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That is some drat fine work man. Way to go. Success stories are always the best. E:Not quoting means this has no context on the top of the page... 
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May 19, 2014 23:56
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Can anyone recommend any good finance/frugal living blogs? I really like Mr. Money Mustache but I'm sure there are others. Any (good) life hacky/frugal living/finance stuff would be appreciated as well. The only thing he recommends that I can't really do is ride my bike to work but I'll probably start carpooling again after the move. I could use a bike to get groceries/get to a close friends house but that's it.
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May 20, 2014 14:01
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Sephiroth_IRA posted:Can anyone recommend any good finance/frugal living blogs? I really like Mr. Money Mustache but I'm sure there are others. Any (good) life hacky/frugal living/finance stuff would be appreciated as well. Early retirement extreme is cool.
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May 20, 2014 14:14
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I was contemplating buying a lottery ticket yesterday and I was wondering, how much money would I need to retire with 60k/year at the age of 30? Couple of mills? My calculations are working out to 1.5 mills, but that seems low, and I fear the depth and darkness of the FI thread.
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May 20, 2014 14:18
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Quick and easy way, multiply your desired retirement income by 25: 60,000 x 25 = 1,500,000 That uses a 4% safe withdrawal rate, which is based on a historical worst-case market performance. And that's just passive income, so it doesn't count social security or any income you might get from "fun" work you do to keep from getting bored. Edit: MMM's post today seems oddly relevant. http://www.mrmoneymustache.com/2012/05/29/how-much-do-i-need-for-retirement/ Folly fucked around with this message at 14:33 on May 20, 2014 |
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May 20, 2014 14:27
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I bought a new pair of shoes for work yesterday for the first time in probably 2.5 years. The old ones had large holes where the big toe was on each foot, and if it rained or was snowy out, by toes would always get wet walking outside from my car to work. I still felt dirty spending all that money, but having hobo shoes was looking pretty bad around the office. Hopefully these new ones last just as long.
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May 20, 2014 14:37
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GAYS FOR DAYS posted:I bought a new pair of shoes for work yesterday for the first time in probably 2.5 years. The old ones had large holes where the big toe was on each foot, and if it rained or was snowy out, by toes would always get wet walking outside from my car to work. This is so dumb. Pay for some nice dress shoes and care for them a bit. My Johnston Murphy shoes were $130 but I have worn them everyday for 5 years. Get them shined once a year and you look good and the shoes last. The soles are finally wearing down though but I will say they have 2-3 more good years in them. Hobo shoes... There is a difference between spending money like an idiot and spending good money in a smart way.
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May 20, 2014 14:44
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A good pair of shoes, if well taken care of (Use shoe trees and wipe them with a damp cloth when you get home) will last you almost forever, so don't worry about it. Being bad with money when it comes to dress shoes is buying a shitton of cheap shoes instead of one good pair (Or two, really - brown and black) or buying weird stuff you can basically never wear... Like a pair of green boots I bought while I was drunk one night. At least they were on sale.  Online stores need breathalyzers, really. I cut back on the drinking in a big way in the last year, and I think I saved more money from the "Random crap from eBay / Amazon" category than I saved from the "booze" category. (As for good value dress shoes for men, I like Aldo's Mr. B. collection. Just wait until they go on sale. Never pay full price for anything fashion, unless it's your basic staple that never go on sale.)
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May 20, 2014 14:45
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FrozenVent posted:A good pair of shoes, if well taken care of (Use shoe trees and wipe them with a damp cloth when you get home) will last you almost forever, so don't worry about it. Being bad with money when it comes to dress shoes is buying a shitton of cheap shoes instead of one good pair (Or two, really - brown and black) or buying weird stuff you can basically never wear... Like a pair of green boots I bought while I was drunk one night. At least they were on sale. I bet there's a sobriety test browser extension for when you try to buy stuff online, I know that gmail has one so you don't drunk email (as much)!
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May 20, 2014 15:00
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Drunk email best emails  Although I did get scared when I realized that linking my phone to my work Outlook account meant that it'd autocomplete contacts to work contacts as well as personal contacts. I have a friend who shares a first name and initial with a customer... Luckily I found out when I sent him a work-related email and not the other way around.
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May 20, 2014 15:03
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How do people retire early when there are penalties for withdrawing from 401ks/IRAs before a certain age? My guess is you could withdraw "principal" from the ROTHS but my guess is there is some other work around.
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May 20, 2014 15:03
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Don't withdraw from those vehicles until you're at the age where there's no penalty; it's not like you can stick a million in there before you turn 40 anyway.
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May 20, 2014 15:04
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Sephiroth_IRA posted:How do people retire early when there are penalties for withdrawing from 401ks/IRAs before a certain age? Taxable accounts that are used to cover expenses until the "retirement" dates or passive income, as far as I can tell.
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May 20, 2014 15:07
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Sephiroth_IRA posted:How do people retire early when there are penalties for withdrawing from 401ks/IRAs before a certain age? You can withdraw from a 401k or an IRA early as long as you take a substantially-equivalent periodic payment until you're 59 1/2 (or five years if you start less than 5 years before 59 1/2). So long as you stick to your calculated distribution, you're fine. If you deviate you get nailed for 10% of all you've taken, even if you've been doing it for 25 years. Of course taxable accounts offer you more flexibility if you have them. http://retireplan.about.com/lw/Business-Finance/Personal-finance/Taking-Advantage-of-Substantially-Equal-Periodic-Payments-SEPPs-.htm
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May 20, 2014 15:14
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Laddered rollover conversions to Roth IRAs - you can pull your contributions out without penalty after a seasoning period since it was previously taxed. Ladder the conversions to minimize the tax hit. Use that for extra money, draw a minimal/basic income with SEPP.
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May 20, 2014 15:17
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quote:How do people retire early when there are penalties for withdrawing from 401ks/IRAs before a certain age? I'm more curious how they do it without going bankrupt from medical bills, honestly. The ACA makes it easier since you can't be turned down for a pre-existing condition, at least, but it's still ungodly expensive to have any kind of medical emergency in the USA, insurance or not.
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May 20, 2014 16:51
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Sundae posted:I'm more curious how they do it without going bankrupt from medical bills, honestly. The ACA makes it easier since you can't be turned down for a pre-existing condition, at least, but it's still ungodly expensive to have any kind of medical emergency in the USA, insurance or not. Well if all your income is from retirement accounts it's not like going bankrupt would be that painful
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May 20, 2014 16:59
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Sundae posted:I'm more curious how they do it without going bankrupt from medical bills, honestly. The ACA makes it easier since you can't be turned down for a pre-existing condition, at least, but it's still ungodly expensive to have any kind of medical emergency in the USA, insurance or not. fake edit: https://www.healthcare.gov/glossary/out-of-pocket-maximum-limit/ Looks like I was basically correct
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May 20, 2014 18:45
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Nail Rat posted:Well if all your income is from retirement accounts it's not like going bankrupt would be that painful because they're protected from bunkruptcy right? So if i want to retire early do I need to have a withdraw plan now or can I continue to just max my roth and put however much I can afford into my 401k until I have enough to retire?
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May 20, 2014 18:59
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Ugh. I'm wrapping up the first month I've had a United Chase credit card, and I have it set up to autopay the full amount due from my checking account, but today is the due date and it hasn't autopaid yet. The lady on the phone assures me that it will go through today, but it still makes me nervous. After this month I won't be so worried but I really don't want to be hit with late fees while I have plenty of money to cover it just sitting in my checking account. I guess I'm mostly just worried I copied the debit number wrong some how and it won't go through 
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May 20, 2014 19:36
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Sephiroth_IRA posted:because they're protected from bunkruptcy right? Only mostly protected from bankruptcy, if I remember correctly. 1) the first $1.2 million or so is protected 2) the withdrawals are only protected up to the amount needed to support yourself (I think that the simple fix is to only withdraw the minimum needed for support.) You don't need a withdrawal plan now. You need it once you start withdrawing. Basically, the rule is that once you start withdrawing you have to keep withdrawing at that pace until you either die or turn 65(I think). The statute wants you to be able to retire early, but they also want you to use the account for retirement and not just a generic tax shelter. So if you go back to work, you have to keep withdrawing or face a penalty. This would suck because odds are you'll be paying more in taxes by withdrawing the money than you saved in taxes when you deposited it.
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May 20, 2014 19:38
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Bobert51 posted:Ugh. I'm wrapping up the first month I've had a United Chase credit card, and I have it set up to autopay the full amount due from my checking account, but today is the due date and it hasn't autopaid yet. The lady on the phone assures me that it will go through today, but it still makes me nervous. After this month I won't be so worried but I really don't want to be hit with late fees while I have plenty of money to cover it just sitting in my checking account. I guess I'm mostly just worried I copied the debit number wrong some how and it won't go through Would they really charge you a late fee as soon as you're one day late on a credit card payment there? With most (or maybe all?) Canadian credit cards they'd just charge you interest, which sucks but isn't exactly the end of the world. Actually if it's the first month and there was a problem like the wrong account info being set up for automatic payment, you could definitely get the bank to reverse the interest charges by just explaining and asking. After the payment has been made in full just a day or two late. I'm told our banks are nicer than yours though. Also banks up here won't report your account to the credit bureau as delinquent for being just a day or two late, they'll just make note of it in their internal systems. No idea if that's different in the US, quite possibly.
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May 20, 2014 21:30
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Folly posted:Only mostly protected from bankruptcy, if I remember correctly. It's 1.2 million per person though, so if you have 1.5 million in your IRA and your spouse has 1.5 million in their IRA, you'll come out with 2.4 million if I'm reading the laws correctly.
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May 20, 2014 21:57
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Bobert51 posted:Ugh. I'm wrapping up the first month I've had a United Chase credit card, and I have it set up to autopay the full amount due from my checking account, but today is the due date and it hasn't autopaid yet. The lady on the phone assures me that it will go through today, but it still makes me nervous. After this month I won't be so worried but I really don't want to be hit with late fees while I have plenty of money to cover it just sitting in my checking account. I guess I'm mostly just worried I copied the debit number wrong some how and it won't go through All the credit cards I've dealt with stipulate that until your ACTUAL STATEMENT says "autopay", you have to keep paying like normal. Usually it takes a billing cycle or two for it to happen. You'd think it would just happen automatically since you can setup autopay in 30 seconds online, but no.
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May 20, 2014 23:28
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I have my credit card on autopay but I inevitably pay off the entire balance every month before it can trigger for some reason. I think, deep down, I still don't really trust it and like to know for sure it's paid off.
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May 21, 2014 01:33
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100 HOGS AGREE posted:I have my credit card on autopay but I inevitably pay off the entire balance every month before it can trigger for some reason. I tried that but then they still withdrew the statement balance from my chequing. So I had like a full month's expenses of credit on the CC. It didn't really matter because our balance was high enough, but I was pretty upset because I had sent the payment in like three weeks before the autopay date and I thought it would register the payment and subtract it. So now I don't do that, or worry about it. It's the best.
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May 21, 2014 02:12
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Nail Rat posted:It's 1.2 million per person though, so if you have 1.5 million in your IRA and your spouse has 1.5 million in their IRA, you'll come out with 2.4 million if I'm reading the laws correctly. Try as I might, I haven't been able to confirm that. The BAPCPA is loving dense, and I gave up. So take this with a grain of salt. I did find that your 401k and any other ERISA qualified employer-sponsored account is completely excepted without limits. They're not even counted as part of your bankruptcy estate. This is due to ERISA overriding bankruptcy law. Patterson v. Shumate, 504 U.S. 753 (1992). I didn't verify that cite. I stole it straight from this link. So only your IRAs should face the limit. Given how small the IRA contribution limit is, it seems difficult for your investments to perform well enough to hit that limit before you turn 70. So effectively, you're pretty likely to be fully exempt either way. Also, I'm adding bankruptcy to my list of law that Folly is not competent to practice.
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May 21, 2014 02:29
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Found out the other day that my application to move to my company's new office has been approved. This means that instead of commuting out of London each day I'll be commuting a short journey on the tube, cutting my journey time by 40% and travel costs by over 50%. I'm very happy about this, I hated paying so much for trains and a long commute sucks. I also got a promotion, think of how much extra money I can save!
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May 21, 2014 06:52
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100 HOGS AGREE posted:I have my credit card on autopay but I inevitably pay off the entire balance every month before it can trigger for some reason. I had a bad experience just out of college while money was still pretty tight with autopay (cable company continued to take money out of my account after I'd shut off service and moved) so that really turned me off of autopay. Plus I don't want to end up overdrawn due to somebody fat fingering in the decimal point in the wrong place even though I know that isn't very likely. So I use online bill pay but I do it all as a "push" from me rather than a "pull" from the company billing me. It adds maybe 5 minutes of work a month but it is worth it to know I'm the one controlling my bills.
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May 21, 2014 12:27
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Folly posted:Try as I might, I haven't been able to confirm that. The BAPCPA is loving dense, and I gave up. So take this with a grain of salt. Yeah but you might be in trouble if you rolled your 401k into an IRA after you retired(as I think most people would). That's interesting to know.
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May 21, 2014 13:13
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Folly posted:You don't need a withdrawal plan now. You need it once you start withdrawing. Basically, the rule is that once you start withdrawing you have to keep withdrawing at that pace until you either die or turn 65(I think). The statute wants you to be able to retire early, but they also want you to use the account for retirement and not just a generic tax shelter. So if you go back to work, you have to keep withdrawing or face a penalty. This would suck because odds are you'll be paying more in taxes by withdrawing the money than you saved in taxes when you deposited it. There's no issues with withdrawing early and still working part time right?
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May 21, 2014 13:25
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Sephiroth_IRA posted:There's no issues with withdrawing early and still working part time right? Not specifically, I don't think. You can't withdraw from any employer sponsored account (401k, etc) while you're still working for that employer. I think there's a minimum withdrawal rate for the SEPP option. And if you screw any of this up you'll pay a 10% penalty. Nail Rat posted a nice link earlier, it seemed to sum it up pretty well. But really, for questions are getting this detailed, then it's time to go spelunking. Edit: Also, regarding bankruptcy chat, there's a whole set of rules in that new law that seem to eat away at your bankruptcy protections as your income increases. I didn't read them at all. If anyone is planning a bankruptcy, or if you're concerned about hedging against one, then go talk to an expert. Folly fucked around with this message at 14:16 on May 21, 2014 |
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May 21, 2014 14:04
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Well it's my birthday and they're buying me lunch but my boss has to choose where we eat, lol. Oh well, one day without sardines and a couple cups of milk sounds fine to me. and my wife is really pushing for a kid. I want a kid but man I wish she was my age and not 7 years older than me so I could put this off another few years. Mr Money Mustache puts the cost of raising his kid at $300 but that's probably due in large to him being retired and not having to worry about daycare.
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May 21, 2014 14:49
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Sephiroth_IRA posted:Well it's my birthday and they're buying me lunch but my boss has to choose where we eat, lol. Kids are expensive, but worth it  We're expecting #2 in November and our daycare will be almost as month as our 15 year mortgage. Yay two mortgage payments.On my diet again previously mentioned in this thread and then promptly abandoned. I have a vacation in a month so it would be nice to drop a few lbs before then, talking with my wife's cousins over the weekend we are trying to band together to keep each other accountable for our dieting. Anyone use myfitnesspal here? My username is the same as here if anyone wants to befriend me to keep me on track. Happy birthday, Sephiroth IRA 
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May 21, 2014 15:08
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If you believe the rule of thumb that it takes $250,000 to raise a kid from birth to 18 that comes out to $1157/month. Your going to have to cut out the sardines...
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May 21, 2014 15:09
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dreesemonkey posted:Kids are expensive, but worth it Yeah I'm tuyop on mfp. You can see how many bowls of cinnamon toast crunch I eat after forgetting about food for 14 hours. Actually, I'm slightly upset by my mfp streak. I had 120 days logged in a row then went hiking and didn't log for a week. 
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May 21, 2014 15:27
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tuyop posted:Yeah I'm tuyop on mfp. You can see how many bowls of cinnamon toast crunch I eat after forgetting about food for 14 hours. That is a hell of a streak, I was impressed with myself when I hit like 20 days in a row a few months ago.
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May 21, 2014 15:36
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spwrozek posted:If you believe the rule of thumb that it takes $250,000 to raise a kid from birth to 18 that comes out to $1157/month. They only cost a buck at Aldi
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May 21, 2014 15:48
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We've got a 21 month old, and there is no way that we could afford daycare. Thankfully my job lets me work remotely. I could probably find a better paying job in an office and be able to pay for her to go to daycare. Some days I consider this, but I think the trade off is worth it for now. I can't really put a price on spending time with my daughter as a toddler.
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May 21, 2014 15:53
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I'm hoping my aunt will still be around when I have a kid because she's working as a full time babysitter atm and I'd much rather have her (paid) watching my kid (and speaking to him/her in spanish/reading to him) than have to pay for daycare.
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May 21, 2014 17:46
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