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Very well thought out response, thank you.

If OP is going to be giving away $12,700,000 in his lifetime, he shouldn't be getting financial advice from reddit

I know everyone here loves to love credit unions, and that's great! They offer a lot of benefits if you are strictly looking at the return on savings accounts, getting a car loan from them, etc.

I like Chase because sometimes the best way to handle things is to go to the branch in person, and I've always had a great experience doing so. I wouldn't recommend that you use Chase for things like investment accounts however as their fees are very high. But for checking and savings, I believe the convenience of having physical branches everywhere should be part of the consideration.

Credit unions aren't everywhere, so you have to confident that you can get everything you need done over the internet or a phone call. I've never had as much success with customer service agents over the phone/chat as I have in person.

I banked with Wells Fargo in the past, but they wouldn't stop trying to push extra services on me everything I entered a branch, so I left them.

Clark Howard always says when you get a windfall, use 90% of it for bills/saving/practical stuff and 10% for something fun. Being responsible is very important, but enjoying life is too.

Why not just open your own new account (Ideally at a different bank) and move a majority of your money there along with your bills and direct deposit? That way you can still give mom and dad money easily and quickly if needed but you are in complete control over it, and they don't have the opportunity to take money that you don't agree to.

Sounds like you also need to set some boundaries with your parents and be ok with saying no.

Kind of depends on what it is for.

If it's an emergency fund, then HYSA, you can find savings accounts with much better interest (especially right now) than 0.01%. If it's money you're saving up for something, a CD could make sense and can earn a little more than HYSA over a period of time guaranteed.

I assume it's not long-term like retirement savings? Given you said you have other investment accounts.

I would imagine you can get setup here with 4k. I'd definitely prioritize things though and try to live as barebones as you can early on. The point is just get here and start getting a steady income stream coming in and then you can start buying things that you put off that weren't absolutely essential.

And yea agreed I wish there was some more prestige for federal workers. I don't think Americans realize just how much is done on their behalf that they don't know about. Their impressions come from their experience at the DMV or what they hear on the news. Michael Lewis wrote a good book, The Fifth Risk, that sort of highlights some of the unsung heroes in the federal government. I found it pretty interesting and it definitely rang true to me. If you're passionate about that sort of stuff it would probably be a good thing to bring up whenever you have an interview. I imagine they look for people like that.

Thanks for this - it is the best summary I have seen yet and will be my go-to now.

Is she working, a student, both? Does she have significant savings or will this be mostly a spend account?

Figure out what your expenses will be. Then find a job that can pay those expenses.

Being financially independent from your family is that simple.

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>a car that is in my fathers name

I assume you will buy this car from your father?

That is so awesome. I wish I’d had your class in school!

Compound interest - how it works both for and against you

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Also once you leave your employer, health equity fees are absolutely absurd. I think I was paying more in fees for my tiny HSA than for my 401k.

For a math-based financial planning course--retirement planning with Monte Carlo simulation, assumptions of a Monte Carlo model, reasonability of MC assumptions, Markov Chain Monte Carlo methods, impacts of different distributional assumptions and its impact on projected time to retirement.

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For a more advanced class--GARCH methods for managing volatility with extensions to Black-Scholes, using derivatives to hedge tail risk, combining tail risk discussions with scenarios from earlier discussions on Monte Carlo.

How much money are we talking?

It's hard to believe because coming out of the pandemic the food service industry is really hurting for bodies. Literally every single food service in my city is hiring right now for every position. I am curious where you live where food service is just straight up denying more help.

You know the answer to this. You don't need our permission or confirmation.

But if it helps, the answer is a resounding yes

Find out what the gross distribution amount is. There should be a "distribution statement" that came with the check.

Contact your traditional IRA provider or your current 401k provider and ask them how to deposit an "indirect rollover". You either

• deposit the check from the old 401k into personal checking account and write a new check with the gross amount to rollover, or
• write a check covering the difference between the old 401k's check and the gross distribution

Send the check(s) and a copy of the distribution statement to the traditional IRA provider or current 401k provider.

(Yes, you are paying the difference out of pocket for now, but you'll get the withheld tax refunded when you file (1 year from now).)

>Edit: what if I just put it into my personal Roth IRA since the taxes have already been taken? And then select 2022 rolll over instead of 2023 contributions? Can I do that?

You still have to rollover the gross distribution to avoid the 10% penalty. This is not much different from rolling over to traditional IRA, with the exception that you'll be paying taxes on the rollover.

> Edit: what if I just put it into my personal Roth IRA since the taxes have already been taken?

20% is the default withholding. You may end up owing tax at a higher or lower rate than 20% based on how much overall income you have this year. You can make more than one deposit as part of a rollover. You could deposit this check and then also deposit a second check to make up the missing 20%. As long as you indicate that both deposits are part of a rollover, it’s fine. If you only deposit this check but not the missing 20%, then the missing 20% will be further subject to an early withdrawal penalty when you file your taxes.

> And then select 2022 rolll over instead of 2023 contributions? Can I do that?

You don’t have to select a year for a rollover

This was my thought. If OP wants to keep helping her parents she could keep the account small and have that be an allowance for her parents. But in no way should they have access to any money she isn't willing to lose.

Them taking money before asking is definitely an issue. Even if she was going to say yes they're too comfortable with just taking money from her. If they aren't poor but aren't well off, they can probably work on their own budgeting to not need the allowance. They're so used to OP providing for them that they're dependent on her for the extra income, and the guilt tripping makes it even more of a requirement to restrict their access.

The additional expense is very small, and likely worth it if you are the kind of person who might forget to adjust your allocation over time, or who would lie awake at night worrying about whether you did it right yourself.

That 1800 difference should be smaller. They would have an extra $800 of income each month that could be invested instead. So if you take that into account you're looking at like $300 a year in investment income, bringing the difference down to like $1500.

Talk to other employees about yours and their income. Maybe they are paying you well under equal people because you never asked. It's not illegal to talk about. Would you rather keep working with that pay not knowing the new person they hired is already making 60k.