I never understood why people leased cars. It's like being in an HOA. Someone gets to give you guidelines on what to do with something you're paying for!

Oh well.

If you're paranoid about being upside down on your Toyota after 3 years, you're gonna be in a worrrrrrld of pain when you get that BMW or Audi past 30k miles lol.

It sounds like you've made up your mind. Choose a car to lease for 3 years, give it back to the dealer, get that beamer, instant buyer's remorse, sell it back at a fraction you bought it for, and then buy a used Corolla.

Nothing anyone says here will change your mind.

You tie up 20K to make $300? Is that a thing that people do that’s advisable?

But will it be $15,000 upside down? That lease has a guaranteed loss of 16k. I doubt the car loses that much value in 3 years.

Hyundais and Kias are looking like they will be uninsurable due to their high incidence of theft.

I mean… you could just buy the Corolla and resell it in 3 years, and the amount you would be upside down on the loan would probably be less than $16,000-payments made. This is a bad idea.

This is a bad personal finance decision. Leasing is the most expensive way to get a car. You would be better off buying a lightly used car, then selling it (if you are foolish enough to upgrade in three years just for the sake of upgrading, which is another poor personal finance decision). You can get a 2020 Toyota for pretty much KBB from Hertz or Enterprise car sales, no haggling.

Appreciate the response.will do some digging

You don't need to convert the entire account, however, you can't convert only after-tax dollars. When you convert Traditional IRA to Roth IRA, it's pro-rata - which means conversions are proportional to the pre vs post tax dollars. If 10% of your tIRA is post-tax and 90% is pre-tax, any conversion you do will be taxable on 90% of the conversion.

What about pulling your child out of daycare and looking for an evening/weekend job? You could potentially share a car then too and put that 3500 toward debt .

Entire account needs to be converted or just the investments within traditional can be moved ? Is there a brokerage limitation for this conversion ?

Because everyone is telling you not to lease. FINANCE THE CAR.

You sound like a broken record and this seems like a troll post. Buy the car and drive it until it breaks. Avoid getting another in 3 years with lifestyle creep. If you’re relying on her dad to help her with the car then you guys aren’t ready to dump a Toyota for something more expensive.

this is what I'm wondering too. give us a break down of the funds and allocations you chose. I've seen some scary choices in 401ks before.

You may have needed to buy a car, you didn’t need to buy a car with a $600 payment.

Sell it if you can and buy a much, much cheaper car.

Fidelity FRDXX money market fund current paying 4.35%. If you need to withdraw the money you can at anytime. The catch is it’s not FDIC insured, but this is Fidelity, nothing to worry about here.

Check out I bonds: https://www.treasurydirect.gov/savings-bonds/i-bonds/

First step is to stem the bleeding. You going out and buying a new car requiring a $600 payment says that you're not doing that. Lifestyle needs to drop, quite drastically, before you're able to make significant principle repayments.

Other than that, you could try to call up the creditors and ask them to reduce your interest rates. Then make minimum payments on all but the highest interest rate, which you throw every spare dollar you can at. Also, get rid of the car and buy a junker (or take the bus), and call the negative equity lost your stupid-tax.

What do you have it invested in inside the 401k?

thank you! ill have to login to my empower (my previous employer) and check to see what it was.

i came across employee pre tax and employee roth 401k when trying to change my contribution amount to 10 percent. for some reason, i got a little confused on what pre tax is, but then thats another word for traditional lol. it seems employee roth 401k is the way to go.

​

but thanks for your suggestion, ill focus more on my IRA and then eventually work more on my 401k up to the limit (or as high as i can)

Backdoor Roth conversion. Contribute $6500 to your traditional IRA. Once the funds clear, convert to your Roth IRA and that’s it. No income limitations and you bypass the restrictions of contributing to your Roth directly

I also wanted to add that their Business Checking is iOS only for the moment.

first calm down. You can’t find a way to deal with it without sanity.

second, your financial management is not quite right… not sure why you put money into 401k given your cc rate is 20%. Can your 401k brings you any higher than 20%?

possible solutions, get a 0% intro apr cc And transfer balance to that card. Try your best to pay off the 0% card however you can! Selling car or get extra job or 401k withdrawl or borrow from friends. Key point, lower your rate!!!

For your previous 401k: only roll it into your Roth IRA if it was Roth 401k money. Otherwise, rolling into your current employer 401k is a fine choice.

For your current contributions: the standard advice is to go in this order:

1. 401k up to the match
2. Roth IRA up to the limit
3. 401k up to the limit

Think of it like a snowball rolling down a hill... The longer the hill the more snow it'll pick up.

Compare 5 years to the 30 (No idea your age) it should be growing, barely a blip friend.

Good luck!

If you have something like a Fidelity brokerage account, their Government MMF provides daily liquidity.