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If that $35K car was a nice reliable car then I'd just suck it up, pay it off ASAP, and drive it until it dies.
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Jan 23, 2017 17:14
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Keep driving it, any effort to trade it in will probably end up in an even higher loss than 6k of depreciation that the car has already gone through. I'm not suggesting you crash your car but you do have gap insurance 
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Jan 23, 2017 17:24
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If you want to make good long term financial plans, financing $6000 of literally unsecured, no value debt at a higher interest rate is not in your interest. Throw additional money at the principal of your auto loan so you can stop paying interest on it.
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Jan 23, 2017 17:38
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I'll agree with the posters who advise against rolling over negative equity, it's generally a bad idea. Think of it this way: the equity in your car only matters if you total it or sell it. The gap insurance covers you if you wreck it, and you can choose not to sell it. You've already endured the steepest part of the depreciation curve, now just take care of the car and enjoy the ride. Most new cars will last a good 10-15 years with simple maintenance and without too much trouble. This is of course general advice, and assumes that the car meets your needs. There are some edge cases where it may make sense, but it would be unusual.
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Jan 23, 2017 18:31
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BWM: Paying turbotax to do your taxes if you are above various "normal" earner caps. I pay a few hundred a year to have some guy handle it all for me. I always run it through turbotax for free (no filing) first, and he always gets me more money, tracks my non-deductible IRA basis, handles carryover AMT deduction issues, etc. The cost delta more than pays for itself several years running. I debated having him re-do my taxes from years prior when I used it for K-1 stuff and likely overpaid, but in the end trying to dig up the required paperwork outweighed my interest. He's also just a nice guy to sit there and chat with while he does it.
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Jan 23, 2017 19:51
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BWM tax talk just overheard at work: A woman a few cubes down said they were paying to have their taxes done because she sells Mary Kay and doesn't understand how the taxes work. She said she would rather have some who understands do her taxes than mess them up. Early 20s guy next to me pipes up and says "You don't need that. I lied on my taxes last year and nothing bad happened."  At least everyone told him he's an idiot and not to do that again....
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Jan 23, 2017 19:59
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H110Hawk posted:BWM: Paying turbotax to do your taxes if you are above various "normal" earner caps. So where is he getting the extra money out of that makes it difficult to handle yourself year after year? Couldn't you just figure out what he does and apply the same strategies next year? I thought about hiring someone to help with AMT issues but a lot of that such as grouping deductions needs to be planned in advance and I don't think I will be in AMT for more than 1 year. What can a tax person do after the real decisions have already been made? I just want to hire someone for a one time fee to look over everything in my financial life and tell me if I'm missing anything. Is a tax professional the best person for that? potatoducks fucked around with this message at 20:23 on Jan 23, 2017 |
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Jan 23, 2017 20:17
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potatoducks posted:What can a tax person do after the real decisions have already been made? You get to sit and chat with them about how much money you made and how successful you are, and you don't feel like a douche because they need to know all about it to do their job.
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Jan 23, 2017 20:35
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Droo posted:You get to sit and chat with them about how much money you made and how successful you are, and you don't feel like a douche because they need to know all about it to do their job. Unless your CPA complains about how poorly their business is doing and then you still feel like a shitheel.
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Jan 23, 2017 20:38
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potatoducks posted:So where is he getting the extra money out of that makes it difficult to handle yourself year after year? Couldn't you just figure out what he does and apply the same strategies next year? I thought about hiring someone to help with AMT issues but a lot of that such as grouping deductions needs to be planned in advance and I don't think I will be in AMT for more than 1 year. What can a tax person do after the real decisions have already been made? I am bad at keeping it all organized and it changes slightly year over year. I like the peace of mind paying someone else to stay on top of it. I have big folder-o-taxes I maintain over the year, sort, tally, and hand to him. In the end he asks me about things which might change in the next 12 months and gives me advice on targets for withholding. I'm sure I could do all of this for ~$50 in turbo tax but the ~$300 I spend there helps me plan for the upcoming year, maintain basis information, carryovers, etc. We did a fee for service financial planning session a few years ago. It was great. They laid out our savings rates, goals, etc. If you want to get tax advice out of it I would be up front with them when scheduling, they may have a better idea. It came with a brochure about how they could charge me 1% of my managed assets to make market average returns. We declined. Most of the "big picture" stuff I get from maintaining the horrible security risk that is "Fidelity Full View". If you fill it out accurately and completely you can know your net worth at a glance. Droo posted:You get to sit and chat with them about how much money you made and how successful you are, and you don't feel like a douche because they need to know all about it to do their job. Last year he wanted to give me a bunch of advice about becoming a first time parent. After a minute he realized the financial stuff was all in order and it was just a lot of how great it is being a parent. It was sweet. 
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Jan 23, 2017 20:45
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https://www.reddit.com/r/legaladvice/comments/5pr5ek/in_my_sister_let_someone_off_craigslist_borrow_a/ posted:[IN] My sister let someone off Craigslist borrow a saddle to try out. The girl kept the saddle and is now trying to sell it. Why would you let a random stranger borrow something you put up on Craigslist.
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Jan 23, 2017 20:59
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monster on a stick posted:Why would you let a random stranger borrow something you put up on Craigslist. A red string connecting two pins on a cork board, one with the label 'horse person' and the other 'bad decisions'. I step back to consider the complex vista before me, but what does it all mean?
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Jan 23, 2017 22:08
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cowofwar posted:The good rate you probably have on the new car loan now is not going to available on a used car. BEHOLD: MY CAPE posted:My personal opinion is that it makes more sense to drive a nice new car that you overpaid for into the ground while taking advantage of the factory warranty fresh tires and brakes etc rather than just take the bath immediately if the payments aren't crushing you, but many Ramsey-ites would definitely advocate that you immediately sell the expensive car at a big loss and roll negative equity into an overall cheaper loan. An important factor to consider is that you're almost guaranteed to be paying a substantially higher interest rate on a loan involving negative equity such that it may actually incur more monthly interest at the beginning of the loan even if the overall debt is lower. monster on a stick posted:If that $35K car was a nice reliable car then I'd just suck it up, pay it off ASAP, and drive it until it dies. I Like Jell-O posted:I'll agree with the posters who advise against rolling over negative equity, it's generally a bad idea. Think of it this way: the equity in your car only matters if you total it or sell it. The gap insurance covers you if you wreck it, and you can choose not to sell it. You've already endured the steepest part of the depreciation curve, now just take care of the car and enjoy the ride. Most new cars will last a good 10-15 years with simple maintenance and without too much trouble. Yeah I've stewed on it all day, and I'm going to keep paying it off and get it knocked out early, then keep it an extra decade. I did want to treat myself, and I adore the thing, so I guess I could make stupider mistakes
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Jan 23, 2017 22:44
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monster on a stick posted:Why would you let a random stranger borrow something you put up on Craigslist. If they got something in writing they could just take her to small claims court. Something tells me they didn't.
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Jan 23, 2017 22:58
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BWM: no paper trail.
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Jan 23, 2017 23:39
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BWM Reddit posted:Over the past 3 years I have made terrible and irresponsible decisions which consist of taking out 4 different credit lines using my fathers information and basically ruining his credit. I would be confident at first by making minimum payments each month on every line (I realize that would ultimately take years to pay off a balance in full by doing this) but eventually late payments would occur and it all started piling up. My minimum wage job of course made it hard to keep up with everything and now I have a huge mess to deal with. My parents have slowly become aware of each line and I have been punished for it. I realize the severe consequences I could receive if they would proceed to press charges against me but that is the last thing they would like to do. I have taken full responsibility for paying everything off and they know that (even though it is my fathers credit that is taking the major blow). TL/DR: 19 year old took out $12,000 in debt in his parents name over the last 3 years (aka starting at 16 years old). Also has a car loan @ $260 a month and a credit card in his own name. The sadder part is his post history - including gems about losing his job at Wal Mart, being attracted to a 17 year old, and complaining about all the money he's wasted on clothes he doesn't like. Can't decide if it's worse that his parents didn't notice him having $12,000 worth of stuff and not questioning how he could afford it (however his post history seems that he might have spent a decent amount of this money digitally).
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Jan 23, 2017 23:55
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http://www.seattletimes.com/business/couple-worrying-about-managing-debts/quote:Seattle’s soaring home prices drove renters Kathryn Jacoby and Jeff Whitehill to a sobering conclusion last summer: If they didn’t buy a house before prices rose higher, they could never afford to own a home in the city. 
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Jan 23, 2017 23:56
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To be fair, that is a great deal on a house in that area. Shits totally hosed here. We're on the other side of the freeway, same distance to downtown Seattle. In 2009 houses in our neighborhood were in the 360,000-400,000 range. Now most of them are selling between 600,000 and 650,000. North Seattle real estate is loving stupid. (And when the bubble popped in 2009 it didn't drag things down much) Sitting around and waiting for the bubble to pop again is nice but i'm not sure how much relief people will experience. Pair that with the fact that rent around here is pretty close to on par with mortgage prices and and literally zero houses sitting around on market. edit: I may have missed the point of your post. Their retirement savings problem is lovely. silicone thrills fucked around with this message at 00:07 on Jan 24, 2017 |
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Jan 24, 2017 00:04
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I agree and I was priced out of Seattle a long time ago (also, neither my wife or I work in Seattle so...), just that this article hits a bunch of BWM buttons all at once.
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Jan 24, 2017 00:07
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Amazon is growing by 5-15 thousand people a year downtown for the forseable future and paying them big wages. It's not going to stop.
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Jan 24, 2017 00:13
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Bugamol posted:TL/DR: 19 year old took out $12,000 in debt in his parents name over the last 3 years (aka starting at 16 years old). Also has a car loan @ $260 a month and a credit card in his own name. The sadder part is his post history - including gems about losing his job at Wal Mart, being attracted to a 17 year old, and complaining about all the money he's wasted on clothes he doesn't like. How is it weird that a guy who's just about to turn 19 is attracted to a 17 year old? That's a pretty rigid dating pool requirement there.
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Jan 24, 2017 00:20
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I'm confused by "lack an emergency fund" but have $26.5k in the bank? Edit hmm perhaps if I had finished reading the article.... brugroffil fucked around with this message at 00:47 on Jan 24, 2017 |
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Jan 24, 2017 00:44
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This is my new favorite explanation of how taxes work. reddit posted:So i've calculated that I should be getting a $350 tax return but turbo tax is only saying I will get $8 back. My income was $39,389 and federal withholdings were $3,898. I should be in the 25% tax bracket which would make me liable for $9,847 in taxes minus the standard deduction of $6,300 which would put me at $3,547. So since I paid $3,898 and was only supposed to pay $3,547 shouldn't I be getting $351 back instead of the $8 turbo tax is telling me?
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Jan 24, 2017 01:01
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I can't figure out how that couple are struggling when they should have a huge savings rate. Student loans and mortgage are inconsequential given their combined income (unless tax is a lot higher than I'm expecting).
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Jan 24, 2017 01:06
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Devian666 posted:I can't figure out how that couple are struggling when they should have a huge savings rate. Student loans and mortgage are inconsequential given their combined income (unless tax is a lot higher than I'm expecting). don't forget, they were making minimum payments of 100 bucks!
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Jan 24, 2017 01:13
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I'm confused why they are living in Seattle (which is expensive as hell) when both their jobs are on the Eastside, where housing is a hell of a lot cheaper and wouldn't give them the long commute they have right now all the way from Carkeek.quote:When asked what advice they would give to other young couples, Whitehill quipped: “Get engaged to a saver.” Jacoby let out a hearty laugh. Maybe do what everyone else does in their situation and cut expenses, but 
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Jan 24, 2017 01:15
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monster on a stick posted:I'm confused why they are living in Seattle (which is expensive as hell) when both their jobs are on the Eastside, where housing is a hell of a lot cheaper and wouldn't give them the long commute they have right now all the way from Carkeek. I think this is what's getting me. Why the gently caress are they spending so much? They could just spend a bit less and pay debts/put money away for retirement. Their mortgage payment is quite reasonable as well. They could instead try living in Auckland NZ where to live in the equivalent area you're paying well over $1m for a house, or $1.5-$2m for something that isn't completely poo poo.
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Jan 24, 2017 01:23
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Devian666 posted:I think this is what's getting me. Why the gently caress are they spending so much? They could just spend a bit less and pay debts/put money away for retirement. Their mortgage payment is quite reasonable as well. They could instead try living in Auckland NZ where to live in the equivalent area you're paying well over $1m for a house, or $1.5-$2m for something that isn't completely poo poo. Because they work hard and deserve it blah blah blah, why are you trying to keep the Millennials down you terrible jerk. The mortgage payment works out to $30K a year, that's not including property taxes and insurance, then they have student loan payments, federal income tax/FICA, guessing at least one car payment, plus lifestyle like being able to hit the locally sourced organic brewing company, it really comes down to lifestyle. The mortgage payment may be reasonable in Auckland or Vancouver or if one of them was working at Amazon but it isn't and they're not. vvv - thanks for the correction, I suspect you are right and they are either counting savings as an expense which  or lighting money on fire at Tom Douglas restaurants or something. Also they have a tenant paying $800/mo.
monster on a stick fucked around with this message at 01:52 on Jan 24, 2017 |
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Jan 24, 2017 01:41
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Devian666 posted:I can't figure out how that couple are struggling when they should have a huge savings rate. Student loans and mortgage are inconsequential given their combined income (unless tax is a lot higher than I'm expecting). They're paying $25,000 a year tops when it comes to taxes, most likely less. They're either lighting money on fire elsewhere, or it's one of those stupid articles that considers retirement contributions as an expense. I liked how they wanted to have the government step in and save them though. quote:The mortgage payment works out to $30K a year, that's not including property taxes and insurance, then they have student loan payments, federal income tax/FICA, guessing at least one car payment, plus lifestyle like being able to hit the locally sourced organic brewing company, it really comes down to lifestyle. The mortgage payment may be reasonable in Auckland or Vancouver or if one of them was working at Amazon but it isn't and they're not. Harry fucked around with this message at 01:48 on Jan 24, 2017 |
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Jan 24, 2017 01:42
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monster on a stick posted:I'm confused why they are living in Seattle (which is expensive as hell) when both their jobs are on the Eastside, where housing is a hell of a lot cheaper and wouldn't give them the long commute they have right now all the way from Carkeek. I didn't notice they were both working on the eastside. They could probably live in bothell or woodinville for a bit less. It's pretty easy to burn the gently caress out of money you could be saving if they are both eating out every day and buying coffee. I work in SLU and i'm lucky if I can get away with a lunch out for less than 15$ out. If I buy lunch in the company cafe - maybe 8-10$. If I just get a soup its 5$.
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Jan 24, 2017 01:50
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silicone thrills posted:I didn't notice they were both working on the eastside. They could probably live in bothell or woodinville for a bit less. Even areas of Juanita should be somewhat reasonably priced still but I haven't checked recently. It's not just saving money, it's also a lot less of a commute which is GWM and GWL because you aren't in a car all day. I know people who do the $15 workday lunch thing and genuinely don't get it. I guess we are lucky because there's a taco truck that has cheap lunches, plus some inexpensive Asian food (now getting into the $8-10 range) but I think food is a bit less expensive on this side of the water.
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Jan 24, 2017 01:59
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monster on a stick posted:Even areas of Juanita should be somewhat reasonably priced still but I haven't checked recently. It's not just saving money, it's also a lot less of a commute which is GWM and GWL because you aren't in a car all day. Even if they spend $50 a day on food there's still a gigantic hole in their budget.
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Jan 24, 2017 02:01
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Harry posted:Even if they spend $50 a day on food there's still a gigantic hole in their budget. I keep re-reading it because I think I must be missing something. This is the couple with $110k gross income and a $550k house? It seems to me like that would be a stretch.
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Jan 24, 2017 02:06
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People who buy lunch when they have a decent income and yet money is tight are the laziest. Throw some poo poo in a pot and let go overnight and you have soup or chili for the week.
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Jan 24, 2017 02:10
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Did they also admit to borrowing money ($30,000) from a family member to pay the downpayment? Pretty sure that's a no no.
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Jan 24, 2017 02:19
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Thesaurus posted:Did they also admit to borrowing money ($30,000) from a family member to pay the downpayment? Pretty sure that's a no no. It's only a no no if it's not disclosed to the lender. It's just another signature, set of bank statements, and wire transfer.
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Jan 24, 2017 02:29
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Droo posted:I keep re-reading it because I think I must be missing something. This is the couple with $110k gross income and a $550k house? It seems to me like that would be a stretch. Yeah same here. That seems like a big mortgage for that income level.
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Jan 24, 2017 02:36
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The cheery for me was her job:quote:Jacoby, 30, earns about $45,000 a year as an operations coordinator for Imagine Housing, an Eastside developer of affordable housing.
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Jan 24, 2017 02:47
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Nail Rat posted:How is it weird that a guy who's just about to turn 19 is attracted to a 17 year old? That's a pretty rigid dating pool requirement there. Half your age plus seven... checks out.
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Jan 24, 2017 02:54
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brugroffil posted:Yeah same here. That seems like a big mortgage for that income level. Seems like a typical mortgage to me but I'm living in a housing bubble. Their mortgage is quite affordable but there's something wrong with their spending.
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Jan 24, 2017 02:56
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