Starter
A question for Bretsky if he doesn't mind me asking....
I'm thinking about a Home Equity Line of Credit for some repairs on the house and my CC. What are your views on this? I have heard nothing but good things from the people that want me to do business with them
(Interest is tax deductible, the monthly payment drops when you pay down on the principal, things like that).
Are HELOC's as good as they say they are and whats the current rate?
Originally Posted by pacfan
SOME GOOD QUESTIONS in here Pacfan so I'll give some thoghts to ponder and others can chime in. I have a Home Equity Loan. The most serious of money guys may say you shouldn't spend the money if you don't have it; that is not always practical. In my scenario, I needed a new roof a year after I bought the home and used it for other fixings. I also have two kids and a wife so cash flow and emergency money is quite important for me.
A HELOC essentially can serve as a lower interest credit card. If you have some credit card debt at a high interest rate a HELOC is a solid option. Most go this route. If you have strong credit, more people are also using 0$ Credit Cards, and then rotating these cards to another 0% card before the interest is due. Back when HELOC's had a great rate I'd pound for them harder; now both of the above scenarios are not bad options.
All of the interest is tax deductible, which is nice. And if you take out 10G, pay it down to 5G, you can often dip back in for the extra at a later date.
Three years ago HELOC's were a very hot thing; back then rates were as low as 4% on a Line of credit. Now the FED has raised interest rates around a dozen times and they did it again last week and this has driven the rate on that loan way up. The average HELOC interest rate is between 8-9% depending on the bank you are at.
So now it's not quite as good as it use to be. Banks make very good money on these and push them quite hard. All of the above mentioned points made by your bank is valid. They give you flexibility. They can reduce your monthly payments on credit card debts, thus adding flexibility to your life. And they are tax deductible. All good points. And if you are paying 15-25% interest on a CC, a HELOC is certainly a better option.
On the other hand, over the past few years people have really driven up their debts with these Home Equity Loans. Banks often offer interst only payments..........unfortunately many people only make interest only payments so the balance never goes down. If you get one of these PLZ do not do that. They serve a nice purpose and it sounds like you make a nice fit for one of these. But use it responsibly; that is the key. If you pay off CC debt and take out a HELOC to pay it off, ask your banker how much of a montly payment you have to make to pay it off in five and ten years and then plan accordingly.
So my general view; good idea......but use it responsibly.
Feel free to ask any further question, and others feel free to chime in as well.
B
Man, I just received my first paycheck for the summer, and it really sucks knowing that 25% total was taken out for taxes, and that 55 bucks every two weeks will be going to social security.
If I don't make 10,000 dollars a year, do I get everything that is Fed Withholding and WI Withholding back? That sure would be nice to get that back.
after hearing the stories of park workers sleeping on the job from my gf, I don't think i'll ever vote democrat again. This taxation is ridiculous. Something needs to be done about social security. That is another topic though. But shit, 6% of my salary to something I will never see really sucks, especially at this age when money is sparse as is.
LOL, try hitting the max every year knowing that shit ain't gonna be around. And when you find out that between taxes, Medi, SS, and insurance (if you have to pay some of the benefit), 40-45% of your money isn't yours... well that's a real special feeling. Special indeed. Put gas, sales, property, excise, and every other goddamn tax and "fee" in the pot and we're talking 45-50+%. Beautiful!
"You're all very smart, and I'm very dumb." - Partial
HOFer
for the fed - you get a $5150 standard deduction, and a $3300 personal exemption, so the limit is $8450, after that you pay fed taxes at about 10% for starters.
I don't know the Wisconsin limits off the top of my head but it should be similar, maybe a bit higher if you qualify for the renters credit.
Social Security and Medicare are 7.65% for you , and an ADDITIONAL 7.65% for your employer. Thats 15.3% for both of you, but really just you, because it is part of the compensation package that the employer planned for when they hired you.
So, If I have a choice of making 9500 or 8400 and quiting, it would probably make more sense to stop working just before the 8400 since I wouldn't be using my time wisely, correct?
Starter
The park workers are democrats?
HOFer
NO! You'd pay tax on the income ABOVE $8450 at 10% to start, therefore you'd keep 90 cents for every dollar you earned in federal taxes. Even when you "bump" into another tax bracket, it NEVER makes sense to not earn every dollar you can earn. Never stop earning money, instead structure your life on how to minimize taxes.
Take the extra money and funnel it into a retirement package and you STILL pay no tax. You don't get the money until you retire, but you need to start building retirement savings anyhow. Earn every single nickel you can this summer.
No, but all this damn money I am being taxed is being pissed away by government programs that if they were outsourced to a landscaping company in each county could be done in half the time and for half the price, since that company is looking to turn profit, versus the county workers which are unionized and non-profit. It's a load of crap is what it is. My roomate, for example, is working for the county up north as an assistant civil engineer, and he is getting a fat paycheck every week to do virtually nothing. He even agrees a much better use of money would be to pay a profit-seeking company to get the job done in a third of the time for a third of the money.The park workers are democrats?
edit - This topic will NOT shift into a political debate. That will be the end of any political notion. I apologize for taking what could be considered a cheap shot.
HOFer
You just became a conservative.... May I be the first to welcome you.
Alright, that makes sense. I have my company currently taking the max amount out of my paycheck that they will match for the 401k. I have to talk to someone though and figure out how to access this. It's certainly not much, but atleast it is almost what they take out for social security, so it works I suppose. By the end of summer it may only be a few hundred bucks, but I suppose that is better than nothing. Are there rules about yanking that money out if necessary? I am thinking about getting it into something that can gain some interest rather than just having it sit and do nothing.NO! You'd pay tax on the income ABOVE $8450 at 10% to start, therefore you'd keep 90 cents for every dollar you earned in federal taxes. Even when you "bump" into another tax bracket, it NEVER makes sense to not earn every dollar you can earn. Never stop earning money, instead structure your life on how to minimize taxes.
Take the extra money and funnel it into a retirement package and you STILL pay no tax. You don't get the money until you retire, but you need to start building retirement savings anyhow. Earn every single nickel you can this summer.
Starter
imagine this in Darth Vader's voice and its kinda funny.
You just became a conservative.... May I be the first to welcome you.
Knock it off. NOW!!!
I realize this is my own doing for bringing that up to begin with. It was a mistake. I am not going to edit that. But it ends now. No more politics in this thread. This is really useful stuff that I do not want corrupted by a political debate.
We can create a seperate thread for that if thats what we want.
Rush Limbaugh says to invest heavily in small banks because democrats are just lazy fools who hang out like bums in parks.
Maybe if you use ALL CAPS and bold it, someone will listen. Lighten up Partial. Even money matters need some comedy.
"You're all very smart, and I'm very dumb." - Partial
Partial it doesn't matter if you vote republican or democrat, your money gets pissed away.
Join me in my milita, and we will put an end to big government.
How much does your average salary increase per year? I asked my mom this and she said 3% is pretty standard when there is no promotion or raise or anything. Any thoughts?
right now it is about 2.7% standard.
Does that cap off? Assuming an engineer starts at 50,000, gets his MBA and jumps to 75,000 after 8 years, if you worked for like 37 years when all is said and done you'll be making approximately 174,300.30 at 3% salary increase per year. That just seems outrageously high to me for anyone
Well, 37 years ago (1969) I thought I would be quite well-off if I could make $10,000-$15,000 per year. At the time, I believe I was working for $.95 per hour. I was excited when it went above a dollar.
I suspect that by 2045 you will look back at your starting salary and chuckle about how well you did with so little money!
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