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I knew that a lot of people didn't have any kind of retirement plan, but today I saw firsthand how bad it was. I'm a line supervisor at a factory, managing about 25 people. Our company's fiscal year recently ended, and we did pretty good so they are giving everyone a bonus based on a percent of their wages or salary for the past year. When announcing this bonus to my teams, I had to tell them that everyone who doesn't want 401k taken out must opt out. Only 3 people even had a 401k started. Some of these people are in their 40s and even 50s, the only three with a 401k are mid twenties. Our 401k is a 6% match and you are immediately vested. 
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May 12, 2017 06:33
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Flooger posted:I knew that a lot of people didn't have any kind of retirement plan, but today I saw firsthand how bad it was. Have they been employees there for a long time? 401k going opt out move changed how many people have 401ks dramatically. Would explain the age difference as well
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May 12, 2017 06:46
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Foma posted:Have they been employees there for a long time? 401k going opt out move changed how many people have 401ks dramatically. Would explain the age difference as well The factory is only about 10 years old, and there's only a handful of people in the whole place that have been there that long. Most of my employees are 3 - 4 years or less. Edit: also, I think my employer is still opt in. I haven't heard any of the newest people complaining about having to opt out at least.
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May 12, 2017 06:51
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Uterine Lineup posted:Don't worry that's what friends and family and 3rd cousins are for. Is telling your family that your entire lottery fortune goes to charity upon death GWL?
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May 12, 2017 08:30
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Uterine Lineup posted:Don't worry that's what friends and family and 3rd cousins are for. Good thing I'm a cold-hearted bastard in that regard. My parents, two brothers and three close friends would get a million or two each and that's it. If they gently caress it up then tough titties. Everyone else can pound sand.
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May 12, 2017 09:20
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A lot of it is bad investments. Maybe it has always been your brother's dream to open a bar, or your mother wants to start a real estate business and be her own boss, or your girlfriend's best friend heard about selling this great new health product and only needs a few thousand to get started. It can be hard to say no, and these sorts of things can end up costing a lot very quickly.
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May 12, 2017 09:49
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Flooger posted:I knew that a lot of people didn't have any kind of retirement plan, but today I saw firsthand how bad it was. If their hourly wage is poo poo I can see not being able to enjoys luxuries like saving.
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May 12, 2017 12:43
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Doc Hawkins posted:#liveyourpassion #minimalism #experiencesnotpossessions poo poo, my great-grandfather had a cola company. When he died my great-grandmother sold the business and put all the cash in her checking account. Fast forward 40 years later, she dies, and still has $200k in the bank. That could have been 10's of millions.
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May 12, 2017 12:49
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Flooger posted:The factory is only about 10 years old, and there's only a handful of people in the whole place that have been there that long. Most of my employees are 3 - 4 years or less. Might be a factory worker thing. My best friend works at Ford and he gets made fun of for putting money in his 401k by all the old timers because "They're just taking money out of your check!" These are the same guys that were telling him they should vote against the Union's advice to be bought out of their pensions because of the huge check they'd get.
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May 12, 2017 12:54
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Krispy Kareem posted:poo poo, my great-grandfather had a cola company. When he died my great-grandmother sold the business and put all the cash in her checking account. Because it's so much better to watch your money lose its value over time than it is to pay tax on some of your gains. 
melon cat fucked around with this message at 15:04 on May 12, 2017 |
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May 12, 2017 15:01
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Blinkman987 posted:Is telling your family that your entire lottery fortune goes to charity upon death GWL? No, just the opposite. If you ever end up in a hellish existence locked in to your body and unable to communicate, living in pain, they have every incentive to keep you "alive" for as long as possible, since you cannot say no to them spending your money as a drooling ghoul. The health care thread has taught me this if nothing else. Volmarias fucked around with this message at 15:09 on May 12, 2017 |
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May 12, 2017 15:03
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Some folks are terrified of risk, and with the number of "investment advisors" that outright scam their clients I don't blame them.
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May 12, 2017 15:16
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melon cat posted:I've spoken with a lot of clients who do this- they just sit on huge balances in savings/checking accounts earning minimal, not-even-above-inflation interest. And their logic is airtight: "But if I invest the money I'll have to pay taxes on the gains so I'll just leave it where it is" Tell them that they have to pay tax on the interest the savings account generates.
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May 12, 2017 15:40
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Dogcow posted:It's like every scumfuck pile of poo poo billionaire is a sad poopsocking WoW player circa 2006 trying to get some item that will boost some dumb stat by that 3% but in real life I highly recommend listening to this podcast episode
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May 12, 2017 16:32
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ChipNDip posted:Tell them that they have to pay tax on the interest the savings account generates. Duh, that's why you just keep it in your checking account.
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May 12, 2017 18:13
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Konstantin posted:Some folks are terrified of risk, and with the number of "investment advisors" that outright scam their clients I don't blame them. ChipNDip posted:Tell them that they have to pay tax on the interest the savings account generates.  "There's a big problem in Canada with most of the population being financially-ignorant. It's also why Canadians have the highest household debt in the G7. melon cat fucked around with this message at 22:14 on May 12, 2017 |
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May 12, 2017 18:30
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Dogcow posted:This is what I've never even come close to understanding because every insane massive tax cut they ever try to ram through is some tiny 3% of their net earnings that year. It's like every scumfuck pile of poo poo billionaire is a sad poopsocking WoW player circa 2006 trying to get some item that will boost some dumb stat by that 3% but in real life, and we all get hosed as a result. I can't find the interview at the moment. But there was one philanthropist who said the worst part of giving away hundreds of millions was watching his name fall off of the Forbes billionaires list. Even though the philanthropist knew they enough money for them and all their decedents, they still felt terrible about dropping off the Forbes high score list. Because at some point, the only things left to buy are dick-waving status and private armies, and private armies are so Early Modern.
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May 12, 2017 18:39
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golden bubble posted:I can't find the interview at the moment. But there was one philanthropist who said the worst part of giving away hundreds of millions was watching his name fall off of the Forbes billionaires list. Even though the philanthropist knew they enough money for them and all their decedents, they still felt terrible about dropping off the Forbes high score list. Because at some point, the only things left to buy are dick-waving status and private armies, and private armies are so Early Modern. What, this list isn't as important?
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May 12, 2017 18:56
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golden bubble posted:I can't find the interview at the moment. But there was one philanthropist who said the worst part of giving away hundreds of millions was watching his name fall off of the Forbes billionaires list. Even though the philanthropist knew they enough money for them and all their decedents, they still felt terrible about dropping off the Forbes high score list. Because at some point, the only things left to buy are dick-waving status and private armies, and private armies are so Early Modern. http://gulfelitemag.com/the-fabulous-life-of-saudi-billionaire-prince-alwaleed/ Forbes was sued for defamation because of it!
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May 12, 2017 18:56
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cowofwar posted:If their hourly wage is poo poo I can see not being able to enjoys luxuries like saving. Sure, and I've been there. But this is the 2nd highest paying factory in town. For people with no degree or trade skills, this is just about as good as it gets. I really think it's just an education issue. They might get told to invest their money, but not understand what it is. It needs to be explained in easy to understand and relatable terms. All they know is that there will be less numbers on their paycheck.
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May 12, 2017 19:07
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Flooger posted:Sure, and I've been there. But this is the 2nd highest paying factory in town. For people with no degree or trade skills, this is just about as good as it gets. If they work in the best factory then they need to spend to show it.
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May 12, 2017 19:16
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Tell them that it's an investment that the government can't take taxes out of. Emphasize how they're sticking it to the man and not getting taxed as much.
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May 12, 2017 19:21
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22 Eargesplitten posted:Tell them that it's an investment that the government can't take taxes out of. Emphasize how they're sticking it to the man and not getting taxed as much. I used to work for a major lobbying firm in D.C. and we had people with J.D.s - some of whom were lobbyists who worked on public policy issues - that thought 401(k)s were run by the government.
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May 12, 2017 19:30
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A prior employer of mine had a vanguard employee come in once a year and yell for half an hour about how a match is free money. Last I heard the participation was in the 70s.
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May 12, 2017 19:35
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Volmarias posted:No, just the opposite. 
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May 12, 2017 19:41
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For BWM athletes, ESPN had a 30 for 30 episode on that: https://www.youtube.com/watch?v=Elfw0ESih-A For Portland, Blue Star donuts >>> Voodoo Donuts. Expensive BWM donuts, though.
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May 12, 2017 20:34
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melon cat posted:I've spoken with a lot of clients who do this- they just sit on huge balances in savings/checking accounts earning minimal, not-even-above-inflation interest. And their logic is airtight: "But if I invest the money I'll have to pay taxes on the gains so I'll just leave it where it is" PEOPLE HATE PAYING TAXES TO THE POINT THEY ACTIVELY WASTE MONEY TO AVOID PAYING LESS IN TAXES THAN THE MONEY THEY WASTE. Its insanely frustrating and honestly really retarded to the point where a couple of my friends spend ~ 2 hours a day commuting to Portland from Vancouver so they dont have to pay state income taxes. if you take the cost of running the car alone, not to mentioned wasted time it would just be easier to pay your drat taxes. The fact one of these people is an accountant makes it extra hilarious to myself.
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May 12, 2017 20:37
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I know someone with literally millions of dollars in a savings account for the last 8 months or so, because she finds everything to do with money severely anxiety-provoking. I told her that if she hadn't figured out how to deal with it by the end of May I was coming over and "forcibly" putting half of it in an ETF. We shall see.
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May 12, 2017 20:40
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Jack2142 posted:PEOPLE HATE PAYING TAXES TO THE POINT THEY ACTIVELY WASTE MONEY TO AVOID PAYING LESS IN TAXES THAN THE MONEY THEY WASTE. See also: otherwise educated high-earners like doctors and lawyers completely misunderstanding how marginal tax rates work and think that if you're $1 into the next tax bracket, the entirety of your income is taxed at that new level. A disturbingly large number of people think like that, or think their OT is taxed more than regular earnings.
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May 12, 2017 20:44
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Jack2142 posted:PEOPLE HATE PAYING TAXES TO THE POINT THEY ACTIVELY WASTE MONEY TO AVOID PAYING LESS IN TAXES THAN THE MONEY THEY WASTE. washington residents have to pay oregon income tax if they work in oregon.
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May 12, 2017 20:54
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Jack2142 posted:PEOPLE HATE PAYING TAXES TO THE POINT THEY ACTIVELY WASTE MONEY TO AVOID PAYING LESS IN TAXES THAN THE MONEY THEY WASTE. Oregon sucks so it's worth the commute to get outside hipsterland. monster on a stick fucked around with this message at 21:17 on May 12, 2017 |
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May 12, 2017 21:10
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BraveUlysses posted:washington residents have to pay oregon income tax if they work in oregon. This is also true, but people dont seem to realize it.
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May 12, 2017 21:36
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What? you claimed wa residents commute to work in pdx to avoid paying taxes but they're not avoiding them that commute is atrocious no matter how you slice it. vancouverites being dumb enough to not approve the light rail extension is even worse. OBAMNA PHONE fucked around with this message at 21:44 on May 12, 2017 |
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May 12, 2017 21:41
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BraveUlysses posted:What? you claimed wa residents commute to work in pdx to avoid paying taxes but they're not avoiding them Many people seem to think its based on residency not work location, I think I worded that poorly I meant to say people are living in Vancouver thinking they will avoid paying income tax despite working in Portland, thus being doubly bad with money by wasting money to try to avoid un-avoidable taxes. By friends I meant more general acquaintances, my one actual friend living in Vancouver actually works in Vancouver as well, but he spouted the same idea when I was talking about how I was looking for work in the Portland area. Now that I think on it too my comment on the accountant doing that is wrong, I think she still lives with her parents in Vancouver so its actually probably not tax dodging on her part.
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May 12, 2017 22:59
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I still don't get it, whenever I've lived in a state with income tax withholding is mandatory just like it is with Federal income tax. They would see that this one weird trick tax collectors hate doesn't work the first time they got their paycheck. So you are just mad because nobody actually spends two hours to save on taxes, but because you read some person posting on Facebook thinking they could do it?
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May 12, 2017 23:07
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monster on a stick posted:I still don't get it, whenever I've lived in a state with income tax withholding is mandatory just like it is with Federal income tax. They would see that this one weird trick tax collectors hate doesn't work the first time they got their paycheck. I mean there are other things, that make me annoyed this was just a dumb and wrong anecdote. Its a hyperbolic situation, but people yes tend to do silly things with their money to try to avoid taxes, this was a bad example. Jack2142 fucked around with this message at 23:16 on May 12, 2017 |
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May 12, 2017 23:12
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The two Vancouvers are too close together. https://www.reddit.com/r/personalfinance/comments/2us77l/i_lost_half_of_my_life_saving_trading_stocks_and/ quote:late November I started dailytrading stocks, and now after 3 months I have lost more than half of my life savings, the total loss is like $7872.(which is like 70% lost of my life savings) Maybe a repost, but a good reminder that people with no knowledge about investing shouldn't "manage" their own stock trading.
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May 12, 2017 23:16
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LLCoolJD posted:The two Vancouvers are too close together. On the flip side, the guy looks to have learned his lesson and blowing away $7 K at 20, is alot better than blowing away $100K of your retirement fund at 50, because AMD IS ONLY GONNA GO UP WITH RYZEN!!!.
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May 12, 2017 23:20
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The positive encouragement in that thread kinda sickens me personally, to be honest. "Don't fret, you learned a VALUABLE lesson that took me years to learn!" "You're young, you're doing great and making mistakes is part of life!" Most of us didn't have to lose 15k to know that gambling is stupid unless you are 100% okay with losing everything that you are putting on the line. Maybe it's just me, but the whole thread reeks of delusion. I generate income via my skillset, and so should more Americans. But nah let's pat the guy on the back for being a greedy lil 20 year old Everybody wants to be rich but nobody wants to lift a finger to get there. E: I guess what I'm trying to say is when I make huge mistakes, the last thing I need is for strangers to toss out empty words to make me feel better. Best way to digest a lesson is to really roll in the shitpile that you created for yourself and take a long, hard whiff rather than taking comfort in empty (though well-meaning) words from other dummies. KingSlime fucked around with this message at 23:36 on May 12, 2017 |
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May 12, 2017 23:26
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That thread is full of people sharing their BWM stories:quote:I did the same thing when i was 19, only i lost around 55k. Before all of it happened i was actually doing very well day trading. I was trading quality stocks and doing my research every night looking for new entries. But me being 19 i wanted more, so i started making dumb moves. I did what i was always told not to do, and what i thought i would never do. I started trading penny stocks, huge mistake. I wanted instant success and tried finding an easy route to it. I have always suffered from depression, so my depression was very severe after this loss. I was prescribed all kinds of poo poo. I didn't look at the stock market for at least 3 years after, i wanted to burrow myself into a hole and never come out. Long story short is i am back in the stock market but only doing long term investing for now. I may get back into day trading again because i was good at it before i started trying to be greedy. My depression is at bay and i just look at the situation as a good hard lesson now. My advise is to quit seeking instant success and satisfaction. You can seek success but know that its going to take time, hard work, and passion. I was very good at losing $55K
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May 12, 2017 23:36
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