help me straighten out, please [getting financial life in order]

Non-investing personal finance issues including insurance, credit, real estate, taxes, employment and legal issues such as trusts and wills.
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cchrissyy
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Location: SF bay area

Re: help me straighten out, please [getting financial life in order]

Post by cchrissyy »

skierincolorado wrote: Fri Oct 22, 2021 5:20 pm
Toons wrote: Fri Oct 22, 2021 5:03 pm Spend less than you make
Pay off the loans
Save for the house.

In that order.
:happy
I wish people would stop telling him this. Per NerdWallet and everything he has told us about his finances he qualifies for nearly 1M in mortgage, and 650k would be "affordable" according to NerdWallet. Obviously as a Boglehead I wouldn not consider that affordable, but the 250k he desires is a wise financial decision that could likely save him money over renting and improve his well-being. And it's a loan he should easily qualify for based on everything he has told us.
You are pointing out something useful but premature, and the majority of posters are correct.
The OP has more debt than one year's salary. that's a big deal.
and they are in the 1st year of a career at age 45 with a lot of catching up to do for retirement savings.
they have not yet answered the interest rate or monthly payment on the student loans.
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BogleFan510
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Joined: Tue Aug 04, 2020 2:13 pm

Re: help me straighten out, please

Post by BogleFan510 »

vanbogle59 wrote: Fri Oct 22, 2021 5:25 pm
BogleFan510 wrote: Fri Oct 22, 2021 5:10 pm A useful asset is not an investment, from the perspective of a financial investing web site.
Well, IMHO, that's quite the unusual perspective. Take that farmers looking to invest in tractors. Bridge builders investing in cranes.....

Perspective aside, OP needs a car.
You are splitting hairs.

OP is not buying the car to drive Uber and expense it as part of a business P&L. It is my guess you never worked as an officer for a large accounting firm, like I have. Feel free to be loose with your terms, but personal cars and homes are not investments.

Thinking that way is a good way to get one in financial trouble, which is why I bring it up (not to mention a way many get in trouble with the IRS, by trying to expense their 'investment cost' for their 'business', like farmers depreciating tractor costs against earnings) There are reasons financial terms are carefully defined: proper interpretation of contracts, accounting rules, banking loan rules and tax laws being among them.
skierincolorado
Posts: 2377
Joined: Sat Mar 21, 2020 10:56 am

Re: help me straighten out, please [getting financial life in order]

Post by skierincolorado »

cchrissyy wrote: Fri Oct 22, 2021 5:27 pm
skierincolorado wrote: Fri Oct 22, 2021 5:20 pm
Toons wrote: Fri Oct 22, 2021 5:03 pm Spend less than you make
Pay off the loans
Save for the house.

In that order.
:happy
I wish people would stop telling him this. Per NerdWallet and everything he has told us about his finances he qualifies for nearly 1M in mortgage, and 650k would be "affordable" according to NerdWallet. Obviously as a Boglehead I wouldn not consider that affordable, but the 250k he desires is a wise financial decision that could likely save him money over renting and improve his well-being. And it's a loan he should easily qualify for based on everything he has told us.
You are pointing out something useful but premature, and the majority of posters are correct.
The OP has more debt than one year's salary. that's a big deal.
and they are in the 1st year of a career at age 45 with a lot of catching up to do for retirement savings.
they have not yet answered the interest rate or monthly payment on the student loans.
All of what you describe will be made WORSE by renting in a market that favors buying over renting.

The OP qualifies for nearly 1M in mortgage per everything he has told us. 250k is extremely conservative given their income.

The one thing I agree with is that 1st year of career things can be up in the air. Switching jobs is common and can get a salary bump. But the OP's career is pretty standardized in salary I think. He hasn't told us that he is considering switching jobs or locations - he's told us he would like to buy a house - a house he is completely qualified for and which is likely to save him money provided he does not move in the next several years.
Topic Author
Rasputin13
Posts: 58
Joined: Wed Oct 20, 2021 8:05 am

Re: help me straighten out, please [getting financial life in order]

Post by Rasputin13 »

Drxgs wrote: Fri Oct 22, 2021 3:24 pm
Rasputin13 wrote: Fri Oct 22, 2021 2:31 pm
CoAndy wrote: Fri Oct 22, 2021 2:20 pm OP as a Nurse Practitioner, are you able to work as much OT as you would like? Even if it means temping at a clinic or hospital? It seems I read daily about the shortages of nurses out there, especially with many being let go because of the forced vaccination issue.
I'm salaried
You make 95k salaried while working well over 40 hours a week. Doesn't seem like a great salary for a nurse practitioner. What's keeping you from finding a better paying position somewhere else?
Median salary for a nurse practitioner is $104,000. I make $95 with a $3000 bonus in 90 days as a new grad. Where do you suggest I get this significantly higher paying job?
Topic Author
Rasputin13
Posts: 58
Joined: Wed Oct 20, 2021 8:05 am

Re: help me straighten out, please [getting financial life in order]

Post by Rasputin13 »

epictetus wrote: Fri Oct 22, 2021 5:00 pm To the OP:

have you seen the multiple responses by skierincolorado to your question/situation?

skierincolorado's view is that your situation is quite workable.

if you have not noticed the responses by skierincolorado i encourage you to read them.
He’s one of the few who doesn’t seem to be judging, just trying to offer constructive advice.
Topic Author
Rasputin13
Posts: 58
Joined: Wed Oct 20, 2021 8:05 am

Re: help me straighten out, please [getting financial life in order]

Post by Rasputin13 »

cchrissyy wrote: Fri Oct 22, 2021 5:27 pm
skierincolorado wrote: Fri Oct 22, 2021 5:20 pm
Toons wrote: Fri Oct 22, 2021 5:03 pm Spend less than you make
Pay off the loans
Save for the house.

In that order.
:happy
I wish people would stop telling him this. Per NerdWallet and everything he has told us about his finances he qualifies for nearly 1M in mortgage, and 650k would be "affordable" according to NerdWallet. Obviously as a Boglehead I wouldn not consider that affordable, but the 250k he desires is a wise financial decision that could likely save him money over renting and improve his well-being. And it's a loan he should easily qualify for based on everything he has told us.
You are pointing out something useful but premature, and the majority of posters are correct.
The OP has more debt than one year's salary. that's a big deal.
and they are in the 1st year of a career at age 45 with a lot of catching up to do for retirement savings.
they have not yet answered the interest rate or monthly payment on the student loans.
The monthly payment on the loans will be about $1,000 unless I do a repayment plan which would lower the payment significantly. I’ll try to find out the rates. The rates show 0% right now because they’re in deferrment.
VoiceOfReason
Posts: 416
Joined: Sat Jan 02, 2016 5:54 pm

Re: help me straighten out, please [getting financial life in order]

Post by VoiceOfReason »

Did you come to a board filled with multi millionaires expecting sympathy to be in more unsecured debt than your annual salary at age 45?

If you want to be in the position of the majority of the people on this board then listen to the majority. Not the 1 or 2 that are in the same position as you.
skierincolorado
Posts: 2377
Joined: Sat Mar 21, 2020 10:56 am

Re: help me straighten out, please [getting financial life in order]

Post by skierincolorado »

VoiceOfReason wrote: Fri Oct 22, 2021 7:03 pm If you want to be in the position of the majority of the people on this board then listen to the majority. Not the 1 or 2 that are in the same position as you.
Really? Usually bogleheads are above that. Your assumption is false.
Last edited by skierincolorado on Fri Oct 22, 2021 7:22 pm, edited 1 time in total.
randybobandy
Posts: 297
Joined: Fri Oct 05, 2018 10:51 am

Re: help me straighten out, please [getting financial life in order]

Post by randybobandy »

VoiceOfReason wrote: Fri Oct 22, 2021 7:03 pm Did you come to a board filled with multi millionaires expecting sympathy to be in more unsecured debt than your annual salary at age 45?

If you want to be in the position of the majority of the people on this board then listen to the majority. Not the 1 or 2 that are in the same position as you.
Username checks out.

--Randy Bo Bandy
Grammar and spelling matter. | Quoting the OP isn't a necessity.
onourway
Posts: 3778
Joined: Thu Dec 08, 2016 2:39 pm

Re: help me straighten out, please [getting financial life in order]

Post by onourway »

Rasputin13 wrote: Fri Oct 22, 2021 6:16 pm
epictetus wrote: Fri Oct 22, 2021 5:00 pm To the OP:

have you seen the multiple responses by skierincolorado to your question/situation?

skierincolorado's view is that your situation is quite workable.

if you have not noticed the responses by skierincolorado i encourage you to read them.
He’s one of the few who doesn’t seem to be judging, just trying to offer constructive advice.
He’s also one of the few telling you what you want to hear. If a few hundred dollars a month is the tipping point for whether you can afford this or not, listen to the majority who are telling you to get rid of the debt first.

FWIW, you got extremely constructive advice on budgeting that you have conveniently ignored.
Last edited by onourway on Fri Oct 22, 2021 7:24 pm, edited 1 time in total.
skierincolorado
Posts: 2377
Joined: Sat Mar 21, 2020 10:56 am

Re: help me straighten out, please [getting financial life in order]

Post by skierincolorado »

Rasputin13 wrote: Fri Oct 22, 2021 6:17 pm
cchrissyy wrote: Fri Oct 22, 2021 5:27 pm
skierincolorado wrote: Fri Oct 22, 2021 5:20 pm
Toons wrote: Fri Oct 22, 2021 5:03 pm Spend less than you make
Pay off the loans
Save for the house.

In that order.
:happy
I wish people would stop telling him this. Per NerdWallet and everything he has told us about his finances he qualifies for nearly 1M in mortgage, and 650k would be "affordable" according to NerdWallet. Obviously as a Boglehead I wouldn not consider that affordable, but the 250k he desires is a wise financial decision that could likely save him money over renting and improve his well-being. And it's a loan he should easily qualify for based on everything he has told us.
You are pointing out something useful but premature, and the majority of posters are correct.
The OP has more debt than one year's salary. that's a big deal.
and they are in the 1st year of a career at age 45 with a lot of catching up to do for retirement savings.
they have not yet answered the interest rate or monthly payment on the student loans.
The monthly payment on the loans will be about $1,000 unless I do a repayment plan which would lower the payment significantly. I’ll try to find out the rates. The rates show 0% right now because they’re in deferrment.
And the monthly debt payment of $1,000 was what was used on the loan application? There is something very wrong here. Monthly debt of $1000 with income of 150k should qualify for over 1M in mortgage.
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Re: help me straighten out, please [getting financial life in order]

Post by LadyGeek »

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