I took a 20% pay cut for an 80% reduction in stress once.

How much you will get approved for a loan will depend on your income.

Here is the math formula a lender uses to decide the max approval amount they say you can afford for a PITI mortgage payment ( Principal, Interest, Taxes, Insurances on PROPERTY and Insurance on LOAN ie the PMI)

Formula is X-Y =Z

X= Gross monthly incomes X .42

Y= the Sum of the minimum debt payments on all the liabilities you have in car notes, cred cards, student loans etc)

Z= the maximum PITI monthly mortgage a lender says you can afford

Mind you Z is the maximum at 50% debt to income and it’s not advisable to buy at your max you should always stay close to under 36% Debt to income, let’s call this A.

‼️Example at $55k ‼️

X= $4,583 x0.42 = $1,925

Y= $350 (student loan payment)

$1,925- $350= $1,575 max PITI Mortgage (Z) you would likey qualify for today in March 2023. poor.

This would be MAX a $180k house at 10% ($18K) down payment at 7% interest rate at a PMI rate of 0.80% at a 1% property tax rate.

The mortgage would be $1,480.

Looks like someone point you in the right direction on how to report the lost.

As a side note, you can report a max of $3k total loss per year. However, if you have capital gains, your carryover capital loss is used against that.

Concrete example:

Tax year 2022, You take the $20k loss. You had no capital gains. You'll have a $3k capital loss with a $17k carryover capital loss.

Let's say in tax year 2023, you have $5k capital gains from sell stocks. So, you'll use $5k of your carryover for that and then you'll use another $3k as a capital loss. On your taxes, you'll have a -$3k capital gains and a ($17k-$5k-$3k) $9k carryover loss.

Let's say in tax year 2024, you don't have any capital gains so you take a $3k capital loss using the carryover loss. Now your carryover is $6k.

Let's say in tax year 2025, you have $10k capital gains from selling stock. You will use all of your carryover capital loss and report a capital gain of $4k.

Your tax software will do this automatically for you. I've had a large capital loss carryover and the next year I realized a bunch a capital gains to wipe out my carryover. I look at that carryover as giving free money to the IRS that I want back ASAP.

That’s okay. You are aware of it now and have to have a plan toward the bigger picture. If you set several goals and commit to what you really want, I promise you it will pay off! Would becoming a FedEx pilot be something that would interest you?

This is something your insurance should be handling for you, even if they are paying nothing. You don’t need an attorney. Just say no and let them fight it out.

Police reports mean absolutely nothing when it comes to the insurer.

>Collision coverage is available regardless of who's at fault

Yes, assuming OP carries that coverage.

>Deductible is due regardless of who's at fault too.

Only if OP uses their own policy to cover the repairs. There's no deductible if you use the at-fault party's policy.

Hope you weren't injured. That sounds sketchy. Call your policy and an attorney.

No, it should apply to total gross salary. But bonuses is often unpredictable, and you certainly shouldn't be counting on money that may not arrive. It's kinda up to you to decide how "certain" a bonus is.

Is this USA? Because this makes no sense. Your insurance is going to go after the other insurer no matter what. I can't imagine you are even legally allowed to stop them from doing so.

Question about rolling over 401k:

I rolled over my 401k from my previous employer to Vanguard, where I had a Roth IRA account and where my new employer 401k is. The total amount is sitting in a brokerage, so I need to invest it somewhere, right? I feel like this is a dumb question.

Also, if I invest it, is a target date fund the best option? I’m 38 but probably 25-30 years from retirement. So I’m looking at a Target 2050 date fund.

Usually in those cases, the other insurance company already admits fault quickly without any substantial investigation, which allows your insurer to waive deductible. If you are hit from behind, and there are no serious injuries, it's pretty common for insurance companies to come to an understanding about fault in <24 h.

I've been in my share of car accidents and I have never spoken to the "other guy's" insurance company. They have no fiduciary responsibility to look after you, protect you, etc. In an adversarial system, they are your adversary, not your friend. Besides, if you're not at fault, I believe your deductible is waived because the other guy's insurance is on the hook for the total loss.

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Always just talk to your insurance and they will handle the claim and repairs with the other insurance

I'll definitely look into an umbrella policy, thank you. It seems a lot of people are recommending getting one.

Thank you. This is my understanding as well. What would you self report on the credit card application?

To expand on your comment that they electronically verified income, it sounds like they will pull your credit report and look at how much you spend per month on your credit cards and other loans to estimate your monthly expenses and then look at how much you pay down on those to estimate your income. I'm imagine their model is robust but that is the data plus estimating your housing cost that they will look at.

It feels like you can put any value in that income field if you feel you can defend your position if they question you about it. So, I'm leaning towards answer A.

Applying for a mortgage is very different than applying for a credit card. In my situation, I have talked to banks and they aren't interested in underwriting me with a typical mortgage since my income that I report on my taxes is so variable. I do qualify for asset based mortgages which tend to have a higher interest rates.

As a side note, I have been unemployed and still successfully gotten credit cards. I think it's combination of my passive income and having a credit score that hovers around 840.

More now probably

Essentially, yes. I have an illness that makes me unable to do most things, including not being able to communicate clearly or effectively most of the time. At the time I still needed 12-16 hours of sleep a day, and was so foggy headed I couldn't make the connections I needed to be able to do that. I could barely write a response email, let alone research and reach out. It wasn't guaranteed that I was even awake at a reasonable time. My "friends" at the time were conveniently too busy and my family was all too lazy to help. I asked for help, which was about all I could do at the time, but I didn't receive it.

Yes I've made improvements now, but it's all too little too late. I can read and write better now, but it's not guaranteed on any day. I'm still disabled physically, I spend most of my time in my bed, and disability payments take years to come through. I managed to keep forbearance up for two years instead of one because of COVID, and that was after all my savings were drained.

Believe me, if it was a possibility, I would have.

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You are allowed to withdraw however much you want from your Roth IRA at any time at any age. That is your money and you cannot be prevented from accessing it.

The big catch (which is probably your actual question) is that there are rules about whether that withdrawn money will be taxed or penalized. That tax + penalty is usually high enough that it's almost always a bad idea to incur those unless you absolutely, positively have to have more money right now or face severe consequences.

Roth IRA withdrawals follow a defined order depending on the category those dollars fall into. Here's a decently readable chart.

• "Contributory dollars" is the total of money you have put into your Roth IRA(s) since your very first deposit, minus any past withdrawals from your Roth IRA. So if you've made $5k of contributions since 2018 and haven't taken anything out since, that's the amount in this category and is the first thing used up from your current balance.
• The "conversion dollars" only matter when you've moved money from a non-Roth retirement account into your Roth IRA. That's probably not relevant to your situation, so I'll skip those.
• "Earnings" is everything else.

Withdrawals are always done as cash, so if you didn't have any in your IRA you'd have to sell some of your investments. That specific step is invisible to the IRS as far as taxes, they only look at money going into / out of the IRA as a whole.

So as long as you've contributed more than $1000 into your Roth IRA in the past 5 years, you can withdraw that much from your IRA without owing the IRS anything. That does effectively "waste" some of your past annual contribution limit and you lose out on future growth, but the government won't want anything from you for making that withdrawal.

You could open a Roth IRA, contribute the max for last year and the max for this year. Then make a plan to automate investing in it for the rest of your career. That would take care of a good chunk.

It would be a good idea to keep a good bit liquid as a 3-6 month emergency fund. You can open a brokerage account and invest in index funds for growth, or if you're risk averse, a simple money market fund will get you very close to your CD return rate and you can pull it and spend it in an emergency without penalty.

Thank you for the inputs.

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I think most are misunderstanding. The way that i read this is the at fault driver is saying we will pay for the deductible and rental as long as you have your insurance company process the claim. Meaning they will make sure repairs are equitable, done right and then process the claim through the at fault driver. Remember the OP has to requirement to process the claim through their insurance, they can do it all on their own, take the check, cash it and never repair or eventually come back and sue the at fault driver.

Sounds to me the at fault company it taking the lead to push this through insurance and overall help limit any extra paperwork or hassle that may arise from someone not going through insurance to fix. This does not at all appear to be trying to get the OP's company to pay for the repairs solely on the OP's behalf.