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danielv835

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Human: I am in quite a bind. I have healthcare coverage from my current employer but that only kicked in during December. I left home back in February of 2016 to escape an abusive household, but I was under my parents' health care before and even after I left. They had me on their plan for the entirety of the year I think because they sent me notification around October/ November that they were taking me off. The issue is now the IRS is saying I need to provide proof of both coverages or otherwise I have to declare that I was not covered for the 11 months. I have proof from my employer for my December coverage, but I tried getting something and anything from the previous health care provider regarding proof of coverage for the other part of the year. I have my health insurance card from then and they said that wasn't enough. When I contacted the health insurance company on the card, they said I had to contact the marketplace. I did and they said I had to fill out a 1095 a form and an 8962 which they could help me with. Now here is the real pain of it all. I was under my dad's plan so they cannot do anything further unless he provides them with his information. I cannot contact him about it because he has been sending me death threats for the past year so I know he will not help. Is there anything I can do? The IRS says that without those forms, I have to declare that I was without coverage and pay penalty fees. That's seriously messed up because I did have coverage and I don't want to have to end up lying and just paying fees for essentially an 11 month streak of being without coverage.

Try /r/legaladvice - they may have an approach you can use If your dad is sending death threats, you should be filing a police report and a restraining order (if you haven't already). Then an intermediary (like the court system) may be able to get the documents you need.

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: Hi all. Four and a half years ago, at the end of 2012, I started paying off my $50K+ of student loans as I got a $35K/year job. Today I paid off just over $1K in credit card debt (I usually pay it off monthly but sometimes I let it accumulate just a little) and made my final payment for my remaining student loan. Here is where I stand now: - I'm 28 y/o - $37K/year day job - Variable earning from side job (commission-based, made over $10K last year but this income is not guaranteed as there is a shake-up in progress at the company for whom I freelance) - I intend to pursue better employment soon but it's a theoretical discussion point until I actually move up in my career - Health insurance through my main employer - +/-800 credit score - Living in NYC, paying $780/month for a tiny studio-style space - No 401K, no investment or savings aside from a token $250 savings account/"rainy day" fund Given my current circumstances, how would you advise that I make the most of it? How should I invest my soon-to-start-accumulating (hopefully) income? By the way, thanks to all contributors and to the mod team at /r/personalfinance from this long time lurker.

Two words: emergency fund. Sock away 3-6 months' worth of expenses in the bank, then start working on some retirement savings.

You may find these links helpful: - [Credit-related wiki pages](http://www.reddit.com/r/personalfinance/wiki/index#wiki_credit) - [Credit Cards](http://www.reddit.com/r/personalfinance/wiki/creditcards) - [FICO / Credit Scores](http://www.reddit.com/r/personalfinance/wiki/fico) - [Improving Credit Scores and Building Credit](http://www.reddit.com/r/personalfinance/wiki/credit_building) *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: Lately, Geico has been advertising its car-buying services to me. My employer has also been sending me emails about its employee car-buying service, which is administered by Perks at Work. I'm looking to buy a used Smart Fortwo in the near future and would love to expedite the process, but I have no experience with car-buying services and have no idea whether they'd be able to get a better price than I'd get myself. Any thoughts on these services?

If you're intimidated by buying cars they can be quick and relatively painless but you can definitely get a better deal through a dealership if you're any level of reasonable with the sales person.

See what price the car-buying services can get you and use that as your hard limit to negotiate a better deal. At least for new cars I know most place use the TruCar platform as other commentators have mentioned. Those middlemen are typically taking a ~$300 cut for themselves, so realistically you can almost always cut at least another $300 off the price without the dealer having to trim their margin at all. If your not a practiced negotiator then at least check the car buying services as well as TruCar, Carmax, Carvana, etc.. to find the lowest price for what you want. Then go in person and start negotiations at $1,000-$1,500 below that price. Go up from there and shoot hard for a final deal $500 below the lowest price you saw. If in the end the dealer isn't willing to beat your lowest car-buying service price by at least a couple hundred dollars then walk out.

Human: I was involved in a minor car accident. While stopped at a cross walk, the driver behind me slammed into to the rear of my car, resulting in some damage to my rear bumper. We exchanged info. I had a cop come by to take a look. And the driver filed a claim with their insurance company. I responded to a call from their insurance company and gave them my account of what happened. The driver admitted fault to me, but I'm not sure they said the same thing to their insurance company... My question: do I need to contact MY insurance company to let them know what happened? Is there a downside to doing that? Again, the damage is pretty minor.

Previously, I contacted my insurance to let them know I was in an accident and the cop had already declared the other driver at-fault. They took care of the work that had to be done with dealing with the other driver and their insurance.

I wouldn't (if you're young). Let his company deal with it, if they contact you and say they'll pay for repairs, just get it fixed or get a check from them. Auto insurance companies will often use claims against you, even if you're not at fault. I think it's just a numbers game - people involved in more no-fault accidents are still more likely to get in more accidents.

Human: Trying to figure out when a good time is to sell a car and if it's worth it. I currently drive a Hyundai Sonata 2012 2.0t, 66k miles. KBB puts it at about $8500 and I'll be done paying it off in May. It drives fine but I'm trying to figure out when the best time to sell is or if it's more financially responsible to just drive it till it dies? I'ld like to start using the extra money in May to pay off my student loans. I work full time and my commute is pretty short so I don't really need a new one. Did I just answer my own question?

Ride it 'til it dies. Use the money you were spending on car payments towards the student loans.

Cars depreciate exponentially. So, it would be stupid to sell it when it finally slows down or stops with the depreciation. Pay it off, and live payment-free for another 10 years, minus maintenance and repairs, which are way cheaper than the depreciation that you paid on your current car. Buy a 2nd set of wheels, and some snow tires. They're cheaper, and they work better than an SUV. Stop trying to keep yourself poor.

Human: Ok so the basics: Just turned 24 yesterday, looking to buy a house within the next year. Lets say I need $7500 saved up to do so. I currently have about $1500 savings and $1200 in RobinHood [link to portfolio and post in r/Robhinhood](https://redd.it/5zxx8z). Every two weeks I have $400 to put into savings and/or invest in RH. My question is, what is the fastest way I can get to $7500 in 1 year or less? I do not want to invest in any penny stocks or super volatile stocks. Currently I put $200 in savings and invest $200 in RH every two weeks. I have been told I should probably consolidate my portfolio into maybe 2-5 stocks. Is investing in RH even the way to go and if so, do you have any recommended stocks? Any advice would be much appreciated!

don't invest if you need the money in 5 years or less. >what is the fastest way I can get to $7500 in 1 year or less? cut your expenses, work and extra job, and save $625/month.

For short term savings goal (< 5 years), stocks are not recommended due to the risk associated with a market downturn. Go with a 1% savings account like Ally so that you can sleep easy and can count on how much will be in there. Edit: I am also saving for a housing down payment in pricy SoCal, we have 70k+ saved, about 30k to go, looking in the next 12 months, all the best.

Human: I am ADHD and have always struggled with money management. I would have never imagined being able to keep a budget but have been for a year now, thanks in large part to this sub. The results have been astounding. I'm not going to pass along a bunch of hard numbers, but I would like to state it's tough seeing posts on here like "I make 200k a year and have 5 million to invest, please help!" We are a family of four on one, modest income (under 60k). For a long time I thought financial health wasn't really attainable. Nonetheless we've been able to transform our finances, and our lives by committing to a budget. In one year we've been able to bank 2 months of reserves, and have never had more money in the bank than we do right now and it's such a great feeling. For anyone who thinks you don't make enough money or don't have the discipline manage a budget, I assure you, you're mistaken! Do it.

Good for you, ADHD!

You may find these links helpful: - [Budgeting wiki page](http://www.reddit.com/r/personalfinance/wiki/budgeting) - [Spreadsheets section of the Tools wiki page](http://www.reddit.com/r/personalfinance/wiki/tools#wiki_redditor_created.3A) *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: My mom and her three siblings were given their parents' home after their death. The house and property is worth maybe $200k. My mom has asked me if I think it's a good idea for her to sell her share to her sisters in order to pay off debt. I imagine her debt is slightly more than the $50k that her share is worth. She currently lives in an apartment in a different city than the house. She's very private and won't give me more details about her finances. What do you recommend?

If she has no particular interest in owning a portion of that house then yes it probably makes sense. But it depends on a ton of other factors: - how much interest is she paying on her current debt? If this is a credit card at 18% then hell yes she should pay it off. If it's an auto loan at 0.9% that's a very different story. - do her siblings even want to buy it out? Are they all in agreement on the value? - if she didn't sell the house to her siblings what is the long-term plan? Are they all going to put it on the market soon? Is it a vacation home? Does anyone live there?

I'd say yes if the siblings are able to buy her out.

Human: I'll try and be brief - Really like my current job (Engineer), LOVE my current manager, like where I live, and other than not saving as much as I would like, life is great. I live in an extremely low cost of living part of the Midwest and make good pay for the area ($80k + ~7-10% bonus). Problem is there is no room to grow where I'm at besides my current manager's job and I'm pretty certain he has at least 6-8 years before he retires... and even then I'm by no means promised that role. I received a message two weeks ago on Linked In from a talent person from this new company (not a generic headhunter). I spoke to their talent person twice, and what would be my manager once. Everyone seemed great, the position seemed like something I'm certain I could do well, and its large enough company where I'm not worried about it going out. The next step would be potentially flying out to the location of the new job, touring the facility, etc etc. Its essentially what I do now but I would working with two manufacturing plants vs. currently I oversee one. I would be working / looking to move to Seattle, WA .... so a much much more expensive cost of living. Assuming things keep rolling forward, we've sort of sussed out that for me to be interested I would need $150k to make the move worth while, they seemed agreeable to that. I would be almost doubling my current pay, which to me is 2x my 401k contribution + 2x match right off the top. Washington also doesn't have state income tax (sales tax is higher though) so that would be like another free 6% raise. After we sell our current house, buy an a home for $600k or less in Seattle (my current number I use to budget), after all pre and post tax deductions, assumed bills for heat/electric/cell phone/cable/etcetc, current car payments and 2x the cost for car insurance, giving us $500/wk for my wife and I to live on, I could stick ~$5k/mo away. Right now we save ~$1k a month on top of the 401ks. Roughly $60k extra a year in the bank would be quite nice. At 29, this much of a bump makes a huge difference on when I could retire... If I get offered the job, I pretty much have to take this right?! **EDIT** Thanks for all the info, I really appreciate it! I should clarify a few things - the "buy a home" section was sort of for reference for budget sake... I would plan on leasing for probably a year, maybe 6-months if I found one. Also when it would be time to buy I would not be looking near downtown or east. Most likely West Seattle or stretching south to Kent, Renton, Des Moines, etc.,... I would think $600k get it done in those areas. And my budget numbers were including my wife's salary assuming she doesn't make a dime more than she currently does. Thanks again! **EDIT 2** Not software engineering / tech Assistant: If *all things being equal*, yes, this sounds like a great oppurtunity for you. However, I would look deeply into how secure this position is before spending money and time on moving. Human: My gut says quite secure. The facility I would be going to has 3 years worth of approved capital for a large expansion to a neighboring building. My job would be managing these types of capital projects. In addition to the large expansion there are many smaller $100k-$1mm project planned too. The company is quite large and I have heard of them before, I would see no reason to believe that this position won't be around for at least the next decade.

The other thing is that being in Seattle, even if that position isn't secure, it's not difficult to line up another engineering job in short order.

Security isn't how good the job is. It's whether you can get another. You probably can, though, it's Seattle.

Human: I'm aware that I owe the State of Indiana back taxes as well as the IRS but I have no other debt (credit card, auto, etc). I am actually a State of Indiana employee and am/was planning to soon file my taxes for the 2015 season. I have received, as far as I know, nothing in the mail in regards to any immediate action regarding my accounts. My original plan was to file for 2015, and knowing that I would receive nothing back in regards to federal or state taxes re-inquire as to what is at that point currently owed and move forward from there as surely it would have decreased. So, I get off work yesterday and swing by the ATM to take out $10 so I could get a bite to eat at a cash only food truck. ATM declined my transaction. Weird, I thought I had a couple hundred in the account still. I get home to find my balance to be negative $2,500~ It's after banking hours so I am unable to talk to a human about this, so I took a personal day from work today so I could call and get this sorted out. I thought perhaps my card had been skimmed from paying at a pump or something. I get put on hold for about five minutes and when the person returns they tell me that I received a levy from Premiere Credit and was given a number to call. Apparently Premiere Credit is closed today as well. Googling them I see they collect for the Indiana Department of Revenue so I can only assume they've levied my account on behalf of the state. What are my options here? My paychecks are deposited directly into my account and I was told that the one I am receiving next week will be levied too. I am now fearful that I could lose my state job, which I love, over this. The tax issues occurred as in independent contractor and not as an employee of the state. Has anyone here dealt with this? How easy is it to get on a payment plan? I was hoping I'd have more time to resolve this, I wanted to file my taxes for 2015 and re-evaluate what is owed after that was completed. I feel like the timing for this couldn't be any worse. EDIT: Of course, I am standing out front when the mail man delivers my mail today. I have a letter from my bank / Premiere Credit informing me that I am going to be levied. So I guess I "did" receive notice, even if it came a day late.... -_-

My account was just levied recently by the WI department of revenue for unpaid tuition that was supposed to have been settled years ago. I never got anything in the mail and when I called they told me my current address. They are only supposed to capture the available funds in your account up to the levy amount: it shouldn't have gone negative. Now, call The DOR immediately and ask for the levy amendment. They can reverse all or some of the levy and you will likely have to set up a payment plan. Mine was reversed in a day, and just because I set up a payment plan, didn't mean I affirmed the debt. I'm actually disputing it now, but set up a payment plan because, unfortunately the state can go into your bank account and take that money without court approval. It sucks, especially if it's erroneous like mine, but call them and get it sorted out, they are actually usually helpful.

Looks like they want you to launch a desperate crime spree.

Human: hello. i'm 17 years old(turn 18 in may). i work 2 jobs, one at a grocery store which i get somewhere under 500 a month and the second job is a pca(personal care assistant for my parents, i provide their medicine, cook food, help them in many things..) which pays about 1600 a month, both under taxes. i pay for many things in the house such as bills(internet, energy), car insurance, cloth, food etc.. more than 50 percent of household income, by end of the month i usually don't end up with anything and i claimed all my family members 6 in total( 4 childen and my parents). my question is it normal to get 13k in taxes?? the irs guy said that there is no way for that amount. been working pca for a year and at the grocery store for 2 months. thanks for all the help, i will make sure i check with my tax professional who filed for me.

You might want to check with another "irs guy" just to be sure. Maybe one with ,CPA after their name.

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: I've been looking for a new place to live, and set out with the intention of just renting a room or an apartment. However, I happened upon a house that's kind of caught my interest. It's a massive, 5-bedroom house, older and ugly as shit, but seems to be in good condition otherwise (haven't been able to check out the inside). The house is outside of my price-range -- the "Est. REFI Payment" (I have zero idea what that means) is $1,234, and I only take home about $1,700 a month. However, knowing the area, I could *easily* rent four bedrooms out for $500 a month, and figure even if I wasn't *making* money, my house payment and utilities would be minimal (assuming I didn't just split the cost of utilities, too; haven't thought that far ahead). Now, because I don't make all that much money, I'm sure *buying* the house is out of the question. However, my friend suggesting looking into "Rent to Buy" or "Rent to Own" or something. There's also some kind of loophole in this specific area, where you only have to put down 1% down to buy a house (she used to work in a Real Estate office, and now is a Loan officer, she would know about this stuff). Part of me is wondering if this is something I should look into and possible pursue... I mean, if I put some time and effort into fixing the place up, because the location is great, I could eventually probably get $750 a month *per room*. Even if I eventually didn't want to live there, seems like a pretty stable investment. Two-story house with a concrete foundation and finished basement, right next to a university; seems like a safe bet, to me. I dunno, it's probably still well outside of what I should be spending, but I thought I'd at least entertain my curiosity and try to learn more about this stuff.

Dude this is a huge undertaking. You better put your homeowner pants on all while buttoning your landlord shirt. This one will be a doozie! Good luck mate!

Even if you only have to put down 1%, you'll never get a loan if your monthly payments will be that high relative to your monthly income (not sure if $1700 is net, but even if it is, the mortgage would be too high). Usually "rent-to-own" is something poor people do when they want to pay five times the actual value of a piece of furniture or a laptop or something. I've never heard of that for a house. With other things, the companies offering the program make a lot by taking their property back and no giving you back any of the money you put in if you are late with a payment. When you buy a house, even if you can't make the payments, you can sell the place and get your equity back.

Human: My girlfriend and I are graduating this may. Our predicted combined salary out of school is about $110000. I used [this calculator](https://www.paycheckcity.com/calculator/dual/salary/) to find that after taxes and 10% to a roth 401K our predicted take home is about $6200 a month. I've done a lot of research but we have never seen anything close to this amount of money, so I am a bit nervous about if I am planning correctly. My predicted monthly costs are about $5000. This includes rent, paying towards debt, utilities, food, bills, insurance (car, health, renters/home), misc, entertainment and travel. Rent and debt being the largest costs. We have about $1300 left over for whatever. For the first year we would like to put this into a general saving account to have a bit liquid savings to fall back on just in case. After we have about three months worth of liquid savings, we would like to start investing this money. After the first year I plan to put the extra money into an S&P 500 index fund. Does it look like we have forgotten anything in our costs? Should I save more than what I am planning on before I invest? Should I continue to save a significant amount of liquid cash after we have three months costs saved up? Is an index fund the correct type of investing I should be doing? Things to note: We are not planning on having kids. We are planning on getting a 10-15 year mortgage after about 5-10 years. That's largely what the index fund will be working towards. There is a lot of rounding and guess work but I don't think my numbers are too far off from reality. edit: added food to the monthly budget

Time is your best friend when investing. Staring early is a good thing.

You may find these links helpful: - ["How to handle $"](http://www.reddit.com/r/personalfinance/wiki/commontopics) - [Investing wiki page](http://www.reddit.com/r/personalfinance/wiki/investing) *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: Any good suggestions for financial, investing, and/or real estate books to read? I've read rich dad, poor dad. Random walk. Millennial guide to investing. Thanks

You may be interested in our [**reading list**](http://www.reddit.com/r/personalfinance/wiki/readinglist). *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.*

little book that beats the market beating the street

Human: Hrblock did not speak to the irs on my behalf, or begin a peace of mind claim when this all began. They told me to call irs and do a audit reconsideration. I failed this. The irs has taken my income tax return. I called hrblock, they asked why i didnt have them start the peace of mind claim in the beginning, trying to blame it on me. Now the woman (who has all of the paperwork) said she will be in touch in a few weeks. It has been 3 weeks and no word. How do i proceed? Please help.

First, document all your interactions with H&R block. Hopefully some of them were over email so you have a better record. Second, start calling that woman and escalate up the chain until they can promise you a date for some kind of action.

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: Tips when trying to lease a vehicle, how to negotiate and get the best deal possible

Best Tip: Don't lease.

r/askcarsales

Human: Hi everyone. I'm about to close on a home and have relied on public transportation for the last 10 years. I will be moving to the suburbs and will likely need a car. I don't feel like dumping 30 grand on a car even if I have the cash, given that we've pretty much thrown a lot of our life savings into this house. What are the my best options here? I'm leaning towards a lease and do not expect to drive more than 5,000 miles a year.

There are cars that don't cost 30k.

With a lease, you'll be throwing money away by paying for something that you hardly use. Why not wait until you close, and the house is officially yours? Then, consider a reasonable $10,000-$15,000 used car, something 3-5 years old. It will last you another 10-15 years with minimal maintenance and repairs. You can own it and then drive it payment-free for a solid decade. What I did 6 months ago is buy a fully loaded 2012 Mazda3 with 40k miles. Original sticker of $26k, bought it for under $13k. For you, at 5,000 miles a year, you easily have 10 years of life. There's no timing belt service, so honestly, it could last you well to 200,000 miles. It'll rust before you have mechanical problem. With a lease, you're looking at money down, plus a monthly payment, plus full insurance on a new vehicle, just to have to restart it again in 36 months.

Human: I've heard a lot of rumors that my local bank is going to shut down. I have my mortgage there which is about 40% paid off. If they do shut down, what will happen to my mortgage and property ownership?

Typically speaking banks in the U.S. don't just vanish. The government has a strong interest in maintaining continuity, so if necessary they'll step in and force a sale or merger to a larger bank. TAL did a good episode about a bank this happened to: https://www.thisamericanlife.org/radio-archives/episode/377/scenes-from-a-recession

Most loans are sold to investors the government being the biggest buyer/investor. Its how banks keep liquidity, so I would be very surprised if they still own the loan unless its very new. You should be able to figure out if the loan was sold and if they are just servicing it for the buyer or not. But what will happen is the loan will be sold and you will be notified of the new lender, it wont magically disappear and you wont lose your house.

Human: Hello, personal finance. I just found out that my mother does not have car insurance. She owns her car, she also making payments on my sister's car (doesn't own). No car insurance for both cars. We are already struggling, and if we get in a crash, we are fucked. I just turned 18, I don't know much about car insurance. We live in Ohio. Where do we start? I saw that many companies want my mom's personal info in order to get a quote, I'm kinda nervous, I don't know if it's safe to give them our address and names. Please suggest companies, tips, anything. Sorry this is so blunt and odd, I just want my mom and I to be safe, but I have no clue how to get insurance in the cheapest way. Thank you. Edit: Guys.. I know driving w/o insurance is illegal in Ohio. That's why I'm here..

If your mom is ever pulled over or in an accident, she will get a ticket for driving without insurance. If she's in an accident, she will get sued by the other driver or their insurance company and will be on the hook for whatever amount the court settles on. Her wages will likely be garnished to pay back the debt. I have no idea how she can make payments on a car without insurance. The lender usually knows you don't have insurance and forces it on you if you don't prove you have it (at a huge premium, of course).

Car insurance is required by law in Ohio, I believe. So there's that as well.

Human: Hey guys, as the title says I'm 16 and I've accumulated about 8,000 USD from working at a fast food place and doing web design/development on the side. I have this money in my personal savings account (under my name but still attached to my parents). I am wanting to begin investing/generating a profit with the money I have made thus far. Any advice would be greatly appreciated. Thanks!

At your age, invest in education. By far your highest rate of return.

I am going to suggest a different route from some of the other suggestions here -- the path I went down. Open up a Roth IRA account, with help from your parents (it will have to be custodial). A Roth IRA is an account that you only get to add a certain amount to every year ($5500), and any gains you make on this money is **tax free**. Since it is still before Tax Day, you can actually contribute your limit from 2016, as well as from 2017, so you can deposit all of your $8000. Designate some of your money (maybe $4K) for an S&P500 Index Fund (VOO is the ticker symbol if you go with Vanguard). With the other $4K, invest it in individual stocks. Maybe split this into $1K chunks, and try to find 4 different companies you'd like to research and invest in. I recommend reading a book like "One Up on Wall Street" by Peter Lynch, and reading some of the articles on the website Seeking Alpha. The goal of the $4K in the S&P500 fund is to show you how the stability of a broad based index fund is dependable. Investing in individual stocks will help you to learn a lot more about the stock market and how it works. I started investing in a Roth IRA when I was 18 and it has helped me to be a lifelong saver, and to have a leg up on my peers in financial literacy. I hope it can help you to do the same.

Human: So this afternoon I get home to a check I received in the mail with my name and address on it. It appears to be from a legit company that I had previously applied to work for , over about a year ago. Today I receive a check with my name on it from that company . It isn't a big amount , it's about 400 dollars . The check includes when the pay period began and ended. Should I be concerned ? Possibly identity theft ??

You could probably call their payroll department and ask.

I once received a check purported to be from ING, the big European bank. The postmark was from Quebec, the bank routing number from a California bank, and the phone number was for a veterinary medical supply company in Texas.

Human: Hi everyone I had just recently bought a 2008 Nissan 350z. I made a big mistake as I didn't really think things through when I bought it, and now I am paying a total of $600 dollars a month in car payments and insurance. Is there any way I can sell the car so I can stop paying? Or do I have to keep making payments until the car is payed off? As of now I currently make around $1k a month with $600 going to car payments and insurance, $50 a month for gas (I use another car for work/school, but I drive the 350 when I go out), $50 for helping pay for groceries, $150 a month for paying my credit card, and $50 for a gym membership (which is pretty high imo). Fortunately, I am sharing another credit card with my dad, but I only use it for paying tuition at my community college, paying for books/school supplies, and food when I'm on lunch at work or school. Pretty soon I have to help him pay for tuition once I transfer to a university. Any advice would be appreciated. Thanks again. Ughhhh I thought I would be able to afford anything once I got promoted to full time, I won't make a big mistake like that again

Get rid of the 350z and use your school/work car for going out as well. You're not a baller, dont prentend to to be or you'll become a beggar instead. Im guessing you live at home since you excluded rent. Stay at home and fight the urge to move out. You can't afford it at the moment.

How long are you going to be paying the car off for? You should probably sell it, but let's assume you're not. Only alternative suggestion I have would be to consider taking it off the road to save on registration / insurance / upkeep, until you get on stronger footing.

Human: Right now I have $1,000 left of my student loan. Seven months from now, the Army will be sending my loan institute a check for $1,150 towards my loan. I've made so many advance payments that my next required payment isn't until some time in 2018. The money from the Army isn't a signing cash bonus, its money designated for only student loans (Student Loan Repayment Program). Would it make sense to wait out the seven months and have the army pay off the last of my loan saving me that $1,000... or should I just pay off the $1,000 now with my own funds? Assistant: If they won't give you the $1150 otherwise, than yeah just wait it out since you are paid ahead status. Human: Yep, if I pay off my loan now then I lose out on that Army money. As much as I'd like to be completely debt free now, my current plan is to wait out the seven months. Was just hoping for validation.

Yeah thats what I would do if I was in your shoes, free $1100, take advantage of it. you are basically debt free congrats! I can't wait to pay off all my student loans that will be a happy day.

Do that, but keep a very close eye on your debt. If the army payment is late,or if something goes wrong with the paperwork, you want to know this as soon as possible ;)

Human: If I buy alcohol from either a grocery store or gas station using my credit card will I still get the 2% back or will the CC company know it wasn't gas/groceries? Thanks

If the merchant is coded as a grocery store, you will get your 2% back

For everything else, buy gift cards at the grocery store. Works where I live.

Human: (Thank you for response to my last question, here I am specifically curious about how to plan out the two years). I am in grad school and my wife is stay at home mom with 2 kids. I am wondering if anyone may have advice about how to live off savings like this for about 2 years. Do we "pay ourselves" from one (savings) account into another (checking) each month. Maybe use rewards cards or something? Do you keep the full amount in a savings account, maybe a Roth IRA? Thank you .

It probably doesn't matter how you handle the accounts from an earnings standpoint. Your big challenge will be budgeting. You want to do something that makes you think very hard about each expenditure other than necessities, and a smaller checking account balance will help with that.

Grad school is, more often than not, a harrowing experience and with your situation every eventual bump in the road will feel like falling from a cliff. Chances are, your grad school or marriage or both won't last those two years. Unless you are in very hot field with money flowing out of the government or industry I suggest you reconsider grad school. You can do it a few years later, science can wait. A friend of mine went exactly your way and while he kept family and finished grad school, he was incredibly miserable in process and it took a tool. (And he was very lucky in few important forks in the road. You cannot rely on luck in such decisions).

Human: I graduated with a B.S. in mathematics almost 2 years ago with 65k in student loans and 0 in my savings. A few service gigs and an extra 2k in credit card debt later I finally found a full time job working at a nonprofit. As stoked as I am about my new job I'm almost as stoked about the means of getting from underwater financially. I did my budget and found that so long as I stay healthy, relatively sane, and life doesn't throw me any major curve-balls I can get by comfortable spending 13k/year. My first thought was spend all of that extra paying down debt but my SO said I should save. What's a good ratio for how to spend the rest of my earnings?

* 1. Keep a small emergency fund. With your amount of debt and your income, $1000 is a good number. * 2. Throw everything else at your debt. * 3. Keep a really close eye on your finances. Since you're starting working, your estimated spending might be a bit off. So monitor it and adjust your budget as you go along. If you want some company on your journey, lookup "budget report card on youtube.

Your SO probably (hopefully) meant you should save up for a little bit for an emergency fund. I would probably pay nothing to your debts but the minimum until you reach a savings amount that is comfortable, between 500-2000 or so. Then after that, put everything you can towards your debts, while maintaining your little savings fund. Use the savings fund as needed, but don't forget to replace whatever money you use.

Human: I'm really proud of myself, it's one of the only long term goals I've ever reached. I have many siblings but only lived with my younger sister. She was always good at saving (more type B personality) but I see something I like and in the moment, I spend everything I've saved on that (type A). I never reached a significant amount as far as a general account balance goes or in savings. The last three or so months are the only months I've had money in my account when my paycheck went in (f, 21; working for 3+ years) Generally I live paycheck to paycheck for lack of self control. I want to book a cruise for my significant other and me... how do I keep saving and resist the urge to spend it all on a "reward" for reaching my goals?

This is something I struggled with for a long time. Worked full time in various roles through undergrad, I was really my only support system. Didn't truly escape from it until the last 3-4 years when I was able to hold down my finances better and get a better paying job. You have to do your best to separate want money from need money. It takes a hell of a lot of mental discipline to keep extra money for saving, especially when a vacation/ night out sounds like exactly what you need right now. At the end of the day, you have to prioritize, work your way into a higher earning role, cut spending in certain areas, or a combination of those options, to really make progress.

Advice: your title isn't advice

Human: I have a credit card that I've carried for more than 15 years. The rewards aren't great (earn 1% back in 'points' that can be redeemed for gift cards and what not). I don't use it very often, only for purchases that I can't make on my Amex card (it's a Visa). It is set to automatically pay off every month. Also, it has a $49 annual fee, but I can use my points to cover the fee. My only other credit card is an Amex card that I've had for about three years, which is also automatically paid off every month. The only argument for keeping the card is that I have such a long history with the card, and a very high spending max that I never come close to hitting. So, every year I make sure I charge enough on it to have enough points for the annual fee, and never have enough points to get any actual 'rewards'. Would you cancel the card and get a different Visa with better rewards? I would lose all of that credit history and the high maximum balance, both of which benefit my credit. I have no plans to purchase a home or finance anything in the near future. I bought my car with cash two years ago, and am in a rent stabilized apartment that I love (so don't have a mortgage). Annually I run about $6,000 if not less through the card, so could earn about $100 in cash back rewards if I go with a 2% cash back card (with no annual fee), for example. It's not much to gain for the loss of credit history, but on the other hand, it seems like free money that I'm just passing up every year to maintain this credit history. What would you do? Assistant: Check to see if the company has a no annual fee version. I was in the same situation and switched to a fee-free card and kept the account and credit history...but ditched the annual fee. Citibank AAdvantage --> ThankYou, for what it's worth. Edit: "fee-free" not few-free. Darn you autocorrect. Human: I should have mentioned this - I called them last year but they did not have an option to switch to a no fee card!

In that case, call to close it. Who knows, maybe when you do that they will suddenly find a non-AF option...

Call again and straight up tell them if they can't product change to a card with no AF you that you'll cancel. I had a Capital One card I got a while back and somewhere along the line they changed it to a Quicksilver One which has a $39 AF (not sure why despite having a great credit score). I call, tried to change it 2-3 times. Finally I gave the ultimatum and cancelled it.

Human: As the title says, I'm 23 years old and have gotten my first real job. Ever since I left university I've been working very menial labour jobs in northern England, living at my parents for very little rent, and without any bills apart from my mobile phone contract. So having spending money was never really an issue, but I have very little savings as what I earned was very low. I recently met some people who were staying in my local pub on business and became quite friendly with them, turns out they visit quite regularly and I got to know them. In January of this year I get a phone call out of the blue and it turns out that my friends had recommended me for a job at an engineering company they know of, as a development engineer, so I went for the interview. Then got called back for a second interview. Turns out I got the job, couldn't believe it, very excited. The pay is more than double what I got in northern England, and the company just had its best year ever and is expanding rapidly so is investing heavily in new employees for its future, now here's the personal finance help I need: The job is very close to London, and when I've been looking for places to live, I can only find house shares, which isn't a problem, I don't mind sharing for a while, but the problem is that even the lower end properties will cost me 50-60% of my monthly salary. That's a ridiculous amount! Another thing is I need a car to be able to get around, as the job involves a bit of travel between offices. They will pay travel expenses which I'm happy with, but I have £1500 savings total at the moment to be able to get a car, which doesn't get much in England, and I will need insurance and road tax for it. I have been to my bank, to see what my options are for a loan and the best they can offer is, £10k over 5 years. With monthly repayments of £200, add that £200 pounds to my rent and bills I'm going to be left with barely anything to live on, let alone try and save. I know I'm not the only one in this situation, and I know that I have kind of been chucked in at the deep end, and probably being a little melodramatic, but I really want to make this work. Any help is greatly appreciated, and sorry for any errors, I'm writing this on my phone while on the train down to my new job. Edit: I really appreciate all the advice, it seems that it may be a struggle to start, but will eventually pay off. Here are a few comments on all the advice. 1. Unfortunately public transport isn't an option, there are 8 offices/factories around the UK and I will visit them all. That being said all business travel is paid for, mileage, petrol etc. But not the cost of a vehicle. So it's the buying of the vehicle which I will struggle with. 2. I am staying on someone's sofa at the moment and will find a house share. That being said the last few hours I have been looking around for property and it doesn't look as though I can live by the 30-35% rule and will likely be around half my monthly salary. 3. People have suggested a motorbike, I do not possess a bike license, I do have a full uk/European drivers license. I've looked on car buying sites and can get a solid 10 year old vehicle for around a thousand pounds and about 300-500 on insurance/tax. 4. The job really is my dream job the company is amazing to work for, very caring for employees, and always promotes and train employees from within before getting external people, the first thing I'm doing is going on a 2 week paid CAD engineering course in worscester, hotel and food included, so as some people said that I can't afford the job, I really have to make it work, those who grew up in north England industrial villages should know what I mean, there is not a lot of opportunity. Thanks again for the advice I'm taking it all on board and will report back

Cross post this in ukpersonalfinance, some of this info is whack. 60% for living and travel costs for your first 'real' job and in London is fine and totally yo be expected. Definitely try to look at different places to live (suggested on another post) and don't get fixated o owning a car if you can get away with out it. Work hard, learn the job and keep your eyes open for a new one, be it with better terms to make your life easier (no travel, company vehicle etc) or small pay increase. You're in a great position for your age, just stick at it and save as much as you can (even if it's only £30-50 a month

If you get a credit card and make minimum payments every month you can afford anything necessary, it's a good idea, I definitely do not work for a credit card company

Human: I'm getting married soon and it's definitely going to cost more than I have as cash on hand. I think it probably makes more sense to get a personal loan than throwing all the debt on credit cards for lower interest rates (I have pretty quality credit of 720~) but have never taken a personal loan before so outside of some googling have no idea where to start. Can anyone give some feedback of how to best get started and what I should be looking for to get the best rates?

> Can anyone give some feedback of how to best get started Best advice I can give is either plan a wedding for your current price range, or delay the wedding so you can save for the one you want. Going into debt for a wedding ceremony is a very bad idea.

a personal loan will likely cost you at least 15% interest...not a good start to a marriage. you really should cut back or delay...i know that is hard to hear, but if you can't make that important move with your fiance, then you will have far worse budgeting problems down the road. if you must, go to a credit union (assuming that you are in the US). you'll be most likely to get approved and will probably get the best rate. as an alternative to a personal loan, if you own a vehicle, you may be able to take a loan against it at a much, much lower rate (like 2-6%).

Human: Thinking about looking for a new job. Problem is, I have $10K loan on my 401K. What's the most logical thing to do about this, other than paying it off ...

Generally, the loan will be due immediately when you leave. I don't know that you'll have a choice about what to do. Talk to the 401k administrator.

You may find these links helpful: - [401(k) Fund Selection Guide](http://www.reddit.com/r/personalfinance/wiki/401k_funds) - [401(k) FAQs](http://www.reddit.com/r/personalfinance/wiki/401k) - ["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'm going to college next year, so is there something I should be doing in terms of getting myself covered or my family in general?

healthcare.gov is one way, also your family may qualify for Medicaid depending on the state, and if they took the expansion money.

Welcome to /r/personalfinance! Comments will be removed if they are political, medical advice, unhelpful, or uncivil ([subreddit rules](https://www.reddit.com/r/personalfinance/wiki/rules)). Our moderation team encourages respectful discussion. You may find the [Health Insurance wiki page](https://www.reddit.com/r/personalfinance/wiki/health_insurance) helpful. *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 do some small time consulting work predominantly for Canadian clients but am getting interest from potential clients based in the US. I've never dabbled in this before so just trying to determine the implications. I did a basic Google search on the topic and am guessing this is where I stand. I need to file an M-7 form to get a taxpayer ID with the IRS, then provide an M-8 form to my clients so they can remit full funds to me without withholding taxes. Could someone clarify if it's more complicated than this?

If you aren't a US citizen and work in Canada you have 0 obligations to pay US taxes or report anything to the US.

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: I know this question is only tangentially related to /r/personalfinance, but I've come to appreciate the level of advice this community gives. I am an experienced IT Project Manager that has managed to advance my career through a mixture of determination, networking, and luck. Once in a company, I tend to prove my worth fast, but I have found it difficult to get interviews in the past. I feel the main reason is due to the lack of a college degree on my resume. My career has now advanced to a point where I am competing with not only Bachelor's degrees, but most relevant job posts are listing an MBA as a preferred qualification. I was laid-off due to the offshoring of my last role, and after a 6 month job search, I'm finally in the late stages of interviewing for a position I think I'll be happy with for the next 5+ years. However, I'm worrying that I'll be in an even more difficult situation after that time, with any career advancement opportunities being lost to others who have an MBA. I've seen commercials for Degree Programs that state they can give you credits for your "life experiences". I've always been well-spoken with a strong inclination towards Math, and having researched many things on my own out of curiosity of how things work. I've earned multiple IT and Project Management certifications (A+, Network+, Server+, CCENT, PMP), though the IT certifications were earned about 10 years ago. I've also taken a few odd classes at the local college over the past 10 years (Intro to IT, Japanese 1101). I would also be willing to earn other certifications if it meant being able to skip a class, allowing me to reach my end goal sooner. In an ideal world, I'd like to simply test my way through college, though I am fairly confident that is not currently possible. I know this is information that could probably be answered by an academics advisor, but every school I've seen requires you to be enrolled to discuss with an academics advisor. Also, most online schools are for-profit, which means they view it as detrimental to their bottom line for you to take less classes. Does anyone know of a resource that can assist with breaking down which certifications / experiences can be used for credits, and the corresponding degree / school to help me determine which *accredited* school / degree program would be most expedient? Or even which accredited schools are more lenient on giving credits for "life experiences"? TL/DR: Self-taught adult wants to know fastest way to earn an accredited Bachelor's Degree. Assistant: Cheapest, completely out of your pocket and sticking only to non-profit schools is starting at community college. Be sure to also get in contact with your 4 year university of choice to ensure you are only taking classes that will transfer and count towards the final degree. There are also exams you can take in lieu of some courses, kind of like AP exams, but for college students. Can't remember the name though. Those can knock out a few general education classes. Keep an eye out for scholarships. Being a non-traditional student might open up some scholarships for you. Not any faster, but definitely cheaper. Life experience for credit will vary by school. There is no aggregate resource; you have to look at what individual schools consider to be credit and probably talk with an admissions counselor (not the academic advisor). Look at brick-and-mortar schools, then see if they have any degrees that can be done online. I believe Georgia Tech has a Master's in Computer Science that can be done entirely online. More campuses are offering specific classes and entire degrees online. That may be a better route than searching only for online-only schools. Human: Thanks kayoss_. I should have specified the primary constraint is time. I don't mind costs going up to shorten the time frame, which is why I'm not considering community college at the moment. Choosing the local community college would add about an hour of travel time to my day which could instead be spent taking an additional class. I don't have a lot of faith in the admissions counselors, at least with the for-profit schools. One of the jobs I had before I got into IT was an admissions advisor at a popular for-profit online university. It was a sales department. You followed a script and were instructed to do a reverse-psychology sale (And don't get me started on the irony of convincing people they need to earn their degree while not having one myself). That is a good point regarding the brick-and-mortar schools. If any of my state schools offer all-online programs, their resident rate discounts can help keep the costs down.

You should still look at the community college. They tend to have a lot of online offerings particularly for the general education requirements.

Community colleges also offer online courses. They tend to be very accommodating to schedule constraints of working adults, with a heavy number of evening, weekend and online offerings.

Human: About 2 years ago I was in a bad place financially. I was in a bad seperation which left my bank account in the red about $250, upcoming bills around $2500, lawyer fees at about $7k, credit debt at $11.5k, and a truck loan for $32k. Everything was loosley planned out but when my spouse ran off with everything I was in shambles. I was earning $28/hr which may sound like a lot to some people but it was just enough to bearly get by. I was losing sleep and weight from the stress. What Im saying is, Ive been where many of you are now. I asked a close family member for a $10k loan. He said yes but it would need to be paid back within 6 months. I knew I couldnt do it. I went to the bank, but didnt qualify for a loan. I had no choice but to make it work. My brother gave me a piece of advice that I will never forget, and it has changed my life. It was hard to comprehend as a nice guy, but was absolutley correct. Always bet on yourself, and fuck everyone else. Within one week I asked to have my job switched to salary, they said no. There goes my attempt at a steady income. Then I asked what it would take for me to make a substancial raise. Apparently nothing I could do would get me there. One week later I opened a phone book, yes phone book. And called competing companies. 3rd phone call got me an interview, that interview got me a 100% raise. In believing in myself I doubled my income. ( seasonaly) my point is, I doubted my ability. After I took the job my prior employer of 5 years tried to offer me a raise to keep me. But that advice rang in my head. Now on jobs, I take everything they can give me, I work weekends, and bid on my own contracts. I dont drink, smoke weed or eat out to often. I cook from scratch and my outlet is work and the gym. I turned my career into my hobby, and my hobby into my passion. I got 2 roomates, cut my household bills by 66%. And in that 2 years have paid off the lawyers, 12k in credit debt and havent missed a truck payment. Not only that, but Ive put away $20k. For me it isnt enough and I will continue to grind. Ive booked my first real vacation ever and never been happier. So to each and every one of you I say this. Youve got this, dont fret. Bet on yourself and fuck everyone else. If your employer cared about you enough they would find a way to help you. If they dont offer, pit them against the competition. Its your life, they just live in it! Edit Yes, I have fat fingers and im on my cell phone. Im not giving advice on spelling or errors, but thanks. Yes it has taken a massive toll on my free time and social life. I am dating but it is the least of my concerns. And the girls im dating know its business first. I work about 8-10 hours on site 5 days a week. And about 1-2 hours per night doing the paper side of work. My income has doubled, but my efforts have exceeded that. Thank you to everyone, I really did not expect to reach so many people. To those who doubt what im saying, or give an excuse as to why im lucky or it wouldnt work for them. This is the attitude that is holding you back. Dont let it or anyone else hold you back from getting what you want in life. Set strong realistic goals and stay on course. Good luck to all of you! Edit 2 shit...I got gold. Thanks to whoever did that! Edit 3. My raise in income is not hourly. I do not make $58/hr. I run my own contracts, through another company. They offer me a flat rate for a job. I take every single job. Some days I earn $2200/day some days I earn nearly nothing. But it has averaged out to about $60/hr if I worked 8 hours. Quite often I work 12-14. Not only that but I have expences now that I dont have an employer to provide me my tools. But no matter how you cut it, it was a good move Edit 4 For those of you still wondering. No dont go out and screw over other people. But if it comes down to you or them choose you. My buddy has 3 degrees, and is a certified train conductor. He got his train papers and needed a job until he got the call. I hired him on because hes my friend and I love him. With no experience he started as my labourer. 10 months later he got the call and moved. 4 months later he moved back. I pay him more than he made as a train conductor with 3 degrees. He gets a percentage of what we earn, this way I cant lose and it motivates him to work harder. One year in with no experience and hes making around $25/hr. You see I could hire 2 labourers at $11/hr but having him doesnt hurt me. It just benefits us both. Assistant: Great story but the spelling mistakes really bother me Human: Sorry bud, typing on my cell phone and i have big fat fingers

Ya it's obviously not a big deal, I'm just a dick. Glad to hear you turned things around

It's a good story and thank you for telling it.

Human: Weird situation.. My inlaws (spouse's parents) are literally horrendous with their money - constantly falling for get-rich-quick schemes, buying a too-expensive house, wasting money on stupid stuff. They have essentially nothing in retirement savings, are approaching retirement age in 5 years, and have about 10-15y left on a 30y mortgage (they bought at high housing market and after the crash the house was worth ~20% less than their purchase price). My spouse wants to help them even though we are just starting off on our own financial journeys together. Because both of us work and have paychecks, I think some of my spouse's money will inevitably get diverted to the parents, particularly in helping them move closer to us. I am worried about our joint income to be given to them, because I am sure they will squander it and make terrible choices with the money. Also, since we are relatively young, there is a huge opportunity cost if we were to keep the money and invest it x30 years. But I don't know if there is any way out of this. One thing I was thinking was to have her use her money to buy a small house and keep it under her name and then allow them to live there. The parents can sell their current house, use some of the money to pay off the rest of the mortgage, and the rest as a retirement egg. Then, in the case that they pass away after a long and healthy and happy life, at least the economic investment will still be in my spouse's hands (i.e. in our family). Then, at least, the money is still in the nuclear family and can be used for our kids, or just for our own retirement needs. Any problems or challenges with this plan that you foresee? Anything that I am significantly overlooking, or anything that would be an even better solution?

That would be a mistake. Helping your in laws will come at the cost of your financial future and your children's educations. Unless your in laws are homeless and/or hungry they do not need your economic intervention. You will not be solving their problems you will be enabling. You will risk your marriage, sanity, and finances. If you are ok with all of that then go for it.

My wife and I did this about three years ago. Her inlaws may have been in a worse situation than you're describing so something needed to be done. Our experience will definitely be in the minority, but it was the best decision we could ever make. Sometimes old people are stubborn but deserve a reset to snap them back into reality. Once they realized the second chance we were giving them they corrected a lot of their financial infidelities.

Human: I typically use Turbo Tax Free Edition every year, do the Federal through through there, then the state separately to save $10. In the end, it's zero cost to me and a bit more time for the state taxes this way. This year, my parents used H&R Block Free Edition, so I figured I would too. I don't have anything majorly complex. Two W-2's from a job change mid-year, 1099-DIV, three 1099-R's (401k rollover, company had to do it in 3 separate transactions), and a 1099-B for when I exchanged funds in a taxable account with Vanguard. Correct me if I'm wrong, but all these are normal things an average American would have. Get the entire way through the Federal and the 1099-B is a "special form" accordingly to H&R Block and to continue, I have to upgrade to the Premium Edition. Being at the end, I say, sure, for $54.99 I just don't feel like wasting more time inputting stuff. Plus, you'd rationally think you could do the state taxes through the premium edition, right? Wrong! **Additional $30 something to file the state taxes... on top of the $54.99 for the premium already purchased**. I skip the state ones - keep in mind, it only tells you this AFTER you do the state taxes. Another gimmick to get you guy "purchase" more through them. The final straw came when they were going to **charge another $34.99 for me to receive my federal return funds**. Yes, you heard right, a fee to receive the funds via wire/bank transfer. Of course, the other option is to sign up for a prepaid Visa card on their site, which requires a bunch of documentation, agreements, etc. Other than that, you can't have your refund. **What the hell H&R Block?** It easily felt like each time they asked for more money it was strategically placed at a point where you'd be feeling like "I just want these done!". Fine, I get a 1099-B might be a bit of a special form, but it's nothing crazy. It didn't even change my refund amount. But $30 something for the state after paying for premium? Then $34.99 for to get your funds? Ridiculous. **The total came in around $120** if you didn't opt to sign up for the pre-paid card, which wasn't a simple process it appeared. For that price, I could toss my documents on a tax preparer's desk and say "do these".

Unlike other folks here, I sympathize some. I work at a public library and have had a couple customers come in for tax forms who were super frustrated because they went to H&R block for their "free" filing service and the associate there didn't tell them what it would cost (or even that it would cost anything) until they were basically 90% of the way through the process. I think it's fine to charge fees for a service, but be up front about what you charge from the get go.

> I don't have anything majorly complex. Two W-2's from a job change mid-year, 1099-DIV, three 1099-R's (401k rollover, company had to do it in 3 separate transactions), and a 1099-B for when I exchanged funds in a taxable account with Vanguard. Correct me if I'm wrong, but all these are normal things an average American would have. Yeah, not highly unusual, but certainly not the "average American". You might be surprised what the "average American" does with their money... > Additional $30 something to file the state taxes... on top of the $54.99 for the premium already purchased. I skip the state ones - keep in mind, it only tells you this AFTER you do the state taxes. Another gimmick to get you guy "purchase" more through them. They definitely tell you that when you're going through the process. > The final straw came when they were going to charge another $34.99 for me to receive my federal return funds. Yes, you heard right, a fee to receive the funds via wire/bank transfer. Are you sure? They only charge that if you choose to pay the H&R fees with your refund. Either way, it's not their fault you didn't shop around.

Human: My wife and I have been living in the house I grew up in the past year, paying utilities only. However, it's in rough shape and is always cold so she wants out ASAP. So, aroind a month ago we found condo weike and agreed with the sellers to a purchase price of $110,000. We were going through quicken and would only have to pay around $6000 in down and closing. Everything seemed to be going well. However, this week the appraisal came back at $90,000 so quicken will not give us any more than that. We can't afford the rest out of pocket but still want the condo. Our realtor is working to figure out if the appraiser was wrong but in the meantime we're trying to figure out a way to pay it My wife and her parents had the idea of opening a chase card with 15 months no interest (using her parents card too if we can't max the chase card for the full $20000) and refinancing that debt into a conventional loan at the end of the 15 months. I'm very wary of this idea and don't know if it will work or if it's smart. Are there any other options we have or do we have to give up on this condo? Also, the loan is in her name since it helped us get a lower down payment. Her score is in the 730s.

renegotiate the asking price. If they wont budge move on. Appraisers are there for a reason

I had a similar issue. My mortgage broker organised a second appraisal who was a lot closer to the asking price. The aren't all always correct.

Human: So my sister accepted a new "personal assistant" job earlier this week. It promises 20 hours a month for $1400 (essentially $70/hr). They sent her a check in the mail that she picked up at the post office for $2200 on Friday which she deposited into her checking account. It processed just fine and there in total today. They wanted her to take her $350 for this week and send the rest of it else where in cash...I'm unsure of the details of this. She didn't withdraw the funds as the check hadn't processed and she didn't have enough to cover the balance in her account. Today she's on a mini-vacation and despite her being "off" they called her and made her run errands to the tune of two moneygrams and a handful of giftcards which she scratched off and sent them the codes on the back. She cut them off from making her run any more errands since the $2200 that they sent her ran out. Apparently another check is in the mail and they want her to buy more stuff as soon as it gets here. This sounds like money laundering to me, particularly the gift cards. I would expect the scammer to resell the giftcards and get 90% of the value in cash. Apparently they are planning to meet face to face next week. I told her that the only way she should continue with this job is if they give her a credit card on their account as she shouldn't be using her personal account for their purchases. Finally I guess the question is, is this a scam? and if it is what should she do now? It's all on hold until monday when she gets the next check which gives us time. It sounds like she could get in trouble if we call the police as it's technically her actions. Should she just quit this "job" and not mention it to anyone? In case it matters we're in Wisconsin. **UPDATE** She got a hold of the bank and they were able to cancel one of the moneygrams for $1000, bringing the cost of this learning experience down to $1200. As much as I hate her loosing this money, I'm just glad it's not more. She's still holding out hope that its legitimate and that their money will come through. She said she'll call the police "if" the check bounces.

Please stop her immediately before she really gets into trouble and has to pay back all the fake checks to her bank. This is an obvious scam. It is not even money laundering, but she is cashing their worthless checks.

LOL! Your sister isn't a victim. She's an accomplice. She'd still be doing it if they kept sending money.

Human: Title pretty much sums up our current situation. Wife has large student loans from medical school but is on an IBR plan that amounts to 10% of her income for the next few years. Not much. We have about 500k in cash and another 200k in less liquid accounts. We've been preapproved for a ~1M loan to buy a 2 family multifamily in a hot market. 4.5% portfolio loan, 25% DP, 30 yr fixed, etc. Rental income very conservatively will be about ~25k/yr (so potentially 275k total income) Does this sound right? Are we getting in over our heads? Can we get a better deal? Anyone have experience with "physician" loans?

Are you sure your numbers work on this property? I estimate: 750k mortgage @4.5% = 3,800 / month Property tax 1,000 / month Insurance 200 / month Maintenance 833 / month Costs excluding voids = 5,833 / month If by "Rental Income" you mean rental revenue, you are losing $3,750 / month. If by "Rental Income" you mean profits after expenses, you would need to be renting each unit at $3,958 / month to make 25k / yr. That is a very high rent for one half of a 2 family. It is hard to interpret your numbers to know what sort of deal this is, but unless this 2 family is in some extremely high rent district, it does not sound right. The other thing to consider, even more than the profit from rent, is what will the appreciation on the building be? You do not want more income to be taxed at high rates. You want the property leveraged up to the maximum mortgage you can get that still produces barely positive cash flow, and to make your money on property appreciation, and the part of the rent-covered mortgage that is paying down principle, so that the main taxes on the gains are lower long term capital gains taxes when and if you sell. If the property is appreciating at 3% / year, and you were 80% leveraged, the return on your capital would be 15% / yr plus the principle repayments on the mortgage which on an 800k, 30 yr mortgage would be about 2% / yr. It's that 17% return in the early years of the rental, taxed only at long term capital gains rates that you should be looking for in a rental property.

You may find these links helpful: - [Student Loans wiki page](http://www.reddit.com/r/personalfinance/wiki/studentloans) - ["How to handle $"](http://www.reddit.com/r/personalfinance/wiki/commontopics) - [What's the best way to pay down my debt?](http://www.reddit.com/r/personalfinance/wiki/debt#wiki_what.27s_the_best_way_to_pay_down_my_debt.3F) *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: Throwaway account. Before I get into this, I’d just like to say that we are against terminating the pregnancy, and would like to keep it if at all possible. My parents were never around or able to provide for me, and I want to be a better parent than that. A little backstory on me, I dropped out of high school a little over 3 years ago when I was 16 because formal education has always been a struggle for me. I’m much better learning from experience than in a class room, and high school just wasn’t working for me. After I dropped out, I started an apprenticeship working full time at a machine shop for $15 an hour, cleaning up scraps and metal and other generic tasks that the machinists needed me to do, while learning how to operate CNC machines. A year later, the same machine shop hired me as a CNC machinist, making $23 an hour. My typical work week was ~60 hours a week, and I made about 70k pretax last year. While I was doing that, I picked up computer programming on the side, working on some minor android and web applications.   This October, I started applying to software development jobs because I wanted to transition into something that didn’t have me working long, sweaty hours in the shop. I was focusing primarily in the Seattle area, because my girlfriend of 4 years had started at the University of Washington in September. I was fortunate enough to land a salaried position in Seattle at about 85k/year doing full-stack development, which I accepted in December. When I moved to Seattle, my girlfriend moved out of her house with me, because my apartment was closer to campus than her parent’s home.   My current position: No debt, 35k in savings, 2013 Honda Accord paid in cash. Current take-home after tax is a little under 5k/month   Current Expenses: * Rent in downtown Seattle: $1200/month * Car insurance: $100/month * Food: 500/month (varies, we eat out more often than we should) * Insurance: $300/month * Phones: $100/month * Misc: 300-500/month on cute weekend dates * Company offers a 4% 401k match, and I’ve been putting 500/month into a retirement plan. This leaves anywhere from 1.5k – 2k going into savings every month. Ideally, I would like to save purchase a home to raise a family in, because an apartment in downtown Seattle won’t provide the space that children want to play in. My girlfriend plans on continuing online classes while looking after our child at home, her tuition is currently paid for, and she has no income/expenses outside of mine. Given my current situation, and the fact that I will be a father in August, how can I best prepare to provide for my child?

You're currently putting $1500-2000/month into savings. What's the problem with some of that going towards providing for your child?

Except for being unable to buy a house, you're in better shape than I am. Take the top posters advice and also remember that little babies don't need much. You will be fine!

Human: I moved to the US at 14 from a 3rd world country. I never had any education regarding finances here, so I have made horrible choices that were partly influenced by poor mental health and plans of suicide. I live alone in a college city and I'm on my last semester without an immediate job prospect in my field. My mom had helped me with everything up until last year, when she lost her job. It's been difficult for her to find a job because she is a single mom (sister is 12) and does not speak English. As of now I have 2 maxed out credit cards that I cannot pay. One is for $6000, the other for $1500. I made horrible decisions and completely blew the money when I had a plan to commit suicide last year, but I've been getting mental health services at my university and making great progress. Now I'm left with this mess that I can't even fathom how to get out of. Part of this money went into supporting my ex-girlfriend for a year, with the promise of paying me back, but once the relationship ended she told me to my face that she had no intentions of doing so. I have medical bills from self-harm incidents where my ex-girlfriend took me to the ER even though I have no insurance ($150). I haven't been able to pay my electric bill for three months ($300). And struggle to gather money to pay my rent since I had to move out of the place I shared with my ex. \ I also have about $50,000 in student loans. I am honestly in a point where I just don't know what to do and I'm falling back into self-destructive behavior. I am ashamed of my decisions and feel guilty for putting this pressure on my mom and I honestly don't know how to manage this stress. Any advice that could help me piece my life back together would be appreciated.

First of all, if you ever have suicidal thoughts, please call the National Suicide Hotline, there is someone to talk to you 24/7. Nothing is ever so bad that you can't find a way to fix it. 1-800-273-8255 What is your college degree in? Your situation is truly not that dire, you have potential here....

Classic america, study to get poorer look where this poor fella is now, I wish u goodluck sir,,

Human: Today my dad's yearly bonus check came in. He was getting about $1500 on it and had about $200 in his account. He checked his account and saw it was overdrawn by $40,000. He called the bank and they directed him to the IRS. They said his debt had been transferred to a collector and he would have to contact them. My dad's wages have been garnished by 25% for the last few years to pay towards this owed debt. It seems a little extreme for them to freeze his account like that after he had been paying them. What should he do from here? He said the debt is really about half of what they showed his account overdrawn by.

He needs to talk to an accountant and/or tax attorney. I am surprised it took them this long to do it. You cannot, ever, under any circumstances, no matter what owe money to the IRS. They don't have to go through courts to do exactly what they just did. My guess is that as your Dad, he is embarrassed and you probably aren't getting the whole story. He really needs to sit down with a professional and get this figured out. He really should have done it 12 years ago.

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: If you don't have a 401k at work, and you've already maxed your Roth IRA at $5500, what else should you do with your money? Thanks!

If you have a HDHP, invest in HSA. If not, move on to a taxable brokerage account or real estate.

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: My cousin owns a fence and roof company and offered me a job. He says I'll make 1500 a week and that i can start as soon as i graduate this year. Now the thing is i really want a car my friend just got a Subaru WRX STI and after driving it for a bit i realized i wanted one too. Would it be wise idea to buy a car that expensive while making that much money?

Saying you can make $1500 is different than having a steady job with that as your paycheck. I would recommend actually starting work and counting how much you actually earn. You may find the math is not as good to you.

You would probably be better off getting a pickup truck if you are gonna be a roofer.

Human: I recently responded to a letter sent to me from capital one about refinancing our 2011 car. Currently we have a 9.5% loan which for a lower credit score was a little expected. We are trying to recover from the score and we planned on refinancing in the future. So I submitted the e-application and they approved with a 6.x percent rate but we're going to charge a $2000 refinance fee. It acts like it will save us in the long run and will save $60 a month but is a refinance fee that large typical for a car loan? Edit: sorry should have been more clear, my current loan is not with Capitol one and the loan is for 15k and just got the 60 month loan 6 months ago. I'm really just wondering if a $2000 fee is normal for refinancing a car loan. It was very simple to fill out and seems pretty high of a charge when I will already be paying them thousands in interest. So if this is normal then so be it and I'll possibly use them but will still do around to find lower rates.

$2,000 seems ridiculously expensive... the credit union I work at charges $85 to refinance an auto loan

Yes, 9.5% is very high interest. Get it as low as possible and pay off loan asap, but beware of refinance fees. Just calculate it out in Excel each scenario and see which saves more money.

Human: Hi guys, first post here!- maybe just a panic moment but I really don't see how I'm going to afford anything in the future/how people afford anything now! I'm 24, $70,000/yr, engineer. - I put away $1,000/m into a high-interest savings account. - Contribute 6% to my 401k with 50% employer match up to 6%. (90% stocks/10% bonds) - I put $260/m into a Roth IRA. (90% stocks/10% bonds) - I put $260/m into a taxable investment account. (90% stocks/10% bonds) - Total monthly expenses round to about $2700/m ($320/m goes to a $9000 remaining student loan) I've read quite a bit about money management/investing at my age so I think I'm on somewhat of the right track when it comes to the long term - but what about the next few years? I want to have a wedding, buy a car, house, save for my future kid's college... just basically what I'd think to be normal life things! But when I look at the numbers, I get so overwhelmed. I look at people a few years older than me and they've been through it all (married, kids, house, car etc.) - but how do they do it?!? Am I saving too much for the long run now, when I should be putting that money towards shorter term goals? Should all of these major purchases go on credit so I don't necessarily need that much capital right now? What are the options available to me so that I can make it through the next few years without going up to my eyes in debt and putting my long-term goals off course? I've only recently moved to the US from Ireland, so I have a credit card with an $800 limit on it due to having no credit history here. Maybe I'm over-stressing on this, but I really need some advice! Thanks guys!

You're putting $1000/month into savings. You'd have $50,000 in four years. What are you thinking you won't be able to buy? Your future kids probably aren't an immediate priority.

Some people have partners who also earn income. That can considerably change things.

Human: Due to the tax refund, my husband and I are soon to have 7-8K in our bank account, the largest amount that we have ever had. This is taking away the amount that I agreed that both my husband and I can have for personal matters. I am a penny-pincher while my husband is an impulse buyer. What is the best way that we can actually save this money and potentially earn more? Even if my husband isn't, I'm concerned for the future. I don't want to live paycheck to paycheck, as we have been ever since we moved in together. Tips, advice? Anything will be greatly appreciated!

Keep this 7-8k as your emergency fund. Throw it into a high-yield online savings account (such as those offered by Ally, Capital One 360, Discover, etc.).

Have you tried seeing if they will bring some of it down? Also, what do your other monthly obligations look like , and what does your total household income look like each month?

Human: I'm a 24 year old college graduate looking to buy my first car. I'm not looking for any advice on what to buy. I'm a car enthusiast, so that much I can figure out myself. I'm looking for advice on how much I can realistically afford to pay. I'm extremely fortunate in that my college was paid for. I have no debt whatsoever. I reliable make $450 a week and have approximately $16k in savings. Although I'm not making an impressive amount, for the purpose of this discussion, it's safe to assume that my job is secure and that I'll continue making at least that much for the next year and a half. I say that because I do plan on attending graduate school which, fortunately, I'll once again have help with financially. I like to think I'm fairly responsible with my money. I won't lie, I'm not the most well versed in terms of how to make my money work for me, but I try not to spend frivolously. I go out with friends once a week, if that, and try to buy only what I need, so let's also assume for the purposes of this discussion that I save at least 75% of what I make with my biggest expenses being travel and food. I believe I'm being conservative with that number, but I'd rather be conservative. I drive about 17k miles a year and spend probably $40-$50 a week to feed myself. As I said, I'm looking to buy a car for myself. I can't use my parents car forever and I'm lucky they've let me use it this long. I'm sure I'm not giving anywhere near enough information for an answer to this question, but as this is my first car, I'm a bit naive as to what information you need to determine how much this could cost in terms of insurance and the like. I'd be happy to answer any questions necessary in order to help you all make a determination. Thank you for the help.

> I'm sure I'm not giving anywhere near enough information for an answer to this question, I think you actually did give me enough information. > I drive about 17k miles a year > I reliably make $450 a week > plan on attending graduate school So you drive a lot and your income is such that a car is a significant expense. And you're expecting to have less income a year from now. > approximately $16k in savings What this says is you can afford to buy a reliable used car outright. I think what's important for you is 1. not going into debt 2. not draining your bank account too much. 3. Low insurance payment. 4. Low cost per mile[1]. You probably should buy a used car outright and spent total no more than half your current savings or $8k. So probably should look at cars between $5k and $7k. With an extra $1 going to taxes, registration, misc repairs, etc. [1] 1400 miles a month at 50 cents a mile is $700/mo.

15% of your income is the maximum amount towards car payments, but that is really pushing it. If you can get loan payments, gas and insurance at 15% or under that would be better. You should put 20% down on the car. If you cannot pay the car off in 3 years I don't think you can afford it.

Human: I have lived in the city all of my life. I've been curious lately about the tiny homes seen on TV. I would need a tiny home large enough for my husband and I and our dog. Our dream is to be near the beach somewhere but we would of course consider other locations. Does anyone live in, or know someone who has lived in, a tiny home and has advice about that lifestyle? It's more of a curiosity rather than a set plan. However, I think it would be worth selling our current home, or renting it, and using the money to purchase/pay off a tiny home. It would be freeing not to have a mortgage especially in light of my massive graduate school loan debt. Of course, we would need to secure employment wherever we relocate. Any advice much appreciated.

Most municipalities have archaic building codes that make tiny house impossible. Sometimes you can get around this by building it on wheels so it isn't classified as a structure.

Better to buy a large home then rent out the rooms. Live for free.

Human: I live with just my mom and brother and my mom makes enough to give us what we need, we always have food clothes and a roof over our heads. But she doesn't make enough to let us do whatever we want all the time. I was talking to her about college and she said she didn't know how we were going to pay for it. So I'm just looking for advice so I don't end up going into a lot of debt. Thank you for any advice!

If you get good grades, SAT scores, and have decent extracurricular activities, AND your household income is sufficiently low, you might be able to get some very good no-loan need-based aid from one of the top-tier schools that has lots of endowment money (Ivies, etc...). You would need to be the kind of student who could get accepted to such a school. And you'd still have expenses (travel, books, etc...) that probably wouldn't be covered by your need-based aid, but there are some schools known for being more generous than others and if you're a top student, it's worth doing your research. You can use the Net Price Calculator to get an approximation of your family's cost at each school.

Apply for FAFSA. It sounds like you might qualify for some grants (something like the Pell Grant). Like you, I was lower middle class. I ended up going to a cheap 4 year state school and the pell grant covered A LOT.

Human: Hi everyone, My husband and I are in our late 20s with following financial situations: - earning 12k post tax per month. - We have mortgage+HOA+ property tax obligation around ~$4500 per month - ~$2000 personal/other spending - ~$300k investment with 90% stocks+ 10%bonds - holding around $100k cash now :( Are we holding too much cash? how much cash should we reserve as our emergency fund? 3-6 months spending? Should we put the rest all into stocks? as the stocks are in historical high although I understand we should not TIME the market. Thank you!!!

I don't know exactly why, but I'm getting the vibe that this is more a thinly veiled brag than a real question.

Good for you guys! Doing so well at such a young age!

Human: I have been looking to buy a new computer for sometime now, it just so happens that Lenovo has a great deal on a desktop that will satisfy my school needs, my personal needs, and gaming needs. I have a good job that i can easily afford the monthly payments of only $95 a month. The original price of the PC is $1067, but with the monthly payments it would be $1140. I am at a crossroads when doing this, my PC is really outdated and is starting to die on me, I would be able to easily afford $95 a month without getting close to breaking the bank. If I saved it would take until about 2018 to gather the money, but the deal would be gone. Help would be greatly appreciated, I am leaning towards doing Klarna and paying $95, a second opinion would be nice though. Assistant: If you need to finance a $1000 computer you're already too close to "breaking the bank". Find another way, another temporary job, whatever. Human: I am 18 years old with a job that pays about 450/week. I put $100 in savings every week for a car, and paying $95 a month shouldn't be a big issue, I am more worried about future on my credit if it will do anything bad to it. Assistant: Yes. If you miss a payment or default it'll go on your credit report and be sent to collections. Human: If paid monthly, on time, every month will it be okay to pull the trigger on this?

If you can't buy it outright you really can't afford it.

Alright honestly this highlights that you're young and looking for approval, but you're an adult and you're the only one that needs to be ok with it. No I don't think it's a good idea to finance it. Wasn't long ago I was in college with no bills and a part time job and thought along the same lines. Mistakes were made and I learned the lessons I needed (with computer purchases no less). Why don't you just build a desktop and get more bang for your buck? Order a few parts a week then assemble. No unnecessary debt or risk.

Human: I'm 16 years old and I own my own photography company. I run a photo booth that I made myself and take portraits of people. Over the past three years I've made about $7,000 but I've spent over half of it on camera equipment and a drone. I set out with the sole purpose of paying for my hobby with my profits but I've made a lot more than I could imagine. I'm a junior in high school right now and am starting to look at collages. I have no idea where to go but I know money will be a factor. I have and 4.3 GPA and a 30 on the ACT so I should qualify for a lot of merit based scholarships. I guess what my question is is what should my goal be for my money. As of right now I make probably around $600 a month working only 6-8 hours. I pretty much only spend my money on gas for my car and the occasional camera lense. I know I will not make enough to make a considerable dent into my college tuition so I'm stuck as to what to put my money towards. It is a significant amount for a kid of my age, I know, but I also know that it will soon be a miniscule amount for what I need to do in my life. Any thoughts? Thanks EDIT: Sorry about my grammar, as you can probably guess it was the reason my ACT score wasn't higher. Anyways, thank you for all of your comments. I did not think I would get this big of a response. To those who said I should not buy more equipment I respectfully disagree. Without the equipment I have bought I would not be making money at all. And those who said why don't I work more that is a two part answer. The first is that all my work is by booking gigs. So I can't always be working if no one books me. The second part is photo booths are almost always on weekend nights and I am a high schooler. I may not party hard but I do like to have a social life while I can. As far as college goes I pretty much will not go anywhere I can't get most of my tuition paid for. I do note what one use said, and that is that scholarships don't cover things like room and board and beer. Overall I think I will keep spending as needed, but with an overall goal of growing my money over time. Thanks

I think you underestimate what $3500/year would do to student loans. That said, hats off on the part time gig. $100/hr is impressive.

Anything you can pay on your tuition in college helps you in the long run. Student loan debt gains interest. The less you have the more you will save, exponentially. If you're spending a lot of whatever income you have there it is really more useful than having it sit in a bank account or whatever else. If college is the plan spend it on the expenses for that.

Human: just asking, they wont actually send your debt to collections will they?

How do you accrue venmo debt? When I've used it, it's linked to my bank account of credit card.

Why wouldn't they if you don't pay the balance?

Human: Hi all, Been reading this sub for quite a while but made a throwaway for this post as a few of my friends know my real account. Details are below but if there is any questions please ask as i want to make sure I am making the right decision here. I had one of my parents pass away at the end of the last year and somewhat surprisingly found the following account with me listed as a benefactor: * $250,000 in life insurance * ~$25,000 in an IRA I am relatively good about money management but this is substantially larger than what I have dealt with before. I am in my late 20s and this is what I already do from a monetary standpoint: * Max out my 401k contribution for the year. * Years prior to 2016 I also contributed the $5,500 max to an IRA post tax. I have not yet done this for 2016 yet. Not sure if it worth it knowing the above details. * Approximately $3,000 contributed to an HSA. * I also have approximate $40,000 in savings and not invested already that I was building up for a down payment. I have personally delayed buying a home until I figured all of this out. From an investment standpoint I do not really need any of the money immediately and wold probably want to invest a decent portion of it towards either retirement or maybe for a college contribution for future children(I don't have any currently) Below is what I feel are my current options based on some conversations I already had: 1) I had an offer from Chase as part of their Private client program to do managed assets. Based on what amount of assets I will end up having it looks like it will be a fee of 1.45% annually. The benefits I see for this is that I already bank with them and having all my assets in one place. Also I have someone I can just call to find out whats going on. 2) Find someone else who offers similar options as #1 in a managed account that is more competitive on rates. I tried doing some research on this but I could not find any concrete numbers based on amount held etc. 3) Invest this money myself. Personally I am not sure if I trust myself enough to invest correctly with such a large amount. I definitely don't want to be managing this everyday or anything like that. I already have enough stress currently as is and don't want to add this on top of that. If there are any more options to look at I will gladly look at them. Thanks for all the help in advance.

Sorry for your loss. Read the wiki on "Windfalls" in the sidebar, and the one on "Investiing". Also read some of the books listed on the sidebar, especially the "Bogleheads Guides". Definitely max out your IRA for 2016 and 2017 (5.5k each, you only have until April 15 to max out 2016) before doing anything else. Then, do some research and make a plan for what to do with the rest. Do not pay Chase 1.45% annually to manage your money. Too much. Not enough value. You can do this yourself. If you want some management and advice, Schwab has an advisory service which is part human and part automated which is much cheaper. But, you probably really don't need that. You can do it yourself. If you want to do it yourself, you want to invest in index funds. The simplest will be retirement date index funds with a date close to when you plan to retire. Slightly cheaper, but requiring more work to re-balance yourself as you get older, would be a 3 fund, or 4 fund portfolio. Good luck.

I am sorry for your loss and I'm glad that you are taking the time to process everything and decide what you want to do with the money before you make any moves. You can avoid paying taxes on the inherited IRA, but you will have to open a new IRA to do that. I would suggest reading up on the [regulations](http://www.marketwatch.com/story/the-10-vital-rules-for-inherited-iras-2009-11-12) regardless of whether or not you choose to self-manage. Even if you want to have a human advisor instead of a robo-advisor, any fee over 1% is downright criminal. I completely understand your desire to have someone you can call up or go see if you have questions or concerns, but there is no reason that you should pay that much. As others have said, in the long term there is no meaningful difference between active management by a human or by software. I've never personally used Betterment, but I've heard that they perform about average with very low fees. However, this is a personal choice and you just have to weigh your feelings against the cost. I would suggest keeping enough out of investment to fulfill your down payment, but avoid expanding your budget because you can afford more house. Unless, of course, you plan to have children within the next 3 years. It would be easy to tell yourself that you should buy a 3-4 bedroom home so that you can stay in it after you've had kids, but the problem with doing that is you then get caught in a situation where you are either paying taxes and heat for an empty room or you will find a use for the extra room then have a hard time giving up that space once you do have a child. It is far better to keep your mortgage, taxes, and utilities as low as you can for the meantime. Good luck with your decision! You must be having a very rough time dealing with everything, but there are resources for you to use in the sidebar to get you headed in the right direction.

Human: Me and my fiance are looking at a 401k with her company, but theres some language in the paperwork that concerns me and I wanted a second opinion. ["The annual plan administration fee is $39 (not prorated). The fee to process plan distributions is $40. There is a $150 one-time loan document fee and an annual loan maintenance fee of $50. These fees will be deducted from your account."](http://imgur.com/a/JYcOQ) Her employer doesn't match any contributions. Why so many fees with her 401k and does the tax benefit offset them? Would you use their 401k plan? (we are pretty healthy financially and are just sitting on a lot of cash and looking for ways better to manage our incoming paychecks). edit* We both max our IRA's, I contribute 14% of my salary to a pension plan + another $400/month to a 457.

Basically, as follows: $39 fee, non-prorated: You pay every year, and even if you leave six months into the year, you still have to pay it. $40 fee to process plan distributions: You pay this in order to withdraw money. $150 one-time loan document fee: You pay this if you ever take out a loan $50 annual loan maintenance fee: You pay this annually if you have loans outstanding Don't take out a loan, and you can avoid the last two. The plan distribution fee won't kick in until you retire. Realistically, the only fee you're on the hook for is the admin fee. If the company has a match, then yes, you should be socking away money into a 401K. Depending on your other saving instruments, you should also consider it if you're already maxing your IRA's.

The fees are all pretty standard. Either you pay for them, your employer pays for them, or you go with a company that pays for those fees by charging higher expense ratios. I would be more concerned with the actual expense rations charged for the different funds

Human: I'm 20 and don't have a credit score, have never used and and don't expect I ever will, my parents raised us to never use credit. So are there things in life I'll absolutely need it for or can I get by without it?

Not necessary, but very helpful if you ever want to rent an apartment, buy a house, sign up for a cell phone plan, etc. It's free to geta basic credit card which will not only build credit, but have many more buyer protections than using cash or debit.

You may find these links helpful: - [Credit-related wiki pages](http://www.reddit.com/r/personalfinance/wiki/index#wiki_credit) - [Credit Reports](http://www.reddit.com/r/personalfinance/wiki/credit_reports) - [FICO / Credit Scores](http://www.reddit.com/r/personalfinance/wiki/fico) - [Improving Credit Scores and Building Credit](http://www.reddit.com/r/personalfinance/wiki/credit_building) *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: Like the title says, I'm getting married in July and know that the IRS will consider the entire year as if I was married. Last year I had 2 exemptions and only managed to get back $700 (I had a couple failed side businesses and mortgage deductions) so I switched it to 0 to make sure I don't owe. We both have 1 job and I am in the process of starting another side business. Should I put it back to 2? 1? 3? Edit: estimated income is 170-200k (I do software sales)

I'd run through the [IRS Withholding Calculator](https://www.irs.gov/individuals/irs-withholding-calculator) and see what it recommends. It can get a bit more complicated with multiple incomes.

Changing to married will reduce your refund, so don't go there if you want a bigger refund. $700 is perfectly fine as a refund, of course. You don't need and shouldn't want more money refunded.

Human: I receive direct deposit for my checks, but all my paystubs are available online for review, so I didn't see this until I was checking out the site. From 9/6/16-3/5/17, my employer did not withhold any federal or state taxes, but as of 3/6, and now further paystubs I suppose will have federal and state tax taken out. Since I work at a chain restaurant(In N Out), I'm curious as to what would have changed without my knowledge for further paychecks to have these taxes deducted? I have very little knowledge about how taxes work, with very little experience as this is my first job. Thank you!

Your withholdings should be based on your projected future tax liability. You might not have made enough to warrant having federal or state taxes withheld before, but if you got a bit more money from more hours or higher pay rate, then you could now be over the threshold.

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: I'm a 23 y/o college student living independently in a 2-bedroom apt. in Oakland, CA paying $525 in rent for a semi-private living room plus roughly $50 per month in utilities/internet in a $1900 2-bed apt. I currently have about ~$175 to my name with no savings or valuable assets to speak of. My approximate monthly budget is [here](http://imgur.com/a/LfVKo). I moved to Oakland in late January after living with family for a year with about $3000 with the intention of getting a job right away so I would at least have a small emergency fund. However, due to some personal issues including drug abuse (weed and hallucinogens) and depression, I've essentially spent the last 2 months in my room sleeping, surfing the Internet, and generally avoiding almost all coursework or finding a job. The only thing I did with any regularity was go to class and even then I skipped some. I recently threw out my drug stash and am taking other steps toward overcoming my psychological issues. Here's my current situation: My $525 rent is due on April 5th and I don't have a job yet. I don't know if I'll be able to earn enough before then to pay my rent and still have enough to live. I've applied for food stamps but since I'm a full-time student I don't qualify in CA until I'm working 25+ hours per week. I'm flunking two of my four classes and am planning on dropping those (which could impact my financial aid next year). Getting financial help from friends or family isn't a possibility for me at this point. If I drop out of school right now I would owe my university $15,000 in addition to about $30k in student loans with no degree to show for it. Ironically if I drop in early April I might not owe anything other than the loans I took out but I wouldn't owe the money to my university, just my loan servicer but I digress. In other words, I would owe 40k in student debt but have the ability to pay it off normally to the fed. I'm pretty confident I can get a job within the next week as long as I hustle but I don't know if it will be enough $$$ in time. My first priority is tackling my drug habit and mental health but beyond that as far as I can tell I currently have the following potential options: 1.) Find a job ASAP my roommate who I pay rent to each month if I can use my $700 security deposit as my rent for April and then pay it back once I've consistent income. (I doubt this will work) 2.) Move home to family or friends if they'll take me in and help find a replacement roommate if necessary (and that's somewhat doubtful at this point). 3.) Find a job ASAP and pay the rent a few days/weeks late but screw my roommates over in the process since me paying the rent late makes us all late since we all lease together. I would have to pay a late fee of $50. 4.) Worst case scenario 1: Continue going to school part-time while temporarily homeless. Thanks in advance for any advice or help! Update: Thanks for the thoughtful advice everyone! This is why I love this subreddit so much. I'm about 90% sure I'm going to move home next weekend at this point, take a leave of absence from school and work full-time while addressing my personal issues. One step at a time...

Move home to family/friends. You're suffering from depression and the substance abuse isn't helping. Your first priority should be to deal with those. I was homeless in the Bay Area and it is NOT something I would recommend.

Bro if you have a license how about driving for uber ? they rent cars & I am sure you will make at least $1000 a week after the rent.

Human: Hello can someone help me I have a question I have a few credit card with credit available on them to use and I am going to use them to buy groceries what am I best doing please paying for the transaction with my credit card or withdrawing the cash from a cash machine and paying cash which is the best way with lower interest

Please read the second link in the auto-moderator response. This question shows you don't really understand how credit cards work. Nothing bad against you, you just don't have the information you need. Learn what you need to from that excellent link and act accordingly. If you mis-use credit cards because you don't understand them properly, they will destroy your financial life. If you use them well, they are a really good tool. The short answer to your question is to never, ever use credit cards for a cash advance. There is an immediate fee for cash advances, and you start paying really high interest right away. Buy your groceries by paying with the card at the store. There is no fee and if you pay the full bill payment (**not** the minimum payment) on time there will be no interest at all.

Never ever take a cash advance. Forget the option even exists.

Human: A realtor today told us about a federal grant program, which helps first-time home buyers who earn less than 45K to buy a house, by providing an interest-free loan of up to 5 percent of the downpayment. Has anyone here ever heard of such a program, and know where I can find more information about it?

That's not a standard program. That may be something local, or limited to certain houses or certain buyers. You'd have to ask the realtor what they are talking about. First-time homebuyers imagine they get special consideration, and that's just not the case in most situations.

Not sure about an interest-free loan/grant for a down payment, but the USDA Rural Development loans can get a first time homebuyer a house with no down payment and a very low interest rate (mine was 4.675, they are lower now) Edit: These loans were only for first time homebuyers when I got mine about five years ago, but now I think they're open to anyone

Human: We have found share certificates that were purchased in 1991 for ManWeb (UK Power company). I have since found out that Manweb was sold to Scottish Power in 1995, and there was a subsequent takeover bid in 2006 by a Spanish power company Iberdrola. I have no idea where to start about finding out if the shares are still valid or selling them.

There's some contact info here that should help - http://www.scottishpower.com/pages/shareholders_investors_contact_us.aspx

Contact the share registrar for Scottish Power - Equiniti. They will have all the details and be able to advise you on what to do if they are worth something :)

Human: Greetings all. I'm relatively new to this sub, was recommended by a close friend - seems to be a savvy and helpful community! Crossing my fingers this post is received well and I can bounce some thoughts/questions off you guys and gals. A little about my situation (and I assume many others): * I will be graduating medical school in May with a featherweight student loan debt of 250k - compounding average interest of 5-6% (this is around average student loan debt for most graduating doctors these days) * A vast majority of us have been coddled by student loans for the past 8 years (4 undergraduate + 4 medical school) and have little - none 'financial know-how' by the time we graduate medical school, yet we are expected to know how to 'adult', finance, and budget with our first real jobs (residency training) * This past Friday, I was happy to match into psychiatry residency program - 4 years supervised practicing salaried around 57k-60k/ year (don't get me started on duty hours). This salary is universal for all doctors (residents) in training +/- state by state cost of living adjustments * When all is said and done after 4 years, I will finally be able to make real doctor money - psychiatrists pull in about 250k annually give or take * Most residents I've talked to just defer their loans until they finish residency (calculating the accrued interest was scary when I did it) ------ Currently, I'm planning to contribute to my 401k retirement (program matches 5-6%) and looking into the PSLF (public service loan forgiveness program - 10 years of qualifying payments working at a state hospital/non-profit hospital and remaining loan debt gets wiped with income tax on that amount). Is anyone familiar/have thoughts on this? It seems like a no-brainer, although some have expressed caution in making minimum 'qualifying payments' in the case that the program gets sacked. I'm open ears to any/all financial advice that y'all may have as I move forward and try to be an adult. * TLDR: don't go to medical school

My only advice is keep an eye on the status of the PSLF - there has been talk of limiting or eliminating this altogether. There's no guarantee anywhere about this. Deferring sounds great when you're just on the cusp of earning a salary but don't forget it will cost you. I deferred through 3 years of IM residency and my loans added $25,000 over that time.

Anyone in a similar situation have experience with wealthfront? I know very little about it (and finance in general) outside of the podcast I heard that mentioned it. Would wealthfront be better than a Roth IRA or an index fund?

Human: Hey guys! So I've lurked on here for a while, and I need a bit of advice. My grandparents put away $10,000 for me when I was born, and there's a contingency that I won't be able to access it until I reach a certain milestone in my life, but this year I may get to choose how it's invested. It has to be no-risk, otherwise my grandparents won't agree, but also with a decent interest rate. I know those are hard to come by. I was thinking perhaps government bonds? The money currently just gets re-invested in CGIs every five years. I get a very low interest rate on these, so I'm looking for any options you guys can think of. Thanks! EDIT: I should have clarified, I live in Ontario, Canada

No risk high yield doesn't exist , but there are low risk decent yield options. Like madangrypally said, I strongly suggest the I-bond. It looks perfect for your situation

Start a Business. Get a license, doesn't matter what it's called because you can DBA.

Human: Anyone one else have anxiety about money? I'm 25 and have 18k saved up with a job that pays slightly above minimum wage. I feel like I shouldn't worry but I am always worried that 18k isn't enough and that it will all fall apart. In the upcoming months I will have to use 4k of that to pay for some exams and courses and that has me stressed even though I know that it will help me out with getting a better job in the future. How can I stop thinking like this ? It's every damn day.

I literally have 0 dollars in the bank. I think you are fine.

I feel sorry for people like you. Life is more about how much money you have. Live a little and stop getting your self worth from how much you have in your bank.

Human: Hi guys, so here's the shtick: I'm a high school senior, going to college next year, work three days a week delivering pizza and washing dishes, it ends up taking up my whole day even if it's a weekend day, and I'm taking four AP classes, I have piano lessons (both taking and teaching) every Wednesday that take up my whole night. Now on the financial side, I got basically a full ride so my tuition is covered with some allotted for boarding. I also have a $1500 work study each semester. My credit card bills every month end up being about +/- $200 by a margin of $50, mostly going out for food or presents for holidays and stuff. I used to pay $50 for my car insurance but now it's gonna be $200 for reasons I won't mention. I've been working since November and have been making about $130 a week plus about $45 in tips on average. So I've been afloat, even boat my computer for college already, cost about $2000. But now I have to pay taxes($500), my insurance went up and the constant working has been kinda tough to handle. I know I could probably make it through the last couple months of school but my mom has recently been telling me to just work two days. That cuts what I make by 1/3. I also really want to save $2000 for college as a fall back for who knows what I'll have to pay for. (Yes I know I'm better off than most incoming college students. I still don't wanna have to ask my parents for money.) So what would you guys do?

Cut back on the frivolous spending and cut back on the working.

Try to limit how often you go out for food, that can save you a lot of money. And if you think you can manage working 3 days a week, go for it. But if it becomes difficult, drop a day.

Human: I'm a 24 yo male. Currently work a security job making $17 ph. Shit wage I know. I've made some really bad choices in my life. I owe about $7500 in personal loans (mainly for stuff I really didn't need in the first place). I want to start turning myself around financially. And stop spending money on rubbish. But I kinda don't know how..

That's not a lot of debt and $35k salary isn't poverty (in most places). Eliminate cable, take out and stop buying shit you don't need. $7,500 should be fairly easy to eliminate in 2 years off that salary.

Budget. Budget. Budget. That's step one. You need to plan where every penny is going.

Human: I've heard some people say their car insurance payments are $250/month. Others say theirs are $450/month. What is typically the norm?

Age, vehicle, age of vehicle, driving record, zip codes, among many others all factor in to insurance costs. The vehicle payments also vary wildly. A 10 year old Honda Civic is very different than a brand new Ferrari.

I'm a mechanic I know what to look for and what to pay, I also only pay with cash because interest is bullshit along with every dealership and used car place. So buying off a person is the smartest choice, if you have car knowledge.

Human: Let me preface this with the fact that I know nothing about finance and investments. I have an old 401(k) account from an employer I am no longer with (left about 4 years ago). The account has a little more than $8,000 in it. Right now, it's split between a Freedom 2040 (75%) and 5 other funds (5% each). Should I roll this into an IRA? Fidelity has online tools that make it seem simple, but I'm not sure if it is the proper move. I would like to have a bit more control over my money (once I educate myself). I would really appreciate any advice on how to proceed with the 401(k) and where I might find some easy to understand information about investing in general. Thanks!

If it were me, I would roll it over because I like streamlining my financial accounts to the extent possible and reasonable. If you aren't being charged a fee to keep it with the old employer, and you have decent investment choices, then there is no harm in leaving it there.

You may find these links helpful: - [401(k) Fund Selection Guide](http://www.reddit.com/r/personalfinance/wiki/401k_funds) - [401(k) FAQs](http://www.reddit.com/r/personalfinance/wiki/401k) - ["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 left ~8k in a 401k from a past job just lying around, and for a number of reasons I never rolled it to my IRA. Can anyone tell me off the top of their head if that money would still be held in my name after 5 years, or was it reabsorbed through some financial loophole, if I have had no contact with that entity since? It's easier for me to post for some knowledge here, than to launch a search for their contact info and reach out. I'm kind of prepared for heartache. Thank you knowledgeable Redditors.

It's still yours. But finding it might be complicated.

You may find these links helpful: - [401(k) Fund Selection Guide](http://www.reddit.com/r/personalfinance/wiki/401k_funds) - [401(k) FAQs](http://www.reddit.com/r/personalfinance/wiki/401k) - ["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: Of course none of the options are actually free, but my income was low enough in 2016 that I supposedly qualify for FreeFile anyway. I will always avoid Intuit/Turbotax because of their little rootkit stunt they pulled ~2003, so I'm trying to use H&R Block. H&R Block wants to force me to use their "Deluxe" plan because I only have 1099-MISC paperwork as a contractor. Can anyone suggest an actual, reliable and free alternative? Is my situation so specific that I really have to shell out $50-$100 for their "service"? As always, many thanks in advance.

[Free File Fillable Forms](https://www.irs.gov/uac/before-starting-free-file-fillable-forms).

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: Im 16 and my first job is at a pizza place thats also a sit down restaraunt. Ive been,working there in part time for 2 days and I've already clocked about 9 hours at $9.20 an hour. The problem is all the owner did was put me in their computer system but I never got some sort of form or contract implying that I work there and I never got a W-4 form either. Is this even legal? I'm also afraid he's going to fire me before payday (which is the 31st) and he wont pay me for my work. I'm in Colorado so I'm not sure, if my state has any laws surrounding this? Please tell me what to do I don't want to get in any legal trouble and I don't want to get ripped off by the owner by working for him for free. Thank you for any help I will really appreciate it. Edit: Thanks for the replies and the advice guys, things are going better at the place I wqs just worried that I'd get fired because the owner is a REALLY big douchebag to employees especially new ones and I was almost convinced I'd get fired soon. Not signing anything made me worried it's illegal but I learned its not, so again, thanks guys. This place is the only place I got a real reply and this is why I love Reddit.

The restaurant business has one of the highest turnovers. Some restaurants don't want to waste time and effort putting their employees on payroll until after it has been shown that you'll stick around, so maybe a few weeks or so. The other issue that I can see is your age. At 16, there are a lot of child labor laws demanding you have breaks and whatnot. If you're not on payroll, you don't technically work there, so your employer doesn't have to follow every child labor law. Other than that, your employer may just pay people under the table. It's all too common for privately owned restaurants to do this to save a few dollars from taxes. If you're that concerned, just ask.

Do you own a computer ? Can you not google employment laws for CO? This all sounds like pretty standard stuff. It's a pizza place. Who signs a contract to wash dishes? The W4 will come soon enough. If it doesn't ask. Nicely. Cut down of the weed smoking too. It's making you paranoid.

Human: Just turned 24 years old. Reside in Florida (live with my parents), but don't plan on staying here. Hoping to get into medical school in the next 1/2 years. Just started a new job in February, my salary is 40K. My employer matches 5% for a 401k. I wanted to also open up an IRA but I can't decide between the two options. Any advice would be great. Thanks!

I'd do a Roth. Presumably your income will be much, much higher later on.

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: For reference: I live in USA I dont know if this is applicable to this sub but it is the closest one I could think of. So I am 22 and from 16-20 I worked basic jobs in retail and fast food. At 20 I got sick of working those jobs and have been buying and selling underpriced things from thrift stores for cash on craigslist, helping a family friend at their restaurant(under the table) and helping a family member with their business(under the table as well). So on paper I look like I've been unemployed for 2 years. I am tired of having no direction in my life, and without revealing too much information, I am trying to get into a level entry job that has potential to turn into a life time career path. I have social anxiety terribly, which is part of why I have been terrified to go back to "normal" work, and I dont know how okay it is to write those things down on my applications. Do they somehow check if you were in the books at previous employers? Will it look terrible if they find out that I wasnt? Both people I worked for will obviously give me good references. Should I even mention that they were family friends/family members I worked for? Thank you for any help, and sorry if this post is disconjointed I just have lots of questions and worries and dont know how to properly organize it.

From my personal experience, just treat them like they were real jobs and you'll have no issues. Put them on your resume and describe your duties and such like normal, even using them as references should be fine. An interviewer is looking for what you can bring to the table. If they call your references who can verify your work history, the interviewer likely wont care whether or not you were an employee on paper or under the table. An interview is more about "selling your worth" than "proving your worth". *That* comes *after* you get the job. Be relaxed, be confident, and convince them your worth hiring.

I can't comment on how to frame this in terms of a resume. But, here is no such thing as working under the table. If you received income, you must report it to the IRS. Failing to do so isn't "working under the table" - it is illegal tax fraud/evasion. Please, go talk to a professional and get this straightened out. Don't cheat the IRS.

Human: Will the bank teller not let me withdraw $2,900? Just wondering. Will the bank teller not let me withdraw $2,900? Just wondering.

Oh they absolutely will let you do it, but might I suggest that you look into a 2 year CD or something like that? You'll make a little interest, more so than stuffing it in a mattress, and it will still keep it just beyond reach so you don't spend it.

For me, the person, $2900 would be a large withdrawal. For me, the bank teller, it's​ not a large withdrawal and is something I do for clients multiple times per day. That being said​, keeping a bunch of cash at home isn't a great idea. I second the getting an account at another bank with no access devices idea.

Human: Trying to turn over a new leaf on finances. Having worked on this for a few months (mostly just reducing expenses, building an emergency fund, and moving high-interest credit card debt onto low-interest balance transfer offers), here is the current state of things: - $67k of credit card debt, which is nominally at 0% until at the soonest Jan 2018, but I think of as being at 3% since that was what the balance transfer fees upfront for it were. We are paying only the minimums on this as we try to bring up our emergency fund and figure out what to do. - $70k of Parent PLUS student loans at an average interest rate of 7.2%, of which only about half are currently in repayment and the other half will go into repayment in Dec 2017 (D-day). - $5.5k car loan at 1.99% - $52k mortgage left at 7.25% on a home worth $100k-$200k, but probably more like $100k - $24k 401k loan at 5.25%, which I think pays the interest to ourselves, so I don’t know whether this is considered “debt” except that it reduces our take-home pay when the payments are deducted. There is currently $330k in the 401k. We are ~60 years old and in not great health, but also not actively sick. We have an income of ~$100k/year pre-tax. Even so, we’re having a hard time covering expenses + payments on all this debt out of our income. The other half of the student loans kicking in could make that impossible. We currently have a little more than a month of buffer/emergency fund. When we started getting serious about this two months ago, we had no buffer at all and were living paycheck to paycheck. Here is our current plan for what to do next: 1. Try to refinance our mortgage, hopefully with a cash-out refinancing that will allow us to pay off some of our credit card debt. - Our land is worth ~$100k, and our town assesses our home to be worth ~$100k as well for property tax purposes, for a total of a theoretical $200k. However, the home is in bad repair (we never felt we had enough money to repair it) and may be worth nothing, we don’t know. We hope we would still be able to refinance based on the land value alone, but it seems difficult. 2. Refinance student loans to lower interest. - Haven’t even started to think about this yet. 3. If there is still high-interest debt after doing these refinancings, maybe look into getting a personal loan if it would be better interest than credit cards? Obviously increasing income and decreasing expenses would also help, and we’re trying to do that, but it’s slow going and no magic bullet so far. Do you all have any suggestions? Are we totally thinking about this wrong? We have been mostly focused on trying to eliminate the credit card debt through refinancing since the prospect that if could shoot back up to 20-30% if we run out of balance transfer offers is terrifying. Is there something else we should be doing? Assistant: Why not post your budget and/or spending? Human: I was worried about preserving anonymity and trying to only give enough detail to ask a meaningful question. But here's a breakdown of a recent month: - ~$5K income - ~$1400 mortgage - ~$900 credit card minimum payments - ~$200 life insurance - ~$250 cell phone bill - ~$400 student loan payments - ~$120 car insurance - ~$275 electric - ~$120 landline and internet - ~$840 food and gas - ~$135 other utilities - ~$300 car loan - ~$90 other (we are trying to cancel this) One of our children is still living at home, so these are for three people. The credit card minimum payments may go down soon as things shift to being at 0% on balance transfers. Assistant: Phone you could easily knock $100 off. You can get phone plans for like $35-$50 a line. Look into Verizon Prepaid, or Straight Talk or any other company that offers prepaid. I use Straight Talk and I pay flat $50 for unlimited talk/text and 5gb of 4g data. Your food bill (unless gas takes up a huge portion of that...) is ridiculous for only 3 people. That could be cut down some. Is your child old enough to work and pay his portion of these bills? Or is their income already included in your numbers? Human: Some of the phone bill is payment plans on phones which we haven't paid off yet, so switching might be difficult. :(

The bottom line is that your phone bill is ridiculously high. Do whatever you can to lower your services as much as possible.

Get T-Mobile One that includes unlimited LTE and 10gb of hotspot per line. Then you can get rid of your landline and internet costs. T-Mobile will pay off your cell phones at no charge if you switch over.

Human: My wife finished nursing school in January and started working in February. After 5 yrs at my job, then getting a few network certifications, I was picked up at another company in January. What does this mean? Well before this, my wife and I were scratching the surface of $35,000 a year between the both of us. Now, after doing some calculations. By the end of the year. It is possible to hit a high $85,000. After so many years, of surviving, and struggling. Our credit is horrendous, rental history is bad too. We just don't know where to start. We want to buy a home this time next year. Would that even be possible? Assistant: Learn what life style inflation means and avoid it while focusing on cleaning up your finances and saving money don't change your spending patterns until then. Also be very careful letting your peers (many of whom were probably making what you made before) know what you are making now. Human: I try not to brag but out of curiosity. Why not tell them? I'm sure they will ask.

When there is a big difference in income it has a tendency to bring out the greedy side of some people (this sometimes includes family). Maybe its just an extra round of beers every now and then, maybe they need help making rent or a car payment. But now they know they can turn to you now because they know you make 3-4k/month more than them so whats a few hundred. Maybe no one will change, and maybe they'd be diligent about paying you back, but there is no guarantee. I think its best to avoid specifics and keep things vague if asked. Even just "yeah I'm making more and it's great to finally be paying off these old debts" is better. You both worked hard to better and improve yourselves and your position and you should be the ones to benefit first. It's unlikely telling people with help you out at all, but there is a very real chance (maybe not a large chance it just depends on the people you know) that telling the wrong people could hurt you financially or hurt your friendships.

It's a situation in which there are **no upsides** and **only downsides**. Maybe you'll get no downsides but there are no upsides so why play the game? What tangible, real benefit is there to telling any of your friends or family how much you make? None. No upsides. What tangible, real harms can come of telling your friends and/or family how much you make? Lots. Some examples: - Expectation for payment - You make more now, so you're pressured to contribute if a family member falls on hard times. - Subtle resentment - Friends may distance themselves as they're jealous/feel inferior. A lot of people are competitive by nature and when you make more than they do, they feel like they're "losing". Sure, it might not happen. But why take the risk for no benefit?

Human: Hi r/personalfinance, A few months ago, I started looking around for a CPA to do my taxes this year. I have a job that requires me to travel, and I get W-2s for every state I work in, so it's a hassle every year to file in a million states. I also got married and my wife worked multiple jobs this year and is a student, so I figured it was finally time to just pay someone else to do my taxes for me. When I looked for a CPA, I checked with the Better Business Bureau, state CPA association. The guy I ended up going with was also a CFP and seemed like a nice enough guy. We met - I asked lots of questions, including how do you charge (per hour, per return, etc) and how much do you charge? He told me he charges $200/hr but that he has a tax preparer who does most of the work and she is only $60/hr. He said that an average state and federal return costs about $200. I paid that much with TurboTax last year, so it sounded like a great deal. Skip forward a few months to when I actually got my tax forms. I had everything very neatly filed with tabs for everything so that they could quickly and easily find anything they needed. I also completed a detailed questionnaire that gave them all my relevant life information. Two weeks later, they sent me an email saying my federal return was $8k and that I owed in a couple states, but I was looking to get about $7k back. That sounded great. But they also attached an invoice for $1400, which seems very high. It was itemized to show $1000 for federal and home state and then $150 for to additional states and $100 for another state. At $60/hr, that means his tax preparer worked 20 hours on the returns (and he reviewed in an hour, presumably)--does that sound right? Are these prices normal? I live in a small town in the Midwest if that helps. If not, what do I do? I signed an engagement letter that says I agreed to pay based on an hourly rate. Obviously I can pay it with my refund, but I think that may be what he's counting on--that he can overcharge me because I'm getting so much back. Any information or advice is greatly appreciated! Thanks!

I'm an accountant and accounting services are not cheap you also have to factor in that the 60/hour preparer had their stuff reviewed at a higher rate. Less than $200 but probably somewhere in between. When you have a complex return like multiple states it does make a return much more difficult and requires more expenses as filing in different states has a cost to the preparer. To help you understand this most accounting firms software has a fee associated with every return prepared. There might be a set fee for all federal returns and possibly some different fees for each irregular state. All that and you being a new client adds to time and price because inputting all that info takes a decent amount of time. Hope that helps any more info needed let me know. I know our firm doesn't charge less than $800-1000 for a personal return with a schedule C just as an example.

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: The fund currently sits at $6,174.95 as of 3/17/2017 with a 1.5% annual fee. It's a TWNOX Individual fund through American Century Investments with 561 stocks that have had a 25% return in the last 12 months. 13.55% on average. My dad had completely forgotten he made this for me 10 years ago and just stumbled upon the login information recently. He gave me complete control of it and recommended that I switch to a different company since 1.5% is pretty high for an annual fee. I don't have much investing knowledge other than what I learned in undergrad so I would love any thoughts on what my plan of action should be from here. Thanks again!

The title should be your opening line on tinder

yes i agree. get out of that high fee fund asap. you could do an index fund for .04% with Schwab or even some etfs your interested in for less than .5%.

Human: First off, the PF sub has me so much and been really helpful to me over the years, thank you for that. My question is, my parents are turning 60 this year and going through a financial reality check. The both still work and have been traditional high earners. They have $175k mortgage on a house that is valued at $750k and about $650k in their combined 401Ks. They have another $60k in ed loan debt they took out for me and my sibs. They're pounding their 401Ks while they're still working but are worried they don't have enough saved. They're both willing to work 10 more years assuming they're in good health. They mentioned to me that their term $1 mill term life policy expires this year. I know PF is traditionally against whole life policies but I was thinking maybe they should convert it to a whole life considering they don't have enough saved for retirement. Any one have any thoughts on this?

Whole life insurance would cost them a LOT of money starting at age 60, and not provide them with any cashflow while they are retired. In another words, this would be a move in the exact opposite direction that they desire.

Whole life insurance is really designed to make sure there is still cash in the event of early death, not really to guarantee cash flow throughout retirement. Unfortunately the only cure to not having enough money for retirement is to make more money (including work longer), save more, or hope riskier iblnvesents pay off. If you were worried about your mom in case your dad prematurely died with prime earnings left (assuming he is the breadwinner) then whole life makes more sense. Just make sure they have that mortgage refinanced at a nice low rate and that if the interest on those student debts are high then pay them off immediately.

Human: I'm likely to get a job offer soon and everything looks good, except the retirement plan. I talked to a guy on linkedin (non-manager... in the hopes of getting a non-BS opinion) and that was his only complaint. It's a private company, so there is no company stock, only mutual fund type options in the 401k. And he said that the fees on all of them are so high that he never sees any actual increase in value (beyond his paycheck contributions). He said that he's talked to coworkers and they say the same thing. The company offers 100% match on 5% of salary (pretty standard in my industry). So should I still go for the 5%, then immediately withdraw the money and just invest it myself? I'm aware of the 10% penalty, but since the company is matching 5% anyway, I should still come out ahead, right? Anyone dealt with this before? Should I do it as a monthly withdrawal? Should I expect the company to totally drag their ass, making it as complicated as possible (multiple phone calls, long wait times, etc) each time I want to take out money? Thanks!

You usually can't take money out while still employed. You pay the penalty AND taxes at your marginal rate. Just leave the money there. You are still getting a decent match and the money is tax advantaged. Plus, taking a tax hit now to then put the money in a taxable account and pay even more taxes seems counter productive. I also recommend examining the plan for yourself. Not everyone is financially savvy. For all you know, it is a good plan, this guy is just invested in high fee options. Lastly, the flowchart in the wiki goes over this. Standard order is 401k up to company match, then IRA, then 401k up to annual limit.

You may find these links helpful: - [General Information on Rollovers](http://www.reddit.com/r/personalfinance/wiki/retirementaccounts/rollovers) - [401(k) Fund Selection Guide](http://www.reddit.com/r/personalfinance/wiki/401k_funds) - [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: Background: Wife's father is very successful and decided a few years back that he was going to give each "family" (wife's sister and brother) $10K every year in January. Initially we placed the $10K into our savings and used a good portion to put down on our first house purchase in 2016. My wife and I do well for ourselves, and usually save $500-1000+ per month, and do a good job living within our own earnings. We currently owe $4K on one car, student loans are paid off and our only other debt is the 30 year note on our home. Any ideas on investments to do with this $10K per year that might lead to 5% per year or greater return that we can feed more and more into and is also liquid? Basically I'm not sure we want to place this money into IRA/401K's because we already have good retirement accounts with our own employers.

I would pay off the car loan if it has interest on it, and pay down anything else that has interest on it (house).

Open a normal taxable brokerage account with Schwab, Fidelity or Vanguard and invest the money in index funds. Try to keep investments that throw off taxable income like bonds or REITs out of this account (go overweight on them in your retirement accounts to balance your overall portfolio). You want investments in a taxable account that mainly deliver returns in the form of capital gains or dividends (because the taxes are lower).

Human: The schedule for my sport is dynamic, so there isnt really a set schedule. I'm a 16 year old with a license, but can't afford car insurance atm. <- main reason i am looking for a job

Cut grass, pizza delivery on weekends, etc.

For young people in the US and other developed countries, [**this advice**](http://www.reddit.com/r/personalfinance/wiki/teachme) will apply pretty well if you are roughly between the ages of 15 to 20. You may also be interested in our [**reading list**](http://www.reddit.com/r/personalfinance/wiki/readinglist) which also includes some videos. *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’m 31, single, no kids, and have a job that pays well (military officer). Consequently, I have simply signed up for “essential” services when I needed them without giving much thought. Basically, I paid all the bills without questioning whether or not I could get a better deal/lower rate elsewhere. This all changed recently, and I ended up saving $142 per month, $1700 total per year. It began with car insurance. I found out from a friend that military service members are entitled to a discount on their car insurance in this state, as per state law. When I called my insurance company to ask about it, they told me that I hadn’t had the discount on my account for the last year, which led me to question why they hadn’t informed me that I rated the discount when I was first stationed here over a year ago. Their response was simply “Legally, we don’t have to tell you.” That answer didn’t sit well with me, so I decided to shop around for different insurance. I lowered my rate not only from the discount, but also by switching companies: my old yearly rate for both auto and renters insurance was $1509. My new rate is $1071, a savings of $36.50/month, slightly better coverage with my new company. Soon afterwards it was time for a new phone, as my old one was on its last legs. I made sure to review my old plan thoroughly, and when I went in for the phone, made some adjustments based on my usage, as well as a few promotions being offered. I was willing to switch from my current carrier if need be, but that turned out not to be needed. I was able to get a new phone, with a much better overall plan, while cutting my monthly bill from $109 down to $87, a savings of $22. Finally it was time to move onto my cable/internet service. After a bad customer service experience due to a billing error, I decided to shop around. The cable company I was with only has 1 other competitor in the area, but by switching to them, I was able to cut my bill from $170/month down to $87/month. Now that *did* include lowering my internet speed, but I was unaware that I was paying for the 40Mbps speed, and things are just great using the 15Mbps plan from the new provider (no noticeable difference for my internet useage). The overall switch saved me $83/month. The moral of the story is, I suppose, to periodically review your bills, and shop around to look for better rates. While $1700/year isn’t dramatic savings, every little bit helps, and I’ll bet everyone could think up a use for an extra $1700.

"How I (unexpectedly) saved myself $1700 per year." Doctors hate him!

Did you have to pay anything for the new phone at the time of purchase?

Human: Hello Reddit, My buddy has inherited 2 plots of land in southern Morocco from his father. Nothing has been done with them since they were purchased years ago, empty space. Each plot is 1 hectare of land (1 hectare = 2.5 acres). They're both located in fairly tourist oriented regions. We're both 17 year olds in our senior year of high school. We have no idea what to make of the land. My buddy is thinking of starting a hotel or apartment business as that's where he think would see the most profit. What do you guys think? Sell the land? Start a business? I'm trying to help my friend out as much as possible. Any advice helps. If you have any questions, please leave them down below and I'll get the answers from him directly. Thanks guys! EDIT: We both live in Canada, he has dual citizenships for Canada and Morocco. He's planning on joining the Canadian army in the coming months when he graduates. I'm planning on going to a trade institution. Therefore, we have no knowledge/education in real-estate or the business field.

Its just land. Raw land has no ROI. It sounds like your friend has no experience. Unless it is tax free in Morocco it is a negative cash flow appreciation investment only. Only very savvy real estate investors deal in appreciation only investments. Sell it and save the capital.

Consider a bank, imports/exports-a large cash only business maybe.

Human: This debt was accumulated during a horrible post relationship depression that lasted 3 years. After some amazing and expensive somatic psychotherapy the depression has lifted, I feel whole and capable of scaling back my life, and I've been doing so. I'm 37 living like a 19 year old college kid, and for good reason. This debt is a monster and I'm ready to be done with it so I can move on, save, invest in my future, travel again to see my family and just feel like a proper adult again. Some people have said I should file for bankruptcy and start fresh. I am resistant to that, given that I don't currently qualify for Chapter 7, which is the only option I'd take (full debt removal). No kids, no property, 11 year old car that needs some work. I see the short term win, but what would the long term effects be? I'll be 38 in April... 10 years of bad credit takes me to almost 50 and that's heartbreaking... I've had enough heartbreak. I live simply and just want to get on with life. Deets 37 yrs old. 60k per year = $3,400 take home monthly. Rent $1150 + food $250 = $1,400 per month. I'm currently looking to find a room to rent for no more than $500 per month. Really hard to find something decent in Denver, plus, I walk to work from current location. Still must move. So, $2,000 left over to pay down this monster debt. 2 x consolidation installment loans with Lending Club. 1 $9,900 remaining. $532 per month. Debt paid October 2018. 2 $18,000 remaining. $600 per month. Want to increase this payment so debt is paid October 2018 but forecast end at this pace is March 2020. 3 $16,00 personal line of credit. 9% interest. Pay minimum $300 per month, but always try for more. 4 $8,000 balance transfer CC. $80 minimum until Jan 2018. 5 $1,200 left on 2 other cards - I want these paid off a.s.a.p ($300 and $900). I have no $ left over and I want to accelerate repayments! I'm about to drive for Lyft for extra $ and have almost sold all of my belongings in an effort to get debt free. I take side jobs for cash where I can... It's tough. I have a small $6k 401k, a $1,400 403b and a $1,200 emergency fund. That's it... I'm desperate to get on with my life and invest in my future! I exercise at home using free YouTube videos (building covers wifi - my power bill is $8/month - I unplug everything but the fridge every day). I sew my clothes if they're damaged and don't buy anything extra ever. My boyfriend has been suggesting I get on this feed and seek advice for a year now... I felt too vulnerable to post... I feel so much shame for accruing this debt (I never had debt until I was 33- I lived well, saved well (though for travel not retirement) and was not anchored because of debt). Ok, that's it for now. Should I file for bankruptcy and start fresh though hindered, or should I knuckle down more, work myself into the ground BUT come out with killer credit and no debt? Thank you

You might have incorrectly formatted line breaks. To create a line break, either put two spaces at the end of the line or put an extra blank line in-between lines. ([See Reddit's page on commenting for more information.](http://www.reddit.com/wiki/commenting)) I have attempted to automatically reformat your text with fixed line breaks. ---- > This debt was accumulated during a horrible post relationship depression that lasted 3 years. After some amazing and expensive somatic psychotherapy the depression has lifted, I feel whole and capable of scaling back my life, and I've been doing so. I'm 37 living like a 19 year old college kid, and for good reason. This debt is a monster and I'm ready to be done with it so I can move on, save, invest in my future, travel again to see my family and just feel like a proper adult again. > > Some people have said I should file for bankruptcy and start fresh. I am resistant to that, given that I don't currently qualify for Chapter 7, which is the only option I'd take (full debt removal). No kids, no property, 11 year old car that needs some work. I see the short term win, but what would the long term effects be? I'll be 38 in April... 10 years of bad credit takes me to almost 50 and that's heartbreaking... I've had enough heartbreak. I live simply and just want to get on with life. > > Deets 37 yrs old. 60k per year = $3,400 take home monthly. Rent $1150 + food $250 = $1,400 per month. I'm currently looking to find a room to rent for no more than $500 per month. Really hard to find something decent in Denver, plus, I walk to work from current location. Still must move. So, $2,000 left over to pay down this monster debt. 2 x consolidation installment loans with Lending Club. > > 1 $9,900 remaining. $532 per month. Debt paid October 2018. > 2 $18,000 remaining. $600 per month. Want to increase this payment so debt is paid October 2018 but forecast end at this pace is March 2020. > 3 $16,00 personal line of credit. 9% interest. Pay minimum $300 per month, but always try for more. > 4 $8,000 balance transfer CC. $80 minimum until Jan 2018. > 5 $1,200 left on 2 other cards - I want these paid off a.s.a.p ($300 and $900). > I have no $ left over and I want to accelerate repayments! I'm about to drive for Lyft for extra $ and have almost sold all of my belongings in an effort to get debt free. I take side jobs for cash where I can... It's tough. > > I have a small $6k 401k, a $1,400 403b and a $1,200 emergency fund. That's it... > > I'm desperate to get on with my life and invest in my future! I exercise at home using free YouTube videos (building covers wifi - my power bill is $8/month - I unplug everything but the fridge every day). I sew my clothes if they're damaged and don't buy anything extra ever. > > My boyfriend has been suggesting I get on this feed and seek advice for a year now... I felt too vulnerable to post... I feel so much shame for accruing this debt (I never had debt until I was 33- I lived well, saved well (though for travel not retirement) and was not anchored because of debt). > > Ok, that's it for now. Should I file for bankruptcy and start fresh though hindered, or should I knuckle down more, work myself into the ground BUT come out with killer credit and no debt? > > Thank you > ---- ^(I am a bot. Contact) ^[pentium4borg](https://www.reddit.com/user/pentium4borg) ^(with any feedback.)

The general rule for this is usually something along the lines of "Can you pay the debt back in 7 years or so? If so, I wouldn't claim bankruptcy"

Human: Hey guys. I'm a recent college graduate (May 2016) starting my first full-time job in a week. I'm slated to be making $1k per week (pre-tax) my first year with a 5% year-end bonus. Basically, I want to make sure that I invest before April 15 (so I can make a max contribution under 2016), and I'm not sure what I should invest in (Roth IRA vs Traditional), mainly because of which tax brackets I'll fall into. Currently, I have roughly $33.5k in savings, and $13.5k in student debt. So, what kind of retirement account(s) should I be investing in, and what funds should I select? Edit: I also made roughly $15k in 2016 between an internship and a part-time job. Assistant: You won't be able to make 2016 contributions if you don't have earned income for 2016. Might want to start paying down that debt instead, tbh. Human: That's my bad for not including that initially in my OP. I made roughly $15k in 2016 between an internship and part-time job.

Go with Roth

At $15k, you're in the lowest bracket, so that shouldn't factor much into your decision. If you contribute to a Roth IRA, it won't affect your tax liability at all

Human: I go to school In a place with pretty cheap rent actually, I'm an aerospace engineering major and haven't applied for any jobs (I have a lot of negative pressure from family and stuff so I just kinda don't do things necessary to get ahead in life because mental illness). Anyways I've been putting forwards all my energy to overcome my mental illness and coming home is the absolute worst thing for me. Plus they are controlling and idk, make me not want to do things that help me. Basically I feel trapped. Bad part is I don't have a job lined up because I'm just now starting to think about it and my mother said that if I move out I will lose all her support (so like insurance etc. And maybe even tuition but I'm not certain). I'm really in a hard situation here but I think moving out is my only choice if I truly want to get better mentally. I know nothing about anything so would love any advice here from people who may have gone through similar situations? Edit: hey guys thanks so much for all the support! I'm going to look into more of my options over the coming weeks and hopefully get back with an update. Thanks again! ❤

I was in a similar scenario in Germany. Ended up quitting uni to work..... trust me bro, stick it out. Now ive been living on my own for 5 years, job is ok. Getting that degree now is going to be much harder. Since it has to be done while u still work a full time job. No degree means less possibilities of earning a lot. Edit: Quit Uni after studying for 1.5 years. Was doing fine academically

Are you saying that you have a bachelors in engineering or are still in school? If you've graduated I would not worry about your parents support. There are literally thousands of companies that need engineers and will give you benefits that are almost definitely better than what you get from your parents. If your not graduated, look for engineering technician jobs. They often only require two years of engineering education and will give benefits and sometimes tuition reimbursement. If you can't find that, apply for engineering internships through your school. Sure, they're temporary and usually don't include benefits but you'll be making $16-$22 an hour and gain extremely marketable experience that can land you a tech job.

Human: So one of my previous employers had an annuity fund retirement plan started for me I guess. I'm not too sure how it works, honestly, but I know that the value, which I monitor via Wells Fargo, is just depreciating slowly, as they take fee's and whatnot from it. It's not much, but is there something I should do with this money, that I can maybe start making contributions to, that won't have as much money taken out over time? Is an annuity fund right for me? Thank you for any advice you can give me!

You can usually take the money out of it, but there could be a surrender charge. It depends on the terms of the agreement. Here's some general info that might help you figure out what you have. https://www.fool.com/retirement/2016/12/29/retirement-annuity-worth-it.aspx

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: So I was wondering what the logic is behind the common advice - here and just about everywhere else on the internet - that "about 6 months income is a good size for an emergency fund". I was surprised to not find an explanation when I searched for one. I realize this is a very rough number. I'm sure 7 months vs 6 months isn't a source of fierce debate, and I'm sure someone with serious health issues or 15 children or with a tenuous career would get a big thumbs up to saving more than 6 months income. But I guess I just wanted to understand why 6 months was the starting point. Is 6 months an 'average' or a 'recommended minimum for typical circumstances'? Is it just a case of "yeah, that seems like a reasonable lump sum I guess?" Or is <6 months statistically how long it takes people to find a new job? Or is there some special financial/tax meaning to '6 months wages' in the US? or did some famous financial person say 6 months one time and we just wrote it down? #Why I ask specifically: I'm pretty young, and have been fairly fortunate. I don't have all that much experience with disastrous financial circumstances. But I also grew up somewhat poor, and am instinctively very conservative with my money. My 'emergency fund' (aka my dumping ground for extra money) is closer to a year's wages than 6 months wages at this point (and I make good money for where I live as it is - so it just seems like a lot of money). So I'm deciding if I should half it and put the extra into my mid-term savings (aka my optimistic mortgage fund bonds) I also have a family I could easily live with very long term in tough circumstances, no debts, good credit, employable skills, a career I could continue paraplegic... Basically I would consider my self low risk if anything. But I was just curious about the '6 month rule' and it's logic before I decided.

If you end up disabled, you need to be out of work 6 months before you qualify for SSDI

You may find these links helpful: - [Emergency Funds wiki page](http://www.reddit.com/r/personalfinance/wiki/emergencyfunds) - ["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'm fairly certain that the Owner does payroll through QuickBooks. Everytime I bring it up, he mentions that they tried using it years ago (I've worked for this man for 7 years), and the money used to arrive in the accounts a day or 2 late which led to disgruntled employees so they stopped doing it. I'm just curious if this is just an issue with small businesses in general, a QuickBooks thing or if you think he just doesn't want to do it (perhaps it costs him money?) for other reasons.

Sounds like he already gave you his real reason and maybe it wouldn't still be true today, but it's not that big of a deal to get a check. Many banks will let you deposit using their app that takes a picture of the check.

This is probably a r/smallbusiness question if you want a range of responses. I'm a sole proprietor and I pay my contractors via direct deposit. It's easy and cheap and they prefer it.

Human: My SO and I are getting married soon and want to buy a house soon after. Not looking for anything too fancy, but we do want a little more room to grow than we have in our current place, a little yard for our dog, and a more convenient location to our jobs. With interest rates being so low and being in a stable financial position (I think), we figure now is a good time to get in the market and start building equity. We are going to be staying in this house for at least 5 years, probably more like 10. From everything I've read, it seems like we're ready but we're still a little nervous! You guys are the experts, so are we ready? The numbers: Combined income: $127,000/year + $8,000 bonus 401k: $32,000 (currently contributing 5% for full employer match) Roth IRA 1: $6,500 (contributing monthly to max out for 2017) Roth IRA 2: $17,000 (also maxing out for 2017) So currently we are contributing 15% toward retirement if you include the employer match, but we would like to try to max out the 401k after we buy and no longer have to be pouring money into cash savings. There is also a pension but we don't really factor that in. Cash savings: $42,000 (currently saving $1,500/mo) Car loan 1: $6,000 remaining, 2% interest. $160/mo payment. Car loan 2: $10,000 remaining, 2% interest. $240/mo payment. No other debt. Our take-home is about $7000/mo, and our expenses ( including rent) add up to around $4000/mo. Currently spend $1450/mo on rent. We would like to spend no more than $225,000 on the house. We are thinking we would rather do a 30-year mortgage and focus on investing, but still considering a 15-year instead. What do you think? We'd like to be able to buy in the next few months, as our lease is up in June.

Yes! Do it! You are financially ready!

according to the numbers, you're almost ready. are you going to use your cash savings as a downpayment? i guess that'd be my concern. "ideally" you'd have 20% down which is 45k @225k home. so you'd liquidate all your cash reserves and emergency fund to put 20% down, but you'd still have 16k outstanding on cars. so... I think you'd be better than most people who buy a house for the first time, but you could also stand to punt for a year to secure your 20% downpayment AND have a decent emergency fund.

Human: Long story short, I have terrible credit (it was once so good!). My TransUnion score is 585 and my Equifax is 582. I actually ended up going prison for a while and defaulted on everything. Literally every account I had. BUT, all of them are past 7 years now. They all say "closed", but they are still on my report. Is there a way to remove them? I assume they are doing a lot of damage. I am in Florida and the accounts would all be from NJ, NC, GA or FL. Thanks. **EDIT: Holy crap. Thanks for all this advice and the kind words. You can start to feel like a weirdo being a felon so it feels good to get legit advice and supportive comments even from Internet strangers. I did just notice something: I got my hard copy credit reports about 10 months before I got out (they sent them to the prison). All of the dates on those say "Removed by...." with the LATEST date being February of 2017. But now when I look at Credit Karma, some of the dates say 2019 or 2020?!?** Assistant: >All of the dates on those say "Removed by...." with the LATEST date being February of 2017. But now when I look at Credit Karma, some of the dates say 2019 or 2020?!? Someone is re-aging your debts, which is illegal. Any derogatory information on your credit report older than 7 years has to be removed. You can report this to the various credit bureaus and they'll remove it. Anything that had the date changed needs to be removed also. Google zombie debt. It's illegal to re-date debt. Human: Thank you for this. Surprised they would try to get away with that.

You should watch John Olivers Last Week Tonight episode on debt collection...good luck man, hope you never go back.

Be very careful about information you get out there, a great resource for credit laws would be to go to ftc.gov and read up on them...I work with credit repair as a career and what I can tell you is that TYPICALLY a negative item is to only remain on your credit report for up to 7 years from the date of last delinquency from the original creditor, this is not for all negative items because a Bankruptcy can stay on a report for 10 years from the discharge date (unless State Statute says otherwise) or a tax lien which can report indefinitely until it's been paid then it's 7 years from the date of satisfaction. As far as "re-aging" debt, there are a few ways that can happen and depending on the circumstances it is within the scope of the law for a creditor to be able to "re-age" a debt (I.e. you enter into a settlement agreement with the creditor and that may "re-age" the debt once you pay it because once it's paid the collection agency/creditor may show this as a 'new' item because you settled for less than the amount owed and they become the new original creditor and that can add an additional 7 years of reporting).... Good point of reference if you don't mind doing a little leg work with research is to look up information regarding FCRA (Fair Credit Reporting Act), FDCPA (Fair Debt Collection Practices Act) and FCBA (Fair Credit Billing Act)

Human: As a high school senior who needs to commit to a college within the next 6 weeks, I need advice on what is the best financial decision to make with the options I have. The deal with my parents is that they will (very generously) give me 180,000 dollars to pay for college. As I want to study international affairs, and would love to work for an NGO or for government, Georgetown University is my top school, and they are willing to contribute more towards an education there. However, I would still probably have to take out 30,000-40,000 dollars worth of loans. The other option is going to Indiana University, my state school, which will only cost 55,000-60,000 for 4 years due to the scholarship money I've received. They told me that if I took that route I would get to keep the extra 120,000-125,000 dollars after college. ALthough the debt I would have to take on for Georgetown would be fairly manageable, I would not only not have debt if I were to go to IU but I would come out with over 100,000 in savings. Georgetown is my dream school, and has the best program for what I want to study in the best location in the world (the nation's capital), but I can't ignore all the money I would save going to IU. Would I be a fool for choosing Georgetown over IU or would it ultimately be worth it? TL;DR: 30,000-40,000 loans for Georgetown or graduate from Indiana with 120,000 in the bank?

If you go to IU and graduate with a high GPA the difference will be pretty negligible vs. having gone to Georgetown. Just make sure you work during school (internships, research projects, etc.) to gain valuable experience. IU is the clear choice here if you are talking about being 40k in debt vs. 120k in the black upon graduating.

If you're getting a full ride scholarship, ride it till the wheels fall off. If not do even cheaper, community college stay at home, test out of whatever you can and then transfer to university. Now you'll have saved a lot more than. During that time that stack of cash could be invested wisely (not my field but only an ideal). But sounds like you should do state then whatever. Think if you do take loans and then can't find a job with enough to live off of then you'll regret everyday you're in debt. Which will be a while.

Human: dont know if this is the correct place to ask this... but i was wondering if its better to pay off your credit card in full every month or have a little left over? if anyone can point me to some information regarding credit cards i would greatly appreciate it. thank you in advance. so everyone seems to be saying to pay off in full. thank you all for the replies. much appreciated.

Pay in full, always. It is never a good idea to pay credit card interest. I would argue it is not even smart to carry a balance at 0%, unless you have the cash set aside in savings to cover it. A lot an happen in 12 months and all of a sudden your promo APR period ends and you lost your job or had some other emergency.

You may find these links helpful: - [Credit-related wiki pages](http://www.reddit.com/r/personalfinance/wiki/index#wiki_credit) - [Credit Cards](http://www.reddit.com/r/personalfinance/wiki/creditcards) - [FICO / Credit Scores](http://www.reddit.com/r/personalfinance/wiki/fico) - [Improving Credit Scores and Building Credit](http://www.reddit.com/r/personalfinance/wiki/credit_building) *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'm going to buy a used car, a few year old, in the $12-14K range. I have done my research on type of car and price it should be worth. I'm already familiar with how a interest percentage is found too. What should I expect walking back to the *real salesman's* office? What should I want to add on, what should I say no to?

You should get preapproved by another lender, such as your own bank or credit union. Then you can compare to the rate the dealership can offer. Say no to everything in finance.

I say to always negotiate the "out the door" price. Including tax, title, and license fees, to a number you are comfortable with. If they are not willing to move on the price, I say negotiate they fix things that are wrong / need to be done with the car (as is somewhat typical when buying a used car). My GF just purchased a car and she negotiated a few hundred dollars off the out the door price, but she still wasn't comfortable. She told the dealer that if he detailed the car, gave it an oil change, slapped some new front tires on there and some other minor stuff that they had a deal. All that stuff is a fraction of the price to the dealer in comparison to what you would pay to have it done elsewhere, so it makes sense for them to do it in order to make the sale. Also get the car checked out by a mechanic if you can. Gives you an idea of what your walking into and may give you some more bargaining chips if they find anything wrong.

Human: Hi, I am looking for some advice on were to allocate my investments in my Mass Mutual 401k plan. I am 26 yrs old and want to start planning the best possible way I can before I get too old! I currently contribute 3% of my pay, my company matches up to 6% which I will be changing once I know were to allocate my funds. I also am interested in opening a Roth IRA account at Vanguard later this year (once I finish paying off 7k in credit cards) 26yrs old 40k a year 7k in credit cards (0% apr if paid in full by 1 year) 20k in savings (Saving for a house downpayment) Here are my current fund allocations http://imgur.com/a/FCDM8

Don't wait to contribute up to the match... That is throwing away free money and you can always reallocate your portfolio whenever you want. 80% equity /20% bonds is a good rule of thumb to start with given your age. You may want to go even more heavy weighted in equity if you think you have good lifetime earnings potential. Also, if you really want to keep it simple, just look for a target date fund. Lastly, look for something with low expense ratios...Like below .1% for a equity fund

This is what I would recommend. 1. Increase your contributions to 6% to get the full company match. 2. Go through the funds and find the ones that have the lowest expense ratios and invest in those. 3. B/c of your age, don't invest in bonds, growth allocations, or conservative . This is what I would do. Dreyfus Mid Cap Index I = .25 expense ratio Deutsche Equity 500 Index S = .30 Actually I would talk to your employer about switching retirement companies to find some that offer lower expense ratio funds, maybe some vanguard? Getting your expense ratios down to a .07 will be best. Put it all into the market, don't worry about bonds, at your age even if the market were to tank you got enough time to rebound before you retire in 40 years. The best strategy is to lower your expense ratios, and put most of your money into large, mid, small cap. If you think you will out preform the market in the next 40 years your sorely mistaken, even guys like Warren Buffet over their career haven't out preformed the markets.

Human: I'm selling all shares of a Vanguard mutual fund that I gained access to through an UTMA account. I'm being asked to chose a method of cost basis before I can sell/exchange the shares. It sounds like Vanguard automatically calculates cost basis information if you use average cost, but choosing another method requires information on my part for shares bought prior to January 1, 2012. I don't totally understand the distinctions between the cost basis methods they offer (avg cost, FIFO, specific ID), but does it matter which I choose given I will be selling all shares? All I want to do is minimize the amount of capital gains taxes I will be potentially on the hook for.

It doesn't matter if you are selling all shares.

Doesn't matter here because all are being sold. Do whatever takes the least work on your part. The capital gain is the sale price minus the purchase price. When you bought shares at different prices, you need a way to know what purchase price to use to calculate the capital gains (or loss). Average cost - All the purchase prices added together, divided by the number of shares. Easiest. FIFO - first in, first out - Use the oldest purchase prices first, working your way toward the most recent purchase price. Specific ID - Pick a group of shares (e.g. high cost shares bought during an uptick) and use that specific purchase price when selling that number of shares. Lets you pick the smallest possible gain.