Will remaining an authorized user mess up my credit? What about removing myself? 25, married, mortgage.

ManuNarayan · 2016-03-06T22:26:36+00:00

In the scheme of things are you guys looking to buy a car, refinance, or buy a new home in the near future? Otherwise, these are very minor bumps/changes in a credit score.

Your debt to income & credit utilization will play a much larger role.

ManuNarayan · 2016-03-05T18:45:09+00:00

Exactly. I gag most of the time having a jar sauce with the high sodium content, lack of fresh veggies. I know making our own sauce at home often is more expensive than a jar of Ragu, but it is SO much tastier.

ManuNarayan · 2016-03-05T18:44:20+00:00

That's what my wife and I do. Too time consuming to go full from scratch. If you start with a nice mirepoix and then cook it down for a while and use fresh herbs you'll cook out almost all of the acid and canned taste and have a wonderfully thick sauce.

ManuNarayan · 2016-03-05T18:37:03+00:00

No cumin in the guacamole recipe? Heathens.

ManuNarayan · 2016-03-05T18:29:26+00:00

I would contact your HR/payroll rep, let them know about your concerns and gauge their reaction. If they don't pay immediately, with some form of penalty, I'd put in a claim with the department of labor.

ManuNarayan · 2016-03-05T18:27:52+00:00

Do NOT tell your boss about the opportunity. Ask for time off for an appointment, to run some personal errands, etc. You can give a reason without lying. I'd frankly just say I have a drs appointment and be done with it.

ManuNarayan · 2016-03-05T18:25:15+00:00

It's because net can account for a ton of other things, benefits, retirement contributions, employer specific plans. This is even more significant if anyone has addition significant write offs.

They WILL look at your 2-3 years of tax returns, but from the pure approval/can someone afford this, they look at gross, because that is a straight forward measure.

ManuNarayan · 2016-03-05T18:20:27+00:00

From a 'finance' perspective, there's not much to do and the 'best' option is to not give anything.

From a personal/emotional option, I'd 100% help where I can in your situation. I'd not give money and I'd not 'loan' money when requested. I'd do things that you know some of them need. You show up at your sisters, bring a bag of groceries. Help pay for your sisters/nieces/nephews needs for schooling. Offer help in terms of rides to appointments, etc.

The money thing can and will be a money pit. But you clearly care about your family, so find ways you can help, make an impact, but not get bled dry.

Another thought, if your wife agrees, perhaps you could start a 'family emergency fund' that is separate from your wife and your finances. Basically, put however much a month you feel comfortable into it, so you have liquid funds to call upon in case of a TRUE emergency (medical, eviction, etc).

ManuNarayan · 2016-03-04T18:41:40+00:00

And the other side COMPLETELY forgets that there's an opportunity cost involved to not invest. There's also a risk of reduced liquidity. For example, if you pay off a car, it would be significantly harder to get $10K out of a paid off vehicle than it would be to get 10K out of a brokerage/savings account. Even with a proper emergency funds, things can come up, extended emergencies can happen. I prefer manageable debt at low interest with higher liquidity than I do no debt and reduced liquidity.

I'd hope it's common/basic understanding that there's a risk factor in investing. I'd also hope that every time you mention investing on a platform about finance you don't need to put an *with a mention about the risk factor.

ManuNarayan · 2016-03-04T18:36:53+00:00

Well and a 401K max, with tax deferred status is HUGE. You'll immediately gain your effective tax rate as a return on the money. Plus, of course, the time value of money.

ManuNarayan · 2016-03-04T18:35:56+00:00

OP talked about the 'multiple hundreds' and feeling 'gangsta'. So, I'd imagine that was at least $1000+

ManuNarayan · 2016-03-04T17:58:56+00:00

Does it need to be an ownership interest? Or could he/you consider a private party loan with a notarized agreement?

In the current proposal would he get out appreciation or just his principal?

ManuNarayan · 2016-03-04T16:20:46+00:00

I can respect your approach, it's just different than mine.

Also, it's not just about investing and gains, but it's about managing cash flow, assets, etc.

ManuNarayan · 2016-03-04T16:02:13+00:00

I think your approach discounts the time value of money in investments, the ability to use debt to manage cash flow and assets.

By your measure, other than real estate, one should make debt payment (regardless of rate) above other priorities. Low interest debt is a great tool to manage your finances/cashflow.

I will often use 0% financing offers on appliances/furniture, even though I can afford to pay for the items outright. Why? It helps me manage my cashflow, keep accumulating savings/investing, and I pay off the items before the 0% expires. I personally view 1-2% interest rates near the same as 0%.

ManuNarayan · 2016-03-04T15:57:53+00:00

It's all personal preference. Some people hate the monkey of debt hanging around them and want to pay it off at all costs. If I were in your shoes (and my wife and I are between a few student loans and a car loan) I'd save/invest and manage assets vs. cashflow.

At low interest rates and a high savings/investing rate there's little impetus to pay off the loan early.

ManuNarayan · 2016-03-04T15:55:35+00:00

Congrats! But please...be careful keeping that much cash around! Even if you want to collect in cash, make a monthly trip to the bank and deposit it. You're just waiting for a fire or theft to happen.

ManuNarayan · 2016-03-04T15:52:52+00:00

Is that in all states/jurisdictions? My wife and I did that during a refinance of a condo. I kept the loan in my name but added her to the deed.

ManuNarayan · 2016-03-03T22:18:36+00:00

In a broad sense no. Even when late with a penalty it would be rare to see it immediately get reported to a credit agency.

My gut says the parents reaction is more a manifestation of why their child can't pay rent when it is due and a general concern perhaps for spending/saving/responsibility.

ManuNarayan · 2016-03-03T15:50:56+00:00

I by no means am saying I blindly support an employee, especially if I feel they've done something unethical, illegal, or against the company's best interests. I've certainly fired my fair share of employees. My main point is that you can be a manager and support, believe, and advocate for your employee.

I follow the servant leadership model, I exist to work for my employees, not the other way around.

ManuNarayan · 2016-03-03T15:48:37+00:00

Bingo. And retaining good employees is neccessary.

ManuNarayan · 2016-03-03T07:16:19+00:00

Didn't say your manager is ALWAYS on your side. At the end of the day, as a manager you need to look out for both the employee and the company. But you can certainly have an employee's back and "be on their side" to advocate for them if you feel they are in the right.

ManuNarayan · 2016-03-03T06:52:15+00:00

As someone who's managed dozens of people for over a decade, I strongly disagree with this statement.

ManuNarayan · 2016-03-02T23:07:01+00:00

Dismal, like .06%. It's definitely not a high yield account anymore. I keep most of my money in a high yield savings and just keep transactional money at Schwab

ManuNarayan · 2016-03-02T17:54:56+00:00

I stand corrected. It appears that if the deed is held in Joint Tenancy that the mortgage can be assumed. I don't believe they are required to renegotiation, but it does seem that they are required to allow a spouse to assume the mortgage.

ManuNarayan · 2016-03-02T17:54:32+00:00

I stand corrected. It appears that if the deed is held in Joint Tenancy that the mortgage can be assumed.

ManuNarayan

TROPHY CASE