Hot answers tagged

174

If I had a legitimate reason to give to you $100,000 with a $500 fee, I would ask you if it is okay to take the $500 out of the $100,000, and if you agree, I'd pay you $99,500 without any cost for you. Someone who wants to give you money doesn't ask for fees, they just deduct any cost from the money they give you. Same for lotteries, inheritances, tax ...


83

The simple answer is that their underwriting models show that customers with higher credit scores are less expensive to insure. The general argument is that credit score is a reasonable proxy for responsibility, not wealth. Someone that religiously pays their bills on time is likely to be quick to address small maintenance issues rather than letting them ...


81

Have her talk to her bank and ask if they have programs designed for people like her. If they aren't any help, consider switching to a bank with more of a customer-health focus. Many banks and credit unions have specific programs for people like her, to allow them to build credit with less risk (both for the bank and for her). Also, many financial ...


63

Congratulations on an amazing rise on salary. Please pat yourself on the back for such an accomplishment. The best thing you can do is to hire a competent tax specialist. Here in the US, it is typically an accountant and they would tell you that there is not much they can do. Maximizing tax favored retirement accounts is about the best one can get away ...


61

However, my marginal tax rate jumps up by 5.5%, which is not minuscule. Although it is true that your marginal tax rate jumps as you go up in income to the next bracket, your effective tax rate, which is found by dividing your total tax by your total income, does not jump. It is a gradual transition as you go up in income. For example, in the Canadian ...


47

According to the OSAP website you will not be charged interest until 6 months after you graduate for the Ontario portion of your loans (Canada portion accrues interest immediately after graduation). The loans are interest and payment free while enrolled full-time. That means for the next year you could earn interest on your savings and have extra cushion at ...


44

I am neither Canadian, a lawyer nor a tax-adviser. This is neither tax- nor legal-advice. TL;DR: As far as Income Tax is concerned, it is very likely that there will be nothing to pay. You will, however, almost certainly have to pay Provincial Sales Tax (PST) (at probably 12% of the "fair market value" of the vehicle). In addition, should the vehicle ...


42

No, it is not correct. You bought those 909 shares for $90,900. You sold them for $99,990. Your capital gain is $9,090 Or you could calculate the cap gain by multiplying the share price increase by the number of shares sold: 909 * $10 = + $9,090


42

Essentially you have two people pretending to understand something and writing enough that it feels like it makes sense. The whole idea falls apart when you realize that equity grants are taxable. Get paid $100,000 in stock, you owe income tax on $100,000 of income even though you didn't actually receive $100,000. People do this because they think the ...


38

It doesn't feel savvy to offer without Conditions Precedent like Financing Condition, Subject to Appraisal Inspection, Legal Review, Survey. For the average buyer, those typical conditions are very important. But for a team of investors, they are handling many of these internally. The purpose of visiting the house before making the offer is to do an ...


33

I used to do this when I was younger. The process went like this: look through the flyers from the stores near me. Note things that are significantly cheaper this week (eg chicken is on sale) add those items to the shopping list and note the store name add store names to items already on my list that are advertised on sale then go to the first store. Buy ...


32

Both your aversion to debt and your aversion to living paycheck-to-paycheck are admirable. Many people live in both of those states. Fortunately, if I am reading your question correctly, you can avoid both. You currently have $18k in your savings, and your tuition for the upcoming year is only $13k. This means that if you pay cash for your tuition, you will ...


31

This is a supplement, not an alternative, to TripeHound's excellent answer. In BC you are required to pay tax (PST) on private vehicle sales. Moreover you are usually required to pay tax on the market value of the vehicle, even if you say you bought it for less (because it's far too easy for buyer and seller to report a price lower than they actually paid ...


30

Do not disclose any more information and change your passwords to the bank website. You might possibly have to change your phone number that you have linked to the bank account. This is important since you might be receiving One Time Passwords (OTPs) on the mobile number which can be used to gain access to your account. Personally, I think physical address ...


30

Lawmakers like to be able to set the marginal tax rates for different income groups independently of each other. A politician who is negotiating an increase or decrease in taxes wants to be able to communicate very specifically to his electorate about who is hit by, or benefits from, the changes he's voting for. A single unified curve that defines marginal ...


23

Frame Challenge There's an "opportunity cost" (spending time doing one thing means that you miss out on the opportunity to do other things, which might be more fruitful) in running around hither and yon looking for the cheapest of everything. Thus, I would comparison shop to find which grocery store has the overall lowest cost.


22

TL;DR The effective tax rate curve is continuous (no jumps) anyway, so why complicate things? Continuous effective tax rate The system does yield a "smooth" (in fact you mean "continuous", no jumps) effective tax rate curve. You can have all the jumps/brackets/discontinuities you want in the curve for the marginal tax rate, and it will always produce a "...


18

She and mom believe it might be time to get her a credit card, mostly to build up her credit rating than out of necessity. Does your mother have a decent credit score? If so, then adding your sister as an authorized user but not giving her the card would boost your sister's score. That's what I did with my kids, and now they've got good scores. The ...


18

You are asking two opposite things. You might as well ask to purchase a store's finest, cheapest cigars. Or to put it another way, the bluest-reddest car you can get, is purple. But is that what you want? The question is, which do you care about? Low risk, or high reward? Be warned that anyone telling you you'll get both, is deceiving you. First make sure ...


16

If it were a legitimate case of them recovering money for you for a percentage, then they would be working it in a different direction. Asking for a "fee" puts this very much in suspicious scam territory. Look up the supposed bank online (do NOT use whatever links or contact information were sent to you), contact them, and ask if the person you're talking ...


16

In a genuine probate case the executor of the estate will not ask beneficiaries for money. The executor has a duty to identify the beneficiaries of the will and notify them, usually before the will is probated. There is the possibility, however, that the will has been probated and the beneficiary has not been found or the person died intestate. In this ...


16

Underwriting is not universal. There are generalities and various "common knowledge" related to credit scores. In general, the lower your balance relative to your available credit (known as credit utilization) the better your score. There is the obvious path to low utilization, and that is maintaining a low balance. The other route is pushing up your ...


16

Perhaps the commenter is paying cash and is a qualified surveyor who can do their own appraisal and survey at no cost, and has purchased enough properties that they can spot obvious pitfalls in the contract. And then the risk of something going wrong is small enough that the $5K saving more than outweighs it. If you only buy a couple of houses in your life ...


15

This is almost certainly not a scam. This is the seller trying to avoid any chance of you scamming him, with for instance a fake transfer. While I don't know details of Canadian motor vehicle laws, in the US such a cash transaction would be the normal way to handle a sale between private parties where there's no outstanding vehicle loan. FWIW, the only ...


14

A girl I work with has a quite extreme solution for impulse buying: she stores her credit cards in zip-lock bag, then puts it in water container and in turn leaves that in freezer. Gives her overnight to unfreeze it and reconsider her purchases.


14

This was discussed in an article in Consumer Reports in June 2017. The explanation given was that people with higher credit scores have the means and inclination to pay for issues out-of-pocket, rather than by making a claim. But Alldredge says insurance companies wouldn’t use the scores if they weren’t useful in assessing risk. “Maybe the person ...


14

Unfortunately this all sounds very normal, both for retail in general and the mattress industry in particular. As to why the sales person doesn’t want to give you a discounted price over the phone and wants you to come into their shop, this common tactic is based on an assumption that once you have made the effort to come to their shop you will be more ...


13

Having old credit lines is good for your credit score, and unused but available credit is also good as it lowers your utilization. So most likely, closing this account would hurt your ability to get a loan. If it was one of many cards and not one of your oldest, then the impact could be negligible. The down-side of keeping the account open is that it's one ...


13

You could try some gimmicks There are some classic remedies for impulse credit card spending like freezing the credit card in a block of ice in order to impose a waiting period while waiting for the thaw. That would be a very literal credit freeze. (: I'll see myself out now. :) Another more drastic option is to open a credit line, set up an automatic ...


13

It doesn't feel savvy to offer without Conditions Precedent like Financing Condition, Subject to Appraisal Inspection, Legal Review, Survey. Because skill-wise, you're not ready to do that. You can skip financing condition if your financing is lined up and secure. You can skip appraisal if you are experienced at pricing homes in the area. You can ...


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