Thank you. So I won’t look into diversify my fund. However, now I have another dilemma I am really not sure if I’m gonna end up being there two years, so I wonder if there is a point in still continuing to contribute.

Darn. That is a little disappointing to hear. I wonder what I should do now, keep contributing or don’t contribute. I don’t see myself staying there for two years. Though I could be wrong.

Even 17% is crazy. Who wants to end up paying 40% more for a car because of debt slavery? Yet people look at 17% or 10% interest and say... no problem. The same people who made fun of math nerds in school, usually.

I'm pretty sure options trading is explicitly disallowed. Its also not an area where I have a ton of expertise as i prefer the slow and steady diversified approach (the other 75% of my NW is in diversified funds across personal and retirement accounts)

Thanks for the perspective! Yeah I think your perspective and the other ones I'm seeing commented so far align with my thoughts of just get out and diversify. For what its worth, the entire market has been down so Im havent lost all that much relative to what it wouldve been if I were already diversified, but nobody likes leaving money on the table. It also probably ends up saving me a trip to CPA to figure out the most optimal way to sell my RSUs

Your account should show that information.

I disagree with selling the car. You need reliable transportation for work and safe transportation for your child.

3k buys very little these days, especially if you aren't car savvy enough to fix things yourself.

Prioritize your debts: living expenses>transportation>everything else until you get back to full time employment.

If you can't pay the credit cards, you can't pay them. Not enough debt to file BK, unless you actually get sued.

FYI: 401k accounts are exempt from debtors, even in a bankruptcy. Don't touch the 401k.

I also have RSUs at my current company.

I highly recommend looking at the individual lots of stock and picking and choosing which lots to sell. Also, learn about wash sales and how they will affect you. Candor has a decent write-up about wash sales and tax implications that may prevent you from tax loss harvesting (https://candor.co/articles/money-matters/wash-sales-what-they-are-and-how-to-avoid-them). Of note, if you sell your stock to take the loss and then have RSUs vest within the window, it may prevent you from taking the loss.

My tactic is only to dispose of lots that are positive (sometimes barely positive). I've been fortunate to be able to do so while continuing to vest additional stock.

Thanks for your engagement here, btw!!

>no loss if nothing happens, profit in the hedge account if market crashes. If such an investment vehicle existed, why wouldn't I put all my money into it?

Not quite. If the hedge is perfectly placed, I wouldn't make any profit or loss OVERALL.

>if the lender you are working with would do a rate lock extension.

I did consider this, but this wouldn't be an ideal hedge. I would win only if rates go significantly up. Because of the upfront cost for locking today's rate for 6 months, I would be betting the rate goes up. I feel I can do better than that. I personally feel things may remain the same then in which case I'm essentially losing money for locking the rates.

I certainly aim to stay in the house long term and that's the main reason why I bought in this crazy market.

>"We match 125% of contributions up to 6% of an employee's annual gross pay."

For every $1.00 you contribute, employer will put in $1.25. They'll match you up to your 6% contribution, but won't give any more match if you do 7% or higher. 125% of 6% is 7.5% so the employer match is effectively 7.5% as long as you do 6%.

You should do at least the 6%, but ideally higher up to 10 or 15% if you can afford it

>100% vesting in company matching contributions after two years of service.

Employer contributions will be put in regularly and you can see them in your account. But it's not actually yours if you leave the company too soon. If you leave before 2 years, you get none of the employer match. If you stay at least 2 years, all the employer match is yours when you leave.

You still want to contribute, (1) because you still need to save for retirement regardless of match, (2) because you don't want to end up staying 2 years and look back on all the free money you turned down

> You're always 100 percent vest in your contributions

Just means what you contribute is always yours, there's no vesting period for your own money.

>For associates hired after January 1, 2023, you must complete 1 year of service before you become eligible in the company matching contributions

Company won't give any employer match until you've worked there 1 year. But you lucked out, you were hired before then, so you got in before they made the match worse (by requiring a 1 year anniversary). Any new hires miss out on 1 years's worth of match (basically a 6% pay cut as far as I'm concerned)

>Rollover contributions, Roth rollover contributions, and Roth conversion contributions are not matched.

Just means if you rollover an old employer plan into this one, employer doesn't match any of it. They only match your current contributions.

I opened an account back in 2021 when they were offering a $250 bonus. Got the bonus with no fuss. There interest rates tend to be on par with other online banks (eg. Ally, Discover, etc).

As others have said, they've now combined logins so your login for your credit card can also access your high yield savings, though at the time I signed up they were separate distinct logins.

They also started offering a free checking account last year if you want to consolidate your banking. Their checking is unique in that it offers 1% interest and earns 1 point (worth $.01) for every $2 spent. Can either be redeemed for cashback or if you're into the Amex eco-system, you could transfer those points to other Amex cards for higher redemption value.

If you're also looking for business checking, they offer one with a $300 sign up bonus and their checking account is actually quite good as it offers 1.3% interest and they also offer a flat rate 2.25% fee if you use their invoicing service, which is nice if you have a need for it. Their business debit also earns the same 1 point for $2 spend.

Also I think their ACH times are really fast--like 1 business day. Or at least their business checking is.

yeah, that's a good match.

your 7% is always your money.

They'll match 125% of 6% = 7.5% of their money goes to your 401k, but it's not really your until you're vested (12/19/2024).

A target date fund is a great place for your money, assuming it has a low expense ratio. Schwab Index target date fund is probably fine. It's a single fund that contains all the diversity you need -- you don't need to invest in other funds.

Not yet, Nobody seems to recommend me other cars I could look into for a lease. I just need a low payment on reliable new or not overpriced used car... if cars already depreciate, they will even more now when the market crashes and everything goes down in price.

This answer helps clear up the concern about being under water on the financing in 3 years. Do you really think the market is going to tank so greatly that in 3 years a used Corolla similar to the one you have will be worth half what they currently are?

Listen, I’ve leased many a car (generally only where it was an insane deal and the buyout price was good) but what people are telling you is sound. Just finance the car and sell/trade in when you’re ready. Financing also gives you the flexibility to do it 2 or 4 years as well.

a car is a liability, I just want to see the best option to get a new transport for a short period of time.

Always withdraw RSUs when they vest. For now take the loss and diversify your portfolio, having 120K in one stock is probably not a great idea. Also, you can take the loss on your taxes. CPA can help you with your taxes but a financial planner can put it in something that will get a better return.

You are correct- if you leave before 2 years you will lose all the money your employer put into the 401K as a match.

A new car which also happens to be a “Toyota” is not going to cause any problems for 3 years. If you bought a bmw or jeep brand that’s known to break down as soon as you drive off of the dealership, that’s another story. The better choice would be actually buying it. In the end, you will own an asset that can be used for any kind of improvement in life. Not just a better car. In three years, your priorities might change as well. Maybe, it will become a house downpayment? Who knows?

Also, if a leased car breaks down, you will still go through not having the car for a bit and all that trouble too. So, that is not going to disappear magically. There will be some kind of discomfort either way.

Terrible financial decision but it seems you’ve already made up your mind.

I've been collecting RSUs for awhile, and I sold some in late 2019, in 2020, and in 2021.

The brokerage account my employer gave me for this purpose allows me to chose lots to sell. I'm making up dates...but I could sell two lots simultaneously... one lot that was granted in 2016 and vested in 2019, and another lot that was granted in 2020 and vested in 2021.

Lets say at the price I sell, the 2016/9 lot is up 545.32, and the 2020/1 lot is down 543.16.545.32 - 543.16 means a net gain of 2.16 -- I'd have to pay taxes on $2.16.

So... I could figure out a price where I can sell those two lots simulataneously and have no net gain or net loss. I didn't bother.

Or... maybe I have a third lot...and at the price where I sell, the 2016/9 lot is up 752.38, the 2020/1 lot is down 238.38, and the third 2017/20 lot is down 520.00.752.38 + (-238.38) + (-520) = 752 - 748.38 = a gain of 3.62.

Me, I chose to just sell without worrying about tax loss harvesting (as what I described is called)

If you have a big net capital loss, that loss can be carried forward. You can only "use" $3000 of the carried-forward loss in any given calendar (tax) year.

So you want upside in both scenarios, which isn't reasonable: no loss if nothing happens, profit in the hedge account if market crashes. If such an investment vehicle existed, why wouldn't I put all my money into it?

If you are concerned about mortgage rate increases, you could see if the lender you are working with would do a rate lock extension. This will cost money to do, but it lets you lock a rate in now and pay for the rate lock to extend beyond the normal 30 or 45 lock. This will likely get pricey to carry it for 6 months.

If you want to protect the house value going down, not much to do here. Good news though, live in the house long enough and you will not be upside down on it.

Also have AMEX HYSA. Easy to use, no complaints.

My guess would be 12k at the lowest. The lease company is betting it will be worth at least 14k. Can you buy a 3 year old corolla now for less than that? What I would be thinking about if I were you is what this payment and the guaranteed loss of 16k does to your budget over 3 years? You mention paying cash for a car later. Do you make enough so you will still pile up cash in parallel to paying this lease? Maybe this is the only path for you to have a decent car. But if you do this, at least map out your future budget and see where this fits, if it fits

Well, even if you owe more than what you can sell it for, it's just a factor to consider; not like you go to jail for it. If comment OP's math is to be trusted, by leasing it, you'd be betting that 30k mile 3yr old corollas are worth less than 10k in 3yrs. And that's just you breaking even on going either way. For leasing to actually be financially better, you're betting it's going to be worth meaningfully lower than 10k since you're also giving up all upside (i.e, the chance that it's worth more than you owe on it in which case it cost you even less to use it for 3yrs not to mention the lack of lease restrictions). And say it is actually artificially depressed b/c the market tanked, just keep paying the loan off and you'll have the car, it's yours! You can sell it when the market recovers (cars are usually not this volatile so i'm just humoring your beliefs here) and buy the fancy car. If you just completely don't care about optimizing for a few thousand $s, I don't see this as a personalfinance question.

haha yeah, I figured once everyone started lecturing me this wasn't the best forum. Just trying to get some quick info