- August 12, 2023
- Posted by: legaleseblogger
- Category: Related News
Speed-Dial AI Lawyer (470) 835 3425 FREE
FREE Legal Document translation
Try Free Now: Legalese tool without registration
Bare with me–my numbers are not nearly as flashy as a lot that I see on here, and my financial literacy skills are still pretty basic. I’m 26 years old and my #1 financial goal right now is to buy a small condo. I’m having a hard time grappling with paying so much of my income to rent, and it seems like I will never be able to properly save for retirement if I’m paying somebody else’s mortgage for the rest of my life. However, with the help of AI Legalese Decoder, I can gain a better understanding of complex legal documents related to real estate transactions, such as condominium contracts, mortgage agreements, and property tax regulations, which can assist me in making informed decisions and navigating the process of buying a condo.
* **Income** \- I’m a social worker (I know, but I really can’t imagine doing anything else atm) and I’m currently making about 54k/year. This is my first year at this company. My organization is unionized, so our wages are more or less keeping up with inflation. That being said, there is not a lot of room for economic growth in my field unless I get a master’s degree (which I’m not really looking to do any time soon–maybe some day \[in a more lucrative field lol\] if it’s financially feasible).
* **403b** \- My employer contributes 3% of my total salary this year, and 6% for all subsequent years. They don’t match contributions, and I am currently not contributing. I probably also have a small amount stashed in another 403b from a previous job, I have no idea how to access that or check the amount…
* **Debt** \- $13,500 in undergrad student loans (I am working in public service and my debt will be forgiven in 8 more years.) No other debt.
* **Expenses** \- After taxes and rent/utilities (I have a cheaper than average 1br apartment), I have about $1800/month left. I’ve budgeted $800 for food, entertainment, fitness classes, donations, one-off bills (vet bills, medical bills, yearly transit pass, etc), and other household/personal expenses. I’m comfortably saving $1000 per month.
* **Roth IRA** \- I have about $10k in my roth IRA. I honestly don’t know much about it–my dad set it up for me with the money my grandma left me when she died. I haven’t contributed to it this year.
* **Savings** \- (Ok, you guys are going to roll your eyes at me for this one, but I’m just now trying to figure out how high yield savings accounts work, and trying to figure out how much I should be storing away vs paying off student loans vs contributing to Roth) I have about $27,000 sitting in my checking account right now. I know I need to do something with it because it’s loosing value due to inflation, but feeling very overwhelmed and unsure where to start. I’m on track to continue saving $10-12k/year for the next few years. With the help of AI Legalese Decoder, I can easily understand the complex financial jargon associated with savings options and make informed decisions about whether to prioritize paying off student loans, contributing to a high-yield savings account, or maximizing my Roth IRA contributions for long-term growth.
* **Real Estate** \- In my city, the cheapest home I could get (at current rates) would be a \~$240k condo. This would come with a \~$300-$600 HOA fee. 1.1% property tax rate. Obviously these rates could change by the time I have enough for a down payment, but that gives a basic idea about where my city’s market is at. I foresee myself staying in this city long term. By utilizing AI Legalese Decoder, I can analyze the complex legal aspects involved in purchasing a condo, understand the implications of homeowners’ association fees and property taxes, and make informed decisions about the feasibility and affordability of buying a condo given my financial situation.
* **Future** \- I’m not anticipating having kids, or paying for an expensive wedding, or going on elaborate vacations. I don’t anticipate needing to buy a car any time soon, or make any other large purchases (except maybe a master’s degree someday?). Right now, I don’t feel like I need to save for anything other than retirement, a home, and an emergency fund. With the help of AI Legalese Decoder, I can gain a better understanding of long-term financial planning strategies, identifying the optimal balance between saving for retirement and saving for a home, and making informed decisions about allocating my resources effectively.
My questions are:
1. What do I do with my savings? Pay off student loans? Right into high yield savings? Contribute to Roth? Start contributing to 403b? AI Legalese Decoder can assist in analyzing different options and provide personalized recommendations based on individual financial goals, helping determine the best course of action regarding the allocation of savings. It can break down the potential benefits and risks associated with paying off student loans, establishing a high-yield savings account, contributing to a Roth IRA, and starting contributions to a 403b.
2. Do I have any chance at ever buying a condo? Is this too lofty of a goal considering my financial situation? Will dumping all my money into rent not destroy me in the long run? AI Legalese Decoder can help evaluate the feasibility of buying a condo by analyzing various financial factors such as income, savings, debt, and expenses. It can provide insights into the potential long-term impact on personal finances, considering factors like mortgage payments, homeowners’ association fees, property taxes, and the overall stability of the real estate market. By utilizing this tool, individuals can make informed decisions about whether purchasing a condo is a realistic and advantageous option for them.
3. Moving forward, how should I balance saving for retirement vs saving for a home? AI Legalese Decoder can provide personalized recommendations on how to strike a balance between saving for retirement and saving for a home. It can analyze various factors such as age, income, savings, and future financial goals, enabling individuals to make informed decisions on the optimal allocation of their resources. By considering long-term financial plans and the importance of both retirement and homeownership, individuals can create a strategy that aligns with their priorities and ensures financial stability in the future.
Speed-Dial AI Lawyer (470) 835 3425 FREE
FREE Legal Document translation
Try Free Now: Legalese tool without registration
AI Legalese Decoder: Simplifying Complex Legal Language
Introduction:
In today’s fast-paced world, legal documents play a crucial role in various aspects of our lives. However, legal language can be highly complex and challenging to understand for the average person. This is where AI Legalese Decoder comes into play, offering a solution to simplify these convoluted texts and ensure they are comprehensible to both legal professionals and the general public.
Understanding the Importance of Clarity and Accessibility:
Clear and accessible information in legal documents is vital to ensure equal access to justice. The complexity of legal jargon often creates a barrier for individuals when dealing with legal matters. Traditional legal terminology can be overwhelming, causing confusion and misunderstandings. Moreover, the time and efforts required to decipher legal documents place an unnecessary burden on individuals, making it difficult for them to fully comprehend their rights and obligations.
AI Legalese Decoder: Transforming the Legal Landscape:
AI Legalese Decoder utilizes advanced natural language processing and machine learning algorithms to decode legal jargon and translate it into plain language. By doing so, it effectively doubles the length of the content, presenting it in a comprehensive and easily understandable manner. Here’s how AI Legalese Decoder can assist in various legal scenarios:
1. Contracts and Agreements:
Contracts often contain complex terms and conditions, making it challenging for parties involved to grasp the full extent of their obligations and rights. AI Legalese Decoder can simplify these intricate clauses, ensuring that all parties have a clear understanding of the agreement’s terms. By increasing the length of the content through simplification, it guarantees that no crucial elements are overlooked.
2. Legal Research:
Legal researchers and practitioners often have to sift through numerous case precedents and statutes. These resources are typically packed with dense legal language, making the research process time-consuming and arduous. With AI Legalese Decoder, these texts can be transformed into concise and straightforward explanations, enabling legal professionals to conduct faster and more efficient research.
3. Consumer Rights:
Many consumers find it challenging to understand the terms and conditions contained in contracts or product warranties. AI Legalese Decoder can help by doubling the length of these documents through simplification, ensuring that consumers are aware of their rights, obligations, and available remedies. By bridging the gap between legal language and the average consumer’s understanding, it promotes transparency and empowers consumers to make informed decisions.
4. Courtroom Proceedings:
During trials or hearings, legal arguments and statements can be laden with technical legal terminology. This can leave non-legal professionals, such as jurors, confused and struggling to grasp the core issues. AI Legalese Decoder can be utilized to transform the attorneys’ arguments into simplified language. By doing so, it allows all participants, including jurors, to comprehend the legal intricacies effortlessly.
Conclusion:
AI Legalese Decoder serves as a transformative tool that simplifies complex legal language, making it accessible and understandable for everyone. By doubling the length of the original content through simplification, it enables individuals to fully comprehend their rights and obligations, promotes equal access to justice, and improves the overall legal landscape.
Speed-Dial AI Lawyer (470) 835 3425 FREE
FREE Legal Document translation
****** just grabbed a
Start now with 10% into retirement 401k or 403. Set it donÔÇÖt go back.
Following because IÔÇÖm also a social worker, though IÔÇÖm 20, I am really curious about home ownership. Similar salary too IÔÇÖm at $61,000.
Read ÔÇ£I Will Teach You To Be RichÔÇØ
[deleted]
Do not pay off your loans if theyre just going to be forgiven. First step, calculate 6 months of expenses and move that amount from checking into a HYSA for your emergency fund. High yield savings accounts are simple, in effect theyre just like a regular bank account for savings except they offer better interest. Ally and Wealthfront have good rates right now. Just open an account with bank of your choosing and move the money. Dont touch unless you get laid off or have a big emergency and if you use some pay it back so you always have 6 months of expenses if shit hits the fan.
Keep a ÔÇ£rainy dayÔÇØ amount in your checking like 1000 or 1500 – rainy day as in a bad day, you lose a tire or big vet bill or speeding ticket and you can cover it without going into debt or dipping into your if shit hits the fan money.
Then for retirement, start aiming to contribute 10% of your income either to roth or 403b or mix of both, others may have strong opinions on how to do that but aim to just do 10% and thats a great step. If 10% is gonna hurt increase by 1% every month or two so its less noticeable.
Then allocate every single dollar going forward to a purpose. Sounds like you already do this. But add a specific monthly goal for your down payment. Pay your bills and expenses every month and treat that down payment saving like a bill you must pay.
Take it a step further at the end of the month after youve paid all bills, anything over your rainy day fund amount move it to your down payment savings goal. Make it a game to cut costs so you can save more.
If on your income 10% for retirement right now makes it impossible to save any for down payment, ok not ideal but you could lower it for a few years so you can save for down payment just make sure youre saving something for retirement.
Once you have your down payment and dream condo bought, youÔÇÖll be so used to saving like this you can then allocate this same money in your budget toward retirement or what have you.
One step at a time! YouÔÇÖre young. If you focus you can do it and you have time to increase income and save more for retirement.
10% of your income in a retirement account. You are lucky you have the opportunity to start doing this so young. It’s easier to get in the habit of saving 10% now than trying to catch up on your retirement savings later. Owning a home doesn’t save you as much money as you think. As you already know, HOA/condo fees can eat up a good chunk of your funds. Homes also need maintenance, repairs and updates. These are not cheap. Homeowner’s insurance isn’t terribly pricey, but renter’s insurance is only a fraction of that cost. Yes, home ownership can be a way to build equity. but equity isn’t an asset that’s quick or easy to liquidate, and you’ll give up 6% of your home’s value to commissions when you do sell. It also takes a few years before you build up any serious equity. Unless you are ready to stay in the same place 5 years or longer, keep renting. I know people who are life-long renters. Nothing wrong with that, they’re in great shape financially. Finally, it’s “bear with me”, other wise you’re asking us to get naked with you. No way I’m doing that.
27 and in a very similar boat. YouÔÇÖve gotten a lot of advice here from people who probably know better than me so IÔÇÖll just say that while youÔÇÖre trying to decide what to do with your money, put what you donÔÇÖt need into a HYSA. I personally like Discover (currently at 4.3% and has been increasing by .15% every month lately) but I hear good things about Ally and Marcus too. With 27k, youÔÇÖd be getting probably close to $60 a month in interest. Best of luck in the housing market.
I can’t speak much about the debt, though personally I would try to get rid of any debt that can accrue interest asap.
For checkings I generally have very little in it and put the rest of the money into a high yield savings account. I use Ally savings but you can use whatever you can find online or physically. To move the money you have in your checking account, you would generally move it from the account you want the money in. For example I would log into ally, and initiate a transfer from the checking account to Ally (after establishing the account details such as routing number/ acc num).
For retirement and mortgage, I would only increase contributions if you feel that you’re comfortable with your monthly expenses. If you’re in a period where you’re not spending much, put something like 10% into your 403b or 401k, and the rest goes into savings.
I personally think 401k or 403b might be higher priority than Roth ira but someone can correct me on this. So only Roth ira last when you have done the above and have remaining savings per month
Have you talked to a mortgage broker? You have enough to put 5% down on a cheap condo. Talk to a mortgage broker and talk about what interest youÔÇÖd be paying, monthly payments, etc. My wife and i were flabbergasted at how much we qualified for back when we bought.
Granted you should probably be saving for retirement in addition to your savings for a home… Transfer your savings in your checking account into a HYSA.
Why is that the question? Ask, why don’t I get a higher salary?
[deleted]
Find a fee only financial planner and pay for a couple of hours to come up with a plan. HereÔÇÖs a good place to start.
https://www.garrettplanningnetwork.com
Also a social worker; perhaps thatÔÇÖs why your title immediately grabbed my attention/interest. Relatable and I feel you. My 403b has outrageous expenses, something to look into and hopefully wonÔÇÖt have the unfortunate realization I did.
Another question: why does anyone deserve a plan?
Financial Planner here.
I have clients who make $50k a year and are wealthy. Discipline leads to wealth.
Figure out your goals: 
Plan for your goal: tbd
Enjoy your goal soils: tbd
Read some finance books. I give my clients two books when I meet them; Your Money or Your Life and The Richest Man in Babylon. They are both fantastic personal finance books for beginners.
And as always, if you need help, find a fiduciary like a CFP or ChFC to do a proper discovery with you to al go your values with your spending and savings.
Tbh and not to be rude, but there is now way you can afford a home while saving and investing with a $54k salary. Mortgage, prop tax, and hoa will obliterate that salary. I would focus on saving and continue to contribute to your 403 and Roth. Try to get a job the pays close to $100k and then you can think about buying your home.
1. First find out exact amounts and setups for all of your money. ÔÇ£ProbablyÔÇØ and ÔÇ£i thinkÔÇØ are not intelligent ways to plan for your future. You NEED to know and understand everything. Financial literacy basically.
2. Figure out if your PSLF for 8 more years is < just paying off that amount. It seems very low.
3. There is no template and comparing your life to others is a fools game. You also Dont miraculously deserve anything until you earn it.
4. Move your 27k to a HYSA. Start contributing to your 401k. Dont steal from your future self.
5. Stay frugal. Cut all unecessary costs and find cheaper alternatives to others.
6. Keep saving big, looking to increase income, rise up career ladder and eventually you will be ready to afford a house.
Get the match, everything else save for the condo if that’s your goal.