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SiGmA_X posted:Stick it in a Vanguard fund and live off of 4% of it per year. Discharge any debt that was solely in the husbands name. Budget. This really depends on how much money she is receiving. Just because her husband has life insurance, doesn't mean it's the recommended 10-12x income. Discharging the debt you can and budgeting is very sound advice though.
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Sep 16, 2015 14:13
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Blue Scream posted:I have my emergency fund stashed in an online savings account that is currently earning 0.5% (it was higher when I opened the account years ago). Is it worthwhile to go chasing better rates with another bank, or do things go up and down enough that there's no point? I know inflation is an issue, but I don't want to put the money into something too risky like stocks. Liquidity and fast access are more important to me. It really depends how much effort you want to put into it. Ally current has .99%, and it took me all of 10 minutes to sign up, followed by signing a signature card they mail you.
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Oct 3, 2015 22:49
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Echophonic posted:Does anyone have any particular recommendations or reading on online savings accounts? Seems like there's not a ton in the way of reviews and resources for picking them aside from rates and review sites that are half people with axes to grind. I just started using Ally. Very easy to set up and transfer funds. That being said, I have only been using them for about 3 months.
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Nov 4, 2015 01:07
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Irritated Goat posted:Yeah, I kind of thought that but the idea of paying off lots was really tempting. I needed people to slap me out of it really. You will pay a ten percent penalty plus your marginal tax rate. Would you pay 60k to reduce your debt by 30k? I would hope not! 
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Jan 9, 2016 21:06
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Sab0921 posted:So, I'm having a personal dilemma on savings/loans. I would pay them off. You would still have 15k as an emergency fund, and you said yourself you could rebuild it quickly. Most people recommend 6 months of expenses in cash, so unless your monthly expenses are running 10k/month I would say you're a little heavy on cash anyway. It's hard to beat a guaranteed 6% return.
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Feb 29, 2016 04:05
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I'm currently saving up money to buy a house, with a target of 20% down plus closing costs to avoid PMI. I hope to have this by July of next year, but it looks like this will be a very difficult target to hit. I work for a private company that gives me 8.5% of my salary each year in stock. I currently have just under $20k worth. This stock is part of a retirement plan, and as such I cannot sell it whenever I desire. There are, however, several situations that you can redeem the stock, including "up to $20k for costs due at closing for your primary residence." My understanding is that I will pay my marginal income tax rate on this redemption. At the moment, most of my net worth is tied up in this. My question is: what would you do in this situation? Would you redeem some or all of this money when ready to purchase? On one hand, it makes me a little nervous to have so much of my net worth tied up in the company I also work for. On the other hand, this stock has historically returned 18%/year on average since inception, and 12% in the last decade. I feel like I would be losing out on a lot of long-term gains if I were to sell out. I should also note that my company has never laid off a single person - unless I screw up very badly, or do something illegal, the chances of me losing my job while the stock price also takes a hit (due to an economic crisis, for example) are very slim. Unless the company (very large, been around since the 20's) goes under.
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Mar 22, 2016 14:22
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Chu020 posted:This is probably a stupid question, but when saving for intermediate term goals, like a house down payment, car, etc, where the time horizon is something like 3-8 years, where is the best place to put savings? For example, we'd like to buy a house in the next 2-3 years, a new car in 5 yrs, and likely a 2nd new car in 8-10. Timing is flexible on these estimates, unless something catastrophic happens with the cars. So the options as I see it are: I think the general rule of thumb is if your goal is <5 years out, leave it in a high-yield savings account. If the goal is any longer out, put it in a taxable investment account. As for allocation, I'm not entirely sure. I would probably just put it in an S&P index fund.
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Mar 26, 2016 21:04
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Parallel Paraplegic posted:Is there a megathread about credit unions? I remember one a looong time ago but I can't seem to find it now. I'm also in the Tampa area, and I'm with Grow Financial. Their website is fantastic, and there are branches everywhere. Plus, you can use the atm at any Publix for free. I highly recommend them.
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Apr 13, 2016 16:44
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Parallel Paraplegic posted:Quick dumb question about my 401(k) - for the first time, I'm working for an employer that does matching. I just set it up to be contributing up to the match now that I'm eligible, but I'm wondering if there's any gotchas because I picked the Roth? Does the match still work for Roth? Do I have to pay any extra taxes on the matched money or something like that? My understanding is that the company match will go into a traditional 401k but your contribution will go into the Roth like you selected. So no tax implications.
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May 20, 2016 17:47
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In my experience, it goes a long day to just tell her "Hey, this is important to me". You need to make her want to save for it; forcing her to do it will just cause problems. If she doesn't want to learn how to handle money well, it's probably best to just  .
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Jul 7, 2016 03:54
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I'm looking into buying a house 12-18 months from now. My credit is estimated at between 760 and 780 depending on the source. Each source says that biggest thing preventing me from getting to 800+ is the fact I have no recent installment loans. I'm thinking I will not see a change in the rate offered to me if I somehow raise my score above 800. Am I correct with this line of thinking? If not, would taking a small, 3-5 year used car loan for around $8000 offer enough benefit to make it worth it?
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Oct 17, 2016 03:00
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pig slut lisa posted:I'm in the same situation and I'm like 99% sure that once you're up in that range the boost to 800 does nothing for your rate. Thanks, and good much to you too! I'm going to be looking in the Lakeland, FL area (god help me) so please don't murder me.
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Oct 17, 2016 15:03
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halokiller posted:I'm about to get 60k USD lump sum by the end of the year. My question is what is the best way to utilize it? Most pressing issues is that I currently have 30k in student loans and my home is badly need of repair and interior remodeling (to make it sellable down the road - haven't gotten an estimate but probably about 50k). What is the interest rate(s) on the student loans?
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Oct 23, 2016 14:42
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Xyven posted:If you're under the student loan interest deduction cap, you should discount your interest rate by your marginal tax rate to account for the deduction. This prob makes your loans closer to 4%, so paying them off might not be as clear cut a choice. I have some 4-5% loans that I will never pay more than the minimum on, because it's worth more to just invest that money in a taxable account Don't forget to consider the cash flow aspect as well though. It's something that I seldom see mentioned, but in my opinion is a nice thing to consider. This however is a lot more subjective an issue than interest rates and returns. By eliminating the loan payments, you have more cash flow and can be a lot more flexible with your monthly expenditures. There's a lot to be said in favor of that.
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Nov 16, 2016 13:35
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Josh Wow posted:Just want somebody to double check me on this. I just got an offer to upgrade one of my credit cards to the next tier of card that comes with an annual fee. This would bump up my rewards to 6% back at grocery stores and 3% back at gas stations. The annual fee is $95. Since I spend $200/month at the grocery store this makes sense to do right? By my math I'd be getting back $144/year just from that. You have to keep in mind that for $0/year you can get 3% back for groceries. So you are really only getting an additional $72 back by signing up for a $95 annual fee. If you can make up the $23 difference with your gas spending, then it's worth it. Otherwise it's a wash or you're actually losing money by upgrading.
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Nov 21, 2016 13:45
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Marcushies posted:Question up front: After establishing a decent emergency fund and max contributions to a Roth IRA, where should I put extra money? If you are not maxing out the 401k, put it there if you want more retirement savings. If you are maxing it, then determine what you want to save for next, either a purchase or more retirement, and put it in the appropriate vehicle. If you're less than 5 years out of meeting that goal, put it in an online savings account. More than 5 years out, and it's not for retirement, put it in an index fund. If it's for retirement, put it in whichever fund(s) that keeps your portfolio balanced.
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Nov 24, 2016 14:52
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Battered Cankles posted:My SO recently changed from full-time to contingent, and is now working ~50% of the former hours at that facility. Legally speaking, you're probably best off telling her employer they messed up. Until they correct it, keeping it in a savings account is fine. Definitely make sure you don't touch it though.
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Dec 22, 2016 18:19
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Duckman2008 posted:So I am transferring about 5K from an old Roth IRA account to a Vanguard account. Any advice on which Funds to put it towards? I just want it to be diverse, and then just let it sit there and not have to think about it. Put it in a Vanguard target retirement fund. Pick the year closest to when you plan to retire and you're good to go.
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Dec 29, 2016 17:51
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Steampunk Hitler posted:Between my wife and I we have 13 different credit cards that we have accumulated over the years for one reason or another. We don't carry balances on any of them and only one of them has an annual fee (which we more than make up for with the rewards from it). I had always read that it's important to have at least some amount of spend each month (even a dollar) to keep a credit card active but doing that across all 13 accounts is mildly annoying each week when I have to go through all of them each week to reconcile my budget software against my spending. How important is it really to have activity on all of these cards, is it reasonable to just not spend at all on these cards so that I can just let them sit on autopay and never have to really look at them again? I'd honestly kind of like to close them, but the ones we're not using are all the oldest cards we have and combined make up > 50% of our available credit so I think that would be somewhat silly to do if it's not a big deal to just stop spending money on them. Closed accounts stay on your report for at least 7 years. Your average age won't be affected until then. The only concern is if closing your accounts will impact your utilization significantly - and even that doesn't matter since utilization has no memory. So if you're planning on borrowing a significant amount of money soon, just pay the cards off and you're good to go. I would just close the accounts you no longer use.
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Jan 27, 2017 14:59
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C-Euro posted:X-post from the Goals thread because this thread may be better for this- my student loans are currently split across two accounts, one at ~$1500 with a 5.6% interest rate (subsidized), and one at ~$4k with a 6.8% rate (not subsidized). I'm paying more than the minimum each month and have the option to allocate the excess payment into these accounts in any ratio I define. Would it be better to concentrate on getting rid of the smaller loan ASAP or should I bring down the larger loan sooner due to its higher interest rate? My goal is to pay $3k into them this year ($250/mo vs. the $100 minimum I have to hit), which would be enough to get rid of the smaller of the two. Mathematically speaking, you save more money on interest by paying off the unsubsidized loan first. Psychologically, paying off the smaller loan will feel great, plus it frees up a little bit of cash flow a little sooner. Neither choice is bad. Personally, I would pay off the smaller loan first, but I believe most of BFC would recommend paying off the higher interest loan.
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Feb 11, 2017 13:44
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Randler posted:I'm currently wondering if I should up my emergency fund or not. I currently have €6,000 in a separate account which is 4 months of living expenses (€ 1,500). And about another month of living expenses budgeted in various saving categories for non-necessary stuff that could be switched over if push comes to shove, e.g. savings for vacations, electronics and the like. Do what helps you sleep at night, so long as it's reasonable. A 6 month emergency fund is on the high end of a typical fund, but if that's what keeps you from worrying, go for it. You should be fine with 6,000 though.
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Feb 20, 2017 20:14
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Magnetic North posted:I understand this is way better than interest rates have been, but I would have assumed the gooncensus on savings accounts would be "Don't bother, put that money into an instrument, etc etc". (I suppose a CD counts.) Is that incorrect? Depends on when you need the money. If you're keeping your emergency fund in there, it's nothing but a good thing. Same if your timeline for some other savings goal is short.
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Apr 23, 2017 13:18
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totalnewbie posted:Years ago, when I was much, much younger, my grandmother apparently purchased a single premium life insurance policy. It's a policy on MY life, so I assume she thought I was terrible but my kids would be great. /shrug Cash it out. There's no reason to hold universal life insurance. But term life insurance for your family's well-being.
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May 21, 2017 20:20
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PhillyLucky posted:So my wife and I have a pretty good little nest egg we've built up. Keep enough for 3 to 6 months if expenses, and throw the rest at her 6.9% loan. The e fund will keep you safe in case of unexpected expenses or unemployment. Paying off the loan is getting a guaranteed 6.9% return on your money, which is going to be hard to beat with investments.
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May 27, 2017 21:42
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legsarerequired posted:
Unless I'm missing something, this isn't an option since you cannot roll a 401k to an IRA unless you leave the job.
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Jun 29, 2017 03:52
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buglord posted:For maybe the next two years, I'm going to be able to keep 90% of my income (the other 10% going to meager bills). I'm fresh out of college and have 27k in federal student loans. This past month, I've aggressively thrown every spare dollar into them. To answer your first question: it depends. Does your job offer matching on their 401k or equivalent plan? If so, contribute enough to get the full match. After that, what's the interest rate on your student loans? If they are 4% or higher, I would focus on paying those off next. If they are less than 4%, it comes down to preference. Having no debt gives you a peace of mind, but missing out on potential returns would scare some people too. To answer your second question: if some politician does something to make your savings "vanish", you will probably have bigger things to worry about than how much money you have. I wouldn't concern yourself with that possibility.
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Sep 23, 2017 17:37
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Lando Kardashian posted:Can anyone provide a referral link for the Discover IT CC? I want that sweet sweet hundo. Here's a referral from me if you need it, although it's only $50, not $100: https://refer.discover.com/s/7qof7
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Oct 10, 2017 19:04
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Photex posted:Speaking of payoffs, what's the general rule of thumb for savings? I have a really bad car loan at 10.9% (loving kill me, but it helped out) we have $3400 left on the loan and about $7000 in savings (not including 401k) should I just kill off this car loan? Depending on how much risk you're okay with, 3 to 6 months of expenses is the general rule of thumb. I feel very stable in my job and me and mine are young and in good health, so I go with 3 months. Go higher if you have factors that might cause problems, or if that level makes you feel uncomfortable.
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Oct 17, 2017 17:51
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theHUNGERian posted:A legit person needs my IBAN and Bic/Swift numbers. How do I determine those? I found web pages that claim to be able to get me that info once I enter my bank information. I do not trust those web pages. Contact your banks customer service in person or over the phone. They should be able to provide everything you need.
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Nov 7, 2017 12:26
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Spokes posted:Hi folks. I'm looking for advice about a particular problem i've identified with my spending. I've gotten pretty good at cutting out fast food and making rice and beans and grilling chicken or whatever at home, saving like, $5 or $6 a day. Take an inventory of all of these cool expensive things you've gotten. Then write out next to it the last time you've used it. I used to buy video games and consoles but as soon as I realized how much I was spending and how little I used it, it helped me change my behavior real quick.
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Feb 5, 2018 18:53
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22 Eargesplitten posted:Oh, sure, go ahead and shame me. Is 3 months not enough on the low end? I feel like 3 months is a good emergency fund depending on a few factors. If you're young, healthy, have a reasonable expectation to not be laid off, and have a good support network, I don't think that's unreasonable. The older or unhealthier you get, or if you don't have anyone to help out in bad situations, or you have unstable income or the possibility to be laid off, the more you should have socked away. For example, I'm under 30, I belong to a good church, have family ready to help out, and work for a company that only fires you if you're literally stealing from them. I'm pretty comfortable with just 3 months expenses in my emergency fund.
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Mar 7, 2018 19:42
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KYOON GRIFFEY JR posted:This isn't a good idea To give more detail: by adding your cousin as an authorized user, she is under no obligation to pay for her purchases. You are. Don't add anyone as an authorized user unless you are prepared to pay for their purchases.
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Mar 23, 2018 11:58
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alnilam posted:I've never bought a car before. Assuming you are buying from a dealer, you tell them after you've negotiated the out-the-door price of the vehicle, say $X. Once you have that number, you tell them you're paying $Y in cash and financing $Z through your credit union and hand them the letter. Make sure X = Y + Z so they don't sneak any extra fees or other crap in there after you've negotiated that out-the-door price.
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Jul 23, 2018 19:45
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The last time I purchased a vehicle they even took a debit card.
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Jul 23, 2018 21:13
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Salt Fish posted:I'm about to transfer the 401k from my last job to my personal vanguard account. I'm worried about the economy, would it be a terrible idea to put those funds into cash temporarily until things cool off? If I put 100% of my old 401k into a vanguard money account I'd be at about 50% stocks and mutual funds and 50% cash with the goal of being back to 100% stocks and mutual funds around DJIA = 20,000 If this is for retirement, and you're not retiring soon, don't time the market and invest now.
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Jul 28, 2018 17:17
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Mocking Bird posted:I've never bothered with 0% when I had the cash - I prefer the simplicity of fewer/no payment plans to the potential opportunity cost. If it's a daunting purchase to use cash for, that tends to mean I haven't saved for it long enough. Also, a lot of places will offer a cash discount that they don't advertise if they also have 0% financing offers. No harm in asking.
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Nov 11, 2018 21:50
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I would take $5k of that to spend on something you want as a one-time treat, and then use the rest as Hoodwinker described. It's not very often you get a windfall like this, and it's large enough relative to the rest of your goals that the $5k won't make a significant difference after your debts are paid and emergency fund is filled.
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Nov 28, 2018 14:07
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nwin posted:My job is secure (military-I’ll be in the next 8 years), so I don’t need the 20k in savings right now. I'd be careful with this line of thinking - one of the BFC threads a while back had someone state this exact thing, and then they got injured and medically discharged. Having a reasonable emergency fund covers you in situations like that.
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Nov 30, 2018 14:15
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CubeTheory posted:I am very poor person in a small rural town with a lovely bank. Is there a good online bank solution for me? I specifically need to be able to do the photo a check and cash it thing, as my employer does not offer direct deposit. All I really need is to be able to cash checks and have a debit card, not looking for anything too complicated. I have no savings to speak of right now as I'm dealing with health issues and I am fairly cleaned out. Both Ally Bank and Alliant Credit Union are goon favorites, and there are many other options as well. Just check to make sure there aren't any unreimbursed fees for using an ATM since you will have to use out of network machines if you need cash.
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Dec 14, 2018 12:25
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BEHOLD: MY CAPE posted:in my opinion there will probably be changes made at some point to the rules for HSAs once regulators realize that they are going to turn into giant second IRAs for rich people A boy can dream that the government will take something away from rich people
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Jan 8, 2019 17:26
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