Finances and Planning for Future

[SAT 9,609]

Well, I know I have been there a couple times. I am sure most if not all the rest of us have. You were already ahead of the game with your habit of savings, keep that up!

Firstly - STOP BEATING YOURSELF UP! You can't control what others do, you can only control how you react to them. Pick yourself up, dust yourself off and march on. I know easier said then done but you got this!

Secondly - No 2o - something needs a brand new car. I don't care how much money you are making. At that age you should be investing that money into yourself and your personal growth, not something that devalues the second you sit in it. Just get a dependable used car, that's honestly all I buy to this day. Got my company truck and a used Infinity.

For now just focus on getting any job that will get you and your spouse through the hard times. Once everything settles down a bit start looking for the real money again, unless you have something on the horizon currently then go for it. But the main thing is having stability, whatever that means for you 2. It will be tough but no one ever learned anything from doing everything the right way the first time. You learn from your mistakes and mess ups, take the lesson and leave the rest.

Get stable, get to your feet, and get moving! We all have a lot more mistakes to make and lessons to learn, that's the adventure. The best part is you have your best friend and husband to enjoy the ride with now!

Keep saving, invest wisely, make sure you aren't all credit (you want to be fluid=cash as well), get what you need first and splurge when you can.

I'm sure others have some better advice hahahahaha

Edit - Just wanted you to know that I don't know ####### about anything

I couldn't have said this better myself.

Hang in there SinghSingh

[SAT 9,609]

This year most industries have positioned themselves for a trough year so things will be moving moderately to vastly slower then the previous 2. There will still be some job posting for companies filling critical positions that become open by attrition, or otherwise.

My point being, people should be preparing likewise. The best leading indicator that you can follow, at least from my experience, to see where the economy is going is by looking at the construction industry, i.e. building houses, rock quarries, etc. if those are picking up in business then that means people are getting loans, spending money, states and local towns can afford to repair roads/bridges, start new projects. All job creators and show and promote growth within a local and state economy.

Harvey you have good advice there.

I like to be vigilant of my surroundings. I'm fortunate in a sense where I live in a place where the economy is fueled by many different aspects of the machine. So I pay attention, what are people buying at best buy, Costco, how long are the lines, what are people ordering at restaurants.

I think we're in the middle of another real estate bubble, a bubble created by artificially low interest rates. (And also a bond bubble created by shaken investors from 2008's crisis). So I pay no mind to these reports on real estate. If unemployment drops to below 6.5 %, and the feds start raising rates again, will these real estate prices/sales be sustained at 5%, 6%, 7% interest rates?

The entire bond market is distorted. Lots of investors have fled to bond funds in the past few years (after the last financial crisis) When the interest rates start to creep up and the bonds lose value, the sell off would be even bigger than that of the last real estate bubble.

Now all this is just my speculation. It's what I see (And I'm sure many analysts).

But I'll stop here......

we were talking about everything finances, savings, planning for retirements, etc....lol

Plus if you come up with more complex #######, I can't keep up with you..........

[CHarvey80 72]

Harvey you have good advice there.

I like to be vigilant of my surroundings. I'm fortunate in a sense where I live in a place where the economy is fueled by many different aspects of the machine. So I pay attention, what are people buying at best buy, Costco, how long are the lines, what are people ordering at restaurants.

I think we're in the middle of another real estate bubble, a bubble created by artificially low interest rates. (And also a bond bubble created by shaken investors from 2008's crisis). So I pay no mind to these reports on real estate. If unemployment drops to below 6.5 %, and the feds start raising rates again, will these real estate prices/sales be sustained at 5%, 6%, 7% interest rates?

The entire bond market is distorted. Lots of investors have fled to bond funds in the past few years (after the last financial crisis) When the interest rates start to creep up and the bonds lose value, the sell off would be even bigger than that of the last real estate bubble.

Now all this is just my speculation. It's what I see (And I'm sure many analysts).

But I'll stop here......

we were talking about everything finances, savings, planning for retirements, etc....lol

Plus if you come up with more complex #######, I can't keep up with you..........

Eh, I am just a silly wrench monkey that can talk a half way decent game.

Bonds were the only thing making money as everything else was in the crapper. It was the only thing worth investing in along with Gold and Silver but those prices shot through the roof really quick when the freak out occurred.

A good thing to do the next time everyone gets complacent would be to buy gold and silver when it is low like it used to be and then wait for the next world wide freak show to sell it. Good fun!

I'm not sure about the housing being in another bubble though. I think people are still shell shocked due to what happened last time. Most places people, to say nothing of the market, haven't rebounded past food stamps since their entire towns imploded. California is starting to recover a little bit housing wise but the construction industry is going to rail that in really quick. I think California is selling right now due to outside investors, especially on the beach. But housing prices are starting to rebound, and yes a bit quicker then I initially thought they would.

Everything is tenuous at best but you can't put your life on hold. Right now is a good time to go out and make it happen and get what you want if you have positioned yourself well enough to do so.

It's still a gamble though.

You can't talk about this:

"we were talking about everything finances, savings, planning for retirements"

If you don't look at the entire picture and try and forecast where you want to be and how you want to get there while looking at what road blocks may arise and what the economy may be doing. That is why it all falls under Economics. You don't know where to place the individual blocks if you have know idea what the big picture looks like and how it is shifting.

Starting to feel like I am rambling now... Hahahaha

[888888 2]

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.

WOW , good job with all that you are doing.

[888888 2]

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

awesome arrangement. a little jealous and feeling slow reading some of these posts. better late than never though right !?

[fantonledzepp 159]

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.

It is indeed a great assistance to an education.

I serve as a NYC police officer, and I can tell you that cadets get treated better than recruits (different things in the dept.) They do indeed get to make their schedules.

Being a police officer has given me, and subsequently, my wife, a great deal of financial stability. I've had my retirement pensions and plans adjusted to show her as a beneficiary. We got full medical, dental, and ocular coverage. My pay is enough to live a modest middle-class life in NY. We also save, while still buying things for our apartment and go out to dinner.

And here's the best one: unlimited paid sick leave. I suffered a stroke in early December, albeit mild, I was left with weakness on my right arm, and my speech and writing (right handed) were non-existent. I've been out ever since, recuperating. My speech is almost back to normal and my right hand is as strong as it was.

Not to mention the extra help that we received from my extended family in blue...

[SAT 9,609]

It is indeed a great assistance to an education.

I serve as a NYC police officer, and I can tell you that cadets get treated better than recruits (different things in the dept.) They do indeed get to make their schedules.

Being a police officer has given me, and subsequently, my wife, a great deal of financial stability. I've had my retirement pensions and plans adjusted to show her as a beneficiary. We got full medical, dental, and ocular coverage. My pay is enough to live a modest middle-class life in NY. We also save, while still buying things for our apartment and go out to dinner.

And here's the best one: unlimited paid sick leave. I suffered a stroke in early December, albeit mild, I was left with weakness on my right arm, and my speech and writing (right handed) were non-existent. I've been out ever since, recuperating. My speech is almost back to normal and my right hand is as strong as it was.

Not to mention the extra help that we received from my extended family in blue...

Hey thank you for your service !

Having many friends in the NYPD, I attend a lot of 10-13 parties. As well as the various society events (Just went to a Asian Jade event). I wish you a speedy recovery and you really have a tough job to do.

[Nich-Nick 3,354]

I have some very basic, plain talk suggestions for those who are very young and just starting out.

1. Put away some money every month towards savings. If you have the opportunity for payroll deduction to be deposited straight to your savings account, then you never see it in your checking account. Get in the habit of saving.
   
2. Pay your credit card balance in full every month. If you can't, then you are spending too much. If you have already accrued a huge balance, then you've dug a hole it's hard to climb out of.
   
3. Open a savings account for your kids when they are babies. Put something in each month.
   
4. If you have an opportunity to contribute to a 401k especially If the employer will match your contributions, it's a good deal---free money from your employer. Try to contribute at least up to the amount they match.
   
5. You don't need every one of the latest gadgets that comes out. You can survive without an iPhone even though all the cool kids have them. If you can't pay off your credit cards or make it to the end of the month on your paycheck, then don't get the cool stuff that isn't essential.
   
6. If you have a mortgage and intend to stay put in that house, consider paying a little extra each month. Get an amortization table that shows how much is going toward the loan balance and how much is interest out of each payment. Early in a mortgage, most of it is interest.
   Let's say your payment #8 is $800 ( $25 to the loan + $775 interest) if you pay just an additional $25 one month, you are jumping ahead a whole payment to #10 without the $700+ interest. Use some of your tax refund to to make a lump payment. I took 10 years off my 30 year mortgage early on doing that. I will admit that my dad gave me $1k or maybe $2k for Christmas and said the stipulation was use it toward the mortgage. I was blown away at how much I shortened the mortgage...something a 25 year old probably doesn't know. But it taught me how it works and I was thrilled to have a house paid off about the time the kids started college.
   

[fantonledzepp 159]

Hey thank you for your service !

Having many friends in the NYPD, I attend a lot of 10-13 parties. As well as the various society events (Just went to a Asian Jade event). I wish you a speedy recovery and you really have a tough job to do.

Thank you for appreciation.

[SAT 9,609]

I have some very basic, plain talk suggestions for those who are very young and just starting out.

1. Put away some money every month towards savings. If you have the opportunity for payroll deduction to be deposited straight to your savings account, then you never see it in your checking account. Get in the habit of saving.
2. Pay your credit card balance in full every month. If you can't, then you are spending too much. If you have already accrued a huge balance, then you've dug a hole it's hard to climb out of.
3. Open a savings account for your kids when they are babies. Put something in each month.
4. If you have an opportunity to contribute to a 401k especially If the employer will match your contributions, it's a good deal---free money from your employer. Try to contribute at least up to the amount they match.
5. You don't need every one of the latest gadgets that comes out. You can survive without an iPhone even though all the cool kids have them. If you can't pay off your credit cards or make it to the end of the month on your paycheck, then don't get the cool stuff that isn't essential.
6. If you have a mortgage and intend to stay put in that house, consider paying a little extra each month. Get an amortization table that shows how much is going toward the loan balance and how much is interest out of each payment. Early in a mortgage, most of it is interest.
   Let's say your payment #8 is $800 ( $25 to the loan + $775 interest) if you pay just an additional $25 one month, you are jumping ahead a whole payment to #10 without the $700+ interest. Use some of your tax refund to to make a lump payment. I took 10 years off my 30 year mortgage early on doing that. I will admit that my dad gave me $1k or maybe $2k for Christmas and said the stipulation was use it toward the mortgage. I was blown away at how much I shortened the mortgage...something a 25 year old probably doesn't know. But it taught me how it works and I was thrilled to have a house paid off about the time the kids started college.

[CHarvey80 72]

I have some very basic, plain talk suggestions for those who are very young and just starting out.

1. Put away some money every month towards savings. If you have the opportunity for payroll deduction to be deposited straight to your savings account, then you never see it in your checking account. Get in the habit of saving.
   
2. Pay your credit card balance in full every month. If you can't, then you are spending too much. If you have already accrued a huge balance, then you've dug a hole it's hard to climb out of.
   
3. Open a savings account for your kids when they are babies. Put something in each month.
   
4. If you have an opportunity to contribute to a 401k especially If the employer will match your contributions, it's a good deal---free money from your employer. Try to contribute at least up to the amount they match.
   
5. You don't need every one of the latest gadgets that comes out. You can survive without an iPhone even though all the cool kids have them. If you can't pay off your credit cards or make it to the end of the month on your paycheck, then don't get the cool stuff that isn't essential.
   
6. If you have a mortgage and intend to stay put in that house, consider paying a little extra each month. Get an amortization table that shows how much is going toward the loan balance and how much is interest out of each payment. Early in a mortgage, most of it is interest.
   Let's say your payment #8 is $800 ( $25 to the loan + $775 interest) if you pay just an additional $25 one month, you are jumping ahead a whole payment to #10 without the $700+ interest. Use some of your tax refund to to make a lump payment. I took 10 years off my 30 year mortgage early on doing that. I will admit that my dad gave me $1k or maybe $2k for Christmas and said the stipulation was use it toward the mortgage. I was blown away at how much I shortened the mortgage...something a 25 year old probably doesn't know. But it taught me how it works and I was thrilled to have a house paid off about the time the kids started college.
   

The last one is huge! Because of that after the first year of being in my house I had over $10,000 paid down on my loan. If you plan on staying in the house the best thing you can ever do is pay any extra per month you can afford too. Also, a good thing to know is that the shortest time you should live in a house is two years. If you sell it prior to the two years the equity is taxed as income, you also have to live in the house for at least 50-60% of those 2 years. Can't remember the exact #.

Edit - I also wanted to add that even if you only break even on your loan when you sell your house you are still making out. Think of it this way, if you lived in the house for 4 years and you are only able to sell the house for what you purchased it for then you just got 4 years of free rent basically. Ya it's a bummer you couldn't get enough to use for a down payment on your next house but you still turned around with a positive.

Edited February 24, 2013 by CHarvey80

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

A question for some of you that we've been trying to figure out. We will have enough in cash to buy a house, but I don't think it is prudent to spend it all. What combination of mortgage/cash would be best?

[CHarvey80 72]

It is indeed a great assistance to an education.

I serve as a NYC police officer, and I can tell you that cadets get treated better than recruits (different things in the dept.) They do indeed get to make their schedules.

Being a police officer has given me, and subsequently, my wife, a great deal of financial stability. I've had my retirement pensions and plans adjusted to show her as a beneficiary. We got full medical, dental, and ocular coverage. My pay is enough to live a modest middle-class life in NY. We also save, while still buying things for our apartment and go out to dinner.

And here's the best one: unlimited paid sick leave. I suffered a stroke in early December, albeit mild, I was left with weakness on my right arm, and my speech and writing (right handed) were non-existent. I've been out ever since, recuperating. My speech is almost back to normal and my right hand is as strong as it was.

Not to mention the extra help that we received from my extended family in blue...

I don't think any stroke can be termed as mild, considering the implications and what you have to recover from.

I am happy to know that you are well on the road to full recovery and I hope that while it was your first, it will be your last!

Cheers to your health!

[fantonledzepp 159]

I don't think any stroke can be termed as mild, considering the implications and what you have to recover from.

I am happy to know that you are well on the road to full recovery and I hope that while it was your first, it will be your last!

Cheers to your health!

Thank you for your kind words. Yes, it was my first, and hopefully my last.

[CHarvey80 72]

A question for some of you that we've been trying to figure out. We will have enough in cash to buy a house, but I don't think it is prudent to spend it all. What combination of mortgage/cash would be best?

I have talked about this with my sister in law quite a bit, she is a real estate agent and a broker.

Firstly, you never want to take all your cash and put it down. Save some of it for fixing stuff, rainy day fund, etc.

If you are doing an FHA loan then I think they only require 3% down. I didn't put much down on this house as I knew I could cover the mortgage and I knew it was just a first home type deal.

But, if you talk to my sister in law, $30,000 - $50,000 is a good down payment as it will drastically reduce your mortgage payment each month which will make your day to day life more manageable.

But I think it boils down to what your needs are. How much can you afford to put down? How much is the loan? What payments can you afford? Is the house a fixer upper? How much will the repairs run? Do you have repair insurance from the seller? etc. etc.

Also, make sure you bundle your property insurance, property tax, etc. in with your monthly mortgage payment. Makes life a lot easier because you don't have to think about all of that, it is just taken care of.