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CmdrRiker posted:My newest piece of unjustified advice on retirement that I learned is, "By 30, you should generally have about one year's salary tucked away into a retirement account." I am turning 30 at the end of the year and I only have about 33% of what I need to match that questionable statistic. Here is a random lovely article that supports the idea: http://www.cnbc.com/2017/02/22/heres-how-much-money-you-should-have-saved-at-every-age.html Unjustified or not, it's pretty much in line with Fidelity's numbers, which I've posted before. Their post is much better than the CNBC coverage, and shows the assumptions built in with that. Roth savings would obviously be worth a little more than conventional in those figures. Also, remember that your "salary" in those figures is your net, less the retirement savings you're making (e.g. if you're saving 10%, then you only need 90% of your top-line salary saved, since you'll be in spend-down in retirement).
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Apr 27, 2017 17:38
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Yeah I didn't find a truly good job until I was 28, so I only have about $50k in 401k savings right now at 32. But I'm only a couple years away from having all (or very nearly all) of my debts paid off, which will open up a huge amount of money to dump into retirement, so hopefully I'll be able to catch up soon.
Noctone fucked around with this message at 17:46 on Apr 27, 2017 |
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Apr 27, 2017 17:43
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Now imagine living in a country without 401k or similiar tax-advantageous shelters, where every single capital gain and dividend is subject to taxation, including any "book" gains just made from changes in the stock price without any disposal taking place. While also having to pay a significant amount of gross money into mandatory pension schemes that are expected to not even give back your inflation-adjusted contribution if you're below 40 right now. 
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Apr 27, 2017 17:49
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Yond Cassius posted:Unjustified or not, it's pretty much in line with Fidelity's numbers, which I've posted before. Their post is much better than the CNBC coverage, and shows the assumptions built in with that. That's a good point that I didn't consider until now. Thank you.
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Apr 27, 2017 18:15
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Randler posted:including any "book" gains just made from changes in the stock price without any disposal taking place. Wait, what, seriously? Where is this? How does that work...like at all? At what point is the unrealized value assessed? Yearly? Is it based on some sort of average, or a max or a min? If they just pick a day during the year you could get totally boned or totally luck out on taxable value based on market swings. Do you get to deduct unrealized losses at the same rate you get taxed on unrealized gains? So many questions... Guinness fucked around with this message at 18:34 on Apr 27, 2017 |
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Apr 27, 2017 18:26
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Guinness posted:Wait, what, seriously? Where is this? That is basically the core idea behind Germany's new investment scheme taxation which will be applicable from 2018 and forward. Basically, for you get a fictional capital gain assessed and taxed each year. The tax on this fictional capital gain works as a prepayment and can be offset against the tax upon the "real" disposal at a later point in time. The fictional capital gain is assessed based as (value of shares per 1 January FY) * (interest rate set for valuation schemes based on certain indicators) * (70%). Taxed at a 26,375 % rate. (WHT, obviously).
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Apr 27, 2017 18:41
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Your European numerical comma usage terrified me before I realized what it was.
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Apr 27, 2017 18:43
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Well it would explain why the payout is going to be so low...
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Apr 27, 2017 18:51
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moana posted:I don't think they would cover an overdrafted check for $90k either way, but yeah, that was my first thought as well. I don't know if Alliant can link the savings account to cover, but I'll ask when I call them to waive the overdraft fee If your tax bill is really $90k, and this is not a one time event, and this is YOUR tax bill and not for a corporation or something, chances are you have the kind of assets that that might qualify you for a private banking/ priavate client relationship with a brick and mortor bank where you might get the type of individual attention that could have solved this issue by them calling you and asking if you want this check to be paid. Every institution I have worked or banked at allowes linking of savings accounts for OD protection. Whether I would personally link an account with that much in there from a risk standpoint is a whole 'nother issue.
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Apr 27, 2017 18:56
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Randler posted:Now imagine living in a country without 401k or similiar tax-advantageous shelters, where every single capital gain and dividend is subject to taxation, including any "book" gains just made from changes in the stock price without any disposal taking place. If it makes you feel any better, Trump's proposed to tax plan would apparently pretty much put an end to tax-advantageous retirement accounts in the USA. e: just kidding, they walked back on that already
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Apr 27, 2017 19:31
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I don't know that we're going to be able to have 3 times our salary saved by 40, but maybe if we really push it.
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Apr 27, 2017 19:35
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EAT FASTER!!!!!! posted:I don't know that we're going to be able to have 3 times our salary saved by 40, but maybe if we really push it. I feel like that would be a good metric for when the guillotines come out
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Apr 27, 2017 19:49
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EAT FASTER!!!!!! posted:I don't know that we're going to be able to have 3 times our salary saved by 40, but maybe if we really push it. There needs to be some caveat for if your household income is over 300k
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Apr 27, 2017 20:00
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Nail Rat posted:There needs to be some caveat for if your household income is over 300k Why? It's much easier to save 3x if you have high income.
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Apr 27, 2017 20:14
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If I netted $300k I could save a million in four years.
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Apr 27, 2017 20:17
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I'd better start enjoying bingo nights and puzzles when I retire.
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Apr 27, 2017 20:20
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BFC: Been Fighting Class (warfare)
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Apr 27, 2017 20:20
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Krispy Kareem posted:I'd better start enjoying bingo nights and puzzles when I retire. Video games. Our generation will play clunky old video games from 50 years back when we are old, broke, and feeble.
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Apr 27, 2017 20:25
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BarbarianElephant posted:Video games. Our generation will play clunky old video games from 50 years back when we are old, broke, and feeble. More likely it will all be subscription based which us olds wont be able to afford so we'll have a ps4 hidden under the floor boards and play in violation of the DMCA authority.
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Apr 27, 2017 21:11
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I knew there was a good reason I've been holding onto my Dreamcast all these years.
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Apr 27, 2017 21:15
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Noctone posted:I knew there was a good reason I've been holding onto my Dreamcast all these years. Red Barchetta 205X looking sad as hell.
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Apr 27, 2017 21:26
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Boys who love boys
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One thing about that metric is that it's geared towards people whose incomes aren't growing, either. It's much harder to reach that goal if your income, say, doubles every year than if it stayed stagnant, and of course it's even easier if your income has gone down. So it's pretty bullshit for that reason too.
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Apr 27, 2017 22:27
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ohgodwhat posted:One thing about that metric is that it's geared towards people whose incomes aren't growing, either. It's much harder to reach that goal if your income, say, doubles every year than if it stayed stagnant, and of course it's even easier if your income has gone down. This is a good point. It should really be multipliers of "intended retirement income", expressed in current dollars (the difference between "current dollars" and "retirement dollars" diminishes as you get closer to retirement, of course). It's closer to "a useful overall benchmark" than "pretty bullshit", I think, even if it needs a small salt lick.
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Apr 27, 2017 22:35
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Noctone posted:If it makes you feel any better, Trump's proposed to tax plan would apparently pretty much put an end to tax-advantageous retirement accounts in the USA. There is no loving chance most of this tax reform survives the lobbying barrage and special interest deal making that is already ginning up. The thought that the US tax code has survived in its current form just as an accident or failure of willpower to revise it is hilarious
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Apr 27, 2017 22:35
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BEHOLD: MY CAPE posted:There is no loving chance most of this tax reform survives the lobbying barrage and special interest deal making that is already ginning up. The thought that the US tax code has survived in its current form just as an accident or failure of willpower to revise it is hilarious Turns out tax law is way more complicated than anybody could have possibly known.
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Apr 27, 2017 22:38
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BEHOLD: MY CAPE posted:There is no loving chance most of this tax reform survives the lobbying barrage and special interest deal making that is already ginning up. The thought that the US tax code has survived in its current form just as an accident or failure of willpower to revise it is hilarious
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Apr 27, 2017 22:39
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Cold on a Cob posted:If Canadian banks would let me provide a read only access of my financial data to verified third parties that could be revoked anytime I would consider something like Mint again. For now I'll stick to doing things with ynab (old version, because new version is basically Mint but you pay for it). Something that not all that many people seem to know about, but which is coming real soon in the UK: The open banking regulations (a.k.a the PSD2 european regs). All banks will be required to open up their customers accounts etc to third parties via APIs. E.g: https://www.evry.com/en/news/articles/psd2-the-directive-that-will-change-banking-as-we-know-it/ Worth a read if you're interested to see where banking in the EU might end up in a couple of years. I may be working for a company which is currently salivating over these changes, rather than having to deal with the traditional lovely 'screen scraping' approach places like Mint take.
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Apr 27, 2017 23:21
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BEHOLD: MY CAPE posted:There is no loving chance most of this tax reform survives the lobbying barrage and special interest deal making that is already ginning up. The thought that the US tax code has survived in its current form just as an accident or failure of willpower to revise it is hilarious I have to imagine that most companies are wet enough about the idea of a 70% nominal tax cut that they'll do whatever it takes to make it happen.
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Apr 27, 2017 23:23
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therobit posted:If your tax bill is really $90k, and this is not a one time event BWM story: another mom in my baby class complaining that she has to work overtime and can't spend time with her baby. Then says that she ended up buying a breast pump for $700 because the $400 ones you get FREE through ACA "aren't as good" and talks about how great the homeopathic gas drops and amber teething necklace are that she bought from the naturopath. If I were unscrupulous, I'd start an organic baby product line and rake in the millions.
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Apr 27, 2017 23:26
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therobit posted:That isn't strictly true. If you give a card and pin to someone else and they misuse it, then yes you are liable, likewise if you give your online banking password to someone who misuses it, you ahould be liable for that as well. You don't see people getting an unrelated claim denied because thier spouse logged onto their online banking once. Using mint is a grey area because you are potentially leaving your credentials unsecure and exposed and the bank has no control over that. I mean I read the terms of service when I got my bank account and it basically is written to be as wide as possible, like "if you so much as whisper your password to your pillow when nobody's watching in the dead of night then this agreement is totally void and you are a terrible person doomed to hell." I realize that's just in there to give them a lot of leverage to use if they needed to and they probably wouldn't use it against you for unrelated reasons but it's certainly written wide enough to let them do so if they wanted to.
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Apr 27, 2017 23:28
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moana posted:It's a one-time event, I now get paid nothing and am vomited on daily. I'll never make that much money again, so I've got to get my humblebrags in when I can. Amber teething necklaces are great because I can look at a kid and immediately know that I am smarter than their parents
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Apr 27, 2017 23:37
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canyoneer posted:Amber teething necklaces are great because I can look at a kid and immediately know that I am smarter than their parents Mock all you want but you'll never be as financially savvy as the person who figured out how to monetize the fact that babies like to chew on rocks.
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Apr 27, 2017 23:39
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moana posted:BWM story: another mom in my baby class complaining that she has to work overtime and can't spend time with her baby. Then says that she ended up buying a breast pump for $700 because the $400 ones you get FREE through ACA "aren't as good" and talks about how great the homeopathic gas drops and amber teething necklace are that she bought from the naturopath. If I were unscrupulous, I'd start an organic baby product line and rake in the millions. Wasn't there something in this thread last year about, like, artisinal swaddling wraps or something that cost beaucoup bucks?
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Apr 28, 2017 00:47
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moana posted:If I were unscrupulous, I'd start an organic baby product line and rake in the millions. I imagine that the market has to be saturated at this point.
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Apr 28, 2017 01:14
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Impossible.
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Apr 28, 2017 01:19
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Volmarias posted:I imagine that the market has to be saturated at this point. You know they still sell baby nightshade pills right? People are always having more babies. https://www.fda.gov/ForConsumers/ConsumerUpdates/ucm230762.htm
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Apr 28, 2017 01:30
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This thread is really entertaining to me but also saddens me that I am still "getting by" at 33 and don't have any retirement savings yet or own a house. I've been annoyed at myself for this. Now I'm really annoyed at myself.
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Apr 28, 2017 02:16
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Just put down 1% on a 4000sqft house and get yourself on the ~*property ladder*~
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Apr 28, 2017 02:22
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How about a guy that is going to end up paying $33k for a Kia Rio:quote:So, I have poor credit it's about 470 my spouse and I purchased a vehicle 7 months ago. Here's the problem. Our family is growing and it's a small vehicle. https://www.reddit.com/r/personalfinance/comments/67yqzj/purchased_first_car_big_mistake_how_can_i_fix_this/ That's on par with the goon who paid $40k for a Nissan Altima.
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Apr 28, 2017 02:26
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19 o'clock posted:This thread is really entertaining to me but also saddens me that I am still "getting by" at 33 and don't have any retirement savings yet or own a house. It didn't have either of those at 33. I had started a company instead, and then worried about house/retirement. Best thing is you can sort out you finances and savings rate at any point in your life. Obviously if you start earlier the benefits are larger but any improvements you make now will help your future self a lot.
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Apr 28, 2017 02:54
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