Personal Finance Weekend Discussion and Victory Thread for the week of November 05, 2021 |
- Weekend Discussion and Victory Thread for the week of November 05, 2021
- Got into a car accident with a hospital bill that includes ICU, Intubated, etc. What are my options?
- Scarcity mindset vs. abundance mindset
- IRS announces 401(k) limit increases to $20,500
- $60 collection went to my credit report (unpaid random medical bill I never got notice of for some reason..). Called the collection agency and they won't agree to pay to delete??
- Mobile services cheaper than AT&T?
- My Ex shows up under my insurance quotes?
- Preventing Lifestyle Inflation as a New College Graduate
- Smart Way to Purchase Part Of Neighbor's Property?
- Alternative to YNAB?
- Using 401k for portion of down payment on house
- Series I Bond rate. What does it mean?
- Collection agency offering to settle debt for 20% of amount owed
- CC or Savings? Maximizing living at home
- Shop Around for Auto Insurance! Especially if Young!
- Is life insurance .worth it, while you are young?
- What if I ignore an insurance bill because the biller keeps screwing up?
- Upgrade living space now, or save money and hope we can upgrade in the future? [Los Angeles]
- Is it a good idea to move my Roth IRA from TD Ameritrade to Vanguard?
- Paying off house vs mutual fund
- Rollover IRA + Roth IRA?
- Should I diversify my portfolio?
- To buy, build, or repair? That is my question.
- Looking for a place to learn about retirement outside the USA for USA citizens
- Got married this year and have already contributed max to Roth IRA. Just discovered it makes sense to file separately b/c of student loans. What to do?
| Weekend Discussion and Victory Thread for the week of November 05, 2021 Posted: 05 Nov 2021 02:00 PM 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]  |
| Got into a car accident with a hospital bill that includes ICU, Intubated, etc. What are my options? Posted: 05 Nov 2021 05:49 PM PDT The total bill of the hospital is 100k for 5 days. Without talking too many details about something that is ongoing, the hospital bills are on me. Thankfully, I didn't hurt any one else. My state is Florida and my PIP was only 10k. The remaining hospital bills are about 100k. I don't really want to do bankruptcy because I'm only 26 and I have about 40k between non IRA investment accounts and liquid cash. I don't really want to lose 40k to bankruptcy. Is it possible for me to work out something with the hospital with a bill this large? Ideally, I will have a reasonable monthly payment, even if its for the rest of my life. I don't have health insurance but I do have accident insurance through work that I am trying to figure out how much they will pay. I am worried about what is remaining. [link] [comments]  |
| Scarcity mindset vs. abundance mindset Posted: 05 Nov 2021 02:33 PM PDT Hi all, I'm looking for some advice on how to shift my attitude/thoughts from scarcity to abundance in relation to finances. This is my context: I'm 28F (no kids) $140,000 salary and $192,000 in Federal loans from professional school. Over the last 16 months I've set side $100K to pay off in January when repayment begins. My take home every month is $7-8K and I set aside 5-6K payments to loans. I live minimally under $2000 expenses monthly in HCOL city. The remaining $92K I plan on refinancing over a 5 year loan to pay monthly (not aggressively). My extra money will go towards investments. Yet...I feel like I'm drowning,stuck, and trapped by the debt. I know logically I've made amazing progress, I have a solid plan, my income is a blessing, and yet I can't shake the feeling that I don't have any money, or it's not enough, or not going away fast enough. And then I feel guilty for feeling this way. My goals having 2 kids, investing in real estate, FIRE movement by 50. Even though it's totally possible by numbers, I'm terrified that it's not. I grew up with very poor immigrant parents. I make almost 3x as much as my fiance in income, yet because he doesn't have debt, he already has one investment property. He's so positive about money and our goals despite making much less. Totally the abundance mindset that I want to have. How can I make this shift in thinking? Do I need to be debt free to not feel this way? Does anyone relate at all? [link] [comments]  |
| IRS announces 401(k) limit increases to $20,500 Posted: 04 Nov 2021 01:47 PM PDT https://www.irs.gov/newsroom/irs-announces-401k-limit-increases-to-20500 Previously the limit was $19,500. IRA contributions remain the same at $6,000. [link] [comments]  |
| Posted: 05 Nov 2021 03:01 PM PDT Am I screwed? The issue is that I plan on buying a house next spring, and I have a otherwise good credit score, and then i saw this $60 medical lab bill from a few months ago just hit my report (that was not covered by insurance). I called the original company and the collection agency, and they both said they can mark it as paid, but it will still be on my credit report. Am i fucked when i try to get a mortgage next year over such a small bill? Should I pay the bill in full today? I've never missed a payment for my credit history (3 years). Thanks. [link] [comments]  |
| Mobile services cheaper than AT&T? Posted: 05 Nov 2021 05:11 PM PDT Salary is about 37.4K/year(undergrad really paid off). I live by myself in the Chicago suburbs, and it's been rather difficult to budget every payday. AT&T Phone bill is a standard $110-$120… what other services are cheaper than this? Any recommendations? Thanks… [link] [comments]  |
| My Ex shows up under my insurance quotes? Posted: 05 Nov 2021 05:48 AM PDT I was looking at getting new car insurance online and my ex girlfriend automatically shows up as my wife and her car is the initial one that pops up for coverage? How is this possible and how concerned should I be about it? Thanks! [link] [comments]  |
| Preventing Lifestyle Inflation as a New College Graduate Posted: 05 Nov 2021 09:00 AM PDT I'm going to be graduating this spring and am fortunate to be looking at a job opportunity that pays well in NYC. As a new graduate I'm excited to be working, but I can't help but think about the adjustments that I'd like to make to my lifestyle (buying a new desk setup, new clothes, etc). While I'd be able to afford these nice things, I'm definitely aware that it's a slippery slope. How do I set boundaries and draw the line between enjoying my hard work vs. going overboard? [link] [comments]  |
| Smart Way to Purchase Part Of Neighbor's Property? Posted: 05 Nov 2021 10:10 AM PDT The couple that lives next to me here in rural Oregon, USA is on the verge of retirement, and they came to me with a proposition. They'd like to subdivide their lot and sell me the 6 acres that contain their equestrian facilities (covered arena, barn, stables, turnouts, office, etc). As I was looking to build similar facilities on my property, I'm interested in buying the property instead of building my facility. They are currently living in the small apartment attached to the barn and would like to continue to do so for a few years. Basically, they are looking for some cash now, an income for a few years, then a way to divest themselves from the property in ~5 years. I am looking to acquire an equestrian facility and would love to pick up an adjoining parcel and would find good use of it now. I think we've come up with a fair price. I can sell stock or use 40% of my Liquidity Access Line to pay for the property in one lump sum. I'd hate to be out that much liquidity. Since they own the property outright, is there another instrument that people use? Maybe not involving a bank at all? I'm thinking a "person-to-person mortgage" must exist. I put down a down payment and then payments for 5-6 years to get them to retirement, then buy out the rest. During that phase, they become my paying renters until they choose to move out. I'm just not sure what happens with the title during that timeframe and how either of us might exit such a contract. Is this a thing that people do? Is it even worth it to try "private financing" like that? [link] [comments]  |
| Posted: 05 Nov 2021 06:46 AM PDT What are good alternatives to YNAB that are not too strictly tied to any specific bank or country? (I'm in the EU) I kinda like YNAB, but at $15/month soon it feels like one of the best investments I can do right now is to stop paying for it. (I started using it back when it was a pay-once, locally installed piece of software) I'd prefer something online with a decent phone app, and I'm happy to pay for that, but not $15/month happy. [link] [comments]  |
| Using 401k for portion of down payment on house Posted: 05 Nov 2021 07:37 PM PDT FACTS - Currently rent - Looking to buy $600k house (that is VERY CHEAP for our area...) - Have $100k saved for down payment + closing costs - closing costs will be in the ballpark of $20k, where we live, so we'll assume $80k will be for the down payment - Have $250k saved in employer 401k, roughly evenly split between traditional and Roth QUESTION Does it make sense to withdraw ~$40k from my 401k to get us to a 20% down payment and thus avoid several years of paying $300/month in mortgage insurance? The extra 10% tax penalty on the withdrawal would amount to ~$4k, which, I would think, would be more than offset by not having to pay mortgage insurance. Thoughts? I'd prefer not to do a 401k loan because the loan repayment would up our monthly expenses considerably, and also cut into my ability to take full advantage of my employer's 401k match. Also if anyone knows of a quick way to come up with $40k that would be cool. [link] [comments]  |
| Series I Bond rate. What does it mean? Posted: 05 Nov 2021 05:17 PM PDT My wife and I are looking to put some money away for a home down payment in 2-3 years (I understand the pre-5 year penalty). I stumbled upon Series I Bonds as a better alternative than a high yield savings account. Currently the bond rate is 7.12%. For some reason I'm confused as to the meaning of this. For the next 6 months, the bond will receive monthly compounded interest of 7.12%? That seems unreal. I appreciate any clarification. [link] [comments]  |
| Collection agency offering to settle debt for 20% of amount owed Posted: 05 Nov 2021 02:12 PM PDT The letter states the account will be paid in full. Of course I sent a letter that stated full removal of credit report and also add the account paid in full, no partial…. Etc etc.. They have another account of mine. What are the odds they would settle that account for 20% of the total owed? [link] [comments]  |
| CC or Savings? Maximizing living at home Posted: 05 Nov 2021 07:08 PM PDT Hello! In July I (26M) moved back home to make a career change, and I'm happy to say I was able to enter into the job of my dreams in early September! I'm now in a position where I'm bringing home $50,000 every year and feel I have the opportunity to pay down debt and finally build savings. My goal is to move out in April, when my family's lease is up, and move closer to the city. That being said, I'm not sure whether to allocate my income to paying off high CC debt or building savings before moving out and paying for rent again. My bills average out to about $300/ month right now. I have about $11k of debt - two of 5 cc's are near maxed out with 22% and 17% APR respectively. Ideally I'd be putting all of my money toward these high-interest cards (avalanche approach), but I'm also trying to prepare for the move in April and putting small pieces of savings aside. Since there is a time limit before I move, I feel every paycheck I allocate is going to be very important. Any advice would be appreciated! [link] [comments]  |
| Shop Around for Auto Insurance! Especially if Young! Posted: 05 Nov 2021 06:21 PM PDT Hey everyone, I wanted to make a quick post about my auto insurance over the years, both as a PSA and as a brag, and hopefully maybe some critique. I live in Cali and I'm in my mid-20's now. I didn't get my own auto policy until 21 years old, when I got my first full-time job. For auto insurance, and this is my own preferences and this is not advice, I usually do a policy that contains:
Now, over the years my insurance has been like this; Single Honda, mid-2000's Model:
Single Honda, late-2010's Model:
Two Honda's, late-2010 Models:
From the beginning to present, that's a savings of $2,340 a year(I know, newer cars, older age of person, different policy dates, lots of variables, etc. just wanting to look at the bigger picture here). Now, of course in the beginning I was a young male being charged obscene rates, but as getting older and probably having a longer driving record, my insurance has dropped dramatically. So why did I make this post? Because I have had numerous IRL friends talk to me about this stuff and ask how I get lower rates. And I ask them, have you shopped around? Have you talked to your insurance agent about adjusting rates? And none of them do, they always hem and haw about how much of a hassle it is and how they don't want to be stuck on the phone for hours talking to insurance agents. Well I was on the phone for 1 hour today. Spent 10 minutes with the Connect/AFI agent to confirm my online quote and verify information. And then another 50 minutes with my Progressive agent to have my policy lapse and not renew. Why did this take 50 minutes? Because the Progressive agent wanted to try and beat my new insurance rate! He was able to get it down to $125/month, but still couldn't beat the new policy. I genuinely appreciated him trying to compete with it. My new policy is actually better than the policy above;
So, please, shop around, get a solid insurance company and stay on top of it. I'm sure I'll be switching from Connect/AFI in 1-2 years due to either premium increases and/or cheaper rates elsewhere, but just because GEICO quotes you $500/6 months over your current policy, doesn't mean State Farm or Mercury or AAA will be the same. [link] [comments]  |
| Is life insurance .worth it, while you are young? Posted: 05 Nov 2021 08:33 PM PDT I (25) received a letter from my credit union letting me know I am eligible for life insurance. My spouse (30) thinks it is not worth it as I am young and the rates don't significantly increase till I hit 50. [link] [comments]  |
| What if I ignore an insurance bill because the biller keeps screwing up? Posted: 05 Nov 2021 07:43 PM PDT Honestly. This situation is pissing me off. I've spent 10+ hours on the phone with the billing office and have called them 10+ times. Here's the situation: My son visited the same urgent care clinic twice this year. Once in May and another in August. Both times, we had billing issues. I provided my insurance info at the 1st appt. 1-2 weeks after the appt, got a bill for the $1000+ because they didn't bill my insurance. Called them and asked them why they didn't bill my insurance. Was literally told "I don't know, but we do have your insurance info on file." Told them to bill my insurance. 2 weeks later, got the same bill and they didn't bill my insurance again. Called them back again, and the rep said they don't know why the previous representative didn't bill my insurance and that they'll bill it right away. 2 weeks later, got another bill. This time, it showed that part of the services were billed to insurance and the rest weren't billed to insurance. Called them back again. Crickets... for about a month. In August, I finally got my corrected bill (just a $25 copay) and paid them. Unfortunately, kid had to go to urgent care again, and for some reason, I thought it was a good idea to go to the same clinic. The same exact thing happened with billing this time, but this time was even worse. They kept ignoring me after I verbally told the live representatives to BILL MY INSURANCE FOR ALL THE CHARGES. There were about 6 different services that they initially didn't bill my insurance. Each time I get a new bill from them, I see that only 1 service has been added to being billed to insurance, so I have to call again and again, and then they bill the 2nd service, and so on after I told them to bill the whole damn thing to my insurance. The 2nd to last time I called was in early October, and there was one remaining charge left for $400. They told me my insurance rejected the claim for that particular service. I called my insurance and they told me no such thing happened. Called the billing office back and told them what insurance told me and they said they'll look into what happened. I filed a complaint about these billings issues I've had through their website after this call. Today, I got the bill again, and nothing has changed. They're still trying to bill me directly. I called them back today and asked to speak with a manager/superviser. I was told I was being transferred to a supervisor. I was on hold for almost 45min then the phone magically hangs up. I called back and made the same request and this new rep told me there is no supervisor. I give up. I made a payment for what I know my copay should be. Can I just ignore these bills? I'm seriously at my wit's end with this shit. This is a complete waste of my time. I've never seen anything like this, and it's borderline harassment at this point. They'd send me to collections probably but wtf am I even supposed to do? [link] [comments]  |
| Upgrade living space now, or save money and hope we can upgrade in the future? [Los Angeles] Posted: 05 Nov 2021 10:38 AM PDT My wife and I have an opportunity to move from our current apartment (1b1b, $1850/mo) into another unit in our building (2b2b, $2350/mo). Our combined pre-tax income is around $7k. The units aren't luxurious, but they are functional and we love the neighborhood. Other 2b2b units in the area are going for around $2500-2800/mo. We know we'll have to get a bigger place eventually because we are trying to have kids and all that. The variable is that we have no idea when we'll actually have our first child. (We are trying. Biology at this level is more of an art than a science [j/k it's definitely still science].) We also don't know what will be available in the future. We know that rent will probably trend upward. The question is, do we jump on the opportunity now and lock in a bigger place at the current rent, or do we sock away the savings, hope that rent inflation doesn't outstrip those savings, and get into a place once we actually need it? [link] [comments]  |
| Is it a good idea to move my Roth IRA from TD Ameritrade to Vanguard? Posted: 05 Nov 2021 07:39 PM PDT Kinda a stupid question or if it's even worth it. I currently have a Roth IRA with TD Ameritrade and I'm considering moving over to Vanguard. I'm thinking on opening up a Traditional IRA with Vanguard and with the idea of doing this, I'd like them both to be in one place rather than having them be spread out. Or would it be better to use different brokerage? [link] [comments]  |
| Paying off house vs mutual fund Posted: 05 Nov 2021 05:59 PM PDT Good evening, I owe $363K on my house. The goal is to pay it off in 10 years. My interest rate is at 2%. I need an opinion on putting the extra money towards my mortgage or apply that money towards a mutual fund tracking the S&P 500. I'm extremely disciplined, so I would not use that money for anything else. According to the math, it would help me pay off my house in 8-9 years. Thoughts? [link] [comments]  |
| Posted: 05 Nov 2021 03:46 PM PDT I've recently started a government job that provides a pension in lieu of any contributions or matching to a 401k. I know my pension and social security combined will not be enough to retire on once I'm of age, so I need to continue saving and investing. Is there any good reason to withdraw my 401k funds to use for my Roth? I know this is a taxable event. Or should I just rollover the 401k and start the Roth from scratch? I anticipate hitting the Roth income limits eventually, so I would need to start a 401k at the point anyway, so might as well have one sitting around, even if it's only getting a few bucks a month in contributions anyway, right? I am also thinking about taking money out (either early withdrawal or preferably a loan) for down payment on a first home. Is there any 401k or Roth that makes this easier than others? [link] [comments]  |
| Should I diversify my portfolio? Posted: 05 Nov 2021 02:47 PM PDT Hi all, About 1/2 of my retirement/stock portfolio is with just one company (my employer). Since I started working here the stock price has tripled. I believe in our mission/vision and I think it will keep going up, but I worry I am putting 1/2 my eggs in one basket. Do you think I should sell some and diversity my portfolio? Thanks, [link] [comments]  |
| To buy, build, or repair? That is my question. Posted: 05 Nov 2021 06:46 PM PDT I am 30 years old and married, only had 1 kid when we moved in. I have no CC debt, 2 car loans totaling about 20k and 12k in federal student loans. I also have 40k in my 401k but id rather not touch that. I bought our current home in early 2019 for $163k, put only 3.5% down and still owe pretty much the full amount. When I bought this home I was earning about $43k annually. Now we have a second kid and feel like our house is a little cramped (3 bedrooms and the nursery has become my office since i am now permanently remote) but the bigger issue is that our roof, furnace, and air conditioner will need to be replaced within the next few years and will probably total 30k to 40k. I now make $67k annually and dont have to commute. We are looking to buy, build, or renovate. Our neighbors just sold for 265k and our house has considerable interrior upgrades compared to theirs so im probably sitting on 100k+ of equity. We live in the midwest and have found some great homes for 300k-330k. We talked to a builder and can build a good house in our area for 350k but it wouldnt be our forever home, but still very big upgrade. I can also take out a home equity loan to make repairs on our current home but I dont know if its worth it. I feel like the new build will give me less bang for my buck especially considering i would need to sell now to lock in my equity and rent until it is built. Buying a home looks great, i just dont think i can afford a mortgage payment over 1600 a month ( i pay 1050 now) without making significant sacrifices. I worry that repairing my current home is just delaying us from moving from this house anyway. If we keep the current house and make repairs, should i consider making it a rental property when we move out? (Our neighbors pay 1850/month for their rental compared to my 1050/month mortgage) How does that work, does a bank just give me a 2nd mortgage for a new house? If we sell, how much equity will i really walk away with after closing costs and how much should i put as a down payment on a home or new build? How much will my mortgage payment be on a $300k-350k loan? Does one idea seem to be much better than the others? I have very little knowledge of finances and appreciate any advice. [link] [comments]  |
| Looking for a place to learn about retirement outside the USA for USA citizens Posted: 05 Nov 2021 01:54 PM PDT Does anyone know of a good subreddit or community for those looking to retire outside the USA? The cost of living here is just too high and I would like my retirement savings to go farther. [link] [comments]  |
| Posted: 05 Nov 2021 08:37 PM PDT Hello! I got married in September of this year, and have already contributed $6,000 to my Roth IRA. That money has made money on the market. We were planning to file jointly, so no problem. But! Due to a special PSLF waiver announced last month, my past FFEL loan payments will suddenly become eligible toward forgiveness if I consolidate now and go on an income driven repayment plan. Long story short, it turns out that filing separately drastically reduces the monthly payments, so I'm unexpectedly looking into doing that this year instead of filing jointly (I should have about 12 payments left under PSLF). But I have no idea what to do about my Roth contributions. How do I take out the contributions, and what do I do about the gains? Another catch is that I just started my Roth this year, so this will bring the balance to zero. Will that be an issue? I'm with Fidelity, if that matters. Thank you for your help! It's been an incredibly confusing month for me and my finances! [link] [comments]  |
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