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FISHMANPET posted:Where I rent from now, there's a flat fee to pay with a credit card, $35 I think. Not worth it for my rent, but if yours is high enough it might even out, even if you have to pay a fee. $35 is less than 1.05% of my rent, so if I could get back 2%, or better, airline miles, I think I'd be coming out ahead, right?
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Dec 31, 2015 03:39
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Hadlock posted:$35 is less than 1.05% of my rent, so if I could get back 2%, or better, airline miles, I think I'd be coming out ahead, right? Your rent is $3500? 
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Dec 31, 2015 03:54
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I try not to think about it too hard. The rental market in San Francisco is insane. Everyone here might as well live on a different planet.
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Dec 31, 2015 04:29
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I live in some ex intern's mom's house in a spare room for $500/month and commute an hour to work. Just hate yourself a
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Dec 31, 2015 04:30
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Yeah my salary was negotiated against the cost of living in SF, despite the office being almost an hour south of the city. I'm banking pretty hard that by this time next year, either the venture capital market dries up and craters the rental market, or I meet some girl wiling to split the rent with me. Twitter, Microsoft and Yahoo are all bleeding off employees fast right now and so hopefully things will stabilize in the next 6-8 months. I did the whole room with 3 other people and renting rooms from other people in my 20s, living solo like a goddamn adult is expensive 
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Dec 31, 2015 04:45
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Hadlock posted:or I meet some girl wiling to split the rent with me oh haaaaaay how do you feel about cats?
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Dec 31, 2015 07:19
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I'm trying to figure out if I should stop paying into my Roth IRA and instead put all my money into trying to pay off my student loans. I recently changed jobs and first put money into the 401K, but I've stopped that for now because we get no match until after we've been there for 1 year and I can change it to go up to the match the month before i've been there a year. The only other hard debt I have is a car loan at 1.75% interest, so I'm not too worried about paying that off quickly. It runs about 230/month. No CC or other consumer debt, and we rent. Currently: Student loans: $27,000 at 5.75% interest, consolidated a long time ago from when I couldn't pay the monthly standard repayment amount. Currently paying $250/month. Estimated ~ 12 years 9 months to pay off... Roth IRA: $150/month at vanguard, target retirement 2050. 401K: ~400/month (if 2 paychecks, paid biweekly, based on 6% salary. Through Fidelity, picked something akin to the Vanguard IRA but has a much higher expense ratio. If I stay a year, the match is 0.5% for each 1% you put in up to 6%, but that match vests at 25% every year for 4 years. Seems like bullshit since I doubt I'll be there over 2 years. How it's set up for Jan 2016: Student loans: No change currently Roth IRA: $450/month at vanguard, target retirement 2050. 401K: ~70/month (left 1% going in) What I'm thinking lately is since the student loans are at 5.75%, maybe I'm better off long-term reducing debt over increasing the IRA. I'm curious to know what other people would do.
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Dec 31, 2015 15:10
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I was just having the same "crisis" as you, but went with throwing money towards debt. However, in my case, it was at a 7.29% auto loan that isn't tax deductible like student loan interest is. I think the way you set it up going forward is the way to go. Max the IRA, rest towards student loans. Does your employer offer an HSA? Worth checking out.
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Dec 31, 2015 15:48
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I have read over the OP and I just wanted to put a general query here regardless about Credit Scores and such because its still weirding me out existentially if not financially. I am an American citizen with a SSN from birth who has been out of the country for pretty much the entire of the last 17 years. I am back and still just sort of 'figuring out' how normal and embedded concepts of credit scores, private credit monitoring agencies exist and work here- I don't think I have any problems/have been making good financial choices but well it just feel strange. I have arrived back and only as of a week ago and only just today I have paid my first utility bill in my name on it that is associated with my SSN (I still found it very strange giving over my SSN at a retail internet provider, but I am told this is commonplace). I have had my name on a credit card tied to a parents account here in the USA for at least a few years. My first attempt at receiving a free credit score from the three major agencies basically didn't work or pulled up a null result - the forms seemed to have an issue computing the fact I have been abroad given my answers to questions. Should I bother finding out or just leave it? It appears I "have credit here" given the response of the guy at Comcast so I guess I should just forget about it and pay my bills unless I was preparing to buy a house or something?
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Jan 2, 2016 22:22
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You probably have a "credit report" since your name is on a card, but with almost no activity, especially not in the past 7 years, there may not be enough information to compute a "score." You're basically starting from scratch, so if you want credit in the future, you may want to get a credit card and start using and paying it off regularly to start building some credit again.
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Jan 2, 2016 22:28
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FISHMANPET posted:You probably have a "credit report" since your name is on a card, but with almost no activity, especially not in the past 7 years, there may not be enough information to compute a "score." You're basically starting from scratch, so if you want credit in the future, you may want to get a credit card and start using and paying it off regularly to start building some credit again. Thank you.
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Jan 2, 2016 22:35
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The comcast thing may be programmed to accept anything over a credit score of ~525 or null credit. They're likely just trying to calculate how likely you are to walk on your comcast bill. If your chances of walking are too high, they would have charged you a deposit ($100 or something like that). When I had crappy credit, I had to pay a $500 deposit to get electric setup at my apartment. If you want a credit history to generate a credit score, one of the easiest routes would be getting a secured credit card, when I got mine the minimum amount was something incredibly low, like $46 USD. The credit card thread has a default recommended secured card, I think form Capital One, I went with that one. Hadlock fucked around with this message at 22:40 on Jan 2, 2016 |
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Jan 2, 2016 22:38
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Hadlock posted:The comcast thing may be programmed to accept anything over a credit score of ~525 or null credit. They're likely just trying to calculate how likely you are to walk on your comcast bill. If your chances of walking are too high, they would have charged you a deposit ($100 or something like that). When I had crappy credit, I had to pay a $500 deposit to get electric setup at my apartment. Hey thank you as well- Just checking/about to head to that thread- secured card means something like pre-pay or requires some regular usage?
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Jan 2, 2016 22:45
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Yeah it's "pay to play" You put $100 on a secured credit card, and then you have a credit card with a $100 limit. If you only put $75 on the card, then you only get a credit limit of $75. I think I ended up putting $500 on mine, so I could put all my monthly bills on it, plus a little head room.
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Jan 2, 2016 23:11
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Jacobin posted:Hey thank you as well- A secured line of credit, generally speaking, means that there's some collateral the bank can take back if you don't pay up. Most credit cards are unsecured. A secured card requires that you put down a deposit on opening, typically equal to the credit limit. If you stop paying on the card, the credit card company keeps your deposit; if you close the account in good standing, you get the deposit back. Otherwise, they're identical to a normal credit card. The best strategy is to have a secured card for a little while (maybe a year), with moderate utilization and perfect on-time payment history. At that point you should be OK to open an unsecured card. If you have a bank where you've had a significant account in good standing for a while, go apply for a credit card with them. You'll probably get denied by whatever automated system they have in place, but if you ask for reconsideration, you can talk to a human being who will take your relationship with the bank into account and may be able to sign you up for a secured card (or, if you're lucky, maybe even an unsecured one). Discover is also supposed to have a pretty good secured option, although you can't apply for it directly without going through the reconsideration process. Never do pre-pay, not even once. They're poorly regulated high-fee poverty traps for people who can't or don't want to get a credit card or debit-linked checking account, and do nothing to help build credit.
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Jan 2, 2016 23:12
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Figure I'd through a question out here. So I'm about to start a job making about $120k/year. My wife does not work, and we have two kids. We have an extremely simple life style, two kids, one car, no debt (besides a car payment). I'm 33, and she's 34. I have $15k in savings, 15k in my 401k (didn't start one until a few years ago, I'm contributing the employer match max), and 2.5k in one kids 529, and then I'm starting a 529 for the other kid now. Our monthly fixed bills are about 2200, including rent. My monthly take home now is about 5500 (after taxes). At my new job, it'll be about 6500/month after tax. I'm on a good track, and for the past two years we've gone from 0 in savings to what we have now. We'd like to buy a house. At my current rate of savings, I can save probably 30k a year for two years and have the 20% downpayment for a suitable house in our area. While still sitting on 10k in savings. I'm on track for that, no problems, however, I have the money sitting in the bank, it's in an online higher interest account (Amex savings, 1% APY, which is decent), but I'm wondering if I can peel out 5-7k of it and put it in a Mutual Fund and maybe make it work for me harder for the next two years. Like overtime I hit 5k i surplus send it over. Maybe if I can make more than 1% on it for a couple years it'll be a few more grand for me to put towards a house when I pull it out. Also can't I spend my 401k on a first time mortgage? I figure it's worth it to get another little bump towards the 20% down payment magic number.
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Jan 4, 2016 21:09
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It's generally a bad idea to put money that you're planning on spending within the next 3-5 years into any sort of risky investment; I think most people around here would advise you to simply park the house savings in a savings account until you're ready to buy. A market shift could just as easily set you back as forward. If you're willing to tolerate the risk of a loss, then sure, go for it. I think your best bet is just to keep everything in a savings account; 2 years is a very short time horizon for a house down payment anyway, so it likely wouldn't make much of a difference even if you did relatively well. You can borrow against up to half of the value of your 401k or $50k, whichever is less. At this point, that's hardly worth it for you, as you could probably sock away that $7.5k from your income in a couple months. The only way to get more out of it is to actually pull money out of the account, which incurs immediate taxation as income on top of a 10% penalty on the amount withdrawn. Most people would heavily advise against this, as there's no way to replace the tax-free growth of the money that is already in that account, due to yearly contribution limits. Will it really make a huge difference if you can buy a house in 24 months rather than 27? Not a Children fucked around with this message at 21:29 on Jan 4, 2016 |
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Jan 4, 2016 21:27
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Not a Children posted:Advice Thanks, this reinforces what I already thought. Right now it's in an American Express Savings, the APY is .90%. Google searches show me some backs are up above 1%, maybe it's worth moving it? Is there a goon-preferred savings account?
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Jan 5, 2016 00:52
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I use Ally Bank for my savings, since I don't usually have more than $3k in savings at any point (I'm here so I can fix that  ) and it still earns interest at 0.99%. It might be worth your time to compare rates at bankrate.com since you seem like you will earn enough to get into some of the places that require a minimum deposit to open an account. I don't hear many complaints about Ally, but the main thing is that they don't work well as emergency savings accounts because you can't access your Ally account at ATMs and it can take a couple of business days to withdraw money from Ally if you suddenly need cash.You could also put your money in a CD--if you save a good amount, you might be able to to find a 12-month CD that would earn a little more interest than some savings accounts. You'll get penalized if you take money out of the CD for any reason, but if you are confident that you won't need that chunk of savings, there might be some rates that you can compare at bankrate.
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Jan 5, 2016 01:20
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SIR FAT JONY IVES posted:Figure I'd through a question out here. So I'm about to start a job making about $120k/year. My wife does not work, and we have two kids. We have an extremely simple life style, two kids, one car, no debt (besides a car payment). I'm 33, and she's 34. You guys sound like you are in really good shape. I agree that a money market is your best bet, but I don't think saving 20% is an absolute necessity to buy a house. You can get a conventional mortgage with only 5% down. 20% is great, you avoid paying PMI, but the rate you are able to save money means you can aggressively pay down your mortgage really quickly so you won't be paying it for very long. The downside of not putting down 20% is the cost of the PMI. The upside is you get into an appreciating asset sooner, you get the tax benefits and you stop paying rent. I would also pay off your car loan prior to buying too, as you will have more margin in your life without the car payment. It is totally worth shopping around for a better rate. As long as they are FDIC insured they are all pretty much the same
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Jan 5, 2016 02:24
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Question about moving countries and investing. I just moved from Ontario Canada to Hawaii USA. Here's our layout: - we have $80k in cash (in a savings account) still in a Canadian bank account we want to move to the USA to invest. this cash is the result of having to have unbundling some of our investment vehicles in Canada (called TFSAs) for tax purposes. - I make $100k salary and roughly $50-100k a year in bonuses + dividends in the company. Wife makes $60k year salary. - I've got a 401(k) set up for a 5% matching from my employer, but it's only been running for a couple months so it's minimal. - I'm in the country on an L-1A visa (a management visa) and wife's on an L-2. We had zero credit in the USA when we moved, which proved challenging, but we managed to lease a Ford Escape @ $280/mo + get an Amex card, due to our good Canadian credit. - We have a house in Canada we're renting. Turns out we can't pull equity out because we are now deemed residents in the USA so it's not allowed. - We want to buy a house this year, but we want to wait to get good credit before buying a house. Our down payment would be roughly $100k, meaning we can get a house for $500k if we have 20% down. Here's my questions: - Is there any way to "transfer" Canadian credit to the USA so we can get a good interest rate on our mortgage? Note that Hawaii doesn't have any of the "major" banks (i.e. Citi, BoA, etc.). We have accounts at First Hawaiian Bank, which seems like the best bank on the islands. - How long does it take to build good credit from zero? We have TV, internet, utilities, auto and an Amex as forms of debt that we pay off extremely well. - What's the best way to check your credit in the USA? - What's the best way to save for a house? Do you just put in a savings account until you can get the money out? Can you put in a 401(k) and take out without incurring any penalties? - How do you guys save for houses? Do you still max out 401(k)'s + Roth IRAs before setting any money aside for housing down payments? - I know this isn't the real estate thread, but does the USA have the some mortgage insurance if you put a low down payment on a house? In Canada if you have less than a 20% you have to get private mortgage insurance and then this increases your monthly costs. So in essence we'd like to get a mortgage without PMI - what's the minimum threshold? Are there exceptions if you have good credit? Thanks. Any other stuff to know moving to the USA would be appreciated. Rocks fucked around with this message at 03:15 on Jan 5, 2016 |
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Jan 5, 2016 03:06
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Zeta Taskforce posted:You guys sound like you are in really good shape. I agree that a money market is your best bet, but I don't think saving 20% is an absolute necessity to buy a house. You can get a conventional mortgage with only 5% down. 20% is great, you avoid paying PMI, but the rate you are able to save money means you can aggressively pay down your mortgage really quickly so you won't be paying it for very long. The downside of not putting down 20% is the cost of the PMI. The upside is you get into an appreciating asset sooner, you get the tax benefits and you stop paying rent. The car is a lease, we only have the one car, and no family in the area to borrow a car from in the event of a breakdown. I've had paid off late model cars and I was tired of the hassle of having to work around maintenance and breakdowns, so a $350/month lease for a family size car is more than reasonable to avoid that problem. I'm always leery of getting a house without a downpayment. In our area, a home in our size range is about 325-350k, so a 5% is $17,500. I have that now, but it'll completely wipe out my savings, maybe I can save for this year, and have 15k nest egg, and then 20k for the house and seriously think about going on one with only 5-7%?
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Jan 5, 2016 03:32
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SIR FAT JONY IVES posted:The car is a lease, we only have the one car, and no family in the area to borrow a car from in the event of a breakdown. I've had paid off late model cars and I was tired of the hassle of having to work around maintenance and breakdowns, so a $350/month lease for a family size car is more than reasonable to avoid that problem. I'm not going to convince you that leases are a bad idea and that cars don't become maintenance and breakdown pits a few years after you buy them, but either way it's not a huge part of your world. I'm going to drop it. You're not ready to buy today, January 4th, 2016, but you probably will be once you can put down 5 to 7% and still have your emergency fund. Don't forget moving costs and the fact that you will be making daily trips to the furniture store, Home Depot and Bed Bath and Beyond for months after you buy. Curtains are not an emergency, so in real life saving $20,000 plus your emergency fund is probably thin, but I don't think you need to save $70,000 either. The truth is probably somewhere in between but probably closer to $20K vs $70K and partly depends on how much you like your existing furniture.
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Jan 5, 2016 03:45
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 note: this is poorly worded lmbo Along the lines of SIR FAT JONY IVES, I've been trying to figure out the best use of my money in the short to medium term. My income isn't sky high, but neither are my expenses, so excluding discretionary income, I have about $3,000/month to play around with. I could: Start contributing to the max in my HSA, Roth 401k, and Roth IRA accounts, with $1,200/month or so left over to pay down debt (5,900 at 7.29% car loan and average of 5.5% 26,900 student loan) I would pay more interest now, be in debt longer, but worry less about where I'm at with regards to retirement. Or, pay off the car loan first, then the higher rate (6.5%) portion of student loans within a year, then max retirement accounts going forward. I would save more on interest, but lose a year's worth of tax-advantaged space. A couple things to consider: -My income will be going up.. eventually. Once I pass the CPA exam. I can always pay more toward debt in the future, but have only so much room to contribute to retirement each year. -I would really like to buy a house within the next several years, but no more specific time frame other than that. Once I'm done paying down debt, I still won't be able to afford both a substantial down payment and maxed retirement accounts yet, so I'm considering just putting as much as possible into the Roth IRA (rolling over Roth 401k once I switch jobs) to possibly serve as a portion of the down payment because of the flexibility it offers. I can either leave it in there to grow, or take some out for the down payment. I am fully aware that BFC and other financial communities stress not keeping your down payment in something that could lose value, as well as not taking money out of your retirement accounts, but the way I look at it is, yearly contribution is use it or lose it, and I might change my mind and put off a home purchase longer. I essence, for an arbitrary figure of $10,000, I could put $5,000 in an IRA and $5,000 in savings for a house, but I'd kind of rather go with $10,000 in the IRA, with the option to take it out. If it lost a substantial amount, of course, I would just leave it. Zeta Taskforce, you know the Boston market- got to have a substantial down payment around here. 
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Jan 5, 2016 04:54
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Moneyball posted:
In Boston you pretty much need to be married in order to buy. At least we've been able to gay marry for about 12 years so at least its open to everyone, but can't be done on one income. If you're single I hope you get along with your roommates If I were you I would take advantage of any matching retirement money but don't do any savings beyond that. Put everything else into paying off debt. 7.29% on a car loan isn't quite subprime, but it's not far, and 5.5% on a student loan is high too. Guaranteed return paying those off. You'll still be fine if you miss a couple yearly contributions. It's not a contest and between your HSA, IRA's and Roth 401K's you will be able to save tens of thousands of dollars a year once you are debt free.
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Jan 5, 2016 05:37
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There's some dumb app that advertises on BART about how you can use it to pay rent on CCs or Debit and they mail a check for you. Don't know what it costs, but there's and app just for loving assholes like you pricing me out of my hometown!
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Jan 5, 2016 06:05
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I'm not sure if I should post a personal thread. I'd hate to ask people for advice then get distracted and abandon the thread. After 10 years in high-pay, high-stress jobs I have managed to save up a decent amount. Now for health reasons I need to make some big changes to my lifestyle, and I want to do this as responsibly as I'm able. But I know _nothing_ about financial management at all and I'm trying to ask as many questions and learn as much as I can. My goals for 2016 are: * Be unemployed by March 30th * Spend 6 months living frugally and pursuing my own interests * When I do go back to work I will be looking for jobs that are much lower stress and will likely be lower paying as a result * Not have to move Assets: 401k - ~$25k and I don't need to touch this at all Brokerage - ~$250k Checking/Saving - ~$20k 2x 10 year old cars - paid for Apartment - rental I've started writing down everything we spend so I can make a real budget. For now our monthly bills add up to approximately $2,500 as so: Rent Car Insurance/Registration Gas Internet Gas/Electric Phones for self and spouse ** Sundries and some food come through Amazon, I'm applying for the 5% rewards card now and intend to pay off the full balance every month. ** Food budget will need to go way down, especially restaurants, but I like cooking and can probably better manage costs with more free time to devote to menu planning. ** Fuel budget will presumably go down since I won't be doing daily commuting. Debt: NONE! No really! No credit card balances, no student loans, no car or mortgage payments, no children. I'm going to be asking Fidelity and my bank for as much free planning advice as they'll offer, but some specific things I'm wondering about are: 1. Currently we're with Fidelity, and the brokerage account is all stock in a single company. After I quit I want to convert this to something extremely low risk. Assuming I do not want a high-activity brokerage account and I won't be making lots of changes to the asset spread, should I stay with Fidelity or move to Vanguard? My understanding is that Vanguard has a lower rate per transaction but I'm not sure that impacts my goals really, and I want to balance that against the risk and/or task burden involved in moving to a different firm. I've read that Fidelity expects you to sell all your assets through them and then just move over pure cash, and I'm concerned that I would take a tax hit on the sale because a lot of the assets will have only vested in 2016. 2. I'd like to better understand the tax implications of making changes to the brokerage account since any change I make will involve selling my current stock. Should I open an IRA? If I sell stock but then buy bonds or whatever the hell is the sale taxed as income right away even though I'm not pocketing the return from the sale? I don't need quick access to most of the $250k, I should be able to cover most living expenses off the $20k in the bank. 3. I will need to figure out health insurance since I won't be insured through my job any more. If I have no income in 2016 and file for health insurance through CoveredCA will my income be counted as what I made in 2015? If I don't qualify for a subsidy it looks like the cheapest Kaiser plan available to us will be ~$450 a month. If that's my only option would it actually be cheaper to just not have insurance and pay a tax penalty in 2017? Would the tax penalty be more than $450 x 12 months?
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Jan 5, 2016 06:29
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lol if you posted:
Of all the things you've got going on, this one seems like the first one to address. I'd say start your own thread, you have a lot to work through it looks like.
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Jan 5, 2016 06:40
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The brokerage account is all equity vesting/vested from when the company went public. As long as I still work there I can only trade with it during limited windows every quarter. I for sure do not plan to keep it in that as soon as I can do so without triggering any insider training inquiries. I am pathologically risk averse and I'm very mindful of how fragile that stock is.
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Jan 5, 2016 07:36
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lol if you posted:The brokerage account is all equity vesting/vested from when the company went public. As long as I still work there I can only trade with it during limited windows every quarter. I for sure do not plan to keep it in that as soon as I can do so without triggering any insider training inquiries. I am pathologically risk averse and I'm very mindful of how fragile that stock is. That's grounded and well thought out, then. Don't be so hard on yourself with "But I know _nothing_ about financial management at all".
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Jan 5, 2016 08:01
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SpelledBackwards posted:That's grounded and well thought out, then. Don't be so hard on yourself with "But I know _nothing_ about financial management at all". Is it? Blackout periods are normal, that doesn't make any sense out of leaving $200k+ into a single stock. Unless he's in upper management of some sort, I didn't think he had to be worried about insider trading, but I could be wrong.
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Jan 5, 2016 08:09
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Zeta Taskforce posted:In Boston you pretty much need to be married in order to buy. At least we've been able to gay marry for about 12 years so at least its open to everyone, but can't be done on one income. If you're single I hope you get along with your roommates Living at home and not married. Moved back at the beginning of 2015 to save money, and especially the last few months, I have done so. I'm pretty optimistic about the way things are going with my girlfriend and could see moving in together in the next year or two, but until that decision is made, the plan is to either save more and get a single family home (gently caress HOA fees) or get a condo but rent a room out, though I heard that's often hard to get by the HOA. I get no match on 401k contributions, so I guess the next $21,000 I get will be going towards, at a minimum, 5.8% "return" by paying off those loans. Once I get my loans to the point where the rate is just over 3%, I'll resume retirement/house saving. Really, the only large purchase remaining in life is my first home, and I can easily afford it month to month, but the issue is qualifying.
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Jan 5, 2016 13:54
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lol if you posted:The brokerage account is all equity vesting/vested from when the company went public. As long as I still work there I can only trade with it during limited windows every quarter. I for sure do not plan to keep it in that as soon as I can do so without triggering any insider training inquiries. I am pathologically risk averse and I'm very mindful of how fragile that stock is. Did you have a ton of student loans to pay off or something? Maybe it is just me but that amount of non-equity savings seems low for 10 years in a high pay, high stress career. Especially since it seems like you might have two incomes and no other serious liabilities. 2,500 a month seems reasonable for the expenses you have listed but I would have thought there would be a lot more surplus every month to put into savings.
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Jan 5, 2016 14:35
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Blinky2099 posted:Is it? Blackout periods are normal, that doesn't make any sense out of leaving $200k+ into a single stock. Unless he's in upper management of some sort, I didn't think he had to be worried about insider trading, but I could be wrong. However, that statement doesn't hold water for the OP as you can liquidate as soon as you're out of the blackout Windows! I would divest ASAP.
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Jan 5, 2016 22:15
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Say you have $5mil from the lottery or a dead uncle or something. Can you just put it in a managed payout fund and live off that for the rest of your life? The calculator here says $5mil is about $16,000 a month. Seems almost too easy. https://investor.vanguard.com/mutual-funds/managed-payout/#/
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Jan 6, 2016 18:01
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Lysandus posted:Say you have $5mil from the lottery or a dead uncle or something. Can you just put it in a managed payout fund and live off that for the rest of your life? The calculator here says $5mil is about $16,000 a month. Seems almost too easy. Yep. Or a target date fund and take withdrawals, etc. It is easy! You just need a large lump sum.
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Jan 6, 2016 18:06
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I am not sure that I would call it 'easy', given that getting that lump sum is not trivial (barring the lottery or a dead uncle, which are pretty tricky to arrange). It's not complicated though; once you have a big pile of money, you can just live off it.
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Jan 6, 2016 18:19
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Lysandus posted:Say you have $5mil from the lottery or a dead uncle or something. Can you just put it in a managed payout fund and live off that for the rest of your life? The calculator here says $5mil is about $16,000 a month. Seems almost too easy. I mean... this is how retirement works. You save up money, then once you have enough, you stop working and live off of it. If you're young and it's a windfall, though, you do need to take things like the rising cost of medical care and inflation into account.
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Jan 6, 2016 20:12
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Is the monthly payout on that investment taxable?
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Jan 6, 2016 20:52
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| # ? Jun 8, 2024 03:50 |
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Lysandus posted:Say you have $5mil from the lottery or a dead uncle or something. Can you just put it in a managed payout fund and live off that for the rest of your life? The calculator here says $5mil is about $16,000 a month. Seems almost too easy. Sure, that would be an option. But hopefully you would think of your family, of the poor people around you and kids in places like Haiti and what you can do to help the poorest people in the world with a portion of your windfall. And ideally you would find something to do that had a purpose, even if it wasn't paid employment. Otherwise you would be an example of a wasted life and wasted potential for the good that money could do, but it's not you would be breaking any laws. Unless you used the money to drive you Maserati 120 miles/hr after a coke fueled orgy.
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Jan 6, 2016 20:55
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