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>On a side note, it's actually pretty wild how easy it is to get in THIS much debt at 20 years old. Like I'm working a part time job and I can't even drink yet, but I can be 40k in debt no problem.

Totally agree. But, that's the way our system is set up, unfortunately.

There is no great answer here, though - you'll have to pay that off before you can get your transcript to transfer or, I assume, register for classes again. Sometimes a school will make an arrangement with you like "If you'll take out $5k extra loans for next semester to pay off $5k from last semester, then we'll let you register", but I can't imagine you'll get $17k extra, so I don't think that will help you.

I think your only option is to work till you've earned enough to pay it off, and then probably to find a cheaper school to continue at.

Sucks, I know, but that's all I know to do. (Used to work in a college, so am familiar with most options...and don't think you have any other choices.)

Maybe the reason you're not getting many replies is simply there's not many good answers. Sometimes, there is no solution, outside of the obvious one (spend a year or two or whatever it takes working to pay it off).

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> Are you able to explain to me what a 1040 is?

The main form you use to file your taxes. H&R block takes the information you put into their software, and fills out a 1040 (among other forms) in order to file your return.

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Ahhh I see. Thanks your your input

A down payment is used to pay off part of the car, and then you finance (get a loan) for the remaining amount.

If you paid the dealership $5k for a car worth $15k, but then get a loan for $15k (which they wouldn’t allow anyway since you have a down payment), you would end up paying $20k (not including interest) for a car only worth $15k.

So it’s better to give them a high down payment so you don’t owe as much on the loan.

The loan has interest too, which means even if you get a loan for $10,000, you will end up paying more than that depending on the interest rate and the length of the loan.

For purposes of "a place to keep your money", there is very little practical difference. Both types of institution provide checking / savings accounts, both insure your deposited money against bank failure (though through different agencies), both tend to offer loans and other financial services, etc.

The main underlying difference is who "owns" the institution. Those owners want a return on what they put into it. A bank is often part of a publicly traded company, so it's owned by the various people (or institutions) who have bought shares in that company. A smaller bank might be privately owned by a few individuals.

But a credit union is owned by its members: everyone who has an account with them. So the "return" those members get can be through things like lower / no account fees, higher savings interest (though still smaller than you'd get through an online HYSA), lower rates on loans, etc.

Since account holders are owners, you tend to get better treatment at a CU. As a bank customer, you're ultimately a commodity and might get treated as such.

One drawback to a credit union can be (though not always) that as a smaller institution it may have things like the latest online technology for things like bill payment. And a credit union may have particular criteria you have to meet in order to join: live in a given city, go to a given school, member of armed services, etc. Both of those are much less of an issue nowadays, but was a quirk with my own CU 10-15 years ago.

TL/DR: you'd likely get as good (and usually better) services for lower cost at a credit union compared to a bank. Just look for "NCUA insured" (a CU's equivalent of FDIC for banks), though I don't imagine uninsured CUs would be that common.

Because most index funds are only "sort of" diversified. Target Date funds are a single fund that you can buy for very high diversification, but they have somewhat higher expenses than index funds and are not customizable.

Right, but I guess the part that confused me was the implication that because I had not hit the yearly maximum for 401k contributions I would not perform a backdoor roth conversion. Wouldn't the interest accrued in the trad 401k be growing and taxable?

1040 is your tax return. Just means tax return. Sorry for the shorthand

(Well it’s the primary document in your tax return anyway)

LPT: periodically review your vehicle titles to make sure they reflect your current reality. I was preparing to sell my oldest car to one of my adult children, and when I got out all three of my vehicle titles I discovered that:

A.) two of them still had liens from lenders that had long since been paid off, and

B.) two of them were still in joint name with my wife, who was deceased.

Took all three titles, both lien releases, and my wife's death certificate to the BMV to apply for clean titles for all three vehicles in my sole name. When it's time to sell the other vehicles I won't have to wait for clean titles.

I can afford the insurance, interlock and monthly check costs for the interlock. I just need the bulk cost of the car without being stuck in a 4 year loan. I just can’t find a place that’s willing to take outside financing and trying to stick me with a 4-5 year loan at 6-7%

I mean, you can with VTWAX.

Otherwise you miss segments of the market depending on what you skip.

You want to pay your down payment first. So in your example, 15k car and add 5k down payment for loan of 10k. In the other example you will still reduce your principal to 10k, however your monthly payment amount will stay the same as a 15k loan, increasing your monthly obligation.

Are you able to explain to me what a 1040 is? I typically have one income and file on H&R Block, so I’m pretty new to taxes.

Edit: I do have another income of $14,053 for the year but I owe because it’s a serving job. I also used to get some money from being a student but not a ton.

The only asset allocation that matters is between stocks and bonds.

You need to factor in the standard deduction of $27700, the fact that tax rates are progressive so the remainder of your taxable income is all in the 10% bracket and the CTC reduces your final taxes by $2000.

The key to building wealth is to spend less than you make. That’s basically it. Simple, but hard.

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According to this link backdoor Roth conversions are taxable?

It’s basically that you’re forced to choose between a non deductible Trad IRA, or a Roth conversion of a non deductible Trad IRA contribution, which assumes you have no other Trad IRA funds.

Same for MBDR: once you’ve maxed the pretax 401k space the only thing left (if your plan even offers) is after tax. And since after tax earnings are pretax, you may as well convert to Roth to make the earnings (eventually) tax free.

JL Collins is that you?

Your new job has nothing to do with your old 401k