Personal Finance Advice and Education! (4 Viewers)

[pecorino]

Good article on managing your own money: http://www.newsmax.com/Finance/StreetTalk/John-Bogle-Vanguard-investing-compounding/2015/07/06/id/653629/

 

[matttyl]

Man trading a car in to a dealership and buying a car at a dealership is a total double smack on the wallet.

Go look at AcerFC's car buying thread. Makes the purchasing easy.

With respect to the trade in, it's just not worth my time to facilitate selling it by myself to make an extra grand or so.

I used to use craigslist and it was great, but it has turned into a crapfest of crap people and I can never get anything done using it anymore.

Had a carmax offer in my back pocket that was still good, but was able to sell it personally over the weekend via craigslist for 26.6% more - of course it was only 3,800 vs 3,000, but also didn't have to drive it back to carmax. Was it worth the extra 800? I guess.....

 

[Tiger Fan]

Man trading a car in to a dealership and buying a car at a dealership is a total double smack on the wallet.

Go look at AcerFC's car buying thread. Makes the purchasing easy.

With respect to the trade in, it's just not worth my time to facilitate selling it by myself to make an extra grand or so.

I used to use craigslist and it was great, but it has turned into a crapfest of crap people and I can never get anything done using it anymore.

Had a carmax offer in my back pocket that was still good, but was able to sell it personally over the weekend via craigslist for 26.6% more - of course it was only 3,800 vs 3,000, but also didn't have to drive it back to carmax. Was it worth the extra 800? I guess.....

yeah, aligning up all this timing might be tough....but i'll shoot to do something similar

 

[NewlyRetired]

We will have been retired 5 years coming this August. I am having my financial advisor prepare another in depth retirement analysis using all our latest numbers to see if we need to make any changes in our plan.

I figure every 5 years (assuming nothing major happens in my life) will be a good time to relook in depth.

 

[wilked]

Good article on managing your own money: http://www.newsmax.com/Finance/StreetTalk/John-Bogle-Vanguard-investing-compounding/2015/07/06/id/653629/

Great article

Here was the highlight for me

Says Bogle: "When our financial system essentially our money managers, marketers of investment products and stockbrokers put up zero percent of the capital and assume zero percent of the risk yet receive fully 80 percent of the return, something has gone terribly wrong in our financial system."

 

[No. 16]

As for emergency fund, how much exactly should I have in an emergency fund? Coulda sworn I read somewhere like maybe 6 months worth of living expenses. So, I suppose I would be depleting my emergency fund to buy a new car with what I have saved.

Getting a low interest rate car loan is the right way for you to go, in my opinion.

This is the most likely scenario, ideally I can find a low rate approved for a used car from a private seller.

Now if my options were buying a car for 10 grand from a private seller or buying that same exact car from a dealership for 12 or 13 grand and taking a loan, I will just pay the 10 grand.

I hate everything about the idea of buying a car from a dealership.

Test drive a few cars to get a make and model you want. Then fire off e-mails in the middle of the month to numerous dealerships. Have them play bid for your business. I bought my last car that way. No stress, no hassle.

 

[ghostguy123]

As for emergency fund, how much exactly should I have in an emergency fund? Coulda sworn I read somewhere like maybe 6 months worth of living expenses. So, I suppose I would be depleting my emergency fund to buy a new car with what I have saved.

Getting a low interest rate car loan is the right way for you to go, in my opinion.

This is the most likely scenario, ideally I can find a low rate approved for a used car from a private seller.

Now if my options were buying a car for 10 grand from a private seller or buying that same exact car from a dealership for 12 or 13 grand and taking a loan, I will just pay the 10 grand.

I hate everything about the idea of buying a car from a dealership.

Test drive a few cars to get a make and model you want. Then fire off e-mails in the middle of the month to numerous dealerships. Have them play bid for your business. I bought my last car that way. No stress, no hassle.

I have a price from my ex brother in law, the honda/toyota salesman. Problem is, my wife hates him with a passion because he is a total jerk a lot of the time, and she doesn't want to buy from him.

At least I have a price to go off of though.

2015 Toyota Rav4 LE, 4 cylinder, FWD. $24,900. 48 months, zero percent interest. I think it is the cheapest "new" Rav4 you can get, but it is plenty nice and has more than everything we would need in a car.

 

[xulf]

As for emergency fund, how much exactly should I have in an emergency fund? Coulda sworn I read somewhere like maybe 6 months worth of living expenses. So, I suppose I would be depleting my emergency fund to buy a new car with what I have saved.

Getting a low interest rate car loan is the right way for you to go, in my opinion.

This is the most likely scenario, ideally I can find a low rate approved for a used car from a private seller.

Now if my options were buying a car for 10 grand from a private seller or buying that same exact car from a dealership for 12 or 13 grand and taking a loan, I will just pay the 10 grand.

I hate everything about the idea of buying a car from a dealership.

Test drive a few cars to get a make and model you want. Then fire off e-mails in the middle of the month to numerous dealerships. Have them play bid for your business. I bought my last car that way. No stress, no hassle.

I have a price from my ex brother in law, the honda/toyota salesman. Problem is, my wife hates him with a passion because he is a total jerk a lot of the time, and she doesn't want to buy from him.

At least I have a price to go off of though.

2015 Toyota Rav4 LE, 4 cylinder, FWD. $24,900. 48 months, zero percent interest. I think it is the cheapest "new" Rav4 you can get, but it is plenty nice and has more than everything we would need in a car.

Would suggest AWD for a fellow Ohioan. Especially for a smaller sized SUV.

 

[ghostguy123]

Would suggest AWD for a fellow Ohioan. Especially for a smaller sized SUV.

I have actually never had an AWD. It's an extra $1,500 or so. Definitely a consideration

 

[xulf]

Would suggest AWD for a fellow Ohioan. Especially for a smaller sized SUV.

I have actually never had an AWD. It's an extra $1,500 or so. Definitely a consideration

IMO, totally worth it. You will hate the lesser mpg in the summer, but once you have 6+ inches of snow you will wonder why you didn't have it before...especially with a family on board.

 

[hooter311]

Front wheel drive with a stick shift > AWD

I put on 60,000 miles+ each year in WI. I drive a 2007 Jeep Compass for work. 220,000 miles and counting without an incident. I bought it 4 years ago with 40,000 for around 10k. I get around 28mpg with the 4 cylinder.

 

[ghostguy123]

I started a thread a while back how almost every car I see off the road on the freeway in the winter time was an SUV.

4WD isn't doing you any favors on the freeway.

It's definitely not mandatory for me at all. Been driving for 19 years in northeast Ohio and never once had 4WD. Never been a problem.

 

[pecorino]

Good article on managing your own money: http://www.newsmax.com/Finance/StreetTalk/John-Bogle-Vanguard-investing-compounding/2015/07/06/id/653629/

Great article

Here was the highlight for me

Says Bogle: "When our financial system essentially our money managers, marketers of investment products and stockbrokers put up zero percent of the capital and assume zero percent of the risk yet receive fully 80 percent of the return, something has gone terribly wrong in our financial system."

Thanks. my takeaway line from Bogle is this easy to remember gem: "“While the interests of the business are served by the aphorism ‘Don't just stand there. Do something!’ the interests of investors are served by an approach that is its diametrical opposite: ‘Don't do something. Just stand there!’”

It's not sexy but it makes sense and keeps irrationality off the steering wheel. It's funny, though, that I can't help but actively manage a small piece of my 401k. It's by far the worst chunk in my portfolio. I don't routinely come in last place in those stock-picking contests by chance. I've had some practice, thankfully with a very small piece of the pie. But my personal, anecdotal experience supports Bogle's view.

 

[xulf]

I started a thread a while back how almost every car I see off the road on the freeway in the winter time was an SUV.

4WD isn't doing you any favors on the freeway.

It's definitely not mandatory for me at all. Been driving for 19 years in northeast Ohio and never once had 4WD. Never been a problem.

SUV does not equal 4wd...clearly by your original post.

BTW, your bipolarity in agreeing/not-agreeimg with a post based on a new post is comical.

 

[ghostguy123]

I started a thread a while back how almost every car I see off the road on the freeway in the winter time was an SUV.

4WD isn't doing you any favors on the freeway.

It's definitely not mandatory for me at all. Been driving for 19 years in northeast Ohio and never once had 4WD. Never been a problem.

SUV does not equal 4wd...clearly by your original post.

BTW, your bipolarity in agreeing/not-agreeimg with a post based on a new post is comical.

Not sure what percentage of the larger SUVs are not 4WD, but I imagine it can't be very high.

As for agreeing/not agreeing. I didnt agree or disagree with anything. I am not sure which I prefer. Pros and cons for both, hence, conversation and thoughts.

 

[Doctor Detroit]

If you grew up driving in the snow front-wheel drive on those small SUVs is just fine IMO. Now all those big heavy SUVs? Yeah, AWD or 4X4 recommended.

 

[wilked]

Would suggest AWD for a fellow Ohioan. Especially for a smaller sized SUV.

I have actually never had an AWD. It's an extra $1,500 or so. Definitely a consideration

could always take a 401k loan for the difference...

 

[ghostguy123]

 

[Steve Tasker]

My fiancee and I are under contract to buy a house, attorney approvals are good and we have formally applied for a mortgage. and all that. The loan officer has included tax and insurance escrow in our "good faith estimate" of closing costs, and I told her that I was assuming no escrow. She says that is fine, and they can remove it without a problem if we are certain.

What are the benefits/drawbacks to doing escrow? It seems like it'd be a good idea for people who struggle to save, but it would not be a problem for us. She has told us that the interest rate on the escrow is 2%. It seems that it would lower our closing costs by ~$2,000 if we were to do no escrow.

In the short-term, since we are putting quite a bit of our savings as a downpayment, I think I'd keep that excess cash in something liquid and so probably wouldn't beat 2%, but in the long-term I find it hard to believe that I couldn't beat that rate. We are going with a local bank (M&T) with whom we have both banked for a number of years, but their bank interest rates are notoriously low, so I'm assuming it'll permanently lag behind what I could get in the market.

Talk to me here.

 

[Dentist]

Wife is definitely going to be staying home with the little ones for a few years.

She has 3 different 403b accounts spread out over 3 institutions (that's mostly my fault)

should I:

a) condense them into one 403b account at the best provider of the 3?

b) leave them alone

c) do a direct rollover into a rollever IRA?

If I do choice C) does that mean I wouldn't be able to do the backdoor Roth IRA anymore with new money each year?

 

[Kal El]

Wife and I are doing Dave Ramsey's Financial Peace University, and we're putting plans in place to get out of all non-mortgage debt within the next 3 years, and finishing our 30-year mortgage off by 2023, after just 13 years. We'll pay cash for stuff to avoid taking out more debt, and eventually get rid of our credit card. Turns out with all of our debt, we're paying about $1,600 a month in debt. If we save that money for 5 months, I can pay cash for an $8,000 vehicle.

 

[fourd]

Wife is definitely going to be staying home with the little ones for a few years.

She has 3 different 403b accounts spread out over 3 institutions (that's mostly my fault)

should I:

a) condense them into one 403b account at the best provider of the 3?

b) leave them alone

c) do a direct rollover into a rollever IRA?

If I do choice C) does that mean I wouldn't be able to do the backdoor Roth IRA anymore with new money each year?

To do option A you will need to ask the various districts about the information shaing agreements they have with their providers. Otherwise you will need to roll over to an IRA and then back to the plan you'd like to use.

If you do C, it would affect your wife's ability to use the backdoor Roth, as it would require you to take that money into account when doing the Roth conversion.

 

[eoMMan]

My fiancee and I are under contract to buy a house, attorney approvals are good and we have formally applied for a mortgage. and all that. The loan officer has included tax and insurance escrow in our "good faith estimate" of closing costs, and I told her that I was assuming no escrow. She says that is fine, and they can remove it without a problem if we are certain.

What are the benefits/drawbacks to doing escrow? It seems like it'd be a good idea for people who struggle to save, but it would not be a problem for us. She has told us that the interest rate on the escrow is 2%. It seems that it would lower our closing costs by ~$2,000 if we were to do no escrow.

In the short-term, since we are putting quite a bit of our savings as a downpayment, I think I'd keep that excess cash in something liquid and so probably wouldn't beat 2%, but in the long-term I find it hard to believe that I couldn't beat that rate. We are going with a local bank (M&T) with whom we have both banked for a number of years, but their bank interest rates are notoriously low, so I'm assuming it'll permanently lag behind what I could get in the market.

Talk to me here.

My wife and I do escrow and love it. It's mostly for convenience. I think our escrow expenses total roughly $4k annually for re taxes, home insurance and flood insurance. At 3.875% interest, that's a cost of $155....but it would actually be lower because we would be paying those expenses at different times throughout the year.

Imo, it's a pretty small price to pay for the convenience of having everything rolled into our monthly payment. Besides, if something ever gets messed up and not paid for some reason, we have someone to blame.

 

[Dentist]

Wife is definitely going to be staying home with the little ones for a few years.

She has 3 different 403b accounts spread out over 3 institutions (that's mostly my fault)

should I:

a) condense them into one 403b account at the best provider of the 3?

b) leave them alone

c) do a direct rollover into a rollever IRA?

If I do choice C) does that mean I wouldn't be able to do the backdoor Roth IRA anymore with new money each year?

To do option A you will need to ask the various districts about the information shaing agreements they have with their providers. Otherwise you will need to roll over to an IRA and then back to the plan you'd like to use.

If you do C, it would affect your wife's ability to use the backdoor Roth, as it would require you to take that money into account when doing the Roth conversion.

The districts are all the same one, we just kept switching providers when better vendors came in.. started out poorly with a life insurance company before I'd gotten personal finance religion, then to a mutual fund company who had a couple index funds (american century) then they quit offering index funds, then finally to an open platform place where I could get vanguard.

So if I did choice C.. you're telling me I couldn't just contribute a new $5500 to an Ira and convert that money.. i have to convert the money that's already there first

 

[mquinnjr]

Plug for the ARAG Legal Plan, if offered at your work.

On top of all of the things that ARAG already offers, I got a notice that now included is free identity theft monitoring, caregiving counseling/tips via phone, and finally "Beginning July 1, 2015 - Talk to a Financial Counselor." It goes on to describe this benefit as follows: "Maybe you have questions about retirement planning. Or you want to create a budget or debt management plan. These specialists offer information and guidance - without a sales pitch."

REALLY interested in giving this a go as a subscriber. The value on this plan was good IMO before they added this @ $7.95 a pay period after tax. I am really interested to see how far along the process they would take you. This would eliminate the fee associated with a fee-only advisor via ARAG membership. Will report back once I have time to call and chit chat with them, won't cost me anything even if it's not good!

 

[Random]

My fiancee and I are under contract to buy a house, attorney approvals are good and we have formally applied for a mortgage. and all that. The loan officer has included tax and insurance escrow in our "good faith estimate" of closing costs, and I told her that I was assuming no escrow. She says that is fine, and they can remove it without a problem if we are certain.

What are the benefits/drawbacks to doing escrow? It seems like it'd be a good idea for people who struggle to save, but it would not be a problem for us. She has told us that the interest rate on the escrow is 2%. It seems that it would lower our closing costs by ~$2,000 if we were to do no escrow.

In the short-term, since we are putting quite a bit of our savings as a downpayment, I think I'd keep that excess cash in something liquid and so probably wouldn't beat 2%, but in the long-term I find it hard to believe that I couldn't beat that rate. We are going with a local bank (M&T) with whom we have both banked for a number of years, but their bank interest rates are notoriously low, so I'm assuming it'll permanently lag behind what I could get in the market.

Talk to me here.

My wife and I do escrow and love it. It's mostly for convenience. I think our escrow expenses total roughly $4k annually for re taxes, home insurance and flood insurance. At 3.875% interest, that's a cost of $155....but it would actually be lower because we would be paying those expenses at different times throughout the year.

Imo, it's a pretty small price to pay for the convenience of having everything rolled into our monthly payment. Besides, if something ever gets messed up and not paid for some reason, we have someone to blame.

Are you guys saying you pay interest or get interest on the escrow account? Its been a while since we've escrowed our taxes and insurance but I certainly don't remember paying interest for it.

 

[mquinnjr]

My fiancee and I are under contract to buy a house, attorney approvals are good and we have formally applied for a mortgage. and all that. The loan officer has included tax and insurance escrow in our "good faith estimate" of closing costs, and I told her that I was assuming no escrow. She says that is fine, and they can remove it without a problem if we are certain.

What are the benefits/drawbacks to doing escrow? It seems like it'd be a good idea for people who struggle to save, but it would not be a problem for us. She has told us that the interest rate on the escrow is 2%. It seems that it would lower our closing costs by ~$2,000 if we were to do no escrow.

In the short-term, since we are putting quite a bit of our savings as a downpayment, I think I'd keep that excess cash in something liquid and so probably wouldn't beat 2%, but in the long-term I find it hard to believe that I couldn't beat that rate. We are going with a local bank (M&T) with whom we have both banked for a number of years, but their bank interest rates are notoriously low, so I'm assuming it'll permanently lag behind what I could get in the market.

Talk to me here.

My wife and I do escrow and love it. It's mostly for convenience. I think our escrow expenses total roughly $4k annually for re taxes, home insurance and flood insurance. At 3.875% interest, that's a cost of $155....but it would actually be lower because we would be paying those expenses at different times throughout the year.

Imo, it's a pretty small price to pay for the convenience of having everything rolled into our monthly payment. Besides, if something ever gets messed up and not paid for some reason, we have someone to blame.

Are you guys saying you pay interest or get interest on the escrow account? Its been a while since we've escrowed our taxes and insurance but I certainly don't remember paying interest for it.

I didn't know that you paid interest on escrow in the first place!

Am I understanding this correctly, when you escrow taxes (which are then paid quarterly by the mortgage company or whoever holds the funds in escrow), you are charged 2% ?!?! I might skip the rest of my afternoon of work to disarm this and do this myself, JFC. Is this a default option on all mortgage loans that people just miss?

So first time I've ever heard of this.

 

[DocHolliday]

My fiancee and I are under contract to buy a house, attorney approvals are good and we have formally applied for a mortgage. and all that. The loan officer has included tax and insurance escrow in our "good faith estimate" of closing costs, and I told her that I was assuming no escrow. She says that is fine, and they can remove it without a problem if we are certain.

What are the benefits/drawbacks to doing escrow? It seems like it'd be a good idea for people who struggle to save, but it would not be a problem for us. She has told us that the interest rate on the escrow is 2%. It seems that it would lower our closing costs by ~$2,000 if we were to do no escrow.

In the short-term, since we are putting quite a bit of our savings as a downpayment, I think I'd keep that excess cash in something liquid and so probably wouldn't beat 2%, but in the long-term I find it hard to believe that I couldn't beat that rate. We are going with a local bank (M&T) with whom we have both banked for a number of years, but their bank interest rates are notoriously low, so I'm assuming it'll permanently lag behind what I could get in the market.

Talk to me here.

My wife and I do escrow and love it. It's mostly for convenience. I think our escrow expenses total roughly $4k annually for re taxes, home insurance and flood insurance. At 3.875% interest, that's a cost of $155....but it would actually be lower because we would be paying those expenses at different times throughout the year.

Imo, it's a pretty small price to pay for the convenience of having everything rolled into our monthly payment. Besides, if something ever gets messed up and not paid for some reason, we have someone to blame.

Are you guys saying you pay interest or get interest on the escrow account? Its been a while since we've escrowed our taxes and insurance but I certainly don't remember paying interest for it.

I didn't know that you paid interest on escrow in the first place!

Am I understanding this correctly, when you escrow taxes (which are then paid quarterly by the mortgage company or whoever holds the funds in escrow), you are charged 2% ?!?! I might skip the rest of my afternoon of work to disarm this and do this myself, JFC. Is this a default option on all mortgage loans that people just miss?

So first time I've ever heard of this.

Count me in as an interested listener/student.

 

[Steve Tasker]

The 2% in my post refers to 2% interest that the bank will pay me on the balance in the escrow account.

 

[Tom Hagen]

Wife is definitely going to be staying home with the little ones for a few years.

She has 3 different 403b accounts spread out over 3 institutions (that's mostly my fault)

should I:

a) condense them into one 403b account at the best provider of the 3?

b) leave them alone

c) do a direct rollover into a rollever IRA?

If I do choice C) does that mean I wouldn't be able to do the backdoor Roth IRA anymore with new money each year?

To do option A you will need to ask the various districts about the information shaing agreements they have with their providers. Otherwise you will need to roll over to an IRA and then back to the plan you'd like to use.

If you do C, it would affect your wife's ability to use the backdoor Roth, as it would require you to take that money into account when doing the Roth conversion.

So if I did choice C.. you're telling me I couldn't just contribute a new $5500 to an Ira and convert that money.. i have to convert the money that's already there first

You would still be able to do a backdoor Roth if you don't have any traditional IRA accounts. Your wife would not be able to fund a backdoor Roth without incurring tax. The tax calculation is prorated. Let's say she rolls over $5,500 from her 403b and she makes a $5,500 traditional IRA contribution and coverts that amount to a Roth. The total traditional IRA balance prior to conversion is $11,000 and you are converting $5,500 so one half of the conversion amount ($2,750) is taxable.

It's a little more complicated than that but that is the basic idea.

 

[mquinnjr]

The 2% in my post refers to 2% interest that the bank will pay me on the balance in the escrow account.

Whew. OK then. I thought there was some sort of additional interest component to just the escrow account for a second. Obviously opportunity cost of interest earned elsewhere, but I thought you meant an interest charge separate from the interest rate on the principal of the property.

My bad, and thanks.

 

[fourd]

Wife is definitely going to be staying home with the little ones for a few years.

She has 3 different 403b accounts spread out over 3 institutions (that's mostly my fault)

should I:

a) condense them into one 403b account at the best provider of the 3?

b) leave them alone

c) do a direct rollover into a rollever IRA?

If I do choice C) does that mean I wouldn't be able to do the backdoor Roth IRA anymore with new money each year?

To do option A you will need to ask the various districts about the information shaing agreements they have with their providers. Otherwise you will need to roll over to an IRA and then back to the plan you'd like to use.

If you do C, it would affect your wife's ability to use the backdoor Roth, as it would require you to take that money into account when doing the Roth conversion.

The districts are all the same one, we just kept switching providers when better vendors came in.. started out poorly with a life insurance company before I'd gotten personal finance religion, then to a mutual fund company who had a couple index funds (american century) then they quit offering index funds, then finally to an open platform place where I could get vanguard.

So if I did choice C.. you're telling me I couldn't just contribute a new $5500 to an Ira and convert that money.. i have to convert the money that's already there first

If you have a better choice within that district I'd move it all to that option.

As for C, you can still convert but a portion of that conversion will be taxable, based on the amount in the rollover IRA. You can see the formula here - http://www.bogleheads.org/wiki/Backdoor_Roth_IRA

 

[fourd]

And I see that Tom Hagen also replied to it. And I'm assuming you're talking about your wife since it is her money. As he points out, you'd still be able to do yours.

 

[Dentist]

Wife is definitely going to be staying home with the little ones for a few years.

She has 3 different 403b accounts spread out over 3 institutions (that's mostly my fault)

should I:

a) condense them into one 403b account at the best provider of the 3?

b) leave them alone

c) do a direct rollover into a rollever IRA?

If I do choice C) does that mean I wouldn't be able to do the backdoor Roth IRA anymore with new money each year?

To do option A you will need to ask the various districts about the information shaing agreements they have with their providers. Otherwise you will need to roll over to an IRA and then back to the plan you'd like to use.

If you do C, it would affect your wife's ability to use the backdoor Roth, as it would require you to take that money into account when doing the Roth conversion.

So if I did choice C.. you're telling me I couldn't just contribute a new $5500 to an Ira and convert that money.. i have to convert the money that's already there first

You would still be able to do a backdoor Roth if you don't have any traditional IRA accounts. Your wife would not be able to fund a backdoor Roth without incurring tax. The tax calculation is prorated. Let's say she rolls over $5,500 from her 403b and she makes a $5,500 traditional IRA contribution and coverts that amount to a Roth. The total traditional IRA balance prior to conversion is $11,000 and you are converting $5,500 so one half of the conversion amount ($2,750) is taxable.

It's a little more complicated than that but that is the basic idea.

Thank you

 

[Tiger Fan]

Plug for the ARAG Legal Plan, if offered at your work.

On top of all of the things that ARAG already offers, I got a notice that now included is free identity theft monitoring, caregiving counseling/tips via phone, and finally "Beginning July 1, 2015 - Talk to a Financial Counselor." It goes on to describe this benefit as follows: "Maybe you have questions about retirement planning. Or you want to create a budget or debt management plan. These specialists offer information and guidance - without a sales pitch."

REALLY interested in giving this a go as a subscriber. The value on this plan was good IMO before they added this @ $7.95 a pay period after tax. I am really interested to see how far along the process they would take you. This would eliminate the fee associated with a fee-only advisor via ARAG membership. Will report back once I have time to call and chit chat with them, won't cost me anything even if it's not good!

I set up a will/trust through mine

 

[mquinnjr]

Plug for the ARAG Legal Plan, if offered at your work.

On top of all of the things that ARAG already offers, I got a notice that now included is free identity theft monitoring, caregiving counseling/tips via phone, and finally "Beginning July 1, 2015 - Talk to a Financial Counselor." It goes on to describe this benefit as follows: "Maybe you have questions about retirement planning. Or you want to create a budget or debt management plan. These specialists offer information and guidance - without a sales pitch."

REALLY interested in giving this a go as a subscriber. The value on this plan was good IMO before they added this @ $7.95 a pay period after tax. I am really interested to see how far along the process they would take you. This would eliminate the fee associated with a fee-only advisor via ARAG membership. Will report back once I have time to call and chit chat with them, won't cost me anything even if it's not good!

I set up a will/trust through mine

P.S. - You ever get your $25 bonus from CapOne360? I funded and got my $25 already, other $200 coming in a few months, and used your link to sign up.

 

[Tiger Fan]

Plug for the ARAG Legal Plan, if offered at your work.

On top of all of the things that ARAG already offers, I got a notice that now included is free identity theft monitoring, caregiving counseling/tips via phone, and finally "Beginning July 1, 2015 - Talk to a Financial Counselor." It goes on to describe this benefit as follows: "Maybe you have questions about retirement planning. Or you want to create a budget or debt management plan. These specialists offer information and guidance - without a sales pitch."

REALLY interested in giving this a go as a subscriber. The value on this plan was good IMO before they added this @ $7.95 a pay period after tax. I am really interested to see how far along the process they would take you. This would eliminate the fee associated with a fee-only advisor via ARAG membership. Will report back once I have time to call and chit chat with them, won't cost me anything even if it's not good!

I set up a will/trust through mine

P.S. - You ever get your $25 bonus from CapOne360? I funded and got my $25 already, other $200 coming in a few months, and used your link to sign up.

Hadn't thought to check...just did (in fact got two different ones)

 

[ghostguy123]

I hate this. I hate everything about this. Wife talked me into buying a new van. 2015 Honda Odyssey LX, $28,900 out the door.

We have also discussed that this will be the first and last time we ever purchase a new vehicle. Ever.

11 year old daughter, and a new baby due in October.

Financing 60 months at 1.9%, so no need for a 403b withdrawal for anyone who was wondering.

I just think a new car is as bad of an investment you can ever make, especially a van. But, wife rules on this one. I generally make all the money decisions, but I let her get her way on this one. It will be a great family vehicle, but still. Ugh. 500+ a month for 5 years.

Since 2007 I have only spent a few grand for my own personal cars because I buy and sell them every year or 2 for damn near what I bought them for. This is going to eat at me.

 

[FUBAR]

I hate this. I hate everything about this. Wife talked me into buying a new van. 2015 Honda Odyssey LX, $28,900 out the door.

We have also discussed that this will be the first and last time we ever purchase a new vehicle. Ever.

11 year old daughter, and a new baby due in October.

Financing 60 months at 1.9%, so no need for a 403b withdrawal for anyone who was wondering.

I just think a new car is as bad of an investment you can ever make, especially a van. But, wife rules on this one. I generally make all the money decisions, but I let her get her way on this one. It will be a great family vehicle, but still. Ugh. 500+ a month for 5 years.

Since 2007 I have only spent a few grand for my own personal cars because I buy and sell them every year or 2 for damn near what I bought them for. This is going to eat at me.

It's not an investment. It's a purchase.

not too much unlike a vacation.

If you can afford it, you got a decent price (no idea if you did), and it meets your wants and needs, it's alright.

 

[ghostguy123]

It's not an investment. It's a purchase.

not too much unlike a vacation.

If you can afford it, you got a decent price (no idea if you did), and it meets your wants and needs, it's alright.

All true, yet I still am stick to my stomach.

Cars are just something I hate spending a lot on, especially knowing you can get good used cars for 1/3 or 1/4 the price of a new one. Sure, the used car might last 6-7 years while the new one will last 15, but you can buy 4 of them (28 years worth) for the price of the one new one............plus lower insurance the entire time.

At least I know that it's a very nice van, will serve our family well for a long time, and is reliable and safe. It damn well better be for 29 grand and depreciating to about 12 grand in 5 years.

 

[Dentist]

I hate this. I hate everything about this. Wife talked me into buying a new van. 2015 Honda Odyssey LX, $28,900 out the door.

We have also discussed that this will be the first and last time we ever purchase a new vehicle. Ever.

11 year old daughter, and a new baby due in October.

Financing 60 months at 1.9%, so no need for a 403b withdrawal for anyone who was wondering.

I just think a new car is as bad of an investment you can ever make, especially a van. But, wife rules on this one. I generally make all the money decisions, but I let her get her way on this one. It will be a great family vehicle, but still. Ugh. 500+ a month for 5 years.

Since 2007 I have only spent a few grand for my own personal cars because I buy and sell them every year or 2 for damn near what I bought them for. This is going to eat at me.

my gawd.. how did the auto industry convince us that the 5 year loan is the new 3 year loan.

Man, if you can't easily pay for a car in 3 years, you're just buying too much.

Yet I can't tell you the last time I heard of someone getting a 3 year loan... I've heard more 7's than 3's.. and when I hear 7 I want to throw up on that person's chest.

Nice work auto industry!

 

[FUBAR]

I hate this. I hate everything about this. Wife talked me into buying a new van. 2015 Honda Odyssey LX, $28,900 out the door.

We have also discussed that this will be the first and last time we ever purchase a new vehicle. Ever.

11 year old daughter, and a new baby due in October.

Financing 60 months at 1.9%, so no need for a 403b withdrawal for anyone who was wondering.

I just think a new car is as bad of an investment you can ever make, especially a van. But, wife rules on this one. I generally make all the money decisions, but I let her get her way on this one. It will be a great family vehicle, but still. Ugh. 500+ a month for 5 years.

Since 2007 I have only spent a few grand for my own personal cars because I buy and sell them every year or 2 for damn near what I bought them for. This is going to eat at me.

my gawd.. how did the auto industry convince us that the 5 year loan is the new 3 year loan.

Man, if you can't easily pay for a car in 3 years, you're just buying too much.

Yet I can't tell you the last time I heard of someone getting a 3 year loan... I've heard more 7's than 3's.. and when I hear 7 I want to throw up on that person's chest.

Nice work auto industry!

Agreed on all, along with GG's perspective.

The trick is simple - few people consider how much they're paying in total, instead just looking at the monthly payment.

 

[Nugget]

I hate this. I hate everything about this. Wife talked me into buying a new van. 2015 Honda Odyssey LX, $28,900 out the door.

We have also discussed that this will be the first and last time we ever purchase a new vehicle. Ever.

11 year old daughter, and a new baby due in October.

Financing 60 months at 1.9%, so no need for a 403b withdrawal for anyone who was wondering.

I just think a new car is as bad of an investment you can ever make, especially a van. But, wife rules on this one. I generally make all the money decisions, but I let her get her way on this one. It will be a great family vehicle, but still. Ugh. 500+ a month for 5 years.

Since 2007 I have only spent a few grand for my own personal cars because I buy and sell them every year or 2 for damn near what I bought them for. This is going to eat at me.

my gawd.. how did the auto industry convince us that the 5 year loan is the new 3 year loan.

Man, if you can't easily pay for a car in 3 years, you're just buying too much.

Yet I can't tell you the last time I heard of someone getting a 3 year loan... I've heard more 7's than 3's.. and when I hear 7 I want to throw up on that person's chest.

Nice work auto industry!

Agreed on all, along with GG's perspective.

The trick is simple - few people consider how much they're paying in total, instead just looking at the monthly payment.

Just like cable and cell phones. People don't like to think their iPhone is going to cost them $6K over the next 5 years, but $100/month is not an issue.

The good news about your car payment is that you can lock it in for the next 84 months , as opposed to gas, electricity, or eggs

 

[ghostguy123]

I hate this. I hate everything about this. Wife talked me into buying a new van. 2015 Honda Odyssey LX, $28,900 out the door.

We have also discussed that this will be the first and last time we ever purchase a new vehicle. Ever.

11 year old daughter, and a new baby due in October.

Financing 60 months at 1.9%, so no need for a 403b withdrawal for anyone who was wondering.

I just think a new car is as bad of an investment you can ever make, especially a van. But, wife rules on this one. I generally make all the money decisions, but I let her get her way on this one. It will be a great family vehicle, but still. Ugh. 500+ a month for 5 years.

Since 2007 I have only spent a few grand for my own personal cars because I buy and sell them every year or 2 for damn near what I bought them for. This is going to eat at me.

my gawd.. how did the auto industry convince us that the 5 year loan is the new 3 year loan.

Man, if you can't easily pay for a car in 3 years, you're just buying too much.

Yet I can't tell you the last time I heard of someone getting a 3 year loan... I've heard more 7's than 3's.. and when I hear 7 I want to throw up on that person's chest.

Nice work auto industry!

At 1.9% it comes out to be about $1,400 in interest over five years.

Why is that bad again? COnsidering everyone in this thread would say "you can do much more with that money investing, take the 5 year loan at 1.9%"

And no, I absolutely do NOT look at it as a monthly payment as opposed to the total amount.

 

[ghostguy123]

I mean, I can buy it comfortably in 3 years, but why? I am putting that extra money away into my 403b. Is that the wrong way to do it? Serious question.

 

[KCitons]

It's not an investment. It's a purchase.

not too much unlike a vacation.

If you can afford it, you got a decent price (no idea if you did), and it meets your wants and needs, it's alright.

All true, yet I still am stick to my stomach.

Cars are just something I hate spending a lot on, especially knowing you can get good used cars for 1/3 or 1/4 the price of a new one. Sure, the used car might last 6-7 years while the new one will last 15, but you can buy 4 of them (28 years worth) for the price of the one new one............plus lower insurance the entire time.

At least I know that it's a very nice van, will serve our family well for a long time, and is reliable and safe. It damn well better be for 29 grand and depreciating to about 12 grand in 5 years.

Wow, the salesman really gave you a beating.

 

[slackjawedyokel]

I hate this. I hate everything about this. Wife talked me into buying a new van. 2015 Honda Odyssey LX, $28,900 out the door.

We have also discussed that this will be the first and last time we ever purchase a new vehicle. Ever.

11 year old daughter, and a new baby due in October.

Financing 60 months at 1.9%, so no need for a 403b withdrawal for anyone who was wondering.

I just think a new car is as bad of an investment you can ever make, especially a van. But, wife rules on this one. I generally make all the money decisions, but I let her get her way on this one. It will be a great family vehicle, but still. Ugh. 500+ a month for 5 years.

Since 2007 I have only spent a few grand for my own personal cars because I buy and sell them every year or 2 for damn near what I bought them for. This is going to eat at me.

my gawd.. how did the auto industry convince us that the 5 year loan is the new 3 year loan.

Man, if you can't easily pay for a car in 3 years, you're just buying too much.

Yet I can't tell you the last time I heard of someone getting a 3 year loan... I've heard more 7's than 3's.. and when I hear 7 I want to throw up on that person's chest.

Nice work auto industry!

Yep they push long term loans. Last two loans were 48 and 60 mos but each were paid off within 15 months. That's something that we have to plan in advance though.

 

[ghostguy123]

I guess I have to ask, what is the problem with the 5 year car loan when you are getting it at less than 2%?

It is simply that if you can't afford to do a shorter loan then you should buy a cheaper car (which is not the case for me)??

Or is there somewhere in the math that shows it is bad?

 

[Juxtatarot]

I guess I have to ask, what is the problem with the 5 year car loan when you are getting it at less than 2%?

It is simply that if you can't afford to do a shorter loan then you should buy a cheaper car (which is not the case for me)??

Or is there somewhere in the math that shows it is bad?

I agree with you. As long as you are doing something smart with the difference, it makes sound financial sense to take advantage of a low interest rate and borrow over a longer period of time.

 

[Dentist]

I guess I have to ask, what is the problem with the 5 year car loan when you are getting it at less than 2%?

It is simply that if you can't afford to do a shorter loan then you should buy a cheaper car (which is not the case for me)??

Or is there somewhere in the math that shows it is bad?

I didn't mean to blast you personally as much as I'm blasting society. You are in this thread so you care about money and are doing things right.

My issue with the 5 year loan is only part math, the rest is just the month to month mentality, and the mental weakness people have in stacking yet another x/mo onto the equation.

I look at a 5 year loan and think that if I chose the 3 that I'd get used to having less money, would be less tempted to buy stuff with the difference the 5 year loan saves me in monthly nut, and then once the loan is over in 3 years and I'm used to living on less I can put that entire car payment into investments and appreciating assets moving forward.

Part psyche, part math.