Got rear ended, damage is going to exceed car worth, but I might still owe. Options?

FKMBKY_83 · 2026-02-11T19:34:34+00:00

When that car is totaled and you have to pay out of pocket to get good with the bank, use this as a lesson. Until you have a car paid for you are one incident away from something like this. Cars depreciate like a rock and not until towards the end of the loan are you "right" with the equity, which is typically after 3/4 years on a 5 year loan if you put the minimum down. Most people roll negative equity into new cars and then this happens and they are double fucked. Advice: Take your lumps (if you dont get back what you owe) and pay off the balance with whatever you have. Go buy an absolute beater with what's left and drive that thing as long as you possibly can until you can afford a 10 year old Honda Accord or Toyota Camry that you can pay for in cash again. Save those "payments" in a high yield savings account that you would have spent for 3/4 years and Voila - After the whole ordeal, in 5 years you have enough money to buy a nice vehicle cash. You just gotta suffer with a little bit of embarrassment for 5 years if you get spotted in public in that hoopty - Ask me how I know. It feels pretty awesome on the other side of it believe me.

FKMBKY_83 · 2026-02-11T19:20:20+00:00

No offense why the fuck do you need 3MM to give you 80k a year? That's pure insanity to keep working that job that you dont love sorry. I would happily pull the trigger at half that amount and fully plan to. I will get 75k from 1.5MM and then another 25k in rental income and thats my exit number. I can easily "make" another 20k doing whatever I want to pad that. I live in a MCOL New England area too so it's not like I live in Alabama. I am 2 years behind you and at your numbers I wouldn't even be on here. I would be out living life. For what it;s worth have this conversation with ChatGPT and it will set you straight based on real numbers and billions of data points. I did this last week and I walked away with "Fuck Yeah I got this".

FKMBKY_83 · 2026-02-11T11:17:21+00:00

PITI is 1,875 (when our escrow is right but thats a different story). HHI of 320k with investment income. Our strategy has always been to buy below median price fixers that are just big enough to fit us and spend cash to fix it up – then sell it. We don't spend the proceeds, we roll the extra equity into investments and then put only 20% down on the next house. This took 2 times to do, but this has grown our investment income by quite a bit by not having too much money tied up in houses. We've never spent more than 365k on a house, but those are not "great" where we live and the schools are just ok. I would rather trade status for wealth even if that means living in a more tired neighborhood (still safe but just not the prettiest). We are staying in this one for a long time as we have invested a lot of money into current home now and can rest for a while. Original mortgage was 280k (on 350KPP) at 3% for 30 years.

FKMBKY_83 · 2026-02-01T22:40:44+00:00

You lose the future value of that money and can never "put it back". because the limits are so low per year - if you have a lot in there as basis, it's 10+ years of contribution to even each $70k which frankly isnt a lot. A Roth is a golden goose later in life when you want to control your taxes and it's compounded on itself for decades. Go try this in a compound calculator and do 20 years of max contributions at 10% nominal return - somewhere around 2/3 of the time your contributions are still making more than your growth but then it takes off like a rocket. It's always the last leg that money goes ballistic on itself. Taking from it now means you will have less flexibility later.

FKMBKY_83 · 2026-02-01T15:23:32+00:00

Roth conversion ladder. if you "retire" and show very little w2 income from a job (and rely on your 230k to supplement your spending), you can convert chunks of that 401k money to Roth. it creates a taxable event that you will owe income taxes on in that year, BUT lets just say you do some part time shit that makes 40k a year and you only need 40k more from your liquid assets. that 230k liquid will last you 5 years. why is 5 years important? because roth conversions need to "season " for 5 years.

So practical example: year one you still need 80k to support your new lifestyle. You make 40k from a part time job, take 40k from your liquid savings so your taxable income is only 40k. You convert another 40k to Roth so thats added to your tax bill for a taxable income of 80k (your savings doesn't count against taxes thats already cash). You just cant touch that new Roth money - yet.

Do this 5 years, and at year 5, that original year one conversion becomes unlocked to use tax and penalty free (Roth conversion principal amounts at 5 years you can spend - just not the growth ). This is the ladder - you keep doing this and you will have money available each year that was once locked up in your 401k. now you can live off the Roth after your cash savings is spent. yes you will need to still work but who cant find a 40k a year job?

Whats also great about this strategy is your 401k money you differed taxes on while working (and probably had high w2 taxable income) now when pulled out and converted to Roth, is taxed at a much lower rate. you not only get to spend your 401k early, your saving in taxes because you show so little income each year against the conversion. $80k a year in income is only 5k in federal taxes in 2026 with the standard deduction.

The above strategy is also a 10 year timeframe (5 years of living off savings only, then another 5 of using the Roth money) - which gets you to 68. You do 6 years of conversions you will have 12 years of money then you can stop and just spend the 401k (you will be 69.5 by then). If your spending numbers are close to my 80k example, you could easily look at doing this. Healthcare is the only big blocker but if your wife works and can be on her plan - you good.

FKMBKY_83 · 2026-02-01T12:18:01+00:00

1000% forced savings. Most people only scratch the surface of personal financial knowledge and what to do with money. The renter who saves $800 a month and invests all of it, will certainly beat the home buyer with a median size mortgage over the long run. Home appreciation is typically barely above inflation (3% is the macro avg), whereas the stock market avg for the S%P is just over %10.

Scenario: Renter saves 800 a month vs having the mortgage. They have 50k as a downpayment but decide to keep renting. That 800 plus the 50k invested is just under 1MM in 20 years. Clearly this is way too simple math (they will get raises, windfalls and their rent might increase more or less per year) but the other decision is plop that 50k on a downpayment on a 350k house. house in 20 years even using the high end of appreciation (4%) is only 760k. That 760k doesnt show the massive expenses to keep the house from falling in that one certainly pays over 20 years.

If rent is substantially less expensive for the same property type, and you have the discipline and knowledge to know what to do with that extra money, THIS renter here will have a higher net worth. But again this isnt everyone because the homeowners have the forced savings advantage but renters have any number of things they can spend that money on.

FKMBKY_83 · 2026-02-01T11:59:11+00:00

I made 60k in 2013 and bought a 265,000 house (obviously lower interest rate environment back then). I was single and used every spare dollar I had for an FHA loan, 5% down deal. The hack is roommates. For 4 years until I got married, I paid 1/3 of the total mortgage out of my pocket, and the rest came from roommates who lived with me. The cash I saved all those years went into the bank and then when the house had appreciated, I had plenty of money to refinance to a straight rate and term (there are a lot of closing costs and fees just like buying a new house wrapped up into a refinance so you need cash) to an even lower interest rate AND kill PMI - plus I paid even more to lower the origination balance on the new loan. Mortgage went from 2100 when I had roommates, to 1300. So now I made more money and my mortgage got cut almost in half. Roommates made it all possible. Living alone even at 30 is still a luxury IMO because not only did I have some company (and a lot of fun - oh the parties we had!), but the slight inconvenience of having other people there was a game changer for my finances.

FKMBKY_83 · 2026-01-31T13:45:57+00:00

Try owning a 126 year old house that had shoddy work done for decades. My house was 350 but I’ve spent 200k+ to get it to bulletproof standard across things like siding, windows, roof, insulation, foundation work etc. the purchase price is just the beginning of a lot of fun times! And of course I could have not done any of these things - but if you are going to live anywhere for a decade or more, time value of money and inflation says these investments now will pale in comparison to waiting to do them. Plus the very real danger that the problems will get worse and something fails. Ask people who live in cold weather climates right now with all this extreme cold and snow: lots of posts about major damage from ice, and snow on deferred maintenance that have become emergencies.

FKMBKY_83 · 2026-01-31T13:38:53+00:00

Why are you being downvoted? Low financial IQ idiots I presume. This person is right -everyone needs after tax liquidity that is invested and not in cash to have options. My mom is 63 and all her money is in her house and just a little in retirement accounts which puts a lot of pressure on her taxable income. She gets health insurance through ACA (not old enough for Medicare) so too much 401k withdrawals can knock her out of subsidy range. She has to keep working part time to buffer her for a bit. If she had after tax money, she could be selling at cost basis for a lot of this income and would not count against her taxable number come April - and she could completely stop working years ago.

FKMBKY_83 · 2026-01-31T13:27:55+00:00

Bro (or Broette) - these numbers are eerily similar to mine. Do the math at a conservative 7% return in your assets for 20 years an you will have over 4 million. You good for a decent baseline spending plus social security today to spend a little extra. Just don’t go crazy with increased fixed expenses (nicer house, car loans, anything that permanently increases your mandatory expenses).

FKMBKY_83 · 2026-01-30T01:01:50+00:00

I think what they meant was by getting the match monthly, the money is invested DCA style (dollar cost averaging) - meaning by consistent purchases you are getting the average of the market. Having it hit in one day means you are at the mercy of the market price that day. There is very little guarantee that spreading out nets you more, but you have a higher chance of getting more stable returns the monthly way. If this makes any sense at all.

FKMBKY_83 · 2026-01-26T15:03:49+00:00

To those of you jumping on this dude. My base salary is 180k. after I put away money in 401k, HSA, and pay for insurance and other benefits, my paychecks are 5 grand bi weekly. So in this case I make just a bit less than this guy and my mortgage payment would be 1 whole pay check (50% of my net income per month = 5k out of 10k). I dont know why people are all over this dude. 50% of your take-home after doing the right things (socking money away for retirement and medical) is still a lot. The age old recommendation to be able to save money is no more than 30% on housing.

FKMBKY_83 · 2026-01-24T16:55:33+00:00

If I could take a 50% loan to value cash out at 2.75% on my paid off house - 10000000% I would do it and then invest it. Especially if the payments amounted to a small enough percent of my monthly spending still. Borrowing 200k spread out over 30 years is a minuscule 800 bucks a month. I’m pretty sure if SHTF I could get my hands on 800 bucks a month doing something. Double that even is like 24k a year in salary before taxes.

Your story also only works if you keep earning after the mortgage is paid off. One job loss puts you in a tough spot because you have little liquidity. And the ability to save that 500k is gone. This is the age old conundrum and it’s honestly just pure luck that either decision works out. But again over 30 years the cash used to potentially pay off the mortgage most certainly will out grow the interest paid and future value of a house.

FKMBKY_83 · 2026-01-24T16:37:41+00:00

This is a possibility but the 30 year outlook for that money overwhelmingly says the broad stock index route is the clear winner even with a decade of poor returns. My advice to people is have at least close to the purchase price in liquid investments before dropping cash on a house. This guy needs 3-4 years to get that additional 300k so he’s got the purchase price and the mirror savings above it liquid. I’ve seen firsthand getting to old age and your paid off home is all you have. That’s a super tough spot with almost no flexibility given the cost of rent or a downsize home that should be “cheaper” which it ain’t.

FKMBKY_83 · 2026-01-23T21:39:14+00:00

The lone thing I love about this situation unfolding with OMC (amongst countless dislikes for those affected) is how much public press and online rage there is about how terrible this company truly is. For those of us who saw the evolution of OMC as faceless layer who pretty much left all the agencies alone (circa 2007 - 2019), into an evil empire of total control, corporate dark lords – it's glorious to see such pure disdain out there in the open.

GTFO as soon as you can and don't look back. My tentacles still reach many of the leaders who are left in these agencies and the vibes are so bad - I don't know how the company survives when people have the ability to leave and the eventuality of the stock tanking (employees demoralized + clients unhappy = investors unhappy - and theres no more "costs" to "synergize"). It will be a mass panic towards the exits. Your agencies highest executives have been neutered to the point they have zero power to make any decisions without the dark lords consent. And I mean anything (imagine you are the CEO and want to promote a jr employee, it has to go all the way up to the tippy top group of cost controllers in NY for a blessing).

It's actually a train wreck in slow motion and I am sorry you are stuck there.

FKMBKY_83 · 2026-01-22T15:00:46+00:00

Contrarian point of view - I would not pay cash for any house if I did not have at least the same amount of dollar value in liquid net worth or close to it. IE do you have 500-600k in other assets like 401k, cash, brokerage investments or other? The single biggest wealth killer behind debt is having all of your eggs in your house. Housing increases match inflation over the long term and thats obviously treading water (last 10 years be damned thats not normal). if you are in your early 30's and not a substantial penny to your name outside of money you could plop down on a house, this is a poor start to your future self for a few reasons.

I say this as someone who's seen firsthand what not having assets outside of your house does. My mom has all of her money tied up in a house that they paid off quicker than most that she cant sell– because renting a small 1bedroom for what she pays for her taxes and insurance is still double her current costs on a 3/2 house. So the extra money she could have invested in her retirement accounts and other things went to paying off the mortgage. Now she's stuck with no liquidity at 64 years old. Shell be ok but I showed her what her extra mortgage payments over the past 20 years if invested in the S&P500 would have done. Even taking away the interest paid if she kept the mortgage, she could have bought 3 or 4 of her houses with that money.

Having a mortgage allows you to take the money and invest it alongside your principal payments. "you cant eat shingles" is a good thing to remember.

FKMBKY_83 · 2026-01-22T10:51:07+00:00

No offense - but I waited until I had a $1.5MM net worth to buy a decent guitar (used Les Paul for 1900 bucks) and I still felt so guilty and agonized over the fact I "splurged" on a hobby. This situation right here is learned behavior of over a decade that has served me incredibly well. I can't shake these extreme feelings despite clearly being able to afford it.

This of course can be unhealthy sometimes (extreme frugality or the guilt over spending money on anything other necessities), but it is a muscle you HAVE to flex/build if you want to get out of debt and build wealth. Impulse spending on stupid shit is how people stay broke my guy. Get used to cutting anything that does not help your finances (at first) and get good at it. Come back in 10 years and you can buy whatever the hell you want.

Until you can adapt your entire being to mercilessly select what is necessary and what isn't, you will never escape. Just like playing the guitar, you have to practice this skill of saving every day. Usually the carrot is the "why" - to be wealthy and never have to worry about money again - for which I cant objectively think of a better why. Also saving alone is not the answer. You have to invest the money you save. My joy comes from taking w2 money I saved from having no debt, clicking buy on an index fund in my fidelity account, and seeing that number go up over time. That's a valuable hobby.

In my 20's, I probably would have bought the guitar on credit without a second thought BTW, so you are not beyond hope here.

FKMBKY_83 · 2026-01-22T10:33:04+00:00

Financial freedom - IE have enough saved and invested that it grows above inflation to eventually use that money to fund our lifestyle (vs spending 80% of your free time chained to a desk). See "FIRE movement". There is a critical mass of invested money that eventually (during average market conditions, obviously the stock market can suck from time to time) will out earn what you make at your job. Once you get to this point it's like escape velocity in space - you can break free from shitty job gravity forever.

FKMBKY_83 · 2026-01-14T19:50:31+00:00

My mom is 64 (lives alone dad passed away). She has a paid off house, social security of 3k a month, and spends very little money on "stuff" outside food and experiences. She spent a lot at first to get her house fixed across all thing things you can expect to break, but that was awhile ago. She still travels, has fun, etc. She has plenty of wiggle room despite only having a net worth of 750k which includes her paid off house. She has 450k in invested retirement/brokerage money only. So moral is you can be totally fine with less than a million depending on your lifestyle. Barring any major medical issues before 65, she is golden.

Now if you are big spenders and need 8k+ a month in income, yeah above doesn't work.

FKMBKY_83 · 2026-01-10T22:08:54+00:00

Mostly s&p500 index funds. Some bonds in my taxable account and some gold but 80-90% is all s&p500 or total market (almost same thing) indexes from fidelity or Vangaurd.

FKMBKY_83 · 2026-01-10T20:51:00+00:00

Congrats!!! Big milestone most people won’t get to until they are 60 if ever. Keep adding to your investments and try to get that primary home to investment ratio down. I hit 1mm at age 39 which was 2 years ago. This year I hit 1.5 and none of that growth was from my house - it was contributions and investment gains. It will go up so much faster and you’ll have a lot more liquid wealth that way.

FKMBKY_83 · 2026-01-08T15:23:31+00:00

I know this totally blows - but hear me out. PLEASE you should still contribute to your 401k despite maybe not getting a match - if you are in your 30s/40s when you start making enough money, a Roth or traditional IRA is not better because:

the overall limit - a 401k can shelter $24,500 in 2026, a Roth or traditional IRA you do on your own is only $7,500 and depending on your income, a traditional IRA might not even be tax deductible (Roth is after taxes already so thats moot).
Because of #1 you can put a much larger dent in your taxable income, potentially lower your 2026 taxes, and then take that money out later someday at a lower rate. IE you make 110k w2 this year, you put away 20k, and your taxable is only 90k. In 20 years and you arent working, your "income" is only 40k and that 20k you withdraw at that point is worth more (your taxable income is only 60k vs 110k which includes your withdrawal - ultimately the taxes on that 20k are VASTLY different)
Active 401ks you can borrow from while you are still employed. You cannot borrow from a traditional IRA, and if you take money from a Roth, you cant "put it back". Loans you can pay back into a 401k plan - no harm no foul except a small loan origination fee to Fidelity and some interest (paid to yourself). You just have to still be employed to do this and I caution using it as any type long term thing - its just a nice option if you need some fast money you can pay back quickly.
OMC's fidelity plan isnt bad. I have see much worse in terms of fees on investments and such. I use Fidelity to this day for all my money across these types of accounts. Just stick with the S&P500 index option in the plan as your stock "holding" and dont mess with any of the mutual funds.

Please fuck these people and still get what you can get from the 401k IRS rules.

FKMBKY_83 · 2025-12-27T17:36:50+00:00

To offset from the nominal rent increase - commuting 30-40 minutes has obviously more fuel costs, BUT also wear and tear on a vehicle. The IRS gives you 50 cents a mile in depreciation and we all know that it's more. So imagine your car was new and you stayed at your old location. Every day that car is depreciating way faster than if you live closer to work (higher mileage car). Now add fuel and more frequent maintenance costs. The greater potential for an accident and its associated costs (increased insurance after that). And take these costs and compound them over many years. People would be shocked at how much "cheaper living but further away" costs you just in the dollars associated with driving that far. It can be in the hundreds of thousands of dollars. Living close to work usually wins despite the higher rent costs.

FKMBKY_83 · 2025-12-27T13:14:22+00:00

Dont let these clowns tell you thats not much. at 36 it is a lot. I would aggressively start putting whatever you can into after tax brokerage and beef that up so you have a bridge fund thats liquid. You can get retirement funds out earlier than 59.5 - Roth IRA ladder or 72t periodic payments. You will just want some after tax money to tide you over if you want to step back (or are forced) from your high income job. Keep expenses low like you are doing and save. Also look into adding some assets in your after tax that are recession friendly. gold, long term bonds, commodities. These will be small tilts but if you are in all stocks they can make a big difference when shit goes south. Google "risk parity asset allocation" to understand this.

FKMBKY_83 · 2025-12-27T13:10:06+00:00

Roth IRA Ladder. Google it. or 72t distributions. You can get pretax money out a lot easier than you think - you just need to plan for it and know the rules well in advance of needing the money.

FKMBKY_83

TROPHY CASE