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RagnarokZ posted:Great start to your adult life kid, mind you, this was before the Crisis, so the bank didn't even blink or stop her from doing this. Good times. Is the Crisis what Demarkians call the 2007 financial meltdown or did something else happen? And did it involve Legos?
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Oct 30, 2015 11:19
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Krispy Kareem posted:Is the Crisis what Demarkians call the 2007 financial meltdown or did something else happen? And did it involve Legos? The demonym is "Dane". Yes, that's what we call the GFC, except it didn't really take hold until around 2008-2009 here. And, no, sadly, it did not involve legos.
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Oct 30, 2015 11:36
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Krispy Kareem posted:Demarkians What
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Oct 30, 2015 16:16
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Krispy Kareem posted:Is the Crisis what Demarkians call the 2007 financial meltdown or did something else happen? And did it involve Legos? They are of course referring to the Crisis on Infinite Earths.
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Oct 31, 2015 19:54
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BWM: People telling myths about credit scores. Such as you have to leave a bit of the balance not paid so that it builds your credit score. GWM: Credit Bureaus obfuscating credit scores, so that people believe and perpetuate myths.
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Nov 1, 2015 15:02
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Humphrey Appleby posted:BWM: People telling myths about credit scores. Such as you have to leave a bit of the balance not paid so that it builds your credit score. The best part of this is people who are in financial deep poo poo and they're super worried about their credit score "I just got a huge pay cut and now I don't have money to meet my overextended obligations. I can't pay rent or buy food. Also I'm worried about the effect on my  Credit Score"
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Nov 1, 2015 22:44
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Uncle Enzo posted:The best part of this is people who are in financial deep poo poo and they're super worried about their credit score It became rather obvious during the subprime collapse in 2007. People would rather abandon their home and mortgage (which they had no equity in) but would keep their credit card payments going. If you are really poor your credit score is all you have. For content an article on "stuff" the accumulation of it and that people buy stuff and are most likely underinsured for all the things they have. There's even reference to recreational shopping. quote:That possessions creep is something households need to be mindful of to avoid ending up with lots of stuff and very little money. http://www.stuff.co.nz/business/money/73458100/owning-stuff-is-like-volunteering-for-extra-tax
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Nov 1, 2015 23:22
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Uncle Enzo posted:The best part of this is people who are in financial deep poo poo and they're super worried about their credit score You have a point about missing the forest for the trees, but that poo poo makes everything else you deal with even more expensive. Your car insurance rates rise, any other loans or credit lines have their interest rates raised, it's harder to get even a checking account. Credit ratings are bullshit. I mean Jesus, in the US, employers have the right to ask for your report. Sure, legally you can refuse, and they can legally not hire you. Then there's this disgusting practice of new jobs looking at your old pay history to determine what to pay you at a different company for a different job. Obviously the smart thing to do is not to get into financial trouble in the first place. But that's a little easier said than done to start, and even someone who corrects bad habits is going to have a very difficult time getting out of the hole once they get in.
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Nov 1, 2015 23:26
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Devian666 posted:It became rather obvious during the subprime collapse in 2007. People would rather abandon their home and mortgage (which they had no equity in) but would keep their credit card payments going. If you are really poor your credit score is all you have. You... want to borrow more money after losing your house? Because if I lose the roof over my head, the last thing I'd want is some new debt. Great linked article, by the way. It's really strange that people measure financial well-being by how much junk they have in their house. An acquaintance of ours recently commented on how "empty" my house looked (as if it was a bad thing). And I've helped out friends with selling their leftover junk on Craigslist, garage sales, etc and it's crazy just how worthless most of the stuff in your basement really is. You'd be lucky to recoup 40% back on what you spent on most of your stuff. And what's scarier is that a lot of people think that the junk they've been storing is enough to fund their retirement because they watch Storage Wars and think they're arbitrage professionals. melon cat fucked around with this message at 23:53 on Nov 1, 2015 |
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Nov 1, 2015 23:43
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It can be pretty messed up since a lot of apartment rental markets require credit checks and you have a way worse selection of places (that you have to pay a premium on) if your score is bad. So yeah I'd be pretty concerned about my credit score.
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Nov 1, 2015 23:54
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Humphrey Appleby posted:BWM: People telling myths about credit scores. Such as you have to leave a bit of the balance not paid so that it builds your credit score. If you have no debt, and want to micromanage you credit score, leaving a balance between 2-9% utilization on one card will absolutely raise your score, as well as having an installment loan with less than 50% of the balance left. Obviously none of this stuff matters if you are paying late or maxing out cards, but that's not who that advice is for. It is not a myth. Also, we're talking about letting balances report to the credit bureaus, not leaving balances on and paying interest on things. No one would ever recommend that. But if you're trying to shave a point off a mortgage and you're near a borderline, micromanaging your balance reporting will have a positive effect. It's not difficult to test for yourself, get yourself a subscription to something that updates your FICO daily, like credit check total, and mess with your reported balances for a couple of months.
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Nov 1, 2015 23:57
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NancyPants posted:You have a point about missing the forest for the trees, but that poo poo makes everything else you deal with even more expensive. Your car insurance rates rise, any other loans or credit lines have their interest rates raised, it's harder to get even a checking account. Credit ratings are bullshit. I mean Jesus, in the US, employers have the right to ask for your report. Sure, legally you can refuse, and they can legally not hire you. Then there's this disgusting practice of new jobs looking at your old pay history to determine what to pay you at a different company for a different job. Yeah, exactly. Worrying about credit score is not BWM at all. Credit scores affect a poo poo ton of stuff. Credit worthiness determines the rates for most payments, and can even have an impact on the person's career.
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Nov 2, 2015 01:09
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Devian666 posted:http://www.stuff.co.nz/business/money/73458100/owning-stuff-is-like-volunteering-for-extra-tax
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Nov 2, 2015 01:27
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enraged_camel posted:Yeah, exactly. Worrying about credit score is not BWM at all. Credit scores affect a poo poo ton of stuff. Credit worthiness determines the rates for most payments, and can even have an impact on the person's career. Actually, a lot of lenders (I'm talking from a Canadian perspective, by the way. Things might differ in your jurisdiction) consider the actual beacon score to be a very small part of the lending equation when determining the qualifying. More important factors include capacity, existing savings, and even the applicant's reputation in their community. Because if that person is in a position of influence, financial institutions might give them a discounted interest rate to help anchor down future business. The reality is that lending solely on the basis of a beacon score is a recipe for disaster, because there's a lot of people with terrible finances who manage to maintain a somewhat-decent score. BadSamaritan posted:It can be pretty messed up since a lot of apartment rental markets require credit checks and you have a way worse selection of places (that you have to pay a premium on) if your score is bad. melon cat fucked around with this message at 01:50 on Nov 2, 2015 |
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Nov 2, 2015 01:43
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hanales posted:If you have no debt, and want to micromanage you credit score, leaving a balance between 2-9% utilization on one card will absolutely raise your score, as well as having an installment loan with less than 50% of the balance left. I realize my statement was a bit vague. In this scenario the person was told they would pay 90% of the balance and leave the rest unpaid so they have debt which gains interest. Instead of paying it in full every month.
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Nov 2, 2015 02:17
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Humphrey Appleby posted:I realize my statement was a bit vague. In this scenario the person was told they would pay 90% of the balance and leave the rest unpaid so they have debt which gains interest. Instead of paying it in full every month. Ahh ok, yes that's bad/incomplete advice.
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Nov 2, 2015 02:42
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Jeffrey of YOSPOS posted:I'm sure this is a popular topic for the writers at stuff.co.nz. I was amused by stuff.co.nz saying stuff is bad and a tax on you. It's quite true as it's a terrible local news site but I still look at it everyday. melon cat posted:Great linked article, by the way. It's really strange that people measure financial well-being by how much junk they have in their house. An acquaintance of ours recently commented on how "empty" my house looked (as if it was a bad thing). And I've helped out friends with selling their leftover junk on Craigslist, garage sales, etc and it's crazy just how worthless most of the stuff in your basement really is. You'd be lucky to recoup 40% back on what you spent on most of your stuff. And what's scarier is that a lot of people think that the junk they've been storing is enough to fund their retirement because they watch Storage Wars and think they're arbitrage professionals. Moving into a house was something else. I needed to buy furniture, fridge, washing machine and a new TV (well I didn't but a 32" tv is too small for a large lounge). Other than occasional gardening tools or supplies I've stopped buying stuff. All the boxes of things I've been hauling around I've been getting into to see if I want to keep things. Going through my old RPG books and wargames has provided a bit of entertainment. You don't need to buy new stuff to be entertained, I'm getting fun out of stuff I bought in the 80s. Devian666 fucked around with this message at 03:03 on Nov 2, 2015 |
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Nov 2, 2015 02:58
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NancyPants posted:You have a point about missing the forest for the trees, but that poo poo makes everything else you deal with even more expensive. Your car insurance rates rise, any other loans or credit lines have their interest rates raised, it's harder to get even a checking account. Credit ratings are bullshit. I mean Jesus, in the US, employers have the right to ask for your report. Sure, legally you can refuse, and they can legally not hire you. Then there's this disgusting practice of new jobs looking at your old pay history to determine what to pay you at a different company for a different job. Credit scores have a good amount of rigor behind them and tend to correlate with a lot of other aspects of generally having one's life in order. It's well known in actuarial circles that credit score is strongly predictive of future loss claims: https://www.casact.org/pubs/forum/03wforum/03wf113.pdf https://repositories.lib.utexas.edu/bitstream/handle/2152/14798/bbr-2003-credit-and-insurance-losses.pdf?sequence=5 https://www.progressive.com/content/PDF/shop/EPIC-CreditScores.pdf
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Nov 2, 2015 05:16
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Powerlurker posted:Credit scores have a good amount of rigor behind them and tend to correlate with a lot of other aspects of generally having one's life in order. It's well known in actuarial circles that credit score is strongly predictive of future loss claims: https://www.casact.org/pubs/forum/03wforum/03wf113.pdf I amend my statement. Everything in your life being dictated by your credit report is bullshit.
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Nov 2, 2015 06:24
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NancyPants posted:I amend my statement. Everything in your life being dictated by your credit report is bullshit. If you somehow artificially restrict the use of credit scores, which are powerful predictors and allow financial companies to accurately price risk, then everyone else with good credit has to subsidize the uncertainty of bad credit with higher interest rates. No thanks.
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Nov 2, 2015 18:50
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Let he who has not externalities cast the first 'I don't want to subsidize them' stone
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Nov 2, 2015 19:16
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My dad used to complain about the lack of trust in banking. That no one ever sealed the deal with a handshake anymore. That a man's word was his bond. My dad also declared bankruptcy multiple times and hosed his family over financially at every opportunity. Credit scores aren't perfect, but they beat the alternatives because people suck.
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Nov 2, 2015 19:32
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it came from reddit posted:
As someone who worker as a bartender before and clamed basically none of my cash tips I can't decide if this is GWM or bad. On one hand why would you not save your paycheck and use your cash tips for living expenses like everyone else in the service industry. On the other hand the guy has no debt and 100k in cash saved up. Would it be bad with money to just buy a high quality safe, keep the cash in it and just live off that 100k till its gone? While contributing the majority of his paycheck to a tax advantaged account. Explain to me why this is a terrible idea (I'm sure it is). Obviously you risk theft but 100k can buy a pretty nice safe. Legal ramifications aside if you have 100k in cash do you get the most out of that money by reporting it and investing? What else can you do with that much cash if you don't want to pay taxes? About how much of that money will he have to pay the IRS when he claims it? dangling pointer fucked around with this message at 20:57 on Nov 2, 2015 |
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Nov 2, 2015 20:43
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He could claim half of it this year as tips, and half next year as tips (keep it somewhere safe until then) and I think he'd be okay. If he did that, he'd probably have to give up something like $13k each year, but he'd end up with $34.5k left each year. Then he could max out an IRA 3 times (2015, 2016, 2017 in Jan 2017 after filing taxes for 2016) and throw the remaining 52.5k into the bank with the 28k that's already there, and be set up very well for a bartender. 80k ought to be plenty to put down a down payment on a home and have lots left for emergencies, and he'd have a nice little nest egg going with his IRA. I mean yeah he could just live off it, but A) the IRS would probably find out at some point and B) with no retirement savings, he needs to get started on that and 16.5k in a Roth IRA will do him a lot more good in 32 years than 100k in cash will (about triple the value in 32 years, and that's not even counting whatever he did with the other 52k).
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Nov 2, 2015 21:05
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He sells drugs. Not drinks.
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Nov 2, 2015 21:08
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dangling pointer posted:As someone who worker as a bartender before and clamed basically none of my cash tips I can't decide if this is GWM or bad. On one hand why would you not save your paycheck and use your cash tips for living expenses like everyone else in the service industry. Not counting his state and local taxes, about 28% if he dropped it all in at once depending on how many exemptions(if any) he was able to claim. He should straight up walk into his credit union and deposit it- it's not illegal to have/deposit a bunch of cash, the 10k reporting limit thing just means some databases exchange some info, it doesn't make it unlawful. Also someone should point him to the IRS's page on tips here, which tells you in detail how to handle tips on tax forms, how to report them, etc. No Butt Stuff posted:He sells drugs. Not drinks. If the guy is willing to pay back taxes on the money he should be good to go. Talk to an accountant, drop the money in the bank, fill out some forms, pay his taxes and he's good to go. If he can fudge something together for how he ended up with that much money over how much time I think that'd suffice. Edit 2: Go to the bank and Pray the local corrupt cops don't stop him and decide to do some Asset Forfeiture (theft). Come to think of it Asset Forfeiture is probably his #1 threat - the IRS only wants their legal piece. The local cops are gonna go after the whole drat thing. Edit 3: Even if it were illegal drug money, he can and should still report it. You are allowed to write in unlawful income sources on your tax forms, and doing so will shield you from tax evasion charges. Not from charges about the crimes themselves, and I think not if they've already filed evasion charges, but you can indeed write "Drug Sales" on the occupation line and the IRS will accept the taxes on it no fuss. vvvv I think they're only allowed to seize cash + physical goods - Once it's in the bank I think the IRS/FBI are all he has to worry about. Uncle Enzo fucked around with this message at 21:27 on Nov 2, 2015 |
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Nov 2, 2015 21:13
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Yeah, asset forfeiture is absolutely his biggest problem if he hasn't told anyone else about this, which is why he's freaking out about just putting it into the bank. His only recourse would be to spend a ton of money that he doesn't otherwise have on a crapshoot in getting it back. Putting it into a safe and slowly declaring it over the next few years in tips sounds like the safest thing he can do.
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Nov 2, 2015 21:23
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Nail Rat posted:He could claim half of it this year as tips, and half next year as tips (keep it somewhere safe until then) and I think he'd be okay. If he did that, he'd probably have to give up something like $13k each year, but he'd end up with $34.5k left each year. Why would the IRS audit him if he lived off it? Obviously he isn't living extravagantly because he was able to save so much. He pays his rent in cash to a friend. If he is on the lease for it he could get a roommate so he doesn't have to be on the lease. He has 28k in his checking which is enough in case he has to make any large purchases. If he makes 25k a year on paper he can still max out a Roth IRA with that money. All while still making more cash in tips. I know nothing about how the IRS decides to audit someone or tax laws. I'm curious of how they would find out.
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Nov 2, 2015 21:28
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I found 10 bucks on the ground and started thinking about creative ways of spending it rather than just immediately putting it into savings/debt.
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Nov 2, 2015 21:37
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No Butt Stuff posted:He sells drugs. Not drinks.
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Nov 2, 2015 21:40
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Volmarias posted:Yeah, asset forfeiture is absolutely his biggest problem if he hasn't told anyone else about this, which is why he's freaking out about just putting it into the bank. His only recourse would be to spend a ton of money that he doesn't otherwise have on a crapshoot in getting it back. Putting it into a safe and slowly declaring it over the next few years in tips sounds like the safest thing he can do. I'd say on his next day off that his credit union's open, put the money in a backpack in his trunk, drive to the bank and walk in and say "I need to make a deposit". If they have him fill out some form for "where'd this money come from" He should just say "Saved a couple 20's every shift from work as bartender at $BAR for last 5 years". Also 5 years working 5.5 days a week gives 1430 working days, $95,000 / 1430 days = 66 bucks/working day, matching his "couple 20's a night" story exactly, taking into account some better nights, multiple shifts, etc. I've worked in a tipped profession and making 100$/day in tips is drat good but not hard to believe. He should do what Nail Rat said- make some IRA contributions, pay some taxes, and be good to go. After a very stressful trip to the bank. Uncle Enzo fucked around with this message at 21:49 on Nov 2, 2015 |
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Nov 2, 2015 21:41
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Volmarias posted:Putting it into a safe and slowly declaring it over the next few years in tips sounds like the safest thing he can do. If he's selling drugs, then might as well add a federal count of structuring (cf. Hastert, Dennis) to his rap sheet. In the extremely unlikely scenario where he's earned this money legitimately, I'm not sure committing a federal crime is the safest course of action. I'd say he's best off hiring an accountant (in cash, I guess) to amend his previous tax returns to report the income over however many years he's been deficient, and then just making sure he gets squared up with the IRS. After that, just deposit the cash as normal into retirement/savings/whatever.
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Nov 2, 2015 21:42
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Powerlurker posted:Credit scores have a good amount of rigor behind them and tend to correlate with a lot of other aspects of generally having one's life in order. It's well known in actuarial circles that credit score is strongly predictive of future loss claims: https://www.casact.org/pubs/forum/03wforum/03wf113.pdf This forum is full of advice for life-in-order people about how to maximize their credit score exactly because it's being used for more things than it needs to. If it was a different metric they needed to worry about, they'd worry about that, or at least stop doing somewhat silly things like leaving credit cards they have no intention of using open just to affect their utilization numbers.
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Nov 2, 2015 21:43
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No Butt Stuff posted:He sells drugs. Not drinks. He lives in Florida, I don't know why no one has suggested he uses it to get a bigger bulk discount on blow to increase his profit margins. e: I don't think it's that unlikely that he made the money by saving tips. It's not uncommon to go home with about $200 in cash on weekends if it's a nice place, and I worked in a smaller/poorer city in Ohio not a major city. dangling pointer fucked around with this message at 21:50 on Nov 2, 2015 |
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Nov 2, 2015 21:43
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ShadowHawk posted:ITT goons independently reinvent money laundering, as well as its primary purpose What you do is crowdfund an internet spaceship game founded on dreams of spergs. Then you can launder the money through the books while never producing the game by running it as a long con. 
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Nov 2, 2015 22:02
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You can get 200-300 in a weekend night at a decent, slightly nicer place. My wife averages 200 a night at her part time.
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Nov 2, 2015 22:09
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Devian666 posted:What you do is crowdfund an internet spaceship game founded on dreams of spergs. Then you can launder the money through the books while never producing the game by running it as a long con. When they finally figure out if they are laundering money or just completely incompetent please post an update here. That thread is impossible to follow.
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Nov 2, 2015 22:13
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dangling pointer posted:When they finally figure out if they are laundering money or just completely incompetent please post an update here. That thread is impossible to follow. It will probably be months before there is something concrete. Court filings, discovery and lawyer antics will take a while to resolve.
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Nov 2, 2015 23:48
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Find an accountant, amend back taxes, deposit it... Done. No Butt Stuff posted:He sells drugs. Not drinks. dangling pointer posted:He lives in Florida, I don't know why no one has suggested he uses it to get a bigger bulk discount on blow to increase his profit margins.
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Nov 3, 2015 00:41
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http://money.stackexchange.com/questions/55495/how-to-rescue-my-money-from-negative-interest
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Nov 3, 2015 00:44
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