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I used to do this with my mom. The caveat was that she actually paid me back when she got her paycheck a week later. And I still got a new account for my bank deposits at 21. Kept the old one open with 50 bucks just in case for a while and then closed it. She needed 20 dollars here and there but tapered off long term. She's never needed money since.

That easy access is a life vest as much as it probably encourages unwise spending. They know they don't have to be as careful cuz you're there, but if you didn't exist they'd figure something out right?

Having a connected bank account at 26 is not normal. Just be 100% aware of that. You need to open a new account at a new bank, get your paycheck and all bills connected to that and then close this account. Whether she takes offence or not is not your problem. You also need to get your own phone and own phone bill.

Long term you need to decide if you are willing to financially support your parents. If you get married that will become a joint decision so you need to be thinking long and hard about it now. It is very easy to transfer money to other bank accounts if you need to send her money. Zelle exists literally for this purpose. Your mom doesn't need it, Zelle just sends the money direct to her bank account from yours.

No reason for your parents to be on your account. You can have your own account and have your parents set up as recipient of the funds if you die/are incapacitated. That is different than them having access all the time. Gotta cut the strings sooner or later. Might as well do it now. You can also transfer money between your account and their account via apps now. It puts you in control.

Highest rate first.

Dave only says that so people can see material progress and play mental games to win. Unless you want/need that, the best route is highest interest first.

For people whose income is above the Roth IRA eligibility threshold, a Traditional Rollover IRA will limit their ability to perform a Backdoor IRA conversion due to the pro-rata rule

I’m also in financial education. This about covers much of what we do. One of our more popular classes is “psychology of spending” lots of good data on needs/wants, and defensive shopping tips out there to share.

It can be convenient to still have a joint account with your parents, but it should be separate from your primary bank account, and at a different bank.

Agree, sometimes it's better to go more in depth on a topic than it is to touch on a lot of finance topics. Budgeting is a foundation skill, and different techniques work for different people, esp if any of the students are ADHD. Spend plenty of time on this topic.

These all sound like great topics I guess maybe figure out the spacing To fit the time

If you want a $0 taxable event for this, the only solution is to take the full gross amount and place it into a Traditional IRA, coded as indirect rollover (not contribution).

You replace the 20% with your own money. Then you get the withholding back next year when you file.

So if it was $1000 and you netted $800, come up with the extra $200 yourself and put $1000 into the IRA as a rollover. Then you get the $200 that went to the IRS back next year.

Pretty much everything else you're suggesting either still make this a taxable event, and/or still include the 10% penalty.

https://www.investopedia.com/terms/i/indirect-rollover.asp

Just a little???

I appreciate your insight! I can imagine that is a great feeling, and I appreciate getting to hear both sides

Your parents should not have access to your bank account and this arrangement will 100% absolutely destroy any marriage.

Just open a new bank account and quit funding the old one. If they ask for funds, just tllell them that you and your bf are stretched for cash

1. The average return of VTSAX since it's inception is 7.15%, idk where you got 11.5 from.

2. I'm about the same age and you are assuming we will be lucky enough to match the greatest bull runs of human history. It's far more likely our parents just had better investment opportunities than we will ever have access to.

3. The needs of a 64 yo who started investing a while ago and a 64 yo who started investing last year will still be the same. A 20% hit would affect both the exact same. Monetary needs are forward moving.

Check out Graham Stephan on YouTube. He's gone over some of the best banks for online only, as well as the lowest fees. Establishing myself as an independent adult and not just the child of my parents made a huge difference, but it took work to get here. Don't let people emotionally manipulate you. It's your life, and you only get one of them.

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Two topics

• Amortization schedules
  • cost of a loan
  • comparing loans
• Insurance
  • levels of car insurance
  • renter's insurance
  • do you need (term) life?

I think you need advice on how to handle your personal relationship with your parents more than you need financial advice. You already know the financial answer is to stop doing this to yourself. Move out and if you want to see them invite them to your place or out to dinner so they can’t take advantage of you. A family plan, $100 seems steep if there are multiple people on there. Only pay if you are given a bill and then pay your share. If they won’t do that look into getting a family plan with your boyfriend. And please post in a sub where they are allowed to give personal advice you so can finally stand up to your parents and put some healthy boundaries in place.

Thanks for your very thoughtful reply and sharing your experiences!

Yes.

and if your parents don't get over it. That is on them.

I had a mother that used my sister and myself as an overdraft.

I recently rolled over my 401k to a personal roll over account on Vanguard. This company called Capitalize made the process super easy and they have great staff. Hicapitalize dot com

I would also recommend having your young adult get a credit card. It was a great way for our son to build credit. The bank will gradually increase the limit. It helped out son quality for a mortgage; he is a homeowner at 23.

Using Marcus for T Bill ladders. Ally limits withdraws from savings while Marcus doesn’t. I leave a little excess in there as buffer that I’d like to still earn decent interest.

Ally is still my primary savings