paysite

Should I be freaking out about 0.25% management fees for my Roth IRA?

Hi all,

I’ve been contributing to my Roth IRA via Betterment for about 8 years, and just realized this month they have a .25% annual active management fee. After considering the compound effect, I realized this amounts to several hundred thousand dollars of loss over the course of my lifetime. I’ve also learned passive index funds often outperform active management on average. Two questions:

1) Would you recommend leaving Betterment for a passive fund? (Leaning towards yes…)

2) *(most important)* What company/tool do you recommend I switch to if so?

Thank you!

Target Date Fund Delima

Hello,

If a person for lacks of proper knowledge in investing had their money in a target date fund in an IRA account and now they regret it and want to take more control of the investing, would it be better to sell off the target date funds at a loss (a large sum of $) and reinvest into the specific allocation that they want or should the target date fund be kept and just asset allocate against the target date fund to reach the desired portfolio distribution.

How do credit card work?

This is probably a simple question for most of you here, but i have no idea. Im 17 and all my life Ive been running from becoming older. Im trying to learn about the things I dont know but will need.

Credit cards are one of them. How do they work? What is interest? What does it mean when someone says “pay back the balance” ? do you have to add up all the money you used on your card that month and pay it all back? What if you earned the money and its not a loan? What the fuck is credit score?

are there any classes i can take that will help me because i feel so stupid for not knowing the most basic stuff

T Bill Ladder Questions

I’m building a t bill ladder on Fidelity to hold cash savings. Does anyone have insight into why Fidelity is blocking auto roll for these? Also, is there a way to compound my interest every auto roll, or do I always have to just buy in units of $1000? Thanks much.

Won’t be able to pay Property Tax on time. Do I need to do anything?

Hi, 2nd year living in the house. Didn’t escrow. Ran into some emergencies and had to wipe my savings.. Property tax is due on the 16th and I’m unable to fully pay my property tax. I can’t really borrow the money from friends and family. Recently got a new job, but the paycheck doesn’t hit til lthe 30th. Can you use a credit card? Any advice helps.

Should I save a nest egg, pay off debt, or both?

What would you do if you were in my position?

Financial situation is as follows:

Day job total compensation: $200K USD + 12.5% bonus annual ($225K)
Side hustle income: $50-75K
401K balance: $35K
401K contributions: $7K per year + employer match $7K

So anywhere between $250-300K annual income.

$0 savings at the moment after splurging on some big renovations.

I own my home and mortgage is $3,200/mo. Equity is about $400K with 28 yrs left on the loan (2.75% interest rate, not moving ever).

Own a duplex out of state which has about $150K equity and cash flows about $500/mo though there have been lots of repairs so it’s not been a big money maker these last 2 years. Once this property is paid – 20 yrs or so, I will use those funds to buy ETFs or other lower risk investments.

Plan is to not sell the homes and gift them to my kid.

Kid will go to school soon, so that side hustle money will be accounted for (at least $12K per year).

Wife does not work and she has an allowance of $800/mo that comes off my pay check.

I have $25K of nagging credit card debt which I hope to take care of in the next 2 years. Even with this income plus having a family and expensive taste it has proven to be difficult to pay off. I have gotten my (and my wife’s) spending habits under control over the past 6mo (hence the allowance).

My financial advisor has me set to retire by 65 and with my assets and continued contributions it looks pretty good. But I wonder if it could be better or come sooner.

What would you do next if you were me?

Pay off the debt and save up a nest egg again? Should I take a low interest loan to pay the credit card off?

I feel like I know the answer already, but wanted to get peoples opinions really fast on car maintenance vs buying something…

I currently own a 2014 BMW 328i with 80,000 miles on it that’s worth a little over $10k to CarMax. The tires need to be replaced and and I have this annoying little issues “passenger system restraint malfunction” it could be a fuse or could be something more serious, not sure yet. Either way, I’m debating if I should sell the car and get something new that is under warrant and use the $10k to go towards my first year or so of payments on the new vehicle.

or….

should I replace the tires and just drive the BMW until it croaks?

I worry that BMW’s have a reputation for being monkey sinks, even though this one so far has been not a huge issue. However, I worry about larger problems as the miles get higher.

The crappy thing is auto interest rates have skyrocketed in the last 6 months 🙁

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What’s the play here?

Thanks!

Background check for a job reveals someone else may be using my SSN

I (M25, DC) already have a freeze on my experian account, and to my knowledge there’s been no foul play re: taxes or credit lines. From what it looks like, they are in the Atlanta area and have a foreign-sounding name. I’ve never lived in GA, and am not sure what else they’ve been up to, but the background check seems to have passed anyway, even though this persons name has now been listed as an “alias”. The job in question that commissioned this has not contacted me yet since it was only finished today.

What are my options here? The SSA website basically said to just freeze my credit reporting accounts and watch for suspicious activity. Is there anything else I really CAN do? Try and find them myself, give them a stern talking-to? I would hate for this to ruin the offer since it’s not my fault and I’m coming off a few months of unemployment.

Confused about Roth vs Traditional IRA

Good day,

I am 26 years old and would like to start building up a retirement fund. From the little information I know, Roth IRA taxes you on the money you invest in it now, and when you take it out there will be no taxes, unlike the traditional.

So my question is, if I see myself making much more money later down the line and possibly being in a higher tax bracket, would it make more sense to invest in a Roth IRA? I’ve seen many posts and discussions claiming that it wouldn’t matter etc etc,.. instead of me coming out with more knowledge I am left very confused.

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Thank you so much for reading, and please write as much as you can. I want as much info as possible! Thank you in advance.