> I currently have enough in my savings to cover this entire debt and have a significant amount of money left over.

??? Come on man. Pay off your credit cards.

This is exactly what I follow but no matter what I read I cannot figure out the mega back door….

Having a 90k salary there isn’t a ton to spare after maxing 401k, Roth IRA and HSA though.

Im my experience it depends on the bank. PNC gives me a blank check good for up to the amount I asked and was pre-approved for. With my credit union it was more verbal "hey you're approved for this amount and if you find a vehicle have the dealership contact us".

But every time so far the dealership has been able to meet or beat the rate I found. They REALLY want the $50 or whatever it is kickback that they get from the banks and credit unions they use. Often it's the same ones I was working with.

Sorry to say this to you, but once they get a legal judgement against you they can use that judgement to lien your bank accounts and other real property (eg. house, car, etc). I would suggest working out a payment program with them so they don't start garnishing your wages or lien your bank account (especially at inopportune times like when rent is due), that way you can at least keep excess money in the bank without risk versus trying to live as a cash only nomad with nothing in your name.

As a general warning to others, once creditor gets a judgement against you, it's too late to even file bankruptcy since that debt will stay with you so long as they keep renewing the debt--which they can do indefinitely. Also depending on the laws of your state, you may also owe compound interest on this debt if it's not being regularly paid off.

If you ever get into a situation where you're unable to pay your creditors and they are threatening legal action, SEEK legal help immediately. If you were eligible for bankruptcy, you could have filed bankruptcy before the judgement and depending on that debt, it would have been discharged.

In any case, it doesn't hurt to reach out and try to get an offer in compromise. They may settle for a lower amount than what is owed or will be owed with interest/penalties, but with the judgement they really don't need to. Since you have nothing to lose for asking I would at least try.

Edit: I also should mention that judgement proof generally means that the person who has a judgement against them will not have any assets worth the plaintiff's time to go after. Depending on your age and your future earning potential and whether you want to go through the rest of your life with no bank account or assets in your name and how aggressive the plantiff is in going after you, you may or may not be judgement proof. So in other words, if you make barely any reportable money, live only on physical cash and avoid putting anything in your name (eg. home, cars, etc), then yeah I guess you're judgement proof. If you have any aspirations to move beyond that, then that judgement will hover over your head until it's paid.

Because the cost basis I paid for the shares was significantly below the FMV at the time, the difference in cost was considered as additional income from my employer. Thus, I paid 22% in supplemental income tax at the time of purchase.

Why isn't delaying the engagement an option? Would your partner be open to the idea of a placeholder ring until after you buy the house?

Financing jewelry sounds like a wise idea only when compared to financing a sport bike.

when you get pre-approved the lender will essentially send you a check for what ever you're approved for to initiate the loan.

Did you roll a previous 401K into traditional IRA with Fidelity? If you get to the point where you make too much to contribute to a Roth IRA, you don't want any money in a traditional IRA. Otherwise you have to use the PRO RATA rule to do a backdoor Roth, and you would likely have to pay taxes on that.

>Those two percentages should match.

Not necessarily. Employers have the ability to directly contribute to an employee's 401(k). These contributions would not count against the employee's annual contribution limit. These direct contributions are also not necessarily the matching portion either.

Per the IRS:

>In addition, in a traditional 401(k) plan, employers have the option of making contributions on behalf of all participants, making matching contributions based on employees’ elective deferrals, or both.

(that's "in addition" to the employee's deferral election).

Some hypothetical numbers: Let's say the employee is making $150k/year.Employer's stated direct contribution would be 5% of that ($7,500). That's with the employee doing nothing, and contributing nothing on their own. There is no payroll deduction from the employees paycheck, rather this is money paid directly from the company into the 401k. Nice!

Now let's assume the employee decides to contribute 10% ($15,000).Now the employer match (up to 3%) kicks in, and they add and additional $4,500.

Employer direct and employer matching contributions do not count against the annual employee contribution limit, so total contributions for the year in this case would be $27,000.

Note: for 2023, the employee contribution limit is $22,500. However, the TOTAL contribution limit (including employer direct and match contributions) is actually $66,000.

OP should definitely confirm this with their HR, but based on the info they gave here, this looks like a fairly generous plan. OP should definitely contribute and not leave that additional 3% match on the table.

(edit: math is hard SMH)

Yes on a tablet where the dealer just show you the case where to sign, seller told us the amount of 49k$ for me it was ok so we signed. I come from a country where there are no scam like that from a dealership otherwise it would be in jail since long time, so I trusted them…

I'd be really careful with that. A lot of "0% interest" deals have sneaky clauses where the moment you go over the 12 months you owe all the interest that would have otherwise accrued during that period.

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Work with a broker. They will find the lenders for you. I specifically told my broker that I did not want any lenders who required escrow and they found me a lender that fit my needs.

Did you not read everything you signed before you signed it? I guarantee you had to sign the bill of sale before the purchase was completed. That document would have outlined all costs.

If nothing else you learned a lesson that you cannot EVER sign anything before you've read everything you are agreeing to.

If it's tied up in "accessories" like paint protection and anti-theft, rust-proofing, etc. then you aren't going to get anything back from the dealer on those.

If they've tacked on warranties (anything listed as warranty or service contract, wheel & tire, extended warranty, etc.), those are cancellable usually for a refund. The refund won't be processed back to you directly but it will be tacked on as a one-time payment to the end of the loan thereby reducing the total amount you will pay. Your monthly payment won't change but you will pay the loan off faster as a result of the lower total finance amount.

When you say "real estate" do you mean to live in or invest in?

If to live in that is tough in high COL areas. To invest in that can be easier because it doesn't have to be where you are.

Example: go in with your friends on a vacation condo to rent and visit. Hire a local RE company to rent and manage it.

If you have the money to pay for it, then pay for it.

If you are saving for a home purchase and want something that does not carry risk; you should absolutely be in some 6 month / 1 year T bills. (US Treasury bills)

They are Government insured meaning the government guarantees you your investment back and they are giving 5% interest rates for borrowing your money.

You can use a ladder of bills, or lump into one. Your money will grow safely and that is something I am personally doing during a time when the markets are volatile or more riskier than I am willing to be with money for a home purchase.

The logical steps for me is:

401k match Max HSA Max Roth IRA Max 401k Max Mega Backdoor Roth IRA

Real estate isn't even in the picture.

We discovered the scam in the order buyer (that they gave us on USB and not paper to be sure we don’t read it immediately) they have charged a bunch of fees and total price came up to 58k$

Just crazy they added this while financing it because seller never told is about that and announced a total of 49k$

I just don’t know what to do now

For information it’s ARRIGO Jeep / Dodge of Palm Beach, never go there!!

Real estate can be a great part of a good financial life plan, but it will only make your life better if you actually want to live somewhere that affordable real estate exists, and you are okay with (or even like) taking care of a house or condo and possibly a yard. And also if you are sure enough that you want to live there for at least 5 years, which is about the minimum time you can own real estate that you would come out ahead financially if you decided to sell.

If owning a home or condo doesn't seem like something you'd actually enjoy, at least for now, then it's unlikely to improve your quality of life to buy it anyway because you think you are supposed to.

Just be aware that one of the reasons people who own real estate tend to come out ahead is that a mortgage acts as a kind of "forced savings" because you are building equity over time, and later in life you can pay off your house and lower your expenses, or even sell and downsize to get cash. So if you decide owning real estate doesn't fit your lifestyle, you can still have a great life but just be aware that sufficient retirement savings are even more critical because you need to plan for paying rent throughout your life.

In that case maybe get a spouse to “help” you spend it. 😄😄😄

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It's normal.

Standard deal will look something like $42,000 + $750 dealer fee + 7% sales tax + $750 tag/registration fee = 46,492.50

It would be even higher if they added on any sort of service plan or extended warranty.

No problem! I would still check with your HR to make sure.