Personal Finance What are the risks of buying an overpriced home right now? |
- What are the risks of buying an overpriced home right now?
- Is 40% contribution to maxout 401k too much at 22 years old?
- New owners with a weird pay scheme
- Should you pay off your mortgage early?
- It looks like it's better to pay for a knee MRI self-pay than with insurance, what's the play here?
- What good is increased home value?
- So I had to go to the ER and have a high medical bill I can’t pay off completely. Is there anything I can do to help me financially?
- The IRS misidentified, is claiming I made way more than I did, and now I owe. What do I do??
- Moving jobs to a HCOL area, should I do it?
- What is settled cash in a Fidelity Roth IRA?
- Mysterious charges on moms checking account?
- Roth IRA and Early Retirement
- What happens to a home loan if you pay it all off within a few weeks/months?
- I (27) have 95k sitting in the bank..
- Looking into purchasing a house near the Bay Area (California), need help analyzing my situation.
- Is 1.2% (Annually) off AUM too much for a financial advisor?
- Wells Fargo Credit Card Payments with Non-WF Account
- Once your credit is hard pulled for a mortgage, can you shop around without a penalty to your credit?
- Concerned About A "Refund"
- 17 y/o with job looking to switch to a credit union for a checking account. In Northern NJ, currently looking at PSFCU
- Investment Selections for HSA
- Cannot get out of the cycle of using my overdraft.
| What are the risks of buying an overpriced home right now? Posted: 28 Aug 2021 04:00 AM PDT I bought my first home in 2017 as a fixer-upper. I spent about 50k modernizing it and about 2 years of my time. It was in a rural area, and I wasn't really prepared for country life, so my wife and I became rather miserable being so far from our families. I sold the home last September at a profit when people were desperate to leave cities and buy rural properties and find a better place to live. Since then I've been living at my in-laws with my wife and daughter waiting for the market to cool down a bit. The inventory of houses has been getting better, but not the prices. The average sell price in our area is around 450k compared to 300k a year earlier. Interest rates are low and I can afford a house up to 600k, but I'm nervous taking out that much money. Do I run the risk of buying a house at an expensive price at a low interest rate, or if I have to move in the future will I be stuck if the market normalizes? What other risks come with buying an expensive house? I doubt waiting will put me in a much better situation either. Am I missing something? [link] [comments]  |
| Is 40% contribution to maxout 401k too much at 22 years old? Posted: 28 Aug 2021 02:15 PM PDT I currently have an entry-level job paying at around $47,000 a year at 22 and living at home with my parents with little expenses and no debt. My employer offers a 50% contribution rate for a 401k for every 6% invested. Would it be a wise decision to offset 40% of my paycheck to maxout the yearly limit for my 401k? I currently have maxed out my Roth IRA at $6,000 and would ideally live at home for a couple of years to save a good amount of money, so rent and other expenses are not really an issue at the moment. [link] [comments]  |
| New owners with a weird pay scheme Posted: 28 Aug 2021 01:12 PM PDT My mom's business was purchased and the new owners want to alter her pay so that she gets $400 less in her paychecks each month, but then gets a check for that amount "from expenses". Is this normal? They're claiming it's "totally legal", which always waves a flag at me, and non-taxable. [link] [comments]  |
| Should you pay off your mortgage early? Posted: 28 Aug 2021 10:58 AM PDT Inspired by a post from yesterday, I made a spreadsheet to analyze the value of paying off your mortgage early versus putting the extra cash in an index fund. Assumptions:
I ran three scenarios:
Conclusions:At the end of year 30, your mortgage is fully paid off in all three cases, but your investment account balance is $162,430 in scenario 1, $304,992 in scenario 2, and $284,205 in scenario 3. The clear winner mathematically is obviously to borrow as much as you can at 2.7% and invest at 7%, but even if you value the free cash flow once your mortgage is paid off (let's say you bought a house at age 45 and want to be mortgage-free at retirement in your 60s), it's still vastly more profitable to invest your extra cash instead of paying down principle, then just pay off the balance when you retire. I linked the graph above, and if anyone can figure out how to share a Google Sheet without having my real name plastered across the top, I'll do it. Otherwise I can plug in a few scenarios on request. Note: Don't get thrown off by the slopes of the graphs. Scenarios 1 and 3 have steeper slopes at the end because you are contributing more money each month at that point. If the lines kept going, you'd see scenario 2 get steeper than the other two at that time and continue to pull further away. [link] [comments]  |
| It looks like it's better to pay for a knee MRI self-pay than with insurance, what's the play here? Posted: 28 Aug 2021 02:33 PM PDT Self-pay is $250-350 whereas with insurance they'll hike the price up to $3000 and try and barter with my insurance company. I don't pay for insurance- it's through work. It's United Healthcare. But my insurance requires a 20% copay from me, so if my knee MRI is $3k I'll end up paying $600. Which I don't need to explain is stupid and beyond fucked- but that's the U.S for you. I just want to have a healthy leg so I can continue doing what I like to do, but is there any alternative to this horseshit? Like it's very frustrating. Appreciate all the responses y'all btw. A lot of useful information. [link] [comments]  |
| What good is increased home value? Posted: 28 Aug 2021 02:34 PM PDT In my area, like many, home prices are drastically rising. I'm fortunate that I bought my home (well, mortgage) well before this climb started. Neighbors have been excited to see their home value increase and I have been following it with great interest as well. However, I'm not sure what practical benefit this is to me, if any. I understand I could borrow against equity, but I don't want more debt. I could sell my house for a profit, but then I would need much more money to 'upgrade.' I guess my property taxes will actually go up, which is negative, obviously. Should I be glad my home value is climbing? Why? Thanks! -someone who's trying to not fuck up 'adulting.' [link] [comments]  |
| Posted: 28 Aug 2021 06:49 PM PDT I had to go to the ER due to being allergic to a medication the doctor prescribed me. Was in there for two days about a month ago and just received the bill for the visit and it's insane. I have no idea how i'm going to pay the bill off and am already getting emails from the hospital about how late it is. I've payed what i can but they want a minimum of $600 monthly or it's going to the collectors agency. The worst part is i JUST STARTED getting my credit score back up and this is probably going to ruin it again. Any advice? (I live in America with shitty insurance) [link] [comments]  |
| The IRS misidentified, is claiming I made way more than I did, and now I owe. What do I do?? Posted: 28 Aug 2021 11:34 AM PDT I don't frequent this place much so I'm sorry if I'm doing something wrong. Let me know. I got a letter from the IRS yesterday saying I owe a not insignificant sum of money for my federal income taxes for 2020. I completed my H&R block taxes and they said I should expect close to $2,000 as a return. I went to the IRS website and on there it says:
This is all wrong, and I made significantly lower than 75k (much less 150k) and have a single income family. The only person that could "exceed the age limit" is my kid who's under 10 years old. I did double check my form and the names and SSNs of all people are correct. Obviously I'm a bit floored. I know I can get ahold of both HRBlock and the IRS, but I was wondering if there's anything I should know/do before or during those interactions. EDIT: So it seems the IRS just lists all these when there's an error on line 30 that states how much I received in stimulus payments. I don't know for sure yet, but I don't think I made a mistake, and if I did it couldn't have been thousands of dollars... EDIT2: Thanks for everyone's responses (especially u/Its-a-write-off) ! I think I get it now. It appears that line 30 was supposed to be how much I have not received in stimulus and I'm pretty sure I put how much I received. I'm pretty sure (though not 100%) that I'm still being asked to overpay, but I'll doublecheck. And just to clarify, the bullet points listed above are apparently BS. [link] [comments]  |
| Moving jobs to a HCOL area, should I do it? Posted: 28 Aug 2021 04:33 PM PDT Hi everyone, I'll preface with some background. Currently working in a MCOL city and making $60k with a very small bonus. (Buffalo) in risk Have an offer to move to a HCOL area (Boston) for $90k plus 8% bonus in valuation related work. I have no debt and a good chunk of savings for my age plus emergency fund. I am new in my career (Finance) and was curious if anybody has been in this situation before. Is it worth it for me to switch in this scenario? [link] [comments]  |
| What is settled cash in a Fidelity Roth IRA? Posted: 28 Aug 2021 03:58 PM PDT I tried to be responsible and open a Roth IRA and put $500 in it. I thought it would automatically invest my money but it's been a few months and I still have $500. When on the app it says I have $500 in SPAXX and it's saying the $500 is in settle cash? Can someone please help me and thank you Edit: thank you all so much for your help! Problem has been solved and I learned everyone is super nice [link] [comments]  |
| Mysterious charges on moms checking account? Posted: 28 Aug 2021 05:05 PM PDT So my moms account has some charges she doesn't recognize. Both for the same amount. One says "ketosys" and one says "dynamicketohealthcom" in them. We can't find any emails she has with orders by those site names. She's the type to buy something and not remember BUT she's not the type to buy random keto stuff. And if that was the case I'm not sure why she wouldn't have any emails. Is it possible they're both from a charge by something under a totally different face and if so how do we find out where it came from? Is it possible the recent Verizon or other breach took her card info? [link] [comments]  |
| Posted: 28 Aug 2021 07:24 PM PDT Hey everyone, slowing learning my way around personal finance and the FIRE movement, so please excuse me if this seems like an elementary question. If your goal is to FIRE, is there any reason to contribute to a Roth IRA directly? I understand the tax advantages of rolling a 401k or Traditional IRA over to a Roth because they become 'contributions' and are therefor able to be withdrawn without penalty. I also understand the Roth Ladder Conversion technique. But contributing directly to a Roth straight from your paycheck? It seems like it doesn't have any advantages over simply utilizing a normal brokerage account for yourself. In fact, since early 'earnings' withdrawal is taxed under income tax brackets, rather than LTCG taxes as it would be with my brokerage, isn't this a distinct disadvantage? [link] [comments]  |
| What happens to a home loan if you pay it all off within a few weeks/months? Posted: 28 Aug 2021 05:28 PM PDT Here's my situation: I live in California right now and own a house. During covid, our house has gone up in value quite a lot. We want to sell and move to another state where housing is much cheaper. Our goal is to buy cash for the new house and get out from under a mortgage. But the way things are looking, we probably won't be able to sell this house before we can buy the new one we want. We have to move immediately into the new house, which means getting the home-buying process started now, which means we won't have the profits from selling this house to buy cash like we wanted. So we will likely need to get a mortgage if we want that particular house. But what if after we buy this new house with a mortgage, that we sell our current house within a few weeks and can afford to pay off the entire new house's mortgage? What happens to the interest? Do we end up paying way more than we need to that way? Do we get penalized in any way? Is this a bad idea? Thank you!! Sorry if this is a dumb question, I'm still pretty new to home ownership and trying to wrap my head around all this. [link] [comments]  |
| I (27) have 95k sitting in the bank.. Posted: 28 Aug 2021 01:39 PM PDT I've been saving to buy a home since graduating college and I am feeling myself being priced out of my local housing market while saving. I have been coming to grips with the idea that a home purchase may not be in my immediate future and am looking for options / ideas to put my money to work. I have roughly 25k in 401k assets but otherwise a novice when it comes to investing. I'd say I am risk adverse, but I know I need to get over my fears and put my assets to work instead of losing money sitting in savings. Not sure how relevant it is, but when it comes to income/expenses, I am currently making ~4k a month, and have around 1k in expenses. No debt, car is paid off. Not married and don't have kids. All thoughts and insights are hugely appreciated. [link] [comments]  |
| Looking into purchasing a house near the Bay Area (California), need help analyzing my situation. Posted: 28 Aug 2021 03:56 PM PDT Hi everyone. Sorry about the long post and throw away, but I'm looking into purchasing a home in December near the Bay Area (California) to start a family and wanted to do my homework before going out and getting serious about looking. Can't go anywhere else because family is located close by here. I've been browsing Zillow for properties and their estimated monthly payments, but I'm wondering if there's other pitfalls / fees I should be worried about. I was wondering if you guys could help break down my situation, if it's even feasible, or propose other budgets. My situation:
My partner (unmarried):
No kids -yet-. I have a total of 200k for a down payment ready on the side. I picked a random property in Gilroy for 900k since I -think- that's the highest I'm able to support. Zillow's estimated monthly payment is around 3.7k a month (including property taxes + home insurance) with a down payment of ~170k ish @ 20% with a 30 yr 2.7% fixed interest rate. If the monthly payment is accurate, that means at a combined take home pay of ~7.2k a month would leave us with only ~1.7k take home pay for each person. We live pretty frugally, so I think that allows us to be somewhat comfortable. Anyways, with that said, is there any other fees I might be missing? Should I rent out to someone while we live there make this more feasible? Can I even afford this / pre approved for this? Let me know all your thoughts and ideas! Thanks in advanced! - Edit - So, quick recap about some of the suggestions, advice, and take away I've gotten from here:
I mean, the overwhelming consensus is not to do it. Which leads me to figure out what I can do to accomplish something like a home purchase:
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| Is 1.2% (Annually) off AUM too much for a financial advisor? Posted: 28 Aug 2021 08:14 AM PDT Of* not off*, not sure why titles can't be edited. I plan on investing for the long haul, setting it and forgetting it. I had a wealth management firm open up a Roth IRA and a taxable account for me, since I want to put in more annually than the Roth IRA limit. I know, most people I'm sure will say it's not necessary/dumb etc. I just have no clue what I'm doing. So at the time, seemed like a logical decision. I wanted something more than just putting it all in the S and P 1500, I guess you could say. The place I went to has fantastic reviews, to the point where it's hard to ignore. Millions and millions under management etc, why do people go to these places and lots never would? Anyway, so far so good, they were really easy to deal with. I have several things they invested in, for my risk tolerance, I have 80% stocks and almost 20% bonds, then the rest is cash in the taxable account. The concerns I have are, I know the fees add up over time, but if they're better at what they do than me, is the fee "worth" it? I wouldn't know what to do otherwise. (/s) Everyone online is an expert, know what I mean? [link] [comments]  |
| Wells Fargo Credit Card Payments with Non-WF Account Posted: 28 Aug 2021 06:20 PM PDT I have been paying my new Wells Fargo credit card with an external bank account. I just got a message stating I have exceeded the "daily or monthly" dollar amount limit of payments from non-Wells Fargo accounts. I have never had this issue in my life. Does anyone know what the limit is or know if it's a calendar month or billing cycle that they are going off of? [link] [comments]  |
| Posted: 28 Aug 2021 05:56 PM PDT If a lender does a hard pull on your credit for a pre-qualification on a mortgage, can you shop around to other lenders within 30 days of the initial inquiry without penalty to your credit? I think I remember reading that if the pulls are tightly grouped enough, and for the same thing, then additional inquiries do not count against you. Is this true? [link] [comments]  |
| Posted: 28 Aug 2021 05:50 PM PDT I just received a hefty "refund" in the form of a direct deposit titled "UHC Refund". I took this to be from United Health Care, who I did have health insurance with through my university untill almost exactly 12 months ago. However, I have no idea why I would receive this refund, why it would be in the form of direct deposit, and why I am receiving it 1 year after the fact. Could this be some sort of scam? Of course I am happy to receive it if it is warranted but I am just caught off guard by the whole thing. Does anyone have any advice or know anything about this? [link] [comments]  |
| Posted: 28 Aug 2021 07:38 PM PDT I am considering the Polish Slavic Credit Union because they seem to offer some reasonable benefits, have an ATM network that is pervasive near me, and also because they are the only credit union I have heard of before. I don't know much about how to gauge the health of a financial institution, or what good rates are for loans and the like, so I am here for help. Anyone in the NY-NJ area have any experience with this CU? Any other good alternatives in that area? I am looking for a local CU with actual branches BTW. Thanks [link] [comments]  |
| Posted: 28 Aug 2021 01:33 PM PDT Hi everyone, I was able to get a HSA at a new job I started in March and my next check contribution will put me at the $2k threshold it requires before I can invest any money and so wanted to see if the selections I have are good, but also the percentage towards each fund. I am 30 y/o just FYI and have it set to the amount it would take to max out ($276.92 every 2 weeks). I just want to make sure I don't have too much/any overlap or if I should adjust my percentages some. VFIAX - 82% Edit: I guess it might good to post the funds available in case there are better selections I could make: AMERICAN FUNDS BALANCED FND R6 AMER FUNDS CAPITAL INC BLDR R6 DFA US LARGE CAP VALUE PORT I VANGUARD 500 INDEX ADMIRAL AMERICAN GROWTH FND OF AMER R6 VANGUARD MID CAP INDEX INST JPMORGAN MARKET EXP ENH IDX R6 NEUBERGER BERMAN MID CAP GR I VANGUARD SMALL CAP INDEX INST VANGUARD SMALL CP GROWTH IDX I NORTHERN SMALL CAP VALUE VANGUARD TOTAL INTL STK IDX I AMERICAN EUROPACIFIC GROWTH R6 FIDELITY ADV DIVRSFD INTL I VANGUARD EMG MKTS STK IDX INTL VANGUARD TOTAL WORLD STK IDX I LOOMIS SAYLES GLOBAL ALLOC N VANGUARD RETIREMENT 2020 INV VANGUARD RETIREMENT 2030 INV VANGUARD RETIREMENT 2040 INV VANGUARD RETIREMENT 2050 INV VANGUARD RETIREMENT 2060 INV VANGUARD TGT RETIREMNT INC INV NUVEEN REALESTATE SECURITIES I PIMCO INTL BOND USD-HDGD INSTL LORD ABBETT HIGH YIELD I VAN INFLATION PROTECTED SEC AD VANGUARD INTERM TERM BND IDX I PIMCO TOTAL RETURN INST VANGUARD TOTAL BOND MRKT IDX I [link] [comments]  |
| Cannot get out of the cycle of using my overdraft. Posted: 28 Aug 2021 03:10 PM PDT So I had some mental health and untreated adhd issues for a long time which lead to a lot of uncontrolled spending. Luckily I used to live with my parents for the majority of my education so I never got into debt as such. Then I moved in with my SO and obviously began to contribute but my spending would always catch up with me. Then I'd get a hold of myself and for two months or so I'd be "good" and have some cash left over each month. Then we desperately needed to rent a car and I was the only one with a credit, not debit, card….and it began. I racked up £3k in credit card debt on just…things and then I would still consistently overspend every month and use up my OD. My OD used to be £1k but last year I got it down to £600 but I use almost all of it each month. Because of this, even when I budget for my bills etc one month in line with my salary, I'm back in my overdraft by the time they are paid because I owed the bank money in the first place. I eventually got a debt consolidation loan as the interest was better than my credit cards but having this big loan looming over me makes me sick My income is £1907 pm Necessary Outgoings £530 mortgage £550 bills, insurance, food £85 payment plan for new bed after ours broke (only 6 months left) £45 phone £111 loan repayment "Fun" outgoings £9.99 Netflix £16.99 Spotify £7.99 Amazon prime Then there is the overdraft. I'm not currently in it but before payday (yesterday) I was by £600. So really I had £1300 of my salary available I just need some insight on the steps someone took to crawl out of this cycle. My partner earns almost double me and can't understand how I have so little left but it's all the stupid small purchases I make like popping into the nearest shop or a coffee. I'm so ashamed of getting here. We have a baby due soon and I feel like a massive burden [link] [comments]  |
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