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Human: OK, so here's the abridged version. My girlfriend was 30 days late on a $4.80 Kohl's card balance. Just a complete oversight; she completely forgot she bought anything at Kohl's. Kohl's reported it as 30 days late payment and it now shows up at all 3 bureaus as a late payment. Obviously she's panicked because we were planning on getting a house 12 months from today [after the wedding]. She frantically calls Kohl's telling them she paid it as soon as she saw it was late. She speaks to the manager to **close the credit card**. Then she tells me later what has transpired. I told her that we would have had more leverage by calling and saying "*look, sorry about that $4. can you take back the credit report? i'm such a good customer, look!*" we can't do that anymore because the account is closed. After telling her this she tried to have the account re-instated, but couldn't. she'd have to reapply for a new card. she even had a hard time talking to service because service shoo'd her off to "new accounts" because she wasn't a valid customer. What should I do now? * Should I keep calling back and beg? * Should I beg by offering to reopen a new line if its removed? * Should I write a strongly worded letter to Kohl's explaining the situation? I just feel that we don't have any leverage because the account is closed. Why would they cut a customer a break if there's nothing to gain from it? It's not we can threaten to close the card if it's not removed anymore. Please help!! **TL;DR** : GF was late on payment. Got reported to credit. Called up, paid in full and immediately cancelled the card without asking to get the credit report hit removed.

If the rest of your finances are in order and you have otherwise repaid bills promptly, I doubt this will be a huge issue. Don't make her feel guilty over this.

Well... she actually *did* pay it >30 days late, so I'm not sure why you think you can/should have it removed. Just suck it up. I'm sure it won't make too big a difference as long as everything else is fine. You can check out www.creditkarma.com if you want to be able to monitor your score. They have a pretty nifty "simulator" thing where you can see what would happen to your score if you were to open a new card, close a card, get a loan, etc.

Human: In a couple of pay periods, I am getting a bonus about 3x my normal pay period amount, so it's a good chunk. HR sent out an email reminding people to temporarily switch off 401(k) contributions to avoid a chunk of the bonus going in. I'm 30; just bought a house so I have plenty of debt and trying to rebuild savings. I was planning on putting the bonus in savings, but should I leave the 401(k) settings as is and put 9% of it in there?

Take advantage of any matching, build short term emergency fund, then pay down debt.

as long as they match funds given to you via bonus i'd say leave it on ... free money is free ... PS come tax season if your bonus is considered a 1099 your accountant should make sure to make deductions against that first (no brainer)

Human: So I'm pretty naive when it comes to this sort of stuff, and I know that. I tend to stress easily about money. Here's my current situation... I am engaged, my fiancé and I both have degrees (I'm a designer and she's has a teaching degree). After college we moved back in with her mom and have been able to save pretty easily, but it's come to the point that we really need to move out, and I'd like to not be paying rent if I can be paying towards a house. I have a full time design job with benefits and make 40k a year before taxes and everything, and bring home about 2,200 per month (after taxes). My fiancé doesn't have a full time job yet, she works part time at a school and a daycare, and makes maybe 20k a year. We've both paid off student loans, no debt. We both have a car payment that's about $480 per month (combined). I currently have about 15k saved in the bank, and she has about 5k. I'm just looking for advice on how I should go about looking into this sort of stuff. Like I said I realize I'm pretty ignorant. Looking for some advice. Thanks!

First rent for a year or so. During that time, find out what kind of house you'd want for the two of you. My boyfriend bought his first home without having a clue, and now that he's lived there for a few years, we have a list of things to look for in a new home and some of these things will be non-negotiable. Save up for the downpayment, save up for good, nice furniture, enjoy the fact that you can call the landlord when repairs are needed, enjoy the flexibility of renting for a while. There are many rent vs buy calculators online, and they typically show you that renting is cheaper if you live somewhere for less than five-ten years (depending on exact costs). You may need the flexibility of renting for a while, since you don't know yet where your fiancee will find work, whether you may be able to get a better job somewhere else, and since you may have a family someday (and then need a bigger house in an area with better schools).

Most parts of Ohio shouldn't be too expensive for you. I'm one state over from you in Indiana. I'd pad out your savings a little more while I rented for a year if it were me. Do either of you have jobs that offer matching on a 401K?? If so, make sure you're taking advantage of that. Make sure you're really committed to job/area for the next 5-10 years before you make the leap into home ownership.

Human: I heard from two different people on two different occasions that keeping a small balance unpaid on a credit card is better for your credit score than always paying it off in full. Is this true? Edit: Thank you everyone for the info and saving me from some unnecessary interest payments! :)

Most companies will report the balance of your account each time they issue a statement. Therefore, it helps not to pay the card until you receive your monthly statement. However, you should always pay the full amount stated to avoid interest. If you use your card at all during the next month, the company will again report a balance when they issue the next statement.

No. It helps to have some utilization on all your lines, and generally once or twice a year (at least), you want to use a card at least once. However, if you use a card every month and pay it in full every month, they can only tell what the balance was the one point during each month that the credit card company reports it to the bureaus. 99% of the time, this is when the statement cuts. Statement for Dec 31-Jan 30 comes in on Jan 31 is $700 Jan 2012 balance reports as $700 on credit report You pay in full. Statement for Jan 31-Feb 28 comes in at $800. Feb 2012 balance reports as $800. You pay in full. All the credit bureau gets is that you had a $700 balance in Jan and $800 in Feb. They don't know that you pay in full every month unless you charge one month, and don't charge anything the next (or pay early so the statement cuts at $0.00).

Human: I know, I know. It's the standard advice. Yet... My CU offers a home equity line of credit as a free service, so I set it up. I have over 50% equity in my house. The rate is ~6% on it. If I need fast cash in an emergency situation, it's available to me. I will try to avoid this at all costs, but in an emergency situation, it is there. Heck, I could put bills on my credit card and then pay it off with cash pulled out of the home equity line of credit to stall the interest out even longer. Why, in this case, shouldn't I put my excess cash in bonds, a bond fund, or dividend stock that is unlikely to fluctuate like crazy but might earn better returns than a half-a-percent bank account? Assistant: What if they cancel your heloc? Human: Why would they? It's based on my equity which is not going to go down. There's always the credit cards as a last resort, though I despise the idea.

Do you forget about the banks cancelling or greatly reducing the amount of HELOCs about 3-4 years ago when the crisis hit? Remember, the HELOC is at the whim of the lending institution. You are now basing your emergency fund on the ability of someone else to pay. For all those people who may have been relying on HELOCs back when the financial crisis hit, they had a rude awakening. It was a perfect (or horrible) path of events that crossed. Home values dropped, banks hit a financial crisis and stopped lending (and close HELOCs). Unemployment skyrocketed Banks lowered the Credit Card limits of tons of people Now imagine you were one of those laid off, who's house lsot value and who's banks decided to drop their HELOC and lower their credit card limit? Where's your emergency fund? Just at the moment you need it, what you had planned is gone (or greatly limited). One of the things an emergency fund does is provide you the means to live through an emergency. the minute you begin to utilize a bank to get through an emergency you remove YOUR ability to do anything. You are riding on the whims of someone else to get you through an emergency. Personally, my emergency fund is for my peace of mind. I don't trust anyone else to provide for me when an emergency arises. I want to be able to rely on number 1....that's me.

> Why would they? [Implode-o-meter](http://ml-implode.com/)

Human: I have been lurking on this thread for many years and have found that is has always been helpful. My question to you, today, is about Credit Reports. Recently I obtained my Credit Report because my wife and I were going through some financial hardships in the past year and I wanted to see the extent of the damage. Personally, I was in a position where I could not make payments on my credit cards or student loans for 3 months. I thought this financial drought would last for eternity, until my wife came across a large sum of money through the lottery. The amount was large enough to pay of all of her debts and also some of mine. Around the same time I was offered a high paying position at a tech company that am currently at, and am now able to regain financial stability. Needless to say, I knew my credit report and score was going to be bad. I was at about 720 and am now down to 550. Here are my questions, and thank you in advance for any support you can give. I have also posted these questions in creditboards.com, but I find the advice given here to be more effective. 1. A lot of the negative debts on the Experian report say "This account will be in positive standing in 2018". What does this mean? I did not have debt collectors on these accounts, and many are now paid off completely, which I thought would come off my credit report a lot quicker than that. If these accounts have been paid, is there anything I can do to get that off my record? 2. I have credit cards that closed on me. On my Equifax report, it says under current status: PAYS AS AGREED. What does this mean? Does this mean once they are paid off they will come off my record? 3. There is a medical bill that was in collections, that was paid off in 2005 but is still on my record. Is it possible to get this off this late in the game? 4. The status of my closed accounts say "Closed by Grantor's Request" Is there a better way to have those closed accounts listed? Would it be worth writing to those accounts to see if they would say, "Paid Off" or whatever other term would be more beneficial? 5. Creditboards.com and posts on here have mentioned that you should challenge any and everything on your credit report. I can't find a definite answer on this though, so maybe someone here and set me straight. Are you to challenge even the things you know you were at fault for? Everything I've read has sort of glossed over this and I am curious if that is for legal purposes or not. I appreciate any advice you can give. Thank you.

Alright here we go. I'm going to try to answer each item in a separate comment. >A lot of the negative debts on the Experian report say "This account will be in positive standing in 2018". What does this mean? I did not have debt collectors on these accounts, and many are now paid off completely, which I thought would come off my credit report a lot quicker than that. If these accounts have been paid, is there anything I can do to get that off my record? This means that there are some negative notations for this account such as late payments. By law, those negative marks must come off of your credit report after 7 years. Paying the accounts off does not remove the negative factors from your report. Once they are paid, the only way to have them removed is to send a goodwill latter asking them nicely to remove them as a favor to you. You are pretty much at their mercy on this.

>I have credit cards that closed on me. On my Equifax report, it says under current status: PAYS AS AGREED. What does this mean? Does this mean once they are paid off they will come off my record? If it says PAYS AS AGREED, most of the time that means that there are no late payments reported for that account. Consider yourself lucky on that one. This is the sort of thing that you WANT on your report. Make sure you don't do anything to have it removed because it is helping your score.

Human: I've decided to try and pay off some debt with my tax return this year. I made a deal with BofA a couple years ago to freeze a credit card in exchange for a lower interest rate. I am down from around $7000 to $1750 as of now. My question is: **Can I offer them a lower amount, say $700-800, to clear the debt?** I have some other stuff I want to pay off, so $800 is about all I can really put towards it.

Why not just be an adult and pay back all the money you owe? Sounds rhetorical but I'm actually curious if there's an answer other than "I don't want to".

You can offer. They may reject.

Human: I'm a bit ashamed to post this, but I am extremely stressed, and I would like some ideas for an out before I prematurely age myself to death. I am 29 years old and in good health, but my job is not fulfilling, and I plan to leave within a few weeks. The reason for leaving my job is to free up time that I can use to focus on finding what it is that I really want to do, and then making it happen. I am single, I have no kids, no debt, I rent, and I spend an average of $2400 per month all in (including insurance and everything). My total assets right now are $1,057,230, which only includes my checking & cash, investing accounts, and 401K. But my other assets (furniture, TV's, guns, etc..) probably only add up to like 20k or so if I liquidated them, so not that much extra. My investment account brings in about $74,000 per year, which I re-invest. I make about 10k per month after tax from my job, but I really don't want to keep working there. They want you to be consumed by your work, and I unfortunately don't enjoy this particular work enough to be consumed by it. I want to do more with my money than just invest in the market, and so I turn here for some suggestions. Ideally, I would like to work, not just throw money at something, so starting side businesses etc... are definitely options. However, I do not want to do the average thing like joining a franchise. Reddit, If you had a similar amount of money, how do you think you would use it to put it to work for you?

go to law school for fun, then culinary school for fun.

Damn, that's a first world problem if I ever heard one. I can't tell you what you should do, but I would pay off my house (buy one, in your case, if you can find a place you'll want to be for a while), quit my job and pursue hobbies. I would grow a nice garden. I would have the time to be more politically active. The system is geared so that most folks don't have the time for this, which is why the rich folks run the country (they are the only ones with the time).

Human: I'm not very investing savvy but would like to start some sort of account to help pay for college when he is older. Is this a good idea? Any tips? EDIT: I don't want it to be JUST for college (house, car, etc). Also I'd like the money to accrue value; I don't want just a savings account. Thanks for all the responses so far.

I bonds would be a safe investment to gift

Start a permanent life ins policy for $50 or $100/ month. It will be a great source of tax free cash to him, have a competitive rate of return, not lose $ when the market drops, and is not subject to tax in the event that the kid does not go to college. All the options are open.

Human: My wife and I have a little over $30,000 in unsecured (credit card) debt, and just under $7,000 in student loan debt. Presently, we're making enough money to make payments on these debts (typically just above minimums). However, she has just been offered a job in a Central American country. This is a place that we could see ourselves living for a number of years, if not permanently. The problem is that, though we'd be making enough money to live comfortably in this country, we would be making nowhere near enough to keep paying these debts. Could we declare bankruptcy in this situation? Would declaring bankruptcy in the USA affect us negatively internationally? What should we be considering that we may not have thought of? EDIT: Wife is the main breadwinner in our household. Also, the debt belongs to her. I'm not pointing a finger - we're married, so it really belongs to us - but it existed pre marriage and is in her name. That being said, she is in the final few months of a contract (which may not be renewed), and is looking for new employment. Currently, this job (in Costa Rica, if that matters) is the sole offer on the table.

Obi Wan would likely sum this situation up with "The sense of instant gratification is strong with this one!" "Bankruptcy" over $30K? I'm really having trouble believing that you are being serious, but here are my thoughts just in case you will read them... 1) Most countries require that you have demonstrable assets before entering their Country to work on either a VISA or landed status. A declaration of bankruptcy three days before you jump on the plane won't instill a lot of confidence in anyone reviewing your file. 2) Declaring bankruptcy over such a small amount is ludicrous in the extreme. Please read up on the consequences of such an action before you even think about this strategy again. 3) Bankruptcy is a process not an event. One doesn't simply declare bankruptcy and then quit answering the phone. There are many steps involved and each of these steps takes time and effort. My guess is that it'd just about as long as focusing on your responsibilities and your debt 4) **[ A good starting point](http://www.daveramsey.com/article/get-out-of-debt-with-the-debt-snowball-plan/)**

YES it can be a good idea, don't be scared to explore it. Maybe you just need a debt consolidation though?

Human: I'm about to purchase my first car (yei!) and I have a few questions you fine redditors might be able to help me with. My monthly payment is going to be about $560 ($280 bi-weekly) for 60 months. I know I can afford to pay more than that, probably $700 a month (or more). I was wondering if there's any penalties if I do make a bigger payment than what's suggested, and if it'll affect my credit scores in any way if I do choose to pay more than required. Also, if I'm ahead in payments by a month or two because I plan to pay extra each month, does that mean I can defer payments if an emergency arises without any penalty? Do I have to inform the bank that I'll be doing that, or will they just be like "meh, all the extra payments will make up for this month me guesses" and go with that? I'm sure this is a common sense question, but loans and finances in general is not my specialty! *EDIT: I've digested all the comments all of you posted, and it seems I need to rethink my whole 'buying a new car' "conundrum". I think I'll hold off on the purchase, until I can save up enough and put a huge down payment, or get a cheaper car (although I need a truck for work), or go used (not that many options in this small rock I live in, but will try.) Thank you to all that chimed in, I haven't posted a thread that brought so much ass whoopin' ever, so this was a great learning experience! I'll get back to replying to a few of you once I'm home from work. Thanks again.*

After reading through this whole post, just a few more things to add: --you Can always shop around. There is the internet and car delivery services. --you lose probably 30% of the value of a new car when you drive it off the lot. --why on earth are you buying a pickup, unless you need it for work. Your gas and insurance alone Will add a ton onto your monthly costs for any car, let alone the one you have in mind. And HOW THE HELLO is a pick up that much? You realize dealers CAN'T SELL THESE THINGS right? I literally see 9k mark downs on new ones because they just want to move inventory. You must be wanting the top of the top of the line of trucks for it to be that much monthly. --that is so much to spend on a car payment. Does it include the extra warranties, taxes, ect? Seriously, unless you don't pay anything for housing, and make over 60k pretax, I'm not sure how you Can justify this cost.

Can you tell us specifically what vehicle you're considering? Will agree with others here, never buy brand-spakin-new cars. Buy late-model used instead (ideally 'certified' used). Wanna guess why?

Human: I just got a letter from my credit card company staying that my current credit card (X card) will no longer be offered and instead I will be issued a new card (Y card). The X card is the card I got about 6 years ago and is my longest open line of credit. I no longer use the card as my primary card but I've kept it open so I don't take the credit hit. My two other cards only have a history of about 2 months at the moment. My question is, since the credit card company is changing me from the X card to the Y card, will the history for the X card remain on my credit history?

Call your company and ask them that question. If they say no tell them you want to transfer the credit history to the new card.

I like guessing games. Is it the MTVu turning into the Citi Forward card?

Human: I'll keep the backstory short: Got married to someone I shouldn't have, took out credit cards(in my name b/c she has no credit history) to keep us afloat, she left and now I'm stuck with all the debt. Stupid, I know, but I can't change the past and want to fix this the right way. I have 3 credit cards, all basically maxed out: Card 1: $10,000 limit, have had this card for 13 years, APR 9.9% Card 2: $6,000 limit, have had this card for 18 months, APR 16.99% Card 3: $6,000 limit, have had this card for 1 year, APR 15.24% I make enough money to cover the minimum balance plus $50 on each, and I know I should pay off the higher balance card first, but are there any better options for me other than paying the minimum on the two cards and putting everything else towards Card 2? My credit score is currently 710 - I've had much higher scores in the past as I was always financially responsible before this mess. Should I do a 0% balance transfer on Card 2? Currently [this card](http://www.capitalone.com/creditcards/platinum-prestige-credit-card/12267/9/?linkid=WWW_1010_CARD_TGAFF01_Z_Z_01_T_CP26709EW) is available w/ no interest until 6/13, and I'm pretty confident I can have the balance paid off by then. I ask mostly b/c I'm not too sure how this affects credit(length I've had each card, # of accounts, etc). Do I close card 2 immediately after transferring the balance(no annual fee)? Any other options or advice would be appreciated.

Oh boy. I hope you're ready to live frugal for the next 2-3 years. Visit [/r/frugal](/r/frugal) and have a field day. Focus on trying to get as much money as possible. Take any overtime work you can get. Find yourself second job too even if it's a shitty retail job paying $8 an hour. Work an extra 10-15 hours every week and you'll get rid of this debt faster. An extra $200 each month from a shitty job goes a long way when it comes to these high interest rates. After you do that, focus on minimizing expenses. Go out sparingly. I'm thinking 1 time a month at most to stay sane and even then, spend very little. Don't buy unnecessary bullshit and cancel your cable bill if you can. You can just pirate everything for the time being. It sounds a bit extreme, but you can only afford $50 extra each month above the minimums. According to unbury.me, paying only $50 extra each month would take you until late 2016 to pay off all your debt and you would pay close to $76k in interest.

Honestly, I would consider transferring cards 2 and 3 to the 0% card if that's possible. What is your minimum payment on all the cards? Even if you can't pay off $12,000 in 15 months, you'd still avoid paying the interest on card 3 for those 15 months while you knock down the balance. Run some numbers on unbury.me and see which way you'd come out ahead.

Human: I'm looking at a 2012 Hyundai elentra or a 2012 Ford fiesta. They cost 19k and 13k respectively. The interest rates are about 4%, and both have mpg of 30 city/40 highway. I make about 25k a year, but I live with my parents so I have very few expenses. I have owned multiple used cars in the past and they have all turned out to be very expensive money pits. What does r/personalfinance think? New or used? Edit: Thanks for all the responses! A little more info since most people are recommending that I not buy new. I have $2,000 that I was going to use for a down payment; should I buy a used car off craigslist with the money instead? I am not very knowledgeable about cars and I worry I will pick up a lemon. Most cars with good reputations have in excess of 200,000 miles at the 2k price point. I like the good gas mileage and the confidence of buying new. tl;dr If I don't buy new, should I gamble on a craigslist beater?

You make $25k a year, buying a new car is going to consume most of your salary for an entire year. Isn't that scary? My annual salary is several times the cost of a new car and I ride a bicycle everywhere. Have you considered alternatives? Cycling, public transit, carpooling? If you have no option but to buy a car, then buy a reliable, efficient used car. And get it checked out by a mechanic first.

I bought a car from Enterprise, it was a great deal and have had no problems

Human: I called Chase and said that I was thinking of transferring my balance to a 0% APR credit card that I have been pre-approved for and asked if they would consider lowering my APR. I'm currently at 18.24% I have a balance around 9k on a card with a 12k limit, most recent purchases related to a job change and a temporary move overseas. I haven't made any purchases on the card in about 4 months. I pay well over the minimum balance every month, but I am not in a position to pay it all off at this time. I am employed. I make about 65k per year. I have a credit score over 740 with all three credit agencies. And the woman I spoke to said that they don't lower APRs. Period. And that my rate wouldn't be up for review for at least six months. She said they would be sad to see me go as a customer, but I should just do whatever is best for me - even if that means transferring my entire balance. I was kind of floored. I really don't want or need another line of credit. But now it seems like getting a second credit card with a 0% APR is my best choice. Should I try calling Chase again? Try another tactic? Any advice would be appreciated.

Why would someone earning $65k a year have credit card debt losing 18% interest? Couldn't you just pay $9k in debt off in just a few months? Surely you must have investments getting nowhere near 18%+ in interest to offset this. Move any money currently earning you under +18% interest to pay off that -18% interest debt.

They're in a position to make a good chunk of money off of you. Speak to a higher up. Explain how you have been a loyal customer for x amount of years. If they still say no, take the balance transfer.

Human: So I just got hired by a new company that offers a stock program where they accumulate up to 10% of my paycheck per month and at the end of 6 months take all that money and sell me a bunch of their stock at a 15% discount. I don't anticipate the company going bankrupt anytime soon(over 300k employees worldwide) and I'm allowed to sell the stock as soon as I purchase it. Wouldn't this end up in me getting 15% interest(minus any fees) on what I earned or is there any reason not to enroll?

Just make sure you sell it. You're already "invested" heavily in your company, as your income depends on them. If they hit financial troubles, your paycheck AND investments would be in trouble at the same time. It might be unlikely, but it can happen.

My company offers this and it's been fantastic. I've talked to friends I work with and discovered that some of them don't participate and I'm just baffled. It is particularly sweet when the stock goes up a bunch over the course of the offering period, but a good deal no matter what. Figure out how to go in and get it to automatically "quick sell" at the end of the period.

Human: I see alot of people talking about adding money to a roth and trying to figure out which index to invest in or a stock. I was sitting down the other day and starting to think about which etf/fund to invest in, when I thought, I have a mortgage, why in the heck should i invest 20,000 or so, when I can refi my mortgage, get a lower rate. The interest I would save would probably be more than any investment over the next 20yrs. So, that's my question to all the finance guru's or everyone out there with a mortgage & roth. Why keep adding to the roth when our mortgage is sitting there?

You don't want to end up with no mortgage but also no money. And you don't want to end up with a pile of money that's negated by your mortgage. Blend the two strategies, and keep in mind that the Roth tax shelter is awesome and has limits. Investing early helps you take advantage of that tax shelter as much as you can.

It depends on the numbers. How much is the current mortgage interest rate, and how much will it become? Do you expect to live there for at least the next couple of years (say five years)? How much have you got saved up for retirement already?

Human: I've read Rich Dad, Poor Dad and one of Dave Ramsey's books, but I know you guys don't like those two very much. I want to know how I can start saving correctly for retirement and for the future in general. Any help would be appreciated.

Sign up for the TSP so you can have access to the G fund for life

Don't die... that's your best bet

Human: Within a year, I will likely have much more to invest, but for now I only have $3k to spare in a Roth IRA. From what it looks like, that is the minimum to invest in anything with Vanguard, and that the only fund available with them for that amount is VMMXX, a money market fund. Maybe I am not seeing other options for some reason? It appears to not be insured by the FDIC. Also appears to only have a compound yield 0.04%? Is this in effect the same as 0.04% interest? I admit I am not very knowledgable of this. Is there nothing better I could be doing with this $3,000? Already fully funded 401k and emergency fund established. Just looking to broaden my investments. Thanks for any advice.

all of the targeted retirement funds (VTIVX, etc) are 1k minimum. also in your roth ira you can invest in anything, stocks, etf, etc. The VMMXX is I think primarily to use for your brokerage account not really for serious investment.

[try this](https://personal.vanguard.com/us/funds/snapshot?FundId=5861&FundIntExt=INT#hist=tab%3A0) depending on your age, and risk appetite

Human: So I've been working at a place. I got an offer (awaiting final confirmation of offer on paper before moving on, etc., but I've been assured "unless we implode like Lehman Brothers between now and early next week, you will get an offer. As far as we know, there aren't any plans to do that"). The new offer is a permanent position with your typical array of health and other benefits. I was eligible to contribute to my 401K, but didn't since it was previously part time with limited pay and no match. The employer will match any contribution up to 6% of my salary on the new role, so even though I am young I'm smart enough to realize I shouldn't pass up free money. Plan admin is Vangaurd. Enrollment seems pretty easy, but then I get to what I want to invest in and there are easy options, custom, etc... They say the plan most targeted given my age and typical retirement (65) is the 2055 plan. I don't have any plans to retire at 30 or 90 at this time, so should I just pick that? Is there a resource that I should look at? I'm not a financial expert or anything, hence why I'm asking.

I am a fan of [http://www.bogleheads.org/wiki/Lazy_Portfolios](http://www.bogleheads.org/wiki/Lazy_Portfolios) You are lucky to have Vanguard, you have so many good options. If you are not sure about your desired asset allocation you could always use the target retirement funds and change them later to your desired balance.

I would just pick the target date fund but I do this because I would rather not worry about having to rebalance and pick other funds because I can be a bit too detailed when researching and it would hinder me. If you work with it every day though it will be easier for you.

Human: Long story short, I have gynecomastia, or the development of breast tissue on the chest. I'm an otherwise fit and thin 18 year old male, yet I have to live with this everyday. Surgery to get it removed cost about $7200. I have about $1200 saved in my bank account and $6000 in mutual funds. The mutual fund money is mostly from grandparents over the years giving me money for birthdays and holidays. It is just a perfect coincidence that the cost of the surgery is equal to both of these savings combined. So here's my understanding. In four years I will be 50k - 80k of college debt depending on where I go. What difference would spending 7k now make? On the other hand, my father said that my mutual fund may even double in value by the time I graduate college, and should just be left alone for as long as possible. The big question then is, if I spend my 6k of mutual fund money now, how much potential money am I losing down the road? Is the value of my potential money lost > or < the value of my potential happiness lost from having to live with this condition? I'm am losing sleep over this, and could really use some advice. I know it is impossible to measure my happiness gained from surgery in terms of money, and it is also impossible to say for sure how much my mutual fund will grow. I know little about personal finance and this subreddit may not be the perfect place for this question, but any advice would be appreciated. TL;DR : Want surgery for gynecomastia, should I spend mutual fund money to pay for it? Edit : Thank you for all the replies everyone, it's been incredibly helpful. I am currently looking into insurance and learning more about my mutual fund. I will respond to more replies in a bit...

I had Gynecomastia since I was in middle school. They started forming right about that time. I started realizing I was different from the other boys. I couldn't dress like the other guys, I couldn't play sports for the fear of the other kids seeing my man tits. Gynecomastia scarred my childhood. I was a skinny kid and had these male breasts. It was total hell. It was so bad, I looked forward to winter because I knew I would get to wear my jacket all the time. I started getting scared and sweating when I realized spring was around the corner and I would have to wear light shirts. I had gynecomastia surgery last year on April 12, 2011. In 2010, I finally said enough was enough and I will not go another year living in fear, living in my own personal hell. I scheduled the appointment and in 3 months I had gotten rid of them. I had them done in April, so I could experience my first summer of happiness and zero shame. I never looked back. I have been so happy. I have been running, joining the gym, taking part in life activities I would dare not do in the past. There is simply no price tag you can put on this feeling. There is no pricetag you can put on this freedom. I borrowed the 8K, went into debt to get this surgery and I do not regret it at all. Money is of no value with what you get in return. I walk around with my chest pumped and I am no longer slouching. Sometimes you cannot let money rule your life. In many cases like buying a new car or a house, money rules must apply, but not in this case. I would go into debt 3 times to be the way I am now. To go back to how I was would be sentencing me back to prison. I am telling you to take this surgery. It will change your life. Here is my proof. http://imgur.com/a/Quxfn Honestly, for those who have not been in our shoes, they do not know the pain we went through. So they are looking at this from a different point of view. I have been where you are. I am so glad I took the step to get surgery.

I had a surgery that involved something greatly affecting my self esteem, which affected my life. I wasn't very financially stable at the time but I got the surgery anyway. I made monthly payments on it, and yes it ended up costing a lot but I personally don't regret it at all. It's made a huge difference to me. So in reality, it's just a matter of if it's THAT important/worth it to you or not.

Human: The interest on this thing is ridiculous, and I'm getting charged $10-15 per month on it for security coverage. I'd rather just get rid of it. EDIT: I stated this below, but II DO have a regular MasterCard from Capital One with a meager balance on it. I just want that to be my sole card for right now (22 y/o living at home, working part time.) EDIT 2: Although I paid the remaining balance, I discovered today there was an $8 balance there. It appears to be interest charges and Account Shield charges: http://i.imgur.com/MJctr.png - I need to cancel this Account Shield.

I would cancel the security coverage, and hide the card from yourself.

Don't cancel it, cancel the coverage and cut the card up. thats what i did.

Human: I'm 25. I earn $48k/year. I'm debt free. I am maxing my Roth IRA at $5k/year and I'm putting 5% into my 401k (profit sharing, no match). I've almost got a decent sized emergency fund set up (currently over $10k). My next move is to find an apartment sometime this year (currently living with the parents rent free). So I'm putting about 15% into my retirement funds. Is this enough? Should I am for a higher percentage? What percentage do most people contribute? I'd you need more info, feel free to ask.

Play with some retirement calculators. firecalc.com is especially good. I live a fairly non-extravagant lifestyle (but I have a family) with a similar income to you, and I usually find that I'll need to save about 20%. But certainly try to save more. If you get to retire a few years early it'll be a sweet bonus. If you reach retirement age and find your nest egg lacking, it's going to be a *very* shitty feeling... so err on the side of saving too much, rather than too little.

Personally, I invest around ~85% of mine. Don't be lulled to complacency by society's echoes of "Yeah, that's good enough." Even if you don't go the route of high savings, it's still good to leave the echo chamber and hear different viewpoints. There are lots of good blogs on early retirement like Early Retirement Extreme or Mr. Money Mustache.

Human: Hey everyone, So this is my first post on this subreddit, but I'm in a sticky situation so I'm looking for advice. So I bought PROSHARES TR ULTRASHT 2X SP500 (SDS) about a month ago at $23.09, thinking the Greece/Portugal/Euro situation would hurt the US economy (this is before I really started doing research in to stocks). So now I'm stuck with SDS which is 34% down. I've been doing my research and I've found some opportunities that will make stable long term returns (i.e. BAC), but I'm not sure whether I should wait to sell the SDS shares so that I don't take such a hit or if I should just sell it now so that I have capital to reinvest. Thanks guys! (and gals) ------ forgot to mention, i've already saved up an emergency fund. I'm a mid-20s student. This investment is part of my Roth IRA that i've maxed out.

Oh man ... leveraged shorts will bleed you dry. You're grasping at straws and speculating based on front-page news. I think you need to read the Bogleheads Guide to Investing, AFTER selling whatever ultra-triple-short-long-blended-leveraged-this-and-thats you have.

thank you everyone for the advice. I'm sorry I forgot to mention this, I've already saved an emergency fund. I'm a student in my mid-20s, so this investment is part of my Roth IRA. So is there a consensus? Sell it and stop being a dummy first time investor? lol

Human: This year I have begun my mission to save up money. I have no savings at all. I find it hard to save up and thought that by buying silver I might be able to save up more easily as I can't just withdraw cash at an ATM. My questions are... 1. Does this make any sense? 2. Will I be losing money in the short term or long term with the price of silver constantly changing? 3. If it's a reasonable idea, should I buy Silver Eagles(premium), APMEX 1 oz rounds, or something else? Please note: I'm not really doing this as an investment, but the possibility of gaining a little doesn't hurt. I know nothing about silver. I intend to buy 1 oz. at a time because I have very little income. _________________________________________________________________ I look forward to reading all your responses as well as suggestions of alternative ways to save up. Thanks!

I'm personally not a fan of purchasing precious metals as a way of savings, but there are quite a few people who are. Its definitely not an investment in the strictest sense, as many people fool themselves into thinking, but is more like taking a wad of cash and shoving it in your mattress. My savings are almost entirely in stock and bonds, which in theory are backed by actually producing something, rather than just holding something of value. There are several fairly easy ways to get it set up so your automatically have some portion of your paycheck pulled out this way. It sounds like you don't have much in the way of savings at all though, so you probably should save up an emergency fund of several months worth of expenses first. Keeping that emergency fund at some place like Ally or ING Direct would mean that you would have to jump through several hoops to get your money back, but it would still be far more liquid than almost any other form in the case of an emergency. That said, the idea of having a safe full of silver coins is actually pretty cool, and it doesn't sound like it wouldn't be *terribly* expensive... I might have to actually look into keeping some silver that way.

Precious metals are an investment, not a means of savings. There are risks like any other investment. Buy-and-hold (for a long time) is strongly advised with them. That being said, buying Eagles means you pay a little more per ounce, but you'll probably have an easier time selling them down the road for a number of reasons. Though, metal is metal, and a lot of people hold generics, old dimes and other forms because something is better than nothing ;)

Human: My father owns a construction company. In 2010 he paid cash for a 2010 4 cyl. Ranger XLT for just under $18K including tax, registration, and other fees. However, he never really used it and he ended up just giving it to me. Now it has ~12,500 miles, it is in my name, and I've been working my new job since November. I am thankful to not have any car payments, but I am dissatisfied with it. The acceleration is sluggish, it has some what of a rough ride (the seats hurt my back after every trip), it is not a practical daily driver, and the mpg isn't great in the city (I average 19-21 mpg overall). On the plus side, it is supposed to be pretty reliable and low-maintenance. So, should I sell it and replace it with a cheaper used car that provides me more utility and better mpg, or should I just keep it because it is already paid off and has low mileage? I can put the difference in money (if any) in a savings account to use for repairs/maintenance.

Depends on your commute. For what you are using the vehicle for, I would probably put up with it; however, if my commute were much longer than it is now, I would sell that vehicle it a heartbeat. There's also a personal factor for you to consider. If it'll upset your father to a great degree, you'll have to consider that.

Totally thought that title said used cat.

Human: My family's recently come across some money (a couple million dollars in cold hard cash- we're very fortunate.) My father is the one doing most of the management of the funds, and he's been meeting with a plethora of financial advisors these past few weeks. He's told me that he's hoping to earn at least 5% with a variety of investments and accounts, maybe up to 10% if we're lucky. My question is this- is that realistic? I know the market is tough right now and he's hoping to be able to maintain a decent average of profit. I'm a bit worried, but I'm not a financial analyst or anything. Your thoughts? Assistant: What's the time horizon? 5-10% is VERY realistic if we're talking about good growth stock funds over the course of 20-30 years. Human: 5-10% on a yearly basis.

each and every single year without fail? Nope. Not realistic at all without extremely talented active management. Annualized over 20+ years it's likely.

Here is an example to help you see what people mean when they talk about the stock market returning 5-10% over long periods of time. Let's say that we start with $10,000 and these are the returns we earn over the next 10 years: Year 1: 11% Year 2: 19% Year 3: -32% Year 4: 62% Year 5: -10% Year 6: -8% Year 7:18% Year 8:14% Year 9: 9% Year 10: 17% We end with $20,669. Along the way we had an annualized return of 7.53%. But obviously, that doesn't mean we made that rate of return every year. Three out of the ten years had negative returns. At the end of year three the balance was down to $8,982, less than we started with. That's why stock market investments are for long-term money. Over the short term, anything can happen. However, over the long run, investors in the American stock market have realized pretty healthy returns.

Human: Looking to live without roomies for the first time and wondering what people think is appropriate to spend on rent. Take home is around $2,200 a month and apartments seem to go between $700-1100 in general in the area.

They say rent should be about a third of your take home income, and if it's 25%, you're doing really good!

The recommended number is no higher than one third of your income. Personal experiences: I lived in a $990 apartment on $2200 a month and it sucked, felt really poor. I don't recommend going above 40% of your income on rent. Now I spend 37% of after tax/deductions income (which is now significantly higher) on rent, which is probably a bit high still, but it doesn't bother me and doesn't really feel burdensome. (I'm also paying for the full cost of a 2 bedroom apartment while my boyfriend pays off his student loans, so my share is really only 18% of my income.)

Human: What I have: 2 401ks from previous employers. One with $1500 and another with $4300 at the old employers and a new one with 0 dollars for the current employer. What don't want: fees, taxes, multiple 401k's with my money being dispersed everywhere. What I do want: money saved up in fewer places. I do not think the current employer's 401k is that great (no vanguard and no matching). I am just putting 5% in there monthly just to lower my tax burden somewhat/automatic pre-tax savings. I'm really more interested in saving money up in a "better" place. What do?

Just open a rollover IRA at your favorite institution and process a 401k rollover. A lot of times this can be done totally online. You won't have to pay taxes, there shouldn't be any fees and it'll probably take you 30 minutes / account.

> I do not think the current employer's 401k is that great (no vanguard and no matching). I am just putting 5% in there monthly just to lower my tax burden somewhat/automatic pre-tax savings. I'm really more interested in saving money up in a "better" place. What do? Depending on your income, you start a traditional IRA which gets you the same tax benefit (to a maximum contribution of $5000/year). Many institutions, including Vanguard, will happily setup automatic savings. You will have to manually adjust your tax withholding. All that being said, you may be better off with a Roth IRA. That will likely get you better long term tax advantages at the cost of using after-tax money.

Human: Received pretty standard email from CapitalOne about paperless statements, but last 4 digits of card number and first and last names were not mine. As a precaution I called them and changed my credit card number because if I received wrong account information someone possibly got mine.

Hey, at least they didn't [mail a physical letter with your SSN above the name line](http://www.dailyfinance.com/2010/03/02/citibank-may-have-printed-your-social-security-number-on-the-out/). Silver linings, right?

When I became the Treasurer of my fraternity, I had to go to Capital One with the old Treasurer to transfer our bank account into my name. They gave me a temp card and told me that they would be mailing me a real one within a few weeks. The old treasurer then went home for break and found that he couldn't use his PERSONAL Capital One card....they had transferred HIS account over to me in addition to our fraternity's. When he called to complain they told him that there was nothing they could do as he was no longer on the account. tl;dr Capital One gave someone else's account to me by mistake

Human: I'm a senior in high school and I am looking for ways to make some cash for college. Of course I would take a typical job for a young person, but I have an age constraint (not 18 yet) and my schedule for the summer is less than ideal for an employer. Does anyone have some suggestions for either managing to get a traditional job under these circumstances or rather some other non-traditional venture, and further, how I might go about making these things a reality? I am open to just about anything (except for food service and generic retail) but would prefer something stimulating or educational. Will provide additional details about skills and interests if that becomes relevant. Thanks!

Not sure what you mean by your schedule being "less-than-ideal" but - Get that chip off your shoulder regarding food service and generic retail. This is something that every young person SHOULD experience. It's extremely educational because you have to learn how to respond to many different types of customers and multitask. Yeah, the work can suck, but it will help you appreciate a more cushy job down the road. As far as your schedule goes, if you're busy during the day then find a place that is open a lot. Try a grocery store - they'll be able to work with a busy schedule. Another option is to be a groundskeeper at a golf course. My brother did this in high school - he went to work at 4-5AM and finished by 10AM at the latest, so it worked with his busy schedule (since he then went on to work at McDonald's in the afternoon). FWIW, I worked at a grocery store for 2.5 years in high school. I started as a bagger and was eventually promoted to the customer service desk, and had the option to become a manager once I graduated. I gained valuable job experience - since I watched over all the baggers and cashiers I gained "managerial" experience while in high school. This experience helped me bag 2 great internships while in college. tl;dr - suck it up and get a job meant for young people, that's what they're for

Retail and food service are your best bets, unfortunately. Don't discount the value of working in customer service - it will be one of your most important skills down the road. No matter what you do in the future (except, perhaps, making money solely off of investments/interest), there will be customer/client/boss and you will need to know how to skillfully handle them. How are your test scores? Private tutoring may be an option, depending on your location. Babysitting, landscaping, dog walking/sitting, something at your high school (the janitorial, IT, and groundskeeping departments usually need extra summer help, again, depending on location). Do you have any other skills? Play an instrument? A sport? Debate club? Any other information would be helpful. Why is your schedule less than ideal? That is, what else are you doing over the summer that prevents you from working flexible hours?

Human: I had a ~550 credit score through out all 3 bureau's. about 2 weeks ago, My mother and wife allowed me to be authorized users on their accounts. (my wifes obviously, I pay all her student loans, and debt), and my mother since she wants to help. My credit score after 14 days went up to 669, 668, and unfortunately my equifax is at 580. I need a 620 to qualify for a VA home loan. is equifax a hard one to get back up? I have 0 debt, and now this piggybacking has added nearly $10,000 in credit for me. Should I try to get my own credit card too? Thanks!

If you're trying to qualify for a mortgage, do NOT open any new accounts right now. New credit/accounts will hurt your score. I'm not talking about your mother's or your wife's; I'm talking about you getting a new account in your name.

I made bad choices, as many of us do, at a young age. FFD a few years and I'm married have a child and looking to buy a house. My wife has 750+ on all 3. I HAD <550 scores. My mom ( which is my legal address ) added me as well as my mom. 15 days later, I check USAA's credit monitoring service and saw my scores. I was almost in shock. I have nearly 20% of my down payment and I'm ready. But now, we can use the VA Loan and we just have this 'extra' money. It feels great!

Human: I have AT&T I bought it at $25.25, I don't NEED the money right now, but it hasn't increased in value like my other stocks have and I would like to reinvest the money tied up in AT&T elsewhere. I also have a DRIP set up for it to reinvest the dividends. I own 13 shares and I have to pay $9.99 every time I execute a trade. EDIT: I really just wanted to know how you go about selecting a target price to sell it.

First, I would say you don't have enough money to be trading single stocks. Moving $300-400 lots, the trade fee is gonna work against you very hard. As for when to sell... I like the "reversal analysis" - if you had the cash and not the stock, would you buy the stock?

Do not ever buy $300 worth of a stock when you're paying $10 commission on each trade.

Human: I usually file through the state web site, which sucks. If I can just avoid it, I'd be more than happy to. I've already done my fed. taxes through Turbo Tax. EDIT: OK I'm an idiot. And lazy. I'll file it.

Not directly related to your question, but in general you always have to *file*. Some states specify that if you owe less than a certain amount, you can simply avoid *paying*. I live in Pennsylvania, and I think the threshold is somewhere around $3 or $4. (Not applicable in your case, but you could specify that you just want it applied to your next year's taxes if you don't feel like messing with two bucks.)

Sounds like your withholding (the taxes that came out of your paycheck throughout the past year) was calibrated almost perfectly. But unless you're very poor (and live in a state with a "filing threshold"), you still have to file to prove it.

Human: So here it is, I am 21 year old single male who doesn't smoke and is apparently "elite" in the eyes of an insurance company which I wont reveal at the moment, should it turn out to be important I am happy to list the name. So I just recently (6 months ago) got a promotion at my job. I went from making about $20,000 a year to about $100,000. The kicker on my salary is it is largely bonus bases, not that it's hard to hit the bonus but it is not guaranteed so my guaranteed is around $45,000. So my mother has decided I need to buy life insurance and start saving for retirement. She had set me up to talk with the guy she uses to do all this with and the minute I met him he instantly seemed like he just wanted a sale. He went as far as to say the first time we met I probably didn't need life insurance, but he sold it to me anyway. So here's the guts of it, she pretty much forced me into taking out a $500,000 policy but the premium is $352 a month, even after I was deemed "elite". Is this worth it? I've read tons of articles about term vs whole and take term invest the difference. I am very good with my money and not to toot my own horn but I believe to be pretty responsible for being 21. I think I could handle my money better than this company and $352 a month seems to be a bit steep for something so "guaranteed". Any help is really appreciated. EDIT: Thanks for the comments, I had thought it seemed a bit sketchy and I have been trying to do a bit of research. As of now the final documents haven't been signed just a check for one month has been processed to make sure the account was active and what not. I will be canceling it and I appreciate everything.

You're financially literate but your mom forced you to make a bad financial decision? What benefit are you getting from life insurance at this point?

if your gonna buy it from someone buy it from me.

Human: It's tax time! What's the first thing you do when getting ready to do your taxes? Do you plan for taxes all year long or simply approach them when you need to. How much time do you budget for them? And, finally, what is it about your approach that gives you the optimum results?

Open a bottle of scotch and hope i get to the end of my taxes before the end of the bottle.

All biz receipts in a big box. Track miles in a log as the year goes on. Download tax forms from banks ect in Feb. Spend a few hours poking around IRS site to see any changes for this year and learned how to do them myself this year. Then spend a few hours categorizing all my biz expenses for my schedule C's. Spend another hour filling out, copying, and sending. Then about an hour tops to do my state returns.

Human: I already have $2,500 in my Scottrade account, allocated as Roth IRA 2011 I recently opened a Vanguard account. I had an idiot moment, and deposited $2,500 to Roth IRA 2011 allocation... twice This means I allocated $7.5k total for Roth IRA 2011.. I already called Vanguard and explained I only meant to deposit $2500 once, and they are sending the excess $2500 back to me. Problem is, they said I can't "expunge" this goof, and all this activity will generate IRS documents, etc, since they are technically selling the funds I just invested in last week etc etc. Come 2013 tax time is this going to haunt me if they (IRS etc) see I illegally added $7500 into Roth IRA 2011, even though I saw my error and took $2500 out immediately? Any advice welcome in this regard. Thanks

Don't you want to relabel the extra 2011 contributions to 2012 contributions anyway?

It's not "illegal" its just taxable. As long as you report it appropriately and pay taxes on the earnings (since the earning aren't tax free since you were over the contribution limit) you're fine.

Human: She also gets about $1,100/month from Social Security. She can barely scrape by with the $1,100/month but will need to withdraw money from her savings almost on a monthly basis to live a more comfortable life. Edit 1: I realize that it's not a lot of money. Many of you are pointing this out in the responses. I am simply asking, what should she invest it in? Bonds? High dividend stock fund? High-yield savings? Thanks. Edit 2: Wow, thanks to everyone for your thoughtful responses. I appreciate it. Many of you mentioned that she should buy a cheaper house somewhere else. The reason she is now in the DC area is because that is where my wife and I live. She moved down to be near us. The condo was actually much cheaper than her old house (which is how she was able to save the $100,000 from that sale). The condo she bought here is basically as cheap as they get in the DC area. Before moving down, she had no savings what-so-ever and I was helping her pay her expenses beyond what she could afford with social security. Her cost of living has actually gone down since moving to the DC area, and it is a much more pleasant place for her to retire with lots of interesting activities for seniors. Another advantage of her living close to us, is that when my wife and I eventually have kids, we will pay her to watch them for us while we are at work. That will significantly increase her income, and also allow my wife and I to save some money. I received some great advice on what to do with her money. I am thinking I will probably advise her to put it in a lower risk bond fund that pays out monthly dividends with minimal exposure to stock funds, along with a simple high yield savings account. A 4-5% target withdrawal per year seems reasonable. Buying an immediate annuity could potentially be a good option as well. I will definitely look into it. When she runs out of money down the road, I will either supplement her income myself or have her move in with me. We will cross that bridge when we come to it.

As a very rough rule of thumb, planners use the "4% rule": You can start withdrawing 4% of your retirement savings each year. That's your "salary" from your savings, and you can adjust it with inflation. With a balanced portfolio of stocks and bonds, you're unlikely to run out of money. So as a ballpark figure, she can afford $333 per month. BUT: I would consider that a maximum, not a good amount to withdraw. The figure is based on 30 year periods from the past century. At 58, your mother is likely to live more than 30 years. Also, I think it's unlikely that US stocks and bonds will match the last century's performance for the next 30 years. If at all possible, she should work more - even part-time would help. But if she's collecting social security at 58, I'm guessing she's disabled, and working might endanger those benefits. That's tricky, and I don't really have any expertise in this area. Of course, it's all moot if she really can't work at all.

I would suggest investing the sum in a basket of conservative, high-yielding stocks. You can probably eke out an average dividend around 4%. 4% of 100,000 would be $4000 a year, or $333 per month (minus taxes). That's not a lot, but at least it would provide some spending money. If she needs a little more, then I would suggest withdrawing at most 3 or 4% of her invested sum each year. If she earns 4% in dividends and withdraws 3%, that would give her $7000 the first year, or more than $500 per month. That will help provide some spending money, and over the long term, her investments will hopefully rise in value enough to offset her 3% annual withdrawals. Any extra growth is gravy. Just my 2 cents, and thank god she has social security.

Human: I want to pay all my bills with a credit card that earns airline miles. The problem is they normally want a checking account and routing number. The checks CCs give people are cash advances and do not normally yield points. tl;dr need a check writing service that accepts credit cards as purchases.

You can't. If the bill collector doesn't accept credit card payments, then you can't pay with a credit card.

See if you can pay the bill online through their website, some phone/internet/utility companies allow this

Human: Is it possible to tell my employer to NOT withhold any taxes? I want to do this because I believe that I am responsible with my money, and that I can put it into a pretty safe investment (mostly consisting of bonds), make money off the returns, and then pay the taxes at the end of the year. Is this a horrible idea?

You need to make quarterly payments or you're going to get hammered with fines. You can't just dump all your taxes to the IRS on April 15 every year and wipe your hands clean.

If you end up owing too much at the end of the year the IRS will tack on penalties. To avoid penalties you can pay quarterly estimated taxes. The real question is can you earn enough interest every 3 months on the money to merit the hassle of filing quarterly estimated taxes?

Human: Received my first small commission check, not sure what to pay off or what to hold on to in cash, etc. **Check:** $6,656 **Other Income:** Work on weekends in retail making $8/hr @ ~ 10 hrs a week - just starting this week. **Debt:** Credit Card: $3,600 @ 15% Credit Card: $1,100 @ 0% Credit Card: $1,600 @ 13% Student Loan: $13,400 @ 6% Student Loan: $3,300 @ 5.5% **Expenses:** Minimum payments on CCs and student loans + $200 on food and entertainment **Pipeline:** $120,000 commission from Property 1 $33K commission from Property 2 I expect said properties to sell within 1 year. Advice on what I should pay off (if anything) and what I should hold onto for cash reserves. I only have about $600 left in my bank account. I will also have to pay taxes on that commission check, so I have to keep that in mind. I am thinking pay off the $3,600 and keep the rest in a high yield savings for my spending? Pay the taxes on the $6656 with my next check? Appreciate any help! Thank You! ::EDIT:: Sorry about the format, not sure how to fix it. Assistant: You don't know when the next check is coming. Don't count on any of it until it is in hand. First, figure out what your expected tax burden is on the $6656 and *make sure you can pay it when it is due*. This means you either set it somewhere safe, or you pay off a line of credit which you could use to pay the tax if it comes to that. Then set aside enough for a few months (6 would be good, you have no idea when you'll be paid again) worth of minimum payments, and pay the rest to the $3,600 card. In the meanwhile, see if you can transfer the 13% card to something lower interest. Human: I am going to make the smart move and set the taxes aside. I just figured if the properties I have right now dont close, I wont have to pay really anything in taxes haha. Assistant: You would still owe payroll tax, right? Human: That is probably right. Unfortunately since I haven't made any money yet I am embarrassed to go talk to a CFP or CPA to see what exactly I need to do and owe when that time comes.

Do the research now. You may be on the hook for estimated payments on a quarterly basis.

Don't be embarrassed. Any CPA worth their salt will be happy to talk to you about any questions you have and planning for the future.

Human: I'm a freelance designer living in the US, and my primary income is from a small Canadian company. I have not filed taxes since 2009, when I left the military to pursue freelance work. To further complicate matters, I am finishing my degree using the GI bill, which provides a small stipend. Up to now I have been avoiding this confusion and just not paying taxes. My friend suggested I get it sorted out, and that I might actually get some money out of it since I might be under some threshold. I make roughly $28,800/yr. I really should go legit, and if I need to pay back taxes, then so be it (although I really cant afford it). I'm just wondering if anyone has some advice for how to go about this and hopefully not get screwed over. Thanks!

I think you might need an accountant or tax lawyer. If you want to try this on your own, some of the online tax firms (Turbo Tax, H&R Block) may allow you to file returns for previous years. Regardless of how you prepare the returns, you should compile all of your pay stubs and bank statements to get an accurate accounting of what your income has been over the past 2 years.

I'd definitely consult with a CPA, you aren't alone they see this all the time.

Human: So I work at Con Edison (the electric/gas company in NYC hence the throw away name) where we get an 11% match with our stock purchase up to 20% of our base. So far it's been a really good stock to me, good dividend, pretty stable. Here is my plan for our honey moon money we get from the wedding which we plan on taking some time next year: * Take a certain amount of it, whatever we aren't using to pay off my wive's small loans (car loan, chip away at her student loan, etc. I'm all paid off with everything) and just put it in a savings account. * Go full tilt on my company's stock purchase plan (20% of my salary) to get the 11% match. * Pay the mortgage with the wedding cash. Pay check would be less because of the full tilt so I would need it. * Year later, or even less, take the money out (you have to wait a year for it to mature but I have 30k matured in there right now) and spend on a honey moon. * Success? I have 12+ months in an emergency fund, 401k and Roth are already maxed out. Already put $1100 a month in the Company Stock, and about 1k in some random stuff in Vanguard. Just wondering if it's worth it to go full tilt to try to make the most out of the money. Thanks!

It's awesome to take advantage of the 11% instant profit, but ask yourself this question: If you had a million dollars to invest in the stock market right now, would you put it all in Con Edison? If not, you need to be selling a lot of your ED as soon as the year is up and diversifying. Do this every year, or you're signing up for **huge** risks by having your entire savings in a single stock. EDIT: as far as the honeymoon is concerned, you sound like you're doing fine. Congratulations!

I'm using a honeymoon registry. If you don't want pepper grinders and towels, you get people to pay for lunches, train tickets, hotels and so on. Its basically a cash grab in a visually pleasing, fun way. My fiends did it and got $12,000 for their honeymoon, we're at $1500 already and getting married in May! There's a bunch of websites that do it.

Human: Here's the deal... I want to be a teacher. It's the only job I've ever had interest in as a career. However, once I started college, my career was just about the last thing on my mind. I graduated high school in 2000, didn't start college until 2003. Graduated college in 2007. Took my time getting a degree, used loan refunds to pay for books, rent, and booze, and now I'm really regretting it. I have two loans, one for only $1400 and the other has a remaining balance of about $75K. Like I said, I took my time and took more than I needed to pay rent, etc. I really wish I had thought ahead, but regretting won't get me anywhere, so I'm just trying to move forward. In addition to not being smart about the money, I didn't really attempt to make good grades until second semester of my Junior year. My lack of focus in the classroom has left me at a cumulative GPA of 2.71. Here in NJ, one needs at least a 2.75 to teach, which is why I'll hopefully be taking classes at a local community college over the summer to get the GPA up. I am currently one of the jobless, so I'm thinking of going back to school to get a masters in secondary and/or special education. I know unemployment will partially pay for some schooling (if the position is "in demand", which, somehow, teaching still is in this state), but I doubt it will cover all of it as I've already been out of work six months and my first extension just kicked in today, actually. I know I can get further extensions if I'm in school, but I don't know if those extensions will take me through all ~2 years it would take for me to complete grad school. If I can get extensions for the duration of grad school, then I'm sure I can get tuition waivers (which is what I'll hopefully be getting for the aforementioned summer courses I'm looking to take ). But if I can't get extensions for the entire time I'm in school, is it worth it for me to just take out more loans (ONLY what I need to pay for the classes and nothing more) to the amount of somewhere between $15 and $30K? If I were to do that, I'd be north of $100K in loans. Again, is it worth it to follow a dream? Yes, I know I was irresponsible. Trust me, I've beat myself up enough for it and still do. I'm doing all I can to make things right. That in mind, constructive advice is more than welcomed. Thanks.

Have you considered [Teach for America](http://www.teachforamerica.org/)? The minimum GPA is only 2.5, they offer student loan assistance while in the program, and you get your teaching certification. There's also [NYC Teaching Fellows](https://www.nycteachingfellows.org/becomeafellow/eligibility.asp), which has a 3.0 requirement, but considers applicants with lower GPAs. Philadelphia has a [similar program](http://webgui.phila.k12.pa.us/offices/t/turn-to-teach). Whatever you do, do not pay/borrow for your masters. You'd be better off moving for a few years to be able to start teaching right away under one of the programs mentioned above, or a similar program. Many of these programs cover not only your certification and training, but will also subsidize/cover the cost of your masters.

No, don't take on my debt. You already have too much to be practical for a career as a teacher. Having 100k+ debt with the expectation of a teacher's income is just suicide. 70k+ is bad enough. Either go the teach for america (or equivalent) route, or prove this is *really* your dream by doing other work for, say, 5 years while really living on a shoestring so that you can get some cash together.

Human: I discovered in the mail today that my Bank of America account that I closed 4 months ago in person at my local branch was alive and well. Apparently, my employer accidentally transferred a reimbursement a month ago to my old BOA account, which under Bank of America policy reopens the account along with a $12 MONTHLY fee! Just wanted to warn others who closed Bank of America accounts to make sure you have removed your account info from everywhere (utility providers, credit cards, employers, etc).

I read elsewhere that they never actually close accounts, and once something like this happens, it's right back open again. It's a pretty sneaky way to hit some users with fees when it does happen...

Yep, sounds like BOA. I went in to close both my accounts back when everyone was doing it, did it just fine, got all my cash back, and went home. Then BOA sends me a letter saying some shit about my account. I ignored it at first, then a second one came. I had to call them and it turned out my savings account was still open?... It had never been closed in the first place.

Human: I've seen lots of these posts before, but I want to ask the question for my specific situation. I'm in the 33% tax bracket and have about $100K in student loans at around 6.5% interest. I'm already contributing enough to 401K to get all of the matched funds my company provides. Should I put extra income into 401K so it can grow tax free, or should I take the tax hit now to pay down the student loans faster? EDIT: Thank you for all the replies. I'm surprised at the conflicting advice. I was hoping for an easy majority on this. Here is some more information that is being requested: I support a family of four, and I'm not currently maxing my 401K. We live below our means so I do have the ability to pay things down. I honestly thought the 401K maxes were much higher, but it looks like 17K per year, so that seems like a no-brainer to max that plus an IRA and send everything extra to the student loans. I really was looking for the mathematical best answer since by my rudimentary calculations is was fairly close and I wondered if I was missing something. I guess the conflicting advice points makes sense when the options are fairly close. Thanks again for your thoughts on this.

At 6.5% I would pay the student loans. Our loans are at 2.5% and 3.5%, so we're not paying them off quickly since I feel like I can get better rates with investing. You could also consider doing half and half, so you build your retirement funds more while still paying down the loans.

You said you wanted advice for your specific situation but you didn't really give us that much. Not knowing anything about your lifestyle (the expenses side) other than the loan or your assets (example: do you have an emergency fund or other savings?) makes this difficult. Given that lack of information, my advice would be: * Contribute maximum to 401(k) to get match * Max out a IRA (you might do better to max out a regular IRA, rather than a Roth, it really depends) every year. Then, savings priorities would be: * Build up an emergency fund of 6-12 months expenses depending on your tolerance or aversion to risk. * Split additional money between saving for retirement, saving for investments, saving for things, servicing debt and paying yourself an allowance. Someone told me that the difference between people who make a lot of money and those that don't is that the high earners can have more fiscal goals. That helps me for some reason. I guess I'm saying with your wage, there's really no reason you can't do both unless you've already established other goals.

Human: EDIT: [Here is a screenshot of my weekly paycheck, can I do anything with this to help?](http://i.imgur.com/noGKc.png) Hi r/personalfinance! I've read so many posts where fantastic advice is overflowing and I need some help. Here is a breakdown of my situation for context: * 26 years old with an undergrad degree * Income: I have a job where I work from home and make 40k/yr, which after taxes and other deductions my take home is just over $1,000 every 2 weeks * Expense: Car payment is $300/month (2004 Ford Explorer XLT) * Total Owed for Car: About $5000 * Car Value (Kelly Blue Book): About $4000 * Expense: Car insurance is $100/month * Expense: Rent is $200/month (I live with mom) * Expense: Student Loan (Sallie Mae) is $600/month * Expense: Student Loan (Federal) is $300/month * Total Student Loans: About $50k * Expense: Cell phone is $20/month * Credit Card: Capital One is maxed at $500 (used it for an emergency car repair), minimum payment is $15/month * Credit Card: Orchard Bank is maxed at $750 (mostly for a plane ticket (I volunteer coach a team and we're flying to nationals), plus assorted other expenses), minimum payment is $25/month If you need any other information that might be relevant, I'm more than happy to share. I just feel like every week I spend my whole paycheck. I feel like I can never save money, and I'll never be able to move out unless my job gives me a promotion/raise. Even then, it'll cover rent but I'd still be breaking even. My company's annual raises are supposed to be on April 6th, but I don't know what I'm getting yet. What are some things I can do to lower my expenses, while I try to get paid more at my job? EDIT: Added total car information. EDIT: Another question - If I decide that my car payment is simply too high, and I don't need the car anymore since I work from home, can I just call the bank and say "Come take it, I'll stop paying and you can have it back"? Would that work? Would they sue me for the payments? How much of a hit would my credit take? Has anyone done this before? Assistant: All that stuff you listed comes to $1560. That should give you about $400/month left over. Where does that money go? If it goes to Starbucks and bars and crap, then give yourself a budget of $100/month "fun money" and put the other $300/month toward your credit cards until those are paid off. Cut down on eating out--drink at home and have potlucks with your friends. :) It's fun, I promise! Also, you're not going to like this, but I think you should sell your car. Pay off your loan and buy a beater with *cash.* You work from home, so you don't need a fancy car or even something super reliable for a commute. It just has to get you from A to B. You'll also be able to save a lot on car insurance--I pay about half of what you do because I don't need full coverage on a fully paid-off car. You could have an extra $350/month right there by getting rid of the car payment and the necessary insurance. If you are "underwater" on your car, can you sell it and then go car-less for a while? Maybe your mom would agree to let you borrow her car from time to time, since you don't need to drive on a daily basis. I know that's a big change, but honestly, lifestyle changes are *necessary* if you want to have big financial changes. My boyfriend and I have one car that he uses for commuting, and I take the bus every day. It was weird at first but now it's so normal, and it's great because I have so much more wiggle room in my budget without a whole second car's worth of gas, maintenance, insurance, etc. So completely worth it! Human: Like someone mentioned above, I'm going to start keeping a daily spending log so I can use my excel skills to analyze where my extra money is truly going. The problem with selling my car is that I'm upside down. It's worth $4k and I owe about $5k. I love the idea but I don't think I could do it for 6 months to a year, when selling it would give me more money than I owe. Mom's a no-go on borrowing the car. She's hugely worried that if something goes wrong, she won't have a car to get to work and lose her income, etc.

Damn. If you were to put that extra $300/month toward your car loan though, you could pay off the $5k car loan in just 8 months. That would give you a ton of extra money ($600/month!) to go toward your other debts and eventually rent. It's totally doable! Good call on the spending diary. I've really found $100/month in "fun money" to be more than enough for me to have fun, social weekends without breaking the bank.

You should check out [mint.com](https://www.mint.com/). When I started using it I was surprised how much I was spending in certain areas. I was able to adjust my spending and keep track of it. It has done a lot to help me save up money just by keeping an eye on my spending. What I do is I set a monthly budget way below my monthly income. Just take some time and careful managment to get on the right track.

Human: I am a college student and I want to build credit so that it's not impossible for me to get a loan when I graduate. So I had my parents co-sign a credit card so that I could start building my credit score. I was under the impression that having a credit card that is regularly paid off would help me rather than having no credit whatsoever. I have heard that since I pay my credit card online and pay off any charges within a few weeks, that I am not actually building my credit. The reasoning is that since I pay it off so quickly no charges ever appear on a statement and that means I am not actually building credit. Is this true?

It seems like the answers are unclear here, so how about this... Once you receive the statement with the current balance on it, pay it off. My CC companies don't charge interest until 26 or 27 days after the billing cycle has closed. If yours is the same way, then this is the way to go.

It's not going to affect your credit one bit. Whether the CC company reports $0 or $5 or $10. Just so long as your total credit used / total credit available stays below 15%, you have the highest possible credit score (of course there are other factors such as length of credit history, type of debt etc). Also, instead of paying your card a bunch of times per month, just set up your credit card to Auto-pay the full amount on the due date. That's how I have all my CC bills (and all other bills). Everything is on autopilot.

Human: I got ~$2000 in I-bonds from my tax-return this past year. Since then I've read a bit about them on the Motley Fool website (wiki? I can't find the page right now). They seem to suggest that **I-bonds are a poor investment for young people**, since when they mature you'll be at the height of your earning potential (in your 50's). You still have to pay taxes on the income when you redeem them. I was hoping that an I-bond would be a better investment than stashing it in a savings account that loses to inflation. Am I wrong? The time-frame to redeem would be ~10 years, for a house. All retirement/emergency fund/debt considerations are already accounted for. If I-bonds aren't the way to go for intermediate-savings, what is?

Okay, $2000 for 10 years. Let's say the I-bond is giving you about 3% annually. After 10 years, you have $687 profit. With marginal taxes at 30%, you're left with $481 profit. Now, bank CDs. Only around like 2% now. Each year, you're taxed as you receive the interest. Let's say 10% marginal tax (exaggerated, because after all, you're afraid of what happens if your tax rate goes up, right?), so your annual gain is only like 1.8%. After ten years, you've made $390 profit. So there's certainly a scenario in which I-bonds come out on top. In fact, I'd say that I-bonds will almost always beat CDs or savings accounts. If not, what's the difference? If our example had gone the other way, it's still on the order of $100 over ten years. Not the biggest mistake of your life.

In general, things you read on the Motley Fool are not good advice.

Human: I don't want to be contributing to an IRA or anything for retirement. I'm at a time in my life where I have few expenses, and decent income, but that will change in the next ~10 years, so I'd like to get my savings out easily when it comes time. From what I read, mutual funds could be expected to get 6-8%, while the best savings account I can find is only 1%. So what is the best way to essentially use a mutual fund as a savings account? Is there a way to get around the ~$10 fee from brokers every month? Yes, I know mutual funds aren't guaranteed, and I should (and do) have actual savings. Assistant: > I don't want to be contributing to an IRA or anything for retirement. You are going to regret not saving for retirement in the future. Human: Simply because someone does not save money and earmark it for retirement doesn't mean they aren't saving. I never understood why people all say you need to setup an IRA or 401K early in life. I figure, as long as you're saving, you're in good shape. Why does it need to be in an account labeled "retirement"?

Tax advantages. That's the whole reason.

Please look into the tax advantages. Also, some money from some retirement accounts may be taken out before age 60 without paying penalties. Also: if you would have paid 20% in taxes and now don't, then even if you take the money out 10 years later and have to pay 20% taxes then, that 20% extra money had 10 years to give you some extra growth of your total portfolio.

Human: A little bit of backround: i'm 19, I live in edmonton, alberta, canada. I have vehicla payments currently and that is the only thing that would have had an impact on my credit so far. I got a co signer to be approved at first, and now i'm just wondering if theres somewhere that could tell me how much i could be approved for. I know i could get my credit score, but i dont know how much that would actually tell me, more looking for a dollar amount for personal curiousity. I would like to see exactly how my payments thus far have affected my credit. Any help would be greatly appreciated, thanks.

A bank would tell you.

I'll gently suggest you should think about how much you want to spend, not how much you could get. My experience is you could probably borrow more than you would want to have to pay back.

Human: i need to know if there's anything at all my boyfriend can do about this. my boyfriend did two tours in iraq so his college expenses were/are paid for by the G.I. bill. however, at the time that he was attending college (fall 2010) they had a crappy system set up to where he had to pay his tuition in full first and then they reimbursed him tuition and room and board. he had been attending school for a year and a half and was one semester away from receiving his associate's degree. however, he wasn't doing well in his spanish class because he hates spanish class and was working full-time as well. also, his major was spanish because the G.I. bill only covers certain degrees (ridiculous). so he drops out, and that's the end of that. summer 2011 comes and we move across the country. now, it's spring 2012, still living across the country. someone from the VA's office called his phone a couple weeks ago and told him that he has a debt that is about to go into collections and he needs to take care of it right away. he was shocked because he never received anything in the mail telling him that he has a debt (and i know this is fact because i check the mail as well and have never noticed anything urgent). apparently they have been sending these collections notices to his ex-wife's house (they divorced and he moved out spring 2010). he filled out a temporary change of address form (good for 90 days) after he moved out, so he receives most of his mail. somehow the federal government couldn't track him down, though, until now. he set up a payment plan as soon as they called him. well, now they've taken his refund. we need that refund. i'm in graduate school and i have no income. i'm even listed as a dependent on his 1040. **TL;DR:** my boyfriend was reimbursed using the G.I. bill but dropped out of school. we didn't even think that he would have to pay that back because we don't see the G.I. bill as a loan (it does make sense to us, though). they were sending collections letters to the wrong address for over a year even though he filled out a change of address form. now they took his refund. what can we do? anything? nothing? help.

I'm a military spouse, and I've never heard of the GI Bill only covering certain degrees. I know veterans in all sorts of fields using GI Bill money (social sciences, sciences, liberal arts, fine arts) It kind of sounds to me like your boyfriend isn't telling you the whole story. All military-related money you get has to be paid back if you fuck up in school unless you can make a really good (and timely) case about why you fucked up. That goes for military spouse scholarships as well. I even had to take an "assessment" where I acknowledged that I knew I had to pay the money back if I dropped out or failed to get my scholarship. It seems unlikely to me that he did not know about this.

If VA gives you the runaround then contact your congressperson for help

Human: I currently owe approximately $24,000 from my undergraduate studies (Bachelor's of Civil Engineering), and have been recently accepted to the Water and Environmental Management Masters program at the University of Bristol (England). It's a one year program, and the estimated total costs come in around $38,000, with tuition covering about $26,000 of that. I hope to be making about $70,000 per year when I do get out. Is $65,000 too much student debt to enter the job market with?

People in this subreddit are so against debt they will all say its too much. But you have to ask yourself this question. If it will get you a better job then do it. If you can take living in debt and not getting as much as you want because you are paying it back then go for it. Really it comes down to only a choice you can make.

1 dollar is too much.

Human: I am 24 years old. I have 4 credit cards 3 of which i have had from the age of 18. I have no outstanding ballance and have always paid off the debt in full by the end of the month. I have around $4100 in combined available credit. My average credit score is around 710. I have been told that I do not have enough credit history for most major purchases that I have considered. I have been told by co-workers and friends that I should take out a small loan (around $3000 or less) at the lowest possible apr% that I can find. Then use that money to pay back the loan. Sure I would be paying more money as I would have to pay interest, but would that be worth it in order to boost my overall credit score and credit history? **EDIT** Thanks everyone for your input. I am going to hold off on any potential loan until I absolutely need it such as a home purchase or car.

No.

No.

Human: This is the first time in years ive done my taxes because i have finally had a job. After i did my taxes ( i went to a major tax preparer) they told me i would be getting back 806 dollars. I waited almost a month only to get a letter yesterday saying i owed over 1000 in taxes. So I'm freaking out then i call them and they tell me i didnt file for 2008 and its about the funds i had invested after my father had died and i sold our house. i had cashed those funds out after a while because i had no money no job and borderline homeless. Now the IRS is telling me i owe on taxes for all the investors and bonds my money had been in. She then tells me i have until April 27 to file for 2008 and all the contact info will be mailed to me in 10 days and if i dont i will have to pay the full amount of 16,589 dollars there was only 20,000 in the account. i have nothing as it is and now i have to find a lawyer or some help because i have no idea what im doing honestly.

I assume that what you owe is capital gains taxes on the funds that you sold in 2008. When you sold the funds, you should have received a 1099 statement from the bank which details the amount of profit you made on the sale, which is the amount that you owe taxes on. If you don't have the 1099, ask the bank to provide you with another copy. Take this and all other income documentation that you have to the people who did your taxes for this year and ask them to help you file an amended return for 2008.

A lawyer is not as important as an accountant (although you might be able to find an accountant who is also an attorney). Put on your big boy (or girl) pants, ask around for recommendations for a CPA. You are going to owe some money for not filing on your gains in 2008, but it shouldn't be that big of a deal.

Human: Like what kind of deductions can I take for working from home and what kind of stuff do I need to save so I can take any deductions?

Are you an employee? If so, they need to be taking care of taxes on your paycheques, and you don't get to deduct anything for tax purposes. Direct expenses should be reimbursed by your employer. Are you freelance? If so, you can deduct reasonable business expenses. See below to see how to make the determination: http://www.irs.gov/businesses/small/article/0,,id=99921,00.html http://www.irs.gov/pub/irs-pdf/p1779.pdf (pdf) http://taxes.about.com/od/taxplanning/a/freelance.htm http://www.awn.com/articles/motion-graphics/irs-and-freelance-dilemma

One thing that you may be able to take advantage of is the home office deduction. You are eligible for this if you have dedicated office space that is used at least 50% of the time for business. You have to calculate the square footage of this space, and you can deduct a portion of your rent/mortgage and some other expenses based on it. Say your home office is 10% of your square footage in your house. You get to deduct 10% of your mortgage expenses. [Here](http://www.irs.gov/businesses/small/article/0,,id=204169,00.html) is the IRS site on home office deductions for more information.

Human: Ok, so I have been wanting to move to discover as my big purchase credit card for a while but just never did. I guess I actually need some advice on if how I am treating my finances is even smart....so heres how I do it: - I have an American Express zync card. This is my main card and I use it for all of my day to day purchases. Because its AMEX it forces me to pay in full every month. So I do! Ive never missed a payment in the year I have had it and I generally like the card itself - Then I use my Chase visa debit card for all purchases where amex is not accepted - Finally I have my chase freedom card for big purchases. This would be like an iPad, tv or something else that I dont want to pay fully outright. Also, I have $1500 credit available and rarely rarely ever have a balance over $700. Very very large purchases I save up for. This is just for those couple hundred dollar purchases. Ok so my first question is is this a good plan? Im especially concerned about the big purchases. I have the money in my savings that I could use to purchase these items but I really dont like digging into there. Id rather pay the interest the purchase brings and spend it out of my income over 2 or 3 months rather than dig into my savings. Now the reason why I want to dump my chase card after two years is that it carries a 22% interest which I believe is high for me. Ive been getting letters that with discover it would be anywhere from 9-18% after 15 months of 0 APR. Should I simply drop chase freedom and go to discover as my backup card or because of how long I have had my chase card (about 2 years) just simply call chase and try and get them to lower it. I havent seen it in a while but my credit score I believe was 720+. Maybe high 600's but that was because I had a balance one of my cards I think. I just havent found a trustworthy place to check my credit score (anyone know a place that wont try and charge an arm and a leg through hidden fees?). Anyways, any help would be appreciated. EDIT: Actually chase just calle me to alert me that someone overseas tried to use my card and charge $232 on it. They declined the card, imediately notified me and set me up with their fraud agency. We discussed it and they cancelled the card and reissued me a new one...so yeah I kinda want to stay with them now but I do need the lower interest rate.

Carrying any balance on a credit card that charges interest is something to avoid.

My thoughts is never carry a balance and use the Amex card for big purchases. Instantly doubles the manufacturers warranty.

Human: So I've got about 70K ready to invest, yet I'm also living in a crappy one-bedroom apartment. If buying a home at 200K with a 2.9% rate, I calculated that blowing my wad on a down payment would net me around 10K (17%) over the 25 year period, compared to a 5% down payment. If the rates go up, the investment would be exponentially better, and it might also crash the financial market... So basically, I'm not sure if I should go with big down payment / low stock investment, or small down payment / big stock investment. Many thanks for any help.

So the minimum downpayment is 5% is 10k. If you put in the extra $60k, that means you won't pay 2.9% interest on that $60k. Assuming the interest rate of the mortgage stays stable, that means you have an annual "profit" of that $60k of 2.9% . If you could put the $60k somewhere else instead and make a steady 4% profit (maybe look into CDs or certificates of deposits or government longterm bonds), then you would make more profit on this money, 1.1% profit more per year than if you put it towards the mortgage. Now if you would invest this money and make an average profit of 5% over the years, you would make 2.1% extra per year (on average) when compared to putting it towards the mortgage. But of course with investing comes risk. A crash in the financial market does not always have to mean that your house value drops as well; and it works the other way around as well. If your house, for example, is in a good neighborhood and people can still find a job there, your house value may not drop a lot, even if the economy isn't doing too well. The other way around, even if the economy is doing well overall, your house value may drop if the number of jobs in your area is decreasing or the neighborhood is going downhill for other reasons. So I think you really have to take a good look at your position. Do you really want to buy a 200k house? Is it worth 200k, or is your area still in a housing bubble? Does the job market look good? Is the house in good condition and is it suitable for many kinds of families (you'll have to keep it that way to make it easy to sell)? Can you find a relatively safe other investment with > 2.9% profit annually? You are of course free to invest that $70k in whatever way you like; I can imagine you split it up over several investment options (pay $20k on the house, put $10k in a house repair fund, put $20k in bonds and $20k in stocks, for example).

You have to pay CMHC insurance if you put 5% down. You also have to pay more interest as interest rates rise (and they will).

Human: I just don't see it. I get paid biweekly and 2 times a month it just so happens that I get 3 checks in a month instead of two. I don't see why this is such a great thing like everyone else here at work seems to say. Why is it better that I was paid on the 2nd, 16th and 30th as opposed to being paid on the 4th, 18th and 1st of next month. The check I receive on the 30th is going to exactly the same thing as the check on the 1st would have. Maybe I'm missing something?? Thanks for the help in advance.

A place I worked at did payroll deductions for health insurance only on the first two checks in a month - so if you had a three paycheck month there were no health insurance premiums taken out of the last check.

i believe the 3 paycheck month happens 3 times a year. when you are on a tight budget that for 75% of the months of the year is usually paid for with 2 paychecks, when you have a 3 paycheck month, if almost feels like a bonus or extra money. my 1st job out of college paid bi-weekly. i was a broke post-college kid so that 3rd paycheck of the month usually was a chance to save a little more, pay off a debt a little quicker or a little extra spending money. now i get paid on the 15th & the end of the month so it's always 2 paychecks per month and i get the same amount of money every paycheck & every month.

Human: Let's say I get a loan for like $2000 and use that very same money to pay it off making minimum payments month to month? Sorry if there is a very obvious answer to this I'm just thinking of ways to build my credit before I take out student loans

1. This is a horrible idea as you would end up paying ridiculously high interest rates. 2. You *don't* need credit history for student loans. 3. A student credit card, or any card marketed towards persons with no credit history, would better help you build credit provided there are no annual fees and you pay the full balance each month to avoid interest fees.

Why would you do that?

Human: Hey all, hope your day is awesome. I'm looking for a little guidance and criticism as to what I should do here. My background: -24 year old male -Excellent credit, ~750 score across the board. -$60k base salary living in Seattle, about $3700/month after taxes. -$10,000 student loan debt @ 3.8% -$1,200 personal loan debt @ 13%, used on a motorcycle -$1k in combined checking/savings -5% in 401k put away each year -$2000 in combined expenses each month (rent/food/cell/loans/etc) I believe I'm going to stay with my job or at least this city for quite a long time. I'm looking to buy a house in the near future. It's unreasonable for me to have my motorcycle anymore, I listed it and will likely sell it for ~$3800. I plan on paying off that 13% loan right away. I use my credit cards as my emergency fund for now, not completely worried about this yet. I have not exactly started saving for a down payment yet, just paying off that personal loan and throwing some money at the student loans. I figure hitting the student loans is now not the best idea and I will likely see better return with my money in the long run investing in a home for myself. I have what will be about $30,000 in stocks (after tax) that will be vested in the next 16 months. I plan to use this as a down payment. I will likely see a bump in salary to $80,000 in the next 6 months as well, pretty confident here. The tricky part for me is I currently don't have a car and walk or take the bus just about everywhere. Where I want to move I will need a car. Car obviously comes first as I wouldn't be able to get from my new home to work, what would be the best option here? I assume taking another loan out before getting a mortgage is probably a bad idea.

I can't believe no one has said this yet, but please establish an emergency fund before you buy a house. An emergency fund is for things that you *can't predict,* such as losing your job, a medical emergency, getting into an accident and not being able to work while you recover, a death in your family, etc. When something like that happens, you don't want to have to worry about money, and paying 18% interest on a credit card would definitely be worrisome. You have $1700 left over per month. You can set up a 6-month emergency fund in like 7 months. Just do it! I agree with you that you shouldn't throw too much money at your student loans since the interest is so low. The other stuff sounds good! Also, I've said this before but I'm saying it again. Assuming you're single now and that going to get married before you start a family, your future wife will probably want to have a say in where you live and where you start your family together. Most people end up moving when they get into a serious relationship or get married so they can be in "our" place, rather than having her move into "his" place (or vice versa). Personally, if you are single right now, I would buy a "starter home" or townhome or condo, but not a place to raise your future kids.

Credit cards are not an emergency fund. My order of payment would be 1) motorcycle 2) 1 month emergency fund 3) 10k loan (if you want) 4) 6 month emergency fund 5) cash for the car 6) down payment & closing costs for the house 7) increase retirement savings to 15% of gross This method would take more patience than many people have, but with the amount you're saving each month, I don't think it would be terribly long.

Human: I question this as a curiousity. I find that in the personal finance subreddit, it's typical to have several thousand dollars in credit card debt. What spurs purchases that put you in those situations? Are people paying other bills on their credit cards? Purchasing things on credit for rewards? I have exorbitant student loan debt, but no credit card debt and am finding it difficult to comprehend. Can you elaborate on your personal experiences?

I find three mains trends (all of which I've experienced personally to some degree over the years). * The slow bleed. You never intend to carry a balance beyond maybe a single month, but a few small purchases here and there regularly start racking up the balance and 18 months later you have $4000 on the card. * The emergency. You have no savings and you *need* something. Prescription drugs, rent, groceries, up-front medical costs, etc. This often overlaps with the "slow bleed". * The shopping spree. You max out the cards on three new phones, six wristwatches, designer clothes and god knows what else. Associated with substance use and/or mental illness.

I think the primary reason for credit card debt can be ignorance to actually see how much debt you have... with more e-statement/e-bill, people dont get hardcopy in their mail and then they dont log-in to their credit cards but continue to spend... that just piles up and coz they never looked.. they never knew what happened...

Human: This is what I asked: > I would like to upgrade my credit card to one with a low APR and without an annual fee. Is it possible? If yes, what's the process? This is their reply. > Unfortunately, we’re unable to make any changes to your account. If you’d like to apply for a different account, you can view the different cards we offer by visiting our website at www.capitalone.ca. Keep in mind because you already have an account, the only card you are currently eligible to apply for is an account that includes rewards. In order to apply for an account that does not include rewards, you would first need to close your current account with a zero balance and wait 45 days. You can apply online or by contacting one of our Product Specialists at 1-877-277-5901. I have 4 credit cards. * RBC Credit card - $2k - 20% - maxed - 4+ years old - $39/yr - rewards (gonna keep this one) * Cap1 - $2k - 15% - almost maxed - 1+ years old - $79/yr - no rewards/cashback * CIBC - $500 - 20% - almost maxed - 8 months old - $0/yr - dividend card (gonna keep this one) * BMO - $3.5k - 20% - ~$600 on it, gonna pay it off today - 1 month old - $99/yr - air miles card (got 1000 points signup bonus) Suggestions/advice on when to cancel the capital one credit card? Any other suggestion? Thanks.

Pay it off, and then cancel it. When? As soon as possible.

Convert all of your cards to the versions that have no yearly fees. For you to just *break even* on those airmiles on that BMO card you have, you need to spend $14,250 a year just to get enough airmiles to pay off $99 in gas gift certificates. (Damn, they just went from 175 miles for $20 of gas to 190 miles.)

Human: I am a college senior, graduating in June with Grad School to follow. This summer, my friend and I are thinking about traveling to Europe to celebrate our graduation. But I am broke. And in debt. I've got about $20k in student loans right now (out-of-state tuition sucks balls). My question is: should I take out a student loan to cover/assist with the trip cost? Or should I not go on the trip?

Its like putting the whole trip on a credit card, bad plan.

This won't be popular, but travelling is just as enjoyable later in life. Spending the summer working will also give you valuable real world experience and won't put you further into debt. If you want to increase your cultural understanding then you could learn a foreign language or join a cultural exchange group. Good luck !

Human: Long story short... worked the job of my dreams for 10 years. this happened: * Bought a house in SoCal for 220,000 in 2000 * Did not save a dime Now I'm 38, take home after everything is 4500 a month. In 4 years I have saved 40K with employee contributions. Here is the kicker. I live pay check to pay check. Bummed. Here are the basic stats per month: * Mortgage (with insurance) 1500 * Phones 179 * Fios 120 * Gardner 80 * Gym fees 110 * Gas (petrol) 320 * Utilities 350 * Food 600 * Give to church 500 Any help will be so thankful. Pointless Pancreas Update 1: My apologies for not being clear. I'm working at my writing and the feedback assist me tremendously. Now to answer a couple of questions. * My main question/request is identifying the spending and developing a plan of attack on saving. Maybe a spreadsheet or "mint?" * Yes I'm married with a two year old. I have included diapers, wipes, and even ancillary items (razors, cup of coffee, etc.) in the monthly food total. * I'm in graduate studies and items like the gardner is a toss up. It seems worth it to spend $18.50 a week on a job that would take me at lead two hours per week to do. Those hours I use studying or playing with my little one. * I have diabetes. I run 3-5 times a week (I have trails near my house) and the gym cost is actually Krav Maga. I have been doing that 3x a week and my diabetes has noticeably been better. I look at it like damage control. * I also am about to "cut the cord" on my cable. * All the above to say "let me have it." By that I mean I would rather have individuals tell me how it is than fall into the typical trap of shirking responsibilities and not being open to receive correction.

Step 1) Cut the Tithing. $500 on a 4500 monthly income is ridiculous. I would suggest dropping it to $50. Step 2) Drop unnecessary expenses, 2 phones on Virgin Mobile are $90 a month for 1200 minutes plus. Drop cable and get internet for $50 a month. Do your own gardening. Right off the bat, that's almost $800 a month extra cash for savings. There is zero reason for you to have to live pay check to paycheck, you just choose too.

Mint.com to track your expenses. Sit down with your wife and discuss the recurring expenses. Where can you spend less without it hurting much? I use an app on my smartphone to track day-to-day cash expenses. It does help a bit to prevent the $2-coffee here and the $5-magazine there when you know that you'll have to write it down. It could also help to set a weekly "allowance" for these things, take that out in cash at the beginning of the week, and stop spending when it's gone.

Human: So, I just finished a CS internship, and for the first time in my life have a real amount of money (~$10,000), and realized it's just sitting in my checking account. I have no immediate need for this money, I'm a student with no debt and no expenses that aren't already zeroed out by income. I'd like to put this money somewhere where it can start my long term savings. But I have zero idea where to go looking for that. I've heard that you can earn 5-6% on your money if you know what you're doing, but I don't. Advice for a clueless CS major?

Yes, save most or all of it for an emergency fund. One thing you'll find when you graduate is that even though companies may pay to relocate you to another city from where your college is, you'll still have to have a large chunk of cash to get going with things like 1st month + last month + security deposit on an apartment. The sign on bonus and/or relocation reimbursement comes *after* you move there.

I would read the link to the right that says "I have $[X]...What Do I Do With It?!"

Human: I'm looking to open an online investing account with a new bank, and I'd like to know which is the best for low-activity investment? I'd prefer index funds over actively managed funds, because I don't think active management is worth it. Is there a bank or program that /r/personalfinance would recommend?

Vanguard

Vanguard. The only thing you can control is cost, and Vanguard has the cheapest ones.

Human: I am a 23 year old who has been working for about a year. I have several student loans with several different lenders. I have 5 loans through one lender with rates varying from 5% - 6.8%. I have no problem paying off my loans and I am actually looking to pay my loans off ahead of schedule. I have three scenarios as I see it: * 1 put extra money towards my my student loans (starting with the ones with higher interest). * 2 Call up the lender and negotiate a lower interest rate. I figure I'd concede to a shorter loan term in exchange. Is this even possible? Has anyone done this? Any suggestions? * 3 Debt consolidation. Can I consolidate some of my debt (aka the 5 loans from this lender) but not others (the loans from my other lenders)? I figure this would give a lower interest rate and I could continue to pay as if I was still on the original ten year repayment plan. I am already doing the first one, but I wonder if the other two are better options. Are there any other scenarios I'm missing? Are there credit score implications to any of these? Any thoughts and suggestions would be helpful. Thank you. tl;dr How can I pay off my student loans quicker while minimizing my interest expense. Edit: I have an emergency fund built up over three months of expenses. I'm making extra payments each month towards the highest rated debt. I already make all of my payments well ahead of time and use automatic withdrawals. I want to know if there is a better way (such as scenarios 2 and 3) to go about this. Edit 2: I appreciate the help, but most of you don't seem to be answering my question. JoelsonCarl has been the only person that has actually provided me with something I didn't already know. I'm not looking to make a $5 payment everyday to save on accrued interest. I'm already paying off the highest rated debt more aggressively than the others; therefore, there is no reason to suggest the snowball method or even unburyme because I am already doing that. I'm really just wondering about the feasibility of options 2 and 3.

Www.mint.com I plugged in all my student loan account details and created a goal to pay off the debt and it organized all my monthly payments in the snowball style. Telling me how much to allocate to each loan of different amounts and interest rates. It makes planing the payments and preparing them way easy. And now that the Department of Education finally got a better website, you can put ur money where u want it to go. Check out subreddit /r/studentloans

You can go to http://unbury.me/ and run a few scenarios and see what works best depending on how much you owe on the smaller ones you may be able to pay those off first and then hit the higher ones and save more. But it is usually best to start with higher loans and throw all you can behind those once you have your 3-6 mo. emergency fund set up

Human: I just received an offer from Company A for $92k with a short response window (2 days) and I'm expecting Company B to send an offer this week at around $75k (possibly after 2 day window). I am seeking advice on how to inform Company B of the offer and short response window while also possibly negotiating a higher initial offer from them based on the offer from Company A Some details: - I'm in my mid 20s - My profession is engineering - Both companies work in the same industry and both positions are in engineering - Both positions would require me to move across multiple states - Both positions are around 25 - 50% travel - Company A has extended me an informal offer at this time with a formal offer to come if I accept by Thursday (2 days) - The offer from Company A is $92k/yr and 3 weeks vacation - No solid details but I expect Company B would come in with an offer of $75k/yr and maybe 2 weeks vacation - I believe that I would be more interested in the work I'd be doing for Company B I'm sure I am leaving out some important details but any advice from what I've shared so far would be greatly appreciated. Thanks. Edit - I have reached out to Company B and informed them that I have another offer but have not given any details besides the timeframe. They said they will contact me tomorrow to let me know if they will be extending me an offer.

2 options: Tell Company A you'll need more time to decide on the offer, or tell Company B you'll need them to hurry up with their offer if they're going to make one.

Company A is closer to closing, offering significantly more money and vacation. I think it's highly unlikely company B will increase their offer by the 30%+ needed to make it worth consideration. I think this is one where you either accept company's A offer, or counter for a *slight* amount more and accept whatever they come back with.

Human: I am currently a fulltime student that made about $45,000 in 2016. That is plenty to support me, but my parents still pay for my tuition, which accounts for over 50% of my annual expenses. Does tuition count towards the "at least 50% of my support"? I want to make sure whichever way I file, both me and my parents get back as much as possible.

You cannot "let" them. Either they can claim you or they cannot. If they can claim you, you cannot claim yourself *even if they don't*. Either way, your permission is irrelevant.

You may find these links helpful: - [Tax Software Megathread](http://redd.it/5ohy01) - [Taxes wiki page](https://www.reddit.com/r/personalfinance/wiki/taxes) - [Understanding tax brackets](https://www.reddit.com/r/personalfinance/wiki/taxes#wiki_eli5.3A_taxable_income.2C_tax_brackets.2C_marginal_tax_rates) - [W-4 IRS Withholding Calculator](http://www.irs.gov/Individuals/IRS-Withholding-Calculator) *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/personalfinance) if you have any questions or concerns.*

Human: Hey all! So, I'm getting married in 8 months and my fiance and I can tell that we won't have the money to make it an even decent wedding without some help. Student loans, rent, and bills galore eat up all my income and she's still in school until august. Basically we need a little loan and I really don't know anything about what's good and what's not. The first place I looked was the bank I have my main checking account with and they said they could give me a $5k (that's the amount the fiance and I decided on) at 'as low as 8.94%' on a 5 year term. Is that pretty good assuming I can get a % that low? I've also read talk on hear about credit unions and how they might be better but I really have no idea about anything like that. Just looking for a little advice from you all since you've always seemed so helpful in other posts I've read here over the years! Edit: Wow. Definitely wasn't expecting this kind of response. I will try to get back to you guys one by one. I really do appreciate the advice Edit 2: Lots of very 1-sided advice here which lends me to believe that a major change in my thinking is required. I'm going to put the loan talks on hold and have a serious talk with my fiance. Thanks a lot for your advice, I'm taking it to heart! Keep on keeping on friends.

Don't borrow money to hold a wedding.

Save it and elope. The money will be much better spent elsewhere as you build a life together.

Human: Well, I hurt my knee at my step-daughter's birthday party going for broke in a trampoline park. Shortly after, I got a brace, took it easy on it and hoped for the best. I didn't want to go to Urgent Care and pay the crazy amounts for something that I figured would heal on its own. Well, three months later, I feel significant pain when running or walking up stairs and it's not going away. I've resolved to seek assessment and physical therapy for my knee so I can remain an active person over the summer months. Does anyone have any tips for how I might access these services at a somewhat reduced cost. I live in MN, have an HSA plan through my company. Coverage is 0% after deductible but that's about $2000 which would suck up my savings for the home I'd like to buy this year. Any tips? Thanks!

I'm a PT - many of us are reasonable and understand the costs. If you go once a week or once every two weeks, we can develop a program for you to perform on your own.

I would talk to the pt places to see if they would strike you a deal. My one place let me pay a specialist fee instead of the $150 my insurance was telling me to pay. While it still was a good chunk of money at the end of the day, I consider it worth it since I can now move my shoulder. You can also ask to go only once a week to save money!

Human: Hello everyone. I am a 14 year old in my first year of high school. I was wondering how, as a teenager, I can make money. More importantly, I would like to know ways to create any sort of cash flow. I'm kind of busy and would like to find a way to make a little money while I do not have a job yet. If anyone has any tips or advice, I would greatly appreciate it. Thanks!

Babysitting, house sitting, and dog walking are all reasonable jobs for a high schooler to get.

Resell my friend, Supreme, palace, gosha, ftp, yeezys (anything hype) Buy retail, wait, resell for 50-300% profit margins on Facebook groups, eBay and Depop. fashion these days and hype can make u $$ only expenses are packaging and posting.

Human: My SO and I are working on our debt snowball. We keep finding ourselves lost as to how to mush everything together. We both have decent jobs and make a fair wage. We currently have planned a destination wedding this October and have a budget somewhere between $5k-8k (depending on which options we select) and we have already sent the Save the Dates out. We're trying to decide if we should spend $10k on a long honeymoon or put off the honeymoon for several years and use it to pay off student loans. I am currently going to school and am getting my current federal student loans at 3.76% (consolidated government existing loans are at 5.25% and 5.69 % for private). Things that are up for debate: Use all extra monthly income to pay off all student loan debt first (based on our calculations this would pay off the student loan debt by end of 2019) Save money for honeymoon and then pay off student loan debt . We plan on using my decent tax return as the start of the honeymoon savings account ($5k)(the budget for the wedding is already accounted for separately and sitting in savings $8k) Save money for aging furnace and central a/c (22 years old each) and then start paying off student loan debt (We guess between $5k-8k to replace both) Using my current school to get loans at 3.76% and use that to pay off the higher interest loan at 5.69% and then pay this off at the end of the snowball. Here are the specifics: My student loans: Government Loan- $8600 @ 5.25% and has 141 payments left at a consolidated monthly payment of $85 Private Loan - $13,600 @5.69% and has 114 payments left @ $173 a month Engagement Ring- $8719 @ 10% and has 48 payments left of $214 a month SO's student loan: Government Loan $33,240 with average interest rate of 5.75% and has 96 payments left at $329 (based on minimum payment). In May she is starting to pay an extra $1000 a month on her loan. Including the extra $1000 she is putting on her student loans we have an extra $2000 total to put towards debt or saving for the honeymoon or eventual replacement of the furnace and a/c. I recently lost my job and got a severance package and was able to find a job within a timely manner. We plan on using the severance package to pay off the engagement ring since it has the highest interest rate (and giving us the extra $214 for snowball). If we forgot anything, let me know. Assistant: Dude. You're up to your eyeballs and $8719 for an engagement ring? Destination wedding? $10k honeymoon? What the actual. EDIT: My wife just skimmed this and has the brilliant theory that you are ever so neutrally posting these details to solve a dispute between you and your significant other, where you are trying to be the responsible one and your SO is thinking you have plenty of cash to blow. I am guessing your SO is the one siding with 'cash to blow' only because of the $8719 engagement ring. Please confirm theory. Human: Yep, that's why we're here asking so we don't continue to make more mistakes.

Definitely defer honeymoon. Target the engagement ring first. After ring is paid off make normal payments on all the other debts while saving an emergency fund which should also be large enough to cover hvac repair. After that start hitting the 5.XX% loans.

Easily defer the honeymoon and use those funds to pay of the debts. I would use your tax return to further pay down debt and then build savings for the ac and furnace. After all that then think about honeymoon

Human: Wife and i have good jobs, max out both our 401K's and have IRA's. Have sufficient emergency funds, and have about 100K to put away. Worried about market corrections and investing when the market is at it's peak. Any suggestions?

You should visit r/financialindependence/

look into mango, its a wierd savings account supposedly for an $800 DD a month you get 6% on the first 5K so x2 theirs where you can park 10K while your waiting for put it elsewhere if you feel like getting no returns buy some gold bullion, im partial to Canadian maple leafs and south African Krugerrands personally or you can get 100 pounds of silver for 30K, you know so you can have a 100 pound pile of silver to roll in, or make dumbbells out of. i really dont have any advice of any use

Human: Background: I am a civil engineer specializing in roadway design at a medium size firm. I have been making 45k since graduating in 2014, but recently had my pay increased to 47k based on new salaried employee wage laws. I have a wife who is still in college and brings in no income. After working with the firm for 2 years I planned on asking for a raise based on performance. Many of my colleagues believe I'm being underpaid and that mid to low 50s is where I should be at (company does not provide raises every year). I'm worried that any new engineer hire out of college can demand a higher salary (in the 50k range) due to a set floor of 47k. I love my job, but my firms reluctance to pay its engineers is driving many away. Question: Does it exhibit entitlement if I ask for an additional raise after receiving the bump in pay (not based on my performance)? Does my argument for a pay increase sound fair? Any advice would help. Edit: Thanks to everyone for the advice. Me and another recent grad essentially run our department (lot of managers who get work, but no one to actually do the work) and we both are considering getting out. My current plan is to apply for a job an hour away and commute if I accept. My buddy who graduated at the same time and works for ALDOT makes 55k, which I always assumed the private sector would pay better than a government job. That revelation is what set this in motion. For context, I also am disconnected from family to help with money so providing a good life for my wife has been really hard recently. Assistant: Consulting firm manager here, although we don't do roadway work. Examine state and federal labor data for your field. Your salary seems low. I don't hire Civies but I hire greenhorn Mechies at 60k with four year degrees. At some point - or maybe even online in evenings - you could go back and get a Mechanical Engineering degree that tends to pay a little better with a bit more versatility. Probably could get the dual degree with one more, albeit hard, year of school. Or a Masters in 2 years. As for entitlement, I will admit that there is a tendency in my generation to use that word with respect to yours. As such, I think perhaps the best advice I can give is to benchmark salaries best you can by talking with your coworkers, and also to use Glassdoor etc. to find out what similar companies are paying. Yes, attitude matters so be careful when you approach HR. Being respectful and humble matters. Within the power I have, I will pull out all the stops to do right for my hardest working and most reliable engineers. The squeaky wheels? I have selective hearing loss sometimes. Human: I do know that mechanical engineers typically make more than civil out of college, but growth in infrastructure projects has led to civil engineers being in high demand lately. I do live in Alabama where wages are typically lower than national averages, but the low 50k range is typically where someone with 2+ years should be at prior to earning a PE.

Mech. Engineer here. I would just recommend simultaneously looking for a job and asking for a raise. It's a lot easier to ask for a raise when you have some leverage, and it's always nice to have options, so I would encourage you to apply to any relevant positions. Also, all these people talking high salary numbers may live in places with high CoL, something to keep in mind.

you just straight up need to change jobs to be paid a normal wage. i've been in your shoes and you will never get paid a fair wage there. even if you ask for a raise and get it you will still be underpaid

Human: I have my debit card in my possession and it says they withdrew with my debit card. My last transaction was at walgreens yesterday. And way before that i payed at a gas station on the 22nd. Appreciate your advice

You will get your money back eventually. They may give you a temporary credit while they investigate, or they may ask you to wait. Just go down there and talk to them.

Recently spent 5 months in ATM/debit fraud at a large bank. Here's what you should know: the fraud investigator will review the tapes at the ATM and check previously authorized ATM transactions to ensure it wasn't you, you will likely get a temporary credit while the claim is under investigation (as long as your account isn't new), a police report is always helpful since they can review transactions at other locations (like Walgreens) and will prosecute, so make sure you update your claim with the police report info after it's obtained. Submit your claim ASAP, but definitely within 68 days of the transactions and make sure you complete and return the fraud form the bank sends ASAP. You'll be fine. :)

Human: Hi pf, long time listener, first time caller. (Using a new account.) My wife's father is estranged from her, but her and her paternal grandfather have a friendly relationship. They aren't very close to her, just very nice, and she is their only grandchild. They live in another state so what we actually know about them is very little, but we do know that both her grandfather and grandmother worked for a gold mining company for most of their lives, and retired from there, and they seem very financially smart. At our wedding, my wife's grandfather gave her a hug and said "I just want you to know, when I die, you'll never have to work a day in your life again." She and I were very surprised to hear that, and now almost a year later we still wonder what that really means. We don't want to consider that into our financial plan or goals at all, but we're still curious about what could happen. It seems like he made good money, but my wife is only 22, and he is in his 70s. When he dies she may only be in her 30s or at most early 40s. Just seems like it'd have to be a pretty big inheritance backing up that claim that she'd be able to retire even without having a second income. I know this is kind of speculation and not a usual pf question, but that makes for reading and your ideas if you have any! EDIT: Thanks guys, yes we want to get to know them better and are planning to take a trip to their state to spend some time with them soon! It can just be awkward because of the family situation, but we can push through it. Thanks for your answers, I guess I shouldn't have used the word expect. It's fun to fantasize but it's not really useful for appropriate, so thanks for the advice!

Assume you will get nothing. You cannot plan based on chance. You don't know how much they have. You don't know how long they will live. You don't know who they will leave their assets to. And even if you are the current beneficiary, who knows what will happen tomorrow? I am currently the 50% beneficiary of my parent's living trust. But it is a revocable trust. This means they could change their minds tomorrow. I can at least say I will probably get the money as I know exactly what they have, I help them manage their investments, and I am one of their two children. But even so, my financial planning is based on the assumption I will get nothing. Your situation is less clear. Your wife's grandparents have at least one child. They might give the money to their child[ren]. If you plan expecting to get money and don't get it, you are out of luck. If you plan not expecting to get the money, the extra money will just make life easier.

Well - I'd expect nothing. However, I'd make sure to keep in touch with cards, letters, phone calls every now and then. Not perfunctory, and not seeking anything other than contact with family. These are her grandparents! Time to get to know them, because now that she's married she's realizing the importance of things like family traditions, "origin stories", etc. Take an interest in them and they may reciprocate with taking an interest in you. Ask questions in your letters that will need a response. Maybe get one of those "Grandma/Grandpa remembers" books and work through it with them. That may be all the "inheritance" you get but it will be an eye-opening project. How did they meet the challenges of marriage? How did they meet in the first place? Promises of inheritance are worthless. However, developing real closeness may result in heartfelt monetary or otherwise gifts to you as a couple or to your children throughout the coming years.

Human: http://www.amtd.com/newsroom/press-releases/press-release-details/2017/TD-Ameritrade-Reduces-Client-Pricing-to-695-for-Online-Equity-Trades/default.aspx We wanted a response and we got one!

And fidelity just lowered theirs to 4.95. Plus you can buy a shot ton of fidelity funds, and ishares commission free

I've been paying 2.95 per trade at optionshouse since 2009. Got locked in though. Think it's 4.95 per trade now.

Human: Topic says it all really... asking for a friend... for research.

From my experience, Glassdoor is fairly accurate. The more data there are available for the position you're looking at, the more accurate it is. It's nice that they also give a range of salaries for each position.

Glassdoor.com is pretty accurate for librarians (public libraries) in my area.

Human: So i happened to ask a classmate what he works, he said online work and makes money. I was interested, he hooked me up with the interviewer and it was good. Then i went to the workshop in manhattan. There were more than 200 people in the audience and a 2 hour presentation explaining how this business helps you make money. I was interested, though we had to pay $200, i asked a few people and they told me its worth it. After i paid, i decided to look more to it in google and realized i fucked up. The company is called: Amway (I'm not sure if you're familiar with it, it's very popular, a multi BILLIONAIRE marketing company), yeah.. it turned out to be a scam. It wasn't one website that said that, ALL websites said it was. They mentioned a 3 months money-back guarantee. I want my money back. They're gonna be like you were SO interested why'd you change your mind... What do I say? Like idk man i fucked up what do you think i should do? Also, I was thinking of going to their workshop on monday again and this time i go on stage and expose them (yes i have the balls), would i get sue/attacked/tackled or anything of that sort, imm just worried about that, what do you think? Anything helps, thank you!

It's not worth it man. Just take it as a life lesson.

My mom swears by the product, it's all she'll use to wash clothes. Couldn't comment on their business structure though.

Human: I have been reading a lot of investment guides am about to take the leap of investing in addition to my retirement which is at 15%. I am hoping to use these funds in 10ish years to help with a down payment or remodel bathroom etc. My question is the if I wanted to start investing in a target date fund does it have to be a retirement account or can it be my taxable investment account?

It can be in any account.

You may find these links helpful: - [Retirement Accounts](https://www.reddit.com/r/personalfinance/wiki/index#wiki_retirement_accounts) (articles on 401(k) plans, IRAs, and more) - ["How to handle $"](http://www.reddit.com/r/personalfinance/wiki/commontopics) *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/personalfinance) if you have any questions or concerns.*

Human: I graduate college in May and will be moving on to grad school. I have no student loan debt as I have had my tuition paid for via scholarships. My grad school tuition will be covered by my graduate assistant position and I don't pay rent due to my job. My savings account is under my name, but it is under my father's account(if that makes sense). When I graduate I plan on starting my own bank account with a bank down by my university and putting the 10 grand I have saved in some sort of account. Problem is that I don't know how to go about this or what to look for. I know nothing about personal finance other than saving money=good. Please help. Also excuse spelling and grammar..haven't had my coffee yet. Assistant: Seeing as you are heading to grad school you're at a point in your life where it's probably wise to keep most of those funds liquid. Put most of it in a bank account with at least 1% APY, a popular choice is Ally Bank (some limitations due to being internet based). If you really need/prefer a local real bank presence you should still look in signing up for a high interest bank like Ally and linking it to your local bank. Great that you won't have any student loan debt! Keep it that way! Know your limits, don't be tempted to carry balances on credit cards, pay them in full. Get a budgeting/personal finance app (like Mint or YNAB) Good luck! Human: I've actually never had a credit card lol. What do you mean by keeping my funds liquid?

You don't invest them in anything (stocks, index funds, etc). Just keep it in a normal savings account.

Liquidity is the ability to convert an asset to cash. If it's already cash, then it's liquid by definition.

Human: I have an above average income and support the family while my husband studies. We have small kids. We are pretty busy and tired. I would rather not spend my weekends doing household tasks like cleaning or home and garden maintenance, fixing things, etc. Is there any formula for calculating if I'm better off paying someone else to do these jobs for me? We are trying to save for home renovations. Basically, I think my question boils down to "At what income does time become more valuable than money?" Maybe there is no answer to this, or it's individual based on what jobs you don't mind or hate the most.

I don't know that there's a magic formula. Personally, I've said that if I ever get to the point where I have the disposable income to afford a cleaning service, I'm hiring one because I dislike cleaning and have other things I want to do with my time.

For me I would never pay some one to do cleaning(I like things the way they are and cleaning doesn't take long maybe 15 mins a day) as far as the lawn work we are paying someone to do ours this year because it's hard to find time to mow the lawn(it takes 2 hours we have a large yard but it only takes 30 mins with a riding mower which we don't have and it has to be done every 5 days!) my family brings in 130k a year and I just cancel cable and Netflix during the summer to pay for it(we are never inside anyways during the summer). Also your husband studies how busy can he be? He could help with some cleaning and such.

Human: Hey y'all, so with my final student benefited tax return I'm going to be putting $1000 towards dept. I currently have 3 credit cards total, and all of them are pretty much maxed out. I've just graduated and have a big boy job (Just got an offer yesterday at my internship starting at $70k!) so I'm trying to be smarter with money (starting at the side bar). "The best time I should start doing that was when I first started college but the second best time is now" and all that jazz. Card 1: $989.79/1000 w/ 10.4% APR Card 2: $990.09/1000 w/ 23.49% APR Card 3: $1,983.09/2000 w/ 25.74 APR So I planned on paying off card 1 regularly because it obviously has the lowest APR. What I'm trying to figure out is if I should just pay off card 2 in total and rip it up, or pay off half of card 3? Does it even matter in the long run? I think increasing my credit score is my biggest goal, if that's even possible with my options (though I guess that'll happen naturally over time as long as I keep paying off my debts). If I go with card 2, I've been told that it's better to leave the account open and rip up the card, rather than close the account, is this true? To add some other potential options to send the money, in case it might be more valuable: I also have a personal bank loan w/ ~$1300 left at an 11.95% APR, a car loan w/ $6169 left at 9.25% APR, and a personal family loan w/ $1000 left that I'm paying back (0% interest) at $100/month (maybe more now that I'm going to start getting paid more). I think I want to focus on paying towards my credit cards but if y'all think it might be better put towards one of these I'd be open to feedback in that area as well. **edit:** Totally agree with the comments here. I'll go ahead and put $1000 towards card 3. I was mainly confused as to whether paying one card off completely would be better for my credit score more than putting the same amount towards another. After a little research it looks like it doesn't matter which card the money goes towards, it will have the same effect, but paying card 3 will lower my total APR payments the most.

one with highest interest always, no two ways about it. costs you more in the long run every time to not pay it off

Pay the highest interest first (card 3). In this case, you could also consider paying off card 2 and ripping it up. Use the rest on card 3. With the loans you've listed, the best order is: * Card 3 * Card 2 * Bank Loan * Card 1 * Car Loan * Family

Human: Debt - 30k 10% interest bank loan for my car to pay off over 5 years 3k credit card 13% interest which doesn't have a time limit to pay off, but want to pay it off as soon as possible. 6k for furniture no interest 60month credit card, About me- I Live in Australia I make $1500 a fortnight Living with my partner who makes $1000 a fortnight and we split household bills My fortnightly bills including paying the minimum of above debts and everything to live eg, rent, food, fuel, health insurance, phone bill and internet is $1200. That leaves me with $300 a fortnight to use on "fun things" e.g alcohol, smokes, eating out and saving money. My partner has a small amount of money left over to share the "fun things" as well. Even though I have money left over I still feel like I'm going backwards each fortnight. What can I do to get myself out of this rut? My bills feel like they are way to high for how much I'm earning.

If you are actually serious about getting out of this rut, you need to: * stop drinking, stop smoking, and stop eating out * reduce any other expenses that can be reduced * set aside $1000 for emergencies in a savings account and don't touch it * put all the remaining savings from the above cutbacks into paying off your debts Start from the credit card debt, then work your way down to the lower-interest-rate debts once the higher ones are fully paid off.

> health insurance Your income is below the $90k needed for private health insurance. If you are healthy (no chronic conditions/injuries) then you should consider whether you're really getting value out of it. Keep in mind that all the top Emergency Departments are in public hospitals and you've paid for them through your taxes already. Similarly with Extras cover (dental, optical etc), you should do the maths to see whether you're better off just putting the premiums into a savings account instead and using that as a fund to pay for things.

Human: I'm looking to purchase a new car/truck and wanted to know if anyone has ever used the GM college discount? If so, what was the discount? How much? Is there anything that I should be looking out for? Any help would be greatly appreciated.

You can check out [their website](http://www.chevrolet.com/offers-and-finance/current-deals.extapp.html?x-zipcode=&x-brand=Chevrolet&Change=Update&x-offertype=Finance&x-offertype=Cash&x-featuregroup=), but the deals don't look exceptional. By that I mean the best one I saw (20% off MSRP) isn't any better than you could negotiate by yourself if you're disciplined about it. That said, buying a brand new car is not generally considered a sound financial decision around here, and *financing* a new car at higher than 0% is doubly bad.

It's not enough to make up for depreciation. There are few instances where buying a new car makes sense and almost none of them apply to a new college graduate.

Human: Update: called bank. It was deposited into the wrong account by a number. My account has a 1 and the correct account has a 7 which were probably hard to tell on the deposit slip. seems like a teller mistake. Just checked my bank account and it seems there was a deposit of $9,600 in it. I wasn't expecting any deposits. What should I do? Thank you. Edit: thanks for responses. Will contact bank when they open in a few minutes.

This happened to me almost 15 years ago. 1500 USD (but in swedish currency since I live in sweden) was deposited into my bank account. I contacted the bank and they couldnt tell me who made the deposit. They could tell me that the deposit was made at a specific bank office. They bank adviced me to wait and it would sort itself out. About 5 years ago I used that money and no one ever came n asked for it.

withdraw it.. it wasnt your mistake.. make the banks pay the 9.6k back

Human: I am in serious debt, over the years I have lived well beyond my means and I've finally reached a point where I just don't know what to do anymore. I was thinking of reaching out to Clearpoint but I thought I would turn here for help first. I'm married but my wife and I keep our money separate. I make $1234.90 after taxes every two weeks and here is my current debt: CC 1 $12263.92(15.75%) CC 2 $4360(12.49%) Car $34285.65(2.99%) $527.41/month(wife gives $150.00/month) Loan 1 $7468.90(6.24%) $331.44/month Loan 2 $9090.01(6.24%) $292.31/month Def Comp Loan $9774.82 $214.39/month Retirement Loan $6972.37 $81.00/paycheck Mortgage $170090.78(3.75%) $1319.39/month(split w/wife) I also pay $300/month for child care $160/month for phone/tv $33/month for garbage I don't know what else to do so any advice/help would be greatly appreciated. Assistant: Wow - this is among the worst situations I've seen. I see a couple of different options (which aren't mutually exclusive); I'll list them in order of what I would suggest: 1) Your minimum payments listed (not including the first two credit cards) exceed your monthly income. In other words, even if your post represents everything you spend in a month, you will keep falling deeper into debt every month. 2) Come clean to your spouse. They deserve to know the truth and you need their help with this. Combine finances - stop this paper game of my/your money. You all married each other - act as one person, not two. 3) Get another job. Your income has to go up to start making a dent. 4) Post again with full details (budget, etc...) on your combined income and expenses. If your spouse is in similar shape, it's time to talk to a lawyer about bankruptcy. Human: Not the worst I've seen, even on this sub (those $200k art degrees should be considered a crime) but very, very bad. The biggest question here is what does OP's wife make, and what her financial situation looks like. Is she willing and able to bail him out? I'll add that OP seems like a prime candidate for bankruptcy unless his wife is making mucho $$ and is otherwise stable. The car is definitely a no-no. At this point, OP shouldn't really be running any extra expenses, so cut the phone and cable as well. Assistant: Wife doesn't make as much as me, but she is stable. Pays off her CC every month. No loans. Excellent credit. About $5000 in savings. She pays for pre-school, groceries, heating, and electric for the house as well as paying $150 towards the car every month and half of the mortgage. Human: You seem very reluctant to say that you will come clean with her. Would you at least promise us that? There seems to be a big consensus that talking to her is step one of the plan. Assistant: I came clean to my wife. Went home took a xanax then told her. I have so many other issues in my life right now I thought it would push her over the edge and her words were, I wish this money issue was the least of our problems. She said that between her and her family we can get through this. She wasn't mad at all and said this was something we can get through.

Seriously, this is VERY important. I had bills...not nearly as bad as your bills...but BILLS that needed to be paid. It was hard telling my girlfriend at the time that I had bills in my name that I was ashamed of. But I told her. And I started fixing my credit. And it got fixed quickly thankfully. And now i'm the one telling her "QUIT BUYING THAT CRAP!" It takes a special mindset to get underneath massive debt. One day at a time...one lucky break at a time...one message board post where you get 9 people laughing at you via their keyboards or armchair QBin'....and 1 person giving you solid advice. I wish you the best of luck. Hug your wife....and maybe give her access to all of your finite details, as it's somewhat clear she is responsible at this point in her life.

Based on your description of her bills I bet she has been tucking away a good chunk of money each month, so it doesn't surprise me she's not too worried. Sounds like she's financially savvy as well, so letting her know should make a huge difference in staying on track.

Human: My father recently passed away, and I am the executor of the estate. He had a bank account with ~$130K, and at some point he put his sister (my aunt) on the account to make sure the full amount was FDIC insured. Apparently neither he nor my aunt were aware that in 2008 the limit was upped to $250K. I mailed the bank my father's death certificate, and they removed him from the joint account. Since the money was all my father's, and she was just on the account because they thought it was necessary for FDIC insurance, she now wants to give my father's estate the money. Since the amount of money is over $10K I believe she will have to declare it as a gift. I'm worried either she or the estate will have to pay taxes on the 'gift'. Is there a way she can give the money to the estate without any tax burdens? Since it's technically 'her' money now we were thinking she could give the money to my sister and I (my father's only heirs) in amounts less then 10K so it wouldn't have to be declared, but this is less than ideal since that would take 7 years. We'd all much prefer to put the money in the estate now, but do it in a way that avoids any tax penalties for either my aunt or the estate. Any advice appreciated. I'm located in MA, my aunt is in VA if that matter.

Finally a post that doesn't involve family drama! This could have gotten really bad.

You may find these links helpful: - [Tax Software Megathread](http://redd.it/5ohy01) - [Taxes wiki page](https://www.reddit.com/r/personalfinance/wiki/taxes) - [Understanding tax brackets](https://www.reddit.com/r/personalfinance/wiki/taxes#wiki_eli5.3A_taxable_income.2C_tax_brackets.2C_marginal_tax_rates) - [W-4 IRS Withholding Calculator](http://www.irs.gov/Individuals/IRS-Withholding-Calculator) *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/personalfinance) if you have any questions or concerns.*

Human: # 30-day challenges We are pleased to continue our 30-day challenge series. Past challenges can be found [here](https://www.reddit.com/r/personalfinance/wiki/30daychallenges). This month's 30-day challenge is to **Prepare your Tax Return Accurately, and File Early**. You've successfully completed this challenge once you've filed your US federal income tax return by March 31st. Recommended Steps: ###Plan 1. **Learn how US income taxes work:** * Watch [Basics of US income tax rate schedule](https://www.khanacademy.org/economics-finance-domain/core-finance/taxes-topic/taxes/v/basics-of-us-income-tax-rate-schedule) * Watch [Tax deductions introduction](https://www.khanacademy.org/economics-finance-domain/core-finance/taxes-topic/taxes/v/tax-deductions-introduction) * Read /r/personalfinances's very own [wiki page on income tax](https://www.reddit.com/r/personalfinance/wiki/taxes) * *Understand* what exactly your tax return is: A form you fill out, telling the government how much money you made, calculating how much taxes you owe on that money (your "tax liability"), and "squaring-up" with the government: Figuring out if you already paid more than your actual tax liability throughout the year with paycheck withholdings (in which case you will get a tax *refund*), or if you haven't paid enough throughout the year, and owe a balance to the government. 2. [Determine your filing status](https://www.irs.gov/uac/what-is-my-filing-status) and determine whether you can be claimed as a dependent by anyone (for example, your parents), or can claim any dependents. ([IRS Dependent Tool](https://www.irs.gov/uac/who-can-i-claim-as-a-dependent)) 3. **Prepare a "map" for what documentation you will need to fill out your tax return**, then go through the list and make sure you have the documentation for each. **Don't worry if you forget something.** The software you use to fill out your tax return (or the tax return form itself) will remind you of things you might have forgotten. * Jot down every possible way you made money this year (remember, even if you don't get a form, you still need to report it): * paycheck from my job (W-2 form) * interest on my bank account (personal records like your December account statement, or a 1099 form) * dividends from my stock (1099-Div) * income from my small business or self employment (personal records, or 1099 form) * Make a list of all the possible deductions you might think you are eligible for, and make sure you have documentation: * mortgage interest you paid (1098) * student loan interest you paid (1098-E) * education expenses (1098-T) * state or local income taxes (W-2) * charitable contributions (personal records) ### Prepare and file your Tax Return **Using one of the following methods** 1. See if you are eligible for [completely free tax return preparation software](https://www.irs.gov/uac/free-file-do-your-federal-taxes-for-free) sponsored by the IRS 2. Use paid (or free) tax return preparation software. Examples: TaxAct, TurboTax, CreditKarma, AARP, FreeTaxUSA, TaxSlayer. [See our megathread for discussion.](https://www.reddit.com/r/personalfinance/comments/5ohy01/tax_filing_software_megathread_a_comprehensive/) 3. "Manually" fill out the tax return form online using [IRS Free Fillable Forms](https://www.irs.gov/uac/free-file-do-your-federal-taxes-for-free) By starting early, it allows you more time to deal with unanticipated questions about your tax return. "Wait, can I claim my girlfriend as a dependent"? "Do I have to report income from renting out the spare room in my house to a friend?". When these come up, feel free to create [a new post](https://www.reddit.com/r/personalfinance/submit?selftext=true) asking for help with as much details as you can provide.

We want a new challenge! We want a new challenge!

Done and done!

Human: Last year, it seemed to me that the Market had already priced in Hillary Clinton winning the presidency. I figured, there was more downside if Trump won so I internally moved 70% of my 401(k) to a Cash Account (still in my 401(k) but in cash). However, the DOW has risen more than 1k points since then and shows no sign of slowing yet I feel like we are still all in a musical chairs game of sorts that has been playing longer than usual and could experience a sudden downturn at any moment. Because of this, I have been afraid of moving back into market investments. The most profound factor in this decision is that I am unemployed and not contributing to my 401(k) so I cannot average out any declines. I need help thinking this through. What should I consider?

You failed to time the market last time, what makes you think you can call it right this time? The best time to have money in the market is always now, don't worry about all the political doom mongering, because in the long run none of it matters

I'd dump it all right back in. He's following through with campaign promises, it will keep going up.

Human: Nearly every post I see on here seems to be from people looking to spend money on stocks, retirement, home purchases, etc... These things require cash upfront, and I don't know how everyone on here manages to build that wealth and stability so rapidly. I'm about two years out of college now and am STILL nearly $15k in debt (between college loans and cc). I make regular payments on this debt and I have my spending under control, but it's as if I'm missing a something here. Don't get me wrong, I'm not complaining and I'm glad everyone is financially stable... But how do you do it? Am I missing something? Are there better alternatives to spend my salary on other than just paying off debt?

I'm 31 and a half and I JUST NOW got my 3 month emergency fund. And I just got out of the hospital from an emergency appendectomy. There goes my emergency fund. Don't compare yourself to others!

Get a hold of this book, It will change your thinking : https://www.amazon.com/Rich-Dad-Poor-Teach-Middle/dp/1612680011

Human: EDIT: I called TransAmerica and they told me they will not charge me this month, and they will send a surrender form in the mail. They were very easy to work with, a lot more than the insurance agency guy! if they are indeed a pyramid scheme and I continue to get charge, I will call the bank and tell them to stop the debit. Thank you all for the helpful advice and for showing me the course of actions I can take ---- 6 months ago, my mother-in-law came over with her "Financial Adviser". Financial adviser was this well dressed Vietnamese gentleman in a suit. He sold her life insurance 5 years ago and she(MIL) has been paying ever since. Background information about our family, we are first generation (Vietnamese) Americans who are bad at English, so we don't know much about how life insurance works. He showed us graphs and charts about how our investment grows, and how compounding interesting works and how rich we'll be if one of us dies, and about this and that. My MIL with this gentleman convinced my wife and me to both get life insurance policies through "oh if you die, what will happen?" this and that. Fast forward to two days ago, my coworkers convinced me to cancel my insurance, and he(guy who sold the insurance) absolutely refuses when I made the call! I said " I cannot pay because I have kids, a mortgage, car payments. his reply "Oh, that's exactly why you need life insurance! if you die who will pay those bills". then I tried to get him to cancel and he said "Oh, 65$ a month, that's only a beers and meals, you just have to go without it" . I said "Please sir, can you cancel the policy for me" and he said "OK, just wait for the forms, ill send them to you". I said "How long will it take for the cancel forms to reach my house?" he said "Who knows really, it can take be whenever." and I told him, please send the forms as soon as possible or I will call the CORPORATE OFFICE to do it. Yesterday he actually went behind my back and called my wife to talk to her to convince her this and that! Today I called him back, and after a lot of "oh, you make me feel so sad.. why must you put your family at risk" and he said "Oh, can you please keep the policy for another 6 months so you would have hold it for at least a year? till then, we can talk about it." and so now he still refuses to do any policy canceling. Right now I have the autopayment through my bank account and it is withdrawing the premium in two days and I really don't want to pay for this policy for the rest of my life (I ALREADY HAVE certain insurance through work, which I think are better than his) Our policy is with TransAmerica, I am 35 years old, and my policy is for $100,000, and my payment is 65$/mnth. Can I cancel straight through TransAmerica? My wife is afraid that he'll talk bad to my MIL if we cancel with him. I am bad at english so I have my nephew type this. He'll translate the replies.

I hear stuff like this all the time. Folks, save yourself some stress and awkward family gatherings and just refuse to deal with your relatives "friends", more often than not it is going to cost you money in the long run. The reason being is you forfeit your ability to deal with that person in a professional manner. People make mistakes and sometimes those mistakes need to be rectified, but if you came into contact with this person casually, expect casual attention and it to impact your relationship with the person who introduced you to them. Bottom line: It sucks

When you get this cancelled, if you want a good deal on life insurance, I recommend https://www.term4sale.com/ The website will give you an estimate. Then you can request to be contacted by brokers in your area. The brokers work with different companies, and will help you find a good fit. In my case, I like to smoke a handful of cigars every year. My broker found me a company that would give me the non-smoker rate, otherwise it would've cost like 4 or 5 times as much. *Why downvotes? I'm not a shill, just a happy customer. Term4sale is legit.*

Human: I just started an IRA (to get in before the 2016 deadline, thanks PF!). I'm 30 and want to retire when I'm 60. Do I really need to diversify to start or can I diversify as I contribute more over the next year or two? For example, I'm looking at FSCSX. 13% over the last 10 years. Apple, Microsoft, Google, etc. These are strong companies, I really can't see them going anywhere but up over the next 5 years, when I will have plenty of money to distribute to other categories. That 13% is tempting to drop everything in, even though I understand the need to diversify over time. But what about the short term? Can I pretty safely drop in my first $5500 into 1 tech mutual fund? What could possible go wrong?

> Do I really need to diversify to start? No. That depends on your risk tolerance. > That 13% is tempting to drop everything in, even though I understand the need to diversify over time. What happened over the last ten years is not necessarily what will happen over the next ten years. Over the last ten years we had relatively open markets, the rise of smart phones and their ecosystems, the move to the cloud, the rise of alternative energy sources, no tech bubbles. Who knows what the next ten years will bring? > But what about the short term? You are investing over the next three decades. That's not short term. Forget short term. > Can I pretty safely drop in my first $5500 into 1 tech mutual fund? What could possible go wrong? In February 2000 the NASDAQ composite index was 6716. September 2002 it was 1572. That's a loss of 73% of your value due mostly to technology stocks. You wouldn't regain that value until... well, we don't know. It's only back to 5897 today. The NASDAQ composite index is heavily weighted towards IT companies. It tracks one sector closer than it does the overall market. If you look, instead, at a more general index like the S&P 500 the numbers for those three dates are 1388 in February 2000, 867 in September 2002 and 2363 today. You would have only lost 38% during the DotCom Bubble crash and regained the lost value back in 2006, slid back down during the 2008 crash and regained again 2011. Today you'd be ahead 70% versus down 13% if you had stuck with the tech-heavy strategy. If I were in your shoes, I'd diversify.

I am admittedly not the *most* well versed, but the gross expense ratios or FSCSX are on the high side. For example, the Information Tech ETF from Vanguard has an ER of .10%, although an 10yr avg return of 9.75. Another option is VTSMX (it's Admiral shares are very popular on /r/financialindependence) which is slightly less risky, but still, if you look at that dip it took in 2008, you've gotta be ok with something like that happening to your money.

Human: Today's the day that the Sallie Mae MasterCard from Barclaycard gets converted into a new card called the Sallie Mae Commence MasterCard. The Commence only offers 2% cash back on grocery store and utility (cable, phone, internet, electric, and gas) purchases. It's no better than a [Citi DoubleCash](https://www.citi.com/credit-cards/credit-card-details/citi.action?ID=citi-double-cash-credit-card) so I'm going to redeem whatever rewards I have left and close it. ## Cash Back King The Sallie Mae MasterCard was a relatively unknown cobranded credit card from Barclaycard and Sallie Mae. It had some of the highest cash back you could find on any credit card: * 5% cash back on the first $250 you spent per month at gas stations. * 5% cash back on the first $250 you spent per month at grocery stores. Purchases at Super Walmart and Target Superstores (stores with full grocery sections) coded as grocery stores with this card. * 5% cash back on the first $750 you spent per month at bookstores. Amazon.com purchases coded as a bookstore with this card. It covered common categories up to a reasonable amount of monthly spending for a single person **all at no annual fee.** Plus you got 5% cash back at Walmart, Target, and Amazon.com **all with the same credit card**. Crazy right? Maybe a little *too* crazy. So much so that Barclaycard had to nerf it. Here's what credit cards I'll be replacing it with: ## Gas Stations I'll use my [Chase AARP Credit Card](http://www.aarpcreditcard.com/) to get 3% cash back at gas stations. When a rotating category card like my [Chase Freedom](https://creditcards.chase.com/credit-cards/chase-freedom) or [Discover it](https://www.discover.com/credit-cards/cash-back/it-card.html) offers 5% cash back at gas stations I'll use one of those instead. ## Grocery Stores I'll use my [American Express Blue Cash Everyday](https://www.americanexpress.com/us/credit-cards/blue-cash-everyday/) to get 3% cash back at grocery stores. When a rotating category card like my [Chase Freedom](https://creditcards.chase.com/credit-cards/chase-freedom) or [Discover it](https://www.discover.com/credit-cards/cash-back/it-card.html) offers 5% cash back at grocery stores I'll use one of those instead. ## Walmart & Target The [Walmart Credit Card](https://www.walmart.com/cp/walmart-credit-card/632402) offers 3% cash back on Walmart.com purchases. No 3% for in-store. There's a [Target REDcard](http://www.target.com/c/redcard/-/N-4tfyn) which is offered as a debit or credit card. It gives you 5% off in-store and online. I'm not sure if I want to get either of these cards yet. ## Amazon.com ~~If I pick Bookstores as one of my quarterly categories on my [U.S. Bank Cash+](https://www.usbank.com/credit-cards/cash-plus-signature.html) then I could get 5% cash back on Amazon.com purchases up to $2000 per quarter since Amazon.com purchases will code as a bookstore.~~ This may no longer be true. Chase recently introduced an improved version of their Amazon.com credit card. They now offer the [Chase Amazon Prime Rewards Visa Signature](https://www.amazon.com/Amazon-Prime-Rewards-Visa-Signature/dp/BT00LN946S/) in addition to the [Chase Amazon Rewards Visa Signature](https://www.amazon.com/Chase-Amazon-com-Rewards-Visa-Card/dp/B007URFTYI/). The blue Amazon Rewards Visa Signature offers 3% cash back on Amazon.com purchases while the silver Amazon Prime Rewards Visa Signature bumps the cash back up to 5% for Amazon Prime members. Before you could only get 5% cash back at Amazon.com with Amazon's store card. But now you can get 5% cash back with a full blown credit card that's usable outside of Amazon.com. Both cards have no annual fee, though technically an Amazon Prime membership fee is the Amazon Prime Rewards Visa Signature's annual fee. One neat thing about these cards is that they are probably the only no annual fee credit cards that are made of metal instead of plastic. Usually only higher tier travel credit cards come in metal. ~~I didn't want to be forced to use a category on my U.S. Bank Cash+ every quarter just for Amazon.com so~~ I preemptively signed up for a Chase Amazon Prime Rewards Visa Signature. I saw that the Amazon Prime Rewards Visa Signature had a $70 Amazon.com gift card as a sign up bonus over the Amazon Rewards Visa Signature's $50 Amazon.com gift card sign up bonus. I wasn't a Prime member but wanted that extra twenty bucks so I signed up for an Amazon Prime free trial which made me eligible to sign up for the Amazon Prime Rewards Visa Signature. 2 day shipping is the only reason I would want an Amazon Prime membership. I'm going to cancel my Amazon Prime membership before the trial ends because 2 day shipping never seems to get my order to me within 2 days. I confirmed it with the first purchase I made with my new Amazon Prime Rewards Visa Signature. When my Amazon Prime membership ends my credit card will simply revert from 5% cash back at Amazon.com to 3% cash back which I'm cool with. ## R.I.P. See how many cards I'll need to carry in my wallet just to make up for the Sallie Mae MasterCard? I'll be surprised if we see something like it ever again.

Solid list. It's funny, I almost closed my Chase Amazon card because at 3% it had no value to me, glad I didn't. I will be using my Bank of America MLB World Mastercard for 3% gas when I don't get 5% from Discover It or Chase Freedom. Signed up for a bunch of those for signup bonuses and never expected to actually use them. I am half considering buying gas gift cards during 5% quarters but I probably don't want to go through that effort, I don't spend all that much on gas.

Id say you should also post this on /churning. They will love to hear this

Human: Title says we but with all due respect, I mean my wife. That being said... We live in New Jersey. My wife's childhood years were spent in California before she moved east in her 20's. My wife's mother passed away in 2005, but had a surviving spouse who my wife never kept in contact with (he wasn't a pleasant person from what I've heard). We learned yesterday that sometime over the last 12 years he's also passed away. My wife also had a half brother who passed away a few years ago. So out of the blue yesterday we received a call yesterday from a gentleman in California who apparently owns a property preservation company. The whole reason this supposedly came to light is because he started to notice that there appears to be squatters living in this overgrown, dliapidated property and he became curious about it, so he started to research who the owner was. The owner of record to this day is still my wife's deceased mother. At the time of her mother's passing, her spouse was still actively residing in the house and due to the lack of contact, we had no clue he had even died. My wife at this point is the next of kin, which from everyone's understanding would give her legal rights to the property. The man we spoke to is interested in purchasing the property and said he will draw up an offer over the next few days. He said he is willing to pay for everything involved, including the probate attorney and any other fees, etc. With a little research, in a rehabbed condition the house would be worth probably in the neighborhood of $160-200k. No one has been inside the house at this point, but just based on the pictures they've sent us on the outside, I can only imagine it's going to need a ton of work both inside and outside. The roof alone you can tell needs a complete re-do. My wife and I have already talked about feeling lucky to get an offer anywhere near $50k for it, and even that might be higher than we expect, considering that anyone going in there, after renovations, is going to have to make a profit somewhere along the lines. This kind of came out of nowhere, and any advice as to what to be aware of or tips of what to look out for would be helpful. My wife has already expressed her interest in getting rid of the house as soon as possible. We have our lives here on the east coast and we don't really want/need another headache at this time in our lives. We don't have the ability to deal with lawyers and courts and evicting squatters and rehabs so the fact that this guy offered to handle all the work/fees is nice, and we certainly don't view ourselves as greedy people, but we don't wish to get hosed either.

Contact your own estate attorney. There are probably some legal issues that need to be worked out that I wouldn't trust it to a lawyer working for someone else

This is not a question for /r/personalfinance as this is a legal matter. Consider finding an attorney familiar with estate, probate and real estate law where the decedent passed and where the property was located. -

Human: I bought a house in a really hot area right before it took off in 2012. I moved in the summer of 2015 and hired a management company to rent out my house. I'm currently living mortgage and rent free (boyfriend pays and house is in his name) but pay about $1000/mo for day care. I make a decent salary but am admittedly not great with budgets and never seem to pay any extra towards the monthly loan payment which is currently about $360. Interest rate is around 5.5. I waiting to hear from my management company (which also has a sales arm) regarding what they think I could list my house for. I'm guessing I'll be looking at $75-100k in terms of payout. My boyfriend is hesitant bc of the promise of income when the mortgage is paid (25 years from now) but understand my desire to get out from under these loans. Thoughts from the experts? Assistant: Is the area still hot? You say you're not the best with budgets, so if you learn to budget better, you could potentially make a lot more money on the rental. Human: Yeah the area is still really growing (Fishtown section of Philadelphia). I imagine I might be able to get the rent up a few hundred more in the next few years but the place isn't as nice as a lot of others so unless I put some work into it- new kitchen, new floors- the rent will cap out.

I would keep the property for the time being. Make the most complete budget you can, see how much extra you can afford to throw at student loans, then train yourself to follow it.

Definitely keep it, Fishtown will be growing for awhile. Tons of Mainline kids will be fighting for it in a few years.

Human: Update or Edit or whatever: Holy crap! Lol. Thank you all for the feedback. Honestly didn't expect so many responses so quickly ha ha. If anyone has anything to add, feel free to do so. I just wanted to post this update or whatever you wanna call it to say thank you to everyone who has replied. You've given me a lot to consider and some great advice. I'd like to reply to each one individually but I feel like I would just be repeating myself if I did, so I am doing so here lol. Again, thank you for the responses! You are all very helpful! So I'll start with the short version and edit this to add any additional information requested. I am 30 (31 in May), married, no kids and we own our house. My wife makes a bit more than me, about 5k a year more than me. I make $10 an hour. I am "uneducated" as I was never able to finish getting my associates in computer programming. I have an 8k car loan, 1500 on my credit card and we have mortgage payments. Right now we live paycheck to paycheck. We are getting behind on bills and neither of us spend more than we need too, or at least not on a massive scale so simply cutting back isnt much of an option. What can we do to start getting to the point where 3 days before pay day we aren't contemplating selling a kidney? Ive often thought about investing but idk what would be a good first investment. Is there a minimum (absolute or simply recommended) to start investing in the stock market? Is there anything other than the stock market we could invest in? Since the internet is flooded with information that is sometimes difficult to distinguish which is good and which is bad, does anyone have any links they can share that would help us get started? Any insight would be greatly appreciated. Thank you.

>Ive often thought about investing but idk what would be a good first investment. You invest money when you have it, and can afford to (potentially) lose it in the short term. You're living paycheck to paycheck; you don't have the money and what you do have you can't afford to lose.

make a savings goal. this will not be achieved without a change. cut something out. Reach the goal. Make a new goal, seek to increase your pay.

Human: I have a good problem. Gorgeous wife, baby. Healthy people. Healthy income, albeit in a high-cost area of the US. After a small raise, it became quite clear hat my marginal tax rate is about 40%. So let's say my wife wants to work. Day care runs $2,000/month, realistically. Like I said high cost area. So she needs to make $2000 to pay for it. Actually she needs to make $3300/month pre tax. $40k/ year. Which means it's really not worth it unless she can earn $60k so we would get some benefit out of it. Granted there are some benefits that reduce the net cost. Still the second income to pay for child care makes no sense for us unless she can walk into a $60k/ year job tomorrow, which nets us $1000/month in spending money/ savings. ETA: Just to be clear, I'm not a 1% percenter looking to complain. Excellent middle class salary in a high cost area of a high cost state, federal+state+social security taxes take up about 40 cents of each extra dollar I earn.

You have to also look at lost opportunity costs though. If your wife stays home for 4-6 years til the kid is going to school full time, what are her career prospects going to be like after being out of the game for that long? If she was in a good job before, all of her experience, knowledge, skills is going to be 5+ years out of date. Employers may not want to hire someone who's been out of the field for that long. Or they'll be treating her as a newbie fresh out of school and if she was already up some corporate ladder, she'll be starting way down on the bottom again.

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