The data you'd need to figure out is the interest rate on your anticipated loans.

> only 20% match rate up to 6% of salary

Worded a bit confusingly.

But anyways, at minimum, this likely means an equivalent of a ROI of at least 20%.

Unless your loan interest is near that, I wouldn't pass up on getting at least the employer match.

Oh, it's already dropped 40%, and it all very conveniently happened during a trading blackout window :)

What HYSAs are paying that much? I only see mid 3's

Ohhh, I thought you were holding on to an old copy. I think I read something, somewhere, where you could download the last version but I didn't pay too close attention. A little google elbow grease should turn up something though, a lot of people miss that program. (and a quick search just now turned up some promising results)

Cash. HELOC rates can be like 8 or 9%... or even higher.

Thank you so much for this detailed response. I was looking into my transaction history and it looks like this definitely is the case. I had no idea they were just giving me basically free money for my retirement account.

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I would absolutely be paying cash right now if you can. As you mentioned, with the interest rates being as high as they are, it makes no sense to take a loan if you don’t have to. Also consider that HELOC’s are variable interest and could potentially go higher. The fact that you have enough in savings to cover it (assuming you’re not eliminating an emergency fund) shows you’re able to responsibly afford it…so do the responsible thing. I know it’s hard depleting savings, but that’s why you save to begin with.

I found this in case it helps you @rave-unicorn-votive: https://alternativeto.net/software/microsoft-money/

Throw it in a HYSA (paying >4.25% right now) or into the market in a sp500 or whole market fund. Instant diversification. It's stupid to hold it all in a checking account when just an HYSA would be paying >$8k/yr on it.

Side note, diversify your stock portfolio unless you really believe in your company. I worked for an incredible rocketship company and one day it dropped 40%. Sucked. Took three years to make it back to even and then I dropped it in a whole market fund.

Thank you. Do you know if it’s still available out there someplace? I no longer have it. 😔 I guess I can search. Let me know if you have any suggestions.

The safe thing to do would pay cash and only do it if you still have 6 months to a year of living expenses reserved after you pay for the renovation. If you don't mind exposing yourself to the additional risk a HELOC and then refi might be the best option. Just look at the possibilities here with the economy unstable, jobs in some industries shrinking, and housing market unstable.

Regarding the "government cut in half", thing, I'll tell you a small story that I think illustrates it. I went down to rural West Virginia on a church mission trip in my youth. Growing up, the idea that a town doesn't provide drinking water or electricity was something unthinkable. The country my family comes from was under the Iron Curtain so for a while things were grim, but not "no more rural water system" bad. As it turned out, this little community just an hour from a National Park, was a place where every resident was on well water by necessity. It also was a food desert, and the only place that seemed to have consistent electricity was the local church. These same people would say to us that the government could only make their lives worse. You ask three people you get five different answers.

The US isn't some social democratic paradise, but I'd like to think the people I serve don't resent my existence, you know? I have faith in this country, and I want to do my part to give back what it gave my family when we basically had nothing. I can't pick up a rifle, so I help make sure those who did get taken care of in some small way.

I haven't used it in years but every so often consider going back because I've never found anything that compares. Though I'm on a Mac so my options are a bit more limited.

If it still works for you, I'd honestly keep on keepin' on.

You said your sibling has enough savings to cover the rent? If so, they should just offer to pay for the entire year upfront with those savings. Alternatively, if I was in your shoes I would consider co-signing under the condition the sibling gives me 1 year worth of rent, and I’d keep it in an HYSA and use it to start making payments if they stop. Once the sibling moves out you can give them back the money, and if they don’t trust you with their money then you shouldn’t trust them with your signature as a guarantor.

All depends on your time horizon for using the money and your risk tolerance. If you are going to buy a place in 6 months and use the 230k for a down payment, put it in a HYSA and call it done. If you aren't going to buy for a while go ahead and either get a CD going (very low risk) or invest the money in some broad market low cost ETFs (higher risk), or what the heck, yeet it into some crypto currency and find out (insane risk).

I wouldn't consider taking out of 401k.

You need $2500. You have $1k in an emergency fund. This is an emergency and the entire reason you have an E-fund. Use it. Now you need $1500. The extra $700 towards the CC debt now goes there too. Pay only the minimum now. So you are down to needing $800 for this repair. Now is where the other members need to help chip in. This is their home too, they need to contribute something. Being retired is not an excuse. They need to have budgeted for emergencies just like you. You shouldn't have to cover their lack of planning.

That said, if they still don't contribute, you pick up whatever extra work you can. Everyone needs to cut back and work together to get that last $800. As an additional bit of help, many trades don't ask for $100% of the money up front (and shouldn't). So you can probably work it out to pay part now and then the rest once the job finishes. That does buy some time.

I've been out of school for a while, but I thought tuition generally had to paid up front?

Its shitty advice, but if you can't afford the payments, don't pay. You've already dropped out and if its only a semester of credits, you could always start over later at another school. There is nothing they can reposses. Bankruptcy is an option if they try to garnish your wages.

Just a heads up, I know what you mean by 'financially independent' but most people on this subreddit use that term to mean that you have so much money you don't have to work a job, just own businesses/get interest from investments. It might be confusing to not understand that so that's why I'm letting you know.

The obvious answer to your question would be owning a house for yourself. If you've done that, then I don't think you want to be a landlord unless you really want to Be A Landlord and deal with all the headache of that, and the responsibility to your tenants, it's a part time job at least.

In reality, the next step is what we call the 'boring middle'. It's the part where you are basically doing everything you can at your income level and you just need to work on your career and your life and not screw up for about 40 years, then retire comfortably. If your goal is to retire early (and have a fixed income while all your friends still work) or join the ownership class and be a boss of businesses and a landlord of tenants (you probably dont make enough to do this and it's quite a lot of work and responsibility, it isn't 'personal finance') then you're all good and you and your friends can keep each other accountable.

My line of thinking is since interest isn’t growing right now it’s best to pay it down as much as possible right now before payments restart so it’s less in the long run.

2.64% rising .25% every year until it hits market.

2.64%, rising .25% every year until it hits market value.

You got played with warranties, but chances are you can cancel them

>So you need to take a reasonable salary.

For S corp and C corp yes.

For sole prop and disregarded entity, doesn't matter.

I was not aware of that. But Ameritrade is going to require some kind of legal document to handle it. It's possible there are no contingent beneficiaries and the will leaves everything to the person who was originally the beneficiary, and then the beneficiary will have to disclaim part of the estate. Seems a convoluted process for no real reason.

OP needs to get the facts about taxes on this account, which he seems to think must be paid in one year.

If the terms of the financing actually say “0% interest,” then you will NOT get hit with retroactive interest because the rate being charged for the first 12 months is literally 0%. The 0% figure is a federally regulated, and lenders are very careful with it. If the terms don’t actually say “0%” but instead use language like “pay no interest for 12 months,” then you’re playing with fire. Owe so much as $1 at the end of the “interest-free” period and you’ll owe all the accrued interest.

If you must do it, get a credit card with a 15-month 0% promotion, cash back rewards and a sign-up bonus. You’ll get some money back and time to pay it off.