Anonymous wrote:OP here - I am super happy with the debt snowball / debt payoff calculator that I used now after this post. It's a total win/win.

I am embarrassed about the subject line now - LOL. But worth it to continue to get my act together step by step.

Great outcome--thanks for letting us know!

OP here - I am super happy with the debt snowball / debt payoff calculator that I used now after this post. It's a total win/win.

I am embarrassed about the subject line now - LOL. But worth it to continue to get my act together step by step.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:OK i was having some issues with caches and DCUM (and Instagram) wouldn't load on my computer for a day there. But I had some space to think about things!

I finally put the stuff in a debt payoff calculator and came up with a plan I happy with and that seems to be a win / win so there's that.

Two - interesting point here to consider the rate of returns but also factoring in taxes. I am guessing my tax rate is appx. 30%. So when thinking about my HYS, if it's 4.3%, so I really consider that it's only 70% of that - 3.01%? Is that the correct way to look at it, or no?

I still don't have a porch but I have some more of a plan. I am on a new personal finance journey.

“Start Where You Are. Use What You Have. Do What You Can.”

For interest in savings account, yes, the tax would take about 30% of the return.

But in a 529, growth and dividends grow tax-free. And in a taxable account, dividends and capital gains are taxed at a lower rate than ordinary income.

You could also do some ibonds which grow tax-free, adjust with inflation, and, if used for education are not taxed.

Isn’t there an income limit for tax free i bonds?

All ibonds are state and local tax free, but the interest is federally taxed at maturity/when cashed in. There is an income limit for having tax-free use for education--I don't remember what it is.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:OK i was having some issues with caches and DCUM (and Instagram) wouldn't load on my computer for a day there. But I had some space to think about things!

I finally put the stuff in a debt payoff calculator and came up with a plan I happy with and that seems to be a win / win so there's that.

Two - interesting point here to consider the rate of returns but also factoring in taxes. I am guessing my tax rate is appx. 30%. So when thinking about my HYS, if it's 4.3%, so I really consider that it's only 70% of that - 3.01%? Is that the correct way to look at it, or no?

I still don't have a porch but I have some more of a plan. I am on a new personal finance journey.

“Start Where You Are. Use What You Have. Do What You Can.”

For interest in savings account, yes, the tax would take about 30% of the return.

But in a 529, growth and dividends grow tax-free. And in a taxable account, dividends and capital gains are taxed at a lower rate than ordinary income.

You could also do some ibonds which grow tax-free, adjust with inflation, and, if used for education are not taxed.

Isn’t there an income limit for tax free i bonds?

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:If a porch will greatly enhance your daily quality of life, do it!

We just bought a car with cash (instead of taking a loan) so we have less savings to list on college financial aid forms.

Don't listen to this troll.

I feel like I have given up hope on qualifying for financial aid...

If you can afford to pay cash for cars, you can afford college. They will look at your income and think why didn't they save?

Anonymous wrote:

Anonymous wrote:OK i was having some issues with caches and DCUM (and Instagram) wouldn't load on my computer for a day there. But I had some space to think about things!

I finally put the stuff in a debt payoff calculator and came up with a plan I happy with and that seems to be a win / win so there's that.

Two - interesting point here to consider the rate of returns but also factoring in taxes. I am guessing my tax rate is appx. 30%. So when thinking about my HYS, if it's 4.3%, so I really consider that it's only 70% of that - 3.01%? Is that the correct way to look at it, or no?

I still don't have a porch but I have some more of a plan. I am on a new personal finance journey.

“Start Where You Are. Use What You Have. Do What You Can.”

For interest in savings account, yes, the tax would take about 30% of the return.

But in a 529, growth and dividends grow tax-free. And in a taxable account, dividends and capital gains are taxed at a lower rate than ordinary income.

You could also do some ibonds which grow tax-free, adjust with inflation, and, if used for education are not taxed.

Anonymous wrote:OK i was having some issues with caches and DCUM (and Instagram) wouldn't load on my computer for a day there. But I had some space to think about things!

I finally put the stuff in a debt payoff calculator and came up with a plan I happy with and that seems to be a win / win so there's that.

Two - interesting point here to consider the rate of returns but also factoring in taxes. I am guessing my tax rate is appx. 30%. So when thinking about my HYS, if it's 4.3%, so I really consider that it's only 70% of that - 3.01%? Is that the correct way to look at it, or no?

I still don't have a porch but I have some more of a plan. I am on a new personal finance journey.

“Start Where You Are. Use What You Have. Do What You Can.”

For interest in savings account, yes, the tax would take about 30% of the return.

But in a 529, growth and dividends grow tax-free. And in a taxable account, dividends and capital gains are taxed at a lower rate than ordinary income.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:If a porch will greatly enhance your daily quality of life, do it!

We just bought a car with cash (instead of taking a loan) so we have less savings to list on college financial aid forms.

Don't listen to this troll.

I feel like I have given up hope on qualifying for financial aid...

Gather up all your financial information and run the Net price calculator at schools of interest--every school has one on their website. If you enter accurate financial information they are accurate. Then look to see if they are a school that meets full need and if they have any information on what percentage is loans. Schools vary, but you will find out with quite a bit of clarity whether or not you are likely to receive aid and how much. Sure you don't know what your income will be many years in advance, but at least it shows you roughly where you are at. All of the first year aid is based on your Prior, prior year income (so Sophomore spring to Junior fall), though some schools also request Prior year (and the following years are based on subsequent years) so don't think you can game it too much by reducing income for one year. Many of the people who are doing things like buying new cars and screened porches with cash may have incomes and other assets that are too high to qualify for financial aid anyway. FAFSA is less important than the schools--so go to their NPCs.