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Nail Rat posted:I'd say just make sure you do your due diligence on inspections, etc. People who are doing a short sale probably haven't had a preponderance of money to spend on maintenance. The listing says that it's the buyers responsibility for c/o inspections, so there's the potential for problems there. The price is low, though so it could be a "too good to be true situation" but whatever, there's no harm in starting. It does have oil heat, the tank is in the basement, so it's not buried, which is a little relief, but not ideal.
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Mar 22, 2016 16:51
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I was gifted some of my dad's company stock as a wedding present. He bought it via an ESPP at a discount. He held the stock for over 2 years after he purchased it and it has been more than one year since the subscription. I want to get my cost basis updated before I sell it so I can make sure I know the tax ramifications. Do I use the purchase price that includes the discount or the fair market value that doesn't include the discount? My understanding is that if he sold it he would get to use the FMV price but I wasn't sure if that transferred over to me.
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Mar 22, 2016 17:06
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SIR FAT JONY IVES posted:The listing says that it's the buyers responsibility for c/o inspections, so there's the potential for problems there. This is true in just about every home sale, unless I'm misunderstanding. The real warning sign is "As-is only."
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Mar 22, 2016 17:10
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Nail Rat posted:This is true in just about every home sale, unless I'm misunderstanding. makes sense. the house is $300k, which is well under our budget. So if we bought at that price, I'd have about $1000 a month extra, that's a decent budget for repairs.
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Mar 22, 2016 17:12
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Right now I don't have a Roth IRA, and I'm building out my emergency fund. I will keep some of my emergency fund in checking (as a 1 month budgeting buffer), but would it make sense to stash the rest in my Roth IRA if I wouldn't otherwise be able to meet the max contribution amount? If so would it be OK to use a Vanguard product for this? My idea is that say I have 6 months emergency split in Roth IRA and a savings account, next time I can contribute, I can add my $5,500 contribution and convert the money I already have in the IRA from emergency cash into a retirement fund in the same year. The whole time keeping a total of 6months emergency cash between IRA/savings, but I just shift from IRA to savings as I can save more for retirement. Am I misunderstanding something and/or is this pointless  min-maxing?
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Mar 22, 2016 17:13
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I would say no. While you can withdraw Roth contributions tax/penalty free, I generally consider idea behind an emergency fund is that something catastrophic has happened and you need that money now, not in 3-5 business days or however long it'll take Vanguard to liquidate shares and then mail you a check/make an EBT. (I had to liquidate an [non-Roth] IRA once, and as I recall it took over a week to get the money.) I get what you're trying to do, which is get the contribution into an IRA earlier so that it has longer to grow, but an IRA isn't designed to be a savings vehicle, it's designed to be an investment vehicle. Your E-fund is there to mitigate the low-probability/high-severity risks of just being alive--car explodes, hit by a truck, get fired from work, your dog needs dog surgery, or all of the above simultaneously. I have my emergency fund in a savings account at the same bank I have my checking account at. If I need it, I can access it in about 90 seconds. Some people keep theirs in a separate bank that gives a less-terrible interest rate: that means access in probably no more than 24 hours. If you're comfortable with not having access to that money in an immediate fashion should an emergency arise, I guess there's nothing *technically* wrong with it. You won't lose money in taxes or penalties. But it's not how you're supposed to think about an IRA (in my opinion.)
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Mar 22, 2016 22:07
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overdesigned posted:I would say no. While you can withdraw Roth contributions tax/penalty free, I generally consider idea behind an emergency fund is that something catastrophic has happened and you need that money now, not in 3-5 business days or however long it'll take Vanguard to liquidate shares and then mail you a check/make an EBT. (I had to liquidate an [non-Roth] IRA once, and as I recall it took over a week to get the money.) On the other hand, what kind of emergency would require substantial cash right this second? Unless you're in the habit of taking out mob loans, almost any big expense will let you pay with a credit card, set up billing terms with a bit of a delay, or both. Planning to keep a chunk of an emergency fund in an IRA indefinitely is a bad idea - low per-year probabilities can crop up easily over a lifetime, and you don't want to be left pulling sweet, sweet tax-advantaged retirement money unless the alternative is sleeping in a gutter. But, sneaking a contribution in under the wire to take advantage of the tax benefit for 2015, putting it into ultraconservative investments like Treasuries as long as it's your "emergency fund," and moving it into actual retirement investments as you build up your cash emergency fund isn't a bad idea. A bad long-term strategy can be an OK transition strategy to pick up every cent of tax-advantaged space possible. You just have to be sure that you can realistically keep up a contribution rate that will keep both the emergency fund and the IRA healthy over the long term.
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Mar 25, 2016 17:07
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Space Gopher posted:On the other hand, what kind of emergency would require substantial cash right this second? Unless you're in the habit of taking out mob loans, almost any big expense will let you pay with a credit card, set up billing terms with a bit of a delay, or both. I also see all of the benefits and none of the downsides to keeping efund savings in an online savings account. Ally has a 1% yield and 1-3 day transfers. I keep enough cash in checking to cover pretty much any emergency (one month of bills roughly), plus I have more than my salary in available credit should the need arise. Any emergency I've had, I was able to use credit for and pay off with an efund transfer. SiGmA_X fucked around with this message at 17:21 on Mar 25, 2016 |
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Mar 25, 2016 17:19
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This is probably a stupid question, but when saving for intermediate term goals, like a house down payment, car, etc, where the time horizon is something like 3-8 years, where is the best place to put savings? For example, we'd like to buy a house in the next 2-3 years, a new car in 5 yrs, and likely a 2nd new car in 8-10. Timing is flexible on these estimates, unless something catastrophic happens with the cars. So the options as I see it are: - Keep in high yield savings account at 1% - Put in taxable investment account If the answer is the taxable investment account, do you count the allocation there as part of your overall allocation strategy, or do you do it separately and trend much more conservative since you'll need the money sooner? If you do it separately, what allocation would be reasonable assuming you're moderately risk averse over these time periods?
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Mar 26, 2016 14:01
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What is the point at which I should look into trading in my car for a newer one, and how should I determine how much I can afford on a car?
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Mar 26, 2016 20:36
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Chu020 posted:This is probably a stupid question, but when saving for intermediate term goals, like a house down payment, car, etc, where the time horizon is something like 3-8 years, where is the best place to put savings? For example, we'd like to buy a house in the next 2-3 years, a new car in 5 yrs, and likely a 2nd new car in 8-10. Timing is flexible on these estimates, unless something catastrophic happens with the cars. So the options as I see it are: I think the general rule of thumb is if your goal is <5 years out, leave it in a high-yield savings account. If the goal is any longer out, put it in a taxable investment account. As for allocation, I'm not entirely sure. I would probably just put it in an S&P index fund.
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Mar 26, 2016 21:04
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signalnoise posted:What is the point at which I should look into trading in my car for a newer one, and how should I determine how much I can afford on a car? First, identify what a newer car will provide you that your current car won't. Maybe upgraded safety standards are important to you, maybe your current vehicle requires constant and expensive maintenance, or maybe you need more seats to cart your family of 6+ around. If you can't identify anything, stop, you shouldn't be looking. Look for vehicles that meet your needs and buy the most economical one, taking into consideration annualized future ownership costs (a 2014 vehicle at $12k might be more economical than a 2004 at $4k due to less anticipated maintenance costs and greater lifespan).
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Mar 26, 2016 21:37
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baquerd posted:First, identify what a newer car will provide you that your current car won't. Maybe upgraded safety standards are important to you, maybe your current vehicle requires constant and expensive maintenance, or maybe you need more seats to cart your family of 6+ around. If you can't identify anything, stop, you shouldn't be looking. Look for vehicles that meet your needs and buy the most economical one, taking into consideration annualized future ownership costs (a 2014 vehicle at $12k might be more economical than a 2004 at $4k due to less anticipated maintenance costs and greater lifespan). Well, that rules out my own car, but my wife should probably replace hers. So how much budget can we afford? I won't be posting the intimate details of my budget here but if there's a guideline based on something that'd be cool. It's going to be a new expense because her car is currently paid off.
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Mar 27, 2016 20:03
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A good time to consider changing cars is when yours is starting to cost a lot in repairs on a regular basis. Or, if you have more money floating around, when you get tired of your current car and want a change. Regarding budget, it really depends. If your income is high, you can afford a more expensive car. If it's low, buy the cheapest car you can. I'm not sure there's a huge advantage in buying used vs new unless you're really struggling financially. The minimum "nice new car" is something like $15-19k, and if you can get a good rate like 1% on a loan, it's reasonable to use a loan to buy it. The higher downpayment the better - 50% is a good target. So looking at your actual question, here's a starting point: What can you manage with a 1% loan and 50% down?
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Mar 27, 2016 20:30
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slap me silly posted:A good time to consider changing cars is when yours is starting to cost a lot in repairs on a regular basis. Or, if you have more money floating around, when you get tired of your current car and want a change. Jesus, are loans seriously that low right now? Also is there a calculator for this
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Mar 27, 2016 20:35
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Lots. Google "Car loan calculator" or something and you'll get there. An $18k car with 50% down and a 36 month 1% loan needs $9000 in cash and $258 per month. Remember that $18k is the total price including tax and fees, not the sticker price. My credit union is offering 1% - 2.5% depending on details.
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Mar 27, 2016 20:44
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Alright cool, thank you 
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Mar 27, 2016 20:48
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signalnoise posted:Alright cool, thank you Unless you have made very significant progress since you posted your thread: http://forums.somethingawful.com/showthread.php?threadid=3731821 I would advise against buying a new car.
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Mar 28, 2016 13:11
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KYOON GRIFFEY JR posted:Unless you have made very significant progress since you posted your thread: Agreed 100%
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Mar 28, 2016 13:39
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We've been doing much better, I mean there's not much I can do in a matter of months against the amount of debt I have. So I totally understand that concern. The issue is my wife's car having mechanical problems.
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Mar 28, 2016 14:43
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Year/make/model, mileage, and nature of problems?
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Mar 28, 2016 15:37
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signalnoise posted:We've been doing much better, I mean there's not much I can do in a matter of months against the amount of debt I have. So I totally understand that concern. The issue is my wife's car having mechanical problems. So take it to an independent repair shop and have it fixed. Repairs are no biggy.
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Mar 28, 2016 15:38
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KYOON GRIFFEY JR posted:Year/make/model, mileage, and nature of problems? Some kind of ~10 year old Ford Escape, something about the car is causing water to leak into it big time whenever it rains, the AC is shot, the engine doesn't sound right (I know jack about cars so I dunno what to tell you there other than it's kinda... grumbly?) and it takes forever to shift (automatic). Mileage is about 150k if I remember correctly. Definitely over 125k.
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Mar 28, 2016 16:06
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signalnoise posted:Some kind of ~10 year old Ford Escape, something about the car is causing water to leak into it big time whenever it rains, the AC is shot, the engine doesn't sound right (I know jack about cars so I dunno what to tell you there other than it's kinda... grumbly?) and it takes forever to shift (automatic). Mileage is about 150k if I remember correctly. Definitely over 125k. Yeah, you need a different car. Glad that your turned the corner on your situation, but you are still up to your eyeballs in debt. So not a new car, but different car. The good news is that if you sold yours private party, you might still get $1500, maybe a couple thousand? (I'm guessing) Bring in another $5000 into the picture and you could WAY upgrade car with this budget. You won't be driving this forever say you found something half as old with 80K miles it will have a lot more life than your current car does. One thing that you DO NOT need is $25000 in new debt, no matter what rate they give you
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Mar 28, 2016 16:33
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For sure. I honestly don't see the point in ever getting an actually new car. It's no different to me than paying an extra 300 dollars for a slightly better video card that just came out. I keep telling myself that when it comes time for me to replace my own car that I'll get something sporty, but I know I'll end up with some poo poo like a loving Yaris.
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Mar 28, 2016 16:42
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Engine not sounding right is probably an exhaust issue, the transmission not shifting correctly is probably a fluid issue, the AC issue is probably a charge or a compressor, and the water issue is serious enough that I'd ditch the car. How good are you at regularly servicing your cars?
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Mar 28, 2016 16:50
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KYOON GRIFFEY JR posted:Engine not sounding right is probably an exhaust issue, the transmission not shifting correctly is probably a fluid issue, the AC issue is probably a charge or a compressor, and the water issue is serious enough that I'd ditch the car. Brake pads, oil, tires, wiper fluid. Beyond that not so great
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Mar 28, 2016 17:59
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KYOON GRIFFEY JR posted:Engine not sounding right is probably an exhaust issue, the transmission not shifting correctly is probably a fluid issue, the AC issue is probably a charge or a compressor, and the water issue is serious enough that I'd ditch the car. Water could be no big deal - does it have a sunroof? Or has it had a windshield replaced recently? That said, it may be time for a new car. If pay a mechanic to look at the noise though. You may sell it for a lot more for an hour or two of gasket replacement if it sounds fine. I'd definitely sell it on CL/Autotrader too. If you need help, I'm sure there is a how to CL thread here. It's drat simple. E: signalnoise posted:Brake pads, oil, tires, wiper fluid. Beyond that not so great SiGmA_X fucked around with this message at 18:04 on Mar 28, 2016 |
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Mar 28, 2016 18:02
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Take it to a mechanic for a look-see and tell us what they find. At minimum, if you decide to sell the car, you'll want to figure out what you can fix cheaply to boost the resale. In the future, take care of your cars. This particular car should be relatively fine at its age and mileage - maybe requiring some routine maintenance and semiroutine repair, but a hell of a lot cheaper than considering additional debt.
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Mar 28, 2016 19:17
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signalnoise posted:For sure. I honestly don't see the point in ever getting an actually new car. It's no different to me than paying an extra 300 dollars for a slightly better video card that just came out. I keep telling myself that when it comes time for me to replace my own car that I'll get something sporty, but I know I'll end up with some poo poo like a loving Yaris. Just going to chime and say that buying a new car is not a bad financial choice, given the right circumstances. If you plan on keeping the car for its entire useful life, the money works out about even in the new versus used debate as long as you have good credit and make a smart choice. If you have too much debt already, a used car is typically a better choice though.
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Mar 28, 2016 20:07
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There was a post either in this thread or the Ask/Tell car buying thread with a video showing how buying a slightly used car instead of a new car and investing the difference now can add up impressively. Anyone remember that?
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Mar 30, 2016 02:11
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Maybe it's this? I plan to do that. I know Dave Ramsey gets poo poo on a lot here, but he definitely has some good ideas. Just too preachy, too anti-debt. https://www.youtube.com/watch?v=BKyV8CTHeJ0 "12%" 
Moneyball fucked around with this message at 03:31 on Mar 30, 2016 |
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Mar 30, 2016 03:26
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Moneyball posted:Maybe it's this? I plan to do that. I know Dave Ramsey gets poo poo on a lot here, but he definitely has some good ideas. Just too preachy, too anti-debt. There's just so, so much wrong with that video. Like most Dave Ramsey stuff, it's like remedial personal finance. It's wrong in almost every particular, but not really bad for getting people who are bad with money moving in the right direction. I could attempt to break down everything wrong with the video, but I hope most people reading this catch most of the problems. Like claiming that picking the "right" mutual fund lets you expect 12% returns annually. On average. Over long periods of time. It sure is a good thing none of those Wall Street types have figured out that One Weird Trick.
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Mar 30, 2016 03:50
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Moneyball posted:Maybe it's this? I plan to do that. I know Dave Ramsey gets poo poo on a lot here, but he definitely has some good ideas. Just too preachy, too anti-debt. Yep, that's it. I forgot about the 12% return, but the concept of buy used and invest what would be the loan payments on a new car is sound.
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Mar 30, 2016 12:13
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Buying a brand new car is never the best financial choice due to the insane rate of depreciation in the first few years. If you really want a "new" car for reasons of reliability, you're best off getting one 3-4 years old from a reputable source once that huge initial chunk of depreciation has been paid for by some other shmuck. The dollar amount saved between new & lightly used is almost guaranteed be a higher number than the cost of whatever meager repairs the used vehicle requires. And no matter what people may like to call it, a car is not an "investment".
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Mar 30, 2016 12:17
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The problem with this One Weird Trick that Automakers Don't Want You To Know!!!! is that lightly used cars are ridiculously overvalued due to high demand, and cars are so reliable that depreciation curves are a lot flatter than they used to be (in the non luxury car class). Look at the Honda Fit. Before any incentives, going to your Honda dealer, not negotiating, and paying cash for an LX 5-speed is $16,750. The equivalent trim level of car, three years old used, out of warranty, of an older and inferior generation with fewer standard features, is currently listed on Carmax* in my area for $14,999. Add in the fact that hey, there are typically incentives on new cars, and the fact that interest rates on loans are lower for new vehicles, and that delta is nonexistent. If you're going private party, which would save you some money compared to Carmax, value your time and effort chasing down Craigslist retards, the amount of money you'll spend on pre-purchase inspections, etc in that split as well. Buying used cars generally makes sense, especially for people with significant debt loads, but it's not quite as clear cut as Ramsey/MMM people want to believe. A lot of people are just not capable of doing the legwork that buying a used car requires, evidently - come on down to the BFC/AI car thread if you want to be astonished. *don't ever buy a used car from Carmax unless it has an air suspension and the extended warranty.
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Mar 30, 2016 12:59
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Gray Matter posted:Buying a brand new car is never the best financial choice due to the insane rate of depreciation in the first few years. This is not always true nowadays, because so many people have heard and parroted this once-true claim that demand has changed to favoring slightly used cars.
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Mar 30, 2016 14:21
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I would go so far as to say that if you have good credit and money for a significant down payment it's a lot easier to find a good deal on a new car than a used car. There are just fewer variables to work through. Cars don't depreciate particularly faster early on than later in life, they just change state from "new" to "used", which effects their value on an actuarial table but not much in the real world. Every car has a useful lifespan, with different levels of expected maintenance at different times. The cheapest time to own a car is the first 60,000 miles or so, with almost no expected maintenance but oil changes. When you buy a used car with 40,000 miles on it you save money on the front end, but lose money on the back end by needing to replace the car 40,000 miles sooner than you otherwise would. You trade 40,000 miles of useful life for upfront money. You're also giving up a good part of the most maintenance free life of a car. Of course you also have to deal with the consequences of anything that happened to the car before you bought it. With a used car you give up choice (color, trim, features), and are restricted by the cars available on the market at any given time. The point of all that is that you give up something of value when you buy a used car, which is why you pay less money for it. Whether or not you're getting good value by giving up the time and miles on the car comes down almost entirely on the used car you end up purchasing. In my experience, most used cars are not a very good value for what you give up, but some are. So if you're shopping for a car, keep that in mind.
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Mar 30, 2016 14:57
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A month or so ago, someone linked this "easy budget" and I've been using it as a guide to sort out of my savings plan. I finally have two weeks of pay saved (Step 2 of the plan). I have no high interest debt, but I do have a car loan with a 3.6% interest rate. According to the plan, I should eliminate this debt last, after saving 3-6 months of expenses. I have to admit I feel kind of impatient to get rid of this debt, however, especially with the money woes my current employer is suffering. I thought I'd seek out a second (or third, or fourth, depending on how many people reply) opinion. Should low interest debt really sit for longer, or should I get rid of it asap?
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Mar 30, 2016 16:53
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If your employer was thriving, my suggestion would be to max out any 401k match they provide. However, if your employer is suffering, I would definitely build up your emergency fund in the case of a layoff. 3.6% interest isn't as good as being debt-free, but it's not all that bad. I'd even say fully fund an IRA before paying off that car loan. Basically following the advice in the OP.
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Mar 30, 2016 16:59
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