Search found 107 matches

by MGTRP0309
Thu Jan 09, 2025 7:10 pm
Forum: Personal Investments
Topic: Combine traditional IRA with 401K?
Replies: 2
Views: 365

Combine traditional IRA with 401K?

I am a single female - 60 years old and don't have enough saved for retirment. I have a tradtional IRA with only 38K due to dipping into it to pay off medical debt.I regret doing this of course. I also have an employer based 401K with 81K. I'm wondering if it would be beneficial to combine the two into one account to help boost the compounding effect.

I would be interested in hearing your thoughts or strategies so that I can try to make up what I took from my IRA and continue to build and grow my retirment during my remaining years of employment. I currently contribute 10% to the 401K and only occasional deposits to the IRA when I can. I am still working full time but my income doesn't allow me to max out either of these accounts ...
by MGTRP0309
Sun Dec 03, 2017 11:50 am
Forum: Personal Investments
Topic: How much should I contribute to 410(k) vs IRA?
Replies: 22
Views: 2002

Re: How much should I contribute to 410(k) vs IRA?

retiredjg wrote: Sun Dec 03, 2017 11:42 am
marcyg321 wrote: Sun Dec 03, 2017 11:11 am Luckily my expenses are low. I should be able to contribute a total of at least $2500 per month to 401k/ IRA/ emergency fund/ other savings accts.
I'm wondering if this is a typo because saving $30k a year makes your original question (which to use?) a moot point - you can fill both.
Actually no, not a typo. I knew I could potentially max both, I just didn't know if it was a good idea to max the 401k due to any possible hidden fees but no one has addressed that part of my original question.
by MGTRP0309
Sun Dec 03, 2017 11:15 am
Forum: Personal Investments
Topic: How much should I contribute to 410(k) vs IRA?
Replies: 22
Views: 2002

Re: How much should I contribute to 410(k) vs IRA?

Something you need to do to help you figure this out is to learn if you can or cannot deduct your contributions to IRA. Do you already know the answer?

It appears that up till this point, your contributions to IRA could have all been deducted. With your new salary, that may change. Just to get into the ball park, will your new salary put you over or under $63k in 2018? If over, but a little or a lot? (I'm assuming you are single.)
I still am not sure to the answer to this question. Yes, I am single and my salary should increase somewhere from 70K - 78K per year. (my paychecks vary based on my type of work).
by MGTRP0309
Sun Dec 03, 2017 11:11 am
Forum: Personal Investments
Topic: How much should I contribute to 410(k) vs IRA?
Replies: 22
Views: 2002

Re: How much should I contribute to 410(k) vs IRA?

Can you estimate your tax bracket after your change to full time employment in January? Here are calculators you can use to determine the federal tax bracket. First determine your "taxable income". money chimp, "Tax Calculator" . Then use your "taxable income" to estimate your "tax bracket". moneychimp, "Federal Tax Brackets" .

Do you expect to be in a higher tax bracket than that tax bracket for most of your career?

Will you be eligible for a significant pension?

Does your 401k plan permit Roth contributions?

How much money do you currently have in an emergency fund?

About how many months of basic living expenses would that cover?

About how much (in dollars) do you think you might be able to contribute to investing and emergency ...
by MGTRP0309
Sun Dec 03, 2017 11:03 am
Forum: Personal Investments
Topic: How much should I contribute to 410(k) vs IRA?
Replies: 22
Views: 2002

Re: How much should I contribute to 410(k) vs IRA?


I do not think its a good idea to convert your traditional IRA to a Roth IRA. Since you are in the 25% tax bracket, keep the traditional IRA.

Here is a general account funding priority that usually works well for many people (when there is no high interest debt or HSA use):
1) Contribute to the work-based plans (401k, 403b, 457, TSP, etc.) enough to get the full employer match (the match is like free money, your best possible investment);
2) Contribute the maximum to an IRA, traditional or Roth, depending on eligibility and personal circumstances;
3) Contribute the remainder of the maximum employee contribution to the work-based accounts; and
4) Contribute to a taxable investing account.
Please see the wiki article "Prioritizing ...
by MGTRP0309
Sun Dec 03, 2017 10:53 am
Forum: Personal Investments
Topic: How much should I contribute to 410(k) vs IRA?
Replies: 22
Views: 2002

Re: How much should I contribute to 410(k) vs IRA?


You did not say if your traditional IRA contribution is tax-deductible or not. If it is not tax deductible, then you should contribute the maximum to your 401(k) before contributing anything to your tIRA.

If your tiRA is NOT tax deductible, then you should contribute the maximum to your 401(k) before contributing anything to your Roth IRA.

This is contrary to the advice of the previous responder. You need tax savings now. In retirement, it is unlikely that your income from 401(k) withdrawals will be high enough to be taxed, so a Roth IRA does not do you much good unless you have made the maximum contribution to your 401(k) each year.


To be honest I am not sure. I file my taxes as Single and my income will be somewhere in the 70s ...
by MGTRP0309
Sun Dec 03, 2017 10:47 am
Forum: Personal Investments
Topic: How much should I contribute to 410(k) vs IRA?
Replies: 22
Views: 2002

Re: How much should I contribute to 410(k) vs IRA?

Once you're getting the maximum available employer match, then invest up to the max each year in a Roth IRA . Then if you have any money to spare for investing, put more in the tax-deferred 401(k).

I have a traditional IRA, not a Roth. Are you suggesting to open a Roth IRA?


Edited to add: One other point to consider is that you have until the tax filing deadline in April 2018 to contribute to an IRA for 2017. So it would be better to contribute the max for 2017 before you commit any funding to a Roth during 2018. This will give you more tax advantages space in your Roth if you happen to have some extra income to spare from any unexpected windfall or raise in 2018.

My increase in income will not be happening until 2018 so I will not ...
by MGTRP0309
Sun Dec 03, 2017 8:11 am
Forum: Personal Investments
Topic: How much should I contribute to 410(k) vs IRA?
Replies: 22
Views: 2002

Re: How much should I contribute to 410(k) vs IRA?


What is your marginal income tax rate?

Would your IRA contribution be tax deductible?

How much is in your Roth IRA or do you not have one?

What kind of employer match is made to your 401(k) contribution?

Does your employer allow you to retire at/after 55 and make 401(k) withdrawals without penalty before age 59.5?


1. I am in the 25% tax bracket. I am not sure how to figure the marginal tax rate.
2. I do not have a Roth IRA (but have wondered if I should do the conversion)
3. My employer matches using a discretionary method. Here is the wording from last year:
"The matching contribution will be approx 70% of your contribution up to a maximum of 4% of your eligible wages".
4. I do not know if I am able to retire/ withdraw funds ...
by MGTRP0309
Sun Dec 03, 2017 7:43 am
Forum: Personal Investments
Topic: How much should I contribute to 410(k) vs IRA?
Replies: 22
Views: 2002

How much should I contribute to 410(k) vs IRA?

Hello all,

I received your help a couple of years ago setting up my 401(k) and IRA. I have been contributing up to the match with my employer at 4% but have been contributing $0 to the IRA. I will have an increase in my income by January due to transitioning to full-time with my employer. So I am now in a position where I will be able to contribute more money to both accounts. I would like to max them out if possible. However, I'm uncertain as to what percentage of my income should go to each, or which one to max out first if I can't max both. I'm concerned about hidden fees and have read that you should only contribute up to the match in some cases.

Can you shed some light?

My 401(k) is invested 100% on the Vanguard Balanced Index Inv ...
by MGTRP0309
Sun Sep 24, 2017 2:44 pm
Forum: Personal Finance (Not Investing)
Topic: Should I move?
Replies: 16
Views: 1939

Re: Should I move?

delamer wrote: Sun Sep 24, 2017 12:22 pm Is the $90K owed in addition to a mortgage in the condo?

Based on what you've said you basically have a zero or even possibly negative net worth. Is that correct, or do you have retiremsnt savings that you have not mentioned?

Assuming you are at least in your mid-40's, I'd focus on the option that would allow you to pay down debt and build up savings.
I'm 53. The $90K is not an addition. I have a Personal Credit Line that is the $90K and the student loans of $26K. That is all of my debt. And I do have a small amount in retirement.
by MGTRP0309
Sun Sep 24, 2017 2:42 pm
Forum: Personal Finance (Not Investing)
Topic: Should I move?
Replies: 16
Views: 1939

Re: Should I move?


A few more thoughts after re-reading your original post:

You say that your current condo is valued at $125,000. Do you have a mortgage, or is that free and clear? You will unlikely find a condo in a safe area of Orlando for that price. Again, it will be important to know where your work is to determine a reasonable commute.

I do not have a mortgage. I traded that in for a Personal Credit Line which has a $90K balance. I agree that I probably will not find a condo at a similar price - esp since my current condo was a bit of a fixer upper when I bought it.

You say that your daughter could stay in your condo while you try out Orlando, but that she cannot afford to cover all expenses. Is she helping now with the expenses? Is there a way ...
by MGTRP0309
Sun Sep 24, 2017 2:35 pm
Forum: Personal Finance (Not Investing)
Topic: Should I move?
Replies: 16
Views: 1939

Re: Should I move?


Have you spent much time in Orlando ?

My husband and I have owned a second home in the Orlando area for 13 years. We have spent between 6 weeks and 3 months per year there every year during this time.

The area is insanely crowded, traffic is horrible, most jobs are low-wage and in the tourist industry, and there is no end to the continued building of new tourist attractions to attract even more crowds. The crime rate has increased annually. Weather is hot and humid almost year round. The cost of living is not low. Our main residence is in Denmark which is considered one of the most expensive OECD countries for cost of living, yet we find groceries, for example, to be similar if not more expensive in Orlando.

No, I haven't spent any ...
by MGTRP0309
Sun Sep 24, 2017 2:23 pm
Forum: Personal Finance (Not Investing)
Topic: Should I move?
Replies: 16
Views: 1939

Re: Should I move?



Orlando sounds like more fun for a young, single person.


The OP has a grown up daughter so moving now would be a lot different than if she was in her 20's.


What glaringly obvious things am I missing here.


1) What would a similar condo cost in Orlando?

If you move and things go well and you like it there and you want to settle down there your numbers might not work out any better if you have to buy a much more expensive condo there and your income is not higher there because of the higher cost of living.

2) Will the company pay the relocation costs? That can add up quickly even if you do it yourself with a rental truck.

3) I agree with the other post about looking at what other job options there are where she is at now ...
by MGTRP0309
Sun Sep 24, 2017 2:13 pm
Forum: Personal Finance (Not Investing)
Topic: Should I move?
Replies: 16
Views: 1939

Re: Should I move?

randomguy wrote: Sun Sep 24, 2017 10:50 am
TxAg wrote: Sun Sep 24, 2017 10:27 am Orlando sounds like more fun for a young, single person.
I am a bit scared to ask how young can be and have full grown daughter. 32?:)

It is very tough for anyone to tell you what to do. Financially is sounds like a sound choices but moving away from friends and family isn't something to take lightly. If the only reason to move was money, I would make sure there aren't better employment options locally before making that choice. If it is more time for a change, a big move can be just what you need.
I am 53 y/o and my daughter just turned 33. WAtty did his homework.

There is the aspect of my needing change. i.e. fresh start in the personal relations area as well.. so not for money reasons only.
by MGTRP0309
Sun Sep 24, 2017 2:11 pm
Forum: Personal Finance (Not Investing)
Topic: Should I move?
Replies: 16
Views: 1939

Re: Should I move?


Have you looked for a job that pays better in your current life cation? Why is moving to Orlando your only choice?

Do you know the cost of living in Orlando and would you really be better off financially if you moved there?


I work as a Physical Therapist Assistant in the home health care field. The company I work for pays significantly higher than any other home health company. It also pays better than in any other setting (hospitals, skilled nursing facilities, out-patient clinics, etc.) The reason for the location of Orlando is because my current company has a home health care division down there and there are 3 full time positions open. Whereas here, I am in a poor location as far as them being able to create a full time schedule ...
by MGTRP0309
Sun Sep 24, 2017 10:12 am
Forum: Personal Finance (Not Investing)
Topic: Should I move?
Replies: 16
Views: 1939

Should I move?

Okay here goes..

In a nut shell - I'm trying to decide whether or not to move to the Orlando FL area. I currently live in NE OH.

Some of the reasons why I'm considering a move:
The company I work for cut ties earlier this year with a company that provided 1/3 of my paycheck. That's a big cut. I was using that extra money to pay off student loans and my line of credit. The Orlando branch of the company I work for has three full time openings for my position that would include benefits.

I could do it. I'm single, no young children, no serious relationships other than with family.

The Pros and Cons

Pros of moving :
Paying off student loans completely - I currently owe around $26K
Pay off the $90K Personal Credit Line at a variable rate ...
by MGTRP0309
Wed Feb 15, 2017 7:49 am
Forum: Personal Investments
Topic: What to do with daughter's $100
Replies: 73
Views: 7561

Re: What to do with daughter's $100

It sounds to me like she is just afraid of the unknown. She appears to be content where she's at because it's comfortable and doesn't challenge her. But at some point in life every successful person has to jump. I like the idea of moving to Japan for a year and teaching that someone else mentioned. I don't think pushing her to get a better paying job she'll hate is the answer. It sounds like Japanese is what she loves, and there's no reason she can't make a successful career out of it. She needs to get out of her comfort zone and take a risk. Safety nets can often be more of a hindrance than a help. When there's nothing to fall back on she'll have to either sink or swim. Right now she has no incentive to try.

Drew you are absolutely 100 ...
by MGTRP0309
Wed Feb 15, 2017 7:45 am
Forum: Personal Investments
Topic: What to do with daughter's $100
Replies: 73
Views: 7561

Re: What to do with daughter's $100



It's encouraging that she is not asking you for money. I'm a little bit younger than your daughter, and while I hustled to stay self-sufficient after college (at the cost of leaving my undergrad field far behind), there are many of our cohort who never launched their careers. I know lots of folks with degrees in Japanese language who are waiting tables or working retail.

This actually makes me feel somewhat relieved. Of course I know there are tons of college grads that are not working in their field.. and okay that's fine to me as long as you eventually figure something out.



3 suggestions:

1) Check local rents for apartment-shares and sublets. If you are offering below market rent to your daughter, let her know that over the ...
by MGTRP0309
Wed Feb 15, 2017 7:31 am
Forum: Personal Investments
Topic: What to do with daughter's $100
Replies: 73
Views: 7561

Re: What to do with daughter's $100


But I'm not okay that she is not going out into the world and exploring, dating, etc.. or making something of herself.. I often ask her (when she is tired and frustrated with work) if she plans to retire there. That seems to get her going.

The problem is that if she never saves anything she will never be able to retire. Doesn't she have any kind of checking or savings account? How does she pay her bills?

It's good that she was able to scrape together $100 (unless she got it using a credit card cash advance) but if it was a one time thing to get her mother off of her back then it really doesn't accomplish anything. At last resort you might have to increase her rent by $25/week and put $5/week in a savings account and $20/week in a Roth ...
by MGTRP0309
Wed Feb 15, 2017 7:24 am
Forum: Personal Investments
Topic: What to do with daughter's $100
Replies: 73
Views: 7561

Re: What to do with daughter's $100


...As for the rent I charge her? I charge about half of what she would be charged if she were on her own in our town. I'm not covering any of her costs at all. She pays for everything including her own food.

... I don’t cover any of her expenses now...

... I believe motivation to find a better paying job is what she needs.

You ARE covering her cost/expenses, you are covering HALF of the rent she would be charged if she were on her own in your town. Motivate her by charging her real world rent. Does she split the utilities 50/50 with you?

Also, you are are lying to yourself when you say she doesn't have time to find a 2nd job. She is working 35 hours per week, you mentioned somewhere that you would encourage her to date, so I am ...
by MGTRP0309
Tue Feb 14, 2017 7:02 am
Forum: Personal Investments
Topic: What to do with daughter's $100
Replies: 73
Views: 7561

Re: What to do with daughter's $100

I wish you and your D the best. I'm curious whether she's considering doing anything to find a job that may have better wages and opportunities for advancement so that she can move ahead in a field that she may enjoy? If her current wages for 35 or so hours/week don't allow her enough to pay market rent plus her living expenses, to say nothing of being able to save any money, it would definitely be good for her to be considering other options.

Congrats on being so close to becoming debt-free in 2017!

Unfortunately no, she's not doing anything about her situation. She is too content. There is something else underlying here as to why she doesn't want to get out and be on her own, date, etc. I will have to talk with her and try to find out ...
by MGTRP0309
Mon Feb 13, 2017 8:06 pm
Forum: Personal Investments
Topic: What to do with daughter's $100
Replies: 73
Views: 7561

Re: What to do with daughter's $100

– I do charge her rent – which she pays faithfully and on time each month. She pays all of her own bills and helps around the house.. even cooks and buys her own groceries. We are pretty independent from each other. I don’t have any other children. I believe motivation to find a better paying job is what she needs.

Based on the experiences of many folks I know with adult children of that age, you could be a LOT worse off. These are good qualities!

You are describing a good candidate for some fine man that wants to get married!

That is so kind of you to say! Thank you!

My aunt, not too long ago, was talking about her son who is now homeless somewhere in the world. A man with many degrees, a high IQ, and untreated bipolar disorder ...
by MGTRP0309
Mon Feb 13, 2017 7:58 pm
Forum: Personal Investments
Topic: What to do with daughter's $100
Replies: 73
Views: 7561

Re: What to do with daughter's $100

dm200 wrote:Is this just $100 ... OR $100 a month indefinitely?

If it is $100 per month, then have her (eventually) open a traditional IRA at a credit union. She will need to have a basic member savings of something (typically $5 - $25). Put the whole $100 in the regular savings. Then, with the next $100, put this into an IRA savings account. Each month, ad d the $100 to the IRA savings. When the IRA savings reaches an amount where she can purchase an IRA certificate (CD), purchase one. Just keep doing this...
Unfortunately, this is JUST $100 for now. But I will hang on to this idea for when she is ready and has a larger income. Thank you!
by MGTRP0309
Mon Feb 13, 2017 7:56 pm
Forum: Personal Investments
Topic: What to do with daughter's $100
Replies: 73
Views: 7561

Re: What to do with daughter's $100

corysold wrote:I don't think the issue is that she lives at home at 32, but that she seems to be still supported living at home at 32.

Living at home is fine if everyone is comfortable with it, the child has a full time job, contributes to household expenses, helps around the house, etc. If that isn't happening, which it sounds is like what is happening, than that is a problem that needs to be addressed.
She absolutely contributes financially and in every way. She is not dependent on me other than I provide an affordable rent for her.
by MGTRP0309
Mon Feb 13, 2017 7:54 pm
Forum: Personal Investments
Topic: What to do with daughter's $100
Replies: 73
Views: 7561

Re: What to do with daughter's $100

grok87 wrote:
Epsilon Delta wrote:If you decide to invest the $100 MyRA is pretty close to ideal for this type of small savings.
Good observation!

The OP may also be interested in this kiplinger article on great funds for under $500.

Apparently charles schwab has a target date fund with a $100 minimum.

http://www.kiplinger.com/article/invest ... -less.html
Thank you for this! I will look into it!
by MGTRP0309
Mon Feb 13, 2017 7:52 pm
Forum: Personal Investments
Topic: What to do with daughter's $100
Replies: 73
Views: 7561

Re: What to do with daughter's $100

Hello All

It's hard to judge of course with so little information to go on (and I don't mean necessarily that you should divulge any more), but here's my 2 cents: I wouldn't put much energy into thinking about what to do with that money. I think you are attacking the wrong problem. Her income must exceed her spending and only from this can any savings strategy manifest. Barring any special circumstances of course (only you know the situation), I'm afraid this is something only your daughter can be responsible for. "Invest my 100$" is just a strategy for putting the responsibility onto you. Best wishes and good luck.

It was my idea to invest her money.. not hers. I know I have enabling tendencies.. but that's not a financial issue that ...
by MGTRP0309
Mon Feb 13, 2017 7:48 pm
Forum: Personal Investments
Topic: What to do with daughter's $100
Replies: 73
Views: 7561

Re: What to do with daughter's $100

Liveware Problem wrote:
marcyg321 wrote:Hello All

It's hard to judge of course with so little information to go on (and I don't mean necessarily that you should divulge any more), but here's my 2 cents: I wouldn't put much energy into thinking about what to do with that money. I think you are attacking the wrong problem. Her income must exceed her spending and only from this can any savings strategy manifest. Barring any special circumstances of course (only you know the situation), I'm afraid this is something only your daughter can be responsible for. "Invest my 100$" is just a strategy for putting the responsibility onto you. Best wishes and good luck.
by MGTRP0309
Mon Feb 13, 2017 7:47 pm
Forum: Personal Investments
Topic: What to do with daughter's $100
Replies: 73
Views: 7561

Re: What to do with daughter's $100

mhalley wrote:I would invest $69 of it in a course at Dave Ramsey's Financial Peace University. As for actually investing small sums, I think Schwab has the best brokerage for that. But I agree she should be saving for first and last and security deposit.
Thank you .. great suggestion! I like Dave Ramsey's idea of saving $1000 for an emergency fund first and foremost. And I have heard that Schwab's online checking is excellent. Thanks!
by MGTRP0309
Mon Feb 13, 2017 7:46 pm
Forum: Personal Investments
Topic: What to do with daughter's $100
Replies: 73
Views: 7561

Re: What to do with daughter's $100

Epsilon Delta wrote:If you decide to invest the $100 MyRA is pretty close to ideal for this type of small savings.
Thank you! I will look into it.
by MGTRP0309
Mon Feb 13, 2017 7:39 pm
Forum: Personal Investments
Topic: What to do with daughter's $100
Replies: 73
Views: 7561

Re: What to do with daughter's $100

i would use part of the $100 to buy her a Bogleheads Guide and open an FDIC savings account with the rest. Make her feel she paid for the book and perhaps you will achieve an "endowment effect" -- something you bought is more valuable than something given to you.

Then keep talking and listening to each other. We BH are great talkers but often forget to mention listening, which is harder.

Actually if she is or becomes a contributing member of the family, pays rent to you, saves, and buys her own stuff, I do not see a failure to launch. COL is ridiculous and trying to move without much money can be dangerous. Maybe she just needs another part time job to make either living alone or living on equal terms at home possible.

Thank you for ...
by MGTRP0309
Mon Feb 13, 2017 7:35 pm
Forum: Personal Investments
Topic: What to do with daughter's $100
Replies: 73
Views: 7561

Re: What to do with daughter's $100

Alexa9 wrote:I would open an Ally Savings + Checking Account to simply answer your question without giving career/parent advice. I would also get her The Boglehead's Guide to Investing and have her open a Vanguard Roth IRA with Target Date 2050 as the fund when she saves up $1k.
THANK YOU! This is the advice I was looking for. :)
by MGTRP0309
Mon Feb 13, 2017 7:34 pm
Forum: Personal Investments
Topic: What to do with daughter's $100
Replies: 73
Views: 7561

Re: What to do with daughter's $100

"My 32 year old daughter lives with me."

OP...please stop and re read that quote/what you said.

Please do not take this the wrong way but you're an enabler . You enable her to act the way she does...you enable her to blow money the way she does.

If I were in your shoes...I would help her find a place to live. You can even go above and beyond and pay for the first 2 or 3 months of rent. IN that amount of time she should be able to save up enough to start supporting herself. Its called tough love. She needs a reality check and a wake up call. If YOU choose not to change the way things are going...you're going to wake up one day and your daughter will be 45 and still living with you.

Like others also said...theres some depression going ...
by MGTRP0309
Mon Feb 13, 2017 7:29 pm
Forum: Personal Investments
Topic: What to do with daughter's $100
Replies: 73
Views: 7561

Re: What to do with daughter's $100

Grt2bOutdoors wrote:Want to motivate her to save? If you have the means, make her an offer she can not refuse - for every $100 she gives you to invest, you'll match her $25 or $10 or what ever amount you see fit, just to get her going....
Great idea.. Thanks! :)
by MGTRP0309
Mon Feb 13, 2017 7:28 pm
Forum: Personal Investments
Topic: What to do with daughter's $100
Replies: 73
Views: 7561

Re: What to do with daughter's $100

aristotelian wrote:Honestly $100 is not enough to make a difference to her financial picture. It is only going to help if she can get into the habit of saving $100 every month...and then $1000 every month.

My two cents is that the best thing you can do for her is use the money for a therapist. Living at home with the lack of motivation to change anything is not healthy.

You feeling like it is on your shoulders to invest this precious $100 is not going to help the situation. It will only teach her a lesson if she does it for herself.
Well said. I agree.
by MGTRP0309
Mon Feb 13, 2017 7:27 pm
Forum: Personal Investments
Topic: What to do with daughter's $100
Replies: 73
Views: 7561

Re: What to do with daughter's $100

The responses you've gotten so far have focused on what's good for your daughter's future. I've just looked at your previous posts, and I'm concerned about your future. You're over 50, you have a mortgage to pay off and considerable student loan debt.

To what degree are you subsidizing your daughter? Is she paying you market-rate rent? Is she contributing her share of household expenses (utilities, groceries, etc.)? What about health insurance? To the extent that you are covering her costs, you are doing so at the expense of paying down your mortgage/loans and/or adding to your 401K. At your age, you simply cannot afford to be doing this.

I hope that you will give this serious thought, and then sit down with your daughter and make your ...
by MGTRP0309
Mon Feb 13, 2017 7:20 pm
Forum: Personal Investments
Topic: What to do with daughter's $100
Replies: 73
Views: 7561

Re: What to do with daughter's $100

Hi MGTRP0309,

I just wanted to comment that you did not specifically ask how to get your daughter to move out, only on how to get her to start saving. While the consensus in modern America is that anyone living with their parent(s) after the age of 30 is an example of 'Failure to launch', other cultures have different standards. My wife's family and half of mine hold to the eastern European tradition that children (especially daughters) should live with their parent(s) until they get married no matter how long it takes. My wife lived with her widowed mother until she married me at the age of 30 and we have our 25 year old daughter still living with us now. Does your daughter contribute to the household finances and do her share of the ...
by MGTRP0309
Mon Feb 13, 2017 7:14 pm
Forum: Personal Investments
Topic: What to do with daughter's $100
Replies: 73
Views: 7561

Re: What to do with daughter's $100

As a 33 year old, I would say you need to use that $100 to provide 1 last tool to teach her how to be an adult and then let her sink or swim. You are not helping her by continuing to treat her (and letting her act) like a teenager, unless you are are planning to be her crutch for the rest of her life. By you forcing her to finally agree "to let me do whatever I want with her $100" you are continue to manage her life for her and she is refusing to take responsibility for her own life decisions. If you did invest that money and it lost 50%, she would blame your decision on that loss not herself. It is her money and her life, let her live/spend it as she chooses and stop cleaning up the consequences of those choices for her. You can lead a ...
by MGTRP0309
Mon Feb 13, 2017 7:08 pm
Forum: Personal Investments
Topic: What to do with daughter's $100
Replies: 73
Views: 7561

Re: What to do with daughter's $100

TareNeko wrote:My wife has a degree in Japanese. She lived in Japan for 3 years and thought English. It also helped her to be fluent in Japanese. The money is decent. A lot of Americans do this (usually only for a year). Your daughter can make money, enjoy sushi, and improve her Japanese. Then, she can comeback here and become a translator.
I have often thought of her doing exactly that.. going there to teach for a year - just like you said. She claims it will cost her thousands of dollars to fly over there.. It would be nice if she had a mentor to help assist her with making something like this happen. I've encouraged her to call her college to find out if they can recommend anyone. She does like sushi.. :)
by MGTRP0309
Mon Feb 13, 2017 7:04 pm
Forum: Personal Investments
Topic: What to do with daughter's $100
Replies: 73
Views: 7561

Re: What to do with daughter's $100

Not to interfere w your family (as I know nothing about it other than what you wrote) but you mentioned a part time job..


This is anecdotal, but when I was living with my father (at the age of 24), he didn't charge me rent, but he said the cost of living there was that I needed to be working at least 40 hours a week. Long story short, I ended up with three part-time jobs, and was able to move out after about a year. Perhaps this would work with your daughter.

As someone about your daughter's age, I wonder if there is something bigger going on. Depression, social anxiety. She seems smart and financially responsible (lack of debt), so...maybe therapy is needed.

If it really is just that she isn't "motivated" -- tough. Not being motivated ...
by MGTRP0309
Mon Feb 13, 2017 6:59 pm
Forum: Personal Investments
Topic: What to do with daughter's $100
Replies: 73
Views: 7561

Re: What to do with daughter's $100

JW-Retired wrote:
marcyg321 wrote: Thanks in advance for your thoughts and suggestions.
My thought is the longer she lives with you the less chance she will ever be a functioning adult. Find some way to kick her out. Would it be practical for you to move to a small 1-bedroom apartment that has no room for her?
JW
I agree that the longer she lives with me, the harder it will be to move on. And I agree that I need to come up with a reason for her to WANT to move on. I live in a condo and not interested in sizing down.. but it’s not a bad idea. She did move out several years ago and lived with my sister in the next town over. That was fine but not much different than our current situation.
Thanks for your thoughts!
by MGTRP0309
Mon Feb 13, 2017 6:57 pm
Forum: Personal Investments
Topic: What to do with daughter's $100
Replies: 73
Views: 7561

Re: What to do with daughter's $100

Gropes & Ray wrote:Consider therapy; maybe for both of you. At 32 she should be moving forward with life. If she has a mental block, she needs counseling to get past it.
I have thought of therapy. Not so sure she would agree or show up though. Heck the idea might be a good motivator for her though!
by MGTRP0309
Mon Feb 13, 2017 6:56 pm
Forum: Personal Investments
Topic: What to do with daughter's $100
Replies: 73
Views: 7561

Re: What to do with daughter's $100

My wife and I talk about this a lot as my in-laws let my sister in-law live at home still (she's in her late 40's). They are just enabling her behavior and preventing her from seeing the reality of a world without their support (both financially and with catering to her at home in making her dinner, doing her laundry, etc.) It's caused a lot of animosity between the family and my wife and her sister do not talk anymore (going over there for dinner and holiday's is a blast!) Not sure if you have other children as well but if so this could happen to them as well.

I suggest some tough love. Maybe start charging her rent to live at home. (You could then put that rent aside so that when she gets sick of paying you rent you can give it to her ...
by MGTRP0309
Mon Feb 13, 2017 6:55 pm
Forum: Personal Investments
Topic: What to do with daughter's $100
Replies: 73
Views: 7561

Re: What to do with daughter's $100

Sounds like an earnings problem more than a savings problem.

Sorry to say, this, but she needs to get a new career plan or move out on her own. You are the only one that can make her.

At the least, I would make it very uncomfortable for her to live with you, like make her turn over all her income and you manage it for her. Control her spending and control her saving.

It sounds crazy, but she's a college grad with no full time job since graduating and no plans to get one. She needs motivation and right now she has none.

The longer she waits, the harder it will be for her ever to get hired full time.

JT

I agree with you. It’s an earning problem. Her fear is leaving her easy job that isn’t challenging her and stepping into a new ...
by MGTRP0309
Mon Feb 13, 2017 6:54 pm
Forum: Personal Investments
Topic: What to do with daughter's $100
Replies: 73
Views: 7561

Re: What to do with daughter's $100

So bottom line.. she needs motivation and a better paying job.

Think it is time to "kick her out" and beyond that, to not cover any of her living costs.

One way to create motivation for a better paying job is to create the need for a better paying job. When she is out on her own providing for herself she will also gain self-confidence and self-esteem.

:beer

I'd save that $100 towards a security deposit towards her 1st apartment.

As much as I want to see her get out into the world and explore, I don’t have it in me to kick her out. She’s not prepared financially or otherwise. I don’t cover any of her expenses now. She is responsible. Doesn’t borrow money from me or have a lot of debt. She has lived alone before – when she was in ...
by MGTRP0309
Mon Feb 13, 2017 6:52 pm
Forum: Personal Investments
Topic: What to do with daughter's $100
Replies: 73
Views: 7561

Re: What to do with daughter's $100

Not to interfere w your family (as I know nothing about it other than what you wrote) but you mentioned a part time job..

OK. She isnt full time/career ready at this point. Get that. But why only part time hours?

I would take that 100 dollars, tell her that she had better start finding at least 50 hours of work per week (could be two part time jobs) and that all of the income from the incremental hours gets saved along w the original 100. Or she moves out. You can begin teaching her ab personal finance as she invests a new couple hundred dollars every 10 days or so.

Maybe the extra work and the success at growing her own finances will finally act as a catalyst to start a career.

The status quo sounds bad,for her.

Thank you for ...
by MGTRP0309
Mon Feb 13, 2017 6:50 pm
Forum: Personal Investments
Topic: What to do with daughter's $100
Replies: 73
Views: 7561

Re: What to do with daughter's $100

This is purely a personal suggestion, but here is what I recently started doing with my wife. She makes good money but is terrible at saving. So in order to encourage her to save, I ask her to save a certain amount a month into a savings account with not-so-terrible rates (Ally), then at the end of the month, I will give her an additional 2% monthly interest on the balance of the fund. That comes out to 25% interest (including 1% from Ally) annually and it really shows on her monthly statement, and gets her excited about saving. In addition, any discretionary spending she does has to come from that account, so if she wants to spend 2k on a bag, she understands that the bag not only cost 2k, but also the interest that it could help compound ...
by MGTRP0309
Mon Feb 13, 2017 9:37 am
Forum: Personal Investments
Topic: What to do with daughter's $100
Replies: 73
Views: 7561

Re: What to do with daughter's $100

I will reply to the those of you that I didn't reply to yet.. as I am off to work now..

Thanks so much for all of your suggestions.. this is all very helpful!


M
by MGTRP0309
Mon Feb 13, 2017 8:38 am
Forum: Personal Investments
Topic: What to do with daughter's $100
Replies: 73
Views: 7561

Re: What to do with daughter's $100

Thank you for your suggestions so far..

As for whether she is planning to move out and or go back to school, no.. she has a degree from OSU. She studied the Japanese language and likes to translate however, she got that degree over 5 years ago and has done nothing with it other than practice it on her own for leisure. She is not the motivated type and states she doesn't have enough experience to get hired. She has not been to Japan to get immersed in the culture. She is a bit too content living here with me. She has admitted she would like to move on but seems to have a lot of fear of change. So, no, there are no plans to move out or make any changes despite the many talks.

As for her financial literacy and spending habits. Well, she ...
by MGTRP0309
Mon Feb 13, 2017 7:55 am
Forum: Personal Investments
Topic: What to do with daughter's $100
Replies: 73
Views: 7561

What to do with daughter's $100

Hello All

My 32 year old daughter lives with me. I have practically begged her to start saving for her future (it seems like for decades..) but there is always a reason or an "I know I should, but .." Well, finally she agreed to let me do whatever I want with her $100. I've had it sitting here on my desk for weeks now, unsure of the best way to get her started. She has no savings or retirement plans available from her part time job. What would be the best way to help her to begin investing for her future.

Open a Roth IRA? A high yield online money market account? Something else?

Thanks in advance for your thoughts and suggestions.

Marcy
by MGTRP0309
Mon Aug 08, 2016 6:59 am
Forum: Personal Finance (Not Investing)
Topic: Sell Condo to pay off Student Loans?
Replies: 117
Views: 9966

Re: Sell Condo to pay off Student Loans?

Thanks. I will be very excited to see the student loan balance go down. I honestly did not think there was any way I was ever going to get rid of it let alone in two years. Getting determined helps. In hindsight I was doing other things with my money that didn't put slashing SL debt as a priority.. and now it is. :)