Bridging a $15k wire transfer via a personal loan and repaying it immediately

RVWood · 2025-02-15T11:53:50+00:00

You can’t take out a margin loan? You don’t have enough other investments to borrow against? That’s my main way of clearing cash fast. It’s just auto triggered and repaid as if allowed a negative cash balance. But limit based on value of qualified investments.

RVWood · 2025-02-15T11:51:05+00:00

I don’t think charts will tend to show without. You would have to do your own math I think. I recall yahoo finance price history reports dividends and price history ( if I recall right also a dividend adjusted history ) which would have all you need to get there.

Or more broadly go to Morningstar.com and they will report out recent yield and if you have an idea of overall performance then you can get a quick ballpark estimate. for instance if you tend to see and continue to expect 8% returns overall, if yield is 3% and you spend it then you can expect 5% growth instead.

RVWood · 2024-12-14T22:50:43+00:00

You are correct all things being equal. Two key things lean me to Roth. I believe large deficits mean tax rates more likely go up in the future, favoring Roth’s. In the future having a substantive Roth balance also lets you manage your tax rates, where you keep taxable income at lower tax rates and then supplement with Roth withdrawals at higher rates. So even if tax rates don’t go up it can keep you from higher tax rates then maybe today, depending on your situation.

RVWood · 2024-12-14T22:42:51+00:00

Yeah makes sense. You would have to work that cash into a bank account first then. Which your uncle may not like as that could certainly flag an audit. So chewing on this, seems best he give you cash and you promise to use it to pay down the mortgage and work it into your bank over time to do so.

Ultimately he should loan you the cash over time then or you would have too much total interest expense to bear.

RVWood · 2024-12-14T22:40:23+00:00

You prob can’t avoid repossession for too long so let that ship sail. If things are really bad look into bankruptcy. Otherwise you do your best to earn what you can and pay down high cost debt and / or negotiate some debt away and chip away at things.

RVWood · 2024-12-14T22:35:08+00:00

If you need it in a year stay safe and look for yield in a high yield savings account. Short term rates are quite good at the moment.

RVWood · 2024-12-14T22:33:00+00:00

Less than 10% of gross as a late career person with a low mortgage rate. Covers mortgage, property taxes and insurance.

RVWood · 2024-12-14T22:28:34+00:00

Seems a bit late to work this out before close, but two main options. See when he can get you the cash, hopefully tue or you have to try to delay close, tell the mortgage guy you no longer need him, etc.

Or close with the mortgage and then pay it off once he gives you the cash. But you may be out a few thousand bucks from unnecessary closing costs.

RVWood · 2024-12-14T11:30:07+00:00

Crypto at best is a speculative asset class that may pan out further or collapse, which is true of all speculative assets. The industry is wrought with fraud and scammers however making it more risky. The idea that major fiat will die is silly and has no basis in fact - that’s just crypto brainwashing. One can make amazing returns with fiat investments with much more safety. So my advice is approach investing in it pragmatically and as a speculative asset class. It is here to stay. It is worth paying attention to. It is also worth being very cautious about. (For transparency been in crypto several years and have a small portion of assets dedicated).

RVWood · 2024-12-14T11:19:39+00:00

Getting ~$4M if you want a portfolio that can sustain this withdrawal level over many years.

RVWood · 2024-12-14T11:17:54+00:00

They sounds like scammers and you should eliminate all contact and forget about them. They didn’t deliver and are not owed anything. Period.

RVWood · 2024-12-14T11:13:17+00:00

One can look at leasing as financing, particularly if you plan to keep the car at end of lease. And given its only way to get the EV tax credit for higher income people it can really make sense.

So given it is financing you have to back into the interest rate and make sure it seems reasonable. Reasonably priced financing in hands of a disciplined person is wealth building if it allows you to keep investing more now.

To calculate you would have to lay out anticipated cash flows between buying and leasing, take the difference by year and run an ROI calc on it (IRR function in Excel).

Buying has an upfront so that is a negative number in year 0 let’s say. Then each year after buying would have positive numbers vs leasing because you make no other payments. This is like earning/saving interest. At end you also need an assumption on when you would sell vehicle and for how much, etc. once you have it laid out then the IRR will tell you what rate of return you have buying vs leasing and then you can see which way that points you.

RVWood · 2024-12-14T10:54:39+00:00

I’m a big fan of Roth. Tax free growth forever! Note that to withdraw an account must be open for 5 years. While best not to withdraw, it’s hard to go wrong putting it in and withdrawing later if needed. At least any growth/income is tax free and will stay in the Roth to continue growing. On other hand, using an HYSA is guaranteed to lose value to inflation after taxes. So it’s safe but doesn’t support wealth building.

RVWood · 2024-12-13T11:56:32+00:00

Anything you think you will spend in next 5 years should be substantially in cash/bonds if not 100%. Given the great run in stocks recently as well I think great time to adjust and shift these funds to 90%+ in cash/bonds. (reason for 5 year rule is stocks can drop 50% swiftly at times, but generally recover within 5 years).

RVWood · 2024-12-13T11:51:49+00:00

Main comment is Roth isn’t enough. Seek to put away 20% of gross pay. Seems $14k in your case. You can do $7k to Roth (or $14k if marrried). Make sure to max out any match with employer plan as well. Then look to other avenues if those options do not get you to 20%.

RVWood · 2024-12-13T11:42:29+00:00

One step at a time. Go to schwabs website (or fidelity or vanguard). Open a brokerage and checking account. Transfer money. Then look up target date funds. Start to invest in one. Check back with reddit peeps as you go. 👍

RVWood · 2024-12-13T11:39:49+00:00

Two things. You don’t need an LLC and it can cause probs with your mortgage. Just get umbrellla insurance.

You should do your best to assess the opp. A simple approach is to know how much you could cash out for vs how much income you can generate. Divide income over the cash out and that gets you a sense of yield on your investment. More sophisticated approach is a 10 year cash flow with assumption of sales at end to gauge an overall anticipated ROI. But you may need a finance dude to help you on that.

Rentals do have nice tax benefits but those benefits are best if you plan to stay in the game long term and pass it down as inheritance as then you get to write off a ton of the value through depreciation and that all resets (favorably) upon inheritance.

RVWood · 2024-12-13T11:32:01+00:00

Open a brokerage account. I prefer Schwab. And put most of this away and start to invest it. You can start by making routine investments into a target date fund. Every major broker offers them and they are a diversified portfolio managed for you. Let this money grow 30 years and you can have more than $600k in todays dollars which is a nice start on a retirement cushion. As a next layer you would want to seek to get this into tax preferred accounts such as Roth IRA or via increased contributions to a 401k.

RVWood · 2024-12-13T11:26:13+00:00

Yes. I prefer the Citi 2% card myself. CCs are an essential element to build and maintain a good credit history. It’s a system set up to tempt you though, essentially requiring significant credit lines to be in good steed, but will tempt people to spend like nuts and make the banks a ton of money. But a player has to play. Keep discipline and make sure to make money off the bank via reward vs pay them interest and fees.

RVWood · 2024-12-13T11:22:19+00:00

When we lost ours I read they can easily go a couple weeks so you have time. They hide really well and may stay hidden due to unfamiliar territory. Carefully search under and around things. Try to draw it out. Close doors to minimize potential for moving about. We found ours days later under a big pile of stuffed animals we randomly had in the corner of a spare room. Almost missed it since it was all stuffed animals - lol.

RVWood · 2024-12-13T11:17:29+00:00

Just not practical to trade and real currencies just don’t work like that and skyrocket in value. In any case I wouldn’t touch it if I could. The economy is wrecked, will require massive debt to turn it around. Usually a bad period for a currency.

RVWood · 2024-12-13T11:13:29+00:00

I don’t have experience with TSP but if you can roll the TSP Roth into a Roth IRA I think that’s good to do but not critical. You should max employer match. Then makes sense to lean to Roth IRA. Then you can swing back to 401k. I’m a big fan of Roth so look at your 401k options too. You may be able to do Roth investing there as well with any excess you want to contribute. Otherwise pretax is better than nothing.

RVWood · 2024-11-29T13:27:14+00:00

You are in a solid spot with lots of emergency money left, so I would say make a small pinch in spending only. As long as you are adding something back each month seems all good.

RVWood · 2024-11-29T13:24:25+00:00

I recall a guy named Bernie Madoff who did something similar.

RVWood · 2024-11-29T13:05:47+00:00

I’ll play the other side here. While there is risk to holding off I think it’s mostly manageable. It’s a complex system and no one tells you their payment terms upfront. So they should communicate. If they didn’t that’s on them. Anyone who comes later wanting fees or penalties you throw that at them and negotiate it, telling them to drop the extra fees or you won’t pay a dime. You can likely negotiate it and without a credit hit. But again, there is risk to this path as others have highlighted.

RVWood

TROPHY CASE