What should I do with my money
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- Joined: Tue Apr 05, 2016 10:52 am
What should I do with my money
I need help in figuring out which route to take in my finances. I strongly want to open up a business of consulting or government consulting services where I am providing services to the government.
I am currently an Admin assistant making 60k a year, I have a home with 110k I still owe
I want to pay off my truck note of 20K as I this will minimized my monthly debt and I am a single parent to two kids.
I have 115K of savings my 401k is about 8k includes company contributions. I got into flipping for a minutes and under budget the project.
But found I didn't have enough time to really invest in learning all I need to know about the business. I am a returning student to receive my degree in Bus. Admin. What are the things I should take care of first or where should I start or how can I get started to own my own staffing company. I am trying to stick around at the current job because I want to take advantage of my pension next year. I will be fully vested.
I thought about investing in stock and bonds but notice it wasn’t a high return. You pretty much have to be invested over the years to see a difference. I am not looking for quick money just some freedom and to make more than what I have for my kids and I. Any advice would be appreciated.
I am currently an Admin assistant making 60k a year, I have a home with 110k I still owe
I want to pay off my truck note of 20K as I this will minimized my monthly debt and I am a single parent to two kids.
I have 115K of savings my 401k is about 8k includes company contributions. I got into flipping for a minutes and under budget the project.
But found I didn't have enough time to really invest in learning all I need to know about the business. I am a returning student to receive my degree in Bus. Admin. What are the things I should take care of first or where should I start or how can I get started to own my own staffing company. I am trying to stick around at the current job because I want to take advantage of my pension next year. I will be fully vested.
I thought about investing in stock and bonds but notice it wasn’t a high return. You pretty much have to be invested over the years to see a difference. I am not looking for quick money just some freedom and to make more than what I have for my kids and I. Any advice would be appreciated.
- flamesabers
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Re: What should I do with my money
I think it would help if you provided more information such as:
*Mortgage rate
*Rate on truck note
*Interest rate on savings account
*What fund(s) is your 401k invested in
*Mortgage rate
*Rate on truck note
*Interest rate on savings account
*What fund(s) is your 401k invested in
Re: What should I do with my money
How old are you? Unless you are eligible for a pension at an unusually young age, you are taking on a lot with getting your degree and starting a new business when you are old enough to retire.
You are right that investing is a long term proposition, but so is creating a successful business.
You are right that investing is a long term proposition, but so is creating a successful business.
One thing that humbles me deeply is to see that human genius has its limits while human stupidity does not. - Alexandre Dumas, fils
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Re: What should I do with my money
The company I work for states that I can take an early retirement next year near my anniversary date 3 years which is 30k I know I will be charged penalties for taking an early out.
I am 43 years old
Mortgage is an 5/1 arm balloon interest is 3.25%
Truck note is 21k with interest rate of 14%
student loan debt - 70k payments are in - school deferred
I recently consolidated to have one company managed my student loan debt fedloans.com
I have 4k invested company will match 25% at the end of the year, I will have about 8k
From information I've gather on here, I am behind in my 401k. I want to open a business once I finish my classes. I have 12 more to go and it has been a long bumpy road. Any advice would help.
I have about 115k in a business savings account. The business is not being utilized, I have a EIN number and business account. What should my next steps be?
I am 43 years old
Mortgage is an 5/1 arm balloon interest is 3.25%
Truck note is 21k with interest rate of 14%
student loan debt - 70k payments are in - school deferred
I recently consolidated to have one company managed my student loan debt fedloans.com
I have 4k invested company will match 25% at the end of the year, I will have about 8k
From information I've gather on here, I am behind in my 401k. I want to open a business once I finish my classes. I have 12 more to go and it has been a long bumpy road. Any advice would help.
I have about 115k in a business savings account. The business is not being utilized, I have a EIN number and business account. What should my next steps be?
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- Joined: Tue Jul 15, 2014 3:26 pm
Re: What should I do with my money
Next step. Refi the truck loan!!! Omg that is insane!
If for some reason you can't get a better rate tHan that you should sale and buy a 1k junker till you can actually afford a vehicle like that.
If for some reason you can't get a better rate tHan that you should sale and buy a 1k junker till you can actually afford a vehicle like that.
Re: What should I do with my money
Pay off all the non-mortgage loans. Get rid if any other consumer debt. Get your degree. Then start a business.
Re: What should I do with my money
It speaks well to your work ethic and determination that you have made so much progress toward your degree. There are volunteer groups of former business people and maybe people on this forum (although I am not one of them) who could critique your business plan for consulting and also give you a good idea of how long it will take to develop a profitable business. Realistically, if living on $60K now is tight then trying to survive on your $30K pension is not something that will work for very long. As a business administration major, I am sure you realize that you need to crunch the numbers to be sure your plan is feasible. You don't have a lot of resources to fall back on, and you have a lot of responsibilities. One major concern is how you will pay for health insurance for your family if you leave your job.
All that said, in your position, I'd push hard to get the degree done as soon as possible and then find a new job that uses your degree. With a little good luck, you could end up with a job that pays 25% to 50% more than your current job does (over the long run). You could work for another 20 years and get a chance to build up a decent retirement portfolio. The upside of working for someone else isn't as high as a successful business but the downside is lower.
I'd use the business savings to pay down your student loan debt or at least avoid accumulating more.
Good luck.
All that said, in your position, I'd push hard to get the degree done as soon as possible and then find a new job that uses your degree. With a little good luck, you could end up with a job that pays 25% to 50% more than your current job does (over the long run). You could work for another 20 years and get a chance to build up a decent retirement portfolio. The upside of working for someone else isn't as high as a successful business but the downside is lower.
I'd use the business savings to pay down your student loan debt or at least avoid accumulating more.
Good luck.
One thing that humbles me deeply is to see that human genius has its limits while human stupidity does not. - Alexandre Dumas, fils
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Re: What should I do with my money
Thank you for your advice Delamer,
I was thinking along the same line. I need to starting paying my student loan, get rid of the truck note and continue to make school my number one priority. I would love to get some advice from former business owners on this board.
I was thinking along the same line. I need to starting paying my student loan, get rid of the truck note and continue to make school my number one priority. I would love to get some advice from former business owners on this board.
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- Posts: 45
- Joined: Tue Apr 05, 2016 10:52 am
Re: What should I do with my money
Jgoneriding,
I already refinanced the truck loan a few months ago at first, it was 15%. Doing so, knocked off 50 dollars per month. That's it!
I already refinanced the truck loan a few months ago at first, it was 15%. Doing so, knocked off 50 dollars per month. That's it!
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- Posts: 45
- Joined: Tue Apr 05, 2016 10:52 am
Re: What should I do with my money
My 401K is invested over five mutual funds with Vanguard from my employer 51.6% is with local stocks; 33% foreign stocks; 8 - 10% are with safer stocks. I increased my contribution 2 more percent. I am contributing 9% now. The company matches at 7%. I have made arrangements to pay off my truck note. At the end of 72 months (the life of the loan) I would have paid 10,617.77 interest.
How should I tackle my student loan debt. It is in deferment now. 70K with 6% interest rate
Another questions is taxes, I have to pay taxes on a real estate sale I made last year. 55k to federal what are my options. I wanted to reinvest in real estate and file a 1031 with IRS but I do have a lot going on with classes and working full time real estate will take a lot of my time along with any business a want to start right now? Any advice would be appreciated.
How should I tackle my student loan debt. It is in deferment now. 70K with 6% interest rate
Another questions is taxes, I have to pay taxes on a real estate sale I made last year. 55k to federal what are my options. I wanted to reinvest in real estate and file a 1031 with IRS but I do have a lot going on with classes and working full time real estate will take a lot of my time along with any business a want to start right now? Any advice would be appreciated.
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- Joined: Thu Jul 16, 2015 9:36 am
Re: What should I do with my money
Don't get rid of the truck loan. Get rid of the truck and buy a servicable car for $6K.
Deferment doesn't mean you're not losing money on the interest. It just means you're not paying the loan off. It's not a good thing to be in debt. Pay the student loan as aggressively as possible.
It's too late to do a 1031 now. That has to be set up before the sale. Will you owe $55K or will you owe cap gains taxes on $55K? There a huge (85%) difference.
How many years are left on the balloon? What will the new interest rate be? What is the worth of the home?
Excluding your home, you currently have a net worth of $0.
Sell the truck.
Pay the IRS.
Put an emergency fund into savings account
Pay the student loan with what you have left over
Refinance to a traditional mortgage if the balloon rate is above 5%
Then you can consider developing your business, finishing school, etc...
Deferment doesn't mean you're not losing money on the interest. It just means you're not paying the loan off. It's not a good thing to be in debt. Pay the student loan as aggressively as possible.
It's too late to do a 1031 now. That has to be set up before the sale. Will you owe $55K or will you owe cap gains taxes on $55K? There a huge (85%) difference.
How many years are left on the balloon? What will the new interest rate be? What is the worth of the home?
Excluding your home, you currently have a net worth of $0.
Sell the truck.
Pay the IRS.
Put an emergency fund into savings account
Pay the student loan with what you have left over
Refinance to a traditional mortgage if the balloon rate is above 5%
Then you can consider developing your business, finishing school, etc...
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- Posts: 45
- Joined: Tue Apr 05, 2016 10:52 am
Re: What should I do with my money
The money I will owe is the capital gains taxes on a 188k sale I made in 2016?
The money I used to buy the property and invested in a rehab is from an inheritance I received in 2013 from my mom. And on top of it all. When my mom was sick and was given the news that she had 6 months to live, I helped her write a "generic will" from the internet instead of hiring a lawyer and when It was time to handle the affairs after she pass away, I went to the courts and was appoint Executor of estate ( I had to go to the court building because some areas of the Will were left out).. I know now I should have handled the affairs differently.
You mentioned in your previous message that I should sell the truck. How can I if I am financing it at 14% and looking to pay the whole thing off? wouldn't I be upside down with it if I get rid of as you mentioned? or pay off the finance company and sell it? for more than what I owe on it?
Mortgage:
5/1 Adjustable Arm My mortgage is at 2.375 can't go over 1% which is referring to the maximum increase or decrease on the amount on the change every five years.
The money I used to buy the property and invested in a rehab is from an inheritance I received in 2013 from my mom. And on top of it all. When my mom was sick and was given the news that she had 6 months to live, I helped her write a "generic will" from the internet instead of hiring a lawyer and when It was time to handle the affairs after she pass away, I went to the courts and was appoint Executor of estate ( I had to go to the court building because some areas of the Will were left out).. I know now I should have handled the affairs differently.
You mentioned in your previous message that I should sell the truck. How can I if I am financing it at 14% and looking to pay the whole thing off? wouldn't I be upside down with it if I get rid of as you mentioned? or pay off the finance company and sell it? for more than what I owe on it?
Mortgage:
5/1 Adjustable Arm My mortgage is at 2.375 can't go over 1% which is referring to the maximum increase or decrease on the amount on the change every five years.
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- Joined: Thu Jul 16, 2015 9:36 am
Re: What should I do with my money
So, the sale was for 188K gross or that was your profit? You only pay taxes on the profit of a sale. $55K seems high on a $188K profit, though not impossible for a short-term flip.
Your mortgage rate seems great and you shouldn't refinance.
As far as your truck....
Pay off the loan. Then sell it and buy something more reasonably priced.
For example...
You have $105K in cash and a 20K loan
Pay 20K to the loan: now you have $85K in cash
Sell the truck for 18K: now you have $103K in cash.
Buy a car for $6K: now you have $97K in cash.
End result: a car. no loan. $97K in cash
Forget the upside down part. That doesn't matter. You're upside down regardless of whether you sell the truck or not.
Your mortgage rate seems great and you shouldn't refinance.
As far as your truck....
Pay off the loan. Then sell it and buy something more reasonably priced.
For example...
You have $105K in cash and a 20K loan
Pay 20K to the loan: now you have $85K in cash
Sell the truck for 18K: now you have $103K in cash.
Buy a car for $6K: now you have $97K in cash.
End result: a car. no loan. $97K in cash
Forget the upside down part. That doesn't matter. You're upside down regardless of whether you sell the truck or not.
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Re: What should I do with my money
I understand. That's makes sense. I spoke with truck note people and I paid my truck off. Now, I am working filing with IRS Which I have an extension and start paying my student loans down.
The house I flipped was 115K
rehab 40k (I invest way too much money)
Sold it for 188k
The house I flipped was 115K
rehab 40k (I invest way too much money)
Sold it for 188k
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- Joined: Thu Jul 16, 2015 9:36 am
Re: What should I do with my money
So, on the house, you made 33K. You will likely owe only $5K in taxes or so (depends on your tax bracket, but as a mom with 2 dependents and $60K in wages, the ballpark is $5K).
Remember an extension to file is *not* an extension to pay taxes due. With an additional liability of only $5K, you might be ok, but you should file and pay ASAP.
Remember an extension to file is *not* an extension to pay taxes due. With an additional liability of only $5K, you might be ok, but you should file and pay ASAP.
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Re: What should I do with my money
Music to my ears! Thank you. I've been avoiding this for a long time.