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Paying for Wedding
Old 04-14-2018, 10:05 AM   #1
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Paying for Wedding

Hello Folks. Have a wedding to pay for this summer for our Daughter. It seems we may be short about 3 to 5k. We do have the difference in a taxable stock and bond account or breaking a PenFed 5yr. CD that has a value of 13k. The CD has a maturity date at end of 2018. While it will cost me about 360 dollars in forfeiture to break CD, it will cost me 0% to sell some stock because I am in the 12% fed bracket. While I'm not too crazy about selling stock, I am also not too crazy about blowing up a 13k CD.....
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Old 04-14-2018, 10:10 AM   #2
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Is there a question in there? 3rd option is to reduce the budget. If that's not really an option, the obvious pick of the two you present is to sell the stock.
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Old 04-14-2018, 11:25 AM   #3
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If you're paying for it, don't you get to decide what it will cost?
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Old 04-14-2018, 01:10 PM   #4
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when my daughter got married I told her how much I was giving her for the wedding. If it cost more, it was up to the two of them to pay the difference. If it was less, they can keep the difference.
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Old 04-14-2018, 01:15 PM   #5
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Cancel the plans and buy two tickets to Las Vegas.
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Old 04-14-2018, 01:17 PM   #6
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Put the $3 - $5K on a credit card.
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Old 04-14-2018, 01:18 PM   #7
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Put the $3 - $5K on a credit card.
I'm not doing the math, but I think $3-5k on a credit card for 4-5 months will exceed the $360 he's hoping to retain from not cashing in the CD early.
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Old 04-14-2018, 01:22 PM   #8
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I'm not doing the math, but I think $3-5k on a credit card for 4-5 months will exceed the $360 he's hoping to retain from not cashing in the CD early.
Just giving him an option. Maybe put the extra charges on his DD's card?
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Old 04-14-2018, 01:24 PM   #9
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Is there a question in there? 3rd option is to reduce the budget. If that's not really an option, the obvious pick of the two you present is to sell the stock.
I think you are right...sell the stock.
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Sell the Stock!
Old 04-14-2018, 01:38 PM   #10
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Sell the Stock!

"because I am in the 12% fed bracket"

Sweet that you are in the 12% bracket. We are in the 24% bracket in 2018 and I feel lucky for that. Sell the stock! (my opinion). How much is this wedding costing you total? Curious!
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Old 04-14-2018, 01:57 PM   #11
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Cancel the plans and buy two tickets to Las Vegas.
And we have a winner!
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Old 04-14-2018, 02:35 PM   #12
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Old 04-14-2018, 09:04 PM   #13
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Charge $5,000 wedding cost on a 2% rewards credit card, like my Citi Cash Back card.. Then transfer the balance to another credit card that allows no interest on balance transfers for up to a year, usually for a 2% flat fee. Then, when the CD matures pay off the credit card.
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Old 04-14-2018, 09:38 PM   #14
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Ask PenFed if they will make you a loan against the CD. It's sometimes called a "Share Loan". Typically this is an interest only loan using the CD as collateral, with a rate between 1.5% and 3% above the CD rate. So if you borrow 5k for 8 mos at 3% over the CD rate, it would cost you $100 instead of $360 for an early WD penalty. At maturity you repay the loan from the CD proceeds.
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Old 04-15-2018, 08:11 AM   #15
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Ask PenFed if they will make you a loan against the CD. It's sometimes called a "Share Loan".
That's a very old school credit union thing; I remember taking one sometime in the 90s. Didn't know they still did it.
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Old 04-15-2018, 08:42 AM   #16
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I thought this was a serious web site
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Old 04-15-2018, 08:43 AM   #17
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If it were me, I would apply for one of the many zero percent credit cards I get offers for and use that - zero cost and you can pay it off 12-18 months later. While it doesn’t necessarily cost anything to sell a stock, you are giving up the opportunity cost. Who knows what the stock will do over the next 12-18 months, but I’d rather use OPM (other people’s money) if I can do it for free and stay fully invested. Then sometime when it’s a good time before the payment is due on the zero % card, you can sell the stock and hopefully you will have made something.
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Old 04-15-2018, 10:52 AM   #18
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Originally Posted by pb4uski View Post
Charge $5,000 wedding cost on a 2% rewards credit card, like my Citi Cash Back card.. Then transfer the balance to another credit card that allows no interest on balance transfers for up to a year, usually for a 2% flat fee. Then, when the CD matures pay off the credit card.
OP, I think you have your answer. Pb4uski wants you to put on his credit card.
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Old 04-15-2018, 01:54 PM   #19
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"because I am in the 12% fed bracket"

Sweet that you are in the 12% bracket. We are in the 24% bracket in 2018 and I feel lucky for that. Sell the stock! (my opinion). How much is this wedding costing you total? Curious!
Well, we are transplanted Chicagoans now living in Northwest Indiana. Daughter and future husband are in Chicago but that is out because way to expensive. We are paying so we are having it down here. Lots of real nice venues out this way for half the price. Anyway from soup to nuts we are in the neighborhood of 25k. Of course that is including a wedding shower, the reception, and other odds and ends. The guest list is about 275. So not so bad...I guess.
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Old 04-15-2018, 01:55 PM   #20
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Charge $5,000 wedding cost on a 2% rewards credit card, like my Citi Cash Back card.. Then transfer the balance to another credit card that allows no interest on balance transfers for up to a year, usually for a 2% flat fee. Then, when the CD matures pay off the credit card.
Nice.
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