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Is it always better to pay down a higher interest rate loan or are there exceptions to this rule? I have two loans which I'm paying off. One is an unsecured loan (taken out to pay off my credit card debt that was at an extremely high interest rate) for $2,667.37 at 10.49% and the other is my car loan for $6,275.64 at 6.25%. I have been paying down the loan with the higher interest rate (more than three times its actual payment) but I just realized that it's now at the point where my car loan is accruing more interest daily because of its higher balance. Does this mean I should start targeting the car loan instead now or is it better to continue what I'm doing already?
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Jan 4, 2012 05:54
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Continue to pay off the higher interest rate loan. Even though it's fewer total dollars, those dollars are still costing you more in interest per dollar than the other loan.
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Jan 4, 2012 06:16
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I bought a stock last year for $500 and later sold it for around 375 (I was trying out my investment skills with a small test, I am sticking to mutual funds now). Do I need to do anything on my taxes if I lost money on the transaction? I've only filed taxes once in my life, last year, and everything was so simple, I pretty much just clicked through the turbo tax free program. EDIT: Oh ya, speaking of taxes I want to do mine as soon as possible so I don't need to think about it anymore. Is there a certain date employers release your W2 for the year, or is it up to the company?
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Jan 5, 2012 22:57
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Xguard86 posted:I bought a stock last year for $500 and later sold it for around 375 (I was trying out my investment skills with a small test, I am sticking to mutual funds now). Refer to the other stickied thread for more tax info, but tax forms need to be issued by January 31, although most employers will get them out sooner. You will use Schedule D to record your tax losses. You will need to know the proceeds received from sale of the stock and your basis. http://forums.somethingawful.com/showthread.php?threadid=3394641
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Jan 5, 2012 23:03
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Ah didn't see the other thread. Sounds simple though, thanks!
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Jan 5, 2012 23:23
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So through some idiocy, my W2 is floating through the US Mail with my personal identity fully visible to anyone. What service should I use to put a flag on my credit reports so people don't buy a house or something? I got the free IDProtect thing from Sony, but I'm kind of worried about my identity getting hosed over now.
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Jan 9, 2012 20:21
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This seems like the best thread to ask this in... like 2 years ago I saw a great flowchart style image in this very forum and am now unable to find it via archives or google. The image/flowchart had 3 very basic breakdowns: 1. Overspending and you 2. Oversaving and you 3. 'Just right' It's pretty fuzzy but I believe income was portrayed as water and the various places it needs to go as big and small pipes. It may not have been water - The one thing I really remember is on the miser/oversaving example there was a cork plugging it up with 'Out?' as the description. It's great and I have some 'retirement, fixed-incomes, and you' conversations coming up with my parents and in-laws that I'd love to use it for to get some laughs while asking questions like 'how long do you expect you'll live?'. I skimmed the OP and handful of the budget threads and could not find this thing... my firstborn to whoever can.
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Jan 9, 2012 20:49
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flyboi posted:So through some idiocy, my W2 is floating through the US Mail with my personal identity fully visible to anyone. What service should I use to put a flag on my credit reports so people don't buy a house or something? A heavy googling answered my question. https://www.alerts.equifax.com/AutoFraud_Online/jsp/fraudAlert.jsp https://www.experian.com/fraud/center.html http://www.transunion.com/personal-credit/credit-disputes/fraud-alerts.page
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Jan 9, 2012 20:54
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flyboi posted:So through some idiocy, my W2 is floating through the US Mail with my personal identity fully visible to anyone. What service should I use to put a flag on my credit reports so people don't buy a house or something? You can put a freeze on your credit report so it cannot be pulled unless you call them up first and unlock it. That is better than nothing. Other than that, it is important for all of us to periodically check our credit through https://www.annualcreditreport.com to make sure there are no mistakes and we recognize everything, but in your case it is even more essential. That said, I think the odds you will get away with this are pretty good, I’m not sure how visible it is, or what exactly you did, but there is a lot of info on a W-2 that would be disconcerting if it ever got in the wrong hands. They have your name, address, social security number, know how much you make and where you work. They don’t have your date of birth, but I don’t think it would be hard to get that if you knew everything else. I’m open to hear any other ideas anyone else has too.
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Jan 9, 2012 20:59
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I have equifax scorewatch already so I get alerts anytime something happens with my credit report but I knew there was some service that froze your credit reports which I was able to find.
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Jan 9, 2012 21:00
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Just got my W2 in the mail. Wow, my SSN, EID, wages and everything was exposed 
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Jan 9, 2012 22:10
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I'm in grad school and have my undergrad student loans on deferral. 5 loans in total - 2 from Direct Loans and 3 from Sallie Mae. One of the Sallie Mae loans is unsubsidized, the rest are subsidized. The unsubsidized loan is ~$1400 and is growing exponentially larger and stressing me out. My question is this: Can I start paying off just that one loan without taking the others out of deferment? When I look at my "estimated repayment schedule" it just shows what my minimum payment would be for all three of the Sallie Mae loans. I can't afford that payment, but I would easily be able to throw $75-100 bucks a month at the unsubsidized loan and pay it off quickly.
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Jan 10, 2012 00:37
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razz posted:I'm in grad school and have my undergrad student loans on deferral. 5 loans in total - 2 from Direct Loans and 3 from Sallie Mae. One of the Sallie Mae loans is unsubsidized, the rest are subsidized. The unsubsidized loan is ~$1400 and is growing exponentially larger and stressing me out. Yes, you can. Sallie Mae lets you "submit a payment" and target it at a particular loan. It would be a good idea anyways to pay off the interest (at least) so it doesn't capitalize (get rolled into the principal). You can do this in any amount and it won't affect anything other than you'll owe less in the end. Go for it!
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Jan 10, 2012 01:05
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Okay, great! So the loans will stay in deferral mode even if I start paying on them? I've just got this horror scenario in my mind that I'll start paying on a loan and Sallie Mae will be all "HAHA now we know you can pay so we're taking them out of deferral, give me 1/3 of your income every month!"
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Jan 10, 2012 01:34
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razz posted:Okay, great! So the loans will stay in deferral mode even if I start paying on them? I've just got this horror scenario in my mind that I'll start paying on a loan and Sallie Mae will be all "HAHA now we know you can pay so we're taking them out of deferral, give me 1/3 of your income every month!" I share your distrust of loan companies. However, your deferral is based on your in-school status rather than any specific ability to repay =) edit: you can be like my wife - she's been in grad school (phd) for more than 5 years and all of her loans are still in deferral. be glad that most of them are subsidized!
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Jan 10, 2012 01:37
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razz posted:The unsubsidized loan is ~$1400 and is growing exponentially larger and stressing me out. What kind of interest rate is the loan where only $1400 is growing fast enough to stress you out? Even if it's something ridiculous like 10%, that's still only about $150/yr. While it's a good idea to pay down the accumulated interest before it capitalizes, I wouldn't worry too much about paying the principle down early unless you already have a sizable cash cushion saved up (6+ months of expenses, IMO) and are in an otherwise relatively stable financial situation. Although, if you can comfortably afford to start paying that one high interest rate loan down early, great, do it. Guinness fucked around with this message at 01:42 on Jan 10, 2012 |
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Jan 10, 2012 01:38
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Guinness posted:What kind of interest rate is the loan only $1400 is growing fast enough to stress you out? Even if it's something ridiculous like 10%, that's still only about $150/yr. It's not that the interest rate is ridiculous - it's 6.8%. But I totally screwed up and have been ignoring it since I graduated in December 2008. So the loans have been on deferral for 3 years, and just that one loan has already got about $400 bigger  I don't have a huge safety net in terms of savings. I'd say 3 months, 4 if I REALLY cut back. I try to sock away a bit of money each month. I'm in a very stable but fairly low-wage job situation. razz fucked around with this message at 03:29 on Jan 10, 2012 |
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Jan 10, 2012 01:44
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I have the sinking feeling that my dad is right about this and I don't care about the money, I just hate it that he's right. I started work middle of August, 2011. Between then and Oct 1, I made over $5000. I was not yet eligible for a 401k. Should I have put 5k into a Traditional IRA or Roth IRA for FY2011?
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Jan 10, 2012 03:46
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totalnewbie posted:I have the sinking feeling that my dad is right about this and I don't care about the money, I just hate it that he's right. Tough question to answer. It really comes down to whether you can afford to do so or not. I think you'll find a lot of people feel that if you can fund it, you should. The good news is that you can still put money into a Traditional or Roth IRA for FY2011. It just has to be opened and funded by the tax filing deadline. So it's not too late.
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Jan 10, 2012 05:13
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I can afford it. Thing is, I already put 3k into a Roth so it sounds like I can only put 2k into a Traditional? I guess the reasoning is that if I put 5k into a Traditional, since my earnings for FY2011 is so low, I can basically deduct nearly all of my income? (My question isn't "Do I save money or not" but rather, "Which should I save my money in?")
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Jan 10, 2012 06:14
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It's not an easy question to answer-but the ideal sequence of events for a Roth IRA is basically you putting in the max every year for a while -> your income goes over the limit so that when you retire you have at least one source of income not subject to taxes. Traditional IRAs as I understand them may benefit more if your income does not go over the limit, but leaves you with taxable income once you start drawing it down. It comes down to whether you'll be paying higher tax rates at retirement age than at present. If yes, Roth should be ideal. So it's possible that if you have a good idea of your career trajectory an expected earnings you could know which was best for you-but it's unlikely.
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Jan 10, 2012 07:07
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If you didn't make much money at all this year, I think the Roth is the smarter option. I mean after your own deduction, how much tax would you really be paying this year? Odds are it would benefit you much more down the line.
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Jan 10, 2012 07:39
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Zeta Taskforce posted:You can put a freeze on your credit report so it cannot be pulled unless you call them up first and unlock it. That is better than nothing. Other than that, it is important for all of us to periodically check our credit through https://www.annualcreditreport.com to make sure there are no mistakes and we recognize everything, but in your case it is even more essential. That said, I think the odds you will get away with this are pretty good, I’m not sure how visible it is, or what exactly you did, but there is a lot of info on a W-2 that would be disconcerting if it ever got in the wrong hands. They have your name, address, social security number, know how much you make and where you work. They don’t have your date of birth, but I don’t think it would be hard to get that if you knew everything else. Thanks for the reminder, I haven't checked it since I bought my new house last year.
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Jan 10, 2012 14:21
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Nocheez posted:It sounds to me like you have some breathing room, but could be better off with a written budget. This is done. I made a generalized budget that turned out not to have much extra to put toward loans (saving against car maintenance; the car's been a real bear these past couple of years); decided I'd like to kill that 4.8 APY loan as quickly as possible and wrote a crash budget for that: code:We killed satellite TV which saves me $37/mo.; I'm checking quotes for new car insurance (have to get an inkling of good companies first, though); might fetch about $200 selling off some junk this month; and my net pay for January and February will be higher than budgeted because the payroll tax holiday is still in effect (also, 1 paid holiday each month). Also, having written this down makes it plain that my wage is less adequate than I previously figured. New job search is in progress.
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Jan 11, 2012 04:21
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I started a new job last year, with much better benefits and pay than any previous one I've had. As a result, my tax situation has gone from a "click next to continue" scenario to having actual investment accounts, which I've never dealt with before. So I'd like to hire a tax service to walk me through this year's taxes. Other than just going to H&R Block or looking up accountants in the phone book, I have no idea where to begin. Bonus points if I can find someone to advise me on my overall financial situation. I'm debt free aside from a small ($400) ongoing dispute with T-Mobile, and I'm saving for a possible down payment on a house or condo about 3 years from now. My credit score is low (601 last I checked) due to some student loans I defaulted on a few years ago (and the aforementioned dispute). I expect my income situation to be stable, so is 3 years of good credit habits realistic to boost it to around 675-700? EDIT: Also, if I want to retroactively max out my 2011 Roth, when do I file my taxes? I usually do them early as possible but won't have that done until March of this year. metasynthetic fucked around with this message at 16:45 on Jan 11, 2012 |
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Jan 11, 2012 16:41
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You have until tax day 2012 to max out your 2011 Roth contributions.
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Jan 11, 2012 16:49
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El_Elegante posted:You have until tax day 2012 to max out your 2011 Roth contributions. Right, but is it acceptable / advisable to file in February as if I had already contributed the $5000 when that won't be finished until a month later?
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Jan 11, 2012 17:18
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TurboTax is a lot cheaper than hiring a tax professional, and is extremely straightforward to use. An investment account or two is not very difficult to file on your taxes. With TurboTax or the like, it's literally "put the value from box A here, put the value from box B here" etc.
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Jan 11, 2012 18:51
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We do have a tax thread if you have any quick questions or if you get stuck on something. You should not have the expectation that anyone will do them for free, but furu and others know their poo poo, and you can hire him to do everything for you. I wrote most of the OP, but I’ve been out of the tax prep business for about 3 years now so I have not been keeping up with it much of late. http://forums.somethingawful.com/showthread.php?threadid=3394641
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Jan 11, 2012 19:20
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metasynthetic posted:Right, but is it acceptable / advisable to file in February as if I had already contributed the $5000 when that won't be finished until a month later? IANATP (tax professional) but I can't imagine they'd let you file your taxes reporting something you hadn't actually done yet (even if you planned to do it). Have patience!
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Jan 12, 2012 16:04
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Zeta Taskforce posted:We do have a tax thread if you have any quick questions or if you get stuck on something. You should not have the expectation that anyone will do them for free, but furu and others know their poo poo, and you can hire him to do everything for you. I wrote most of the OP, but I’ve been out of the tax prep business for about 3 years now so I have not been keeping up with it much of late. Of course, if I get professional help I'm willing to pay. I'll take a look around that thread first and see if it covers what I need to know, thanks!
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Jan 12, 2012 16:33
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I used to be a tax preparer, but I’m beginning to be rusty with tax questions that don’t affect me directly, so take it for what it’s worth, but especially with a Roth, I don’t think it is a problem. Keep in mind that contributing to a Roth has zero tax implications. You don’t even have to report it to the IRS.
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Jan 12, 2012 16:37
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metasynthetic posted:Right, but is it acceptable / advisable to file in February as if I had already contributed the $5000 when that won't be finished until a month later? It doesn't matter since it has no effect on your tax return. You don't have to report your Roth on your return unless it's a conversion. The custodian (Fidelity, Vanguard, etc) will report to the IRS however how much you contributed for that year. A lot of people fund their Roth IRAs with their tax return in fact.
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Jan 12, 2012 22:20
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Niwrad posted:It doesn't matter since it has no effect on your tax return. You don't have to report your Roth on your return unless it's a conversion. The custodian (Fidelity, Vanguard, etc) will report to the IRS however how much you contributed for that year. A lot of people fund their Roth IRAs with their tax return in fact. Bingo. Roth contributions have zero tax consequences (baring income limit BS) because it's post tax money anyway. Just like the IRS doesn't care how you spend the rest of your post tax money, they don't care about Roth contributions, either.
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Jan 12, 2012 22:43
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T0MSERV0 posted:Bingo. Roth contributions have zero tax consequences (baring income limit BS) because it's post tax money anyway. Just like the IRS doesn't care how you spend the rest of your post tax money, they don't care about Roth contributions, either. What about the saver's credit?
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Jan 12, 2012 23:06
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kaishek posted:What about the saver's credit? In the rare cases it applies, (people who tend to earn so little to qualify for it tend to be so broke that they can’t do an IRA and/or their job doesn’t come with benefits like a 401K), you would need to do an amendment.
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Jan 12, 2012 23:48
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I'm applying for personal health insurance (US) and want to know if I can raise the deductible on an existing policy so as to lower the montly premium while keeping the same policy. This is United Health One, to be specific.
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Jan 13, 2012 03:17
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T0MSERV0 posted:Bingo. Roth contributions have zero tax consequences (baring income limit BS) because it's post tax money anyway. Just like the IRS doesn't care how you spend the rest of your post tax money, they don't care about Roth contributions, either. Makes sense when you put it like that. I always just skipped over that part of my taxes so I just assumed it was in there. Thanks!
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Jan 13, 2012 03:24
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I just received a rather hefty (60k+) and unexpected cashiers check from my deceased grandmothers estate. I have no loving clue what to do with it and how to figure out if/how it will affect some things. I will have to deposit it I think because it is drawn from Comerica bank (Michigan bank I guess?) and their website says nothing even is close to me (eastern CT.) - Live in Connecticut,and not the rich part. As a family unit,we are normally barely above week to week, all 3 of us currently qualify for SNAP and Medicaid (will be 3yrs next month son has HUSKY A which is pretty much full coverage, wife and I qualify under HUSKY for Primary Caregivers) I work a 40hr week. - My wife does not work currently, just finished schooling and has to pass a test for certication - due to developments with our son (see next bullet point) during the course of her going to school, I don't think she will be getting a paying job in the near future. Thus there is the unsubsidized portion of her student loan, roughly $6k, which we recently submitted the paperwork to do the Income Based Repayment schedule. - My son is on the autistic spectrum, so on advice of his pediatrician and his (state-funded)therapists we just last week started the application process for SSI for him. - Have about $2500 debt between two credit cards. This is the only thing I know I want to pay off. -Other debts: monthly rent, other typical bills (electricity,car insurance, internet,phone, type stuff) I guess I am hoping for some good impartial advice here, because I'm pretty sure between my credit union and my stepfather (who is great with money stuff) I will get some good advice but I'm certain people here might give me some good alternative ideas what to do.
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Jan 13, 2012 21:44
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Coffee Wolf posted:I just received a rather hefty (60k+) and unexpected cashiers check from my deceased grandmothers estate. I have no loving clue what to do with it and how to figure out if/how it will affect some things. I will have to deposit it I think because it is drawn from Comerica bank (Michigan bank I guess?) and their website says nothing even is close to me (eastern CT.) I think you have an obligation to your grandmother to use this money wisely, and take time to reflect on what this means. I would pay off the credit card today. Next I would pay off the student loans. Then I would fund Roth IRA accounts for you and your wife. As for the rest, that could take multiple forms. If there is education that either you or your wife needs, you will always get a great return on investment by investing in yourself. You can also put it towards a down payment on a house. But other than paying off the debt, and the IRA accounts, which I would do today, I would put the rest in a money market or savings account and let it sit there. In 6 months it will still be there and you should have more clarity on the best way to honor your grandmothers memory.
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Jan 13, 2012 22:03
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