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I can get behind this: NYTimes: Using Gambling to Entice Low-Income Families to Save http://nyti.ms/1na51iO Its not as bad as it sounds.
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Aug 31, 2014 15:29
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Prize linked savings is an awesome idea, there is an episode of Freakonomics from a couple years ago that talks about it if you're interested.
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Aug 31, 2014 19:20
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antiga posted:Prize linked savings is an awesome idea, there is an episode of Freakonomics from a couple years ago that talks about it if you're interested. I am interested,so I'll look that up tonight. Thanks!
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Aug 31, 2014 20:28
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Yeah, we started doing this in Washington fairly recently and I don't know much about it but it seems awesome and I've heard only good things about it.
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Sep 1, 2014 16:41
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Duckman2008 posted:I am interested,so I'll look that up tonight. Thanks! No joke, seems like a great idea. But the stupid optimizer in me immediately tried to figure out if there was any benefit to me diverting a tiny amount into it myself if it is offered in Texas. Then I realized that I'd be basically be competing directly with poorer people for prizes (moreso than rewards cards) and disincentivizing their betterment of habits, and I felt bad. I'll stick to buying two lottery tickets per month, instead.
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Sep 1, 2014 21:03
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Olive Branch posted:This is going to sound like a series of stupid questions but this is the newbie thread, so...
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Sep 1, 2014 22:14
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Olive Branch posted:Reposting this from last page, any Canadian goon investors got some advice regarding this situation? Check the Canadian finance thread, it's full of Canadian finance spergs. http://forums.somethingawful.com/showthread.php?threadid=3569987&perpage=40
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Sep 1, 2014 22:55
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FrozenVent posted:Check the Canadian finance thread, it's full of Canadian finance spergs.
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Sep 1, 2014 23:30
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SpelledBackwards posted:Then I realized that I'd be basically be competing directly with poorer people for prizes (moreso than rewards cards) and disincentivizing their betterment of habits, and I felt bad. I'll stick to buying two lottery tickets per month, instead. Then again the more people who use it the more press it will get and more likely it will be around for a while.
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Sep 2, 2014 01:05
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Is there any downside using my schwab brokerage account as a savings account? I've been keeping a couple thousand there as cash for the last year or so and every few months I'll get pretty large increase (dividends? I don't know what it's from). It went up by 2.65% today. A few months ago it went up by ~1.5%. I keep most of my savings in a discover bank account which gets 0.85%. The schwab 'cash and money market fund' (which is just cash in the brokerage) is killing any online savings account return.
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Sep 2, 2014 19:50
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It must be dividends from your other investments that are getting credited to the cash account instead of reinvested. slap me silly fucked around with this message at 19:55 on Sep 2, 2014 |
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Sep 2, 2014 19:53
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I don't have any other investments in the schwab account. Just cash. I have a vanguard account and a separate 401k and those are all reinvested.
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Sep 2, 2014 20:00
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Weird. But I feel pretty confident in guessing that you're missing something when you seem to be getting 5%+ per year in what is effectively a cash type account.
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Sep 2, 2014 20:07
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slap me silly posted:Weird. But I feel pretty confident in guessing that you're missing something when you seem to be getting 5%+ per year in what is effectively a cash type account. Agreed. We have money in the same account and get like 0.1%.
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Sep 2, 2014 20:10
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Ok I figured it out. Schwab brokerages aren't a refreshing well of free money. I had set up my amazon seller's account to my brokerage instead of my checking account and never noticed.
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Sep 2, 2014 20:12
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Haha, mystery solved!heyniceperro posted:Schwab brokerages aren't a refreshing well of free money.
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Sep 2, 2014 21:29
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My boss suggested I get a financial adviser to assist with my finances, is that generally a good idea? As a little bit of background I'm 22 making ~50k a year with about 110k in student loans and no other real debt.
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Sep 5, 2014 16:37
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Unless you're making more money than you know what to do with: no. I dunno how much money I'd have to make before I started thinking about doing something other than putting excess into tax-efficient passive investment funds. Even if you're doing "only" 80% of your max returns with self-research, it'll still probably net more than using a personal financial advisor. Your financial goals are (most likely) straightforward right now: 1) Match employer 401k 2) Evaluate real-life upcoming expenses: set up a budget and determine what you have left at the end of the month. Use YNAB, Mint, or another program to ensure you aren't glossing over important things like Car Insurance or what you're REALLY spending on food. 3) Distribute that "what's left" into general ideas: Saving for a down-payment? Making money with your money? Shopping spree? At 50k/yr and 110k debt, you're probably not left with much left over unless you're an extreme thrift, paying next to nothing in rent, and/or have an amazing loan program. If you want to make long-term money you have to think about interest rates on your loans vs (potential, risky) gains in investment vehicles. Once you nail all that down, you shouldn't need much advising; what do you do with an extra ~$200 to ~$900 per month? Save, invest, or spend. Bank, Roth/Loans, or Amazon? e: 110k at the standard 6.8% is $623 in interest per month(!!!). If you aren't on a loan assistance program you need to investigate that first and foremost. That elephant in the room is monstrous. Minimums on that loan are probably in the $1000/mo range which will be roughly 40% of your paycheck. You need to do way better than the minimums (or bank on your future success; get them raises) to have a shot at escaping that debt. DNK fucked around with this message at 17:15 on Sep 5, 2014 |
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Sep 5, 2014 17:04
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Drythe posted:My boss suggested I get a financial adviser to assist with my finances, is that generally a good idea? Generally at your age and income levels, no. The reason being it's far more likely you'll be unwittingly taken advantage of by a bad adviser or not have the money to pay the flat fees for a good adviser. Even relying on recommendations is hard, because the people recommending advisers could also be getting taken advantage of and not know it. Start learning about finances from the OP and the long term investment thread: http://forums.somethingawful.com/showthread.php?threadid=2892928 and in the future when you either know enough to control your own finances or want to pay the premium to have someone else deal with them, you can make an informed decision. The numbers in your situation aren't great, but your situation seems relatively simple and you can get a grasp on what to do very quickly. Hopefully, with student loans in the $100k+ area, you are doing something like a residency right now and your earnings potential is about to skyrocket in a few years. For now, a basic plan is going to look something like this: 0. Track your expenses (mint.com is great for this) and cut them to the bare bones. You're in a debt crisis and if the loans were dischargeable, bankruptcy would be a no-brainer. 1. Contribute to your 401k up to employer match (50%-100% instant ROI) 2. Use all remaining money to pay down any student loans charging over ~5% interest after paying a minimum on other loans. 3. Max out a Roth IRA with vanguard (this probably won't happen for several years with your loan amounts) 4. Pay down other student loans.
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Sep 5, 2014 17:08
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Sounds like a plan. I work for a state agency so we pay into a 401k-type retirement already, so I'm unsure how that changes things. I also looked into the public service loan forgiveness and hopefully that will be able to assist as well. My earning potential is at a fixed rate that goes up every year. At 10 years of service my income would be about 73k plus whatever longevity at my current position. edit: I forgot to look at my updated amount, I actually have 74k in student loans. Not much better, but less. Drythe fucked around with this message at 18:28 on Sep 5, 2014 |
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Sep 5, 2014 18:01
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Drythe posted:edit: I forgot to look at my updated amount, I actually have 74k in student loans. Not much better, but less. How did you not know how much in student loans you have? 
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Sep 5, 2014 20:04
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I forgot the amount I used was including this year, but since I was hired full time I didn't attend and didn't take them.
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Sep 5, 2014 20:21
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Drythe posted:edit: I forgot to look at my updated amount, I actually have 74k in student loans. Not much better, but less. I know that those numbers can turn into a BZZZZZZZZZZZZZZ fuzz-noise since "they're so big who needs to think about that?", but I urge you to reconsider your statement of "not that much better". The number you first quoted, 110k, was 150% of your actual amount. $46,000 is an enormous amount. In terms of money that is generating (negative) interest, it's a MONUMENTALLY HUGE AMOUNT!!!!. $46,000 of additional debt is, like, years of your life.
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Sep 5, 2014 20:26
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DNK posted:I know that those numbers can turn into a BZZZZZZZZZZZZZZ fuzz-noise since "they're so big who needs to think about that?", but I urge you to reconsider your statement of "not that much better". I'm not disagreeing with you, but are you MMM? Because this reads exactly like MMM.
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Sep 5, 2014 20:27
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Naw, but I can imagine my feeling about finances being easily transferable. Also I edited out some of the, uh, preachy parts because I thought it was rude  you quoted me too early. aside from me being bad at simple addition and tacking on 10k to the number.
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Sep 5, 2014 20:29
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Nail Rat posted:I'm not disagreeing with you, but are you MMM? Because this reads exactly like MMM. Probably reads a lot of MMM
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Sep 5, 2014 20:36
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DNK posted:$36,000 Drythe posted:I forgot the amount I used was including this year, but since I was hired full time I didn't attend and didn't take them. Whoa. So you have $74,000 in student loan debt, have one or more years remaining to get your degree and are foregoing those to make $50,000 a year? What did you go to school for?
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Sep 6, 2014 05:34
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Question about emergency funds. We are debt free minus a low-interest car payment, and were recently able to stash away 6 months worth of emergency funds. Our 6 month emergency fund is sizeable since we live in the Bay Area, and it seems silly to put >25k into a 1% interest savings account. I know emergency funds need to be liquid, but in our situation does it make sense to put half of it into some low-risk CDs or something? Adding to the earlier question about financial advisors, I think we're in a situation where it makes sense to start looking for one. What should we be looking for? We've found a flat rate firm that doesn't directly manage accounts (just advises and helps with financial planning) and at $1k/year for 8-10 meetings (drops to $600/year after the first year), it seems pretty reasonable.
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Sep 9, 2014 18:25
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Unless you do like a 5 year CD, it's hard to beat 1%. If you're already getting 1% in a liquid fund, there's no reason to go with a short-term CD. Unless you're like, really financially illiterate, I'd have a hard time justifying paying $1k a year to a financial advisor. Either they (a) logically cannot beat the market on an expected, risk-adjusted basis or (b) overwhelmingly fail to beat the market on a risk-adjusted basis. How badly would you manage your own funds? Would paying $1k a year wipe out the marginal gains you'd receive from having better financial management? People tend to underestimate the compounding effect that fees have on long-term returns. http://www.investorschronicle.co.uk/2014/01/07/comment/chris-dillow/buying-bad-funds-YOHFTTYZSW8mjKnTBHfSxL/article.html posh spaz fucked around with this message at 19:59 on Sep 10, 2014 |
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Sep 9, 2014 19:59
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The rate seems good but 8-10 meetings per year is a lot. If you have some ongoing stuff, that could make sense; if you just need to solve one or two problems to set yourself up for the next 5 years it is too much.
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Sep 9, 2014 20:29
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After nearly 3 years of rebuilding my finances, tomorrow I will pay off my previously maxed out $8200 credit card, and for the first time in my life will have a positive net worth. I have repaired my credit from the low 500s to mid 660. Unfortunately, my car died this morning, and I got sued by a CA for $3500 for alleged medical debt  I am considering my options. I have a promotional offer for a 0% Balance Transfer for 12 months, with a 4% up-front fee, on the credit card with a (now) $10,000 credit limit. I think I may have to dip into this  I should be able to pay it off within 12 months however before it goes to standard BT rates (like 21%).The collection agency suing me is relentless, constantly filing all kinds of legal motions I do not understand and have to defend myself from. They actually have no evidence of Standing, any bill of sale, etc, but I feel I will likely lose the case due to the way they are fighting me. My car overheated, and it would cost >$1500 to repair which is about what it is worth. My surplus income is about $1200/month. 1. If I continue fighting the legal action against me, and lose, I will end up with a $3500+ judgment against me. I would pay this off immediately using a loan from my CC, but what kind of credit impact would a Judgment (paid) have? Would it destroy my credit rating for another 3+ years? Would it be better to settle-in-full with them right now and not risk a judgment, if I am looking to buying a house in the next year or two? The reason I do NOT want to settle is because they have not provided any evidence that they bought this debt, or are assigned this debt, and the debt is actually listed with an entirely different collection agency, as it has passed through many JDBs. I feel it is possible I can be sued again for the same debt by a different agency, if it turns out this one has no standing to collect it. 2. Car. Most likely I will need to buy one. My options are to get another ~$3000 car (such as a Honda or Toyota) and hope it is reliable, or to use $3000-4000 toward a Down payment on a newer car. I feel some old $3000 Civic is the better option, since my car insurance rate would skyrocket if I had to get full coverage. Plus I don't really want (but can afford) a car payment. On the other hand, I would really like a car more likely to last 5+ years. And honestly I miss driving a nicer car with things like air conditioning. 3. Taking out an extra $2000, to put it into an IRA that counts toward Y2014. Yes it may not be the best time to invest, however it would increase my tax return by $500 ($300 for 15% taxation, $200 for Savers Credit which I should qualify for, being married). I feel 4% interest for a 25% return would make sense.
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Sep 11, 2014 19:28
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Well you're probably going to want to lawyer up as soon as you can, if you qualify look into free legal aid in your area, cause if they're doing that you probably need some assistance.
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Sep 11, 2014 20:51
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Meta Ridley posted:After nearly 3 years of rebuilding my finances, tomorrow I will pay off my previously maxed out $8200 credit card, and for the first time in my life will have a positive net worth. I have repaired my credit from the low 500s to mid 660. You can't find a $3k car with AC?? Look harder?
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Sep 11, 2014 21:47
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I pulled my credit report for the first time, and one of my parents' accounts showed up on it. I was an authorized user on one of their credit cards when I was in high school (ten years ago) and I suppose they never technically removed me from the account? Can that affect me, and if so, would it be a positive or negative? They carry a large balance on it, but are excellent with payments.
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Sep 11, 2014 22:01
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disheveled posted:I pulled my credit report for the first time, and one of my parents' accounts showed up on it. I was an authorized user on one of their credit cards when I was in high school (ten years ago) and I suppose they never technically removed me from the account? Can that affect me, and if so, would it be a positive or negative? They carry a large balance on it, but are excellent with payments. Probably worth trying to get off of it. If they die you could potentially end up being liable for their debt if your name is on it. Low probability, but can be really awful if you are ever put in that position. Also, it would be a bummer if their medical emergency turned into a debt emergency that then became your debt emergency.
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Sep 11, 2014 22:14
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Meta Ridley posted:After nearly 3 years of rebuilding my finances, tomorrow I will pay off my previously maxed out $8200 credit card, and for the first time in my life will have a positive net worth. I have repaired my credit from the low 500s to mid 660. If you truly have $1200 surplus income every month, why did it take 3 years to pay off $8200? Is that a new thing? If not, get a budget, track your expenses to figure out where that money is going. If it's a new thing, and sustainable, all of these problems will be easy to take care of. 1. Show up to your court date, you will probably get the case dismissed. If not, it's not the end of the world. There's a debt collection thread around somewhere, look there for some good advice. 2. Here's the car buying advice thread. Honda/Toyota make good cars in the 3-5k range, but everyone knows that, so you pay more for the name. Ask there for some alternate model suggestions (hint, look at DOHC Focuses). 3. Don't invest money from your credit card. Things can go wrong too easily. It sucks losing out on that credit, but you'll be able to invest more when you are actually investing your own money. If you absolutely must do this, it would be better to invest your surplus $1200/mo, and just pay a couple of minimum payments on your 0% card, then pay the card off later, but even that opens up a lot of possibilities for things to go wrong. Grumpwagon fucked around with this message at 12:28 on Sep 12, 2014 |
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Sep 12, 2014 12:23
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I need some help figuring out how to calculate the opportunity cost of student teaching. I'll be graduating next July, and I'll have the option of either student teaching or going straight into teaching as the teacher of record with full benefits. The advantage of student teaching is that it'll help ease me into teaching rather than leaping right into it, which, since I have anxiety issues, is a pretty large benefit. When I graduate next July, if my finances go as planned, I should have around 15K in savings. You can't work any other job when you're a student teacher, and student teaching is unpaid. So if I live off my savings for six months to student teach, I'll be down to 7,000, so over half my savings will have gone into student teaching. If I go straight into teaching with my Master's in the district I plan to teach in, I'll make 45,338 in gross. Once taxes and my pension contribution are taken out, I'll have around 37,344 for the year. How do I add all those numbers together to get the opportunity cost? You're supposed to add in a theoretical value for benefits (health insurance, etc.), if I remember correctly? And once I calculate the opportunity cost (if it's as high as I think it'll be), will it be blindingly stupid of me to choose to student teach?
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Sep 12, 2014 21:21
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Pinball posted:And once I calculate the opportunity cost (if it's as high as I think it'll be), will it be blindingly stupid of me to choose to student teach? Yes. My wife just finished student teaching, and depending on who your supervising teacher is, you could be doing up to 100% of the work of a regular first-year teacher. So if you have the option, would you rather do 100% of the job and get paid for it, or do (best case) 75% of the job, and not get paid?
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Sep 12, 2014 21:37
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If you can just go teach and make money why wouldn't you (anxiety issues and all). This is what most people do after their degree.
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Sep 12, 2014 21:43
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spwrozek posted:If you can just go teach and make money why wouldn't you (anxiety issues and all). This is what most people do after their degree. Yes, get some Xanax or whatever your psychiatrist recommends and get the job. Student teaching for a year will set you back 1-4 years depending on how you crunch the numbers.
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Sep 12, 2014 21:51
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