please help ... widow's porfolio
- Thread starter qbkatran
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The rate's the same no matter where you buy them. Buy the paper ones ($30k/year max) at YOUR bank so you get better service when you want to redeem them. Buy the other $30k/year electonic ones on-line. If you want more than that- buy them jointly with your daughters- IF you trust them (co-owners can redeem them without the OTHER co-owners' permission).
Ed_The_Gypsy
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Hi, qbkatran.
Very sad about your loss.
You might consider not making any big financial decisions (including big purchases) for a year. Stick it in the bank, do your homework and concentrate on recovering. I have seen this advice given to others who are going through traumatic transitions and it sounds pretty good to me.
Best of luck.
Ed
Very sad about your loss.
You might consider not making any big financial decisions (including big purchases) for a year. Stick it in the bank, do your homework and concentrate on recovering. I have seen this advice given to others who are going through traumatic transitions and it sounds pretty good to me.
Best of luck.
Ed
Thanks Ed,Actually I don't want to make any financial decision but I think I have to because of the life insurance comes in, the transition of the 401K, college tuition, the house, bills...etc.. I want to be able to handle financial so that my daughters can finish school without worry. I got a lot of information from this board. The bank rate is the best, I have moved some of my money there. I bought both quicken and ms money and therefore have an idea of my networth. The thing is the more I read, it gets confusing. I was about to go by bonds, I read some more and now I think I should stick with CD. Last Friday my co-worker helps me to get out of the losing stocks that my DH had for years. In case I am out of the job and have to ER, I need to do something, and learning to manage my portfolio will be helpful. I am thanksful for this website, thanks for the advises and for those who keep the server running. I read these posts every hour (because I don't have a life) , I canceled the appointment to see the finance advisor, ...because I can get free, good, honest opinion from here. Thanks again for all of your good hearts.. Keep on posting.
Spanky
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Those were the good old days that kids did not expect a big handout from parents bacause they realized it was difficult to earn money. We kids went to J.C. (then or community college - now) for the first two years of college and transferred to a public university, i.e., Cal State or U of Cal, to complete the degree.DOG50 said:
Spanky
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qbkatran,
Your financial situation is fine: $1 MIL + $80K income as a programmer and the house is paid for. Encourage your kids to attend comminity college, to transfer to a public university and to stay home. This will save a lot of money. One of my relative's son is doing that in Hayward, CA. He goes to Lake Chabot College which is 2 miles away from their home and plans to attend Cal State University at Hayward. The total cost of college will be very affordable.
Your financial situation is fine: $1 MIL + $80K income as a programmer and the house is paid for. Encourage your kids to attend comminity college, to transfer to a public university and to stay home. This will save a lot of money. One of my relative's son is doing that in Hayward, CA. He goes to Lake Chabot College which is 2 miles away from their home and plans to attend Cal State University at Hayward. The total cost of college will be very affordable.
unclemick
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Hmmm
Two years JC plus two years UW(Seattle). Worked for me in the 60's - guess it still does.
Two years JC plus two years UW(Seattle). Worked for me in the 60's - guess it still does.
OldAgePensioner
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Spanky,
Excellent advise on first going to CC or Jr Col, it's a lot less expensive and you'll know whether you can make the leap to UC colleges. And hey, unclemick2 is proof.
Choosing the right degree is also important. Some lead to good jobs, some don't.
Excellent advise on first going to CC or Jr Col, it's a lot less expensive and you'll know whether you can make the leap to UC colleges. And hey, unclemick2 is proof.
Choosing the right degree is also important. Some lead to good jobs, some don't.
JPatrick
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Really not much I can add to the good advice already posted.
I do think the key points are this:
* Don't do anything quickly except find a good MM to park your money. The I-Bonds are a great idea and one you could pursue right away. A little tip on those. If you can, buy them on the last business day of the month. They will start earning from the first..
*Do what you are doing now- - learn - learn - learn with the goal to be your own financial planner. I know there are some good ones out there, but I have yet to see a 100% happy story.
Many subjects have been covered here, from insurance to college. Prioritize them and become and expert in one at a time. Baby steps will get you there.
I am sorry for your loss. Whatever comfort it may be, I think you are in very good shape financially.
I do think the key points are this:
* Don't do anything quickly except find a good MM to park your money. The I-Bonds are a great idea and one you could pursue right away. A little tip on those. If you can, buy them on the last business day of the month. They will start earning from the first..
*Do what you are doing now- - learn - learn - learn with the goal to be your own financial planner. I know there are some good ones out there, but I have yet to see a 100% happy story.
Many subjects have been covered here, from insurance to college. Prioritize them and become and expert in one at a time. Baby steps will get you there.
I am sorry for your loss. Whatever comfort it may be, I think you are in very good shape financially.
It's funny, I think we all think the same because we're from the same generation. I have talked to both of my daughters for many years (since they're in junior high and high school) about JC but not sucessful. I myself went to JC and finished at Texas A&M prior to come to CA. But, like their dads, they're very competitive, they're both valecdictorian in high school and now are at the UC. They think spending time in the JC will make them less competive (??), and if I am unable to afford the it, they'll find the way themselves. The younger one will have some scholarship for the 1st year and borrow some. In the beginning I like to put them in my account and together we manage the finance together. But they're only interested to know if I can help them, and how much, so that they can plan their lives. They don't put the gun to my head and ask for money, I help them before I want to and I still can. I love them more than my life, and the reason to learn about financial is that I want to generate money with money (if possible) so I can help more. And fortunately with thid board, I hope that I don't make many mistakes during my learning period. Thanks for everthing.
??), and if I am unable to afford the it, they'll find the way themselves. The younger one will have some scholarship for the 1st year and borrow some. In the beginning I like to put them in my account and together we manage the finance together. But they're only interested to know if I can help them, and how much, so that they can plan their lives. They don't put the gun to my head and ask for money, I help them before I want to and I still can. I love them more than my life, and the reason to learn about financial is that I want to generate money with money (if possible) so I can help more. And fortunately with thid board, I hope that I don't make many mistakes during my learning period. Thanks for everthing.OldAgePensioner
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Another important factor. The college major is extremely important to the rest of their lives. Some earn money, some make you happy. Somewhere there is a major that does both.
JPatrick
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qbkatran said:It's funny, I think we all think the same because we're from the same generation. I have talked to both of my daughters for many years (since they're in junior high and high school) about JC but not sucessful. I myself went to JC and finished at Texas A&M prior to come to CA. But, like their dads, they're very competitive, they're both valecdictorian in high school and now are at the UC. They think spending time in the JC will make them less competive (
There is something to that "less competitive thought"
JC's and "lesser" 4 year colleges may be just fine depending on the goal, but I have found (at least in some states) that a fair amount of "dumbing down " has occured in some of the second tier schools. My son went to a hometown 4 year school so he be near his home base and he quickly found that the courses (premed) were easier than the AP courses he took in high school. He correctly figured he might have an uphill battle getting in and surviving med school if he hung around ther so he got out after one year and went to your school (A&M) whoop! The difference was night and day. The decision to get into a top flight program was key in the success he has had.
In my mind, the definition of a great school is "one that will get you to where you are going in the most efficient manner possible" The hard part for us parents is figuring which school that is. It may be a JC or a tech school or something else. One size never fits all.
You just said exactly what they said to me. They're also want to be pre-med, and they think the med admission committee take into consideration of what school they go to as undergraduate. They have tons of AP classes so they can easily finish in 3 years for a degree.... but with the pre-med requirements, they'll have more credits than they need. I think with or without my help, they will finish school... I like to help if I can.... It's good to know we should buy i-bonds at the end of the month. I also have a house that I can't live in because it has too much memory, I am thinking about selling it but my kids want me to wait a year before making that's decision. So I might just rent it out first. The thing is if I do it immediately I can still file a joint return this year and therefore have 500K exemption on the gain, If I wait when I claim single then I can claim 250K. Should I? or should I not? I will be moving and stay with older sister who is a single parent with a teenager, that way I pay less for my rent and get profit from my house. Material things does not seem to mean much to me, so my cost of living will be a lot less. I guess I will do that and keep most of my money in CD and MM until I know more. How about the money in my 401K? and IRA? the MM in there pay very little, what type of mutual funds do you think I should be in?
JPatrick
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quote author=qbkatran link=topic=3300.msg56294#msg56294 date=1120422324]
You just said exactly what they said to me. They're also want to be pre-med, and they think the med admission committee take into consideration of what school they go to as undergraduate.
Ah yes med school. It is a little complicated. They probably do look at the name of the school. I believe though there are hundreds of 4 year state and private schools that can get you there. The big three criteria I think.
* GPA and the sub GPA from core science (both from a decent school)
*MCAT score Did your school get you to where you could do well on the MCAT??
*Life experiences in the medical field.
* not among the big three, but can you give a super interview?
I'm betting you guys have been here, but if not, check out the studnt doc site http://forums.studentdoctor.net
Keep in mind, a lot of the stuff posted is bogus (in an innocent sense) but if you work at it the site is a goldmine.
You just said exactly what they said to me. They're also want to be pre-med, and they think the med admission committee take into consideration of what school they go to as undergraduate. Ah yes med school. It is a little complicated. They probably do look at the name of the school. I believe though there are hundreds of 4 year state and private schools that can get you there. The big three criteria I think.
* GPA and the sub GPA from core science (both from a decent school)
*MCAT score Did your school get you to where you could do well on the MCAT??
*Life experiences in the medical field.
* not among the big three, but can you give a super interview?
I'm betting you guys have been here, but if not, check out the studnt doc site http://forums.studentdoctor.net
Keep in mind, a lot of the stuff posted is bogus (in an innocent sense) but if you work at it the site is a goldmine.
KB
Thinks s/he gets paid by the post
qbkatran,
If you don't feel you can live in the house because of sentimental reasons, it makes sense to sell and get the 500K capitol gains exclusion while filing married. You could speak with a tax expert about the rules before you make the decision. It might not matter though, maybe the 250K as a single person would be enough.
Good luck, you're in a huge transition phase and I'm so sorry about your loss.
Your girls sound very motivated, they should be great successes with that drive..
If you don't feel you can live in the house because of sentimental reasons, it makes sense to sell and get the 500K capitol gains exclusion while filing married. You could speak with a tax expert about the rules before you make the decision. It might not matter though, maybe the 250K as a single person would be enough.
Good luck, you're in a huge transition phase and I'm so sorry about your loss.
Your girls sound very motivated, they should be great successes with that drive..
anonimitycity
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Hello. Please excuse any oversights on my part as this is a first time post for me (greetings community, I really enjoy this site) and I'm no Warren Buffet.
qbkatran, I'm so very sorry for your loss. I haven't comprehesively read every post but have skipped in and out of the thread. I also lost my spouse unexpectedly within the past year. Its what led me to this site. Our situations are very similar, though my 2 kids and I are a bit younger. I wish I could neatly summarize what you should do, but I've been stumbling through the maze myself (I did hire a fee only planner). One thing I don't think I saw discussed were the ins and outs of you're spouses 401k and pension (again excuse me if this was discussed already, as I'm sure qbkatran will attest part of greiving over such a loss is inability to focus and lack of attention, as if I wasn't bad enough already). In my spouses case a lump sum death payout was available in place of future pension obligations (I don't know if his employer has that or even if you'd be interested; I believe its a taxable event). Also, with regard to his 401k; if you decide to pull it out of his plan be very careful on how you go about it. Unless the check is made out properly (rollover to an IRA), you could get hammered with big taxes and a penalty. Consult with a pro.
Best of luck with everything.
qbkatran, I'm so very sorry for your loss. I haven't comprehesively read every post but have skipped in and out of the thread. I also lost my spouse unexpectedly within the past year. Its what led me to this site. Our situations are very similar, though my 2 kids and I are a bit younger. I wish I could neatly summarize what you should do, but I've been stumbling through the maze myself (I did hire a fee only planner). One thing I don't think I saw discussed were the ins and outs of you're spouses 401k and pension (again excuse me if this was discussed already, as I'm sure qbkatran will attest part of greiving over such a loss is inability to focus and lack of attention, as if I wasn't bad enough already). In my spouses case a lump sum death payout was available in place of future pension obligations (I don't know if his employer has that or even if you'd be interested; I believe its a taxable event). Also, with regard to his 401k; if you decide to pull it out of his plan be very careful on how you go about it. Unless the check is made out properly (rollover to an IRA), you could get hammered with big taxes and a penalty. Consult with a pro.
Best of luck with everything.
anonimitycity
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Months and months of silently lurking, then 2 posts in 15 min.... I forgot to add this (did I say I was forgetful to?)... http://money.cnn.com/2005/02/11/pf/magpl_suddenly_0503/index.htm.
Hi anonimitycity,
I am sorry about your loss and thanks for the CNN article. It's very interesting. I guess I consider myself a little bit more prepared than the person in the article. During our mariage, I actually the one who pay the bills and plan the vacation, I just never have to worry much about it, my DH only takes care of the 401K and IRA. You mentioned the spousal 401K, I met with his HR and they told me I can withdraw it without irs penalty but I'll have to pay tax on it. I decided to leave it at the same place for at least 4 years until my youngest graduated from college, then I may roll it to the IRA. If I roll to IRA then I'll have to wait until I am 59 1/2 to withdraw without the penalty but I will have more funds/more flexibility with that chunk of money. His company does not have a pension, so I don't have to worry about that. I am still working so I still have medical insurance for myself and my daughters. But of course, we have to adjust life to live on one salary, no more fancy vacation, shopping...etc... We still go out to eat when they come visit me or vice versa. I have decided to rent my house out for now, it's probably a bad decision but somehow I am scared to sell it, and there is just so much memory to stay in it. I like this site because AARP and widownet.com makes me week and I need to learn to be stronger. I will follow somebody in the previous post who advises be conservative to keep the principal. I guess you never know what life will throw at you, so I live one day at the time, trying to keep thing simple and I'll deal with the layoff when it comes. It's amazing that when it's time of need, there are strangers from nowhere that you can depend on. I have leaned on my co-workers, my sisters and brothers, my daughters, this board and others. My life have changed and I hope in the future I can give as much as I take. You're not alone in this long hard road, hang in there and we're be ok.
I am sorry about your loss and thanks for the CNN article. It's very interesting. I guess I consider myself a little bit more prepared than the person in the article. During our mariage, I actually the one who pay the bills and plan the vacation, I just never have to worry much about it, my DH only takes care of the 401K and IRA. You mentioned the spousal 401K, I met with his HR and they told me I can withdraw it without irs penalty but I'll have to pay tax on it. I decided to leave it at the same place for at least 4 years until my youngest graduated from college, then I may roll it to the IRA. If I roll to IRA then I'll have to wait until I am 59 1/2 to withdraw without the penalty but I will have more funds/more flexibility with that chunk of money. His company does not have a pension, so I don't have to worry about that. I am still working so I still have medical insurance for myself and my daughters. But of course, we have to adjust life to live on one salary, no more fancy vacation, shopping...etc... We still go out to eat when they come visit me or vice versa. I have decided to rent my house out for now, it's probably a bad decision but somehow I am scared to sell it, and there is just so much memory to stay in it. I like this site because AARP and widownet.com makes me week and I need to learn to be stronger. I will follow somebody in the previous post who advises be conservative to keep the principal. I guess you never know what life will throw at you, so I live one day at the time, trying to keep thing simple and I'll deal with the layoff when it comes. It's amazing that when it's time of need, there are strangers from nowhere that you can depend on. I have leaned on my co-workers, my sisters and brothers, my daughters, this board and others. My life have changed and I hope in the future I can give as much as I take. You're not alone in this long hard road, hang in there and we're be ok.
JPatrick
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QUOTE: You mentioned the spousal 401K, I met with his HR and they told me I can withdraw it without irs penalty but I'll have to pay tax on it. I decided to leave it at the same place for at least 4 years until my youngest graduated from college, then I may roll it to the IRA. If I roll to IRA then I'll have to wait until I am 59 1/2 to withdraw without the penalty but I will have more funds/more flexibility with that chunk of money. QUOTE:
I'm quite sure you can withdraw IRA funds before 59 1/2 without penalty. Probably on the IRS website. Be certain you have a good understanding of what the 401K is doing for and with your money. What is it invested in and what kind of fees are involved.
I'm not sure what others would say, but I generally believe it is much better to rollover 401K funds into an IRA whenever you have that option. Done properly you'll have greater control nd much smaller fees.
I'm quite sure you can withdraw IRA funds before 59 1/2 without penalty. Probably on the IRS website. Be certain you have a good understanding of what the 401K is doing for and with your money. What is it invested in and what kind of fees are involved.
I'm not sure what others would say, but I generally believe it is much better to rollover 401K funds into an IRA whenever you have that option. Done properly you'll have greater control nd much smaller fees.
Mr._johngalt
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Art said:
I almost started to draw on my IRA last week. Then I discovered
there was a CHANCE that I would be slightly over the threshold
requiring payment of a small amount of fed. income tax this year. Thus, I am
still holding off, 12 years after I expected to start drawing it down.
Nice
JG
Spanky
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qbkatran,
I have two nephews who think that JC is for dummies. I think it is a misconception. Competition is good for the school and potenital employers. The school would be able to maintain its reputation and employers would have plenty of competitive students from which to choose. However, is it good for the students? They have to worker harder against the brightest. An excellent student may only be mediocre by comparision in a highly competitive school. The same student may become a star in a lesser known school and receive excellent reconmendations for medical schools. His/her chance of getting into professional or graduate school is greatly enhanced.
The idea that the reputation of the school may play a major role in professional program admission is misguided. It may some significance but not the degree that one might think.
My brother is an internist and my cousin is a gynecologist. They do not recomend their kids to get into medicine because of the long hours and hard work - though the money and status are great. They may have a point. We should pursue a career that we enjoy doing at least some of the time.
Good luck.
I have two nephews who think that JC is for dummies. I think it is a misconception. Competition is good for the school and potenital employers. The school would be able to maintain its reputation and employers would have plenty of competitive students from which to choose. However, is it good for the students? They have to worker harder against the brightest. An excellent student may only be mediocre by comparision in a highly competitive school. The same student may become a star in a lesser known school and receive excellent reconmendations for medical schools. His/her chance of getting into professional or graduate school is greatly enhanced.
The idea that the reputation of the school may play a major role in professional program admission is misguided. It may some significance but not the degree that one might think.
My brother is an internist and my cousin is a gynecologist. They do not recomend their kids to get into medicine because of the long hours and hard work - though the money and status are great. They may have a point. We should pursue a career that we enjoy doing at least some of the time.
Good luck.
Spanky, I agreed with you completely... I am in IS and there are time being a mom, wife and good worker is too much for me. When my kids were younger I thought they were the reason I did not get promoted. Now that I am older and wiser, I only want them to be happy, no matter what type of job they do.
The problem is now in the US ( I am from VN but I have been here for 30 years), I don't think parent have any thing to say about the kid's career. We had the talk with our kids several times and they always told us that they'll pursue their dreams with or without our help. We both in IS, I don't know why they're interested in medicine, I think it's the high school and the crowd they hang out with. But it's a long way off and you don't even know what life throws at you tomorrow, so I don't have the energy to argue any more. That's another reason for me to ER, because I'll have to help them to raise their kids. I am not greedy, but I can ER if my porfolio just grow 10% per year... haha.... Thanks for your wisdom.
You should give some thought to moving out of state. By leaving California you can reduce living expences by up to 35%. Realtor.com has a living calculator that alows you to compare different cities. Your financial condition seems OK but you will still need to live on a budget, as you still need to save to offset inflation. Do your homework and be frugal and you will be fine.
