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Space Gopher posted:Maxing your Roth at 6k/year 2020 dollars is not enough to put you in good shape for retirement by itself, unless you've got something else like a pension to help out, or your definition of "good shape" is exceptionally frugal. The rule of thumb for a comfortable retirement is saving 15-20% of your gross salary for retirement from your mid-late-20s until you're done working in your mid-60s. No, that's not realistic for a lot of people. Welcome to one of the many mechanisms for persistent wealth inequality. I've always been curious if the 15-20% recommended figure includes company 401k match? For instance I have a HHI of ~$100,000. We max out both Roth IRA's each year. I have a 401k which I deposited a total of $7,150 in 2019 ($4,720 from my contributions, $2,430 employer match). My wife works part time and has no retirement available through her employer. So my total retirement contributions in 2019 were $19,150 / 19.51% of my gross income. If I don't include my employer contributions, that goes down to $16,720 / 16.72%. I am happy with both numbers, but I was curious what the consensus was when it comes to employer contributions. Should we also be counting HSA contributions towards this retirement figure?
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# ? Jan 10, 2020 15:27 |
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# ? May 25, 2024 13:24 |
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surf rock posted:Sorry about the delayed reply; the past few days have been nuts. Based on the numbers here I would put as much as you can afford into that 401k. It's not bad at all, dare I say good. If you have a taxable brokerage with lots that are at long-term capital gains which are intended for retirement you could up your paycheck contributions to max and sell those funds to make up the difference. Effectively funneling money into your 401k.
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# ? Jan 10, 2020 15:27 |
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Sock The Great posted:...my total retirement contributions in 2019 were 19.51% of my gross income. If I don't include my employer contributions, that goes down to 16.72%. I am happy with both numbers, but I was curious... quote:Should we also be counting HSA contributions towards this retirement figure? Now, the timing of when the money will be used is really the differentiator. If you only put enough into your HSA to cover current-year healthcare expenses, then it’s clearly not going to help you in retirement. If you vastly overfund (and invest) your HSA such that it’s growing much faster than current expenses are draining, sure.
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# ? Jan 10, 2020 15:50 |
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DNK posted:It’s about total, all-inclusive savings. So yeah, it’d include employer contributions. Another way of framing the concept is “do you consider pension plans a form of retirement savings?”. Yes, obviously. Thanks for the feedback. My employer actually funds a huge percentage of our HSA each year ($4,860 in 2019), but we also have two young kids so money is always going in and out of this account; so I'm not going to count this as retirement for the time being.
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# ? Jan 10, 2020 16:16 |
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Sock The Great posted:I've always been curious if the 15-20% recommended figure includes company 401k match? For instance I have a HHI of ~$100,000. We max out both Roth IRA's each year. I have a 401k which I deposited a total of $7,150 in 2019 ($4,720 from my contributions, $2,430 employer match). My wife works part time and has no retirement available through her employer. quote:Should we also be counting HSA contributions towards this retirement figure?
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# ? Jan 10, 2020 17:23 |
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I don't think there is one good way of calculating your savings rate/goal. I don't include anything not contributed by me as it's behavioral, both as a minimum "don't touch" requirement and a goal signal of "ok you've saved enough". It's also less dependable IE if my company gets restructured, my access to profit share to the IRS max may go away. However if I use employer contributions, it has to go in the numerator and denominator. $15,000 401k / $100,000 gross salary = 15% becomes $15,000 401k + $5,000 company contribution / $105,000 = 19%
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# ? Jan 10, 2020 17:55 |
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I don't plan my retirement savings by choosing a savings rate for the year. Instead, I try to project my annual expenses in retirement and then determine how much I'll need in savings to cover those expenses at a safe withdrawal rate. Then I just save as much as I can so I get to that number as quickly as possible.
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# ? Jan 10, 2020 18:23 |
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only issue with that is if you get too stoked up about it you can forget to do fun things
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# ? Jan 10, 2020 18:27 |
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KYOON GRIFFEY JR posted:only issue with that is if you get too stoked up about it you can forget to do fun things
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# ? Jan 10, 2020 18:29 |
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Perhaps, although I've never experienced that myself. I definitely see occasional posts in r/FIRE from people they are like "help I accidentally turned myself into a penny pinching miser!" For me it's been the case that I save so much and my base level of spending is so low that I don't feel guilty about, e.g., splurging on my next trip to Vegas.
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# ? Jan 10, 2020 18:33 |
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Hoodwinker posted:Make fun things a goal just like everything else! i do have to kind of force myself to do this
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# ? Jan 10, 2020 19:01 |
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KYOON GRIFFEY JR posted:i do have to kind of force myself to do this
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# ? Jan 10, 2020 19:56 |
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My buddy was going to move in with me but he was only willing to pay up to half the mortgage as rent, because any more than that wasn't fair. A house that I put 75% down on He will only pay $348 a month to split a $650,000 house because any more is me "trying to make a profit off him" How do people make it to their 30s without learning anything about finances
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# ? Jan 14, 2020 01:17 |
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I know, right. Obviously he shouldn't have to pay principal since you get to keep it, and just split the ITI with you.
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# ? Jan 14, 2020 02:10 |
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Sounds like you should cash out refi.
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# ? Jan 14, 2020 02:22 |
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GoGoGadgetChris posted:My buddy was going to move in with me but he was only willing to pay up to half the mortgage as rent, because any more than that wasn't fair. Sure he's being silly to give up what would be presumably a cheaper than market rent opportunity (you didn't say how much you were going to charge). But the question in my mind is do you want a renter as a roommate or a (best) friend?
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# ? Jan 14, 2020 02:24 |
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tangy yet delightful posted:Sure he's being silly to give up what would be presumably a cheaper than market rent opportunity (you didn't say how much you were going to charge). But the question in my mind is do you want a renter as a roommate or a (best) friend? Yeah I'm relieved it fell apart, to be honest. He's getting divorced and I offered it since it could be mutually beneficial, but he's completely dug in his heels that $300 is the fair price to pay. (He also has a dog, of course) I'm going to send him listings for $300 apartments in the area
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# ? Jan 14, 2020 02:28 |
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GoGoGadgetChris posted:Yeah I'm relieved it fell apart, to be honest. He's getting divorced and I offered it since it could be mutually beneficial, but he's completely dug in his heels that $300 is the fair price to pay. I had a coworker mopping in after he was couch surging at his sister's following getting divorced. He paid a very reasonable just-under-market rent and it was a good arrangement into he bought his own condo. And his little old dog was welcome because mine had died the year before and I was lonely. But in the meantime, that sucker even helped me fix a leaky toilet I couldn't have fixed on my own without a sizzling I'm his rent! I used the $~200 money I saved avoiding a plumber can to invest in the market, making the rich richer!
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# ? Jan 14, 2020 03:43 |
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SpelledBackwards posted:
“Couch surging” is a great description of my attempts at trying to get laid in high school.
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# ? Jan 14, 2020 13:39 |
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Residency Evil posted:“Couch surging” is a great description of my attempts at trying to get laid in high school. Those poor cushions
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# ? Jan 14, 2020 13:43 |
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Beach Bum posted:Those poor cushions I didn’t say successful attempts! Wait. Oh.
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# ? Jan 14, 2020 13:45 |
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Residency Evil posted:“Couch surging” is a great description of my attempts at trying to get laid in high school. Did I write a typo or not? YOU DECIDE! https://www.youtube.com/watch?v=CTY8hrvFck8
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# ? Jan 15, 2020 03:00 |
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SpelledBackwards posted:Did I write a typo or not? God drat how did I know what this was before clicking on it! Late 90s media really embedded itself in our brains
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# ? Jan 15, 2020 03:10 |
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I work for one of the major banks of the US/world. I just found out that they don't care if the college you go to is accredited or not. My supervisor has a PHD from "City University of Hong Kong", a co-worker got his masters from a South African college. These degrees let them qualify for senior positions, I am serious. I found this shocking, but then I guess I shouldn't be surprised, I work in Banking after all. I'm struggling to qualify for internal jobs with my BA from a real California university. Is there a college in the US, non-accredited that just gives out masters degrees? Can I pay $500 or something to get a MBA from" University of Outerspace, Deleware"?
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# ? Jan 19, 2020 22:50 |
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Um, City University of Hong Kong is not some joke degree mill. While it's no Cambridge or Oxford, it is a serious research university, and a PhD from there is a worthy accomplishment. It's not an American college if that's what you mean by accreditation, but multinational corporations hire people with foreign degrees all the time.
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# ? Jan 19, 2020 23:31 |
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SA Forums Poster posted:Is there a college in the US, non-accredited that just gives out masters degrees? Can I pay $500 or something to get a MBA from" University of Outerspace, Deleware"? There are hundreds of these. Look for "degree mill" and you'll find a lot. https://en.wikipedia.org/wiki/List_of_unaccredited_institutions_of_higher_education https://www.chronicle.com/article/Psst-Wanna-Buy-a-PhD-/24239 To be fair: Many/most(?) unaccredited schools are "real" but just suck or have bullshit curricula (University of Metaphysics). Others, specifically to avoid any potential liability for being literal scams, will have the most bare minimum coursework or distance learning components just for plausible deniability. You will still be able to find plenty of literal do-nothing-get-degree schools.
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# ? Jan 19, 2020 23:33 |
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SA Forums Poster posted:I work for one of the major banks of the US/world. I just found out that they don't care if the college you go to is accredited or not. My supervisor has a PHD from "City University of Hong Kong", a co-worker got his masters from a South African college. These degrees let them qualify for senior positions, I am serious. Do you have any idea how prejudiced and backwater you sound? City University of Hong Kong is a well regarded international research institution and your supervisor has a PhD. Meanwhile, you have a BA and an entitlement complex.
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# ? Jan 20, 2020 02:33 |
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Imagine the unbelievable entitlement to suppose that a bachelors from an American college or university is universally better than a doctorate at any other international college or university.
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# ? Jan 20, 2020 02:37 |
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SA Forums Poster posted:I work for one of the major banks of the US/world. I just found out that they don't care if the college you go to is accredited or not. My supervisor has a PHD from "City University of Hong Kong", a co-worker got his masters from a South African college. These degrees let them qualify for senior positions, I am serious. Just for curiosities sake, is this the real California university... of Phoenix or UC Berkeley? To answer your question, there are online masters programs which get high regards in this state, I know various teacher friends who have used them to advance their K-12 jobs. I want to say it's WGU? Don't take my word or it, I failed out of community college - but a real California one.
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# ? Jan 20, 2020 02:42 |
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H110Hawk posted:Just for curiosities sake, is this the real California university... of Phoenix or UC Berkeley? I thought for the longest time that the California University of Pennsylvania, as mentioned in the first Key & Peele East vs. Bowl skit, was made up. Much later I found out it's real: https://www.calu.edu/index.aspx https://www.youtube.com/watch?v=gODZzSOelss
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# ? Jan 20, 2020 05:30 |
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SpelledBackwards posted:I thought for the longest time that the California University of Pennsylvania, as mentioned in the first Key & Peele East vs. Bowl skit, was made up. Much later I found out it's real: I am unconvinced it's not just an elaborate hoax.
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# ? Jan 20, 2020 06:19 |
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There’s also an Indiana University of PA. Is Western Governors university really “highly regarded”? One of the dumbest people I know (like genuinely not smart) was raving about how he was getting his IT degree from there and while it may be real and accredited - if they took that guy, I can’t imagine it being “highly regarded”.
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# ? Jan 20, 2020 13:44 |
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You would be amazed at how stupid some of the people who got degrees from prestigious places are. Have you ever met anyone with a PhD? Have you ever seen them try to assemble Ikea furniture?
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# ? Jan 20, 2020 16:07 |
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Sure, but that's not what they were arguing. They were arguing that a PhD from a foreign university is a joke degree on the level of what you'd get from a degree mill here.
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# ? Jan 20, 2020 17:01 |
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FrozenVent posted:You would be amazed at how stupid some of the people who got degrees from prestigious places are. i'm not sure if i was looking for say, a banking or finance person that i would evaluate them based on their ability to assemble furniture
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# ? Jan 20, 2020 17:11 |
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Looking for some advice here. Couldn't seem to find something like a general budgeting thread. My 32-year-old brother is extremely BWM (and BW a number of other things) and has just moved to Florida to basically start over. This is the first time he's lived on his own and really had any degree of independence. He has impulse control problems, amongst other things, so is of course burning through all of his available cash and then hitting me up on a weekly basis (my answer is always no). He actually makes decent money doing marine construction. I've repeatedly reiterated to him that he needs a budget to track his spending, and a bucket of savings to tap into so that he can pay for the near-constant stream of "unexpected things" that always seem to eat up his weekly cash, and that I would love to help him set these things up. My offer to help get his savings started has got him more interested, so we set up a call for tonight. So looking for advice on two things really: 1) What is the best budgeting tool for someone who is basically computer-illiterate (and also maybe literally illiterate)? This is a man who has never sent an email, so spreadsheets and most online tools aren't going to work here. Is there a good Android app of some kind? 2) If I want to say, get him started with $100 in savings, can anyone recommend a good way to structure it so that this cash is not immediately available to him? Any other tips would be appreciated. I know this is likely a wasted effort, but it's something.
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# ? Jan 23, 2020 21:30 |
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I hate to be defeatist but if the man is truly bordering on computer illiterate - and potentially illiterate enough that a literal physical written ledger is also too complicated - then the man needs to solve those problems and seek to develop some basic competency first. We're a couple of steps away from being capable of generating and sticking to a budget. Any budgeting system like YNAB or Mint is going to be completely worthless to him because he won't understand the implications of what the data and tracking tools are telling him. He won't know how to ask questions of the data to receive answers.
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# ? Jan 23, 2020 21:32 |
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Hoodwinker posted:I hate to be defeatist but if the man is truly bordering on computer illiterate - and potentially illiterate enough that a literal physical written ledger is also too complicated - then the man needs to solve those problems and seek to develop some basic competency first. We're a couple of steps away from being capable of generating and sticking to a budget. Any budgeting system like YNAB or Mint is going to be completely worthless to him because he won't understand the implications of what the data and tracking tools are telling him. He won't know how to ask questions of the data to receive answers. My hope is that if I can throw something at him like "you are allowed to spend $X on food, $X on rent, $X on other bills, and you must deposit $X into savings" and give him some kind of basic mechanism to keep track of even half of it, maaaaaaaybe he will be one step closer to being able to consistently feed himself.
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# ? Jan 23, 2020 21:39 |
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Envelope system. Make him use an actual atm card to get money. If he can't keep that up then he needs mental help beyond what you can give him.
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# ? Jan 23, 2020 21:41 |
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# ? May 25, 2024 13:24 |
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dy. posted:I mean, I totally agree... but he is who he is at this point. I agree that YNAB or Mint is too complex of a solution. I was thinking maybe some kind of simple printable worksheet that he can fill out each week with pen and paper or something.
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# ? Jan 23, 2020 21:53 |