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I don't actually think its possible to spend > $400/mo on gas in New York. Even driving a land cruiser to work every day getting single digit miles per gallon you're just not traveling far enough.
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Mar 24, 2017 18:00
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ego symphonic posted:I don't actually think its possible to spend > $400/mo on gas in New York. Even driving a land cruiser to work every day getting single digit miles per gallon you're just not traveling far enough. Not if you drive across the backs of the poor everywhere you go.
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Mar 24, 2017 18:01
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Not to play devil's advocate here but New York City isn't just Manhattan. You can have a 15 mile commute and still live/work in NYC.
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Mar 24, 2017 18:03
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Nail Rat posted:Not to play devil's advocate here but New York City isn't just Manhattan. You can have a 15 mile commute and still live/work in NYC. Even if you're driving 600 miles a month at 9mpg with premium fuel at $2.70/gal that's still under $200 per month. The point being that this stupid, fake budget still has to exaggerate to make its bad, incorrect point.
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Mar 24, 2017 18:13
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ego symphonic posted:Even if you're driving 600 miles a month at 9mpg with premium fuel at $2.70/gal that's still under $200 per month. The point being that this stupid, fake budget still has to exaggerate to make its bad, incorrect point. Yeah but if they're spending 6k on 3 separate vacations they're almost certainly driving to other states on the weekends to escape the harsh reality of their existence.
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Mar 24, 2017 18:16
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Nail Rat posted:Not to play devil's advocate here but New York City isn't just Manhattan. You can have a 15 mile commute and still live/work in NYC.
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Mar 24, 2017 18:17
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ate all the Oreos posted:Serious question, what's the end goal with plowing a massive amount of money into retirement? Like I contribute to my retirement accounts enough so that (as far as I can tell) I'll be OK by the time I retire even if I live to 100, and I can see wanting to put in more than that as padding, but I know some people that put a lot more than that in, while making less than me. Is the goal to put in enough that you can retire early despite the penalty for doing so, or are they just planning to spend the last ~10 years of their not decrepitly old life partying as hard as they can? If you retire early can that even be made worthwhile (as in the penalty doesn't eat all the money you made, leaving you worse off than if you had just used normal investment accounts) 401ks can be withdrawn from at any age, the penalties only kick in if one tries to withdraw the entire balance at once and put it into a post tax account. Someone plowing tons of money can start a program of withdrawing Substantially Equal Periodic Payments at any time, however the payments must: - Realistically be sustainable for the individuals lifespan. - Not be modified for the first 5 years, or until the individual has reached age 59.5, whichever comes later. That doesn't ACTUALLY mean you get the exact same amount out and gets into arcane IRS rules about how you must calculate your SEPP distributions, but long story short, it's not silly to plow tons of money into a tax advantaged account if you hate working.
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Mar 24, 2017 18:20
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Bhodi posted:Literally millions of people manage to do it every single workday. MTA daily commuters is something like ~5m people I'm not saying they should be driving, I'm just saying they could be CHOOSING to drive more than single digit distances each day.
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Mar 24, 2017 18:24
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Dwight Eisenhower posted:401ks can be withdrawn from at any age, the penalties only kick in if one tries to withdraw the entire balance at once and put it into a post tax account. Someone plowing tons of money can start a program of withdrawing Substantially Equal Periodic Payments at any time, however the payments must: How is inheritance from a retirement fund handled? Are there withdrawal limits once you're at the right age? It could be a tax-free investment to pass on to your kids. Hopefully within a year I can start putting money into an IRA, but right now it's all 20% credit card and E-fund. Mid-20s isn't too bad in the grand scheme of things, is it? 
22 Eargesplitten fucked around with this message at 18:29 on Mar 24, 2017 |
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Mar 24, 2017 18:27
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22 Eargesplitten posted:Hopefully within a year I can start putting money into an IRA, but right now it's all 20% credit card and E-fund. Mid-20s isn't too bad in the grand scheme of things, is it? I started saving for retirement at like 29.5 and I still had a massively underwater condo, so you're already ahead of me!
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Mar 24, 2017 18:29
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22 Eargesplitten posted:How is inheritance from a retirement fund handled? Are there withdrawal limits once you're at the right age? It could be a tax-free investment to pass on to your kids. I turn 30 in a month and I've only gotten my poo poo together in the last two years, don't you loving start with me about "Oh noooo I don't get to save money until I'm 25!!!!  "
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Mar 24, 2017 18:31
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Sorry, that's was like a BWM/poor humblebrag. I just always see those charts of "Oh, if you don't start investing in your IRA when you're 22 you lose out on a hundred thousand dollars!" Or whatever it is.
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Mar 24, 2017 18:33
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Remember how many people don't max their IRA every year, let alone any serious savings, and I'd say you're probably going to be fine. The bar you need to clear to be effective with your money is so depressingly low that the only really entertaining thing to talk about in the BWM thread is snakes, underwater houseboats, and equine law.
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Mar 24, 2017 18:35
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ate all the Oreos posted:Serious question, what's the end goal with plowing a massive amount of money into retirement? Like I contribute to my retirement accounts enough so that (as far as I can tell) I'll be OK by the time I retire even if I live to 100, and I can see wanting to put in more than that as padding, but I know some people that put a lot more than that in, while making less than me. Is the goal to put in enough that you can retire early despite the penalty for doing so, or are they just planning to spend the last ~10 years of their not decrepitly old life partying as hard as they can? If you retire early can that even be made worthwhile (as in the penalty doesn't eat all the money you made, leaving you worse off than if you had just used normal investment accounts) Partially because I am not a big spender anyway, but also because being able to retire early if I wanted. Even being able to live a long time without working can be beneficial - my SO is not in good shape and I could, if she needed me to, quit and take care of her full time without having to worry at all about money.
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Mar 24, 2017 18:37
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22 Eargesplitten posted:How is inheritance from a retirement fund handled? Are there withdrawal limits once you're at the right age? It could be a tax-free investment to pass on to your kids. I have no real clue as I've never looked into it seriously. A brief perusal suggests that your inheritors can: - Pay income tax on it, but no penalty. - Transfer it to other tax-advantaged accounts of yours they inherit. If they choose to continue deferring taxes after your death by not taking it as income, they will have to start taking minimum distributions from the account, calculated based on their own life expectancy.
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Mar 24, 2017 18:38
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ate all the Oreos posted:Serious question, what's the end goal with plowing a massive amount of money into retirement? Like I contribute to my retirement accounts enough so that (as far as I can tell) I'll be OK by the time I retire even if I live to 100, and I can see wanting to put in more than that as padding, but I know some people that put a lot more than that in, while making less than me. Is the goal to put in enough that you can retire early despite the penalty for doing so, or are they just planning to spend the last ~10 years of their not decrepitly old life partying as hard as they can? If you retire early can that even be made worthwhile (as in the penalty doesn't eat all the money you made, leaving you worse off than if you had just used normal investment accounts) Bhodi fucked around with this message at 18:44 on Mar 24, 2017 |
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Mar 24, 2017 18:42
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22 Eargesplitten posted:Hopefully within a year I can start putting money into an IRA, but right now it's all 20% credit card and E-fund. Mid-20s isn't too bad in the grand scheme of things, is it? This is the best time to start, early in your career. Not only does it have a long time to grow, but also you learn to live on less (i.e. be GWM) which means you don't get into the habit of spending all your money on stupid poo poo. It doesn't matter how much money you make if you spend it on stupid poo poo, see the person whining about $500K/year not being enough.
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Mar 24, 2017 18:42
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Twerk from Home posted:I'm gonna weigh in here. I don't want to overshare, but my wife and I hyper-saved before we started having kids because we could. Now, childcare costs more than our mortgage and we are no longer able to hypersave. In fact, if we hadn't plowed in nearly 50% of our income to retirement savings before having kids, we'd be falling behind rapidly. Ah I didn't think about this, thanks Dwight Eisenhower posted:401ks can be withdrawn from at any age, the penalties only kick in if one tries to withdraw the entire balance at once and put it into a post tax account. Someone plowing tons of money can start a program of withdrawing Substantially Equal Periodic Payments at any time, however the payments must: I had no idea you could get any money out of a retirement account without it being a loan or without getting a chunk lopped off, huh. Does this work for Roth accounts too? ego symphonic posted:Even if you're driving 600 miles a month at 9mpg with premium fuel at $2.70/gal that's still under $200 per month. The point being that this stupid, fake budget still has to exaggerate to make its bad, incorrect point. Psh "premium" fuel, A true refined gentlemen only puts that $10/gal race car fuel in their car, any less is downright savage 
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Mar 24, 2017 18:50
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Bhodi posted:it's not just the destination; after a few years of saving you get to give the middle finger to lovely jobs and shop around for good ones because you know you could live for years on savings if necessary so there's absolutely no pressure to take a not-perfect job (making deece figgies, of course) Yeah I get why you should save in general I've just always wondered why people prioritize retirement accounts so much, but clearly I didn't know how they actually worked 
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Mar 24, 2017 18:51
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Not a Children posted:REV UP THOSE CALCULATORS 
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Mar 24, 2017 19:03
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ate all the Oreos posted:Yeah I get why you should save in general I've just always wondered why people prioritize retirement accounts so much, but clearly I didn't know how they actually worked Rich people with horses have made tax-advantaged accounts a Very Good Thing to put your money in if you're smart with it.
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Mar 24, 2017 19:06
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ate all the Oreos posted:I had no idea you could get any money out of a retirement account without it being a loan or without getting a chunk lopped off, huh. Does this work for Roth accounts too? You can withdraw your contributed capital from a Roth IRA at any time penalty free. Caveats: - If you draw down below what you contributed and are now withdrawing gains you probably have to pay tax and penalties - If you withdraw you don't get that contribution space back, so there's no making it up later if you were counting on max contributions every year.
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Mar 24, 2017 19:16
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Retirement tips and tricks are GWM and probably belong in Long-Term Investing and Retirement Savings: Edward Jones is a ripoff or maybe even Financial Independence: Methods, Mindsets and Maddening Frugality.
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Mar 24, 2017 19:24
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Tbqh being able set your kids/grandkids up for life would be pretty great too.
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Mar 24, 2017 19:27
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Residency Evil posted:Tbqh being able set your kids/grandkids up for life would be pretty great too. gently caress those grubby little bastards if I had it hard you should have to have it hard too 
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Mar 24, 2017 19:28
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ate all the Oreos posted:gently caress those grubby little bastards if I had it hard you should have to have it hard too I agree with the sentiment but I'm also thinking that getting a "head start" with inherited wealth is going to make their opportunities in 20 years pretty much even with what mine were at their age, starting without any inherited wealth. The ante is getting upped and they're probably going to need some seed money if they want to stay in the middle class for another generation.
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Mar 24, 2017 19:36
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lol if you're bringing new people into this hosed up late-capitalist hellscape
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Mar 24, 2017 20:37
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Food in Canada is expensive and I could cut back a lot but we spend about $6500 a year on food for two. Dunno how you would quadruple that with the addition of two babies without eating out every meal.
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Mar 24, 2017 20:39
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The writer was justifying it by saying that it's impossible to not eat out on work days because bringing your own lunch is boring.
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Mar 24, 2017 20:52
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@drill spend less on candles
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Mar 24, 2017 20:56
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canyoneer posted:I agree with the sentiment but I'm also thinking that getting a "head start" with inherited wealth is going to make their opportunities in 20 years pretty much even with what mine were at their age, starting without any inherited wealth. I was mocking an attitude I see a lot of Americans exhibit, I don't actually think that. I love the stark contrast between the archetypical poor immigrant coming to the country to work 2 jobs for 12 hours a day just so their kid can have a better life than they had with this weird-rear end American attitude of "FYGM drat KIDS"
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Mar 24, 2017 20:59
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Droo posted:I assume they came up with 40% in this example by ignoring about $90k in deductions for interest and state/local taxes. The mortgage interest deduction is sharply limited because the mortgage is over $1M. They get no state and local deduction because their income puts them deep into AMT territory. The tax estimates are pretty realistic, but $185k in tax outlay is not an impossible burden on a household earning over half a million dollars a year. These people are just dumber than a sack of hammers. They cannot actually afford a fancy house, two leased cars, two private educations, etc etc etc. As it turns out, if you work for a living, you have to make choices about where to spend. And they haven't. They just buy all the things.
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Mar 24, 2017 21:05
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My parents saved enough money so that I know worst case scenario, I end up crashing with them if things go south. That let me take risks I couldn't otherwise have taken which was extremely awesome and ended up paying off for me. You don't gotta necessarily give your kids a small loan of a million dollars to help them get ahead, sometimes it's as easy as them never having to worry about living on the street.
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Mar 24, 2017 21:05
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Dillbag posted:@drill spend less on candles No.
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Mar 24, 2017 21:07
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Notorious b.s.d. posted:The mortgage interest deduction is sharply limited because the mortgage is over $1M. They get no state and local deduction because their income puts them deep into AMT territory. The tax estimates are pretty realistic, but $185k in tax outlay is not an impossible burden on a household earning over half a million dollars a year. I put their actual numbers into my spreadsheet, it accounts for exemption and deduction phaseouts and AMT. I closed it awhile ago but I think the AMT amount was about $13k of the federal tax I listed. It doesn't handle the $1 million mortgage cap, but $60k in P&I for a year is just about a $1 million mortgage so that's close enough that it wouldn't make much of a difference.
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Mar 24, 2017 21:11
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ranbo das posted:My parents saved enough money so that I know worst case scenario, I end up crashing with them if things go south. That let me take risks I couldn't otherwise have taken which was extremely awesome and ended up paying off for me. Yeah I'm sure your folks would really appreciate interrupting their empty-nester gently caress parties to house your broke unemployed rear end
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Mar 24, 2017 21:19
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Reading the article, the author invented these hypothetical people in order to show that "some people with 500k income won't be retiring any time soon." They're supposed to be a negative example.
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Mar 24, 2017 21:27
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ate all the Oreos posted:Yeah I'm sure your folks would really appreciate interrupting their empty-nester gently caress parties to house your broke unemployed rear end
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Mar 24, 2017 21:31
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ate all the Oreos posted:empty-nester gently caress parties mods namechange plz
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Mar 24, 2017 21:45
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Hoodwinker posted:You're weird, friend. I guess, I mean I know my parents would have my back if I got fired but specifically expecting them to be your safety net to the point where it's a factor in your ability to assess risk seems kinda, idk, rude? They have their own lives and do their own thing now that I don't live at home and going "whelp sorry mom and dad i took a risk to start my own exotic ant farm business and it fell through mind if i crash at your place for the next decade" seems kinda selfish.
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Mar 24, 2017 21:51
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