|
Its Chocolate posted:is there a rule against talking about crypto in this forum? I don't see any real threads for it just the parody one Crypto is parody to educated investors. But please, do continue.
|
#
?
Dec 23, 2020 22:59
|
|
|
|
| # ? May 20, 2024 22:12 |
|
|
Ah but you see, if I buy from a fool selling at $20,000 and find another fool who will pay me $25,000, won't I be quite the wise man!
|
|
#
?
Dec 23, 2020 23:03
|
|
|
Motronic posted:Crypto is parody to educated investors. I just needed to buy some because it was the only payment someone accepts. I don't gently caress with it
|
|
#
?
Dec 24, 2020 00:05
|
|
|
Its Chocolate posted:I just needed to buy some because it was the only payment someone accepts. I don't gently caress with it Assuming you're in the US, use Coinbase. It's about as legit as you can get. Also buy your drugs from someone else so you don't have to touch the butts.
|
|
#
?
Dec 24, 2020 00:14
|
|
|
ranbo das posted:Assuming you're in the US, use Coinbase. It's about as legit as you can get. thanks. how long does it take to do the verification bullshit
|
|
#
?
Dec 24, 2020 00:19
|
|
|
Hey all, I'm a babby goon who just got his first big boy job fresh out of college. I keep hearing stuff about Acorns and other investment-y savingsy type things. Are they worth all the hype? I already mentally round up any purchases I make to the nearest dollar or the nearest ten dollar just to have a bit of cushion on any budget I make, and having that cushion go into some type of automatic investment thing seems better than having it stay in my checking account. I imagine because of how small the amounts going in are, the returns are miniscule, but if someone out there can confirm that it's actually a decent app or tell me if it's something to steer clear of for someone just starting out in his career, I'd appreciate it
|
|
#
?
Dec 24, 2020 09:31
|
|
|
One of these BFC threads used to subtitled "Acorns are for squirrels" if that gives you a hint on whether to sign up for them. First of all, do you have a budget of your monthly incoming vs. expenses, including infrequent recurring expenses (insurance, special taxes, annual fees/memberships) and infrequent less-predictable expenses (vehicle maintenance or repairs, replacement clothing/appliances/etc., other emergencies)? Do you have an emergency fund saved up for 3-6 months expenses (not income--just expenses)? The OP of this thread has some other good resources on where to start.
|
|
#
?
Dec 24, 2020 14:45
|
|
|
Spaced God posted:Hey all, I'm a babby goon who just got his first big boy job fresh out of college. I keep hearing stuff about Acorns and other investment-y savingsy type things. Are they worth all the hype? I already mentally round up any purchases I make to the nearest dollar or the nearest ten dollar just to have a bit of cushion on any budget I make, and having that cushion go into some type of automatic investment thing seems better than having it stay in my checking account. I imagine because of how small the amounts going in are, the returns are miniscule, but if someone out there can confirm that it's actually a decent app or tell me if it's something to steer clear of for someone just starting out in his career, I'd appreciate it Congratulations on your graduation, and on finding and starting a new job in hellyear! Assuming you're coming into this from typical college student finances, it's not a good idea to mix investments and immediately accessible savings. Investments carry some risk, and the bigger the return, the bigger the risk. That typically evens out over time, so you want to invest money you're going to keep around for the long term. But, for something like an emergency fund, it's better to keep it stable - you don't want to go into a 2008-style crash with the stock market tumbling out from under you right when the job market gets rocky. Emergency savings, and money you might need in the short term, are better off in FDIC-insured "high yield" savings accounts like what you can get from Ally or Goldman Sachs/Marcus. You won't get much in the way of returns, and might even see inflation eat a bit at what you've saved up, but at least you know that the federal government will keep the floor from dropping out from under you. (Incidentally, this all changes if you're obscenely rich and have investments that far outstrip what you could spend in a year, but I'm guessing that's not you if you're asking for advice here instead of at the family office) Your savings priorities right now should probably be: * Get some money trickling into an emergency fund in a high-yield savings account. Being able to throw money at serious problems in an emergency makes life a whole lot easier * If you have any high-interest student loans or credit card debt kicking around, killing that off * Start saving and investing for retirement right now, in whatever tax-advantaged accounts are available to you (IRA or 401(k), probably, maybe something like a 403(b)). Thanks to the magic of compounding returns, you'll never have a better time to put money in than right now If you're in a corporate job, you can probably set up paycheck withholding for retirement and split direct deposit to land money straight into your e-fund to make sure you never even see that money in your checking account, which is a great way to fight off lifestyle inflation. Once you've got that emergency fund built up, any debt is under control, and you're hitting whatever target you set for retirement contributions, then it's a good idea to start thinking about how you'll invest the excess in shorter-term taxable funds. That's probably a few years out from graduation at minimum. Oh, and regarding Acorns in particular: one key part of their sales pitch, and the part that gets people here kind of angry, is the idea that savings and investing is some big complicated thing that's hard to think about (so they'll handle it for you! so easy, download now and sign up for the tiny monthly fee!). That's really not true at all. The theoretical underpinnings of good personal finance are very, very simple, as long as you're making enough to get out of paycheck-to-paycheck territory. Acorns just scrapes a monthly fee off the top for doing things that are easy to do yourself, and their approach doesn't lend itself well to actually planning for the future. They might be better than no savings at all, but you can do a lot better than that, and it's straightforward to automate it yourself.
|
|
#
?
Dec 24, 2020 15:44
|
|
|
Make sure you are aware of your employer's retirement contribution matching policies and you are taking advantage!
|
|
#
?
Dec 24, 2020 17:26
|
|
|
Thank y'all for the input! I'm fortunate (well, unfortunate because it involved some real lovely circumstances) enough to make it through college without any debt, so that's one expense I already have off my plate. I'm already looking into some emergency funds with high yield savings. I only have about $5,000 in savings right now with a (once my job starts) a gross pay of $50k/yr, so I'll definitely be setting aside some for that in my budget. My job offers an opt-in 403(b), but my job is only guaranteed for a year due to budgeting and *gestures at everything.* I'm guessing I should jump on that even if there's a chance I won't be working with them after CY2021? Sorry if all these are like, super super newbie questions, but I hope that by learning this stuff before I turn 25 will help me
|
|
#
?
Dec 24, 2020 21:47
|
|
|
Spaced God posted:My job offers an opt-in 403(b), but my job is only guaranteed for a year due to budgeting and *gestures at everything.* I'm guessing I should jump on that even if there's a chance I won't be working with them after CY2021? At minimum, if the job offers matching on retirement contributions, you should maximize your match so long as it doesn't put you in other financial jeopardy (e.g. requiring you to take on credit card debt). It's free money.
|
|
#
?
Dec 24, 2020 21:55
|
|
|
Spaced God posted:Thank y'all for the input! I'm fortunate (well, unfortunate because it involved some real lovely circumstances) enough to make it through college without any debt, so that's one expense I already have off my plate. I'm already looking into some emergency funds with high yield savings. I only have about $5,000 in savings right now with a (once my job starts) a gross pay of $50k/yr, so I'll definitely be setting aside some for that in my budget. How. Dare. You. A newbie in the newbie thread?! Great news, you're already ahead of your peers, some of whom will sign up to give EdJones 1-3% of their life savings. There is a really good flow chart in the /r/personalfinance reddit that shows everything you need to do to be a financially stable adult. It might seem daunting at first but just zoom in and go one box at a time. It really is a step by step guide. If you make it all the way to the bottom in a year, congratulations! That's the hookers and blow phase. Don't worry if you don't make it there for the first several years of your career. One thing is - does your job offer a government pension? This changes things slightly. Go to vanguard and sign up for a Roth IRA account right now, put in $200 or whatever you have lying around in the couch cushions. Got $1000 to spare for 45 years? Stuff it in https://investor.vanguard.com/mutual-funds/profile/VLXVX - congratulations, now you're ahead of most of america. Terrifying isn't it? Only have $200 to scrape up? Buy 1 share of https://investor.vanguard.com/etf/profile/vti . Does your 403b have a match? Yes? Sign up, get the match.
|
|
#
?
Dec 24, 2020 22:07
|
|
|
Spaced God posted:Thank y'all for the input! I'm fortunate (well, unfortunate because it involved some real lovely circumstances) enough to make it through college without any debt, so that's one expense I already have off my plate. I'm already looking into some emergency funds with high yield savings. I only have about $5,000 in savings right now with a (once my job starts) a gross pay of $50k/yr, so I'll definitely be setting aside some for that in my budget.
|
|
#
?
Dec 25, 2020 13:40
|
|
|
I'm not really sure where this goes, so I'm going to put it here. How bad is it to be in your 20s and not be financially independent from your parents? I'm 26 and I'm not really financially independent from my parents. I had some issues earlier that stopped me from completing my college classes, though I was close to completing last semester. In the meantime I didn't bother to really look over my financial life, especially since I was in school. My parents have covered basically everything for me from tuition to insurance to an allowance. ($200/month) Now I'm working full-time for the first time in my life this year. I'm an Americorps working for under minimum wage for $1200/month. (More like $1100 after deductions) I'm covering my rent and groceries, but my parents are still paying for everything else. (Phone plan, health/dental insurance, driving insurance - though I'm driving more like once a month right now) They're also still giving me my allowance, and since they messed up my income taxes last year I convinced them to give me an extra $100/month because I no longer qualify for food stamps. How bad is it that I'm not independent from my parents? They seem pretty happy to provide for me. I think the extra $200 really helps me not worry about things. I even offered to pay for my own $25/month phone bill but my dad declined. But something doesn't feel right. Not really sure what I should do.
|
|
#
?
Dec 27, 2020 03:01
|
|
|
Nirvikalpa posted:I'm not really sure where this goes, so I'm going to put it here. I think it depends - are there any strings attached? Are they using it to manipulate you in any way? If you're comfortable with it and they're not doing it to exert financial control over you it's probably fine.
|
|
#
?
Dec 27, 2020 03:11
|
|
|
Nirvikalpa posted:I'm not really sure where this goes, so I'm going to put it here. We are in a capitalist hellscape, take whatever help people better off than you are willing to give. If you're willing to cut out some expenses, see if maybe instead of having a car you could get away with public transit/riding with friends/carshares/rideshares. Going without a car cuts a ton of expenses (maintenance and insurance add up, even if you're not using it and living somewhere where you don't have to pay for parking).
|
|
#
?
Dec 27, 2020 04:31
|
|
|
The Slack Lagoon posted:I think it depends - are there any strings attached? Are they using it to manipulate you in any way? Not really, which really surprised me Thanatosian posted:If you're willing to cut out some expenses, see if maybe instead of having a car you could get away with public transit/riding with friends/carshares/rideshares. Going without a car cuts a ton of expenses (maintenance and insurance add up, even if you're not using it and living somewhere where you don't have to pay for parking). I don't have a car. Sometimes I borrow someone else's car because the cheapest grocery store in town is outside of walking distance. My sister and I have "our" car at home but I'm not going to be back for several months and my folks fine with maintaining the car when neither of us are at home.
|
|
#
?
Dec 27, 2020 05:53
|
|
|
If the situation isn't fragile / abusive / emotionally loaded, just run with it for now. That isn't to say you don't look for ways to start gaining some independence where you can by gaining experience at this job and using it to find a better-paying one, but:Thanatosian posted:We are in a capitalist hellscape, take whatever help people better off than you are willing to give. This bears repeating. The safety net / small cushion your parents are providing you is worth far more than its immediate monetary value. They're shielding you from the extremely high costs of being poor.
|
|
#
?
Dec 27, 2020 06:06
|
|
|
Nirvikalpa posted:Not really, which really surprised me As long as it is not a emotional family strain or something nothing wrong with it. American society gives the perception that you should move out at all costs at a certain age, but as others are noting, America has a ridiculously terrible safety net even when we aren’t in a pandemic. This is def not the time to strike out on your own if you don’t have to. I think the biggest question long term is are you hedging yourself for the future? Which I think is three things for you: -Debt: just checking , do you have any debt or credit card debt? -emergency savings: having an emergency fund is #1 priority. -long term income prospects: you are not earning enough to live on your own. Thats ok for now. Do you have a goal on how to fix that over the next xx number of years? I think I detect guilt that you are relying on your parents. Honestly, you are already taking a right step by not just assuming they should be supporting you. It sounds like they are supporting you out of genuine care, best way to “pay it back” (not feel guilty) is use it for what it is there for: they’re supporting you so you can have an opportunity to take steps forward at a reasonable pace.
|
|
#
?
Dec 27, 2020 15:37
|
|
|
In America now we generally think it's normal for people to move away from home as young adults, but that's really only a late 20th-century America thing. In every other time and place, it's entirely normal for people to live with their families quite a bit longer than that.
|
|
#
?
Dec 27, 2020 16:26
|
|
|
From a pure beep-boop finance optimizing robot perspective, if someone's willing to give you money and pay for expenses under acceptable terms, you should take that deal. The human side is what you really need to think about here, and that's much more complicated than anything you can fit into an excel model. About all we can say here is that communication and planning are probably going to be really important. If your parents are generally "numbers first" thinkers, they'd probably really appreciate putting boundaries on the help and talking about your plans to lower the expected dependence on them over time. If they're "relationships first" thinkers, explicitly communicating your plans that might hurt their feelings, because they want to always feel like they're there to provide for you even if you need it less and less. Either way, you should make those plans, but how you talk about them is going to need to change based on how your parents feel. For what it's worth, I work in a white collar office with a bunch of people who have relatively stable, COVID-WFH-friendly, well-paying jobs in their 20s. The majority of the single folks, and a couple of people in marriages or serious relationships, have moved back in with their parents for as long as we're in WFH-lockdown and are either saving emergency funds like mad or murdering their student loans. Having parents who can afford to help you out through tough spots while you establish yourself, and a good relationship with those parents, is a huge privilege. Take advantage of it for now if you can, be thankful, and when you're successful, remember how you came up. Duckman2008 posted:I think the biggest question long term is are you hedging yourself for the future? Which I think is three things for you: This is good advice in general, but one of the biggest advantages of having parents or other people in your life willing to help out is that the emergency fund isn't as critical - if things collapse, then they can (hopefully) step in and help out from their own savings, or if everything just falls apart, let you move back in with them. That gives a safety net for taking bigger risks, like moving out before you have an emergency fund.
|
|
#
?
Dec 27, 2020 17:03
|
|
|
Nirvikalpa posted:since they messed up my income taxes last year Can you elaborate on this? It's the biggest "red flag" I see. Did they claim you as a dependent? Do you let them do your taxes? This would be a good time to look at the whole picture - them claiming you as a dependent might be lowering the aggregate amount of money your family unit brings in via what passes as social welfare in this country, or your parents could be hilariously high earners who are saving money at 40%+ reducing their state+federal income taxes.
|
|
#
?
Dec 27, 2020 17:40
|
|
|
H110Hawk posted:Can you elaborate on this? It's the biggest "red flag" I see. Did they claim you as a dependent? Do you let them do your taxes? This would be a good time to look at the whole picture - them claiming you as a dependent might be lowering the aggregate amount of money your family unit brings in via what passes as social welfare in this country, or your parents could be hilariously high earners who are saving money at 40%+ reducing their state+federal income taxes. Yeah, I let them do my taxes. But I haven't had any major sources of income. In the 2017-2018 school year I had a part time college job and I flipped some stuff on ebay and didn't pay taxes for. In 2018 and 2019 I got a grant for attending a college summer program of $4000 each year but I was told that was technically not income. In 2020 I also do not have an income either, I have a "living allowance." What my dad does is declare my income to be a rather high amount (no idea how high) and pay taxes at that rate because he says it will allow me to get more from Social Security in the future. I think my dad is pretty good with money and I have been lazy so I just haven't bothered to look into this. However, because he declared my income to be so high, I no longer qualify for food stamps.
|
|
#
?
Dec 27, 2020 19:58
|
|
|
Nirvikalpa posted:What my dad does is declare my income to be a rather high amount (no idea how high) and pay taxes at that rate because he says it will allow me to get more from Social Security in the future. I think my dad is pretty good with money and I have been lazy so I just haven't bothered to look into this. However, because he declared my income to be so high, I no longer qualify for food stamps. Oh dear, this just took a turn. This is called tax fraud and is a serious federal crime. I hope you're not just trolling because drat.
|
|
#
?
Dec 27, 2020 20:02
|
|
|
Your dad's using you to reduce his taxes, as far as I can tell. Textbook frah-ood
|
|
#
?
Dec 27, 2020 20:03
|
|
|
Nirvikalpa posted:I think my dad is pretty good with money If being bad with tax fraud is being good with money......
|
|
#
?
Dec 27, 2020 20:08
|
|
|
Ok I figured. I need to have a conversation with my dad about this today.
|
|
#
?
Dec 27, 2020 20:15
|
|
|
Nirvikalpa posted:(Quite a tax story) 
Referee fucked around with this message at 21:08 on Dec 27, 2020 |
|
#
?
Dec 27, 2020 20:16
|
|
|
 Part of being an adult is doing your own taxes. You should be the only one doing them. You are probably owed more money from those than the living allowance they're giving you these days.Go to the the social security website and sign up for an account. Get your annual statement from the website and see. Go to the IRS website and download your tax transcripts.
|
|
#
?
Dec 27, 2020 20:32
|
|
|
I'd also recommend editing your posts to maybe not admit to committing crimes.
|
|
#
?
Dec 27, 2020 21:06
|
|
|
Oh boy!
|
|
#
?
Dec 27, 2020 21:14
|
|
|
I called my dad and he said he reported the income in a 1099 form. I'm guessing this still isn't ok?
|
|
#
?
Dec 27, 2020 22:13
|
|
|
drat that took a turn
|
|
#
?
Dec 27, 2020 22:17
|
|
|
Nirvikalpa posted:I called my dad and he said he reported the income in a 1099 form. I'm guessing this still isn't ok? did he give you the amount of money you supposedly earned via 1099? if not, for sure no
|
|
#
?
Dec 27, 2020 22:17
|
|
|
Dying to know the ein he put on that alleged 1099. You at a minimum need to put a stop to this for 2020, and should probably amend your 2019 taxes. Dad probably doesn't need to go to jail over this but you need to not be a witting accomplice.
|
|
#
?
Dec 27, 2020 22:44
|
|
|
Ok, this is very informative to hear. I'm going to have another conversation with my dad and tells him even if he means well I should be the one to be in control of my taxes for the future.
|
|
#
?
Dec 27, 2020 22:44
|
|
|
KYOON GRIFFEY JR posted:drat that took a turn Hoooooly poo poo. Yeah, I wasn't considering that angle. Silly me, not looking at my kid as future money laundering.
|
|
#
?
Dec 27, 2020 23:15
|
|
|
H110Hawk posted:Dying to know the ein he put on that alleged 1099. You at a minimum need to put a stop to this for 2020, and should probably amend your 2019 taxes. Dad probably doesn't need to go to jail over this but you need to not be a witting accomplice. He said he put like $40k.
|
|
#
?
Dec 27, 2020 23:18
|
|
|
Nirvikalpa posted:He said he put like $40k. You should verify this via the methods I listed above. Also add a pin to your tax return, I forget how but do it. Lock your credit at the big 3 reporting companies. Do not lose that pin.
|
|
#
?
Dec 27, 2020 23:28
|
|
|
|
| # ? May 20, 2024 22:12 |
|
|
Assignment of income is when a higher income earner "assigns" their income to a lower income taxpayer. The intent is to shift the income from the top marginal tax brackets of the high earner to the much lower tax brackets of the low earner. It is not allowed: https://en.wikipedia.org/wiki/Assignment_of_income_doctrine Attempted assignment from a parent to a child is so common that it is often the example used to illustrate the concept.
|
|
#
?
Dec 28, 2020 06:15
|
|
