Higgy posted:

Later in the thread we find that poster has 8 siblings between him and his wife with something loving retarded like over 20 nieces and nephews that they feel all need presents and summer camp on their dime. This is, to quote reddit OP, non-negotiable.

Centripetal Horse posted:

That is one of my favorite recurring bits in the Reddit (and BFC) financial advice threads. "Here's an extensive list of unnecessary expenses that are clearly the primary reason for my current financial woes. These items are non-negotiable. Now, tell me how to fix this mess."

I wonder how many of those posts are actually from people in great financial shape, who stay in great financial shape by trolling Reddit instead of going to movies or whatever. I picture an attractive family sitting around the computer. Mom and dad are slightly older than the parents of their children's peers, because they got their ducks in a row before starting a family. There's an older daughter, maybe thirteen or fourteen years old, and a younger brother and sister. The little boy suggests telling Reddit that the family spends thousands of dollars on Christmas presents and summer camps for relatives they only see once per year. The little girl pipes up with, "Oh! Daddy, daddy... remember tell them the summer camps are non-negotiable!" Dad smiles and pulls the younger daughter closer, planting a kiss on her head. Mom and the son laugh as the older daughter begins to type.

Devian666 posted:

Here's a local story of bad with money.
http://www.stuff.co.nz/national/crime/66259690/mark-lundy-murder-retrial-focus-on-vineyard-plans


Business venture not working out and in debt why no go out and try to raise $3.8m from investors. By land without conditioning the purchase on finance being available. Then kill your family to receive $75k towards a mortgage.

People who are bad with money and dig the hole deeper may kill you if they'll collect the life insurance.

canyoneer posted:

Here's a new one.

http://www.reddit.com/r/personalfinance/comments/2vzv33/my_income_doesnt_cover_the_bills_sell_stock_to/


So, $160k mortgage on a house that needs "substantial repairs" on $50k income
Late 40's, and their only savings is APPLE STOCK

How would you feel having $800k tied up in a single stock (and having that be pretty much your only investment)?

cowofwar posted:

There are so, so, so many people that dump all their money in to gifts for their families. It's nice, but it's often poo poo that their families neither want nor need.

Centripetal Horse posted:

That is one of my favorite recurring bits in the Reddit (and BFC) financial advice threads. "Here's an extensive list of unnecessary expenses that are clearly the primary reason for my current financial woes. These items are non-negotiable. Now, tell me how to fix this mess."

Devian666 posted:

Why do people want luxury cars so young? He says he's been driving a german luxury car for 5 years (when he was 19).

Volmarias posted:

Of course, sometimes they are in fact non-negotiable.

quote:

We have too much overhead at home between mortgage, and two financed vehicles. In all our monthly expenditures total upwards of $4000

Volmarias posted:

Of course, sometimes they are in fact non-negotiable.

cowofwar posted:

There are so, so, so many people that dump all their money in to gifts for their families. It's nice, but it's often poo poo that their families neither want nor need.

TLG James posted:

As I get older, I almost hate gifts from my siblings. Here is ~30 dollar gift, thank you for your ~30 dollar gift.

melon cat posted:

Heh, I agree completely. And in many cases, nobody's breaking even. Because you'll get a $30 gift card for a retailer/restaurant you don't go to, and you might buy them something similar. In the end, everyone's wasting money. It's part of the reason why I went the extra mile and convinced my family (despite their protests) to do an annual Secret Santa instead of getting 15 thoughtless gifts that will only end up being re-gifted, or getting sold at a garage sale. The amount of money (and time spent shopping) for Christmas gifts was incredible.

melon cat posted:

Not even joking or being facetious, by the way. There are so many people who are just so status-obsessed that they're willing to go up their eyeballs in debt just trying to look wealthy. I know people who recently got jobs as bank tellers (which pays $17 an hour, and usually doesn't get full-time ours or a benefits package). Then think that they're hot-shot Wall Street Investment Bankers just because they work at a bank. So they lease/finance an Audi or Bimmer, then show up to work and park within full view of their coworkers with a look on their face.

Aristotle Animes posted:

Let's be honest here. Tell me a little part of you doesn't mean murder after you read an awful financial post and you start off a reply with "get rid of your spouse!"

I predict one day BFC will come into its own when yet another SA murder can be traced back to flippant internet comments made right here. Maybe the worse one yet when we explain how bad the children and pets are for your finances.

*shudder*

Haifisch posted:

Thinking that menstrual products are a luxury. I feel incredibly sorry for any woman this sadsack ends up with.

Puffins posted:

So... am I bad with money for considering this?

I'm currently a student living on studentloans and financial aid (in Sweden, so no insane costs - for four years of school my total debt will be around $30k, at 1% interest). I have an "emergency" fund that covers my expenses during summer where I do not receive any financial aid and my plan is to find work - the problem is that pretty much every job that is related to my field requires a drivers liscense, something I currently do not have. If I do get it - my workchances will improve drastically (or be almost guaranteed, there's a serious shortage in my field).

My dilemma is that as a student I can get a loan with my bank (a special student only loan) for $2000, to be paid back in 2 years at 6.75%. This will cover both lessons, and all costs associated with taking the liscense here in Sweden.

The monthly cost will land at around $90, or about 10% of my income every month - or 1/3 of the money left over I have after normal saving and living costs.

So - is it worth it or am I being dumb?

Puffins posted:

So... am I bad with money for considering this?

I'm currently a student living on studentloans and financial aid (in Sweden, so no insane costs - for four years of school my total debt will be around $30k, at 1% interest). I have an "emergency" fund that covers my expenses during summer where I do not receive any financial aid and my plan is to find work - the problem is that pretty much every job that is related to my field requires a drivers liscense, something I currently do not have. If I do get it - my workchances will improve drastically (or be almost guaranteed, there's a serious shortage in my field).

My dilemma is that as a student I can get a loan with my bank (a special student only loan) for $2000, to be paid back in 2 years at 6.75%. This will cover both lessons, and all costs associated with taking the liscense here in Sweden.

The monthly cost will land at around $90, or about 10% of my income every month - or 1/3 of the money left over I have after normal saving and living costs.

So - is it worth it or am I being dumb?

Volmarias posted:

It's not just that he thinks that they're a luxury, it's that he doesn't understand what mensuration is. He thinks that she needs them because she's promiscuous, not because it is a thing that happens whether she wants it or not, so he's tut tutting her for having a uterus.

TLG James posted:

As I get older, I almost hate gifts from my siblings. Here is ~30 dollar gift, thank you for your ~30 dollar gift.

canyoneer posted:

My sister participated in her boyfriend's family's gift exchange last Christmas. Here are the rules:

Gift cards only.
$25 value each.
Provide two gift cards.
Everyone "steals" gift cards 2 or 3 times, until everyone ends up with 2 gift cards of $25 value

It's the stupidest thing. Let's all turn $50 of our universal gift cards (cash) into $50 of stuff that can only be spent in one place. Don't buy them as a regular kind of gift with someone specific in mind or any special feelings either, because everyone will swap them around.

A touching holiday tradition.

Comrade Flynn posted:

It's me I am bad with money I bought this.

Comrade Flynn posted:

It's me I am bad with money I bought this.

Devor posted:

I think you misunderstood his post. It is a sort of a variant of a "humble brag" wherein he pretends to be ashamed of an act of largesse, and is ostensibly posted here for the purposes of us castigating him for a wasteful expenditure. However, he is in fact bragging about said dinner.

pig slut lisa posted:

melon cat posted:

Ha! And that whole thing sounds like a joke, but there really are people who believe that.

For example, an acquaintance of mine lost a well-paying job for some really inappropriate workplace behaviour.

Reddit posted:

Hi, my sister and I are college students and our younger sister just recently graduated high school. Were at a loss at what to do as we know nothing of finances-- our mother always handled it. Both of my sisters both received calls that they are owed money o the Debt Collector and, through snooping, we discovered credit cards under our names in our mother's purse.
A bit of background: our mother is consistently late on payments, bills, rent, everything. My sister and I just recently opened personal bank accounts so we could deposit the refund from scholarships because we were tired of our mother spending it all and, thus, not allowing us to be able to pay for our housing (as we live away from home for school).
What can we do? What is there to do? How can we ensure this doesn't happen again?

Puffins posted:

So... am I bad with money for considering this?

I'm currently a student living on studentloans and financial aid (in Sweden, so no insane costs - for four years of school my total debt will be around $30k, at 1% interest). I have an "emergency" fund that covers my expenses during summer where I do not receive any financial aid and my plan is to find work - the problem is that pretty much every job that is related to my field requires a drivers liscense, something I currently do not have. If I do get it - my workchances will improve drastically (or be almost guaranteed, there's a serious shortage in my field).

My dilemma is that as a student I can get a loan with my bank (a special student only loan) for $2000, to be paid back in 2 years at 6.75%. This will cover both lessons, and all costs associated with taking the liscense here in Sweden.

The monthly cost will land at around $90, or about 10% of my income every month - or 1/3 of the money left over I have after normal saving and living costs.

So - is it worth it or am I being dumb?

Comrade Flynn posted:

It's me I am bad with money I bought this.

Wife posted:

Stock Market - should I be concerned?

DH apparently had an interesting conversation with his boss today (who seems to be successful and financially savvy). He told DH that we should definitely sell when the market is going down and then get back in on the market rebound.

We have been much the types to hold and just keep investing no matter what is going on in the market (and we really don't pay too much attention to the market in general).

Now my husband is wondering if we shouldn't sell as he thinks the market will be going down again soon(ish). He did lose half the value of his 401k in the last recession and I think it is only now that it has just about recovered. His boss was telling him how much better off we would be if we had of gotten out before the big crash, held our cash and then gotten back in in the upswing (even if it wasn't "timed" exactly).

I'm sure this has been discussed on the forums and I would welcome any links. I have read the JCollins stock series and felt the just stay in no matter what approach was the best.

DH's boss sent him this chart as an illustration of how much better off it is to sell when things start going down.

http://finance.yahoo.com/echarts?s=%5EGSPC+Interactive#%7B%22range%22%3A%22max%22%2C%22scale%22%3A%22linear%22%7D

Thoughts?

Edited to add: His boss must have been quite convincing because my husband is really feeling this is what we should do. (That is my concern part).

Wife posted:

OP here - great news!!! My husband has returned to his senses (his boss should really go into sales!). He read this thread this morning and is back on track with our original long term financial plan (which most definitely does not involve selling our investments right now).

We are going to sell some of his company stock because we are holding too much and pay some toward our house. We both feel comfortable with this.

Thank you all so very very much. All of your input has really been invaluable.

Market Timing Genius posted:

My 2 cents: tell (Command) your husband NOT to do this
The only time you sell when price is LOW is if you think the entire market is going to crash like 2008. Even then you have to do this early.

In theory, his boss is right. Hypothetical example, XYZ stock at 200. Going to 190---180---...150...---then rebounds to 190-200s again in a few weeks. If he sells at 180s and then buy those back again at 150-160s, he may have net profit even though he sold at loss. The problems are:
1) commissions - will eat up the "potential" profits
2) most of the "mini crashes" happens quickly and also recovers quickly. It is hard to find the "bottom."
3) Just because the entire market rebounds does not mean XYZ stock will rebound at the same time or to same degree.
4) % down does not equal % up. A stock that lost 10% will need to rise more than 10% to break even

quote:

Quite possibly the worst advice I've ever seen on this forum.

Market Timing Genius posted:

@ Dodge: well, sweetheart, don't do anything to your portfolio the next time market crashes.

quote:

Now that actually is very good advice!

One might improve on it a bit by rebalancing instead of holding, but simply holding beats selling once the market has crashed.

Of course if one is fortunate to have foresight glasses, selling just before the market crashes is a great strategy. Alas, my glasses work only in hindsight....

Market Timing Genius posted:

@waltworks: I am going to ignore you. Completely.
@Terrestrial: Please do not try selective reading. It makes you sound unintelligent.

I said "The only time you sell when price is LOW is if you think the entire market is going to crash like 2008. Even then you have to do this early. " Did you miss the entire second part which is crucial?

Yes, when the entire market went down by 15%, it would have been smarter to sell off stocks and then wait until market recovers on solid footing. (Please also try to comprehend in such a severe financial crash, a lot of companies will go bankrupt.)
The trick is to do early. If you wait when the stocks were down by 30%, it's already too late.

Market Timing Genius posted:

@NoraLenderbee @Terrestrial

Think of this as a loss minimization strategy. Of course, when the market is good like right now, you are not going to use it.
But if the WHOLE market (not just specific sectors) does drop in a steady fashion over several weeks, pretty reasonable to say its a financial crash rather than a nuisance pullback. Why 15-20%? Because smaller percentage would include volatility and pullbacks.
Why not 30, 40% 50%, etc? Because You can't predict the bottom ( see below) and it might be already too late.

How do you know when it bottomed out? You can't. You just wait (at least 3+ months) and see if the whole market is rising in a CONSISTENT fashion. (Take weekly prices or SMA50/200 to see the larger trend.)

To those with reading disability: I am NOT suggesting you buy high and sell low. I am suggesting a road plan when crisis strikes.

Btw, did everyone miss the part that I actually spoke against NewPerspective's husband's boss' plan and gave 4 good reasons why that would be idiotic?

Market Timing Genius posted:

@Terrestrial: You know who didn't lose anything in the financial collapse? People who held cash. If you are going to go base your policy by anecdote, then it's better to hold cash!

almost a good example - 16% drop over 1 month. (btw, problem with this example is that the decline is too rapid.) Now, let's try this over long horizon. After all, why bother inferring to all the fancy studies to prove your point when you use only one to disprove mine? It's all about averages, isn't it? Pick a random 10-15 year time period and see which loss prevention method is better.

That being said, I do agree that "hold and it will recover" method is a sound advice even though it may not the best advice. On AVERAGE, 15-20% drop over 6-8 weeks is a harbinger of more bad things to come. (Use 20% and 8 weeks to increase the sensitivity if you are risk adverse.) The trick is to separate fear (pullback) from real disaster (financial crash). Let's not forget that you have to take action VERY quickly. Once the decline is further (e.g. to 30%) then you have no choice but to hold and pray.

Lets end this in a civil fashion. Lets all just agree to disagree and agree that NewPerspective's husband's boss gave the wrong advice.

HonorableTB posted:

It came from /r/personalfinance:


http://www.reddit.com/r/personalfinance/comments/2w2qhy/i_just_found_out_my_mom_has_been_taking_out/

spinst posted:

These ones just make me sad.

Whose parents are that awful?

Mocking Bird posted:

Some of us come from "humbler" backgrounds than others. Please see the "Crazy Parents" megathread in e/n - nothing is harder than a sever with unhealthy parents.

Finances are tough, because they are something that some people feel no guilt about loving you over for - doesn't love matter more? Parents especially have good rationalizations: "I put food on the table and a roof over your head right?" "I spent xxxx amount taking care of you all these years, this is the least you could do for me" "you don't want us to be out in the cold do you." And that's for the ones that bother to even talk to you about it rather than have you find out when you apply for a student loan a few years later.

It's brutal and miserable and hopefully some families get past it at moments like these, where the children make a choice to take their financial lives into their own hands.

Comrade Flynn posted:

It's me I am bad with money I bought this.