Finances and Planning for Future

[SAT 9,609]

Not all of our fellow VJers are financially sound. And not all of our fellow immigrants arrive with a fat wallet....

How do you plan for your financial future here in America?

Backstory...I live in NYC (You guys know that already). So naturally I grew up with many immigrants from all areas of the world. In my life I have seen many many great success stories by these immigrants. And many failures.

In my adult life, I'm fortunate to have done some things right. And I'm sure there are many VJers that find themselves in great shape. And many VJers that are even in the field of finance/banking/ etc...

Why not share some of the things that we do to plan for our financial future, for us, for our kids.... If not for advice, for reference......

Things such as personal finance, loans, investments, shopping strategies, educational funding, retirement, and anything else that you can think of that might help us along the way.

And field questions in the same process.

[Cathi 5,755]

Great thread!!!

[SAT 9,609]

Great thread!!!

Thank you lol.

I'll let others go first, then I'll add my 2 cents.

[Sayha or bust. 71]

I put 10% in my 401k, bought a bit more term life insurance in case I croak in addition to what my job offered. Bank all my wife's earnings that we will later put into a Roth account after we pay for the kid's(4) College education and down payment on our dream house. I never turn down any overtime and continue to work my heating and Air on weekends and evenings after my full time Job.

[SAT 9,609]

I put 10% in my 401k, bought a bit more term life insurance in case I croak in addition to what my job offered. Bank all my wife's earnings that we will later put into a Roth account after we pay for the kid's(4) College education and down payment on our dream house. I never turn down any overtime and continue to work my heating and Air on weekends and evenings after my full time Job.

wow that's great lol.

College fund -Iowa 529K?

Perhaps you can brief us on it. If memory serves me correctly, Iowa has one of the best 529K college savings programs.

BTW Sayha, in one post you just about covered everything lol

Edited February 23, 2013 by SteveAndTiff

[N-o-l-a 7,167]

I've been saving for the little one's college even before she was born even when we were flat out broke...any check that goes to her for a birthday or Christmas goes in the fund. If am I comfortably over any month it goes in there too.

When we get to America, the Dane and I are purchasing life insurance. It is super important for people of any age so your family can afford funeral costs and the immediate costs of your estate and to cover any transitional periods after your death. I can't recommend it enough.

This doesn't have to do with me, but my older mother who has put me as joint on her accounts so I can access the money for her care in case she becomes unable to do so and to immediately access it upon her death. That would only be if you really trusted the other party, though.

Also, upon receiving the money from the hopefully upcoming sale of our house, we will put a certain amount aside for a rainy day. My financial planner dad always told me to have 6 months or more of income saved up in case you lost your job. In the current economy, I think it should be more like a year.

We are careful with our money, but not so frugal that we end up costing ourselves more in the end. The key is to spend the right amount at the right times like buying a quality product rather than a cheaper one, etc.

[SAT 9,609]

I got my first degree for free. So I'm grateful to the tax payers and Uncle Sam.

But I don't expect my daughter to attend a military academy...so one of the ways I save for her education is the NY529 college savings plan.

It's one of the better ones. And I think almost every state offers one. It's tax deductible, and/ or you can make payroll contributions pretax.

The NY fund is managed by "Upromise", in partnership with Vanguard. You can direct your own investments over the years, or have an "advisor" plan where they'll manage it for you. It's really simple and you can start with as little as 25 dollars. The plan is not for profit, so no one is making money on you. And Upromise has "partners" such as credit card companies, that'll contribute to this fund every time you use the card. Other companies, such as Target, Home depot, Exxon, etc, also participate.

The rule of thumb, if you see that the markets are flat- leave your money in more responsible stable funds. If you see the markets rallying- put your money in higher risk funds. The website is very informative. It's NYSAVES.ORG. (Can we put that here? is that TOS?)

with that, I'll touch on "The rule of 72".....

Take the number 72, divide that by the percentage interest/ profit that your money is earning. that's the number of years it will take to double your money.

I'll use my daughter's 529 as an example. Last year her investments returned approximately 15% profit. at that rate, her college money will double in 4.8 years. (that doesn't mean that her account will return 15% every year).

Edited February 23, 2013 by SteveAndTiff

[Sayha or bust. 71]

wow that's great lol.

College fund -Iowa 529K?

Perhaps you can brief us on it. If memory serves me correctly, Iowa has one of the best 529K college savings programs.

BTW Sayha, in one post you just about covered everything lol

I don't have a clue on a 529, I probably not doing the smartest thing by accruing my wife's money in our savings at such a small interest rate but I need large amount in the fall for the 2 of the kids tuition and down payment for the house, so I couldn't tie my money up in the Roth account till after all this done and over with. Plus just sent a significant amount overseas to build my wifes mom and dad a new home. It will all come together at some point.

[SAT 9,609]

While I'm on the subject of education.....

Growing up here, I have many friends in the NYPD. One of the greatest college programs that I've ever seen is the NYPD Police Cadet Corps.

No one ever heard of it. Yet (in my opinion) it's much much better than any ROTC or military sponsored programs. And it's really easy to get into....

Lets start with the benefits.

1-You get a part time job that pays around 14 dollars an hr. 20 hr weeks for administrative police work. You can have more hrs if you ask for it. You can make your own hrs on a 24/7 schedule. 40 Hr work weeks during school breaks.

2- You get up to 50,000 dollars in tuition assistance. (In the form of a student loan)

3- If you subsequently serve 2 years as a NYC Police Officer, that loan is forgiven.

4.- You get hiring preference.

Now the requirements....

You'd have to google NYPD cadet corps. I know the requirements are fairly simple. You don't have to be a genius, you don't need great grades. You do have to have some college (I think to prove that you're a serious student). You do have to go through a background check.

For those of you that read my story about my friend Mary (whose father abandoned 2 families). She went through this NYPD cadet Corps. And that's my source of info.

[SAT 9,609]

I don't have a clue on a 529, I probably not doing the smartest thing by accruing my wife's money in our savings at such a small interest rate but I need large amount in the fall for the 2 of the kids tuition and down payment for the house, so I couldn't tie my money up in the Roth account till after all this done and over with. Plus just sent a significant amount overseas to build my wifes mom and dad a new home. It will all come together at some point.

My friend, it sounds to me that you are a great example of a hard working American who did a lot of things right. The 529 is not something you should start now if your kids are ready for college. It should have been started at a younger age.

But you seem to be ready for it, that's admirable. And your wife (and her family) are very fortunate that you went so far as to even allot for them in your budget.

You're a good guy Sayha.

[Sayha or bust. 71]

My friend, it sounds to me that you are a great example of a hard working American who did a lot of things right. The 529 is not something you should start now if your kids are ready for college. It should have been started at a younger age.

But you seem to be ready for it, that's admirable. And your wife (and her family) are very fortunate that you went so far as to even allot for them in your budget.

You're a good guy Sayha.

Thanks Steve, I've become better over the years in planning my future. I should of been a little smarter in my younger days, Oh well. I even added the insurance clause in my 2 car payments to be paid off in case I die. I don't want my wife stuck with any other debt than maybe a house payment at most. I don't want sound stereotypical but taking care of my wife's parents was a unwritten law when you marry an Asian lady? They are hard working farmers and deserve every penny we send over. The wife knows that our bills come first.

Rich

[N-o-l-a 7,167]

Thanks Steve, I've become better over the years in planning my future. I should of been a little smarter in my younger days, Oh well. I even added the insurance clause in my 2 car payments to be paid off in case I die. I don't want my wife stuck with any other debt than maybe a house payment at most.

That is a great idea. My dad bought a new car several months before he died that he got scammed on the price for. We ended up having to negotiate with USAA to take 4k less than what the loan was for because that is all we could sell it for. I don't know if other loan companies would be as nice.

[SAT 9,609]

1361646539[/url]' post='5999779']

That is a great idea. My dad bought a new car several months before he died that he got scammed on the price for. We ended up having to negotiate with USAA to take 4k less than what the loan was for because that is all we could sell it for. I don't know if other loan companies would be as nice.

On the subjects of loans........

. Among growing trends is "peer to peer" lending. There are several companies that act as an intermediary between potential borrowers and lenders.

A borrower will go through the same credit checks as any conventional loan. Then once approved, an interest rate will be determined. Then the borrower will present his application to his peer lenders. The lenders then have the option of lending any amount of that loan to the borrower. So in essence, a borrower wants to borrow 3000 bucks to pay off a high interest credit card, 50 people chip in to lend him money. No balance transfer fees....

Benefits.....

For the borrower, a simple and more economical way to borrow money needed for any reason.

For the lender, an alternative to low interest bearing bank accounts.

Fees, minimal.

Risks, some.

Google "peer to peer lending"

[SAT 9,609]

but taking care of my wife's parents was a unwritten law when you marry an Asian lady? They are hard working farmers and deserve every penny we send over. The wife knows that our bills come first.

Rich

Yes Rich lol. You're 100% right there. Your wife, my wife...They're good daughters. I don't mind, I like my in laws a lot. They're quite frugal, and appreciate everything we do for them. They make me feel good.

[mtcmk1 37]

I made sure I had all credit cards paid off, car paid off a couple years ago... etc.

I started living on a budget, saving 10% on a CDs account and 3% of paychecks on another regular savings. Plus 401k...

I am blessed to be from a frugal family, and living simply is great!

In the future, we are making plans to own a small comfortable home and still live on a budget while saving for our children's future

Thanks for starting this thread! I love making plans for a better financial future!