but the capital gains will kill me. The irs says an exclusion applies when: A doctor recommended a change in residence for you because you were experiencing a health problem. I wonder if anyone else has had experience with this. [link] [comments]  |
| Someone is opening accounts in my name Posted: 06 May 2021 11:08 AM PDT Someone has been opening accounts in my name and I dont know where to start. I got a call from discover card this morning saying they received an application in my name. I told them it wasn't me and they canceled it and are having the inquiry removed from my credit report. I go to check my credit on Credit Karma and see 2 other inquiries and a loan for $531. Where do start dealing with all this. Thanks in advance for any help you guys can give me. [link] [comments]  |
| Posted: 06 May 2021 08:31 AM PDT My apartment lease is due to start May 18th, 5 days before my graduate program starts. I was notified yesterday that due to low supplies it won't be ready until the 1st of June. They offered me to move into a bigger apartment for an extra 96$ per month, which would be a super big inconvenience. There is a construction addendum that I signed, but I am wondering if there are ethics laws that I can help them convince me to waive the 96$ fee? In texas. Need help! Thanks. [link] [comments]  |
| Saved money while student loans are in forbearance, what should I do with the cash? Posted: 06 May 2021 02:41 PM PDT I have about $45,000 in student loans with fixed interest rates around 4%. Because of the pandemic, the interest is waived and I don't need to make payments again until at least Jan 2022. Since the loan relief program started I've saved about $15,000. Right now it's just sitting there earning zero interest. (FYI, I've also got another $10k saved for a rainy day & a retirement account.) I plan on using that money to pay off the loans, but there's no reason to do it until the interest kicks back in. SO, what should I do with the money until then? I've been considering a CD, an ETF, or a mutual fund, but don't know much about any of this. Open to other ideas too. I'm young, so I'd taking some risks. If the market tanked and I had to wait awhile to recoup the money, that wouldn't be the end of the world. [link] [comments]  |
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