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48

I've been in severe credit card debt most of my adult life, thanks in part to growing up poor with no financial education. Throughout my 11 year IT career at a large company, I've known several older people that have either had nervous breakdowns and left or died of heart attacks. This had an effect on my financial plan, which was basically to get a vasectomy, try to enjoy life without much care for a budget, and then die at 50 somehow. After selling my house last month, I'm rethinking that approach.

After not really ever expecting to dig my way out of debt, I have now done just that and have $45,000 left over. My wife has been a homemaker since we were married at the age of 18, but started working at a school for $25K a few years ago. Now that we have some money, she can afford to go to school to be a nurse, which she has always wanted to do. She has quit her job and we are moving into a cheap one-bedroom apartment this week which should make life easier and allow her to concentrate on this goal.

For the past couple of months, I've been reading a lot of r/personalfinance, and it has been incredibly helpful. Following the prime directive, I currently have $20,000 in a AmEx high-yield savings account as an emergency fund and have finally started contributing to my 401k up to the company match. I regret not doing this earlier, but the high-interest CC debt created a mental block and the multiple times I tried to learn what 401ks were about proved to be too daunting.

At this point, it seems that I should start contributing to an IRA. I really can't decide whether traditional or Roth is better for my wife and I, and this is where I'm looking for help. To add more detail, I recently received a decent promotion and make $80K with a potential 5% bonus, and of course my wife is not currently working. I'll probably end up working my current job forever, but don't see much room for growth past where I am. We also want to buy a nice small house in 3-4 years, and would like to save 20% for a down payment. We would probably be looking at a $225K house by current market prices. We had planned to move straight into another house from our old one, but were surprised that no one is accepting VA loans around here due to fierce competition. After several failed offers, we changed our plans to rent in a more convenient location than we could afford to buy at.

So, what would be best? Start contributing to IRAs? Which type for each of us? Otherwise, should we skip the IRAs in order to save more to buy a house? Or should we push that goal out farther and count on the extra money my wife will make once she becomes a nurse?

TL:DR: Former indebted nihilist sold house and now has $45K with $20K of that in currently in savings. Currently paying for my wife's nursing school but life needs to normalize a bit before I can accurately budget. I believe there is plenty of money to start maxing out our IRAs, but which type? Or should we do something else?

50

I make approximately 75k a year (Maybe up to 83 with bonuses). I’m 24 years old, with around 35k saved up in stocks/savings accounts and 7k in a 401k (only started last year). I’m looking at spending about 1400 a month on rent for a 1 bedroom apartment and I like the unit I toured (not a display unit). It’s super new, and has good kitchen space, plenty of room, with a solid location.

Meanwhile I think the lowest I could find in the area is around 1000 for a 1 bedroom. Location is about the same and the unit would be a bit smaller, bit less modern, and with a cramped kitchen. Do you think I should go for the 1 bedroom to save more or go for the nicer apartment knowing that I’ll be down like 300-400 dollars a month?

I guess it boils down to whether I think creature comforts are more important than my ability to retire early. Has anyone been in a similar boat, and is there any advice you’d give me?

44

My parked 2014 Toyota was hit by runaway car (no driver - they said it must have come out of park on its own?) and the insurance appraiser called and said the car is a total loss. I owe about $12k on it because I got it financed from a lease with low payments, and KBB says it would have been valued around $8200 prior to the collision. I'm assuming I'm only going to get that $8200 from the insurance company, which leaves me with nearly $4000 I would still owe toward the car, and that doesn't even factor in me getting a replacement. I don't have any sort of gap insurance because I simply didn't expect something like this to happen - I'm a safe, defensive driver.

What should I do? I don't have a bunch in savings, and I personally feel I shouldn't have to pay for someone else's negligence. (I know not having gap insurance is already negligent - the irony is not lost.)

Edit: they came back with a value of ~$10.5k, so I’ll only owe 1.5k, which I have in a week or two (thank you earned time payback!). As far as getting a new-to-me vehicle, I don’t really WANT to lease a new car, but I also need a car ASAP as my earned time is gone due to starting a new job on 7/1. Any suggestions?

37

Yes, it's true! Long story short, I was required to file an amended return for my 2015 taxes. The letter I received in early 2016 said I had 3 years to do so. I was led to believe that the amount I might owe (or even be refunded) would be negligible, so I put it off until November 2017. In March 2018, I got a letter from the IRS saying that I actually overpaid a LOT (to me) of money in taxes for 2015, so they would send me a check refunding that amount *plus interest*. I gave it about a month (figuring it's a government agency, after all) and the check never arrived. I called them, and they told me they would set up a trace that would determine whether the check was deposited or not. If it was not deposited, they would reissue the check. If it was deposited (fraudulently and not by me), they would send a packet that I'd have to fill out to prove that I did not actually deposit the check. I had to call them twice to initiate this process; the first time I called the person who initiated the trace did it incorrectly, and I didn't find that out until I called to check on the process a couple weeks later.

They said it would take six weeks, and today was the deadline. I really didn't think the check would come, but every time I called the IRS to see if they had tracking information (they didn't, go figure), I was told that I had to wait for this deadline before they could take any action.

Up until now, I have been simply dealing with the person who answers the phone when I call the number my IRS letter told me to call. I want to escalate this, since they are clearly mailing me things and I'm not getting them. The last person I spoke to said they cannot do direct deposit, and can only issue checks through their system. The checks are sent from Kansas City and I live in a major east coast city. Even if it took the longest amount of time for the IRS to process a check and then for said check to reach me, it should only be about 2 weeks.

I have also contacted my local post office, since my neighborhood has had sporadic problems with delivery in the past. However, I do feel that the responsibility lies more with the IRS than the USPS in this case, since they are the ones who have my money. I am going to call the IRS tomorrow but I'm not exactly sure what to say. I want to get results, and at this point them telling me for the third time "We will start a trace and you will either get a check or a packet..." is no longer acceptable. Thank you for your advice!

16

So since I have been working as a contract person, My company never offered good insurance. I purchased this 93$/mo insurance from ISO student health just for emergency. Since I am 31 yo M, I never anticipated going too often to the doc.

I paid for my own blood test and showed it to the doc. BIll comes in as $273 and discount amt =0%.

Since most of my friends have high cholesterol and it runs in my family, it was a preventive care visit more than a 'pre-existing' condition. How do I get my rates lowered?

17

I hope this sort of post is allowed, and if it's not I hope that someone can point me to a place/resource that can help me. Sorry for the wall of text, I am lost.

My background and situation:

I am 22, I back moved to my rural home town 2.5 years ago. I moved into my childhood home, owned by my mother. The deal was, I could have the house and live there rent free, under the condition that I pay the property taxes and do the needed repairs to it. After that I would be free to live in it/sell it/rent it out if I wanted to. My plan was to live in it while I fixed it up, then rent it out and use the collected rent to pay for my own housing elsewhere.

The job I arraigned to come back to is cooking in a remote (yet popular) restaurant/bar. I am paid cash nightly and not on their books. I started immediately when I arrived at $8.50 an hour, and worked my way up to my current $10/hr. I commute 30 minutes to this place. With the hours I make there, I make $260 a week.

I recently picked up 16 more hours at another local restaurant (on the books, $8.50/hr, paid biweekly)

I have made some errors over the last two years, I have been very lost in a very complicated relationship, lost in my depression and anxiety issues. I can't really put into words the problems that I have and have been going through, but they have recently come to a head. The house needs more work than anticipated, and quite expensive work.

  1. I have a used car loan in my name, it is a $3500 3-year loan, the payments are $105 a month.

  2. Because of the loan I am required to have full coverage insurance on the car, which currently for me is $225/month.

  3. My SO was living with me in the house until two months ago, paying half of utilities (most of the time, for a 5-6 months I paid them all) Without going into unneccecary detail, I let some utilities get backed up. I owe about $600 to my electric company. I have no idea how my lights are still on, I haven't given them a dime for 3 months.

  4. I am having personal health issues, aside from the depression and mental health problems (which are crippling right now to be honest) and was going to a free clinic for treatment, but it was unsuccessful and I was referred to a different doctor. I have no health insurance nor do I know how to go about getting it, given my working situation, so I don't know how to further deal with that problem.

  5. My mother casually told me yesterday that I had mail, and it was a notice of taxes due and pending tax sale. I owe $610 in back property taxes, and the day I got the notice was the day the letter said the tax sale was supposed to take place. I am not particularly sure what all this means or how close I am to losing my house.

I currently have $2 in cash, $50 in my savings, $20 in my checking, and maybe $15 in spare change.

I have no idea where I need to start, or what to do to dig myself out of this life. I am very sorry that all this information is so disorganized. My mind is quite disorganized right now, and I have to fight myself really hard to not completely give up. I am very grateful for any feedback anyone could give me.

12

Hey guys,

So about 8 months ago, my father passed away. I'm one of three children, and lucky me, I was appointed to handle the estate. He left kind of a mess, but I've handled it better than I thought going into it.

Normally I would have preferred to handle this earlier, but I was busy trying to keep his house from being foreclosed on (he didn't pay his mortgage for a couple of months prior to his passing), and renovate the small things we could to bump up the value of his house. A couple weeks ago it was sold, and have started paying off various accounts.

Yesterday, I received a call from the agent that was handling his account. I made a payment a couple months ago to stop it from going into collections (not sure if this was the correct thing to do or not as this was all new to me), and they were calling essentially to see what the status on repayment was. I explained a few of the last minute issues we were dealing with (like my uncle who is pursuing a claim against the estate) and she offered the option of a debt settlement.

So to break it down, the entire loan was $30,000, with just over $17,000 remaining. The agent suggested somewhere in the range of 80-85% in a lump sum due within 60 days after the agreement. The business is in the process of being closed down, so there is no intention of any of us taking it over. My lawyer and brother are both of the opinion that we should low ball them an offer, and let them counter with their own, but I'm not really sure where a normal figure to start with is, and my lawyer isn't as much help as I would have liked. Mistake on my part. I've never done anything like this before (no debt, and really only buy what I can afford) so this especially is uncharted territory. We also do have enough to cover the remaining balance, but obviously I would prefer to pay less if possible.

So my questions are:

Are there any negatives to taking a debt settlement in this situation? I know it usually negatively hits credit scores, but in this case, that wouldn't be an issue.

Is there a general number you would open with for an offer? I know they're at least open to 80%, as that was their opening offer.

Like I said, this is all kind of new to me, figuring out as I go, and most of the advice I've found is for credit card debt settlement for individuals. Thanks in advance!

8

I have a bachelors degree in business, I have one year of work experience through three four month long practicums (paid). I received an offer last week on friday for a job that would pay more than what I was expecting to get as someone fresh out of university. I'm wondering if it's common practice to still bargain to get a little bit more.

8

I searched and could not find much in the wiki about cutting spending, and even if this is a repost or similar I feel it’s a good reminder to think about expenses, not just increasing income!

I consider reducing expenses by $1 to be worth more than increasing income $1. The dollar saved is not taxed, and, reduces your personal cost of living which (if maintained) makes your future cost of living lower. I see people every day making decisions that are adding to their personal expenses, and just shake my head. People buying coffee while driving to work, getting snacks from gas stations, and buying lunch at work are examples.

This made me wonder – how much extra money is generated from saving an average of $5 every day?

Saving $5/day is:

$35/week

$152/month

$1,825/year

Turns out that if you save that $5 every day for 40 years, it ends up being about $250k!*

\5.5\% return. Exact number varies based on # periods and interest calc (daily, monthly, annually) but I wanted to use a round number to make a point.* http://www.calculator.net/future-value-calculator.html . Also to consider: $5 for 30 years is about $141k, 20 years is $69k.

Since being introduced to MMM blog a few years ago, I have been much more aware of where I am “leaking” these $5/day (and then some). I did not track anything close enough to show a change in savings over time, but I can say that with a combination of some of the things below, I am saving over $500/month from what I was spending.

I am sure there are tons more ideas out there, some of these won’t work for you or the dollar value isn’t accurate, and some may be things you don’t want to (or “can’t”) change. To save an average of $5/day you don’t need to make any of these changes permanently or every day, but on average reduce daily expenses by $5 and in 40 years that’s [likely] worth $250k!

Some examples of people who have saved and posted about it (ironically, both use $5):

Daily latte for savings

$5 for five years

Daily Changes:

Pack a lunch ($5)

Make your own coffee ($2-5)

Walk/bike to work ($1-?)

Drink water instead of buying a drink ($2)

Don’t buy the afternoon snack ($2)

Skip the gas station on the way home for the snack or drink ($2)

Weekly changes:

Skip the once a week lunch meal out with coworkers ($10-20)

Plan your (home-cooked) meals based on sales from weekly ads/shop at discount grocery store (Aldi, Trader Joe’s >> $10+)

Clip coupons

Buy items you use frequently in bulk (Costco/Sam’s – but don’t buy things you don’t need! >> $10+)

Have friends over for a get-together instead of going out to a bar/restaurant ($20+)

Drink water daily instead of buying another 24-pack of soda/la croix/juice ($5-10)

Cut your own grass instead of paying someone

Monthly Changes:

Pay any bills (credit card, rent, cable/internet in full, on time. (missed and late payment fees add up! $25+)

Cancel Cable/DVR ($80)

Cancel or consolidate Hulu, Netflix, Amazon video, HBO, etc. ($30)

Downgrade car to reduce or remove monthly payment ($150+)

Review cell phone bill, reduce plan ($20+)

Bike/Walk to work during nice weather month and skip paying for the parking pass ($100)

Shop at thrift store/rethreads for “new” seasonal clothes (“new” for you $100)

Consolidate loans for a lower rate (student loans $varies)

Increase 401(k) contribution to take full advantage of employer match ($varies)

Annual:

Reduce rent by downgrading/relocating

Negotiate salary and benefits

Negotiate work situation – work remote one or more days per week to avoid commute?

Review employer-sponsored insurance plans to ensure proper coverage, and not too much (*this may result in an increased cost, but proper coverage could ultimately save you loads of $$$)

Review auto, renter/home, umbrella, and other insurance policies with an agent.

Review taxes to ensure maximum return for last year, or what adjustments could be made for future years

Cancel gym membership and workout outside or at a home gym

Are there home projects that could be a long-term savings? (LED Bulbs, solar, energy efficient windows, shutters, etc.)

What are other ideas?

12

I am currently about to start nursing school in August. My finance and 3 year old daughter live with his parents until I finish my degree in 2 years (high COL area, plus its just easier logistically since they watch our daughter when I'm at school/hes at work during the week)

I have about 600/mo left over from my financial aid after all my school fees and supplies are paid, while he makes ~1000/mo (can be more or less depending on hours) Our bills are covered fine and we can sometimes put some money away, so we are good on that front.

My real question is we are toying with the idea of getting married. however I'm unsure of how this would effect my FA for school, obviously then I would have to include his pay when filling out my FASFA I doubt it would really change anything since he doesn't make much, is there any pros/cons I'm not aware of?

Also he is in default for his loans (I know he basically just never paid attention to them during a turbulent time in his life before we were together... we are in the process of fixing them) Would that effect me if we were to get married?

7

My bank provides my credit score monthly, and this month my FICO score dropped from 815 to 705...OUCH.

Pulled my detailed reports from the big three, and found an adverse account in collections for a medical bill from years ago that had recently been sold off to debt collection agency.

I never received a bill, phone call, or any other communication trying to collect on the amount due from the hospital or collection agency. It's only $165, and from a hospital where myself, wife, and kid have all visited last spring, so I am fairly certain it's probably legitimate. I received other bills from the hospital for these visits and paid them all, so I know they have my info.

Do I have any recourse here to have the adverse account information removed from my credit reports if I pay the amount owed? My credit history has always been really good up until now so this is really bothering me, especially since we were about to refi the house.

10

So, here's the situation, I have a good job, I'm debt free, retirement accounts are maxed out, and I have a savings account of $45,000 getting paltry, paltry interest, falling behind on inflation. This covers a full year of bills at my current expense level, which assumes I change nothing about my lifestyle in the event of a job loss, which is very conservative. So I was considering sinking the majority of it ($35k to $40k) in to CDs at my local credit union. 60 month CDs have an APY of 2.55% which is far better than my savings account and an early withdrawal penalty of the last 270 days of growth, so worst case, I'm no worse off. Meanwhile I'd still keep $5k to $10k liquid and have excellent credit available to me.

My question is, am I missing any good reasons to not do this?

8

This is kinda an interesting piece about student loans and marriage. It is a good thing to keep in mind I suppose https://www.consumerreports.org/student-debt/student-debt-and-getting-married-what-you-need-to-know/

10

21k is the most I've ever earned so what tips do you have so I can use the extra income wisely.

We don't own our home and really want to buy our first, but also want to enjoy earning so much more per month.

8

Note, I live in South Africa so it’s not dollar values

At the age of 32, I find myself in a good job with a great salary and decent benefits. The problem is that I didn’t grow up with financial savvy parents and it seems that their bad habits have rubbed off on me.

I spend absolutely everything I make every month even if my fixed expenses are only about 40% of my income.
A high level monthly expense breakdown of expense is:

Fixed income(tot) 57 750
Salary 52 000
Rental income 5750

Fixed expenses(tot) 20 050. Apartment Loan 4 300. Apartment levies & taxes 1800 Car payments 4 400 Insurance 1 700 Rent 6 000 Electricity 800 Other small exp 1 000

bad expenses(tot) 12 300 Sideline business 6 000 Mom 3 500 Brother 2 800

So that leaves me with 25 400 which all goes to food and entertainment (crazy, I know!)

I own an apartment which pays for itself with tenants (place is to far from my current job, hence I’m renting a place of similar value closer by)

Details about bad expenses: Mom: I support my mom (she works full time) by giving her extra every month to make ends meet. We don’t have a good relationship, so this is a grudge expense to keep her from contacting me for help. It’s not sustainable though, as inflation will catch up, and will start asking for more. Retirement is 10 years away for her. She won’t have enough saved up. Also I have a half brother who will finish school in about 8 years, not sure what’s his future holds without money to study etc. His deadbeat dad is out of the picture and cannot financially contribute

Brother: I cover my brother’s rent. We have a good relationship and he does his bit to keep his expenses to a minimum. He works for me in the sideline business and gets minimum wage although the work he does is worth way more than that. He used to be in a really bad space in his life and employing him in the sideline business has given him purpose in life. He has no formal qualification. Although extremely loyal, he needs a lot of coaching and if it were anyone else, I’d would have fired the person him for certain negligence.

Sideline business: A business partner and myself owns a little side line business. After 2 years, It’s not profit generating. We both pay 6000 per month to cover the deficit. I’d like to get rid of the business, but my brother works for us, and I’m not sure he’ll be able to hold a job. Apart from that, I will be liable for a 150 000 loan that will need to be settled if I close the Business. And potentially other expenses cancelling lease agreements, laying off staff etc.

What’s not on this list: I just got approval for a loan on a second apartment (1100 000) which I will rent out (there is a tax clause that offers me a tax break if I rent it out) this kicks in on September. Repayments will be 9000 and I expect to get between 7500 - 8000 in rent

I have credit card debt 2credit cards totalling about 90 000 I pay 12 000 - 15 000 (more than the minimum) back each month, but end up spending it all again. Reason for the 2 credit cards is each have different benefits I use. Interest rates are quite high in my country.

My aspirations: I want to buy a house in the next 2 years as primary residence long term. A fix upper as I love DIY. Place I stay is pretty nice but homes in the area go for about 3 000 000. I most probably would need to put down 1 000 000 for the Bank to approve such a big loan and repayments would then be 20 000 a month. I could most likely get a housemate to reduce the loan expense. But I need to prove to the bank that I can cover the bond myself. I get about 300 000 in bonuses after tax annually and hope to put this towards deposit

I want to eliminate the bad expenses. How do I put the money to better use to make my mom independent What’s better? Closing the sideline business, supporting my brother for awhile until he is independent? Or putting more cash and effort into the business?

I would like to investment small amounts for medium term. What are good reading material to learn what is best short/medium long term investments?

I go on holiday once a year and spend about 60 000. Ideally I’d like to save up during the year instead of maxing out my credit cards every time.

So how do I put my spare cash hard at work, what do I do to become more disciplined at saving?

My fear is I’ll wake up one day being 40, and still be financially illiterate, with lots of dreams and no way of making them come true.

7

Newly married, looking to buy a home in Los Angeles/Southbay with the wife. We are looking in areas on the westside, preferably a single family homes vs townhome/condo. Wanted to get this sub's perspective on the max we should be paying, both total home price and monthly for the mortgage. Is it crazy for us to buy a property at 1.2mil right now; that seems to be the starting prices for single family in the areas we are looking.

(Everything below is joint income)

Savings:

$142k in Brokerage (Stocks, ETFs, Mutual Funds, Crypto)
$100k in cash/CDs
$90k in 401k
$85k in RothIRA

Cashflow

$10.5k/mo take home pay (after maxing 401k)

Expenses

Rent+Utilities: $2500/mo
Food: $500/mo
Everything Else: $1000/mo (dogfood, fun spend, gas, etc.)
No Debt

EDIT: Forgot to add in wife's brokerage. Adjusted the amount.

8

Reposting this as I haven't gotten any responses the last time.

My father left me about $10k USD when he passed away a few years ago, and they were put in a bank as I was still a minor, in a 5 year closed deposit returning 5% after the 5 years are over (next month), which is basically just $500 return after 5 years!

I'm currently studying Computer Science, and still have 2 years left until I'm done. I'm planning on living abroad after. (I'm an Egyptian citizen)

I was planning on using that money to get an online masters from Georgia tech (OMSCS), which costs about 7k~ USD, but, until then, how do I manage those savings?

Obviously keeping the money in USD is better than keeping it in my local currency (Egyptian pound) due to inflation, but I'd like to do something with it other than just store it.

Help?

TL:DR in Egypt, 10k USD in savings, won't need them before at least 3 years from now, what should I do with them?

7

Hello,

Not sure if this is the right sub. It regards a close friend of the family. They passed away two years ago and I was in control of managing their affairs. Since I knew this person well, I knew their logins and accounts because I set them up with them. Our relationship was like parent/child, because they raised me but not legal guardianship.

I successfully closed most accounts, declared them deceased on tax forms and had everything situated except for their bank account.

After the funeral, I went back to my home across the country and was able to handle the accounts except for the bank account. They said I needed to deliver the death certificate in person to close the account. Of course, I wasn't going to hop back on a plane just for this, so I let it go and grieved.

Well, it's over two years later and I'm still receiving texts messages every month about a new bank statement and figuring I'll ask here to see what I can do. I mean, it's just an account with some money in it that basically just is paying the monthly fee of the account being open, nothing else.

Can and how do I cancel this account without physically being at the bank branch? Should mention, it's a branch with no offices nearby. Online banking doesn't have anything about cancelling or anything, even when logged into the account.

Thank you.

8

I have 36k in available stocks and another 28k unvested. I have about 5k in the bank. I also have 250k in my 401k.

How do I get out of debt? Use my stock money to pay off as much as my CC debt that's accruing interest? Borrow from 401k? Keep doing balance transfers to avoid interest? I feel so out of my element here. Let me know if more info would help. Thank you.

4

I'm 30 and currently have £100k in equity in my 3 bedroom house, property value is £200k. Expecting our first baby soon and looking to move to a better school catchment area. Our current house is ample in size for us now however would prefer to move in the future for the little one school. Obviously got a few years before they start school.

Is it better to overpay for the next few years and increase the equity before moving or make the big plunge now? Would be looking at taking another £80k mortgage if we move house now. The maths is telling me it's better to overpay but the house prices in the other area are rising faster than mine?!

7

Hey all,

I currently make 12 bucks an hour as a data scientist intern at my local university. I rent a shitty apartment and drive a 04 civic. My parents are both retired and I'm 26 so this year I applied for medicaid. At least until I graduate this fall (MIS is my major so hopefully I get a job fairly quick). I was accepted and picked a provider in the state of Michigan. I did pay for a dentist appointment at my old office and was told I have several cavities which would total around 800 (that's with a $100 "lower rate plan" fee for those uninsured). They don't take state medicare like most dentists. What are other options as far as dental goes? I was thinking of opening a credit card that offers 500$ if you spend 3000 in 3 months as I'll have to spend that in tuition in the next month or so anyways to negate the costs a bit.

regards

Z

7

Edit: thinking of quitting my job! Can't update the title...

I'm like the guy in Office Space; I do about 3-4 hours of real, actual work every week. It is extremely exhausting doing nothing.

I have about $30k saved, make about $55k a year. Debt is house and cc, about $210k total.

With my current savings and a rental property income I can sustain my current income for 11 months.

I would like to sell real estate, start a food service business, or something like nutrition/life coaching.

I wish I had a solid question. My fear is that I'll fail at everything, have to fire sale my house and then live in a van down by the river.

Thanks for reading. Any thoughts you'd like to share will be appreciated.

5

What should i do?

While most of my portfolio follows the regular recommendation portfolio, i do play the market a bit with some smaller cash bucket. I did really well on some call options and now my income this year exceeded the max allowed for roth IRA contributions and ive already contributed.

The roth IRA also did really well this year. What should i do. Pull back the contribution and pay tax on the capital gains the 5500 made this year? How does fidelity calculate that? My roth also increased significantly in value this year but only because it had been down. Mostly with stocks bought with a 2017 contribution. The increase happened after i contributed for 2018. Does fidelity know what is purchased with what stocks, or does it look at your contribution, the total amount that was in the account on jan 2018 and then calculate the capital gains and the share which proportionally aligns with the 2018 contribution.

What do?

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