|
Look at the points redemption chart. A point is a penny. It's basically 1% back, so unless you're spending tens of thousands of dollars, don't expect a huge return.
|
#
?
Aug 8, 2012 14:00
|
|
|
|
| # ? May 13, 2024 11:31 |
|
|
notMordecai posted:Here are some more notes on that Blue Sky card that just makes it really tempting:
|
|
#
?
Aug 8, 2012 15:21
|
|
|
So, I saw an infographic on facebook not too long ago about how a person should have saved up something like 20 years worth of income for their retirement. Isn't this a bit of an over-estimate? My grand-parents seem to live quite comfortably just off of their social-security. The only reason they ever work (part-time) is to save up a bit of extra money for vacations. I'm not suggesting that people should stop investing for retirement and just rely on social security but 1,200,000 seems like a bit much for a guy that wants to own a small home, take a couple vacations each year and spend his time reading, gaming and gardening when he's old. edit: Don't worry we're saving and thanks for the mortgage info earlier. I talked to a few people and now I see the benefit of mortgaging in the long term. Thanks. Sephiroth_IRA fucked around with this message at 18:55 on Aug 8, 2012 |
|
#
?
Aug 8, 2012 18:49
|
|
|
That's assuming you want to maintain close to your standard of living for the duration of your retirement. Sure, you can live off social security, but it's just barely scraping by. What you have saved up beyond that determines the level of luxury you'll have. Keep in mind too, that you'll be looking at however many years of inflation. To live like you have $60,000/yr now you'll need something more like $100,000/yr in 2050.
|
|
#
?
Aug 8, 2012 19:01
|
|
|
If you want to get stuck in a poor folk retirement home when you can't negotiate the 3 steps to your front door, be my guest. A healthy savings means in-home care and kids who give a poo poo about you.
|
|
#
?
Aug 8, 2012 19:11
|
|
|
Also the chances of social security existing by the time our generation retires, especially in its current form, are almost non-existent. I personally think that if it still is around, the retirement age will be much higher, so if you want to retire before that you'll need an income in the interim. Any retirement plan for an American under 40 that's heavily reliant on social security is risky. In my opinion.
|
|
#
?
Aug 8, 2012 19:20
|
|
|
Sophia posted:Also the chances of social security existing by the time our generation retires, especially in its current form, are almost non-existent. I personally think that if it still is around, the retirement age will be much higher, so if you want to retire before that you'll need an income in the interim. Don't give in to the screaming politics, it won't take massive changes to make it solvent. There will probably be changes, but they will also probably be pretty modest. A couple year increase in retirement age, maybe remove the cap on SS earnings... social security will be around more-or-less as-is, or better, in 50 years, in my opinion. http://blogs.reuters.com/reuters-money/2010/07/27/selling-the-big-lie-on-social-security/
|
|
#
?
Aug 8, 2012 19:28
|
|
|
Yeah I agree it would be quite risky and I never thought a retirement plan reliant on SS would be a good idea. I'm just debating why my retirement would necessarily be so expensive if I own my home and have absolutely 0 debt. Unless of course medicare goes out the window.
|
|
#
?
Aug 8, 2012 19:31
|
|
|
Unormal posted:Don't give in to the screaming politics, it won't take massive changes to make it solvent. There will probably be changes, but they will also probably be pretty modest. A couple year increase in retirement age, maybe remove the cap on SS earnings... social security will be around more-or-less as-is, or better, in 50 years, in my opinion. As a former retirement actuary, I disagree, but that's kind of a long debate. Regardless I think everyone can agree that it's less risky to have your own retirement savings, as well as expectations of employer and government benefits, going into retirement.
|
|
#
?
Aug 8, 2012 19:32
|
|
|
Sophia posted:As a former retirement actuary, I disagree, but that's kind of a long debate. Regardless I think everyone can agree that it's less risky to have your own retirement savings, as well as expectations of employer and government benefits, going into retirement. Sure, I'm not saying don't max your IRA+401k 
|
|
#
?
Aug 8, 2012 19:33
|
|
|
Hi! I need some advice on how to effectively manage the little money I have. I am going into my third year of college so here are some quick stats: Federal loans incurred so far (subsidized + unsubsidized) = 20,970 Estimate of total federal loans by graduation = 42,000 Private loans incurred so far (estimated 12.75% interest) = 8,000 Estimate of total private loans by graduation = 12,000-16,000 (will probably grow to 40k in 20 years) So here is my dilemma. I was thinking about buying a Genuine Stella Scooter for around 3,699 in my senior year of school. I make roughly 4,000$ a year from my part time jobs all year round. Should I delay buying the scooter so that I can take out less private loans, but have no form of independent transportation? I live with my grandparents and will probably need time to get on my feet and save up enough money for rent and monthly loan payments till I can move out, but I was just wondering if a scooter would be worth spending my own money on or should I just use that money to take out less private loans?
|
|
#
?
Aug 8, 2012 20:06
|
|
|
Do you even need the scooter or is this just something you want? How do you get around now? Also after you graduate you would probably benefit more from having a car than a scooter right? $3700 is also the price of a decent used car.
|
|
#
?
Aug 8, 2012 20:12
|
|
|
Orange_Lazarus posted:Do you even need the scooter or is this just something you want? How do you get around now? Also after you graduate you would probably benefit more from having a car than a scooter right? Exactly this. I would put that money into your schooling to avoid more student loans. Why? 1. Scooters depreciate. Loans appreciate... and not in a good way. 2. Student loans, unlike vehicle loans, cannot be discharged by bankruptcy. 3. I do not think you have taken insurance into account which is probably going to be high.
|
|
#
?
Aug 8, 2012 20:20
|
|
|
Eggplant Wizard posted:3. I do not think you have taken insurance into account which is probably going to be high. If he only gets basic liability to be street legal it should be really cheap actually.
|
|
#
?
Aug 8, 2012 20:21
|
|
|
If you need a scooter for transportation, you can get a decent one used off craigslist for 1/4 that price. And yes, insurace will be dirt cheap assuming it's roughly the same as motorcycle insurance.
|
|
#
?
Aug 8, 2012 20:26
|
|
|
A used car is probably also a good idea if he really needs transportation. Sure the cost of gas will probably be a bit higher but at least you'll be able to pick up your dates. Also I think a car looks better for future job interviews anyways. Seriously, employers are weird and might not hire you for something trivial like that. Edit: $4,000 bucks seems a bit low even for a guy in college who works part time. Maybe this is the best you can do right now and that's cool if it is (considering you probably need as much time as possible to study) but just don't sell yourself short there are decent part time jobs out there. Sephiroth_IRA fucked around with this message at 20:47 on Aug 8, 2012 |
|
#
?
Aug 8, 2012 20:34
|
|
|
Thanks for all the tips guys. I think I'll just put my money into keeping my private loans down. During the summer I work a lot as a busser at a dining establishment, but during the school year the only job I have been able to secure is my work study job which basically has a cap of 2,000 dollars a year. It is hard for me to work another job during the school year because of my lack of transportation and school obligations. A scooter was more something that I wanted when I graduated. Right now I get to work with the help of my family dropping me off, or I bike when it isn't to hot to bike in an all black uniform. I was planning on moving to a city when I graduate so maybe I was figuring it would be useful to have a scooter and use public transportation since scooters have low monthly insurance and great mpg. I still have awhile to think but I think I'll focus my money into keeping my private loans down
|
|
#
?
Aug 8, 2012 20:51
|
|
|
Ah sorry I forgot about work-studies/internships. My bad.
|
|
#
?
Aug 8, 2012 20:52
|
|
|
I think the scooter is a great idea, you just don't need to spend that much on it.
|
|
#
?
Aug 8, 2012 21:00
|
|
|
RebBrownies posted:A scooter was more something that I wanted when I graduated. Right now I get to work with the help of my family dropping me off, or I bike when it isn't to hot to bike in an all black uniform.
|
|
#
?
Aug 8, 2012 21:47
|
|
|
LorneReams posted:You'll take a tax hit unless you roll it into an IRA. This is not really a good or bad thing, it just is, and is something to think about. Do I take the tax hit when I withdraw in however many decades, or is there something I need to do next time I file? I'm just terrified of somehow owing enormous amounts of money to the IRS because I didn't know about some form or procedure.
|
|
#
?
Aug 8, 2012 22:26
|
|
|
Xguard86 posted:Do I take the tax hit when I withdraw in however many decades, or is there something I need to do next time I file? I'm just terrified of somehow owing enormous amounts of money to the IRS because I didn't know about some form or procedure. 401(k)'s and regular IRA's are tax-defferred, so when you start withdrawing after age 59 1/2 you will be taxed on your withdrawls at whatever the income tax rate is then. If you withdrawl before age 59 1/2 the money will be subject to your income tax rate plus an additional 10% penalty.
|
|
#
?
Aug 8, 2012 22:42
|
|
|
Xguard86 posted:Do I take the tax hit when I withdraw in however many decades, or is there something I need to do next time I file? I'm just terrified of somehow owing enormous amounts of money to the IRS because I didn't know about some form or procedure. If you go from an IRA (pre-tax) to a Roth(post-tax) the entire IRA will be counted as income for that year.
|
|
#
?
Aug 8, 2012 22:45
|
|
|
RebBrownies posted:SCOOTER! As a real scooter/moped enthusiast who just graduated from college myself... dear sweet jesus do not go buy a new scooter with your money. Anecdotal story here---but I bought a brand new scooter when in college and it was stolen, the same day I bought it. It was a stretch for me to buy it new and having it lifted REALLY put me in a bind. Yeah, you *HOPEFULLY* won't have the same issue, but you don't NEED it and it would be much wiser to hold off. If you absolutely must have 2 wheels, get a used scooter or moped. They're easy to keep up, so going used isn't at all a bad idea.
|
|
#
?
Aug 8, 2012 23:07
|
|
|
Thank you guys all for your help! This doesn't seem as bad as I thought! I'll do some shopping around for better prices and maybe check out some used scooters in my senior year! I appreciate the help! Expect to see me back soon with more questions since I'll be paying my tuition and all college expenses myself. =) (Dead Pressed since you are an enthusiast any model or make of scooter you would suggest getting? )
|
|
#
?
Aug 9, 2012 04:12
|
|
|
I have a quick defaulted(?) debt question. My wife's ex-husband defaulted on a car loan. The car was repossessed. She signed on the loan originally (she was 18, we have to give her a break.) It went on her credit, it's been well over 10 years, so it's left her credit. She still gets a letter from a debt collection agency about twice a year. Original bill, 5,000, they want 900 now. Will this ever negatively affect anything? We've bought a house, and two cars so I'm guessing not, but I'm just curious if anyone has any insight.
|
|
#
?
Aug 9, 2012 06:05
|
|
|
LorneReams posted:If you go from an IRA (pre-tax) to a Roth(post-tax) the entire IRA will be counted as income for that year. that is a thing I do not want. So if I take my 401k and open a non-roth IRA my tax bill this year will be $0 and I will owe normal IRA taxes only when I eventually withdraw?
|
|
#
?
Aug 9, 2012 20:58
|
|
|
OlyMike posted:I have a quick defaulted(?) debt question. My wife's ex-husband defaulted on a car loan. The car was repossessed. She signed on the loan originally (she was 18, we have to give her a break.) It went on her credit, it's been well over 10 years, so it's left her credit. She still gets a letter from a debt collection agency about twice a year. Original bill, 5,000, they want 900 now. Will this ever negatively affect anything? We've bought a house, and two cars so I'm guessing not, but I'm just curious if anyone has any insight. It depends on which state you live in as far as statute of limitations goes. They can try to ask you for the money indefinitely, but if it's after the the statute of limitations, they can't take you to court over it any more. http://credit.about.com/od/statuteoflimitations/a/entirestatesol.htm
|
|
#
?
Aug 9, 2012 21:16
|
|
|
Xguard86 posted:that is a thing I do not want. So if I take my 401k and open a non-roth IRA my tax bill this year will be $0 and I will owe normal IRA taxes only when I eventually withdraw? Yes. In fact I recommend anyone who has to roll one over to make a long term IRA somewhere because odds are you will have to do this again in 3-5 years when you leave your next job.
|
|
#
?
Aug 9, 2012 22:55
|
|
|
I currently put a little bit of money into a 403(b), is that the best place for it or are there advantages to the Roth IRA...I understand pre tax/post tax but beyond that I am clueless. I put ~12% into my pension (employer match) and about 1% into the 403(b), but have plans to double that.
|
|
#
?
Aug 9, 2012 23:39
|
|
|
ntd posted:I currently put a little bit of money into a 403(b), is that the best place for it or are there advantages to the Roth IRA...I understand pre tax/post tax but beyond that I am clueless. I put ~12% into my pension (employer match) and about 1% into the 403(b), but have plans to double that. You'll generally have better investment options in the form of a wider variety of mutual funds or cheaper index funds in an IRA/Roth IRA at a brokerage. Am I reading right that you're putting 12% into the pension and then the employer is also putting 12% in or you're putting 6% in that's match for a total of 12%? You're right in the guidline of 12-15% but if you're putting more that 25% it may be excessive.
|
|
#
?
Aug 9, 2012 23:53
|
|
|
zharmad posted:You'll generally have better investment options in the form of a wider variety of mutual funds or cheaper index funds in an IRA/Roth IRA at a brokerage. Am I reading right that you're putting 12% into the pension and then the employer is also putting 12% in or you're putting 6% in that's match for a total of 12%? You're right in the guidline of 12-15% but if you're putting more that 25% it may be excessive. It's actually 10% me, 14% employer, the contribution change hasn't happened yet. there is a reason university pensions are good Sounds like I should look into the IRAs then, I originally went with the 403(b) because it was pushed more by HR, but we have lots of options. ntd fucked around with this message at 00:21 on Aug 10, 2012 |
|
#
?
Aug 10, 2012 00:17
|
|
|
ntd posted:It's actually 10% me, 14% employer, the contribution change hasn't happened yet. there is a reason university I joke, but it makes me remember when I had a 403(b) at a $80,000/year tuition bording school with a match up to 4% that I thought was awesome. ntd posted:Sounds like I should look into the IRAs then, I originally went with the 403(b) because it was pushed more by HR, but we have lots of options. Do you have any match with the 403(b)? If so contribute up to the match, it's a guaranteed return.
|
|
#
?
Aug 10, 2012 00:27
|
|
|
I graduated from university two years ago and have been paying the minimum balance (by auto-debit) on my student loan ever since. Not sure exactly when I made my first payment but the minimum payment is ~90 a month and the original principal balance was 7500. I looked at my statement for the second time ever today and apparently i owe 7100. The interest is 6.8% and I have no idea if that was ticking while I was in university or how that works or anything. Anyway, I think that is pretty stupid so I'm thinking about paying it off. Should I just pay this poo poo off? I could drop the seven grand and, like, not be hurting too bad. But psychologically I don't like the idea of spending seven grand to stop paying ninety a month. I'm thinking maybe I'll just pay a grand a month for the next seven months. But at the end of that I'll have, what, something like 300 dollars less than if I just paid it all off today? e: I'm pretty bad with finances, obviously. I pay my bills and rent, save some money and spend some money on dumb poo poo and that's basically my finances. After bills and rent, I net about 3200-3600 a month at my current job and I currently have 17k in my checking account, if that helps. eighty-four merc fucked around with this message at 00:52 on Aug 10, 2012 |
|
|
#
?
Aug 10, 2012 00:48
|
|
|
If you can afford to pay it off without cramping your lifestyle or draining your emergency savings, then really you should just do it. If you've got 7k cash lying around, it's definitely not growing anywhere near as fast as the loan at 6.8%. Or just pay it off a couple grand a month for the next couple months, really no reason to drag it out. The longer the wait, the more it is costing you. Edit: SLAMMYsosa posted:e: I'm pretty bad with finances, obviously... I currently have 17k in my checking account Yeah you are, holy crap, why do you have 17k sitting in a checking account doing nothing for you? YES pay off the 7k loan right now, and then put most of the rest of that to work for you in a better savings/investment vehicle. You obviously live well within your means which is great, but having that much cash lying around just losing value to inflation is really bad over the longterm. Do you have a 401k, IRA, or any sort of brokerage account? With a surplus of 3k/month you could be saving/investing shitloads of money, and by not doing so you're losing out on a lot of potential growth. Guinness fucked around with this message at 00:58 on Aug 10, 2012 |
|
#
?
Aug 10, 2012 00:53
|
|
|
SLAMMYsosa posted:
Instead of looking at the payment, you could look at it like you're paying $7,000 today to avoid paying $10,500 over the next 10 years. Your assumption about the 7 month payoff is right, you'll only pay about an additional $297.50 in interest if you do it that way.
|
|
#
?
Aug 10, 2012 00:58
|
|
|
Hey SLAMMYsosa, I've got a great deal for you. Pay me $300 now. I will give you $7000. Over the next 7 months, you can give me $1000 a month. Deal?
|
|
#
?
Aug 10, 2012 01:07
|
|
|
OlyMike posted:I have a quick defaulted(?) debt question. My wife's ex-husband defaulted on a car loan. The car was repossessed. She signed on the loan originally (she was 18, we have to give her a break.) It went on her credit, it's been well over 10 years, so it's left her credit. She still gets a letter from a debt collection agency about twice a year. Original bill, 5,000, they want 900 now. Will this ever negatively affect anything? We've bought a house, and two cars so I'm guessing not, but I'm just curious if anyone has any insight. I would check with the debt collection thread, but it's basically just an old loan that this company bought for pennies on the dollar and is making a hail mary attempt to collect. The statue on limitations is around 7 years I believe to collect a debt. http://forums.somethingawful.com/showthread.php?threadid=3234974 If you send them a certified letter asking them to prove you owe the debt and not to contact you anymore, you should stop getting collection letters.
|
|
#
?
Aug 10, 2012 03:42
|
|
|
FCKGW posted:I would check with the debt collection thread, but it's basically just an old loan that this company bought for pennies on the dollar and is making a hail mary attempt to collect. The statue on limitations is around 7 years I believe to collect a debt. Thanks guys, yeah, it's been well over the limitations. (sorry, didn't see that thread). It's not a big deal, so we'll just ignore it, if they get our phone numbers somehow we'll send a letter.
|
|
#
?
Aug 10, 2012 04:38
|
|
|
|
| # ? May 13, 2024 11:31 |
|
|
I have a question. I am going to lend a friend some money to invest in her business as a personal loan. The intelligence of this move is not up for discussion, I'm going to do it, for better or worse. The question is, she wants to do things 'properly' and by that she means she wants a written contract of the loan and conditions of paying it back and interest etc etc. She also wants this done in a legal way, ie she said I should see a solicitor to get a document drawn up. This is where I'm out of my depth. I've never needed the services of a solicitor so I don't know where to start. Is there a specific kind of solicitor who deals in personal loan contracts? What sort of thing do I need to bring to any meeting with one, just an outline of the contract conditions and they can write one up? Personally I'd like to just give her the money and go with a contract witnessed by a JP, but she wants it done all fancy like (at least she's taking it dead serious?) Any advice on the subject would be greatly appreciated. I'm in Australia btw, I'll bet that's relevant.
|
|
#
?
Aug 10, 2012 11:13
|
|