ASK A FINANCIAL ADVISOR!! Money questions? Bring 'em on!!
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Threads like this remind me why I make such a great living....0
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Threads like this remind me why I make such a great living....
Vague post is vague0 -
Serious question...I enjoy my toys now and spending my money now. I have a small savings enough to get me through a month if I ever got laid off. I save what I can every month, and I've paid off and I'm working to pay off credit cards right now. The problem is I'm still in pretty big debt with 2 cars, RV, student loans, medical, fiancé's defaulted student loan, and now the IRS. I am still renting and don't have enough for a 10% down payment on a home (plus we don't know if we will be living in this area in the future). I'd like to go back to school to earn more money, but that means taking a huge cut in my current pay and racking up more student loans. I also want to buy more toys like a boat and trike. We found out I'm pregnant and I of course want to make sure that child has everything he/she will need braces, car, vacations, college. I'm under the belief spend it now while your young and can enjoy it. I have already planned I will be working until my late 70's. There probably wont be a retirement because it will probably be spent.
I guess what I'm asking is with so many options where do I go? I am not interested in live like a pauper saving every penny. I work too hard for my money not to enjoy it. I like the good things in life. I want the good things in life. I want this child to have what I never had.0 -
Simply put, most advisors suck at their job and do a lousy job on the relational side. My job is easy, just take of the people and they take care of me.0
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Serious question...I enjoy my toys now and spending my money now. I have a small savings enough to get me through a month if I ever got laid off. I save what I can every month, and I've paid off and I'm working to pay off credit cards right now. The problem is I'm still in pretty big debt with 2 cars, RV, student loans, medical, fiancé's defaulted student loan, and now the IRS. I am still renting and don't have enough for a 10% down payment on a home (plus we don't know if we will be living in this area in the future). I'd like to go back to school to earn more money, but that means taking a huge cut in my current pay and racking up more student loans. I also want to buy more toys like a boat and trike. We found out I'm pregnant and I of course want to make sure that child has everything he/she will need braces, car, vacations, college. I'm under the belief spend it now while your young and can enjoy it. I have already planned I will be working until my late 70's. There probably wont be a retirement because it will probably be spent.
I guess what I'm asking is with so many options where do I go? I am not interested in live like a pauper saving every penny. I work too hard for my money not to enjoy it. I like the good things in life. I want the good things in life. I want this child to have what I never had.
*mind explosion*
Well. Honestly, if you're unwilling to sacrifice, you're screwed. Regardless of how much money you make, if you continue spending on toys and avoiding taxes, you're heading for a world of pain.0 -
Serious question...I enjoy my toys now and spending my money now. I have a small savings enough to get me through a month if I ever got laid off. I save what I can every month, and I've paid off and I'm working to pay off credit cards right now. The problem is I'm still in pretty big debt with 2 cars, RV, student loans, medical, fiancé's defaulted student loan, and now the IRS. I am still renting and don't have enough for a 10% down payment on a home (plus we don't know if we will be living in this area in the future). I'd like to go back to school to earn more money, but that means taking a huge cut in my current pay and racking up more student loans. I also want to buy more toys like a boat and trike. We found out I'm pregnant and I of course want to make sure that child has everything he/she will need braces, car, vacations, college. I'm under the belief spend it now while your young and can enjoy it. I have already planned I will be working until my late 70's. There probably wont be a retirement because it will probably be spent.
I guess what I'm asking is with so many options where do I go? I am not interested in live like a pauper saving every penny. I work too hard for my money not to enjoy it. I like the good things in life. I want the good things in life. I want this child to have what I never had.
You need to learn to prioritize. But your situation is more complex than anyone is going to be able to help with on a random website. Go find someone you can meet with one on one and talk about prioritizing, budgeting, saving and debt management.0 -
How dare you challenge my deep understanding of the "sugar daddy" tax code... you are a terrible person who must be plotting against hard working trophy girlfriends EVERYWHERE!!!!Wow...I just read the last page of this post (page 5) and almost every answer on here is wrong or misguided. PLEASE don't follow advice on here. Most of it has been form bad internet sources with a complete misunderstanding of reality.0 -
Serious question...I enjoy my toys now and spending my money now. I have a small savings enough to get me through a month if I ever got laid off. I save what I can every month, and I've paid off and I'm working to pay off credit cards right now. The problem is I'm still in pretty big debt with 2 cars, RV, student loans, medical, fiancé's defaulted student loan, and now the IRS. I am still renting and don't have enough for a 10% down payment on a home (plus we don't know if we will be living in this area in the future). I'd like to go back to school to earn more money, but that means taking a huge cut in my current pay and racking up more student loans. I also want to buy more toys like a boat and trike. We found out I'm pregnant and I of course want to make sure that child has everything he/she will need braces, car, vacations, college. I'm under the belief spend it now while your young and can enjoy it. I have already planned I will be working until my late 70's. There probably wont be a retirement because it will probably be spent.
I guess what I'm asking is with so many options where do I go? I am not interested in live like a pauper saving every penny. I work too hard for my money not to enjoy it. I like the good things in life. I want the good things in life. I want this child to have what I never had.
*mind explosion*
Well. Honestly, if you're unwilling to sacrifice, you're screwed. Regardless of how much money you make, if you continue spending on toys and avoiding taxes, you're heading for a world of pain.
Not avoiding taxes just have to make payments to uncle sam. He gets a check this pay period.0 -
From the IRS website:
"Generally, the amounts an individual withdraws from an IRA or retirement plan before reaching age 59½ are called ”early” or ”premature” distributions. Individuals must pay an additional 10% early withdrawal tax and report the amount to the IRS for any early distributions, unless an exception applies."
http://www.irs.gov/Retirement-Plans/Plan-Participant,-Employee/Retirement-Topics---Tax-on-Early-Distributions
That link was just for the tax brackets in the U.S. Wasn't linking it for the early disbursement discussion.
Also, your link substantiated my claim. Scroll down to the Exception for Rollovers.
From the rollover section:
"in-plan Roth rollovers or eligible distributions contributed to another retirement plan or IRA within 60 days"
What that means is if it's either (A) Roth to Roth or (B) was contributed to a traditional plan within 60 days, there is no penalty. Otherwise there is for someone under 59 1/2. You're wrong here man. You can try and debate me all you want but I have handled many Roth conversions for clients. They pay the tax every time and, if they are under 59 1/2, they would pay a penalty as well.
Sorry if I'm beating a dead horse here, but I thought there was no penalty for a Traditional to Roth IRA rollover or conversion so I did my own research. Here's what I found...
From IRS Publication 590 (2012), Individual Retirement Arrangements (IRAs)
Converting From Any Traditional IRA Into a Roth IRA
Allowable conversions. You can withdraw all or part of the assets from a traditional IRA and reinvest them (within 60 days) in a Roth IRA. The amount that you withdraw and timely contribute (convert) to the Roth IRA is called a conversion contribution. If properly (and timely) rolled over, the 10% additional tax on early distributions will not apply. However, a part or all of the distribution from your traditional IRA may be included in gross income and subjected to ordinary income tax.
I've actually been considering converting my traditional IRA to a Roth, so I really do want to understand the consequences. Do you still say there will be a penalty assessed (I'm 30)?0 -
Serious question...I enjoy my toys now and spending my money now. I have a small savings enough to get me through a month if I ever got laid off. I save what I can every month, and I've paid off and I'm working to pay off credit cards right now. The problem is I'm still in pretty big debt with 2 cars, RV, student loans, medical, fiancé's defaulted student loan, and now the IRS. I am still renting and don't have enough for a 10% down payment on a home (plus we don't know if we will be living in this area in the future). I'd like to go back to school to earn more money, but that means taking a huge cut in my current pay and racking up more student loans. I also want to buy more toys like a boat and trike. We found out I'm pregnant and I of course want to make sure that child has everything he/she will need braces, car, vacations, college. I'm under the belief spend it now while your young and can enjoy it. I have already planned I will be working until my late 70's. There probably wont be a retirement because it will probably be spent.
I guess what I'm asking is with so many options where do I go? I am not interested in live like a pauper saving every penny. I work too hard for my money not to enjoy it. I like the good things in life. I want the good things in life. I want this child to have what I never had.
*mind explosion*
Well. Honestly, if you're unwilling to sacrifice, you're screwed. Regardless of how much money you make, if you continue spending on toys and avoiding taxes, you're heading for a world of pain.
Not avoiding taxes just have to make payments to uncle sam. He gets a check this pay period.
Ahh, gotcha.
Honestly though, your entire post made me cringe and almost have a panic attack.0 -
From the IRS website:
"Generally, the amounts an individual withdraws from an IRA or retirement plan before reaching age 59½ are called ”early” or ”premature” distributions. Individuals must pay an additional 10% early withdrawal tax and report the amount to the IRS for any early distributions, unless an exception applies."
http://www.irs.gov/Retirement-Plans/Plan-Participant,-Employee/Retirement-Topics---Tax-on-Early-Distributions
That link was just for the tax brackets in the U.S. Wasn't linking it for the early disbursement discussion.
Also, your link substantiated my claim. Scroll down to the Exception for Rollovers.
From the rollover section:
"in-plan Roth rollovers or eligible distributions contributed to another retirement plan or IRA within 60 days"
What that means is if it's either (A) Roth to Roth or (B) was contributed to a traditional plan within 60 days, there is no penalty. Otherwise there is for someone under 59 1/2. You're wrong here man. You can try and debate me all you want but I have handled many Roth conversions for clients. They pay the tax every time and, if they are under 59 1/2, they would pay a penalty as well.
Sorry if I'm beating a dead horse here, but I thought there was no penalty for a Traditional to Roth IRA rollover or conversion so I did my own research. Here's what I found...
From IRS Publication 590 (2012), Individual Retirement Arrangements (IRAs)
Converting From Any Traditional IRA Into a Roth IRA
Allowable conversions. You can withdraw all or part of the assets from a traditional IRA and reinvest them (within 60 days) in a Roth IRA. The amount that you withdraw and timely contribute (convert) to the Roth IRA is called a conversion contribution. If properly (and timely) rolled over, the 10% additional tax on early distributions will not apply. However, a part or all of the distribution from your traditional IRA may be included in gross income and subjected to ordinary income tax.
I've actually been considering converting my traditional IRA to a Roth, so I really do want to understand the consequences. Do you still say there will be a penalty assessed (I'm 30)?
See, that was my initial thought too. I'd call up a financial adviser at one of the larger financial institutions and put the question to them.0 -
I'm an open book with a couple of questions:
Single income family of 5, salary $145k plus 25% annual bonus. Age 35. Current retirement accounts total about $250k. I contribute 9% to my 401k, which just about maxes out my contribution, and my employer contributes 11% to my 401k as well (6% match plus 5% annual 401k bonus), so that's 20% of my income going to 401k, and I maximize 2 Roth IRAs, one for me and one for my wife, which is I think $6k per year each this year. I have $50k in a simple online savings account rot now as an emergency fund. Obviously, earns very little interest these days.
$300 per month goes into 529 college savings plans ($100 per kid) per month.
No credit card debt at all, mortgage of $1200 per month, two car payments with about 2% interest rates totaling about $750 per month.
My questions: where should my $50k savings go? Should it be invested somewhere?
Will I make it to retirement possibly?!?
What do I do with my excess money now? I am currently just dropping about $2k per month into that online savings account, because we don't need it for our regular living expenses, but maybe I should open a regular taxable investment account with that and just let that grow? What am I missing here? I'm thinking of also maximizing contributions to my HSA fund, since I have a qualifying health plan, to use that as tax-advantaged savings for retirement medical costs. Good idea?
Just throwing this out for opinions here...0 -
Explain why "cash value" life insurance is a scam.
How does one decide on what to invest in?
A.C.E. Certified Personal/Group FitnessTrainer
IDEA Fitness member
Kickboxing Certified Instructor
Been in fitness for 30 years and have studied kinesiology and nutrition0 -
I'm an open book with a couple of questions:
Single income family of 5, salary $145k plus 25% annual bonus. Age 35. Current retirement accounts total about $250k. I contribute 9% to my 401k, which just about maxes out my contribution, and my employer contributes 11% to my 401k as well (6% match plus 5% annual 401k bonus), so that's 20% of my income going to 401k, and I maximize 2 Roth IRAs, one for me and one for my wife, which is I think $6k per year each this year. I have $50k in a simple online savings account rot now as an emergency fund. Obviously, earns very little interest these days.
$300 per month goes into 529 college savings plans ($100 per kid) per month.
No credit card debt at all, mortgage of $1200 per month, two car payments with about 2% interest rates totaling about $750 per month.
My questions: where should my $50k savings go? Should it be invested somewhere?
Will I make it to retirement possibly?!?
What do I do with my excess money now? I am currently just dropping about $2k per month into that online savings account, because we don't need it for our regular living expenses, but maybe I should open a regular taxable investment account with that and just let that grow? What am I missing here? I'm thinking of also maximizing contributions to my HSA fund, since I have a qualifying health plan, to use that as tax-advantaged savings for retirement medical costs. Good idea.
Just throwing this out for opinions here...
First off, I want to congratulate you for having done so well in your finances. You are one of the few people that take their retirement seriously and you are doing everything you should be doing.
For the $50,000, I'd either leave it in the savings account or put a good chunk of it in a Money Market account or just leave it in cash. Emergency funds are not there to make money, they are for emergencies and need to be as liquid as possible.
As for the $2,000, I would use it to pay off the cars. $750/month is a good chunk of cashflow, so eliminating that ASAP will only put you in a better position.
I would ABSOLUTELY open an HSA once the cars are paid off!! It is very similar to a retirement account because you actually can invest the money you put in it, and unlike a FSA, the money isn't "lost" if you don't use it by years end. The annual contribution limit is $6,450 for a family and would be a great place to put part of that $2,000/month into. Invest it wisely, watch it grow (assuming no medical expenses come up), and it will be there for you for a major medical event.
The remainder I would start putting towards the mortgage and pay that off early if possible.0 -
Explain why "cash value" life insurance is a scam.
How does one decide on what to invest in?
A.C.E. Certified Personal/Group FitnessTrainer
IDEA Fitness member
Kickboxing Certified Instructor
Been in fitness for 30 years and have studied kinesiology and nutrition
It isn't a scam so much as it is, in most cases, an unwise insurance option. Term life is in nearly every case much better.0 -
Seems to me that you're in a pretty good place, especially for 35. Two things pop out at me. First, I would recommend increasing your emergency fund a little (a minimum of 6 months of expenses, but probably more considering you rely on one income and it would take a while to find another job at that income level if you were to be laid off). Second, do you have your life and disability insurance bases covered? What if something was to happen to you? Would your family be able to continue comfortably?0
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Explain why "cash value" life insurance is a scam.
How does one decide on what to invest in?
A.C.E. Certified Personal/Group FitnessTrainer
IDEA Fitness member
Kickboxing Certified Instructor
Been in fitness for 30 years and have studied kinesiology and nutrition
Did someone say it was a scam? I must have missed that....0 -
Seems to me that you're in a pretty good place, especially for 35. Two things pop out at me. First, I would recommend increasing your emergency fund a little (a minimum of 6 months of expenses, but probably more considering you rely on one income and it would take a while to find another job at that income level if you were to be laid off). Second, do you have your life and disability insurance bases covered? What if something was to happen to you? Would your family be able to continue comfortably?
Good points.0 -
How do you find a FA that you can trust? Are they all out "just to make money". Especially being a single woman, I'm always afraid that I'm not really getting the whole story in any situation.
Your best bet is to find a "Fee only" FA. Fee-only financial planners are registered investment advisors with a fiduciary responsibility to act in their clients’ best interest. They do not accept any fees or compensation based on product sales. Fee-only advisors have fewer inherent conflicts of interest, and they generally provide more comprehensive advice.
http://www.forbes.com/sites/davidmarotta/2012/06/11/fee-only-financial-planner-whats-the-difference/0 -
Seems to me that you're in a pretty good place, especially for 35. Two things pop out at me. First, I would recommend increasing your emergency fund a little (a minimum of 6 months of expenses, but probably more considering you rely on one income and it would take a while to find another job at that income level if you were to be laid off). Second, do you have your life and disability insurance bases covered? What if something was to happen to you? Would your family be able to continue comfortably?
Good points.
Life insurance is a good point. Now that I've lost 55 pounds, I should have a much easier time getting through underwriting!0
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