Q & A Wednesday - Stimulus Money
Updated: Apr 18, 2020
Today we are going to answer some questions about the stimulus money coming to you, credit, and stock.
Q: // Marc, Florida: I got promoted last year and of course, for the first time I owe in taxes. But I just had a child this year and now a lot of my money is going to child care, so things aren’t as great as I would want them to be. If I owe money to Uncle Sam, will I get any stimulus money?
A: First and foremost, Congratulations on your promotion, that’s always a good thing. Things could have been worst. To answer your question, as long as you file single and make less than $75,000 Adjusted Gross Income or make less than $150,000 and file jointly, than the government will qualify to receive the stimulus money. Now the government with their calculations determine exactly how much you will get. There’s more information for you at irs.com/coronavirus.com.
Q: // Larry, Baltimore Maryland: I purchased a laptop from online and it never came to me. It was returned to the seller because I wrote the address wrong, but I don’t want it anymore. What can I do to get my money back?
A: As long as it’s a card with a Visa, Master Card, or AMEX logo, you can file a dispute with the bank and they will give you a provisional credit, pending investigation. There are certain reasons in which they can’t refund you, but if a product is defective, never received, service never rendered then you will most likely get refunded.
Q: // Steff : I keep hearing it’s a great time to buy stock, but I’ve never bought a stock in my life. How do I purchase a stock?
A: OK, for some of you listening who may not know what stocks are? I’ll explain before I answer her question. Stocks are shares in a company. For example, Disney Company is worth right now around $130 Billion Dollars because people like me and you own shares of the company and right now each share is worth $93.88. That means I own a piece of Disney. So if Disney does amazing and does another movie like Black Panther for example, the value of the company will go up and my one share will go from $93 to $100 a share. So if I owned the share when it was $93 and sole it when it was $100. I would have made $7 profit. Now if I would have bought 3 shares totaling to $93 times 3. I would have made $21 dollars profit when I sold the stock. That’s a lot of numbers and I really hope that makes sense. SO now to answer Steff’s question. Because the economy is doing horrible right now, normally where a Disney (To stick to the same example) is $100 per share, it is now $50. Because they closed down Disney Land and the movie theaters. So Disney gets hit hard. Now Eventually Disney world will open back up and movie theaters will become a thing again and the stock will go back to $100. And just like that you make $50. Now if you would have bought 2 shares and spent $100, you would make $200. So yes Steff, it is a perfect time to buy stock, but I do want to tell you, make sure your home (rent or mortgage) food, and health is good before you invest in stock. Because it works best when you have the money in stock for $10 plus years. Now how do you buy stock? Before, and by before I mean now, you can buy stock from companies like Fidelity and E*TRADE but they would charge every time you bought or sold stock so now they have apps like Robin hood and M1 where you can buy stock for free. So for now I recommend the apps.
Q: // Beverly, Harlem New York: This may be a stupid question, but what is credit and why is it so important?: I got promoted last year and of course, for the first time I owe in taxes. But I just had a child this year and now a lot of my money is going to child care, so things aren’t as great as I would want them to be. If I owe money to Uncle Sam, will I get any stimulus money?
A: Beverly, this is not a stupid question and I’m glad you ask because this is a question for everyone. The way I explain credit to people is by asking them. “If someone were to come to you and ask you for $500 if you had it, you wouldn’t give it to them right? Not because you don’t know them but mainly because you don’t know them, to know if they’d pay you back. Now what if that person had a paper given to him from the government stating that he’s borrowed $500 before and he paid it back with extra, and that he paid it back on time as agreed, then you’d be more incline to let him borrow the money right? Now what if he had a document that stated that he borrowed money from his money and he never paid it back, and he borrowed money from a friend and he’s hiding from them, you would definitely not let him borrow the money. That’s what credit is. A legit document showing a person’s history of borrowing money. So when you go to the bank and you ask them for $15,000 to take a loan to buy a car then they will pull your credit and say, “I trust Beverly enough.“
Now for the second part of the question, the reason why it’s so important is because it used to be used back then just for loans, but now, although I don’t agree with this reason, it’s been used to judge your character. And what I mean by that is, you need good credit to rent a home, to take out a loan on a phone, and even to qualify for a job. I work at a bank and you need good credit to work there. Like I said I don’t think it’s fair because things happen, people get unemployed, medical bills pile up, but that’s what America is using your credit for and that’s the importance so that’s why I am a huge advocate of building your credit.
Q: // Anonymous: I have never ever purchased a home and I never thought I would, but I’m in a better position financially that I’ve ever been and I see myself owning a home now. I have no idea where to start. How much do I need? Where do I need my credit to be? What information you have that can help me buy a home?
A: I want to tell you something. I was raised in the projects in New York, so buying a house was something I’ve never thought I would do, so when I was in a position to buy a home and I did it. I was super surprised on how easy it was. I actually told my good friend who didn’t have great credit at the time how easy it was and he listened and he did it. This is how easy it is. It takes two people to buy a home. A lender and a realtor. Your lender handles your loan and the realtor handles the house finding and all you have to do is do what both of them say. Now you have to have a realtor and lender you trust, but honestly it’s as simple as that.
Now somethings you need to purchase a home is a least 580 credit score and at least 3.5% down payment for the price of the home you want to purchase. There there’s other smaller things that’s good to know like the difference between FHA and Convention mortgage loans, but what I stated was the bare minimum. Now that you have this information, YOU. . . YOU go find a home. Aaaaand please email me at pain2progression @gmail.com and let me know about your experience and how right I am on how easy it is.
Q: // Tiffany, Brooklyn: Where I live I’m not supposed to, but I’m renting an apartment from a friend who is on the lease. I live there by myself and I am not on the lease. I just got let go from my job due to all these company closing because of Covid-19. I don’t want to get caught, but I don’t want to pay rent if I don’t have to. Can I skip paying my rent?
A: This is a tough one. . . . I get it, I don’t want you to get caught . . . . . I’m thinking, the best thing for you to do is to call the your leasing agent and don’t mention your name or the apartment number and ask them, “I got let go and I may have issue paying rent, are you guys allowing for us to skip a payment if possible?” All they can say is no. An honestly they don’t want you to leave. They depend on your money and they rather work with you than lose you as a tenant than spend money trying to evict you which they can’t even do right now as per law. And trust me, unfortunately, there’s a lot of other people where you live going through this as well. I hope that helps. I’m sorry you have to go through this.
Now, this information is for you to use and grow financially, but it’s also for you to share with whoever you feel this will help. Let’s take this information and flip the world upside down. Talk to you later bosses.