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Regarding the car loan, you might come out ahead if you change your insurance to liability only after you pay the car off, assuming you're comfortable with that level of risk. Otherwise yeah it's probably close to a wash
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Dec 25, 2019 16:28
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DarkHorse posted:Regarding the car loan, you might come out ahead if you change your insurance to liability only after you pay the car off, assuming you're comfortable with that level of risk. Otherwise yeah it's probably close to a wash Generally speaking this is terrible advice for newbies and most advanced people. Comp/coll/uninsured is a very valuable product for cars that aren't trivially replaced financially.
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Dec 25, 2019 18:20
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Motronic posted:1. Gifts have no tax obligation. And that's what this was since it came from your parents account, not that of the estate. If you're in a state where there might be a tax obligation on inheritance your parents just screwed that up and now they owe it. Whoops. Motronic is correct, but to be clear for OP: there are no federal tax obligations (for the recipient) on gifts or inheritances. I don't know much about state taxes on inheritance, but I think relatively few have that. When you hear about gift and estate taxes, those are taxed on the estate or person doing the giving (again, at the federal level), not the person receiving. And you'd have to be talking about an estate worth many millions before that is even a consideration anyway. At that point the estate likely has a professional handling this stuff.
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Dec 25, 2019 18:53
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incogneato posted:Motronic is correct, but to be clear for OP: there are no federal tax obligations (for the recipient) on gifts or inheritances. I don't know much about state taxes on inheritance, but I think relatively few have that. Currently like $11.5 million per person / $23 million for a married couple. To put a scale of how unlikely it is that there is a federal obligation here.
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Dec 25, 2019 19:30
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RE: The 6 month emergency fund. Where's the best place to put it? My credit union offers some decent options that have a little better return but have penalties for early withdrawal. I'm not particularly comfortable with investing it in anything riskier but leaving it in a basic savings account seems like kind of a waste for money that I'm probably not going to need.H110Hawk posted:Generally speaking this is terrible advice for newbies and most advanced people. Comp/coll/uninsured is a very valuable product for cars that aren't trivially replaced financially. Totally not gonna do this. The car is only 4 years old and still worth a decent amount of money. Knowing my luck if I dropped comp coverage I'd wrap the car around a cactus the next day.
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Dec 26, 2019 13:09
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KodiakRS posted:RE: The 6 month emergency fund. Where's the best place to put it? The purpose of an emergency fund is to be highly liquid, since you’ll need access to it on short notice. Keeping all in a savings account doesn’t feel great from an opportunity cost perspective, but try to remember you’re buying some financial security with that. The ever so slightly less conservative option is to ladder a series of CDs (like, buy a year long CD every three months, then rebuy when one matures). That being said, CD rates are so bad that you’re not doing a lot better than just dumping it into a savings account, and the hassle may not be worth it. The ladder structure means that, unless you’re very well off, you won’t be able to take advantage of the big deposit/long term requirements to get a CD to yield more than a trickle of money.
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Dec 26, 2019 14:46
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KodiakRS posted:RE: The 6 month emergency fund. Where's the best place to put it? My credit union offers some decent options that have a little better return but have penalties for early withdrawal. I'm not particularly comfortable with investing it in anything riskier but leaving it in a basic savings account seems like kind of a waste for money that I'm probably not going to need. Choose a high interest savings account and use that. There are banks that have 1.5-2% interest rates with little to no minimums. bankrate Mr Newsman fucked around with this message at 15:30 on Dec 26, 2019 |
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Dec 26, 2019 15:27
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KodiakRS posted:Totally not gonna do this. The car is only 4 years old and still worth a decent amount of money. Knowing my luck if I dropped comp coverage I'd wrap the car around a cactus the next day.  And for my inner pedant: comprehensive is everything that isn't a collision. The cactus would have to wrap itself around the car for it to be comprehensive. 
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Dec 26, 2019 17:05
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I like driving old shitboxes and have enough cash on hand to buy a replacement shitbox, so it makes sense to only cover what might happen if I cause an accident 
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Dec 26, 2019 18:41
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KodiakRS posted:3. My credit union (American Airlines) offers something called a "share certificate" it seems to be pretty similar to a CD but has better rates than the ones offered by my other bank (Wells Fargo). Is there any real difference in these other than the name and their rates?
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Dec 28, 2019 02:20
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Thanatosian posted:The name is probably the only real difference. Credit unions like to use different nomenclature from banks in order to remind their membership that they are owners in the credit union, and not just customers. "Share certificate" sounds like it's just trying to say you're a shareholder, but you'll need to read the terms to be sure. Yeah double check everything in the terms and conditions. When I was at a credit union it was basically their branding on a insured money market account. It was your share, dollar for dollar, of the overall pool of money as I recall. They like to remind you that you are in this with them, it's in theory a mutually beneficial relationship.
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Dec 28, 2019 16:16
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I have an HSA for the first time this year, and received a debit card for the account. What is the preferred way to use it as a young, healthy (knock on wood) person? Just put it in a drawer and let the balance build up until I have a health-related emergency? I know I can purchase stuff from Walgreens, Rx meds and such tax-free with the card, but it's probably better to save it for future hospital bills or larger issues, right?
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Jan 13, 2020 20:32
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Etuni posted:Just put it in a drawer and let the balance build up Do that for as long as you can, especially if you're already exhausting your other tax advantaged accounts. Future you will likely be able to spend all of that money + investment gains once you have enough money in that account to invest.
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Jan 13, 2020 20:47
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Depends. Technically, it's best to save all your receipts and wait until you retire to touch the money. It goes in pre-tax, and the gains/withdrawals are tax-free when used for qualified medical expenses. After a certain age (65?) you can take it out for non-medical reasons and it won't be penalized (but it will be taxed as income). The thing is, expenses don't expire... if you hang on to the receipts, you can use them any time in the future to take a tax-free distribution (edit: as long as you had an HSA at the time of the expense). The IRS may take notice if you suddenly start draining your accounts, but as long as you have receipts and you aren't double dipping then you're good to go. So HSA money is worth much more later on in life, especially if you can put it in to a mutual fund/other investment. Personally I use it pretty much as you're proposing... a buffer against unexpected medical bills. I shy away from it for small things, but for bigger bills I'm more likely to use it. It's good to keep the account balance at your deductible, and better to keep the balance at your out-of-pocket max. And it's good to start building it now so that later on when you DO have non-trivial expenses (getting old, having kids, etc.), then you'll have a healthy account to pull from. If your company matches contributions, then definitely take advantage of that. If you're truly young and healthy, though, make sure you're contributing a decent amount to your retirement accounts before you start padding your HSA. DaveSauce fucked around with this message at 20:51 on Jan 13, 2020 |
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Jan 13, 2020 20:49
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Etuni posted:I have an HSA for the first time this year, and received a debit card for the account. What is the preferred way to use it as a young, healthy (knock on wood) person? Just put it in a drawer and let the balance build up until I have a health-related emergency? I know I can purchase stuff from Walgreens, Rx meds and such tax-free with the card, but it's probably better to save it for future hospital bills or larger issues, right? You’ve got the right idea! HSAs are a great extra tax-advantaged space to invest with until you really need the money later. The longer you can keep it saved in the account the better. Most people will have no shortage of medical expenses later in life, if you can cover your present day costs with non-HSA dollars it keeps that invested money growing. And if you do have an expensive medical crisis in the near-term you’ve got an earmarked pile of cash to help.
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Jan 13, 2020 20:49
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I forgot about mine so good that the state had to send it to me as unclaimed property.
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Jan 13, 2020 20:49
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I use it for anything medically related. I am not the kind of person who is able to hold on to receipts for extended amounts of time.
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Jan 13, 2020 20:51
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Thanks all- I'm nowhere near maxing all my retirement accounts yet, but my work is pretty generous with HSA contributions so if I can stay healthy and not get hit by any cars this year, it'll put me in a good place for having a pile of money earmarked for just medical expenses in the future.
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Jan 13, 2020 21:04
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You don't need to be MAXING your retirement to contribute to your HSA, just make sure you're putting more than a few % in to retirement first. Are your employer's HSA contributions a match, or a totally free contribution? If it's a match, then you definitely want to contribute something so you can get that free money. Something to remember about HSAs though is that employer contributions count towards your yearly max along side your personal contributions.
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Jan 13, 2020 21:18
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They make a totally free contribution, and I'm also putting in $25/paycheck. If my math is right and I don't make any withdrawls, at the end of the year I'll have about $1,700 in the account. Not nearly enough for  healthcare, but it's something (to tide me over until socialized healthcare).
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Jan 13, 2020 21:40
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nelson posted:I use it for anything medically related. I am not the kind of person who is able to hold on to receipts for extended amounts of time. Same. Depending on the year I may use a limited FSA for my dental and vision, but otherwise all my medical expenses come from my HSA, beefcake I'm saving enough for retirement otherwise, and she trying to keep receipts for more than a coupe years (to withstand an audit). This January we switched to a new HSA, and I saw some posts saying the old provider's website suddenly lost all their digitally saved receipts somehow in the move away. I know at least one of them was using that as his way to save all his receipts to do later expensing down the road. Dino if it's recoverable or if he had his own copies saved off elsewhere, but I'm glad it's not my problem. Everything I've needed reimbursed has already been reimbursed...
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Jan 14, 2020 05:58
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This is BFC adjacent, but I am going to be selling my house this year and moving to a new town. Is there any BFC-approved advice regarding selling? Like, is a real estate agent a must? What fee is appropriate? That kind of stuff.
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Feb 7, 2020 15:44
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Hutzpah posted:This is BFC adjacent, but I am going to be selling my house this year and moving to a new town. Is there any BFC-approved advice regarding selling? Like, is a real estate agent a must? What fee is appropriate? That kind of stuff. Yes. Find the good one in town. Look at zillow's sold inventory by them and make sure you are happy with the price. (But for all you know there are a ton of concessions built in, the sale price is what they are paid by and how they advertise to you the prospective seller so they rarely try to lower that.) It's going to be 5-6% fee. If you are happy with any price then you can save 1-2% using a discount disappointment realtor off redfin.
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Feb 7, 2020 17:23
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PSA for anyone using Capital One 360 accounts: Apparently they have discontinued their old savings and money market accounts and replaced them with a new "Performance" account type. Additionally, they have been cutting the APR on the discontinued accounts. My savings is down to .6% for example (the performance version is at 1.60%, even more than my money market that has account minimums to hit 1.59%). Skimming through this reddit thread, it looks like you can't just switch the account type over, you have to open an entirely new account up (and then flip any account linking you have in place). https://www.reddit.com/r/personalfinance/comments/dnt4uc/capital_one_savers_switch_to_performance_savings/ I went through my emails to see if I missed a communication on this, but I sure can't find any kind of notice on it - figure I'm not the only one in this boat. I'm an old ING Direct customer that's just been sticking with it because the APR has been similar enough to not worry about rate chasing, but given how this went down and the fact that I'll have to redo account linking anyway, what's the current hotness for online checking/savings? A good website/app, ability to do single and jointly owned accounts, and a competitive rate are what's important to me.
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Feb 9, 2020 18:27
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Fancy_Lad posted:PSA for anyone using Capital One 360 accounts: Apparently they have discontinued their old savings and money market accounts and replaced them with a new "Performance" account type. Additionally, they have been cutting the APR on the discontinued accounts. My savings is down to .6% for example (the performance version is at 1.60%, even more than my money market that has account minimums to hit 1.59%). They're trying to shed the promises they made ING Direct customers. I moved to ally and it's better in every way. For now.
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Feb 9, 2020 18:34
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Thanks for the heads up. I've been getting back less each month, but I also started moving money into CDs, so my balance has been lower. I haven't checked to see if the rates have changed, but now I will. I like having all my accounts in one place, so I gotta decide if I should switch to the new account type or do the year long process of letting all the CDs mature and moving everything to somewhere else. (I think I know my answer  )
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Feb 9, 2020 20:32
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H110Hawk posted:They're trying to shed the promises they made ING Direct customers. I moved to ally and it's better in every way. For now. Same. Switched to Ally and haven't looked back.
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Feb 16, 2020 16:47
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H110Hawk posted:They're trying to shed the promises they made ING Direct customers. I moved to ally and it's better in every way. For now. I cancelled my account when they made the switch from a easy to read online banking site to some godawful flash mess. Good riddance.
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Feb 16, 2020 18:26
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It's been a year, but I'm back, mostly to follow up on this:Hoodwinker posted:But Chris is right, you'd spend all of your money even if your paycheck was half as small or twice as big. You have a fundamentally skewed perspective about your money. I honestly don't think there's anything we can say to make you get it. I think you could pay down this debt, max your 401k and IRA, and you'll still end up flat loving broke in your old age because the idea of worth is fundamentally broken to you. You're disconnected from this poo poo. You're worried about the day when you won't be making a quarter million dollars. What in the gently caress. A year later: I still have considerable student loan debt but refinanced it to a lower rate. That said, I increased my savings considerably, maxed my 401k, did a backdoor Roth, and have a considerable safety net. In the past year (the period I've been tracking my expenses), my net worth went from about -75k to +40k. Almost all of that was due to Chris's basic advice of "paying myself first," and some of it was because you were such an abrasive rear end in a top hat in this post that I wanted to be able to come back with a definitive "gently caress you." So, here is the start of that "gently caress you," I guess. I'll check back in next year. I also don't expect anyone to be impressed: my situation was always fixable if I stomached my job for a bit and didn't light all of my money on fire. I'm hoping to stay on another year or two now, so I can build up a sufficient nut to carry me forward no matter what I end up doing next. That's because, in fact, I do continue to worry about what will happen when I don't make a stupid amount of money. I worry exactly because I'm not a moron. Bushido Brown fucked around with this message at 22:17 on Feb 16, 2020 |
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Feb 16, 2020 20:33
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Bushido Brown posted:It's been a year, but I'm back, mostly to follow up on this:
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Feb 16, 2020 21:57
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gently caress yeah dude, now do it 25 more times and then retire!
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Feb 16, 2020 21:59
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Bushido Brown posted:Almost all of that was due to Chris's basic advice of "paying myself first," and some of it was because you were such an abrasive rear end in a top hat in this post that I wanted to be able to come back with a definitive "gently caress you." Spite: the most powerful of motivators.
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Feb 16, 2020 22:20
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Bushido Brown posted:It's been a year, but I'm back, mostly to follow up on this: Congratulations! Spite is a powerful motivator, and you learned an incredibly valuable lesson for what will seem like a bargain in 20 years time.
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Feb 19, 2020 20:27
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Are there any banks in the US that offer a business checking account that has no fees or minimums?
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Mar 3, 2020 19:58
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Rated PG-34 posted:Are there any banks in the US that offer a business checking account that has no fees or minimums? Try a local bank or credit union?
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Mar 3, 2020 20:07
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Why would a bank give businesses no-fee accounts unless that business has some kind of other relationship with the bank, such as a loan or line of credit?
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Mar 3, 2020 20:10
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Because they get to invest the balance? My company's bank provides a 'no-fee' account, but the fees for any extra services are not cheap.
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Mar 3, 2020 20:13
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Rated PG-34 posted:Are there any banks in the US that offer a business checking account that has no fees or minimums? Azlo Bank is online only, but you can see if it meets your needs.
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Mar 4, 2020 00:27
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Ancillary Character posted:Azlo Bank is online only, but you can see if it meets your needs. Cool, this may fit the bill if a local credit union doesn’t work out. Thanks.
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Mar 4, 2020 03:04
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taqueso posted:Because they get to invest the balance? My company's bank provides a 'no-fee' account, but the fees for any extra services are not cheap. Volcker rule makes this illegal.
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Mar 4, 2020 03:15
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