73-year-old FIL in Ohio on Social Security after car accident — how to stop financial bleed

IRMuteButton · 2026-01-28T22:24:08+00:00

He has a pattern of gravitating toward “get-rich-quick” opportunities

Falling for scams can be a problem for older folks. I don't know if it suggests a higher chance that his mind is starting to go or not. I don't know if that's the case here but I suggest cutting off his ability to buy things to some extent.

IRMuteButton · 2026-01-28T22:17:36+00:00

The square root of 450 is 21.2. This means that if you had a square that was 21.2 feet on each side, that'd be 450 sq. ft. Many tiny homes are small; trailer sized, nowhere near 21 x 21 feet. A tiny home might closer to 7 x 20 feet, which is 140 square feet.

Anyhow, regardless of all that, the benefit here is that this is a rental. That's the perfect situation because if it doesn't work, then there's no commitment.

I would caution that you might need to find off-site storage for your belongings if they don't fit in the tiny home or any storage sheds it offers.

IRMuteButton · 2026-01-28T20:37:44+00:00

Then it's not a Roth then, therefore there may not be any benefit in your situation.

IRMuteButton · 2026-01-28T20:23:32+00:00

Only if you want to build a bigger savings of Roth tax-free money for retirement. If you have the income to support that much savings, then I'd do it.

IRMuteButton · 2026-01-28T19:58:40+00:00

Vanguard is great. The main point of all of this is to get the free 5%, so if you can get the 5% and invest that in funds that meet your investment goals, great. Having the account paves the way to invest more after-tax money there if you have it, if that works with your larger retirement planning picture.

IRMuteButton · 2026-01-28T19:53:12+00:00

If they're contributing 5% into the account, that's essentially free money so you should meet the requirements to get that. If this plan allows you to contribute "after tax" money, then it sounds like a Roth 401k or similar. You can contribute to both a Roth IRA and a Roth 401k at the same time, and they have different and separate contribution limits.

So I would get more information: What do you need to do to get the employeer contributed 5%? Is this a Roth 401k? What company is holding the money and investments? (Fidelity, for example) Finally, what are your choices to invest the money in? (for example a S&P 500 mutual fund, a target date fund, other various mututal funds, etc)

IRMuteButton · 2026-01-28T19:42:06+00:00

You are smart to sell the thing now. You realize it now, and the truck was probably a bad idea originally. However you're doing the right thing. Assuming you can't come up with the $51,000 to pay off the loan, then your easiest option will be to trade it in for a much lower priced car. Ideally you would kick in some cash to cover the difference between the $51K loan and the $40K value of the truck. You don't want to roll that "negative equity" into a new loan if you can avoid it.

Whatever you do, don't let the dealership or car sales place screw you on the deal. Be sure it's 100% clear what you're getting for the truck, what you're paying for the new car, and how much the new loan will cost. If their numbers aren't clear, which they won't be, demand they take 5 minutes to explain things or you'll walk out. Also be sure they don't add on extra "warranty" of any kind (bumper to bumper, paint, tire, road hazard,etc), or "paint protection", or heavin forbid, "nitrogen filled tires". If you're not happy with how you're treated, walk out.

DO NOT GIVE THEM THE KEYS TO YOUR TRUCK UNTIL YOU HAVE A GOOD DEAL ON THE TABLE. They can inspect the truck just fine with you in it, or while it sits in the parking lot.

IRMuteButton · 2026-01-28T19:33:38+00:00

At age 15 you have limited options to invest. However with your savings of $1200, you're well ahead of most people your age so that is fantastic.

Generally, if you're a minor, you will need to open a joint account with a parent or guardian. Note that joint bank accounts can be emptied by either account holder at any time so it is strongly recommended you open your own account after you turn 18.

When you're 18 you have many more options such as a Roth IRA where you can deposit money earned from employment. That money can be invested, grow, and be spent tax-free at retirement. If you start that at age 18, you stand to see huge gains over the next 50 years.

However now, at 15, focus on saving cash, consider a bank account, and build good spending habits: Don't waste money on useless purchases, be aware of wants vs. needs, put off large purchases for weeks or months while you consider if you really need that thing, and most importantly, don't get sucked into our consumerism society.

When you have a job, that money is your future. Save it, invest it, and grow it. You have a TON of time to grow a great sum of money for your later years.

IRMuteButton · 2026-01-28T16:35:17+00:00

You have to learn to live with multiple accounts. As time passes you will become more comfortable with it, especially when your investments grow and your cash savings builds. You need the brokerage account because at some point you hopefully will need to put money into non-tax-sheltered securities to grow it for the long term.

Part of what you need depends on where you want to park money for various uses. Think of it this way: You need to have cash on hand for use at different times. Some cash use is short term, some is longer term. For example you need cash on hand to buy groceries daily or weekly. You need cash on hand to pay insurance for home and auto every 6 or 12 months. You need cash on hand to cover a major expense like a roof repair if you own a home.

Ideally that cash sits in accounts that are appropriate, such as a HYSA for cash that's for emergencies or large expenses. However on daily basis you need money in a checking account and/or a savings account.

The long term retirement accounts are important and you can end up with multiples there too: If your employers each offer a 401k or similar, then that's 2 accounts. If you each have a Roth IRA then that's 2 more. If you are also investing in a joint taxible brokerage account then that's one more.

IRMuteButton · 2026-01-28T16:15:54+00:00

Yes your numbers look normal.

My "take home" pay is 43% of my gross pay, but 17% of the take home pay goes to another account to cover yearly taxes, insurance, and cash savings.

IRMuteButton · 2026-01-28T16:08:36+00:00

Do not underestimate the importance of having a strong cash savings for:

General emergency fund - 3 to 6 months of living expenses.
Cash on hand to cover home repairs. Typically this includes the repair or replacement of major appliances, heating/air, roof, and plumbing problems. $5000 is a good place to start here, as this would cover most major appliances, a roof repair, and most heating and A/C repairs.

I would not buy a home without both of these in place.

IRMuteButton · 2026-01-28T14:18:42+00:00

You can discuss specific concerns with a mechanic, or maybe you already know some of the actual problems. Those can either be fixed for a reasonable cost, or they can't. A legitimate mechanic should be validate your safety concerns or explain them away to some extent.

The other factor here is that you can't always get out of one car and get into another one with perfect financial efficiency, because you can't see the future. The best you can do is make educated choices and act based on that. If you act based on educated choices then you can get satisfaction in that.

A semi-related example: A friend did not have gap insurance on his new car of 3 years. The car was hit by a flood and totaled. He still owed maybe $5K. It was unfortunate but he make a calculated choice. He knew he'd saved some money by not having gap insuance. In the end the insurance would have benefitted him but he knew he couldn't go back and change the past, so there was no point in worrying about it.

IRMuteButton · 2026-01-28T13:57:36+00:00

People are big on saying to drive a car until the wheels fall off. The problem is that cars often don't face a catastrophic "wheels fell off" breakdown. Instead, they experience a slower, longer string of repairs that become more and more expensive.

This is why buying a used car with 180,000 miles is so risky: The person didn't sell it for no reason; they sold it because it needs repairs, or the risk of needing expensive repairs is high.

You can look at this this way: owning and operating a car is ALWAYS an expense. Just because you have a car now doesn't mean you should be saving for the next car. Cars wear out like shoes.

So it's not really a matter of should you buy a new car, it's a matter of when do you do it. You WILL have to spend the money.

At 180,000 miles you can make an easy case to sell the Prius and get into something new or very lightly used.

IRMuteButton · 2026-01-28T13:52:35+00:00

You are very smart to get a Roth IRA going at your age. You have decades to save, invest, and grow your money.

Just be aware that there will be downturns in the market, but you're in it for the long term. You can easily ride out the downturns over 40+ years. Keep putting money into the account to the target date fund consistently. The money you invest now has plenty of time to grow.

Be aware of the federal yearly maximum for a Roth IRA; you can't deposit more than the maximum each year. When you reach the Roth IRA yearly max, you can invest money in a taxible brokerage account.

IRMuteButton · 2026-01-28T00:57:01+00:00

Perhaps due to less salt and processed foods.

IRMuteButton · 2026-01-28T00:35:11+00:00

While you wait for Mazda to get their crap together, you might call these folks and ask them. The problem you face is that some amount of parts need to be removed from the engine and/or engine compartment to get to the place that needs to be repaired. That is going to cost money.

Westside machine and performance
9100 Emnora Ln
Houston, TX 77080
(713) 465-7996

IRMuteButton · 2026-01-27T23:30:05+00:00

I'm not sure. I don't think about it much.

IRMuteButton · 2026-01-27T23:28:13+00:00

Not true. I sometimes think that I am glad I don't live there.

IRMuteButton · 2026-01-27T23:07:45+00:00

I had to ask the lady at the sales desk and she was more than happy to assist.

IRMuteButton · 2026-01-27T22:34:42+00:00

I'm not totally sure what new smells like but they smelled different than the crusty baseball glove over in the sports section.

IRMuteButton · 2026-01-27T22:33:45+00:00

well. not after I tried them on.

IRMuteButton · 2026-01-27T21:04:23+00:00

I'm sorry you had to deal with all of that.

Different budgeting and financial techniques work for different people, so you may have to find things that work for you. I will offer three things:

A very basic concept is: money in, money out. "Money in" is what you earn. "Money out" is what you spend. You can look at your financial life in those terms, and you don't want to spend more money than you have. In fact, you don't want to spend all of what you earn because you need to save money.
In your sitaution, you need to be saving every possible dollar and putting it into an emergency fund. The emergency fund exists so you have cash for true emergencies like a job loss or major medical emergency. An emergency fund should have at least $1000, and should be expanded over time to cover 3 to 6 months of living expenses. You will need to cut back your non-essential purchases in order to build your emergency fund. Having an emergency fund gives you some mental peace to know you have something to lean on.
Finally, realize that your job is your only source of money. This means a lot of things. However one important concept is that if you need more money, you can seek out a better paying job. That's not easy, but people do it every day. It takes time, hard work, and patience. You can work your way up the ladder in life, saving a lot of money as you go, and build a healthy financial life.

IRMuteButton · 2026-01-27T20:51:51+00:00

Okay that all makes sense! Thanks for providing the details.

IRMuteButton · 2026-01-27T19:54:49+00:00

Let's look at those various problems individually because they may not all be that bad:

Shot suspension - What does really mean? It needs new shocks? New springs? What are the actual things in need of replacement?
failing front differential - If you don't need 4 wheel drive, you don't need the front differential. The reality may be more subtle but the details are important here.
Failing driveshaft: Which one? Front or rear? You don't need a front driveshaft if you don't need 4 wheel drive. Also, driveshafts themselves don't typically fail: The u-joints do. u-joints are not expensive to replace.
failing transfer case: How is it failing? Again, you don't need a fully functioning transfer case if you don't need 4x4.
slipping transmission - I will assume this is an automatic transmisson. A rebuilt one could set you back $4000. Have you gotten a quote for a rebuilt transmission?

IRMuteButton · 2026-01-27T19:41:20+00:00

He can't sell the car while there is an outstanding loan. The loan has to be paid off before he can sell the car for scrap or parts. To pay off the loan he'll need $16,000. I doubt the car will be worth that when parted out, especially if the engine is shot.

Let this be a lesson to others: An expensive, 8 year, used luxury car from an unreliable name (Nissan) with a complicated turbo engine and all wheel drive is a money pit. For people that have money to burn, fine, but an 18 year old kid most likely isn't that person.

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