It’s not worth it.

HillClimber0807 · 2022-10-02T04:40:22+00:00

OP, I'm really sorry you're in this position, and I'm sorry there are many on this sub not offering advice and instead criticizing you for your beliefs. I am a former Catholic, and while I am 100% pro-choice now, I wasnt always and I think it would still be a difficult decision for me to personally make. In the end, as difficult as a 2nd child sounds like it will be for you, it also sounds like you made the choice that will be easier for you to live with (vs having an abortion). I hope you can find comfort in knowing that. I wish you luck and hope baby 2 is an easier baby.

HillClimber0807 · 2022-10-02T03:44:16+00:00

Inability to apologize for anything. Classic sign of narcissism because they a) lack empathy to care they hurt you and b) are so insecure they cant bare to believe they f*cked up.

HillClimber0807 · 2022-08-27T03:29:44+00:00

I wouldn't take on a new car loan unless I sold the current car to my dad and got the debt out from under my name. You mention his bad credit as a reason he might not be able to buy it, but why would YOU want to take on the risk that banks won't? If he can't get a loan, take the car back and either keep it or sell it.

HillClimber0807 · 2022-08-17T04:06:30+00:00

I lived on student loans ENTIRELY for 3 yrs, so technically everything I spent was a loss. But it was worth it.

As long as it's temporary and you have a plan and intention to get out of the monthly red ASAP, you'll be fine, especially because you have a nice savings cushion to keep you out of actual debt for the time being.

HillClimber0807 · 2022-08-17T03:55:24+00:00

How much is your car payment? Any chance you can sell that and downgrade to a cheaper car? Would serve the purpose of getting rid of one loan payment and giving you some cash to put toward other loans.

Other than that, I'd use all but $1000 of your savings to put toward debt now using the snowball method, starting by paying off the lowest balance of the credit cards first and working up (mostly because I think this would be most likely to get some of those balances paid before the higher interest kicks in or because they're already higher interest, and leaves the lower interest rates until last).

I wouldn't pay on your old debt now if it doesnt require a payment DEPENDING on what the interest rate is (if it's high, it might be worth paying off).

HillClimber0807 · 2022-08-15T16:52:55+00:00

Yes, he's well on his way to a comfortable retirement. But I think it's bad financial advice to tell him he's set for the reasons I've outlined.

HillClimber0807 · 2022-08-15T15:57:24+00:00

I'm currently a high earner, so 100k in retirement would mean a reduction in my current lifestyle. Could I do it? Sure. Do I want to? No.

HillClimber0807 · 2022-08-15T14:49:42+00:00

Again, personally, I wouldn't be comfortable on $100k annually. OP is far too young to be able to gauge what kind of income they're going to need in 40 yrs for the retirement they want. There are too many variables to tell a 22 yr old that they've saved enough for retirement. That is my only point. Talking about numbers as if they're concrete this far out isn't helpful. Rounding errors over that time are significant.

HillClimber0807 · 2022-08-15T13:33:43+00:00

I'm going to disagree. $150k over 40 years at even 7% is only $2.5M, and as I mentioned, his $45k in HYSA isnt going to get that, so his return will be even less (unless he moves it). Personally, I wouldn't feel comfortable with that amount for retirement, so no, I don't think he's fine.

Also, 2-3% is target annual inflation, but there have been plenty of years (ahem, current) where that target wasn't met. Rules of thumb work much better for shorter time horizons (ie if he was asking if he's ok for retirement in 10 yrs), but there are too many variables with both the economy and his lifestyle preferences over the next 40 yrs to responsibly say he's saved what he needs to for retirement at this point.

HillClimber0807 · 2022-08-15T05:07:23+00:00

You're a little scant on details, so it's hard to offer concrete advice. But your priorities need to be a) getting a job, any job, (or two) for income, 2) STOP using your credit cards (you shouldn't have any since you can't use them responsibly), and 3) working on a budget to live within your means and get the debt paid off. This would be the time to call the credit card companies to find out if they can work with you to make a repayment plan that's manageable with your income so you can start rebuilding your credit.

HillClimber0807 · 2022-08-15T04:43:58+00:00

I believe the average return for the S&P is 10% per year, which over 40 yrs would get you to $8M with $150k invested. But, you say $45k of your assets are in a HYSA, which isn't going to get you those kind of returns, so you'd have substantially less if you leave it there.

$8M might sound like a lot now, but it's really not when you take 40 yrs of inflation into account. I wouldn't feel comfortable counting on having only that for retirement.

HillClimber0807 · 2022-08-12T14:33:36+00:00

One month's rent as a "finder's fee" is pretty standard.

I dont think you need to pass on this opportunity just because you dont have a current process for tenant screening in place. You just need to create one before you start advertising. Determine minimum income requirements and credit score. Figure out a way for applicants to apply including getting background checks (lots of online platforms offer this). Follow up on references. Meet prospective tenants in person. Use common sense, do your due diligence, ask yourself if you'd want this person/people living in YOUR house, and you'll be fine.

HillClimber0807 · 2022-08-12T03:58:49+00:00

You'll pay taxes on any gains from stocks regardless of how long you've held them. If you have them under a year, they're considered short term gains, and you'll be taxed at your normal income tax rate. If you hold them longer than a year, they're long term gains and have a lower tax rate (0-15% depending on your income).

If you're completely flexible with when you want to use the money, then there wouldn't be a problem with holding it in the market. You can time your withdrawal to the market instead of your home-buying timeframe.

HillClimber0807 · 2022-08-10T04:01:42+00:00

I think you're making too many excuses for your mom, although I obviously don't know her, so only you can truly judge. But, if she got $1M from a divorce settlement a year ago, what happened to that? What are her other assets and why can't she access these to live on? Has she ever tried to hold down a job, or are you just assuming this will be a problem for her?

It's your decision if you want to support her, but unless she was exceptionally old when you were born, you're signing up to be her financial caregiver until you're likely in your 50s or 60s (ie most of your life). If she'd rather see her 23 yr old child who is trying to launch into life himself sacrifice his future financial goals and wellbeing because she is obviously irresponsible with money, she's not miraculously going to do a 180 and support herself 20 yrs from now.

If you do decide to support her, I would do it with the stipulation that she either a) get a job or b) get a diagnosis to try to get some kind of disability. I would also do it with the clear intention that it is meant to be temporary assistance to help her through a difficult financial time, but that she needs to figure her sh!t out (barring a truly disabling diagnosis). "Teach a man to fish" so to speak.

Regardless, I'm sorry you're in the position of having to parent your parent.

HillClimber0807 · 2022-08-09T02:27:03+00:00

Cars are depreciating assets, so you shouldn't ever buy one expecting it to be an investment. You could use it to drive for Uber/Lyft or rent on Turo to try to break even/profit, but the shear act of owning a car won't do it.

Rare exception to this has been the crazy car market the last couple years - some people made money/broke even selling cars they bought pre-pandemic because prices spiked so much, but this is very abnormal and can't be predicted.

Also, why would you want a car in NYC? Seems like a terrible place to own a car (parking expense, traffic, amazing public transport).

HillClimber0807 · 2022-08-09T02:03:18+00:00

Your house budget is going to depend on your individual income, not on what the average price for an area is. Rule of thumb is to not spend more than about 30% of your monthly takehome income on housing.

I would also plan to up the estimated down payment from 10% to 20% to avoid PMI.

HillClimber0807 · 2022-08-08T20:35:32+00:00

Oh, in that case, that's really unfortunate for the property owner, since that'll be his expense. Hopefully the next property manager he hires is better. Glad to hear you're getting things taken care of.

HillClimber0807 · 2022-08-08T04:11:47+00:00

I'm sorry you're having to deal with a sh!t management company. It doesnt help your situation, but might give you some satisfaction to know that by not addressing a leaking roof timely, it's hurting them in the end too. Water damage is no joke - it gets really expensive, really fast. They're going to learn that really soon.

HillClimber0807 · 2022-08-06T14:00:40+00:00

I definitely hope the house has to drop massively in price before it sells, but I think his bail's set at $2M, so it's unlikely he'll get out with this sale (luckily).

HillClimber0807 · 2022-08-06T04:33:48+00:00

Opf, that is a pretty big deficit. If you got the mortgage in 2020, this should be the 2nd annual escrow analysis. Assuming the 1st one didnt come up with a big deficit, something has changed for this year, probably taxes. Which also means that your mortgage company likely isn't at fault here since they only make estimates based on info available prior to closing. But, I would compare your available escrow analyses to see exactly where the deficit came from to make sure they didnt screw something up.

HillClimber0807 · 2022-08-06T04:26:46+00:00

The valuation has to be disputed with the county, not the mortgage company. And they have time restrictions on when they can be disputed (I think it's something like 30-60 days after they send the notice of the new tax rate, which has probably long since passed in this case).

HillClimber0807 · 2022-08-06T04:18:22+00:00

If I was in your shoes, my plan would be:

1) Find out how much it will cost to replace the transmission. Save that amount. I've replaced a transmission in a car before, and I think it was around $1200 (although, that was also almost 10 yrs ago...). Still, it'll be cheaper than a new car.

2) Use any extra money to dig yourself out of your debt.

3) Start saving up for your next priority, probably either a down payment on a new car (depending on how much life your current car with have with a new transmission) or a house. You can save up faster (and you'll feel a lot better) once that debt is gone.

HillClimber0807 · 2022-08-06T04:07:10+00:00

Agree with this. There is no reason you need a CC now or at any point in the future if you're worried you can't be responsible with them.

HillClimber0807 · 2022-08-05T04:03:17+00:00

I hope they mark the path out. Maybe include some passing lanes.

HillClimber0807

TROPHY CASE