Rick Goldstein
  • Member for 10 years, 11 months
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Why do banks want you to pay off interest before principal?
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72 votes

In other words, math. All the other answers are great, but I thought I might add something concrete to clarify slightly. Consider a counterexample. Suppose I borrow $120000 at 1%/month interest (I ...

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Underpaid federal tax by $5K in 2014 when claiming 0 with very "standard situation" (married filing jointly). Why?
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15 votes

I'll answer based on your response to my comment on the OP. The basic issue is that when income from multiple jobs is combined, the marginal tax rate may be higher than that for either job separately....

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Is there a term that better describes a compound annual growth rate (CAGR) when it is negative?
14 votes

Not sure why CAGR is a problem for both directions. I used to be a physicist, and, when I taught classes in graduate school, students always wanted to use the terms "accelerate" and "decelerate" to ...

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How should I move out of my own house?
14 votes

You say you are on the deed. Are you also a co-signer of the mortgage? If so, you do need to keep paying, and also make sure your mother keeps paying her half. Otherwise, you are subject to ...

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Depositing a second party check for $10,000
13 votes

The short answer is "no". Gifts below $14K are not subject to any reporting requirements (assuming you are in the US). The long answer is a series of questions: Is this person well-known to you? Why ...

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$140,000 student debt. What are my options? Please help
13 votes

You can find information on qualifications and a payment calculator for Income Based Repayment here. Assuming all your loans are qualifying and at 6.8% interest, and your adjusted gross income is $40,...

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Father wants to gift child with approx $200k. Smartest way from USA tax perspective?
13 votes

Gift taxes kick in at around $13K per giver per recipient per year. That means that a straight up gift of $200K (as cash or a house) will incur a tax. It is possible, however, that if the father has a ...

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Should I pay off student loans with existing retirement savings?
12 votes

(Note: The OP does not state whether the employer-sponsored retirement savings are pre-tax or post-tax (such as a Roth 401(k)). The following answer assumes the more common case of a pre-tax plan.) ...

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If gold's price implodes then what goes up?
12 votes

It's not clear that anything needs to go up if gold goes down. In a bubble, asset prices can just collapse, without some other asset increasing to compensate. Economies are not a zero-sum game. On the ...

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How to prevent college financial aid from being affected by my internship salary
12 votes

The point of financial aid is to provide the difference between the price of college and what the student (and family) can pay. If your income goes up, that difference goes down, and you are obligated ...

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Can there be two primary owners on a car title while only one takes out the loan?
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9 votes

Setting aside the insurance question for the moment, you need to talk to the bank about the loan, but I somehow doubt that they will agree to the terms without some kind of release from your father. ...

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Looking to get my first credit card
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8 votes

It used to be quite easy for students to get credit cards. When I was in college in the early 1980s, credit card companies set up tables in the student center and offered low-limit cards along with ...

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I want to invest in Gold. Where do I go and buy it?
8 votes

I do not know anything about retail investing in India, since I am in the US. However, there are a couple of general things to keep in mind about gold that should be largely independent of country. ...

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How do I deal with a collection agent who refused to state a reason for calling?
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7 votes

Seems to me they were acting properly in attempting to identify you before discussing the nature of the debt. Once they establish your identity, you can make them specify, in writing, all the ...

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How should I invest/spend this 50k inheritance?
6 votes

When considering whether to pay off the student loan, note that, because you work for a non-profit, some or all of that debt may be forgiven after 10 years under the Public Service Loan Forgiveness ...

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Can I do a Roth 401k rollover to Roth IRA and withdraw contributions I've made this year?
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6 votes

According to IRS Pub 4530, there are two (potential) problems with doing what you suggest. First, the employer contribution is pre-tax, and is treated just like a normal 401(k) contribution. ...

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What gives non-dividend stocks value to purchasers?
5 votes

A share of stock is a share of the underlying business. If one believes the underlying business will grow in value, then one would expect the stock price to increase commensurately. Participants in ...

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Does revenue equal gross profit for info product business?
5 votes

What about web-hosting fees? Cost of Internet service? Cost of computer equipment to do the work? Amortized cost of development? Time for support calls/email? Phone service used for sales? Advertising/...

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Tax Consequences of a Gift
5 votes

To answer the last question first: there are no tax consequences to you. If your family member is married (or has a joint owner of the funds), and so are you, each of them can give each of you the $...

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Choosing a vehicle to invest a kid's money on their behalf (college, etc.)?
5 votes

One other advantage of a 529 versus a simple investment account (like an UGMA/UTMA) is that the treatment for the purposes of financial aid is more advantageous (FinAid.org). Even if it is a custodial ...

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Option for health insurance coverage when going back to school in 30s
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4 votes

A couple of additional options beyond the school's (possible) health care plan may be available to you in the event that your income will drop significantly when you become a student. First, you may ...

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List of Investments from safest to riskiest?
4 votes

I think your premise is slightly flawed. Every investment can add or reduce risk, depending on how it's used. If your ordering above is intended to represent the probability you will lose your ...

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What should I do with my credit card debt?
4 votes

In addition to dpassage's excellent advice on dealing with your debt in the most efficient manner, you may also want to consider Consumer Credit Counseling Services (CCCS). These are non-profit ...

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Taking out a private loan to pay off student loans
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4 votes

I did a quick check at USAA that shows 7-year personal loans at around 8.5%. Their rates (if you are a member) tend to be competitive. I don't think government subsidized student loans are that high. ...

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Is it generally better to buy a property when the housing market is in a downtrend or an uptrend?
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4 votes

If all the property is going up and down at the same rate, it's probably a bit of a wash. However, there are markets (e.g. the Front Range of Colorado, where I live), where property at different price ...

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How to take care of multiple student loans (consolidation, payment strategies)
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3 votes

This page at the Department of Education's Student Aid site summarizes the payment plans available. In particular, you should note that parental PLUS loans are not eligible for income-based repayment. ...

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Gift Tax owed on the transfer of a Home Equity Loan
3 votes

The fact that she is borrowing against her income property to furnish you the money seems to me to be a distraction here. Where she gets the funds is immaterial. What matters are the transactions ...

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New Car Tax deduction
3 votes

Where you find the information will depend on the state you are in. We bought a new car in 2012 and live in Colorado. Here, the dealership collects sales tax, but not registration fees or ownership (...

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What is the most efficient way to gift money to young relatives?
2 votes

I think you have already outlined for yourself most of the pros and cons of each method of giving. It sounds to me like you have some desire to control how the money is spent, or at least reserve the ...

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Why is the breakdown of a loan repayment into principal and interest of any importance?
2 votes

The other answers have touched on amortization, early payment, computation of interest, etc, which are all very important, but I think there's another way to understand the importance of knowing the P/...

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