I'm pretty sure I've read all the posts about selling a car with negative equity, but my problem is my credit is currently BAD, so I don't think I'll get approved for a loan.
Anyone had luck with getting a loan for this purpose, convincing a lender that you would be able to pay it off once the car is out of your life?
I keep hearing we are in an AI bubble. US held together by AI bubble, etc.
Have any appointment with financial planner tomorrow...
What will he say if I ask him this? What should I say or know about any AI bubbles???
Thank you
So, we grew up with our mom stuck in the Section 8 Housing rent game for a good chunk if not all of our lives. In 2023, the landlords of our previous home (3BR 1.5Ba) refused to fix the roof to comply with the standard, and we were forced to move into a small apartment. Since then, Mom has been desperate to get back into a house, and we discovered some first-time-homebuyer assistance programs.
We are currently going through the sessions for one of these assistance programs. However, moving forward with this plan means that we'll have to sign some kind of contract for the mortgage. As per common sense, if one of us can't agree on it, the plan falls through.
Last night, we were discussing this. The elephant in the room is that we don't want to have to live with Mom for the next 15 years, as we are young adults ourselves who want to get our own thing started. From what I'm understanding on paper, this means that I'll be 40/41 by the time the mortgage is paid off, and my sister will be 35. In these 15 years, I want to establish my own self-sufficiency, meet my future wife, and raise a family. My sister wants more of the same.
However, when we were discussing this last night, My sister and I wanted to get some sleep. (it was almost midnight, we were tired.) My sister went to bed mid-conversation. Because we keep 'putting it off' as per Mom's claim, she got increasingly agitated. Tensions peaked when she did this voice that she does where she mocks someone who doesn't agree with her. I got upset because of this mocking voice and stormed off mid-conversation as well, while she continued to rant. Some of the things she ranted about were "if we don't figure this out, we'll be homeless". A couple of weeks ago, she also said "If I can't live in a house then I may as well not live." A particular lament which hit a nerve with me, as someone who's previously been touched by self-harm subjects. (through family, friends, and people who I've looked up to.)
Partially because of this display of behavior, me and my sister both believe that our Mom might be pressuring us simply to make her dream of home ownership a reality, while we put our own hopes and dreams off to the side. It doesn't help that I'm someone who has somewhat of a difficulty thinking for themselves, so I'm finding it hard to determine who's exactly in the right or who's in the wrong here.
Are we being pressured, or are we just not understanding the full picture?
So, I'm an airline pilot. Huge income coming as time goes on.
Company has 18% DC.
I have a Roth and a traditional IRA.
TR IRA has $200,000
Roth has $80,000
Company 401k has $100,000 (growing rapidly)
Do i leave the IRA and make the contributions and write off the taxes, leave the roth and then when the time comes do the mega backdoor to the roth? The IRA i can manage myself choose what funds I want whenever is a plus.
OR
Bite the bullet, convert the IRA into the roth and pay the taxes, continue the backdoor roth and then the mega backdoor when possible?
OR
Do i combine the traditional IRA into my 401k plan right now, do the backdoor now, and then do the mega backdoor when possible after the max limit on the 401k?
i'm feeling like the second option would be the best option
EDIT: I meant the first option
hey everyone, I plan to give birth next in July and I will be on leave with no pay. However I have some bills that NEED to be paid so I was planning into digging out of my 401k I know it is probably not the best idea but I really need to pay this off to be stress free during my leave and after giving birth. I plan to withdrawal from my previous employer where I have 52k but I plan to only take 5k to pay off some loans with high interest rates. So my question here is, I know it counts as taxable income.. would it only be the 5k I would get taked on? for content I only make 44 a year with no state tax and based on other research it would only be $500 roughly on how much I would get taxed on? Also does giving birth count as a hardship to avoid the penalty?????
Hello, I am fairly new at paying attention to my investments in my 401k. I’m currently with Empower as that is what my employment uses with a 5% match.
I left my investments with JPMBC SmartRetirement DRE 2060 CF-D for a few years, but now I accidentally enrolled in Empower’s Advisory services “My Total Retirement plan,” and it plans to reallocate my funds to the following below. Could anyone let me know if these are good investments, or should I call and cancel?
I don’t know what fees they plan on taking directly from my funds for their services, but I’d like to know what’s considered good or bad.
Fund - Recommended allocation
DOXGX
Dodge & Cox Stock Fund Class X - 8.0%
JSNWX
John Hancock Income Fund Class R6 - 3.0%
VIEMIB
Vanguard Instl Extnd Mkt Idx Unit B - 7.0%
PFGCL2
Polen Focus Growth CIT Class 2 - 4.0%
FHMSP2
Federated Hrms MDT Sml Cp Cre CIF Fee P2 - 2.0%
VMFXX
Vanguard Federal Money Market Investor - 3.0%
VTISIB
Vanguard Total Intrntal Stck Idx Tr B - 19.0%
VTBMIB
Vanguard Total Bond Market Index Trust B - 10.0%
RERGX
American Funds EUPAC Fund Class R-6 - 10.0%
VI5ITB
Vanguard Institutional 500 Idx Tr Unit B - 26.0%
VIPIX
Vanguard Inflation-Protected Securities Fund Institutional Shares - 2.0%
BAGIX
Baird Aggregate Bond Inst - 6.0%
I'm getting close to retirement and one of the recommendations I see over and over is to keep 1-2 years of expenses in "cash". I assume that doesn't literally mean you keep like $50-100K worth money not making any interest? If most of my money in Fidelity, does the default money market that sits around 3.5% qualify? Or is there a better option that is still liquid?
Constantly worried if I am falling behind and could really use some reassurance:
**- Age 27 making about 85k a year with about $2700 in monthly expenses including fun spending and car.**
Current snapshot is:
**60k HYSA 4.2%**
**11k 401k (Employee match)**
**5k Checking**
**11k in Pokémon collection (Yes this is real.)**
No credit card debt and about 5k student loans.
So I am 29M and make 60k. I used to live in an apartment with roommates for about 3 years but they all wanted to move home so I have been back with my parents for about 6 months considering my next move. The cheapest apartment in my area is around $1800 for a 1 bed and that’s not counting utilities etc. I feel like I’m in this spot where I don’t make enough to comfortably move out but also am at that age where I should be moved out.
While I have been at home I bumped my 401k contributions to 35% and have a decent amount saved and invested for my age. If I move my 401k back down to around 10-15% my take home would be right around $3500 for the month or so I think. I do have 0 debt but it just feels like I’d be cutting it close.
I do have a good relationship with my parents so it hasn’t been terrible at home and I have saved a lot these past 6 months but it does feel like it’s cutting into my dating life a little. Has anyone else been in a similar spot? I would easily be open to moving back in with a roommate but have no friends that are looking for roommates or they just want to stay at home for the time being. Thanks for any advice.
I make 100k a year in base salary and 40-80k (varies a lot) a year in commissions while having an employer sponsored 401k with a 4% match
I currently contribute 17% (seems to come off the base salary only) pretax to 401k while taking advantage of the 4% match from employer.
I also have an HSA in which I contribute roughly 120 a month from paycheck. I get paid biweekly so 57 per check.
I currently have 110k in my 401k, 45k in emergency fund hosted by an HYSA, and $600 in my HSA. I also have 0 debt. As a 41 year old who is behind on retirement savings, I wanted to know if I should start a Roth IRA.
Question is – considering my current allocations of my paychecks, what would be the ideal contributions to the 3 buckets (401k – HSA– Roth) if I were to add in the Roth IRA?
As of now the money is mostly going to the 401k with the small amount to HSA with 0 Roth.
I feel like I am doing it wrong and could use some guidance.
My husband and I (32 M&F) recevied a six figure distribution from a family trust. We have maxed out ROTH IRAs every year and each have generous work retirements. Where can we put this trust money to avoid additional tax penalties on gains? We are high earners in a lcol area and do not need the money for everyday living and would prefer to put it in a tax deferred account that would benefit us for retirement. What options exist for this distribution? Currently, we have it invested in regular money market account but are looking for alternatives. Thanks in advance for any advice!
Hi all I am a 66 year-old optometrist in New York City. I have owned my own business for over 25 years and definitely have been working with taxable income for over 35 years at this point. I am looking to retire at 70 years old or later so I have a few few years to go. After Covid, we changed my business from an S Corp. to a C Corp. and some of my income is taken in distributions while I collect a $75,000 a year on the books.
My wife also works. She is about a year younger than me and we would be looking to retire at the same age. She works fully on the books as a registered nurse.
I’m not particularly savvy at Personal financial planning, but would increasing my income over my remaining working years boost my Social Security payout significantly? Is this a smart idea or should I be doing something else that is savvier?
Please be gentle on me.. I am interested in any and all advice; this is not my strong suit !
According to the online calculator on ssa gov:
Retirement at 67
$3454
Retirement at 70
$4284
Hi all, I recently just got around to rolling over some old 401(k)s into my own personal account. For reference these were Roth 401ks and have now been rolled over into a Roth IRA.
I’m curious with what I should put these in? Is it just a mix of VTI and VOO? Can I just invest this like any other money in my Roth? I liked the stability of the 401k and am a bit nervous doing this myself.
Added reference: I’m late 20s and have about 70k to play with
I am 56F/husband 58m, with 29 years in at a job with a pension and a low seven figure 401k and a low five-figure HSA. Debt free.
We are starting to think about what retirement would look like. If I leave my current position, we will be needing health insurance to bridge to Medicare.
I would like to find a resource to learn about different scenarios and tax ramifications, specifically about health insurance, which will be our biggest expense. We are planning based on the assumption that subsidies will not be there.
I may be able to work out some part time employment with different startup companies I’ve worked with in my current role. But I would like guidance on how to structure that.
Is it more advantageous to be an employee and have my comp in the form of a HRA? Or should I go 1099/self-employed so premiums are deductible? Any guidance or resources that would be recommended?
I’m recently retired - my nonprofit board’s decision, not my plan - and turning 69 soon. I have enough in a taxable account to hold off applying for SS until I’m 70, when it’ll be worth another $450 per month, and likely to get us to my required RMDs. My wife is collecting her SS and a couple years younger. We have no heirs, the taxable account and home are both jointly in our names, and we are primary beneficiaries on each other’s IRAs. I know I have a short window to convert anything to a Roth. Is there any real benefit to converting? I don’t envision RMDs will raise my tax bracket. I’ve roughly calculated I could convert 10-12% of my IRAs in the next 4 years.
Also, any recommend software to work out the tax scenarios? After years of creating spreadsheets, I’m enjoying not having to use Excel or looking to not recreate the wheel. TIA.
My husband and I are a couple years away from retirement. We had kids later in life and had three in college at the same time and it almost wiped us out. The plan is to go at 65 but perhaps wait until 67 providing our health holds out. I have a pension that will run about $4000/mo. Each of us will have about $2,700/mo in SS. We have $300K in a 401k and 100,000 in a 457 account. Small mortgage on the house. I have zero credit card debt, husband has about $10k. My husband also admitted that he stopped paying on our life insurance years ago so none of that. Is it worth it for us to try and meet with a financial planner to see if there is any way for us to maximize the time we have left while working? I fear we will be living out of a cardboard box. lol. Any suggestions from you smart people? Thanks for listening.
Mid-to-late 20s male, currently renting.
Current finances:
$57k in an investment account
$42k in a 401(k), contributing up to company match
$22k in savings
My current car was paid for in cash, but it has started developing issues. I would prefer to get ahead of any major repairs and either sell or trade it in while it still has reasonable value.
I was offered approximately $8,000 on trade-in, and I would put an additional $10,000 down. That would bring the payment on a 36-month loan into the low $500/month range. This is something I am comfortable with.
Part of me feels that taking on a car payment could negatively impact my finances, especially since I have avoided debt up to this point. On the other hand, I would genuinely enjoy owning a nicer car, and it is something I have wanted for a long time.
I have been shopping within this price range, and based on everything I have researched, the purchase appears to be within my financial limits. I do not plan on purchasing property for at least another four years, and I do not believe this decision would materially damage my long-term financial position. That said, I do understand the importance of compounding wealth and opportunity cost.
I’m looking for objective input on whether this seems financially reasonable or if I am overlooking something important.
Long story short, my savings is tight because I'm moving this summer. Of course summer weather just started and it's peaking at 90 degrees most days. Which is all just impeccable timing for my cars A/C compressor to give out.
The repair is $990, which I would normally have if I wasn't already paying to move. I can get a $1k loan for roughly 18-21% APR. I can pay it off by the time fall rolls around, I am sure.
Besides making 0% APR payments for my tires last year, I've never taken a payment plan over car repairs.
This is for a 2017 Subaru Forester that works well otherwise.
Hello Reddit, i've been reading for what it seems like weeks now, and struggling. Hoping for some advice. Here is my accounts setup and their %s
Base salary is 200k, age early 40s, so I think thats 24% effective tax rate?
Questions
I reduced my 401k deposit to 3% (up to match) because at this point I dont even know what i should be doing. Then, I was told its best to invest as much as I can in Traditional IRA (Fidelity) then immediately convert to Roth (Fidelity) with extra cash.
I really hate having funds in diff places, and looked into moving my Fidelity to my T-Row price (work account), but theres a $50/yr fee (and may be other fees and limits)
T.Row price has a brokerage feature too I could potentially use. Does it make sense to consolidate the accounts?
So that all being said... How do I know if or when need to convert anything to roth? I liked the idea of having the roth account to pull from if i needed before retirement (Extended job loss, etc). But I havent racked up any roth. I swear I did invest in roth decades ago, but not really sure where it went through the job changes and rollovers. Im currently at a higher income level (but havent been there for long, and probably wont be for long).
Thoughts?
29M, single, no dependents. I’ll keep it anonymous but everything’s converted to USD with roughly equivalent taxes and cost of living.
Circumstances:
-137k base salary pre-tax + 20k in overtime/allowances
-75k in retirement savings (locked, not accessible)
-Investment property: $653k value, $420k mortgage, $233k equity. Rents for $410/week but is cashflow negative
-No other debt whatsoever
-Minimal liquid savings
-Modest $10k car
I work 3 days on, 3 days off (10hr shifts) in an extremely specialised career. I live in one of the most remote, isolated cities in the world. My qualifications are genuinely niche and non-transferable. If I moved or changed careers I’d likely take a 50% pay cut. Realistically this is the ceiling of my earning potential, with only modest annual increases.
My goal is to move into the investment property once the mortgage is at a level manageable on a lower income or fully paid off in 7-10 years. It’s near a beautiful beach, sentimental to me, and where I’d want to eventually raise a family. I’d want \~$50-70k set aside for renovations before moving in.
What I’m torn on:
Should I be aggressively paying down the mortgage like I currently am, or building liquid investments instead? My instinct is the mortgage but I genuinely don’t know.
Also open to the broader life question — Should I be travelling more, even at the cost of slower financial progress? The dating market where I live is genuinely terrible and I’m aware that meeting someone I’ll like probably requires putting myself in better environments.
I know I’m in a relatively strong position and I’m not complaining. But I can feel the tension between optimising financially and actually building a life worth living.
Curious what this community thinks :)