Personal Finance Mothers Retirement |
- Mothers Retirement
- A Simple Path to Wealth by JL Collins should be required reading for everybody, but the earlier in life, the better.
- [TX] USAA charged me $22 for a car insurance policy I paid off in September 2019 because they had a "retroactive re-rate". Is this a thing, and do I have any recourse?
- My bank took the cash I gave them for my payment and put it as a credit towards my account instead of as a payment. They now say I missed a payment.
- Help my parents are kicking me out. What should I do next?
- I'm spending 1/10 of my monthly income on very stupid stuff. Is that okay?
- Do I have too much saved in my emergency fund?
- Did we just become house poor?
- Help! I'm planning my first Backdoor Roth IRA Conversion... Am I missing something?
- IRS rejected my 2019 tax return as someone already claimed my child as a dependent. How should I proceed here?
- Is a condo a good choice for retiring?
- 30-Day Challenge #5: Reduce your future health (and current habit) expenses! (May, 2021)
- Help with eBay scam
- Approx Capital Gains on Home Sale
- How do i find a better job? 18yo
- I received a completely random deposit from the IRS in a strange amount, and they won’t tell me what it is for. How should I navigate this?
- (US) Medical debt from death of a spouse
- Signing Longer Lease with Intent to Cancel Early
- With the Child Tax Credit increasing I want to set aside majority for my kids future. What is the best way to do that?
- How to Verify Remote Startup Employer
- Question on joint tenancy and home purchase
- Bankruptcy and Taxes
| Posted: 01 May 2021 07:42 AM PDT My father passed away and we finally got his investment portfolio rolled over. He's got about 2.5 million with about 85% Apple stock and the rest spread around to various mutual funds. My mother is 65 and has no plans to work, so this will fund the rest of her life. My fathers financial advisor had told her to keep it as is, but I have a hard time believing that's smart. Makes sense to me to sell apple and move those funds into a less risky, interest bearing fund. Or heck even a high interest rate savings account that can guarantee preservation of funds. Am I off base here? Appreciate any info. Update 1: Wow thanks for all the responses! Went to run errands and didn't expect this to blowup so much. Will read through all and prep for our advisor meeting next week. Thanks everyone! Update 2: Answering some common questions 1. mother lives in HCOL city 2. father was same age and planned to work another five years 3. was a quick three months from unexpected stage 4 cancer diagnosis to his death so there wasn't any discussion on his risk plans for the rest of their lives 4. Future inheritance is not a priority for me [link] [comments]  |
| Posted: 01 May 2021 01:02 PM PDT I want to preface this by stating I am aware that this book is already listed in the sidebar as a helpful tool for new investors. However, this piece of literature is so powerful that I wanted to take the time to make a separate post to extol its virtues. Too often people fret about picking the correct investment strategy and waste precious time doing so. There's always room to learn, and the different types of ways you can invest (stocks, bonds, commodities, real estate, crypto) are virtually endless, but it is paramount to start investing something, somehow, as soon as you can. That's really where the strength of Collins' book lies: educating readers on extremely simple yet surprisingly effective strategies for investing. By selecting a broad-based index fund as Collins' suggests, you're putting your money to work without all of the analysis paralysis. While there are always going to be high-performing stocks with 1,000%+ YTD returns (or higher) that may make you feel like a sucker for sticking with an index fund that is returning 7% - 15% a year, index funds enable the long-game in an extremely cost-effective manner. Not everybody is going to be an expert value investor among the likes of Warren Buffett; very few will even come close in the next 25-50 years. But index investing really allows you to get your share without being astute (or lucky). Besides, you can still set aside 5% - 25% of your portfolio for more risky investments while keeping the bulk of your money in indexes. I can only speak to the US' public education system, but I really wish they taught this stuff in middle school, or even high school. It's a shame how many adults have little to no grasp on the subject, or even care to learn in the first place. I can only hope that with the world becoming increasingly interconnected with massive amounts of information thanks to the internet, future generations will feel better equipped to manage at least the elementary facets of their finances moving forward, creating more informed citizens. I'm definitely no expert, but it feels good to know that you don't have to be a financial genius to make your way into the stock market and find success over time. TLDR: Index investing is exemplary, and JL Collins' book on the matter is required reading for any new investor. I hope that as society progresses, future generations will know about index investing and other investment methods at an increasingly young age, and that the world can benefit as a whole from this. EDIT: Per a wise suggestion, here is the link to a 57-minute interview and Q&A session with JL Collins at Google. [link] [comments]  |
| Posted: 01 May 2021 03:29 PM PDT I'll let the transcript speak for itself:
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| Posted: 01 May 2021 05:51 PM PDT My loan began January 2020 with the payment due on the 14th of each month. The 1st of every month I've gone in person to the bank and made my payment in cash. On 4/1/2021 I went in with my cash and the bank teller put the cash towards my principle but not as a payment. On 4/14/2021 the account says that I missed my payment. 5/1/2021 (today), I went in with my cash and made my payment. Later, after the bank has already closed (short hours for being the weekend), I noticed that my receipt has a late payment charge. I checked online and my 4/1 payment is credited towards my loan balance but not as a payment and notice the missed payment remark. I'll be going down there Monday (5/3) to speak with the teller about this. Has anything like this happened before? Has anyone had to fight something like this before? Is there any information I should know ahead of time? If they tell me there isn't anything they can do what would be my next steps? Any agency I can threaten to contact if they don't solve my issue? Thank you all for your help. [link] [comments]  |
| Help my parents are kicking me out. What should I do next? Posted: 01 May 2021 07:42 PM PDT Hi im current 20 years old and im turning 21 in three months. My parents are planning to kick me out when I turn 21. Im a high school graduate working an office job that pays $17/hr. My monthly income is about $1.1k and I live in California. I want to know what the best steps to do. Can I even afford to pay for an apartment and bills? I have no savings and no friends cause we just moved to California when the pandemic happened. Thanks for your help! EDIT: I live in San Diego California. EDIT 2: I called my boss and explained my situation and he said he'll turn me into full time! [link] [comments]  |
| I'm spending 1/10 of my monthly income on very stupid stuff. Is that okay? Posted: 01 May 2021 06:28 PM PDT I'm a child, more so 15. I make usually 5,000 a month through Youtube, I want to save my money, but spend just a small hint too. I spend around 500, maybe more, I'm not quite used to this 5k lifestyle and I feel like I'm enjoying my money too much. Is this considering a lot? My friends are terrible at giving advice so I thought I'd give it a try here. Thanks. [link] [comments]  |
| Do I have too much saved in my emergency fund? Posted: 01 May 2021 07:51 AM PDT I am 26 years old, 120K in retirement, and currently have 30k saved up in my savings account for my emergency fund (only trying to paint full picture for financial situation). I've been discussing this with my CFA boyfriend and he thinks that I have way too much in cash and should invest half of that. My thinking is that I live in NYC and pay rent with a roommate and my expenses are around $2000-2500 a month, so I would just feel more comfortable being able to live off savings for a year if I was laid off. Versus my boyfriend who thinks if I was laid off I'd get a severance package (I work at a IT company with 4 years of work experience) so I'd be fine. Plus my money would be able to grow instead of sitting stagnant and losing money to inflation. Guess I just want to see what the correct path is for me, any thoughts? Edit: Thanks for all the insightful comments guys! It's been very interesting to read this with aforementioned CFA boyfriend but I'm glad to hear that I'm not being overly conservative with my decision. [link] [comments]  |
| Did we just become house poor? Posted: 01 May 2021 07:26 AM PDT My husband and I are first time buyers and just got under contract on a house and I think we may have made a mistake. Our income and payments are below: Income: Annual Gross: $105k Annual Net: $75k Monthly Average: $6225 Monthly Typical: $5745 (typically we only get two paychecks a month, but there are two months where we get 3) •my husband will be getting a $25k raise in 7 months, but I did not factor this in Payments: Car: - 211 Gas: - 90 Student Loans: -275 (in deferment until Oct. because of covid) Internet: -60 Phone: -150 Misc subscriptions: - 100~ Food: - 1000 Dog supplies: -50 Credit cards: Vary, pay off monthly We have been paying off our high interest debt and saving up for a 3% down payment on a house. We have been house hunting for a few months now. The plan was to get into something now so that we can get out of our high-crime city into a suburb and then overpay on the principal until we got out of PMI. My original budget was 180k, but that just wasn't enough to get something decent in our area. I bumped it up to $220k and we kept getting outbid so in haste we decided to go up to $240k. Last week we saw a house we loved listed for $235k but our agent said it was like worth more like $250k. We decided to bid $251k because on paper it looked like we could afford it. We just got our offer accepted yesterday and now I am starting to think we've made a mistake. With P&I, PMI, insurance, and taxes it will likely be around $1650 monthly. I have no idea what to expect to pay in utilities, but I've been estimating $500 monthly - does that sound high? I don't know. Plus then there are all the other little expenses that come with home ownership, but I really don't know what to expect when it comes to that. We currently live very well below our means and I have thoroughly enjoyed the freedoms that's awarded us. We've been able to freely travel, buy anything we want, go out to eat at nice restaurants, and just generally not worry too much about money. The thought of being stressed over money all the time makes me feel sick to my stomach. We have already have to back out of a house contract because the inspection revealed foundation issues. I am morbidly kind of hoping something similar will come up with this house so that we can get out of the contract. Edit: Thanks to everyone for calming my fears - it's obviously the biggest purchase I've ever made and I want to be sure I'm not making a huge mistake. To people commenting about my realtor suggesting we go in over budget - this is the reality of the housing market in most places in the US right now. I know it's good to be wary of people who have a financial stake in your decisions, but she has truly never pressured us to do anything at all. She just gives us the facts, shows us her data on the comparable sales, and lets us tell her what we want. $15k over ask is nothing, many hotter markets regularly have people going $100k over ask. We weren't even the highest offer, but they went with us because we had better financing. It's hard to stomach but it's likely going to be reality for home buyers for at least a few years. There's no bargain shopping in this market lol (I wish). [link] [comments]  |
| Help! I'm planning my first Backdoor Roth IRA Conversion... Am I missing something? Posted: 01 May 2021 08:17 AM PDT Both my husband and I are high earners. I have a 401k, a 403b, a Traditional IRA and a Roth IRA account. The 403b and Roth IRA are from my previous employer, when I was in a much lower tax bracket. I haven't made contributions to those since I got my new higher paying job a few years ago. They both have a few thousand dollars in them. I've been maxing pre-tax 401k and after-tax traditional IRA contributions for the past 3 years. Previously, I've been doing the traditional IRA payments in automatic monthly direct deposits. So far, in 2021 I've contributed $2,000. $1000 of that $2000 is still in the "Core" position (not invested in any stocks/funds, just cash). I had previously been afraid of Backdoor Roth contributions. They seemed shady and complicated, but I've been doing more research and feel almost ready to take the plunge. My understanding is that I shouldn't convert any money that has had time to earn interest from a traditional IRA to a Roth IRA, or I owe taxes. But I could make a $4,000 traditional IRA deposit and immediately transfer the $4000 into my Roth IRA as a backdoor Roth conversion? And, I wouldn't face any tax penalties for this? What about the $1000 from the $2000 I already deposited this year in my traditional IRA that has been sitting as uninvested cash in the "Core" position? That money has been in the account for >1month, but hasn't directly earned an interest/dividends. If I deposited $4,000 into the Core position and then transferred $5000 to the Roth IRA, would that still be ok and avoid tax penalties? Thanks in advance for any help! [link] [comments]  |
| Posted: 01 May 2021 12:11 PM PDT The IRS rejected my tax return as my daughter has already been claimed by someone else. Her mother did not claim her per our agreement (she even sent me her return). How do I handle this? Should I send in a paper return and follow up with them? What is the protocol here. I had a complicated tax situation in 2019 with partnerships/income which delayed the paperwork. I owe the IRS money so I am looking to figure this out and square up asap. Thanks. [link] [comments]  |
| Is a condo a good choice for retiring? Posted: 01 May 2021 01:23 PM PDT This is mostly for my parents, but I kinda like the idea too when I get to that age. Right now, my parents fully own their home bar a few fees left. They will retire n the next few years, my dad 5 years before my mom. Both are still very mobile and aren't really any signs of slowing down, but I know it will happen eventually. Would a condo (Or even just an apartment) be a good option? This is mostly so they wouldn't have to take care of things like their lawn, or shovel snow, or maintain the building. [link] [comments]  |
| 30-Day Challenge #5: Reduce your future health (and current habit) expenses! (May, 2021) Posted: 01 May 2021 06:00 AM PDT 30-day challengesWe are pleased to continue our 30-day challenge series. Past challenges can be found here. This month's 30-day challenge is to Reduce your future health (and current habit) expenses! Why is this important?Healthcare costs past retirement age are expensive! In addition to this, unhealthy lifestyles can have a negative effect on your current financial situation. There is already a lot of overlap between personal finance and lifestyle choices, so let's take a look at some immediate improvements you can make for your future. Reducing your Risk of Heart Disease (Cost $3,000 - $38,501)Leading a healthy lifestyle is the biggest way to reduct your risk of heart disease. Among these lifestyle choices:
Some of the above also have a side effect of immediate financial impact:
Reducing your Risk of Cancer (Cost $19,901 - $60,885 per annum)The lifestyle choices below have been shown to reduce the risk of cancer:
Note that a few of these are carried over from the first section on heart disease! There are some immediate financial impacts of reducing your alcohol intake: You can save about $750 USD per year by going dry. Reducing chronic lower respiratory diseases (Cost $6,000 more in medical care than those without)The lifestyle choices below have been shown to reduce the risk of COPD:
Related Subreddits:
Challenge success criteriaYou've successfully completed this challenge once you've done 2 or more of the following things:
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| Posted: 01 May 2021 03:59 PM PDT Family member sells an auto part on eBay. Buyer takes a week to pay (1st red flag) and when it's received, the buyer waits another 19 DAYS before they claim the part was broken (2nd red flag). It was not broken; there are photos to prove this. Buyer manipulates PP's biased return policy and insists on a refund. Buyer takes another week to ship it. When family member/seller receives it, only NOW, it is broken, at the hands of the BUYER. The seller has searched high and low to find a way to SPEAK to someone at eBay, and cannot, every since it is clear the buyer has exploited the system, and the seller is out shipping costs to and from. He has not refunded the money, and instead submitted a difficult-to-find form for returns gone bad. This is now pending decision, but does not seem like it's enough to get the fees back. Still, does anyone have a working phone number to ensure the seller can recoup the fees he's unjustifiable incurred? [link] [comments]  |
| Approx Capital Gains on Home Sale Posted: 01 May 2021 03:46 PM PDT Trying to estimate potential cap gains on home sale. Selling primary residence plus two adjoining vacant lots.
What's potential exposure on this? I'm aware of 1031, but looking to cash out, invest proceeds, and rent while I figure out my next location. May not have covered all the elements, so happy to add details if needed. [link] [comments]  |
| How do i find a better job? 18yo Posted: 01 May 2021 08:20 PM PDT So, i don't know what to do anymore. My mom doesn't work since 2018 and i started working when i was 17, ever since i've been saving to buy a new computer to study programming but i earn about 25 usd a week that almost all go into food and things to the house. I can buy a modest pc that will get the gob done but i don't want to go broke again. I had problems and i couldn't finish school in time so i'm doing it now but i will finish in 2023 and it gives me really bad anxiety, i don't want to waste all this time. And sorry english isn't my first lenguage. [link] [comments]  |
| Posted: 01 May 2021 01:42 PM PDT So last week or so I received a deposit for $387.45 from "IRS TREAS 310 TAX REF" with no clue about what it could be from. I have already received both my state and federal tax returns, back in early March and the stimulus checks also hit my account very quickly so it kind of baffles me why they'd randomly send me this strange amount of money. I have tried calling them multiple times and was only able to get through to a real person on one occasion, the one person I did speak to said she sees the deposit but was unable to tell me what it was for, only that it was sent from the IRS and that I may receive a letter at some point confirming the deposit. What should I do here? I haven't touched the money as I assume it's a mistake on their end, but I also can't confirm that I need to return it or how I would even go about returning it. Hoping someone that's a little more tax savvy can point me in the right direction. Thanks. [link] [comments]  |
| (US) Medical debt from death of a spouse Posted: 01 May 2021 05:17 PM PDT Hi everyone, please forgive me as I'm a naive college student and not very familiar with these legal processes. My father is about to die in the hospital, and I (my mother and I are his only living relatives) am worried about whether his medical bills will pass on to my mother. My father was the sole earner, and my mother is a housewife with no income. My father has no money in his bank account, but around $100k in his 401k and a small piece of property that is both under his and my mother's name. We sold our house a year ago and there is nothing more to inherit. My mother has around $68k in her personal savings account (from the sold house). My father was working at a company before entering the hospital, and had a generous health insurance plan. But we are still expecting his bills to be very high as he was getting extensive medical treatment in the ICU for about a week now. Do medical debts have access to my mother's inherited 401k, her property, and her personal bank account? My mother is 62 and has been out of work for a long time, and I do not wish for what little is remaining to go down even further. Is she really expected to pay all of this with no income? Since we have many other things to worry about such as Medicaid, Social Security, and withdrawing all of the 401k but not knowing much, is it better to just go talk to a lawyer? Thank you for your help. [link] [comments]  |
| Signing Longer Lease with Intent to Cancel Early Posted: 01 May 2021 12:54 PM PDT Hi, I'm doing an internship outside Seattle (Redmond) and need to rent an apartment for 3 months. Everywhere I look, the price/month for an apartment is around 1k cheaper for a 12 month lease term vs. a 3 month lease term (around $1,500 vs. $2,400) I called one apartment listing, and the woman suggested I do a 12 month lease and then cancel it after 3 months. She said the termination fee would equal to the price of 1 month. So I would essentially be paying for 4 months at the cheaper price and saving about $1,200. I find it really strange that 1) she would suggest this and 2) that more people don't simply do this. Is this a red flag? Do you recommend I go ahead with this, or are there any additional questions I should ask beforehand? Thank you. [link] [comments]  |
| Posted: 01 May 2021 12:18 PM PDT We don't necessarily need the excess funds now, but I want my kids to have a good starting amount for college or housing when they're adults. [link] [comments]  |
| How to Verify Remote Startup Employer Posted: 01 May 2021 01:13 PM PDT How does one verify that an employer is legitimate when it's a fully remote startup enterprise? Would like to confirm before sharing personal data. [link] [comments]  |
| Question on joint tenancy and home purchase Posted: 01 May 2021 03:52 PM PDT So, I live with 2 roommates. They are 57M and 59F. They are married. I'm 25M. We live in Pennsylvania. I'm not related to them. I've lived with them a few years now and we've always rented this large apartment. Now, the landlord told us when we renewed our lease that we only have till this lease runs out in 12 months and he won't renew it again because he wants to sell the building. So my roommates decide they want to buy a house. They want me to go in on it with them. They want to "own" the house they live in and not have to answer to a landlord. I want to use it as an investment. So its a win-win if we can make it work out. If I go in on it, it would be a joint tenancy sort of thing, not tenants-in-common. We all have stable, reliable incomes and are buying a modest house. We all understand how joint tenancy works and they want me to get the house when they die 20 or 30 years from now. I plan to have my lawyer draw up a joint ownership contract and get my name on the deed if we go through with this. I have a few questions before I would jump into something big like this. 1- If they have other debts (i.e. credit cards, car notes, etc.), can a creditor put a lien on the house, or force a sale of the house to cover debt, or hold me responsible for their other debts in any way since we have a jointly held asset? When they die, can the creditors access their equity in the home/leave me responsible for their other loans or would the equity become mine solely? 2- If they have to move into a nursing home at some point is the house safe or can the nursing home take it or force a sale? If yes, would they be able to "sign it over to me" if they knew they were about to enter a nursing home? 3- Would there need to be a note or addendum on the deed to indicate the ownership status as "Joint" rather than "tenants-in-common"? If there's anything else you think I should know, feel free to say it. If you need more info from me in order to give a better answer, let me know. For clarity, the new house is also in PA. For those who note that this deal would be more beneficial to me than to them (since I can reasonably expect to live much longer and would therefore get more use out of the house), they are aware and they say the only thing they want is to never be homeless again and to enjoy their lives and upcoming retirements. Their idea is if we pay it off in 10 years they would then have loads of spending money to enjoy retirement since there's no housing payment anymore, and the mortgage would be less than what we now spend on rent. EDIT: Apparently, they have medical debt. [link] [comments]  |
| Posted: 01 May 2021 05:43 PM PDT Short version, I owned a business with my partner, who was abusive. He hid a lot of debt from me, lied to me about a lot of things. I won't go into details. The result is I have lots of debt, the home I owned burned down, and I don't know what he did with my taxes and the business' taxes. I'm trying to file for bankruptcy but the lawyer I got told me they don't deal with tax issues. I'm trying to figure out what's up with my taxes and the business' taxes, but I lost so much when my home burned down and I ended up living in my car. I can't figure anything out through the IRS website. I have the money to pay lawyers as necessary, but I'm really confused about how to move forward. I'm scared of accidentally making things worse for myself talking to the IRS. I thought the bankruptcy lawyer would help with this, but they don't do anything related to taxes, just the bankruptcy processes for me and the business. Should I find a lawyer who specializes in tax debt? Should I just call the IRS and work it out with an agent? I'm not trying to avoid back taxes or lie or anything, but I'm scared that my partner may have done things that expose me to legal liability (I mean, our home burned down because of his negligence). Thank you so much for any input or guidance. [link] [comments]  |
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