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Ahh. Rent is another one, I know at least one person who still pays rent in cash. I paid rent in cash for a few years in New York. Left $3k in an envelope in the kitchen and the landlord would drop by and pick it up. I think he just let himself in and grabbed it? That seems crazy now but ¯\_(ツ)_/¯.
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Jul 29, 2023 13:14
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smackfu posted:Curios how much cash do people have on hand. What do you need actual cash (beyond the ATM limit) for in TYOOL 2023? Telling the internet you have cash in your house and how much is always a winning strategy. I keep some just in the event of like... I don't know, a big power outage or something from a storm. Mostly I wind up grabbing it bit by bit to like... tip the lady who watches our cat.
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Jul 29, 2023 14:06
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Chad Sexington posted:Telling the internet you have cash in your house and how much is always a winning strategy. I kinda figured the answer was somewhere between “I don’t think about it” and $1000 so not really grand larceny territory.
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Jul 29, 2023 14:44
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SpelledBackwards posted:Yeah, I'm thinking the first post was talking about paper money, dolla dolla bills y'all yeah that's how I interpreted it but I sure hope the people replying "housing downpayment" aren't parking a few bands in their sock drawer for this purpose Anyway to answer the original question I try to always keep some physical cash on hand but never more than like 2-300 bucks between money in a drawer, money in my wallet, and money in my wife's wallet. The exception was after we got married and people gave cash at our wedding, we were drawing that down for like a year. It was probably $4K or something. Only other reason I would have a lot of cash is if I were buying or selling something like a car at the low end of the used market, but that's predictable and so you just take out cash as needed.
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Jul 29, 2023 16:23
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Learning a lot of people don't play poker.
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Jul 29, 2023 16:25
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If I was any good at poker I wouldn’t be posting in the long term investment thread.
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Jul 29, 2023 16:29
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Uh, bass lessons, garage sales, and occasionally I buy stuff in cash from the grocery store just because. People still tip in cash in restaurants too.
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Jul 29, 2023 17:57
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MrLogan posted:Learning a lot of people don't play poker. 
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Jul 29, 2023 18:14
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Absurd Alhazred posted:I think a lot of the weirdness goes away when you replace "they made a movie about X" with "someone was willing to pay to produce a movie about X". If it's some finance bullshit then of course there are people willing to pay for that.
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Jul 29, 2023 20:16
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So is there a compelling reason to go with a 5.25% CD over just leaving cash in VMFXX? The CD is FDIC insured and VMFXX is not, and VMFXX return can fluctuate is the best I can tell right now. I'm looking at a 4 month CD since I'm looking to potentially buy a house at the beginning of next year.
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Jul 30, 2023 16:42
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GordonComstock posted:So is there a compelling reason to go with a 5.25% CD over just leaving cash in VMFXX? The CD is FDIC insured and VMFXX is not, and VMFXX return can fluctuate is the best I can tell right now. I'm looking at a 4 month CD since I'm looking to potentially buy a house at the beginning of next year. Basically to lock in the rate if you think it might fall.
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Jul 30, 2023 20:59
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jokes posted:Also worth noting that a lot of the time for close-to and in-retirement funds, the distribution of stocks is more heavily weighted with dividend/value stocks for obvious reasons which aren't really "stocks" stocks to the average internet person who thinks stocks are BBBY and TSLA only. Fun fact, my wife worked for BBBY at their corporate office. She started her job hunt a few months before bankruptcy was announced. She gave her notice, did her two weeks, said her very tearful farewells. Her first day at her new job was literally the day after BBBY announced their bankruptcy. Apparently one of the stonks folks was not 100% there - some form of schizophrenia or other personality disorder. This guy would hang around the entrance to the offices, walk on the walking paths they had between the buildings, try to get "the real info" and in a way that was way, way uncomfortable for the people he interacted with. Security was very much beefed up from the stonks craze to the very end. Anyway, they're liquidating their poo poo, if anyone wants a monitor, desktop, Surface Pro 5, desks, chairs, or other stuff, ping me and I can head over and take photos. They'll probably be liquidating until September. Or you could take a field trip to lovely Union, NJ. Anyway, I wasn't really trying to be all "social security will be dead how will I retire" or otherwise, I'm just looking for a bit more detail. The 30x expenses figure is a pretty good one, I can work with that. I'm not entirely FIRE but I like the idea of either barista FIRE so I have something to keep me occupied, but my wife would likely be working for a few more years if I retire at 55 and I can always leech off her health insurance and spend my time volunteering. We'd likely be able to live off of her income - by the time I hit 55, the mortgage will be paid off. Tangentially related - when does the feeling of guilt about even thinking about this scenario go away? I think we're probably the most successful and well-off of our friends and peer group, or at least I hope we're not. We made our choices and are happy with them but goddamn do I feel like some privileged jerk who is kept in check by paranoia and rigid fiscal self-discipline. smackfu posted:Curios how much cash do people have on hand. What do you need actual cash (beyond the ATM limit) for in TYOOL 2023? Tree fell through roof. Homeowner's insurance will cover it but the roofers don't take credit cards. I pay them out of the checking account we have on hand assuming there's enough, or make an agreement to pay X upfront, Y in 4 days once it transfers in from online savings account. (Yeah, this is bougie as hell, but still) Landscapers charge $1700/year for leaves and lawnmowing/fertilizing. If I put it on my card they have to charge tax and add on the fee (yeah, the card issuers don't allow that, but they do it). If I give them cash, that's $182 I save. I love this one tile for the bathroom. The local distributor also does the same thing as the landscaper with cash vs. cards. Sometimes you need to be able to access cash on a few days' notice and don't want to sell stocks to cover it. Cash emergency fund in an HYSA for 4-6 months existence on $0 salary, replenish over time if drawn from. I-series bonds if you have extra and want to just let it sit until they lower the interest rate in a few years. MJP fucked around with this message at 15:32 on Jul 31, 2023 |
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Jul 31, 2023 15:22
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GhostofJohnMuir posted:i have not used this tool, but Rob Bergher mentioned it as something he's currently reviewing on his show might be worth a look smackfu posted:Curios how much cash do people have on hand. What do you need actual cash (beyond the ATM limit) for in TYOOL 2023?
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Jul 31, 2023 16:00
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literally this big posted:Rob Berger is by far the best financial education guy out there. I cannot recommend his podcast (and now Youtube channel) highly enough.
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Jul 31, 2023 16:55
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MJP posted:If I put it on my card they have to charge tax and add on the fee (yeah, the card issuers don't allow that, but they do it) Through a combination of lawsuit settlements and state laws, adding on credit card fees is allowed in (almost) every state.
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Jul 31, 2023 17:01
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Always wondered how those companies keep their books when they just don’t pay sales tax on the cash transactions.
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Jul 31, 2023 17:58
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smackfu posted:Always wondered how those companies keep their books when they just don’t pay sales tax on the cash transactions. The lawn/fertilizer guy we used this year had an old notebook that I'm sure would make a great exhibit #1 in any trial. 
Residency Evil fucked around with this message at 18:20 on Jul 31, 2023 |
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Jul 31, 2023 18:17
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smackfu posted:Curios how much cash do people have on hand. What do you need actual cash (beyond the ATM limit) for in TYOOL 2023? I'm transitioning my 6 months of emergency expenses into I-bonds so they'll better keep track with inflation over time, and I'm keeping that money in an AMEX HYSA while that's in process. After that's done I play to keep a few thousand on hand in the HYSA for immediate emergencies but everything else will be invested.
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Jul 31, 2023 18:28
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smackfu posted:Always wondered how those companies keep their books when they just don’t pay sales tax on the cash transactions. They just don’t report them. They commit a lot of fraud.
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Jul 31, 2023 18:33
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Pollyanna posted:If I was any good at poker I wouldn’t be posting in the long term investment thread. you don't have to be good at poker. just have to be better than the people you're playing against.
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Jul 31, 2023 19:54
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smackfu posted:Always wondered how those companies keep their books when they just don’t pay sales tax on the cash transactions. There are only 4 states that have sales tax on services. Most likely the taxes they are referring to are income/payroll taxes that they are not paying on work they do for cash. Not paying state sales tax is a bad idea, but not paying the IRS is a very bad idea.
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Jul 31, 2023 20:13
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How hard is it to set up a SEP IRA? My accountant told me he can set me up with a financial planner to do it, but if it’s just a couple forms then I might as well do it myself.
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Jul 31, 2023 20:59
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drk posted:There are only 4 states that have sales tax on services. Most likely the taxes they are referring to are income/payroll taxes that they are not paying on work they do for cash. As you said, small businesses have owners or sole proprietors that are paying themselves income from the businesses' revenue. A small business/sole proprietor can put cash in their pocket, underreport their personal income, and offset their official on paper income with their expenses. This also affects self-employment tax (FICA - medicare and social security). If they never deposit the cash, there's no paper trail to be audited. However, as you said it's a very bad idea for a few reasons. There's the fraud part, of course. But also your retirement income from SS is based on your earnings and how much you paid into the system so if you habitually underpay into SS you are also going to have lower SS payout in retirement.
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Jul 31, 2023 21:12
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Leperflesh posted:As you said, small businesses have owners or sole proprietors that are paying themselves income from the businesses' revenue. A small business/sole proprietor can put cash in their pocket, underreport their personal income, and offset their official on paper income with their expenses. This also affects self-employment tax (FICA - medicare and social security). If they never deposit the cash, there's no paper trail to be audited. However, as you said it's a very bad idea for a few reasons. There's the fraud part, of course. But also your retirement income from SS is based on your earnings and how much you paid into the system so if you habitually underpay into SS you are also going to have lower SS payout in retirement. SS has a couple "bend points" beyond which marginal contributions don't increase your collection very much. It's an interesting exercise to go through and check what expected payouts might look like given a few different working scenarios, even at a younger age.
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Jul 31, 2023 21:17
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True, but also if you're decades from retirement, you should assume some of those payout calculations could and likely will change in the future... while the general principle of "pay in more, get more out" probably will still hold.
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Jul 31, 2023 21:20
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SpartanIvy posted:I'm transitioning my 6 months of emergency expenses into I-bonds so they'll better keep track with inflation over time, and I'm keeping that money in an AMEX HYSA while that's in process. After that's done I play to keep a few thousand on hand in the HYSA for immediate emergencies but everything else will be invested. Are you laddering them?
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Jul 31, 2023 21:23
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Awkward Davies posted:Are you laddering them?
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Jul 31, 2023 23:47
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I’m not sure I understand what the point of laddering I-bonds would be
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Jul 31, 2023 23:48
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KYOON GRIFFEY JR posted:I’m not sure I understand what the point of laddering I-bonds would be If you’re using them as an emergency fund you might want one periods worth of expenses to mature each period.
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Aug 1, 2023 00:29
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pseudanonymous posted:If you’re using them as an emergency fund you might want one periods worth of expenses to mature each period. Are we talking about the same product? I-Bonds are 30 year variable+fixed interest rate bonds that earn interest every month. The variable rate resets every six months to track inflation. If you sell the bond within five years you forfeit the last three months interest. What about this structure lends itself to laddering, other than the fact you can only buy in annual tranches of $10k?*
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Aug 1, 2023 01:01
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KYOON GRIFFEY JR posted:Are we talking about the same product? I-Bonds are 30 year variable+fixed interest rate bonds that earn interest every month. The variable rate resets every six months to track inflation. If you sell the bond within five years you forfeit the last three months interest.
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Aug 1, 2023 01:19
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I Bonds are nice as an extra emergency fund, I have a bit myself, but I def view it as a “in case of emergency break glass” type emergency funds. I think they’re good for diversifying and a bit of peace of mind, but I would not bank on them for the majority of emergency funds to say the least. I Bonds are about 30-40% of my current emergency funds, but i A. Am budgeting a higher emergency fund ever since covid and B. Had to dip into my general emergency fund a few months ago, so it will hopefully go back to about 25% of my emergency fund.
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Aug 1, 2023 01:21
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New York's 529 setup has changed. I used to have an "age aggressive" portfolio for my child, but they replaced that with target date portfolios that are tweaked for the year of expected college enrollment. The NY site says you can go for a later target date if you want to get more aggressive or an earlier target date if you want to be more conservative. All the funds shift from 95% stocks to more "short term reserves" and bonds with a 11-12% allocated stocks once the kid hits school age. I really wanted this to be a "set it and forget it" type of option with lessening volatility the closer my kid gets to college enrollment age so we know the money is there. Is it bad to just set the target to my child's real age? Am I overthinking this? https://www.nysaves.org/home/which-investments/target-enrollment-portfolios.html Eric Cantonese fucked around with this message at 02:12 on Aug 1, 2023 |
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Aug 1, 2023 02:09
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KYOON GRIFFEY JR posted:Are we talking about the same product? I-Bonds are 30 year variable+fixed interest rate bonds that earn interest every month. The variable rate resets every six months to track inflation. If you sell the bond within five years you forfeit the last three months interest. Nothing. I’m just explaining what I assume is the reasoning of the poster.
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Aug 1, 2023 02:22
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pseudanonymous posted:Nothing. I’m just explaining what I assume is the reasoning of the poster. I bonds mature in 30 years. I have no idea what you could possibly be talking about.
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Aug 1, 2023 03:19
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Duckman2008 posted:I Bonds are nice as an extra emergency fund, I have a bit myself, but I def view it as a “in case of emergency break glass” type emergency funds. Would you mind sharing how you keep your emergency funds and more of your logic behind it? I'm curious why you wouldn't bank on I bonds for the majority of your emergency fund. I don't think there's a right or wrong answer, I'm just curious about your thinking.
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Aug 1, 2023 15:16
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FWIW I keep my emergency fund separate from my I-series bonds, and I only bought the I-bonds back in late 2021/early 2022, I think - we had some surplus that had built up. I've since redone how much we invest in our post-tax (after maxing 401ks, Roth contributions, HSA, charity, and all the other lower-my-taxable-and-grow-it-lower-tax stuff) so we don't have surpluses of that scale; they're just gonna sit there until inflation is defeated this time. Most of that is because it's insanely awful to log on to treasurydirect, I don't want to risk "poo poo, I need this in four days" with some weird crap that was never properly migrated from ActiveX and thus causes weird government IT things to happen.
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Aug 1, 2023 16:31
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Emergency Fund. I keep 10,000 in I-bonds (I just started buying them) and 90,000 in SPAXX (7 day yield fo 4.91%). Am I doing this wrong?
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Aug 1, 2023 16:44
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oops. ignore
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Aug 1, 2023 16:44
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I-bonds in an emergency fund isn't a great idea because you can't immediately access them for a year, and will incur a penalty to do so for a while after. SPAXX isn't FDIC insured. Still, I-bonds in an emergency fund isn't a terrible idea-- there are way worse ones!
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Aug 1, 2023 16:56
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