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As long as you're debt free and have a comfortable cash reserve,
GREAT long term idea. It's been shown that solid mutual funds are great investments for the long run.
NT: Official Personal Finances Thread
GREAT long term idea. It's been shown that solid mutual funds are great investments for the long run.
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VITPX is doing great for my 401K, up 8.3% this year. I put 100% in there and forget about it.
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So I'm kind of in a jam 
It could be worse, but I want to protect my self in the event that it does get worse.
I have a nice chunk in my 401k and I'm 100% vested. I'm eligible for a loan of up to I think 15k. And they'll just repay it through my payroll over the course of however many years (although I have the option of repaying it in full sooner if I want)
Should I go ahead and pull that trigger? Just in case? (I'm in my early-mid 20s if that matters)
It could be worse, but I want to protect my self in the event that it does get worse.
I have a nice chunk in my 401k and I'm 100% vested. I'm eligible for a loan of up to I think 15k. And they'll just repay it through my payroll over the course of however many years (although I have the option of repaying it in full sooner if I want)
Should I go ahead and pull that trigger? Just in case? (I'm in my early-mid 20s if that matters)
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Your 401K is meant for the long term. You're not vested for the short term, you're in this for the next 40+ years. Over that time, most of the companies in your portfolio will make money therefore you will too. When you unplug that money, you're not only missing out on the returns, but you're also paying yourself interest on that money.So I'm kind of in a jam
It could be worse, but I want to protect my self in the event that it does get worse.
I have a nice chunk in my 401k and I'm 100% vested. I'm eligible for a loan of up to I think 15k. And they'll just repay it through my payroll over the course of however many years (although I have the option of repaying it in full sooner if I want)
Should I go ahead and pull that trigger? Just in case? (I'm in my early-mid 20s if that matters)
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Question for those in the insurance industry. We have 20 year term life policies for my wife & I. When we got them, they were 10x our annual salaries. Now my wife has received automatic raises every year and her policy is only about 80% of what she's making and when she goes into administration in about 5 years, she'll be making about double which would drop her policy to about 50% of her salary. My question is what's the best way to increase coverage? Our policies are already about 5 years into their term so will we need to cancel and just get new policies, or is there a way to increase them?
My concern now is that we're both 5 years older, so a new 20 year term might increase our annual fee if we go back on the open market instead of just tacking on the additional coverage.
My concern now is that we're both 5 years older, so a new 20 year term might increase our annual fee if we go back on the open market instead of just tacking on the additional coverage.
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Not in the insurance industry, but spent a lot of time looking into this kind of stuff. Depending on what type of policy you have, you may be able to convert your term policy into a permanent policy. From there, you can increase the death benefit for you and/or your wife. Assuming your policy has conversion clause, converting it to a permanent policy would also allow you to keep your coverage without the need for additional exams or a renewal premium.
It's not the best way to get more coverage, but you could theoretically convert to permanent, change your death benefit, and use the cash value component of the policy to make up the difference or simply pay a higher premium.
Really just depends on what kind of policy you have now and what your goals are going forward.
It's not the best way to get more coverage, but you could theoretically convert to permanent, change your death benefit, and use the cash value component of the policy to make up the difference or simply pay a higher premium.
Really just depends on what kind of policy you have now and what your goals are going forward.
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Ya, we only have basic term policies. Adding convertability clauses or other riders adds too much to the premium and we're more interested in coverage than flexibility since we're planning on paying off our home in <20 years and both of the kids will be gone by then too so we should be pretty set and be self insured by that point too.
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everyone in here mess with low-index funds?
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What is a "low-index fund"? Like penny stock funds?
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Anyone follow Jim Collins and his blog the stock series, http://jlcollinsnh.com/stock-series/? A lot of info there made simplified.
Anyway, he just recently released his book, The Simple Path to Wealth. I'm thinking of checking it out.
Anyway, he just recently released his book, The Simple Path to Wealth. I'm thinking of checking it out.
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I have his site saved into my favorites here at work, low key forgot about it...appreciate the reminder.
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Yes I have read the stock series, his advice is why I have my easy set it and forget it 401K plan lol.
100% VITPX.
I will be buying his book very soon.
antidope
Supporter
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Paid off my student loans yesterday. Been throwing a ton of money at them all year long, and its finally done. Have a small stub piece of debt left, but I can get rid of that easily if I attacked it like I did my student loans.
Four years, eight months, and two refinancings. One day I'm gonna call all my lenders and get an exact dollar amount how much I paid in total. I have to see it.
If/when I do go back to school at least now I'll be able to do this in a much smarter way, and not have this dominate my finances like it did the first go around.
Four years, eight months, and two refinancings. One day I'm gonna call all my lenders and get an exact dollar amount how much I paid in total. I have to see it.
If/when I do go back to school at least now I'll be able to do this in a much smarter way, and not have this dominate my finances like it did the first go around.
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Congrats. I'm 5k away from that goal too but been debating whether to put that into stocks if I can get a better ROI than the 4% interest.
antidope
Supporter
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Thats what I stopped doing. I made the decision to stop putting money into my PA and just throw it at the loans instead. I didnt like the idea of investing while I had debt, even though YTD my return was exceeding the interest. It's definitely not a bad play though.
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It's $5000 at a guaranteed 5% ROI vs. $5000 w/ an uncertain ROI and capital gains taxes on whatever you make. It's a no brainer to me.
antidope
Supporter
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4% isnt cheap debt either. The interest was the primary reason I wanted to get my loans outta here. Wasnt cheap debt.
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What do you all consider cheap debt? Same as inflation or less?
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Yeah if the actual debt value is high, 4% is a lot of interest. You got people paying $100 towards student loans, but accruing $100 in interest a month. Really need to hit that instead of saving for potential gains on savings.
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It comes out to a little less than $200 of interest a year for me.
antidope
Supporter
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Anything at or above 4% definitely isn't cheap debt to me.
Once you get over 3.5% we've crossed the line into expensive.
Once you get over 3.5% we've crossed the line into expensive.
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I'm looking to start an IRA account in the near future. I'm thinking of opening a lending club retirement account. I love the idea of making interest off of my money and it going into a tax deductible retirement account. Right now I really dont care about being aggressive with that money. I just want to put it somewhere safe. I'm really just doing it for the tax deduction.
thoughts ?
thoughts ?
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No. At this point in life be aggressive. You're not going to be pulling it for another 30 years and the difference in 1-3% annually over that time can be hundreds of thousands.
Personally, I've cooled to Lending Club over the past several months. I have had 3 accounts go into default after only a couple months of payments. One person took out the loan and didn't even try to make payments. Just took the money and ran.
I set up my portfolio as a 9% target. So far, it's netting 3.44%. If you want to do it as an alternative to a savings account it can be a good option. But personally I would stay away from bond/debt type investing for retirement at this point in life.
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No. At this point in life be aggressive. You're not going to be pulling it for another 30 years and the difference in 1-3% annually over that time can be hundreds of thousands.
Personally, I've cooled to Lending Club over the past several months. I have had 3 accounts go into default after only a couple months of payments. One person took out the loan and didn't even try to make payments. Just took the money and ran.
I set up my portfolio as a 9% target. So far, it's netting 3.44%. If you want to do it as an alternative to a savings account it can be a good option. But personally I would stay away from bond/debt type investing for retirement at this point in life.
What is the penalty for that person just a bad credit report?
Lending club doesnt put out a court order or anything like that right?
