MM December randoms

[ohgillian]

What's happening?

I have a relative complaining over email about how she "can't itemize anymore - thanks Trump." I hate Trump with the passion of a million suns but I also hate inaccurate tax info. I am practically sitting on my hands to keep from jumping in on this family thread.

[Correct info - she can itemize if she wants, but presumably the Standard Deduction is higher than the amounts she would itemize, so now she takes the Standard Deduction. Itemizing would just increase her tax bill by reducing her deductions.]

[ohgillian]

Also, I uninvested (is that a word) money for the downpayment for a vacation house we want to buy. I feel so nervous that we might really move forward on this. Not money nervous, just "omg I can already barely manage my life as is."

[savan]

ohgillian, Is she affected by the SALT cap? We used to itemize until they capped it at $10k. Now it makes more sense to take the standard deduction, but we also now have to pay $5k+ more in taxes each year. I could understand if your relative was bitter over that.

My random is that I need to try again to get a small amount of inheritance that has been sitting in an IRA. I’ve been two multiple bank branches and they can’t seem to help me. At this point I imagine I will see none of it due to tax penalties for not withdrawing in a timely manner. But I should still try again to take care of it.

[tripleshot]

We’re trying to help MIL decide where to put $100k. FIL passed away unexpectedly in October and this was a life insurance policy. Due to other income streams from his business, she won’t need it for maybe 10 years. She’s 72. She went to Edward Jones and Huntington and their program fees are 1.35% and 1.5% and other fees were high too along with some concerning language in the paperwork. We told her as much and suggested Vanguard Personal Advisor Services since their fee is 0.3% and the FA are fiduciaries. She’s going to wait until after the first of the year to decide. Does anyone have any advice on what to do or how to explain to her the two options she looked at are not good?

[katebeckett]

Dec 7, 2021 9:53:01 GMT -5 tripleshot said:

We’re trying to help MIL decide where to put $100k. FIL passed away unexpectedly in October and this was a life insurance policy. Due to other income streams from his business, she won’t need it for maybe 10 years. She’s 72. She went to Edward Jones and Huntington and their program fees are 1.35% and 1.5% and other fees were high too along with some concerning language in the paperwork. We told her as much and suggested Vanguard Personal Advisor Services since their fee is 0.3% and the FA are fiduciaries. She’s going to wait until after the first of the year to decide. Does anyone have any advice on what to do or how to explain to her the two options she looked at are not good?

What about a calculator like the one on this page? It will show just how much of her money will be lost to fees over the 10 years.
www.nerdwallet.com/article/investing/mutual-fund-expense-ratios

[ohgillian]

Dec 7, 2021 9:35:56 GMT -5 savan said:

ohgillian , Is she affected by the SALT cap? We used to itemize until they capped it at $10k. Now it makes more sense to take the standard deduction, but we also now have to pay $5k+ more in taxes each year. I could understand if your relative was bitter over that.

My random is that I need to try again to get a small amount of inheritance that has been sitting in an IRA. I’ve been two multiple bank branches and they can’t seem to help me. At this point I imagine I will see none of it due to tax penalties for not withdrawing in a timely manner. But I should still try again to take care of it.

I don't think so, but I hadn't thought of that angle, so maybe you're right!

[simpsongal]

Dec 7, 2021 9:53:01 GMT -5 tripleshot said:

We’re trying to help MIL decide where to put $100k. FIL passed away unexpectedly in October and this was a life insurance policy. Due to other income streams from his business, she won’t need it for maybe 10 years. She’s 72. She went to Edward Jones and Huntington and their program fees are 1.35% and 1.5% and other fees were high too along with some concerning language in the paperwork. We told her as much and suggested Vanguard Personal Advisor Services since their fee is 0.3% and the FA are fiduciaries. She’s going to wait until after the first of the year to decide. Does anyone have any advice on what to do or how to explain to her the two options she looked at are not good?

I need to help my mom w/this too.  I might look harder at the T Bills (or I bill?) type vehicles folks on this board were discussing.  She probably has a few hundred thousand earning next to nothing in a savings account.  I at least put her annuity in something w/a little return - she couldn't believe how much it earned this year.  She's so smart but just doesn't seem to understand finances or compounding interest, or inflation.....

[ohgillian]

simpsongal, the max amount of ibonds you can buy per year is $15,000, so it's probably not worth it if you have a few hundred thousand to deal with.

[aspentosh]

Dec 7, 2021 9:53:01 GMT -5 tripleshot said:

We’re trying to help MIL decide where to put $100k. FIL passed away unexpectedly in October and this was a life insurance policy. Due to other income streams from his business, she won’t need it for maybe 10 years. She’s 72. She went to Edward Jones and Huntington and their program fees are 1.35% and 1.5% and other fees were high too along with some concerning language in the paperwork. We told her as much and suggested Vanguard Personal Advisor Services since their fee is 0.3% and the FA are fiduciaries. She’s going to wait until after the first of the year to decide. Does anyone have any advice on what to do or how to explain to her the two options she looked at are not good?

Does she want to invest in the market or more a money market account?

We put our investment accounts in Personal Capital for a variety of reasons and their rates are pretty good. Definitely less than 1% but I can't remember for certain. Their FA also help with other things that may not be applicable for your MIL, but it's a full service team.

[tripleshot]

Dec 7, 2021 14:19:27 GMT -5 aspentosh said:

Dec 7, 2021 9:53:01 GMT -5 tripleshot said:

We’re trying to help MIL decide where to put $100k. FIL passed away unexpectedly in October and this was a life insurance policy. Due to other income streams from his business, she won’t need it for maybe 10 years. She’s 72. She went to Edward Jones and Huntington and their program fees are 1.35% and 1.5% and other fees were high too along with some concerning language in the paperwork. We told her as much and suggested Vanguard Personal Advisor Services since their fee is 0.3% and the FA are fiduciaries. She’s going to wait until after the first of the year to decide. Does anyone have any advice on what to do or how to explain to her the two options she looked at are not good?

Does she want to invest in the market or more a money market account?

We put our investment accounts in Personal Capital for a variety of reasons and their rates are pretty good. Definitely less than 1% but I can't remember for certain. Their FA also help with other things that may not be applicable for your MIL, but it's a full service team.

I don’t think she understands enough to know what she wants to do. I think she wants it to grow (invest), which isn’t guaranteed but if she’s not planning on touching it for almost 10 years, it should be a good bet versus a high yield savings account, right?

[aspentosh]

Dec 7, 2021 14:25:04 GMT -5 tripleshot said:

Dec 7, 2021 14:19:27 GMT -5 aspentosh said:

Does she want to invest in the market or more a money market account?

We put our investment accounts in Personal Capital for a variety of reasons and their rates are pretty good. Definitely less than 1% but I can't remember for certain. Their FA also help with other things that may not be applicable for your MIL, but it's a full service team.

I don’t think she understands enough to know what she wants to do. I think she wants it to grow (invest), which isn’t guaranteed but if she’s not planning on touching it for almost 10 years, it should be a good bet versus a high yield savings account, right?

If she's planning on letting it sit for even close to 10 years, I'd say for sure investment. Maybe as she gets closer she can switch to lower risk/lower reward stocks. This is not my area of expertise, which is why we hired someone. Ex: my H wants an electric truck next year ($$$) and our FA suggested slowing our savings into our investment account and keeping it in a high yield savings account because it's so short term. And because that account isn't with him, he was losing out on money, so I know he has our best interests at heart. 

Anyway, we really love them. They do "socially responsible investing" so I'm not investing in things like guns, tobacco, etc. My H started a new job this year and he had us send over the 401k options and he gave us suggestions on how to allocate. It's just a really nice relationship without being too much. Happy to pass on his info and I know he'd be happy to chat and see if it's a good fit. No pressure, obviously. 

[simpsongal]

aspentosh, can you send it my way? Is you FA a fiduciary? My mom has income from social security, a small pension, and a decent annuity payout (gauged to last until she's in her late 80s). She puts extra money every month in savings and has a decent chunk of extra money she'll need for big expenses like a new car and home repair. But I've told her the best bet is for her to save as much as she can each month for those big expenses and put as big a chunk of the lump sum in something that generates more returns than a mere saving account.

Would vanguard make sense? they have pretty low rates right?

Also I can't even bring myself to give my own MM report - our budget is stretched so thin from this house project and holidays. I hate living on the edge like this and CAN'T WAIT to turn off the spending tap and just start chunking down this debt!!!!

[ny96]

For the first time in a long time we have a credit card balance. We’ve been spending a lot lately and I just paid our property taxes, but I’m really bothered by the debt. The thing is I shouldn’t be because we’ll be able to pay it off next month, but we’re having a hard time these days living within our paychecks.

[melmel48]

I recently fractured my shoulder... I obviously need PT. My copays are $80/session!!! I don't have that kind of money (two sessions per week for at least 6 weeks). My parents both said, "take it from the family savings account". I am SO grateful they are going to help me but feel like a dofus. I am 42 and can't even afford myself.

[flygirl]

Dec 7, 2021 18:06:38 GMT -5 melmel48 said:

I recently fractured my shoulder... I obviously need PT. My copays are $80/session!!! I don't have that kind of money (two sessions per week for at least 6 weeks). My parents both said, "take it from the family savings account". I am SO grateful they are going to help me but feel like a dofus. I am 42 and can't even afford myself.

I don’t think you should feel bad.  My Dr said that I needed to do 12 sessions of PT before my insurance would allow surgery.  I’m like YOU REALIZE THAT WILL COST ME $600 right?  I got an exception to bypass it.  I hope your shoulder gets better!

[melmel48]

flygirl,Thank you So glad you got a bypass!

It is tough on a single income.. I can't just come up with $1,000 for PT plus the Ortho copay... and the $50 copay I paid for Urgent Care when I first fell.

I am hoping I can explain to the PT the financial issues; but if I have to do 12 sessions at $80 a pop, I will. I am thinking of offering to split it with my parents even though the "family savings account" is for stuff like this. I just know they are going to need that $ for my Dad in the not so distant future and would really like for it to be available for him.

[sadlebred]

Things are tight here as well. I was hospitalized in November and was out of work for 2 weeks. I thankfully came up with just enough sick time and vacation that was previously scheduled (ie I scheduled it back in October) for those two weeks to cover it and not have to be out of pay. It seems like I keep getting hit with small expenses that are adding up. The latest is hopefully an under $200 car repair. I don't even have that in my savings account right now. Thankfully I can pay it off with the next or maybe next after that paycheck.

I have hospitalization insurance through work that pays you once/year if you get hospitalized. I think it's about $4 and has been a good buy for me the last 2 years! Once my health insurance company gets the bill and pays it, I can file the claim. You have to have the EOB from your health insurance. I figure it will be January.

[chpmnk1015]

Vibes to all who need it!

We are spending money like we have a tree... spent way more on Christmas than intended but, on things for dh and ds that will be amazing for them over a lifetime. All stuff we had the money for but we have been so cautious the 6 months I didn't have a job.
Also need to buy 4 new windows which will be 2400. Ugh

[flygirl]

Dec 7, 2021 22:20:22 GMT -5 melmel48 said:

flygirl ,Thank you So glad you got a bypass!

It is tough on a single income.. I can't just come up with $1,000 for PT plus the Ortho copay... and the $50 copay I paid for Urgent Care when I first fell.

I am hoping I can explain to the PT the financial issues; but if I have to do 12 sessions at $80 a pop, I will. I am thinking of offering to split it with my parents even though the "family savings account" is for stuff like this. I just know they are going to need that $ for my Dad in the not so distant future and would really like for it to be available for him.

I would definitely talk to the PT place and ask if there are things you can do at home for some sessions because of the cost.  Also, be careful about your benefit plan years if you do end up needing to have something more costly done.  I don’t want you to have PT sessions in 2021 and then not have them count toward 2022’s OOP if you need to go for surgery.  That almost happened to me because my surgeon got Covid and then delayed the surgery into mid December.  And if PT just isn’t helping, be sure to share that with your Dr.  

[melmel48]

Dec 8, 2021 13:57:33 GMT -5 flygirl said:

Dec 7, 2021 22:20:22 GMT -5 melmel48 said:

flygirl ,Thank you So glad you got a bypass!

It is tough on a single income.. I can't just come up with $1,000 for PT plus the Ortho copay... and the $50 copay I paid for Urgent Care when I first fell.

I am hoping I can explain to the PT the financial issues; but if I have to do 12 sessions at $80 a pop, I will. I am thinking of offering to split it with my parents even though the "family savings account" is for stuff like this. I just know they are going to need that $ for my Dad in the not so distant future and would really like for it to be available for him.

I would definitely talk to the PT place and ask if there are things you can do at home for some sessions because of the cost.  Also, be careful about your benefit plan years if you do end up needing to have something more costly done.  I don’t want you to have PT sessions in 2021 and then not have them count toward 2022’s OOP if you need to go for surgery.  That almost happened to me because my surgeon got Covid and then delayed the surgery into mid December.  And if PT just isn’t helping, be sure to share that with your Dr.  

The ortho told me I would have "lots of homework" from the PT. My health insurance stinks and my deductible is $5,000! my OOP max is $7,500. Thank you so much for the advice! I get so confused about stuff like this. 

[ellipses84]

My checking account is uncomfortably low and I feel like we are bleeding money from the holidays. I’m owed a couple months worth of consulting checks which should be on the way so that will help. The first half of the year I was making twice as much from consulting so I could get by easier between payments. I’m happy to be working less, but if this is going to continue, I need to make sure I’m consistently making enough each monthly to cover our expenses and more than I would at a full time w-2 job. In theory, I could work more hours at my part time job, but it’s not really worked out that way for the past couple months. Life is so busy and I’m spending more than the estimated hours on consulting stuff. I’m hoping this is just temporary and it will pay off in the long run.

[aprilsails]

I’m sorry for those who are struggling right now.

I just interviewed for a job with a competitor. I am feeling good about putting myself out there and seeing what’s available, but I don’t think the company is a good fit for me at all. They want to have a follow up interview. Should I do it because it is good practice? I don’t know. I will feel bad about it, because I don’t think there is much they could offer or say to make me want the job.

DH thinks I am such a freak for staying with my current firm for 14 years. He has a history of job hopping, but that has a lot to do with his start ups going down the drain.

Every time I talk to anyone else their set up is absolute garbage though. This competitor doesn’t pay overtime or give lieu time (lol we are in consulting engineering, overtime is required!) and also is located way downtown which will be a nightmare commute, at least two days a week. Minimum 1 hour each way. In one day I would do the equivalent of one weeks commute to my current office. If their WFH policies change in the future it would eat up a lot of my time. And having to pay for parking as well.

Pass.

[chpmnk1015]

Dec 8, 2021 15:11:56 GMT -5 aprilsails said:

I’m sorry for those who are struggling right now.

I just interviewed for a job with a competitor. I am feeling good about putting myself out there and seeing what’s available, but I don’t think the company is a good fit for me at all. They want to have a follow up interview. Should I do it because it is good practice? I don’t know. I will feel bad about it, because I don’t think there is much they could offer or say to make me want the job.

DH thinks I am such a freak for staying with my current firm for 14 years. He has a history of job hopping, but that has a lot to do with his start ups going down the drain.

Every time I talk to anyone else their set up is absolute garbage though. This competitor doesn’t pay overtime or give lieu time (lol we are in consulting engineering, overtime is required!) and also is located way downtown which will be a nightmare commute, at least two days a week. Minimum 1 hour each way. In one day I would do the equivalent of one weeks commute to my current office. If their WFH policies change in the future it would eat up a lot of my time. And having to pay for parking as well.

Pass.



--------------

ugh.. I dont know.. maybe take the interview for practice but yea, doesnt sound great.

[Susie]

aprilsails, is there any chance you could leverage an offer to negotiate more pay or a specific benefit from your current employer? That might be a reason to continue in the interview process.

Also, I've been with my current firm since 2006, so I get it. I've come up through the ranks from law clerk during law school to associate to senior associate to non-equity partner to equity partner. I've spent basically my whole career here, and now that I own a piece of it, I'm probably not going anywhere else. It does seem unusual these days, but you're not the only one!

[just]

We paid a deposit on a kitchen remodel, and it's freaking me out - it's so much money. It's a full service quote - everything from permits, to skips, to cabinets, floors, counters, electrics, plumbing ... and we can afford it. But ugh, it's hard to swallow.

[woowoo]

I asked a bit ago about doing a refi to take money out of a new appraised value of our home and found a lender that got this done FAST. We weren't able to get a lower interest rate - that is staying same as we just refied at the beginning of last year, but we did get an appraisal a whopping 48% increase over our appraisal from just 4 years ago. We were shocked and thrilled.

Closing is in 3 weeks - it's a cash out refi as we need money for a pool renovation.

[wildrice]

H and I both have new jobs, and we need to select our new health insurance. Why is it so complicated? My new employer has 3 different plans and his has a bunch of them (or has explained it very poorly, their portal is confusing). None of the options are as good as what we have right now (I work for the state so I have unicorn cheap insurance with great coverage). I am thinking about picking the middle plan on my insurance to cover us both, but it doesn't appear to include out of network coverage and I have mixed feelings about that. I don't like to limit my options.

Actually, I just don't like any of this. Why is health insurance so expensive and complicated in this country?

[ohgillian]

Dec 9, 2021 10:43:13 GMT -5 wildrice said:

H and I both have new jobs, and we need to select our new health insurance. Why is it so complicated? My new employer has 3 different plans and his has a bunch of them (or has explained it very poorly, their portal is confusing). None of the options are as good as what we have right now (I work for the state so I have unicorn cheap insurance with great coverage). I am thinking about picking the middle plan on my insurance to cover us both, but it doesn't appear to include out of network coverage and I have mixed feelings about that. I don't like to limit my options.

Actually, I just don't like any of this. Why is health insurance so expensive and complicated in this country?

FYI, I don't know if this is universally true, but some plans don't let you cover your spouse if they have an option to be covered thru their employer. I completely agree that it's all an expensive complicated mess.

[wildrice]

Dec 9, 2021 10:52:17 GMT -5 ohgillian said:

Dec 9, 2021 10:43:13 GMT -5 wildrice said:

H and I both have new jobs, and we need to select our new health insurance. Why is it so complicated? My new employer has 3 different plans and his has a bunch of them (or has explained it very poorly, their portal is confusing). None of the options are as good as what we have right now (I work for the state so I have unicorn cheap insurance with great coverage). I am thinking about picking the middle plan on my insurance to cover us both, but it doesn't appear to include out of network coverage and I have mixed feelings about that. I don't like to limit my options.

Actually, I just don't like any of this. Why is health insurance so expensive and complicated in this country?

FYI, I don't know if this is universally true, but some plans don't let you cover your spouse if they have an option to be covered thru their employer. I completely agree that it's all an expensive complicated mess.

Ugh I guess I will have to double check on that on Monday when I start! I hope not, his coverage seems to be similarly priced on a monthly basis, but access to care is a lot more expensive in terms of copays and such.

[chpmnk1015]

Dec 9, 2021 11:05:00 GMT -5 wildrice said:

Dec 9, 2021 10:52:17 GMT -5 ohgillian said:

FYI, I don't know if this is universally true, but some plans don't let you cover your spouse if they have an option to be covered thru their employer. I completely agree that it's all an expensive complicated mess.

Ugh I guess I will have to double check on that on Monday when I start! I hope not, his coverage seems to be similarly priced on a monthly basis, but access to care is a lot more expensive in terms of copays and such.

I just got a new job and say for me and kids it is 200 a month, to add dh send it to 1000 a month.. it's absurd!!
Ended up keeping him on govt insurance because it's cheaper