Do you know what the umbrella policy does? Like when would that get used?

Again I don't know much, but that sounds like a solid answer. Thank you!

I would choose one of the retirement funds based

70 % VANGUARD EXT MARKET INDEX INST (US broad market stocks)

30% VANGUARD TTL INTL STK IDX INST (international developed market stocks)

- OR -

whichever target retirement fund is nearest your 65th - 67th birthday

You may find these links helpful:

• 401(k) Fund Selection Guide
• 401(k) FAQs
• "How to handle $"

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It'll probably serve you better to just pay over the minimum payment on the cc debt until it's entirely gone before going into more debt. I personally would avoid even going back into debt for a depreciating asset like a car unless absolutely necessary. Showing creditors you can handle debt responsibly is going to have a great effect on your credit score. Continuing to carry a balance and just restructuring your debt won't help you as much as just grinding out that payment while you're in a position to do so will.

Whether you carry collision or comprehensive is a measure of your own risk tolerance, risky behavior, and capacity to replace. There's no formula for it. You can pencil it out. As an example, if you have a car worth 5k and a 1000 deductible, you'll get 4000 in value out of your insurance should you total your own car. Over 4 years, that comes out to $80/month. So if you feel you are unlikely to total your car in the next 4 years and your insurance is $80/month for collision, you're better off dropping it. This is a moving target, though - how many cars have you totaled? How many more and how soon do you think you'll total them? Nobody really knows except you, and even then you don't really know that well.

As far as liability limits, that really depends on what you're likely to hit. I carry high limits on mine because I live in a neighborhood where G-Wagens and Teslas are rampant.

I've never filed an auto or home insurance claim in my life, though. Insurance should cover catastrophes, IMO, and anything short of that I expect to come out of my own pocket.

> Right now we own all three of our vehicles, no loans. Two are worth about $25k and the other is worth maybe $5k. Do I really need liability for $300k?

The value of your cars doesn’t matter for liability.

If you cause $300k in property damage, do you want to be responsible for a portion of it?

For hazard insurance, the replacement cost is a good number.

For liability insurance, however much you’d get sued for that was necessitate bankruptcy

I have maximum car liability insurance plus a $1mm umbrella policy.

That sounds like a solid plan. I'm taking 10% of the amount I'm put down for car savings. I'll still have money in my checking, but it's for living situations. It really is absurd. After paying 80% of my balance, should I ask for a lower apr with creditor? I'm hoping as well, I did a calculator within my credit company to get an estimate when it was going up. It was close with estimation but higher than the estimate. I'll do another and see what outcomes I get from paying that much. Thanks for your help!

I would get rid of the cc debt asap. 20% is a whole lot worse than 10-15% (which is also absurd). Stay at your current job as long as you can and save up for the car you want. In that time, hopefully your credit score will be much higher as well and you can get a better rate. Assuming you won't buy a new car outright and will be financing regardless.

APR is 20% on a credit card. I have $3868 owed. At the beginning of the year, I had $5500. I was at 410 CS after my fallout, now at 520. The cars I looked at were around 5-7k in price. The rate range was 10-15%. Perhaps waiting for 600+ cs would be more beneficial for me? Soon, my CS will go up again significantly since consecutive payments and knockout of a collection.

[deleted]

Np gl

That's amazing to hear, I'll look into more on that soon. Thanks for the help, I greatly appreciate it!

I read that people will start to buy new cars again due to the supply chain issues getting better so used cars prices will come down but consumer spending is hard to predict. Ikr not helpful but used cars u need to spend at least 7k in New York to get anything decent so that it passes inspection

Depends on the interest rate of the debt and the price and rate of the car as well. Hard to offer a solution with no insight on your complete financial situation as well.

I’m looking rn

That's also a good idea. Do you have an estimate on when the prices will fall? So I could save up for when it'll happen. I'll also do research on my end.

I’d wait on the car prices come down put the 2K towards debt

You may find these links helpful:

• Debt
• Dealing with collections

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It's a thing. The IRS somewhat considers all your IRAs as one big amorphous lump, regardless of what institution that total is spread across. Ok, one big lump with two sub-lumps (Roth and Traditional).

As long as they see money come out of that lump that gets returned into the lump within 60 days, it's an indirect rollover. Whether the deposit actually goes into a different IRA or the same one doesn't matter to them. It apparently does matter to Merril.

I've seen some people talk about using this as a risky way to get a short-term "loan" from their IRA. Take money out to pay off whatever emergency happened. Then within a couple of months, scrounge up the same amount of dollars and do a rollover deposit back into the same IRA. The IRS just sees the indirect rollover and you incur no tax or penalty (or use up your contribution amount if done with a Roth IRA). But like I said, it's somewhat risky, especially with Traditional IRAs where if the rollover deposit doesn't happen you get hit with tax + penalty. And you are only allowed to execute an indirect rollover once every 12 months (so not something to do everyday). But it is an option that is within the rules.

Yes he is scared of something and doing exact thing and subsidizing other intelligent buyers to have nice car without the depreciation available

The only solution when fearing high depreciation is buying second handed.

Always nice to see downvotes instead of discussion. It's not the disagree button, y'all.

The *reality* is that Covid /is/ a reason that banks /do/ forgive lateness. I know personally that this is true.

Leasing is buying the first 39k miles.

The depreciation curve is the steepest for the first miles on a car and flattens as you put more miles on a car.

You’re doing the thing you say you’re concerned about