Personal Finance 30-Day Challenge #11: Audit your insurance coverage! (November, 2021) |
- 30-Day Challenge #11: Audit your insurance coverage! (November, 2021)
- Weekday Help and Victory Thread for the week of November 01, 2021
- Why does the stock market close?
- Second job $$ burnout
- YNAB Alternative
- CapitalOne is the most incompetent bank in existence
- How much do I need to make to afford a $25-30K car?
- Dealership offer to buy my leased vehicle for more than payoff
- Rear-ended while at a full stop in a vehicle I’m supposed to be trading in at the end of the month
- Can't decide between two job offers
- Townhouse I'm renting was bought new owner is out of the country and texted for us to pay our rent to a Wells Fargo bank account.
- I Bond as an emergency fund. Here me out.
- Tried to refinance car, told no because of unknown delinquency
- If setting up a budget is overwhelming, and is a major roadblock, start with this.
- Leaving Second Job?
- Proof of stock ownership in case of a disaster
- What kind of professional am I looking for?
- Why you should consider adding Series I and EE bonds to the fixed-income portion of your long-term investment portfolio
- Turning down a MASSIVE raise - would I be crazy?
- Can I pay part of 2012 fed and state tax before end of 2021?
- Buying a New House - Is Downpayment Guidance Outdated?
- got cash...which student loans payoffs to prioritize?
- Pay off vehicle or put money into mutual funds
- Is it really possible to retire at 58?
- This is my first year hitting the phase out range for a Roth IRA and I’m not sure how to go about it
- Mortgage down payment options
- How do i get better at saving money?
| 30-Day Challenge #11: Audit your insurance coverage! (November, 2021) Posted: 01 Nov 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 Audit your insurance coverage! How long has it been since you examined your coverage or gotten a quote from another company to look for cheaper insurance? As your life evolves, it's important to make sure you update your insurance coverage as well. This is also a good way to save some money if you can find a better deal for insurance elsewhere or if you find yourself overinsured in some specific area. Why insurance?Insurance is an approach to handle the problem of risk. Most likely, during your life, one or more of these things will happen: you will be in a vehicle accident, you or someone close to you will experience serious illness or injury, or you will lose your job. Positive events have associated risk as well: ask anyone who has had a child, puppy, house, or marriage. You can choose to retain each of those risks: decide that if the bad thing happens, you can afford to pay for it, to self-insure. For example, if you lose a laptop, you can buy another one. You can also reduce the risk, say, by not driving on icy streets or by having chains on your tires. The other ways to deal with risk are to avoid it (don't buy a puppy) or transfer it (insurance!). Most of us don't think about risk until the bad thing happens. We are in a vehicle crash with an expensive car, someone is injured, and only then it dawns on us that we might be underinsured. For many major risks, most people share the risk with an insurance company through various insurance products. If you own a vehicle, most likely you will be required by your state to have liability coverage (personal injuries and property damage caused by you). If you have a mortgage, your mortgage holder will require you to have homeowners insurance and some landlords will require renters insurance. Other types of insurance are optional, but may be desirable if available, for example, disability insurance. Audit your insurance coverageTake a minute to think about what insurance coverage you currently have, whether you may be paying too much, and whether your coverage limits are appropriate:
Although insurance is an important financial tool to protect you against emergencies, it can also be a major drain on your budget. Insurance agents often use the fact that some insurance is important to make you feel that the more insurance you have, the better off you are. It's wise to only insure what you need to insure. What do you need to insure? Anything that you could not easily afford to replace with your cash savings or where the loss would significantly set you back financially. In the next 30 days, review not only the types of insurance you have, but the level of coverage you have in each type. Here are some ideas for various types of insurance: Car InsuranceAssess all the types of coverage you have on your car. See the wiki article on car insurance for more details and ways to save money. For example, if you drive less than 10,000 miles per year, call your insurance company and see if they provide a low-mileage discount. Liability insurance is required by law if you drive and is very important: Would you be able to pay out a $300,000 lawsuit if you injure someone in a car accident? Liability insurance is not a great place to skimp. Coverages for "uninsured motorists" (an uninsured or underinsured driver injures you or your passengers) and "medical payments" (you or your passengers are injured in an auto accident) are also worth having. They are less expensive than liability coverage and the irresponsibility of others is a major risk. Also consider whether your "collision" and "comprehensive" deductibles coverage is appropriate or necessary, especially if you have an older car or significant savings. Eliminating or reducing these types of coverage can reduce your insurance bill, but you'll be left on the hook to replace or repair your own car if you (or mother nature) damage it. Finally, when you see car insurance advertisements selling you "better car replacement" or "one model year newer" insurance, realize that this is a great deal for the insurer and not as great for their customers. Buying these policies mean that you're paying for a piece of a newer car every single month even though the odds of taking advantage of these policies are relatively low. Health / Vision / Dental InsuranceIn the U.S., some form of catastrophic health insurance is vital for nearly everyone, as a week in an intensive care unit is enough to bankrupt all but the wealthiest. However, consider your expected use of healthcare services. If you are young and healthy, you may not need to fork over the extra dough for a Gold plan with lots of coverage. See the wiki article on health insurance for more details. Life InsuranceRemember the principle of insurance? "Only insure what you couldn't afford to lose." If you have children or a spouse that would be unable to maintain their standard of living without your income, then you may need to insure your earning ability. That means you take out a term life insurance policy that pays your spouse and/or dependents in the event that you die and can no longer earn money to provide for them. However, if you don't have dependents or if your spouse can earn enough money on their own to provide for themselves, you might not need life insurance at all. It's also important for you to understand that there are two basic kinds of life insurance: term life insurance and permanent life insurance (like whole life or universal life). With term life insurance, you pay to cover your loved ones from the risk of your death. With whole life insurance, a portion of your cost goes to coverage, but it also has a cash value component that grows over time similar to an investment account. While there may be some exceptions for the very wealthy, term life insurance tends to be the best choice for the vast majority of individuals. Read our wiki article on life insurance for a deeper discussion. Homeowners / Renters InsuranceInsurance on your residence is important for almost everyone who owns or rents a home. Owning a house without insurance could be disastrous if it burnt down, because you likely have a mortgage on it and probably don't have $250k cash to replace it. However, it may be worth checking how large your deductible is. If it's only $1,500, you might be able to afford more than that in an emergency. If appropriate, you can increase your deductible to reduce your costs. Note that homeowners deductibles are per incident, though. See the wiki article on homeowners insurance for more details. Renters insurance policies also tend to be very cheap (roughly $15 per month for $30,000 of property coverage and $100,000 of liability coverage). Finally, make sure you have an up-to-date inventory of your property so any claims will be easier to make. An easy way to do this is taking a video on your phone as you walk through your home, naming everything as you walk through. Note the make and models of anything expensive like electronics. (Make an offsite or cloud copy of the video too!) Jewelry InsuranceMost single-issue insurance policies tend to be poor deals for consumers. Opinions vary on jewelry insurance, but the default assumption of most people is to carry insurance on an engagement ring is more a product of the jewelry marketing machine than actual need. A few factors make jewelry insurance less necessary than other types of insurance:
Another way to save moneyOne thing to consider when reviewing your coverage is that sometimes companies offer discounts for having multiple accounts with them (e.g., a multi-policy discount or "bundling"). When you call your insurance company, ask them about these discounts. For some insurers like USAA, you can even get a discount for adding non-insurance accounts like a savings account. A note on emergency fundsFollowing "How to handle $", an emergency fund of cash equal to 3 to 6 months' worth of routine expenses is recommended. If you have no collision coverage on your car and rely on it to get to work, and/or a very high deductible on your home insurance ($10k), seriously consider the size of your emergency fund, and whether it is enough to get you through a "double-whammy" such as job loss and a car accident at the same time. Notes on other types of insuranceThe bare minimum for most people is car insurance (if they drive), health insurance, term life insurance (if others depend on their income), and homeowners/renters insurance. However, there are several additional types of insurance that some people may want to consider. In particular:
Challenge success criteriaYou've successfully completed this challenge once you've done two or more of the following things:
Disclaimer: This post is a prompt to review your insurance coverage. Similar to the reddit user agreement, we take no responsibility for any decisions you make based on something you read on reddit. [link] [comments]  |
| Weekday Help and Victory Thread for the week of November 01, 2021 Posted: 01 Nov 2021 04:00 AM PDT If you need help, please check the PF Wiki to see if your question might be answered there.This thread is for personal finance questions, discussions, and sharing your success stories:
A big thank you to the many PFers who take time to answer other people's questions! [link] [comments]  |
| Why does the stock market close? Posted: 01 Nov 2021 07:06 AM PDT I never understood why in today's modern world the NYSE has physical hours of operation, like 5 days a week 8 hours a day. Where as in the modern world even online auction sites like eBay have 24 hours of operation. Realistically it's not like business/stock rumors magically stop at 5pm. [link] [comments]  |
| Posted: 01 Nov 2021 08:08 AM PDT I picked up a 2nd job part time around 3 months ago to make some extra $ to save and now have around 3k saved up now + an emergency fund. This is great as I'm trying to have enough for a down payment on a home within 5yrs Problem is I'm so extremely exhausted from working the 2nd job and I feel so mentally fucked. I can only manage around 4hrs sleep during the week and I'm working 14 hr days. Is this sustainable for a few years and I need to just suck it up? Or is the burnout inevitable 25yr old male with 1 yr old baby [link] [comments]  |
| Posted: 01 Nov 2021 10:22 AM PDT Hi everyone, thanks for checking my post. I am simply looking for a very close alternative to YNAB. I just saw an announcement they are doubling their yearly cost, and I am in need of an alternative app/program that is the same previous cost ($50/yr) or less. It's not so much that I can't afford it, it's the principle. I'm sure I will get downvotes for that, bring it on. Also if you could bring on answers for my question, that works just as well. Edit: this blew up beyond my expectations. I wanted to thank everyone for commenting, pitching ideas, and telling me I'm wrong. [link] [comments]  |
| CapitalOne is the most incompetent bank in existence Posted: 01 Nov 2021 04:20 PM PDT My god I'm tired of dealing with these clowns. Three years ago we closed a home sale and received a check for the proceeds. CapitalOne repeatedly refused to deposit the check because it had both my and my wife's name on it. It took weeks of work with them and a trip into the city to meet up with a finance person to get this check cashed. Even doing this the check was returned to use twice by mail. We finally did get it in, after a very tense month where my money was in limbo holding up real estate transactions. Fast forward to now, and I have an insurance check for a claim to replace our roof. Again, rejected. I called them again, and the agent on the phone basically told me because the mortgage holder is also on the check, they wouldn't deposit it (the mortgage holder had endorsed the check). Their advice? Open an account at another bank. CAPITALONE LITERALLY TOLD ME TO MOVE MY ACCOUNT SOMEWHERE ELSE. I can't be the only person in the whole world who has insurance claims with the mortgage company on them? I know this because both my insurance company and my mortgage company had a process for handling this. Yet, apparently to CapitalOne this somehow is apostasy. YOU HAVE ONE JOB CAPITALONE. ONE JOB. TO TAKE AND HOLD MONEY. WHY IS THIS SO HARD FOR YOU? WHY ARE YOU SO INEPT? [link] [comments]  |
| How much do I need to make to afford a $25-30K car? Posted: 01 Nov 2021 07:02 PM PDT Hello, So, this is kind of question for the near future but I wanna start thinking and preparing for it now. I'm 21 years old and recently got my real estate license. I'm currently on temporary assignments through a staffing agency with new home builders/sites. I'm looking at a $40-60K base salary when I get officially signed on to work with a builder on top of a projected $20-30K a year in commissions. I currently have about $20,000 in savings and still live at home and plan to for the next 2 years. I have no bills besides gas which I use my credit card for to slowly build credit (I have baby credit with a score in the 700s). My current car is paid off and has a KBB trade in value of $8000. So, my question is will I be able to afford a used car that's $25-30K? My plan would be to trade in my car and put $10,000 down. Ideally get a 48 month loan but open to 60. Based on that information above I have found my payment could be around $300/month. Any thoughts on this? I know a car shouldn't be a top priority I've just had the same 2017 Nissan Versa for 4 years and am excited for an upgrade. Thanks! Edit: This is an awesome subreddit I am very glad I posted here! Thank you to every single person who has commented, you all have given me really solid advice. I'm trying to respond to everyone but if I don't just know I'm thankful you took the time to help me out and provide some invaluable insight! Considering every single comment and have learned a lot! [link] [comments]  |
| Dealership offer to buy my leased vehicle for more than payoff Posted: 01 Nov 2021 02:42 PM PDT I had my 2020 Buick Encore in for service at the dealership where I purchased it. A few days later I got a text from someone at the dealership offering me $24K for the vehicle. Payoff is $22,600. I'm in month 20 of 39 on the lease. I've had the vehicle since Feb 2020 and it only has 7900 miles on it. I'm sure there's a catch. I'd love to get a smaller, less expensive vehicle with lower monthly payments. But ... What am I missing? Are they just luring me back into the dealership to put me in a new vehicle with another lease? [link] [comments]  |
| Rear-ended while at a full stop in a vehicle I’m supposed to be trading in at the end of the month Posted: 01 Nov 2021 09:18 AM PDT My husband was rear-ended in my 2018 CRV while he was at a full stop. He said the car that hit him was going pretty fast for a 25mph speed limit during morning traffic through a downtown area. Luckily my husband is physically OK. The back bumper is slightly disconnected and there are a handful of dents. After the police showed up and did their report, he drove to work. On the way to work, the infotainment system stopped working, but when he shut the car off and turned it back on, it began working. We are supposed to be trading this vehicle in later this month/early December. I've already put a deposit down on the new vehicle (a van that's been in high demand so I had to order in advance) and have documents showing that they were offering me 24k for the CRV, as long as everything was still in the same working order. I've contacted our insurance who said the at fault driver was required to claim and so if we didn't hear from their insurance by tomorrow, to call them back. I'm worried now that I'm not going to get as much trade in for the vehicle. I'm also worried that more significant damage was done than just the bumper since the infotainment system stopped working (hasn't ever happened before), even if it's working fine now. My insurance said to make sure we noted the infotainment system to the adjuster. Any advice on what else we should do? [link] [comments]  |
| Can't decide between two job offers Posted: 01 Nov 2021 02:42 PM PDT For context, I am 25 yrs old. I am an InfoSec Engineer in a big city in the East US. I have been working at an F500 company for over 2 years and have been interviewing around to see what's out there. I never thought I would be in the position I am in now. I have received two job offers and I am having a hell of a time trying to choose between them.
This company has a mission statement I believe in and would feel proud supporting (green energy). I feel like helping bring a company from private to public will be a valuable addition to my resume as well as set me up for early financial independence (I really aim to retire early - Lean FIRE). Company 1 is building out its InfoSec team and is serious about recruiting good talent. The VP I will report to starts one week before I do if that shows how new the team will be. It will be great to get in on the ground floor and see the team grow. However, the workload, in the beginning, might be overwhelming and I am worried I am being set up to fail. On top of that, I am concerned if I accept this salary I will price myself out of the market I live in; which would be a concern if I choose to leave.
This offer is only a $15k + bonus raise from my current situation, will require me to move to a nicer area (more rent/expenses). However, the company culture was appealing and the gut feeling I got while speaking to future coworkers/managers/leadership made me believe I will genuinely like working there. FAANG companies recruit heavily from Company 2. I have evidence that the workload is not overwhelming and work/life balance is sustainable. On paper, this should be a no-brainer. I would almost double my salary with Company 1! They are offering so many incentives; both financial and otherwise. But I was so impressed with the team from Company 2. I spoke with the recruiter of Company 2 and he was floored at how many hoops senior leadership was jumping through to try and land me. I had a call with the C-level who will lead my organization and I have maxed out the offer ranges from both companies. I feel like the prettiest belle at the ball, but at the same time it is tearing me up inside. I guess I am looking at someone who has experience making this choice and what lead their decision, as well as how it turned out for them. Any regrets? Any advice? Oh, and I have to decide by tomorrow. [link] [comments]  |
| Posted: 01 Nov 2021 01:40 PM PDT EDIT: I've gotten some great feedback and someone who has had a similar situation where they deposited into someone's account so I'm feeling much better about this. To the one person who told me I was trying to tell the landlord what to do... Not cool. To everyone else thank you for your help and feedback. I'm going to bed y'all have a nice night. I'm honestly not sure if this is the right place for this but I'm concerned so trying to figure it out. I live in Florida I am currently under my previous landlords lease which ends in May the property was bought last month the previous landlord reached out to us gave us the contact information for the new landlord which is just a phone number. We called it went to voicemail so we left a voicemail and also texted saying hi this is your tenant. he replied in a text message that he was out of country and gave us account information at a Wells Fargo for us to pay this month's rent November. How would I go about making sure it's documented that I did pay besides what I normally do which is a cashier's check from my bank to the landlord. Is there a way I can get her a seat from Wells Fargo for this? Is this a scam? I'm just a little lost. [link] [comments]  |
| I Bond as an emergency fund. Here me out. Posted: 01 Nov 2021 06:43 PM PDT I am considering buying I Bonds as part of my emergency fund because of the much higher return than my HYSA. I know the answer to this is always no because you cannot sell an I bond during the first year, but I currently have double what I feel is a solid emergency fund sitting in the HYSA doing almost nothing. I would like to use half of that to buy I Bonds and keep the other half in the HYSA as my emergency fund for the next year. Then in a year, when I could theoretically cash in the I Bonds if needed, I can mostly empty the HYSA. Then the majority of my emergency fund would be actually earning something instead of earning nothing. Is this a decent idea? Perhaps I should only do a quarter instead of half? What is your opinion? The biggest downside I see is holding double my emergency fund for the next year instead of adding that cash to my taxable brokerage a year earlier. There is definetly an opportunity cost there if the market keeps going gangbusters. [link] [comments]  |
| Tried to refinance car, told no because of unknown delinquency Posted: 01 Nov 2021 02:52 PM PDT I tried refinancing my car today, unbeknownst to me, ended up finding out there was a delinquency of 7 missed payments of my old car on my account. I had gotten a new car due to it being totaled and my step father was in charge of paying it off, he didn't and now I am screwed with a 560 credit score. I don't have the money at the moment to pay off 7 months of car payments, how do I deal with this? [link] [comments]  |
| If setting up a budget is overwhelming, and is a major roadblock, start with this. Posted: 01 Nov 2021 03:38 PM PDT If the thought of setting up a budget is overwhelming (track every single expense for months, categorize every purchase, set up "envelopes" for every category, nail down to the Penny exactly where all your money is going etc etc etc), I have a suggestion that is quick (takes maybe an hour to set up and then you can automate it) and this solution will get you about 90% to where you need to be. Remember, this method is to eliminate or reduce the stress of worrying over every Penny. It will ensure you cover the big stuff and then you can focus on the remainder. Total up all your expenses that you know you will have to pay during the year. Some of them are every month, some every 6 months, some once a year etc. Here are some examples Rent/mortgage Car payment Student loans Utilities (gas, electricity, water etc) Home insurance Car insurance You get the idea. This is a list of everything you know is coming. Figure out how much you need to set aside, per paycheck, to cover those expenses during the year. For example Electricity, averaged across the year, is $100/month. You get paid twice a month so you set aside $50 every paycheck. Car insurance, $500 every 6 months. $1000 every year. You get paid every 2 weeks so 26 paychecks a year. $1000 divided by 26 is $38.46 per paycheck. Make this calculation for every known expense you know is coming. Total it up and that is the amount you need to set aside every paycheck into a separate checking account you don't touch, except for these known expenses. Make this transfer every paycheck and it will ensure you always have the money to cover all of these bills. You're never left scrambling to cover a heating bill or late to make a car payment. The money is right there, when you need it. Then you can take a look at whatever is left from your paycheck after making that transfer to determine how best to spend it. But at least you got the basics covered and it now takes essentially no time to budget and you don't have to track any of those expenses or spend mental bandwidth accounting for that money. It all collects in one account and that's it. [link] [comments]  |
| Posted: 01 Nov 2021 07:08 PM PDT I work a day job from 7:30am - 5:30pm, M-F, and I love it, but it doesn't pay that well- only enough to cover rent, health insurance, most bills (except childcare), and some groceries, nothing else. I also work a second, night job that is an hour commute each way, so counting the drive, I also work from 9pm - 2:45am, Sun - Thurs. The night job pays slightly more than my day job, but since it's only PT, I only earn enough from it to cover childcare expenses and gas money. I'm a single parent to two kids and a full-time grad student too. I get two hours of sleep most nights and I've been working this schedule for two years, so the sleep deprivation is really accumulating. It's nearly impossible to get anything done outside of my assignments and work. My home is always a mess, I never have time for anything "fun" like watching TV or seeing friends, etc. I live in a very wealthy area where the "average" family income is triple or quadruple what I earn as a single parent. I keep thinking about applying for childcare assistance. If I were to quit my second job, I should easily qualify for childcare, Medicaid, and possibly food stamps too. (Actually, I might qualify for childcare assistance even with the second job and then I could just save that money.) But, it's nerve-wracking. I have zero debt, other than the student loans I'm acquiring as a current student, and I currently have $5,000 in savings. What if an emergency comes up? I'm scared to lose the second source of income, especially since my night job offers regular opportunities to work more hours in case I need to earn more money. However, lately it's been a struggle not to fall asleep while driving to or from work late at night, it SUCKS commuting one hour, I don't have enough time to spend on grad school work or with my kids, etc. I've been trying so hard to stick it out, but each day I feel like my health is suffering from working almost 16 hours a day. Does it sound reasonable to apply for assistance until I graduate with my Master's, only because I don't think I can find a better-paying day job at this time? Also, I've cut all expenses down to bare minimum as much as I possibly can; I have the cheapest possible phone and Internet, no cable, usually have cheap utilities, etc. And I already have the least expensive childcare and apartment you can find in this area. [link] [comments]  |
| Proof of stock ownership in case of a disaster Posted: 01 Nov 2021 10:46 AM PDT Imagine that Charles Schwab, my 401k broker, is hit with a devastating cyber attack. All of their records, including their backups, are corrupted or destroyed. They go out of business as a result. Legally, I still own all the stocks, bonds, and mutual funds that were in my 401k. But how would I prove ownership in this case? The method by which I would normally prove ownership (their website) is gone. How could I prepare for such a disaster? [link] [comments]  |
| What kind of professional am I looking for? Posted: 01 Nov 2021 08:39 PM PDT I need assistance in making sense of my taxes and making recommendations on how to handle them - I am sure I am paying too much in taxes. I could also use some additional advice on how to handle my debts and the best steps in addressing them... [link] [comments]  |
| Posted: 01 Nov 2021 08:28 PM PDT I wrote a post about these bonds five years ago and they have never seemed more relevant. With low yields on bonds and savings accounts, these Treasury-issued options are especially relevant. You can buy 10K each per year of these bonds (so that's 20K I + EE per year). That limit is higher than some people need, lower than others want, but quite a lot of money per year you can put toward them if you want to in taxable (non-retirement) space. 1) Series I Bonds: These will track inflation and can be held from 1 to 30 years. Sometimes they offer a bit extra (a fixed rate on top of inflation), but that's moot given that TIPS have negative yields. So they are a lot like TIPS, but more flexible, offer tax deferral, are immune to interest rate risk, and: they pay more. These are a great deal IMHO. 2) Series EE Bonds: Don't be fooled by the low 'rate' on them - the key is that they double in value after 20 years, which is the equivalent of a 3.5% annual return. If that sounds low to you, check out what 20-year Treasuries are yielding. Plus if yields do go up, you can cash them out early, and invest in higher-yielding bonds. The catches are few but to be complete: (A) you need to create a TreasuryDirect account, which means you have one more account to manage, and (B) you can only buy them in taxable, which may not make them ideal for people who are unable to invest beyond their tax-advantaged (retirement) accounts, then (C) they have some liquidity issues in terms of the one-year lock-up period, and not getting the EE doubling if you cash in early, but yields are so low right now that if they do go up and you do cash these out early you're not going to miss much. But, you ask, "Zero percent real return from I Bonds and 3.5% nominal return from EE Bonds? That's not a great return!" Well, I could debate this, but I'll just say that compared to other bonds, these government-backed securities seem like the best deal out there by far. For example, as of today, 20-year Treasuries are yielding 2%. Compound that for 20 years and you get less than $5,000 versus $10,000 when your EE Bonds double. But, you ask, "Won't stocks more than double over 20 years anyway?" Well, first, comparing stocks and bonds is a mistake, because their risk profiles and uses are so different. Second, bonds have indeed beaten stocks for 20-year periods before. Even taking the last 20 years as an example: it took US stocks 15 years to double and international stocks almost 20. So yes, over the last 20 years stocks came out ahead, but only in the final stretch ... the next 20 years, who knows? So think of it this way: are you going to hold bonds now and for the rest of your life of some type? Are you planning to live 20+ years? If you answered yes to both, you may benefit from EE bonds! Anyway, I'm (obviously) a big fan of both of these bond types and would recommend considering them. Series I Bonds also work as good shorter-term savings vehicles if you have over a year before you need the cash. [link] [comments]  |
| Turning down a MASSIVE raise - would I be crazy? Posted: 31 Oct 2021 09:41 PM PDT I have been in my current job for a couple of years. The all-in pay is 215k/year, the hours are 9-5, and the job is 100% permanently remote. In terms of lifestyle this is pretty great, as I have no commute time, can travel frequently, and have a great work/life balance for my profession. However I have just been offered a new position through my network. This job would pay 500k/year (including bonus). It would also require me to live in NYC, be in the office at least a few days a week, and work much longer hours (at least semi-frequent late nights and weekend work, monitoring emails all times of the day, etc.). I am really struggling with the decision. While the compensation difference is massive, a fair bit of that would likely get eaten up by NYC cost-of-living and taxes (I currenty live in Miami), and my work/life balance would be much worse. Would it be insane to turn down this offer? For context, I am mid/late 30s, single, with about 500k of assets and no debt. EDIT: One big factor I left out. I have lived in NYC previously, and outside the winters and high COL I actually really love the city, much more than Miami. The concern with location is just that with the new job I'd be tied to the office/city, so couldn't travel spontaneously and work from home the way I do now, in addition to the higher stress job. [link] [comments]  |
| Can I pay part of 2012 fed and state tax before end of 2021? Posted: 01 Nov 2021 05:09 PM PDT Title is wrong, meant to be 2021 Mistakes were made. My wife and I estimated owe 10k of state and fed tax combined by dnd of the year. I know that we can ask our employers to withheld significant extra amount for the rest of 2021 to make up the difference, but the problem is that even if we withhold all of the paycheck for the rest of 2021, it may not be enough. I also don't like this way is because there is no way for us to estimate how much extra to withhold for fed and tax and for each of our employer. Clearly the payroll wants us to fill up a W4 which only allow a number to withhold, not percentage. Because I have no idea how much my last paycheck of the year would be (my paycheck is normally 3000 (biweekly) but my bonus will be 10k and hers is about 5k. If our net pay is only 3000, how does it work if I want to withhold 4000 for fed and 4000 for state? They withhold fed first or state first? I wonder if there is anyway for us to just mail a check to IRS and state just like "hey, here is our missed tax for this year, so that we don't have to pay penalty during tax return). In such way, I can wait till end of year and calculate the total we missed and just mail them a check then file a normal tax return next year. (The reason for under withholding is because we got married and it's the marriage penalty. Also we both forgot to add additional withholding when we select married jointly and we both work) [link] [comments]  |
| Buying a New House - Is Downpayment Guidance Outdated? Posted: 01 Nov 2021 01:20 PM PDT First time homebuyer here. Early 30's married couple that have been saving up for awhile and are now closing on a home end of December. We have 135k in cash, 0 debt and 800+ credit scores. Home price is 485k through a new builder. Here is my dilemma, I was offered financing for 20%, 10% and 5% down. APR for the difference financing offers were 3.2, 3.35, and 3.4 (seems high but it includes builder incentives). Monthly PMI is $51/month for 10% down and $77/month for 5%. The PMI seems a whole lot lower than the 1% of loan amount I've see thrown around here. It seems that if I'll be staying in this home for 7-10 years, then I'll come out ahead if I put the minimum amount down and invest 20,000-30,000k in index funds. I could then keep a healthy emergency fund and save room for furniture and other purchases. With rates and PMI this low, why would anyone not put the minimum down? The ROI on a larger downpayment or paying it off early is terrible. Plus there is the potential upside of the home continuing to appreciate and having the PMI drop off all together. I'm curious what others think as I've run through the numbers and I'm wondering if I'm missing anything... [link] [comments]  |
| got cash...which student loans payoffs to prioritize? Posted: 01 Nov 2021 04:56 PM PDT I've had an inheritance and am going to use it to pay off most of my student debt. I have three types of loans from grad school:
Which ones should I prioritize paying off? They are currently all with 0 interest due to covid. [link] [comments]  |
| Pay off vehicle or put money into mutual funds Posted: 01 Nov 2021 05:59 PM PDT My wife and I are looking to invest $50k. My financial advisor recommended paying of my truck loan ($25k) and investing the remaining $25k. My interest on the truck is 3.49%. We invested $40k into mutual funds last year and got a return of 14.3%. I know I can't expect that return every year. So I am trying to decide whether to pay of the truck and invest $25k or to invest the entire $50k and keep the monthly truck payments. [link] [comments]  |
| Is it really possible to retire at 58? Posted: 01 Nov 2021 05:53 PM PDT So I'm in the process of investing 100k with a professional money investor guy. He's done pretty well with my dads savings, so I feel comfortable with him doing the same for me. During the initial conversation with him, he acted like I could retire a millionaire at age 58. I'll have the initial investment of 100k now plus my 110k in a work 403b. I have no debts other than monthly bills and my house is fully paid off. Conservatively, what % would a typical halfway decent money guy bring in? Would you retire at 58 if you could make it to millionaire status or would you keep working to keep from getting bored? EDIT: I apologize. I'm currently 35 years old and have been at my current job for 11 years. Assuming nothing changes on that front, I'll also get a hefty pension when I decide to leave. [link] [comments]  |
| This is my first year hitting the phase out range for a Roth IRA and I’m not sure how to go about it Posted: 01 Nov 2021 11:49 AM PDT My salary this year is $118k so since the beginning of the year I was aware that this would likely be my last year contributing straight to a Roth IRA without backdoor-ing it, however I did not take into account the impact that selling stock options from my job would have on my MAGI - I still have no idea what I'll end up at. So I rethought my strategy to simply stop contributing to my Roth when I figured this out at the halfway point (I've contributed $3000 this year) and planned to just wait till I did my taxes to know where my actual cutoff will be, then backdoor the rest through a traditional. As I've thought about this more however, I realized I could probably just do the other $3000 through the backdoor now, right? Are there any drawbacks to this? And the process is to simply open a traditional, contribute the money, then the next day convert it to Roth right? Thank you so much in advance for any help! [link] [comments]  |
| Posted: 01 Nov 2021 03:52 PM PDT I can put 5% down @ 4% interest or 10% @ 3.625% interest, these options are without PMI. Or I can do 10% @ 3.25% interest with PMI. I would invest the rest in the s&p 500 if I choose a lower down payment. Purchase price is 400k. What do you think? [link] [comments]  |
| How do i get better at saving money? Posted: 01 Nov 2021 03:00 PM PDT Hey guys, pretty straightforward and simple question, yet I just cannot get myself to be more disciplined with my money. I'm a 20 year old just looking to get my shit together. Although I'm not crazy broke, I do have bad spending tendencies. What are some of the best money saving techniques you guys can suggest to me? [link] [comments]  |
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