HoneyBBQ
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Post by HoneyBBQ on Feb 2, 2015 16:05:13 GMT -5
I think he just means he's saving a crap ton. We can have 529 and two savings accounts in addition to our regular payroll deductions directly taken out of our checks. i feel like i'm failing income tax ss/medi tax Dependant care savign 208/check HSA 6300/yr supplemental insurances (life, disability, legal) 15% of gross to employee stock purchase 10% to 401k 200ish per paycheck to 401k loan as it is, I end up eating into the stock purchase that i put away. we end up cashing most o fit out, but i try to use it towards larger goals (like add on to house, or repalce a car), vs just watching it go like water. i get a bonus 1x per year in sept, so by then i'm usually done with ss tax and 401k ends around that time. i also get a stock grant around that time, and we try to save it, though for the next few years, we'll be using it to expand our home
How could you be failing?? Most of what you are doing is smart (insurance, HSA, etc) and dedicated to wealth building (401k, stock options).
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Deleted
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Post by Deleted on Feb 2, 2015 16:11:04 GMT -5
I should probably do up a budget on here, but worried i'm be torn into by the snipers who want to tear anyone down that makes more than they do. (I've seen it happen.) minnesotapaintlady HoneyBBQ Am I a sniper? I do get income shock when looking at some budgets that's for sure, but I think there is value in the perspective of others who make less. (Please tell me I have value! )
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HoneyBBQ
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Post by HoneyBBQ on Feb 2, 2015 16:19:51 GMT -5
I also think it's valuable to show when 20, 25, 30% tax rates come in to really see the numbers.
We are lucky to live in a state without income tax. When I was in Missouri, it was ~25% federal, 7% state, 2% city. Plus all the other crap. So it really can be elucidating, I think.
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Lizard Queen
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Post by Lizard Queen on Feb 2, 2015 16:20:41 GMT -5
I should probably do up a budget on here, but worried i'm be torn into by the snipers who want to tear anyone down that makes more than they do. (I've seen it happen.) minnesotapaintlady HoneyBBQ Am I a sniper? I do get income shock when looking at some budgets that's for sure, but I think there is value in the perspective of others who make less. (Please tell me I have value! ) Speaking of optimization, I think you do awesome with your income! I've got lots to learn from the likes of you.
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Deleted
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Post by Deleted on Feb 2, 2015 16:34:48 GMT -5
I'm not that awesome. I have a negative tax liability and regular child support. I wish I could do well on just my income. Then I would feel accomplished (and much less stressed).
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Blonde Granny
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Post by Blonde Granny on Feb 2, 2015 17:01:24 GMT -5
I should probably do up a budget on here, but worried i'm be torn into by the snipers who want to tear anyone down that makes more than they do. (I've seen it happen.) minnesotapaintlady HoneyBBQ Then just for your own giggles and info, d/l YNAB, put in all your categories, dollar amounts spent etc. and see where you are. You get the first 30 days free, if you don't like it you don't pay for it.
I purchased it Dec. 31 when it was on sale for $14.99 instead of $60. All I'm doing with it is tracking our spending, and I believe I have entered every category and line item we spend money on every month.
Best part, you don't have to show it to any one here if you don't want to.
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Post by Deleted on Feb 2, 2015 17:21:35 GMT -5
Ok, I have to be blunt and ask. Why would you reduce your retirement savings , but not cut out the 529 contribution for your grandchildren?? Actually, the 529 belongs to me, too. I would face a penalty, etc. if I decided to cash it out, but it remains my $$$ and is available under certain conditions.
I was very fortunate. I had an awful childhood including not enough to eat at times, but I always knew I was going to college because an aunt had persuaded my mentally ill mother to put some of the insurance money she got when my father died into a trust fund for my sister's and my college education. We were eventually raised by my father's other sister, who was a teacher.
I cannot begin to tell you what it is like to know that even though you are poor, you will go to college and you will do well. Although my grandchildren are far from poor, there is a lot of pressure on the middle class when it comes to college.
$2500 each may only start them at a junior college or buy them a couple of courses that their employer reimburses them for. Who knows by the time they get there? But it means a lot to me to do this. I had dreams of doing more, but that was back when there were only a few.
$100 works out to $12.50 per month per grandchild. That's not exactly how it is allocated, but it is pennies in the great scheme of things. So is a $150 per month extra to my 457 for five more years. There's little compounding there. The real retirement dollars are in my pension (which I contribute 7.5% toward), my IRA, and my Roth. The 457 came about as an afterthought.
I'm just glad you guys aren't picking on the poor puppy's allowance. She told me that if I ever need $$$, I could borrow and pay it back in doggie treats or belly rubs.
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Lizard Queen
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Post by Lizard Queen on Feb 3, 2015 9:00:07 GMT -5
I'm not that awesome. I have a negative tax liability and regular child support. I wish I could do well on just my income. Then I would feel accomplished (and much less stressed). Don't sell yourself short. You're still saving. There's a lot of people out there in easier situations that claim they can't. I'd feel more accomplished if > 1/2 my net worth weren't due to an inheritance, but I wouldn't give it back just to say I did it all on my own. (Anyway, not many people can really say that, if they're really honest with themselves.)
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Deleted
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Post by Deleted on Feb 3, 2015 14:54:49 GMT -5
SS, I am full of admiration! Is the end of the online and / or Sat classes permanent, or short-term? At your age and savings rate, I think you deserve to work only one job. I wouldn't mind the online course, but I wouldn't want to get up early a 6th day a week. Since those jobs stopped, enjoy your extra time off with DH. How much is your mortgage payment? It would be wonderful to have a paid-off house when you retire, or soon after. But perhaps your mortgage is very reasonable.
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Post by Deleted on Feb 3, 2015 17:22:32 GMT -5
SS, I am full of admiration! Is the end of the online and / or Sat classes permanent, or short-term? At your age and savings rate, I think you deserve to work only one job. I wouldn't mind the online course, but I wouldn't want to get up early a 6th day a week. Since those jobs stopped, enjoy your extra time off with DH. How much is your mortgage payment? It would be wonderful to have a paid-off house when you retire, or soon after. But perhaps your mortgage is very reasonable. I could still do Saturday School if I wanted to, but the last two months the administrators cancelled it. You base your plans for a whole month on "I have to work this day," and then you don't. This last one was a holiday weekend. The commitment here seems very one-sided so I decided to let the younger ones do it. But I did say they could ask at the last minute as a fill-in, and I would consider it.
The online entity is simply out of money. I'd love to do that again. It is my "special projects fund," which is now at zero after the drainage correction project. Retired teachers even do it. I hope there is money for next year after the legislature meets.
My mortgage payment is very reasonable. Even with the extra $125 plus taxes/insurance, it is only $910. We couldn't rent an apartment for that. But I'd still like to pay it off sooner rather than later. Rather than think of it as prepaying the mortgage, people should think of it as a 15-year mortgage. That's how I determined the amount to prepay.
I really am enjoying not doing the extra work. The financial "bind" I am in this month comes from the perfect storm known as January. I may have over-reacted, but I probably should be saving more outside of the retirement accounts, anyway. I'm starting to think about withdrawals and taxes.
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Deleted
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Post by Deleted on Feb 3, 2015 17:41:20 GMT -5
SS, I think you are saving plenty!
I don't blame you for opting out of the Sat School. I think you were wise to offer yourself as a sub for it though, that way you can decide at the last minute, and do a Sat once in a while if / when it suits you.
If you are interested in doing more online work (which is less physically arduous IMO, because I HATE getting up at 6 am), could you do a class for a community college? Or maybe occasional online tutoring / exam prep? There is a lot to be said for extra online work, although I wouldn't want to do too much of it because I thrive on the contact with my students, and clearly it's the same for you.
Other thought. I hesitated to post this, but I'm posting it nonetheless. The husband of one of my closest friends is in the hospital tonight, for his third bout with cancer, plus a blocked carotid artery. He is 17 years older than her. So, 4 major surgeries in 4 years.
I'm all for you slowing down, since your DH is significantly older than you. :-)
SS, I think I'm slightly younger than you (I'm 55) but we very nearly lost DH 3.5 years ago, and it really has changed our my perspective on things. Ironically, he's the one that very nearly died and spent weeks in the hospital and had 11 operations, but I'm the one who keeps keeping things in (my) perspective.
I think that people who can basically afford it should stop "waiting" to (insert your preferred verb here). Athena also has an older spouse ... she retired, although she was sort of forced to. It doesn't sound like she has many regrets about it though. (Athena feel free to correct me if I'm wrong.)
Frankly, I worry about those of you who have older spouses, and who are planning to work for years and years and years. PatStab, you too.
I'd be temped to zap the 457, use half to live easier, and half to continue to prepay the mortgage with the aim of getting it paid off even earlier. Your kids are both well-launched, and doing very well for themselves, so that shouldn't be a concern.
But I'm a bad YM-er LOL.
ETA: I guess what I'm trying to say is, I wish you'd give yourself a well-deserved break.
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Post by Deleted on Feb 3, 2015 19:08:28 GMT -5
I think that people who can basically afford it should stop "waiting" to (insert your preferred verb here). Athena also has an older spouse ... she retired, although she was sort of forced to. It doesn't sound like she has many regrets about it though. (Athena feel free to correct me if I'm wrong.) No, you're right- I deplore the circumstances that led me to retire early and right now I'm freaking out a bit at the cultural change of having to withdraw rather than save, but that would have happened no matter when I retired. (And the person who really made things bad for me politically s no longer with the company- she lasted less than a year. ) Overall, life is good. I can't believe how different my life was when I was out the door at 7:15 AM 5 days a week and had to cram most of my errands in on the weekends. I'd never go back to that.
BTW, Susana, what a wonderful story about your Aunt promising to put you through college and then delivering on it! I'm sure she was proud of what you accomplished.
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Post by Deleted on Feb 3, 2015 19:15:33 GMT -5
Athena, I'm soglad you're happy with your current situation. And I'm glad for karma too!
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Post by Deleted on Feb 3, 2015 19:22:41 GMT -5
I think that people who can basically afford it should stop "waiting" to (insert your preferred verb here). Athena also has an older spouse ... she retired, although she was sort of forced to. It doesn't sound like she has many regrets about it though. (Athena feel free to correct me if I'm wrong.) No, you're right- I deplore the circumstances that led me to retire early and right now I'm freaking out a bit at the cultural change of having to withdraw rather than save, but that would have happened no matter when I retired. (And the person who really made things bad for me politically s no longer with the company- she lasted less than a year. ) Overall, life is good. I can't believe how different my life was when I was out the door at 7:15 AM 5 days a week and had to cram most of my errands in on the weekends. I'd never go back to that.
BTW, Susana, what a wonderful story about your Aunt promising to put you through college and then delivering on it! I'm sure she was proud of what you accomplished.
Well, close. My mentally ill mother actually put me through college. One of my father's sisters, who happened to be a lawyer, persuaded my mother in those first days after his suicide to put some of the insurance money ($20,000) into a trust fund for my sister's and my education. That was a lot of $$$ in 1959. Another of my father's sisters, who happened to be a teacher, invited my sister and me to live with her and her husband when I was in fifth grade. We were living with relatives on my mother's side; the male cousin had been inappropriate with my older sister.
There were $$$ available to raise us . . . SS and VA benefits. But the trust fund did make a difference. I never doubted for a minute that I would go to college. A kid raised in poverty who sometimes couldn't go to school because Mom didn't want to reveal that there was no money for food doesn't usually know that. But I did.
I inherited my love of literature from my mentally ill mother. Other children learned to read with Dr. Seuss. My mother had a twelfth-grade literature book. We read stuff like "The Rime of the Ancient Mariner" together, taking turn with the stanzas. I think of that every year when I read it with my high school seniors.
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