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Chuch posted:According to that calculator, if you have 11k in retirement savings you have more than 50% of 55 year-olds. I'm 26. I have more in retirement savings than 90% of my age group, according to that calculator. I'm afraid.
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Feb 11, 2015 12:40
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I have more retirement savings than 70% of all American households at 24 I feel a lot better about the vacation I'm taking this summer now, but a lot worse about the burgeoning number of retirees
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Feb 11, 2015 13:37
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Before you poo poo too much on people without savings, I'm 33 and have zero because I've instead spent over 70k paying off 6.8% student loans the last 6 years. It's arguable which way is better.
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Feb 11, 2015 14:33
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mastershakeman posted:Before you poo poo too much on people without savings, I'm 33 and have zero because I've instead spent over 70k paying off 6.8% student loans the last 6 years. It's arguable which way is better. I periodically have the debate with myself whether I would have been better off taking student loans and starting my career three years earlier vs no student loans and doing part time school/full time work which is what I did. I also would have entered the job market during a really lovely time, probably not have met my wife, and all other kinds of things.
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Feb 11, 2015 14:51
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mastershakeman posted:Before you poo poo too much on people without savings, I'm 33 and have zero because I've instead spent over 70k paying off 6.8% student loans the last 6 years. It's arguable which way is better. Alternatively, focused on buying a home. Depending on tax breaks and local mortgage interest rates, it may or may not be bad with money to focus on saving up for the down payment for a home instead of saving for retirement and then having to borrow for the home.
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Feb 11, 2015 14:57
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Renegret posted:I'm 26. 34, and more than 95% of my age group. And I freak out that I didn't start early enough sometimes. $20k would put you above 75% of that age group. Wow. mastershakeman posted:Before you poo poo too much on people without savings, I'm 33 and have zero because I've instead spent over 70k paying off 6.8% student loans the last 6 years. It's arguable which way is better. I'm not trying to poo poo on anyone about it, it's just sad to see. At least people in their 20s and 30s have time to right the ship. People in their late 50s and 60s are just kinda hosed at this point.
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Feb 11, 2015 14:58
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SlapActionJackson posted:Considering 4% is considered to be the "safe withdrawal rate" for retirement funds, you'd better aim for more than 8x your salary. 25x would give you complete income replacement, though that is probably overkill for most people. 8x only replaces about 1/3 of your salary in retirement so you'd be depending pretty heavily on social security and still taking a lifestyle cut. The idea that many of these people have is that you buy your house while working, fully paid off mortgage when you retire. That is one of or the largest expense that most people pay, so the necessary outflow of money should stop at retirement as well. In theory.
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Feb 11, 2015 15:03
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mastershakeman posted:Before you poo poo too much on people without savings, I'm 33 and have zero because I've instead spent over 70k paying off 6.8% student loans the last 6 years. It's arguable which way is better. This is true of me, but I'm top 10% based on 401k matches alone.
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Feb 11, 2015 15:04
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I've ended up doing both - funding my 401(k) to 5% to get my employer's max match and maxing out a Roth IRA, then throwing everything else at the student loan. As a result, at 30 years old I've got about $100K in retirement savings, $10K as an emergency fund, and about $5K remaining on $89K worth of student loans. Admittedly, the loan paid for an engineering degree and I'm in a low cost of living area. I've been tempted to just take half of the emergency fund and just finish off the loan but it's only at 2.75% and I really don't want to touch the emergency fund. I recognize that as a DoD civilian (GS-13-04 federal employee) I have a more stable job than many, but the furloughs and shutdowns of 2013 still scared the hell out of me. I did fine, but there were plenty of people around my rank that were really struggling with the 10% furlough pay reduction for a few months, let alone the missed shutdown pay (that we eventually got anyway). Our credit union was actually offering shutdown loans.
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Feb 11, 2015 15:13
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P.D.B. Fishsticks posted:I've ended up doing both - funding my 401(k) to 5% to get my employer's max match and maxing out a Roth IRA, then throwing everything else at the student loan. As a result, at 30 years old I've got about $100K in retirement savings, $10K as an emergency fund, and about $5K remaining on $89K worth of student loans. This actually IS my strategy at present, but mostly because I'd like to have 20% towards a house at some point in the future and if I don't start that ball rolling in my 20s it'll take forever. So it's match 401k, max out HSA, maxing Roth IRA until home savings + Roth IRA are enough to cover a down payment, then I've got a pretty slick formula to split all additional income between loans and down payment savings based on mortgage realities (depending on debt to income ratio, income ratio and down payment amounts). I wish every facet would be moving faster, but it'd be absurd to say it's not moving fast. I also have to maintain the emergency fund pretty strongly because I'm a fed contractor and stuff like the shutdown really wrenches things here and there. Flip side is that it spooked off so many people that it probably created a higher demand for those left behind, at least in the tiny slice of my job market.
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Feb 11, 2015 15:21
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What's a 401k match (says my employer, a 300 person law firm) 
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Feb 11, 2015 15:31
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It's me, I was bad with money. In 2008 I left the Marine Corps after five years with zero debt and about 25k in my IRA. I got admitted to the University of Illinois and thanks to being a veteran got tuition paid for by the state, and a $1500 monthly stipend from the GI Bill. In 2012 when I graduated with a BS in aerospace engineering, I had 22k in completely unnecessary student loans (spent on really nice housing, food and booze, some travel, and a not insignificant amount of consumer electronics). Plus another 10k in credit card debt (thankfully at only 6.25%). At least I paid off my car (with student loan money) Then I got commissioned in the Marines but had to wait almost a year before going back on active duty as an officer. But hey, USAA will cut me a 25k commissioning loan at only 3%! That'll let me maintain my lavish lifestyle! I've been back on active duty for 18 months now and I'm still digging myself out; I basically continued buying stupid poo poo, overspending on restaurants and booze throughout my first year because WOOOOO I'M EMPLOYED AGAIN! Credit card debt is gone, 29k left on the loans. I had a ton of fun in college but I don't think I had THAT much fun. Meanwhile my girlfriend is debt-free and doesn't know what to do with all her salary, while she gets to listen to me talk about how I'm still trying to unfuck my dumbness. It's not a point of contention in the relationship (we earn roughly equal salaries) but it does serve to remind me of how stupid I was. ------ Slightly-less-bad-with-money was my roommate last year in Florida (another new officer), who bought a new Harley while still owing on his F-250 truck (that he was dissatisfied with and wanted to replace too). "It's a 7-year loan, but it's only $180 a month!"
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Feb 11, 2015 16:38
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overdesigned posted:
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Feb 11, 2015 16:54
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It looks like I'm 70% overall, but 74% for my age. I was at the 9th percentile until I realized I'm supposed to include the value of my bank-owned house and cars in my assets. Boy, was that a welcome change!
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Feb 11, 2015 17:05
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A guy I know actually got something good out of his 7 year Harley loan. There was a warranty tied into it so when he hit 50-60k miles and the engine fell apart, he got a free rebuild. Nobody else I know racked up that kind of mileage though. Not among the Harley crowd, anyway.
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Feb 11, 2015 17:07
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I'm the 94th for age 25 and 56th percentile for age 60.  GodDAMN America
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Feb 11, 2015 17:49
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If they had that calculator broken down by race, it'd be much more illuminating. 
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Feb 11, 2015 18:21
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Aliquid posted:If they had that calculator broken down by race, it'd be much more illuminating. gently caress.
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Feb 11, 2015 18:52
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Jesus I have 38,000 in my 401k at 28. 97th percentile. My previous job had a stupid good match.
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Feb 11, 2015 18:53
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Chuch posted:According to that calculator, if you have 11k in retirement savings you have more than 50% of 55 year-olds. My 401k just hit that with my employer match 10 days ago. And I'm 33. I now feel slightly better.
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Feb 11, 2015 19:01
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Aliquid posted:If they had that calculator broken down by race, it'd be much more illuminating. Yep. I remember reading a study in college about home ownership among different races and ethnicities in the US. One of the big factors to rates of home ownership is the presence of inherited wealth. If you're white, you're way more likely to inherit some wealth. If you inherit some wealth, you're more likely to own your own home.
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Feb 11, 2015 19:26
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Dessert Rose posted:What makes you think it isn't one now? Metal polish isn't sold in the cosmetics aisle yet. That's about it, come to think about it.
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Feb 11, 2015 19:31
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overdesigned posted:"It's a 7-year loan, but it's only $180 a month!" I'm considering a 12 year auto loan. But there is a method behind my madness. Maybe.
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Feb 11, 2015 19:33
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Comrade Flynn posted:I'm considering a 12 year auto loan. But there is a method behind my madness. Maybe. I'm pretty sure that there's no chance that it's a good idea with an interest rate that is non-zero. Additionally, with a zero percent interest rate the chances of it being a good idea are extraordinarily slim. Why are you considering that?
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Feb 11, 2015 19:36
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Wickerman posted:I'm pretty sure that there's no chance that it's a good idea with an interest rate that is non-zero. Buying one for an investment. I will probably only hold on to it for 12-18 months, so I don't see why I shouldn't keep my payments as low as possible unless I'm missing something. I've made a profit on 15 out of 16 cars.
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Feb 11, 2015 20:12
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Comrade Flynn posted:Buying one for an investment. I will probably only hold on to it for 12-18 months, so I don't see why I shouldn't keep my payments as low as possible unless I'm missing something. I've made a profit on 15 out of 16 cars. I never thought I'd see truck equity in the wild.
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Feb 11, 2015 20:20
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If you're going to profit for sure anyway(???), why would you waste money on any interest at all and not just pay as much as you can? Won't any payments towards the principal come right back to you when you sell it? Do you get 0% interest for some length of time or something? If you're thin enough that the difference in payments isn't coming out of a savings category anyway, or you think that difference would profit more invested in something else, why are you doing it? I guess if you really need a truck for 12 months, pay 0% interest, AND can guarantee a return, there could possibly be some local maximum there but I doubt it.
Jeffrey of YOSPOS fucked around with this message at 20:36 on Feb 11, 2015 |
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Feb 11, 2015 20:30
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That's not investing, that is speculating. If you bought a tow truck and rented it out/drove it yourself to earn a return, that is an investment. If you are buying a car with the expectation that it will appreciate in value (  ), that is making a guess on the collector's market for that car in the future.That's not much different from taking out a loan to buy baseball cards
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Feb 11, 2015 20:49
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canyoneer posted:That's not investing, that is speculating. If a guy successfully and intentionally arbitraged baseball cards 15/16 times (and didn't lose everything he made in the 16th attempt) I'd at least listen to what he had to say. I doubt it's a good idea still but if the track record he cited is accurate, I don't see what grounds you have for not hearing him out.
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Feb 11, 2015 20:51
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cowofwar posted:Even without debt and a kid on the way I don't see how you can make a household work on $30k/yr. A family of 3 on $30k/year can be done. I should know 
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Feb 11, 2015 20:56
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Jeffrey of YOSPOS posted:If a guy successfully and intentionally arbitraged baseball cards 15/16 times (and didn't lose everything he made in the 16th attempt) I'd at least listen to what he had to say. I doubt it's a good idea still but if the track record he cited is accurate, I don't see what grounds you have for not hearing him out. I can see why this sounds a bit insane. Let me clarify a few things. My 401k is maxed out. I own my own home. I have zero debt. I have a bunch of other investments. I have several years of cash in savings. I'm trying to do something fun as another investment and it's something I've done well in the past. I can afford to pay for this cash but it would be a significant chunk. I'm actually curious if my plan is to only own it for a short time, is a 12 year loan a bad idea? If it is I can get a traditional one or, like I said, pay in cash but I'd prefer not to do that given the amount.
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Feb 11, 2015 20:56
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You're going to buy one of those Scat pack dodges thinking they'll increase in value, aren't you? I tried that with a charger daytona. I lost $1/mi.
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Feb 11, 2015 21:14
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Taco Box posted:You're going to buy one of those Scat pack dodges thinking they'll increase in value, aren't you? I tried that with a charger daytona. I lost $1/mi. Haha, no. It's actually a Lamborghini. If you look at what the prices of the Countaches (+300% in 5 years) and Diablos (+100% in 2 years) have done, I'd guess the last of the Murcielago 6-speeds will eventually do the same. Literally the last V-12 manual Lamborghini ever made and there's only 40 of them. I figure worst case it loses 10% of value over 2 years, best case it goes up 50%. Comrade Flynn fucked around with this message at 21:48 on Feb 11, 2015 |
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Feb 11, 2015 21:36
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melon cat posted:The most appalling part is that many of these working retirees had pretty decent incomes and benefits back in their full-time employment days. But instead of saving their money, they opted to buy cottages, expensive bi-annual vacations, the vacation home in Florida and a sweet new Jeep. They figured that the equity in their home would be their retirement fund. Somehow.  God help the ones that have kids that won't/are unable to help out. But enough about that. Not getting health insurance is bad with money: http://www.reddit.com/r/personalfinance/comments/2vjg0x/with_4_days_left_to_enroll_this_year_can_someone/ posted:So, I've checked healthcare.gov and the other 'get covered' sites, and the absolute cheapest healthcare plans I've found are between $175-200/month. It may not be "worth it" if nothing happens, especially since he doesn't get any preventative care at all, but the whole point of insurance is making sure you're not up poo poo creek if something does happen! Haifisch fucked around with this message at 21:42 on Feb 11, 2015 |
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Feb 11, 2015 21:39
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I'm confused. Why is there a tax hit if you don't have health care? I should think if you can't afford health care, you can't really swing tax bills either. Who thought that was a good idea? Or am I missing something?
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Feb 11, 2015 21:51
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Taco Box posted:I'm confused. Why is there a tax hit if you don't have health care? I should think if you can't afford health care, you can't really swing tax bills either. Who thought that was a good idea? Or am I missing something? Did you miss the entirety of the ACA being passed? There's a mandate, but if you are deemed to not make enough money to pay for even subsidized insurance, you don't get taxed for not having insurance.
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Feb 11, 2015 22:01
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Taco Box posted:I'm confused. Why is there a tax hit if you don't have health care? I should think if you can't afford health care, you can't really swing tax bills either. Who thought that was a good idea? Or am I missing something? https://www.healthcare.gov/fees-exemptions/fee-for-not-being-covered/ posted:What happens if I don't pay the fee?
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Feb 11, 2015 22:04
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I never realized how quickly cars do depreciate in value until I bought one. It's a 2010 that I bought in late 2013. I'm way above water on the loan, so it's not like that, but it is slightly tempting to sell it and buy a $6k used car instead. But I do loooove my car and plan on driving it for a very long time. Hopefully long enough that I will have the cash saved up for the next one by the time it croaks.
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Feb 11, 2015 22:14
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I'm paying $232/month out of pocket for private health insurance because it's the only thing that will cover the jaw surgery that I need. Still a $6300 deductible, but hey it's HSA compatible  Or I guess I could just travel to India to get the surgery done. onemillionzombies fucked around with this message at 22:18 on Feb 11, 2015 |
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Feb 11, 2015 22:16
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Thesaurus posted:A family of  
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