What are some of the best ways to save for retirement while making less than 50k a year?
Cook and eat all your meals at home. It costs about twice (when you add in the tip and everything else) to eat “out” in regular restaurants. About 50% more than eating at home to go to a “fast food” place. Use your car to go places you need to go, otherwise leave it in the garage.You can buy useable household goods at places like Goodwill (along with clothing) for a lot less than “new”. People can save money by switching from cable TV to “off the air” by buying a good antenna. Depending upon your internet provider, you could consider one of the “services” where you get your TV though your internet connection.Try to avoid paying “interest” on things you buy by saving up for them whenever possible. Credit card rates on the unpaid balance can add up as the interest percentage is a lot higher than regular loans. Up in the range of 15% or more. Money should be invested in ways that deliver a good return. Check out Vanguard’s index funds. And while stocks zoom up and down, Vanguard’s index bond funds do average about 5% a year (allowing for inflation). Whereas bank CD’s only pay a couple percent at the very best. Savings accounts even less.When it comes to retiring, you should have paid off as much as you can. That way you can live on quite a bit less than you could if you’re still paying off mortgages, car payments, etc.
Could I put $10 million in a bank with 1% interest and live off the $100,000?
All of the answers below miss the point. What OP is asking is: “How much money do I need to have in the “bank” to be able to withdraw $10,000 a month for the rest of my life?Basically the OP believes that $100,000 a year is what it would take to live the lifestyle they would like to. (yeah, dangling whatever)So the most relevant posts are the ones that identify a 4% a year withdrawal as a “rule of thumb” “ballpark” number for withdrawals. Generally, I found that number associated with a 20-year retirement withdrawal plan. But I’m going to use it for the scenario below and let others “refine” the number.So, the OP wants to have $100,000 a year to live their life as they see fit. I think that is a little low so I’m upping it to $120,000. I think that number would support an extravagant single’s lifestyle or a comfortable family of four lifestyle almost anywhere in the United States and probably the rest of the world. Note: I did run across a headline that said that $100,000 a year in San Francisco was considered “low-income” so maybe $120K wouldn’t cut it everywhere.Using rough calculations, there are 25 4% in 100% so 25 * $120,000 = $3,000,000 or three million dollars.So if the OP put $3 million in an investment account (I’m going to follow Clark Howard’s advice of a low-fee ETF of the entire stock market) and the growth in that investment just kept pace with inflation (we could discuss which measure of inflation, but won’t) then the OP could withdraw the current equivalent of $120,000 per year for 25 years and then run out of money in the account.So, we need to add a couple more pieces of information to the mix. How old is the OP? And, how long do they expect to live? For ease of spit-balling let us say 25, and to 100.That means that the OP would need to put three times that amount into the account since it needs to last 3 x 25 years or 75 years. So the deposit needs to be $9 million.BUT does the OP want their partner and two off-spring to continue to receive a payout? If so, then we continue to add and complicate things.So, simple answer. $10 million in an investment account that beats inflation would allow the OP to withdraw $100,000 a year for the rest of a normal lifespan.
Is it better to get paid weekly, bi-weekly, or monthly?
The more pay periods, the more money an employer loses. And technically, the more an employee makes.This is because of “The time value of money.”If you’re an employer, and you pay (worst case scenario) an employee $50,000 a year. But you only pay him once - at the beginning of the year. The future value of the $50,000 you paid at the beginning of the year (at 9% interest) would be $54,500. Essentially, the employer loses that $4,500 in value by borrowing and paying once. FV = $50,000 x (1+9%/1) ^ (1*1)]If you pay monthly, that future value is $54,690 [FV = $50,000 x (1+9%/12) ^ (1*12)]. So, it costs the employer $109.50 MORE dollars per year to pay monthly rather than once a year.If the employer pays bi-weekly, then k=26. It costs the employer $200.50 more to pay bi-weekly than once a year.If the employer pays weekly, then k=52. It costs the employer $204.50 more a year to pay an employee weekly (plus the costs of transferring or mailing the paycheck) instead of once per year.And while the $4.50 difference between paying monthly or bi-weekly isn’t a huge difference, if you’re employing 10,000 employees, it’s $45,000 in total future value of the money you have. An employer could be using that $45,000 to pay down debt instead or investing in his company.
Question about paying a college balance...?
welcome to the World of Consequences to Your Actions there is no cheating going on.... Consequences = Yes... Cheating = No $50 lifetime access fee -- the good news, once you clear your balance with the school, you won't have to pay that again --- so it was not something that cheated you, there simply wasn't a check/balance in place to first verify that you already owed money This policy is a normal policy for schools no, a new school isn't likely to use your high school transcripts... why, because you now have a college academic history --- provable through the fact that you used Fin Aid at that school (so trying to hide it won't work either) doesn't matter if it is 1 semester or 10 ==== you are going to have to get that transcript to get admission to most schools --- some schools will allow conditional enrollment without your transcript, but with the understanding that they won't give you anything (fin aid or transcript from them) without an official sealed transcript from the first school your best option is to borrow the money from your parents.... there is no other loan that will come through in-time... you might arrange with parents to pay them back out of any remaining student loan money once you get disbursed after start of school I don't know if you realize it.... it is possible that your new school will determine you are not eligible for Fin Aid (even with a transcript)... for the same reasons you lost Fin Aid at the old school EDIT TO ADD: FAFSA does have academic requirements & allows schools to set the bar higher 1) GPA of 2.0 or higher (at our school it is 2.5) 2) Completion rate of 67% or higher (at our school it is 75%) 3) Meeting SAP goals (these are Satisfactory Academic Performance goals set by each school in keeping with FAFSA criteria) if you can get admission but can't get FAFSA generated Fin Aid... you might be able to get private student loans & you can always pay out-of-pocket you might discover that you will have to step down to community college for 2-4 semesters... and you still might have to take private student loans or pay out-of-pocket to take classes at community college
Paying more than monthly payment car loan...?
Check the terms of the contract for prepayment penalties, but they usually don't apply to car loans. Paying more than the minimum does save interest because interest is based on the principal. That 26% interest rate is broken down into a daily % rate and is multiplied against the principal. So the higher the principal, the more dollars are calculated for interest. If you pay an extra $21 one month, it reduces the principal by that amount and you save the interest on that amount the next month. The great thing is that the interest is compounded over the life of the loan, so you don't just save the interest the next month, but also every month after that. Pay an extra $21 the next month and you've practically doubled your interest savings. You'll also want to check the terms of the loan or contact the lender about how extra payments are applied. Some of them let you write a check for a higher amount, others require you send a separate check marked "principal only" - you want the extra payments to go toward the principal. There are plenty of loan calculators and amortization tables available for free online. The link below is an amortization table that allows for additional payments, so you can see how paying more than the minimum impacts the balance, interest, and pay-off date. It's not exact, so contact the lender for an exact payoff amount before making the final payment. But it has helped me get excited about making extra payments to loans.
Please help in answering this investment problem?
The common stock of the C.A.L.L. Corporation has been trading in a narrow range around $50 per share for months, and you believe it is going to stay in that range for the next three months. The price of a three-month put option with an exercise price of $50 is $4, and a call with the same expiration date and exercise price sells for $7. • a. What would be a simple options strategy using a put and a call to exploit your conviction about the stock price’s future movement? • b. What is the most money you can make on this position? How far can the stock price move in either direction before you lose money? • c. How can you create a position involving a put, a call, and riskless lending that would have the same payoff structure as the stock at expiration? The stock will pay no dividends in the next three months. What is the net cost of establishing that position now?
Claiming 99 on w4 once or twice a year.?
I have a job which requires an extreme amount of overtime during this time of year. For this paying period alone (2 weeks) I have worked 50 hrs overtime in addition to my 80hrs of regular pay. I'd hate to see so much of my money get taking out for taxes. So for this paying period could I claim 99 so no taxes are taking out just for this one paycheck. (My job allows me to change my w4 anytime I want) Also.. I made a little over $50,000 last year and paid $11, 000 in taxes and only got a income tax return of $1, 500... that doesn't seem right.
How to raise my credit scores (627,629,608)?
A credit score is based on a 12 month activity and usually goes up 5 to 10% per month providing you are paying on time. In about 12 more months of activity, you should be between 660/749 which is a good score. This is the rate you need if you what lower rates in the future. Carrying balances is not a good idea since you pay more in interest each month. If you can not pay the balance, try to pay 1/3rd each month so it will cut down on the interest.