|
GoGoGadgetChris posted:I don't see the problem; goons will always push the Ramen & shoebox apartment lifestyle way too hard imho. OK thanks, this is kinda what I was thinking. Like yeah a nice hotel room is a luxury, but it's really important for this particular trip. Same thing with a car. A new one is technically a luxury and I don't mind driving something old (+ biking most places), but I get that for some people that's where they want to splurge. It's all about choosing where you splurge though...do it in every area of your life and then you don't have any retirement savings, which is not the situation I want to end up in at all.
|
#
?
Apr 23, 2015 23:49
|
|
|
|
| # ? May 5, 2024 11:14 |
|
|
ROTH IRAs are not funded by pretax dollars
|
|
#
?
Apr 24, 2015 00:07
|
|
|
quote:OP this is exactly why a Roth IRA is great for short term savings. You can put pretax money in it, hopefully get an employer match
|
|
#
?
Apr 24, 2015 00:12
|
|
|
.
|
|
#
?
Apr 24, 2015 00:16
|
|
|
Dr. Eldarion posted:I actually stayed at that same hotel for a couple nights on my own honeymoon. Years later, we still talk about it as one of the awesome experiences we had. I honestly do highly recommend staying there at least for a night. Believe me man, I have made all four of those points, but she's standing firm. And I get where she's coming from. Like, I really wanted to go to Japan for the honeymoon. I could have enjoyed lots of places, but Japan was the place I wanted to be most for this special thing. Similarly, this is the place she wants to be most within Japan. And we have the cash to do it, so I'm willing to take a little retirement hit for it. Thanatosian posted:Honestly, given that it doesn't sound like you're maxing out a traditional IRA, too, I'm not even sure why you have a brokerage account. Thanks for the explanation. It's helpful although I probably have some followup questions. I'm confused about this part though. Are you saying I should be maxing out both a Roth IRA and a traditional IRA? I thought they fell under the same limit, i.e. maximum of $5,500 per year between the two of them.
|
|
#
?
Apr 24, 2015 00:37
|
|
|
pig slut lisa posted:Thanks for the explanation. It's helpful although I probably have some followup questions. I'm confused about this part though. Are you saying I should be maxing out both a Roth IRA and a traditional IRA? I thought they fell under the same limit, i.e. maximum of $5,500 per year between the two of them.
|
|
#
?
Apr 24, 2015 01:03
|
|
|
GoGoGadgetChris posted:I don't see the problem; goons will always push the Ramen & shoebox apartment lifestyle way too hard imho. None of this post is correct or good with money in any way.
|
|
#
?
Apr 24, 2015 01:13
|
|
|
There is only one way to upgrade and that's to buy a Jeep with cash (no loans as they are bad with money). Drive the Jeep into your hotel room. Then use credit card advances to buy drugs and strippers.
|
|
#
?
Apr 24, 2015 01:41
|
|
|
Dik Hz posted:In North Carolina, in state tuition is $8,374. Assuming 8% returns (probably a bit optimistic) and 2% inflation, 25 years of compounding interest turns $5,240.27 into $22,490.56 in 2015 dollars. So I was a bit off, it's more like 3 years of in-state tuition. UPDATE: I tried this with her just now and it totally fell flat. She says we'll have plenty of time to start saving for college after the trip since we don't even have a kid yet. I'm inclined to agree, frankly.
|
|
#
?
Apr 24, 2015 02:11
|
|
|
I'm more worried about her declaring she needs a ridiculous luxury within a few days of coming in to (your) money. Do you actually think this is the last time she's going to make an outrageous demand? Believe it or not, honeymoons aren't actually special. My wife and I have taken many trips since we've been married, and our honeymoon is probably in the top five, but nowhere near number one. I've never regretted spending money to travel with my wife, but you're trading an entire upscale vacation worth of money to upgrade a broke grad student's hotel for 5 days. Take the money and go to Iceland for a week instead. Or Belize. Or Alaska. Or England. I'd tell her you're saving for an amazing vacation when she graduates with her Ph.D., because that's a much bigger accomplishment than just getting married. In all my travels, given that I at least had hot water and a bed to sleep on, I've never wished I had a nicer hotel. Not even once. I've always, every day of my life, wished I had more money to take more trips with my wife. Have you tried that angle with her?
|
|
#
?
Apr 24, 2015 03:06
|
|
|
swenblack posted:I'm more worried about her declaring she needs a ridiculous luxury within a few days of coming in to (your) money. Do you actually think this is the last time she's going to make an outrageous demand? It's not that outrageous. It's not like we have to take on debt to fund it. That's where I would draw the line. We have the cash in retirement accounts (or foregoing retirement contributions for a time), so it's not so crazy. swenblack posted:I've never regretted spending money to travel with my wife, but you're trading an entire upscale vacation worth of money to upgrade a broke grad student's hotel for 5 days. She's not "broke". Like I said, she has about $8,000 in her Roth IRA plus no debt. Some of that is her own contribution , while this year's $5,500 came from our wedding money that we got last November. swenblack posted:In all my travels, given that I at least had hot water and a bed to sleep on, I've never wished I had a nicer hotel. Not even once. I've always, every day of my life, wished I had more money to take more trips with my wife. Have you tried that angle with her? I get what you're saying here but I don't think it will work. She's not a big "travel" person, at least unless we're doing it "the right way" (i.e. fancy). This is something I should have done better due diligence on beforehand, I fully admit. But dangling the carrot of travel in front of her will only have limited effect. She's already only agreed to next year's Asia trip because I'll be able to get the business class airfare for free with a combination of my 95,000 Chase UR points and our combined 250,000 AAdvantage Miles.
|
|
#
?
Apr 24, 2015 03:28
|
|
|
swenblack posted:
This, 5600 is more than enough for a nice condo, food, airfare, and car in Maui. If you and your wife still want to do the expensive hotel why not get a CC with a 12 mo 0 % promotion (and a nice bonus when you charge a lot in the first three months), pay it off aggressively, and minimize the amount that you have to pull out of your retirement funds. If you are 35 years from retirement, assuming a 5% real rate of return and a 4% withdrawal rate, 5600 saved now is ~1230 every year (in today's dollars) in retirement.
|
|
#
?
Apr 24, 2015 03:33
|
|
|
Repeat after me: "My wife just convinced me to buy something we can't afford."
|
|
#
?
Apr 24, 2015 03:35
|
|
|
last laugh posted:This, 5600 is more than enough for a nice condo, food, airfare, and car in Maui. Can you explain how this credit card thing works? Are you suggesting a balance transfer? I'm not sure if I want to take the credit score hit on applying for a new card since I just picked up the Chase IHG card and the BofA Alaska Airlines card. I don't want my number to get too low.
|
|
#
?
Apr 24, 2015 03:48
|
|
|
pig slut lisa posted:Can you explain how this credit card thing works? Are you suggesting a balance transfer? I'm not sure if I want to take the credit score hit on applying for a new card since I just picked up the Chase IHG card and the BofA Alaska Airlines card. I don't want my number to get too low. You're right credit score is the single most important financial stat. I would clean out your IRAs and stay in Japan longer if possible. it might cost you extra to change your flight back, but your Honeymoon is worth it (and you will still have a good credit score when you get home and start your lifetime of financial frugality!) Edit: Credit score > Truck Equity > Honeymoon Equity >> Positive Net Worth & financial cushion > Financial Independence and Early Retirement last laugh fucked around with this message at 04:13 on Apr 24, 2015 |
|
#
?
Apr 24, 2015 03:59
|
|
|
You would be better off putting this on a credit card without a 0% APR than tapping into your Roth IRA money.
|
|
#
?
Apr 24, 2015 04:05
|
|
|
Thanks man. This forum has been a bit slow since the SloMo thread died with a whimper. What does your wife think about cars? The new Mrs. Dr. Slut can't come back from a baller suite in Tokyo to whatever poormobile she's driving now. I know a few luxury car salesman who would be happy to inform you of the many ways you can trade a secure future for truck equity!
|
|
#
?
Apr 24, 2015 04:34
|
|
|
SlapActionJackson posted:Thanks man. This forum has been a bit slow since the SloMo thread died with a whimper. It was taken out back and shot.
|
|
#
?
Apr 24, 2015 04:36
|
|
|
SlapActionJackson posted:Thanks man. This forum has been a bit slow since the SloMo thread died with a whimper. LOL @ the SloMo comparison. Come on man we're not even in the same ballpark as he was (or more likely, still is  ).My wife doesn't really care about cars. I mentioned up here that I don't drive anything flashy ('06 Chrysler Pacifica, gets about 8,000 miles a year) and that I bike most places. Same goes for her. We actually picked up biking last summer after reading the Mr. Money Mustache case for it, how it really makes sense from both a financial and a health standpoint. We're kinda big fans of that site and doing what we can to save, especially transportation-wise. But of course he also talks about how his life is still full of luxury, and that's kind of how I view this. We'd be taking the cash we've already earned (i.e. not borrowed) and spending it on something we acknowledge is a luxury. It's the same thing with him and his nice house. He can afford his splurge, we can afford ours. It's all a matter of balance. I'm just trying to figure out the smartest way to go about withdrawing money (or not contributing), given the constraints I laid out in the OP.
|
|
#
?
Apr 24, 2015 04:46
|
|
|
pig slut lisa posted:We'd be taking the cash we've already earned (i.e. not borrowed) and spending it on something we acknowledge is a luxury.
|
|
#
?
Apr 24, 2015 04:56
|
|
|
Well if you are staying in the room for 4 nights, you may as well budget another $1000 for incidentals too. Surely she'll be adamant about having dinner at New York Grill, and she'll be adamant about drinking in the bar too, likely several times. Acknowledge that these too are luxuries but then proceed to justify the expenses because well it's your honeymoon and you aren't going below zero net worth, yay. Your wife is happy for a few nights but all you'll be thinking about the whole time is this drat thread. May as well also budget for some sushi dinners, green cars, taxis (2nd most expensive in the world), kaiseki lunches, etc. if you haven't already. Japan is good at getting you to part with your money; given the stance she's taken on having this hotel experience eat up a huge piece of your net worth I can easily see your whole trip becoming a slippery slope of spending.
|
|
#
?
Apr 24, 2015 12:20
|
|
|
The concept of retirement accounts as free cash is super, I love it.
|
|
#
?
Apr 24, 2015 12:44
|
|
|
zmcnulty posted:Well if you are staying in the room for 4 nights, you may as well budget another $1000 for incidentals too. Surely she'll be adamant about having dinner at New York Grill, and she'll be adamant about drinking in the bar too, likely several times. Acknowledge that these too are luxuries but then proceed to justify the expenses because well it's your honeymoon and you aren't going below zero net worth, yay. Your wife is happy for a few nights but all you'll be thinking about the whole time is this drat thread. Thanks, this is a good point. I appreciate finally seeing some positivity and support in this thread. I can't imagine we'd purchase all of those things but it's reasonable to expect we'd do some. So would you employ a splitting strategy or take the money all from one account? KYOON GRIFFEY JR posted:The concept of retirement accounts as free cash is super, I love it. It's not entirely free. There's definitely an opportunity cost. But with the market pretty flat this year and not looking like it's going to move much over the remainder of 2015, it seems pretty minimal compared to the immediate payoff we'd get from this upgrade.
|
|
#
?
Apr 24, 2015 13:23
|
|
|
He admitted in another thread this is a troll, guys.
|
|
#
?
Apr 24, 2015 13:30
|
|
|
Nail Rat posted:He admitted in another thread this is a troll, guys. Hmmm...that doesn't sound like me
|
|
#
?
Apr 24, 2015 13:32
|
|
|
Sorry if this sounds arrogant but the fact that you're going through with this makes me question your financial discipline. In that case it's pretty difficult to recommend you pay for this on credit. Because you'll probably find yourself saying "It's okay honey I'll just stop paying into my 457 for 14 cycles instead of 12" then bam slap down the credit card yet again. You need to consider how realistic you both will be about expenses on the trip. In terms of split vs non-split it won't matter, presuming those 401ks have similar allocations. $5700 is $5700 regardless of whose retirement you pillage. If you had instead said something like "we setup a separate account to save for this trip, but I'm considering paying for a suite upgrade with cheap credit" I'd certainly recommend the credit card. But the fact that you're doing this last-minute, eating your Airbnb reservation, AND funding it from your retirement does not really make you sound illuminated. Edit: Well turns out this is a troll thread, so uhhh nevermind any of that zmcnulty fucked around with this message at 15:57 on Apr 24, 2015 |
|
#
?
Apr 24, 2015 15:08
|
|
|
pig slut lisa posted:
I giggled when I saw that none of these things is "Sit down and have a talk with my spouse and but what we can/cannot afford". You guys already have a huge trip planned for next year, why not just call that one the honeymoon? I mean seriously lol at trying to figure out which one of your meager retirement savings options to defund. I realize this is an imaginary situation that you made up, but man you make me glad that my wife is good with money. If we had our student loans paid off and we had 5k lying around, she'd put it in a retirement account or a college savings account for our kid or use it to buy a modest, reliable vehicle or save it for a house downpayment or something, not blow it on a loving hotel room. Your fake thread made my marriage better, thanks internet poster!
|
|
#
?
Apr 24, 2015 15:37
|
|
|
Ohhhh boy PLS and Lady Lisa Slut. You have well off parents, just take a loan from them and really explain to them how important it is. Draw it from both sides of the family. If they don't buy it or it is beyond them, then it should be beyond you too how lavish you're trying to make things out to be. There's lots of ways to compromise outside of what you want if you can't pull it off this way, but you have to be willing to compromise. I think you're confusing settling with compromise.
|
|
#
?
Apr 28, 2015 04:06
|
|
|
pig slut lisa posted:Hmmm...that doesn't sound like me For anyone still in doubt that this is a troll thread. Reminds me to ignore all regular byob posters...
|
|
#
?
Apr 30, 2015 16:29
|
|
|
Byob just byobing. Good one. Almost seriously replied to this. -fartz-
|
|
#
?
May 1, 2015 00:07
|
|
|
Voronoi Potato posted:
|
|
#
?
May 1, 2015 00:22
|
|
|
Yeah only one guy got really angry (or maybe two, if someone else bought the red text). Everyone else was helpful and gave exactly the kind of advice I'd be giving to someone saying the stuff I was saying.
|
|
#
?
May 1, 2015 00:36
|
|
|
|
| # ? May 5, 2024 11:14 |
|
|
pig slut lisa posted:Yeah only one guy got really angry (or maybe two, if someone else bought the red text). Everyone else was helpful and gave exactly the kind of advice I'd be giving to someone saying the stuff I was saying. Why did you personally drag me into this thread? Was it for the 
|
|
#
?
May 1, 2015 01:13
|
|