Money and Finance

[underjoyed]

Can anyone on this thread translate from Canadian to American? Or else explain to me exactly what a 401K is? (Or, better yet, pretend I'm three-years-old and then explain it.) In a few months I will be starting a new, long-term job here in NYC and I need to know a bit more about the whole US system (I've pretty much got a handle on the Canadian and UK system). A 401K is, I think, a pension plan to which you contribute and your employer (possibly) contributes, yes? So I gather it's not like a Registered Retirement Savings Plan (RRSP) in Canada, where you are allowed to buy a certain amounts worth depending on how much you earn. What should I be looking for from an employer in terms of a 401K? Thanks in advance to anyone who can shed light on this.

[topher]

A 401K is a defined retirement plan. You contribute to the fund by having money taken out of your check BEFORE they calculate and take out the taxes.

Usually there are 5-6 mutual funds choices to put your money in;
a money market, gov't bond fund, large cap stock, mid caps, small caps and an international fund. You must select what % of what money goes into fund. Watch out for the % that the fund takes out as a management fee. You might have two funds that look the same but the fee could be quite different.

You can't take money out w/o penalty until 72, I think. You can take a loan against the money in a 401k.

[magazinewhore]

Does anyone have any experience with budgetary software? I'm looking to actually start keeping track of my spending, etc. The cheaper the better.

[petals]

I have a quick question, and maybe it should go into the House and Home thread, I don't know.

How much should you put down when you buy a house? And how much are closing costs, usually? Just an average number would be nice. Thanks.

[topher]

If you put down less than 20% then you will pay PMI. Basically paying insurance for the holder of your mortgage if you default. I put <5% on my first home.


Closing costs vary. I have paid $0 and have paid $500.

MW, I have never used it but Money has a budget program built in.

[petals]

Thanks, Topher. Hubby and I have been thinking about getting a house but we've been very nervous about the amount of money needed to even get started. Your post makes me feel a liitle better.

[topher]

petals said:

Thanks, Topher. Hubby and I have been thinking about getting a house but we've been very nervous about the amount of money needed to even get started. Your post makes me feel a liitle better.

Just be careful when choosing the mortgage broker. DO NOT work from a payment number and work you way back to a mortgage.
IMO, I love the 30 year mortage but I am really conservative plus with rising short term reates makes ARM really risky for people who don't have a cushion to pay a higher mortgage if rates continue to rise.

[Deleted]

I am really angry.

This evening I was taking a close look at my most recent MasterCard bill. I was attaching the receipts to the paperwork, double checking each charge when I was amazed to see an additional charge at the bottom of the list.

Now I'm one of those people who pays off the card every month. Even though they keep shifting the date that the payment is due, I try to keep close track and if I think the payment will be late, I use the post office overnight tracking to avoid paying a finance charge and a late charge. Those charges are just money down the drain and it's cheaper to use overnight postage to avoid them.

Imagine my surprise tonight when I examined this most recent bill to discover that they claim that they received my most recent payment TWELVE DAYS after I sent it!!!!! TWELVE FREAKING DAYS! Keep in mind that I always mail the payment directly at the post office (inside, not in the box) to make sure that it is handled as quickly as possible. I simply do not think this is possible.

I have been taking great care to protect my credit rating by making sure that my payments get there on time and NOW THIS!

I just do NOT believe that it took this long for the payment to be processed.

Has anyone else had a simliar experience?

[Auroranorth]

magazinewhore said:

Does anyone have any experience with budgetary software? I'm looking to actually start keeping track of my spending, etc. The cheaper the better.

The best and cheapest tracking device I ever used was a small notepad and pen where I wrote down everything I spent for a month. I also save receipts in a folder so if I need to return things I have the receipt. It sounds simplistic, but it really works. Do be honest with yourself- don't not write down your daily Starbucks hit and pretend it doesn't count.

[splendagirl]

Miss Marple. Let me just say, I am very impressed with you. The idea of keeping all reciepts and double checking. I wish we could be so organized. Instead, we follow the method of "if it looks like or reminds us of a product that we could have/possibly/may have purchased... then the bill is correct."

Postman delivered too late. Grrr. You could always call the card and complain (assuming that there is some nasty interest attached) and more than likely they will remove the charges (reflecting on your good payment history).