Women in Red Savers 2018

[chiver78]

Jul 16, 2018 9:10:29 GMT -5 seriousthistime said:

chiver78 , the penalty is 10% if you are under a certain age... 59 1/2, I think.

Plus the taxes.  What's your highest marginal tax rate for both state and federal in 2018?  When you calculate your highest marginal rates for both, if you're planning to itemize deductions remember that for federal tax you lose the personal exemption and can't deduct over $10,000 for your state and local taxes paid. That's a big hit in states that have income tax plus high property tax rates.  

I did something similar, withdrew the money from a 401(k) and rolled over some of it, keeping out the other part to buy a house.  I'm over the age threshold, but the tax bill that year was a killer.  But at least the money is now tax-free and invested in an appreciating asset.  I don't think I'd do it to pay off credit cards.  

is this something I can look up? I bring all my stuff to a CPA and come back a week later to sign the return. the bold is like a different language to me.      but it doesn't sound like it would actually benefit me to do this, so there's that. 

[Deleted]

Jul 16, 2018 9:29:47 GMT -5 midjd said:

I'd say it'd be at least a 25% hit between taxes and the 10% penalty, maybe 35%. If you have a copy of last year's return or remember what your AGI was, you can look up the marginal rate with this chart: taxfoundation.org/2017-tax-brackets/

Better use 2018 chart since the brackets change.

taxfoundation.org/2018-tax-brackets/

From what you've posted about your income, your marginal is at least 22%, maybe 24% and then the 5% for state (looks like everyone is 5%), and the 10% penalty.  You'd be coughing up 37-39% of that 401K. 

Step away from the 401K.    

[chiver78]

ha, step away. I was only barely entertaining the idea anyway. I'm totally convinced otherwise now. 

and per that link, I'm at 24%

[Deleted]

Jul 16, 2018 10:35:44 GMT -5 chiver78 said:

ha, step away. I was only barely entertaining the idea anyway. I'm totally convinced otherwise now. 

and per that link, I'm at 24%

Well, you need to use your taxable income as the number for the chart.  That is your gross minus anything going to 401K, insurance premiums, HSA, etc.  Also you subtract off your (now) 12K standard deduction (or itemized if you can still do that). 

[seriousthistime]

Do you know if your new 401(k) plan allows you to roll over the money from the former employer's plan?

If you can roll it over into the new plan, you might be able to take it out in the form of a loan from the 401(k), and pay off the credit cards you'd like to be free of.  You'd get rid of the CC payments, and pay your 401(k) loan back via payroll deduction over a set time at a much lower interest rate, which is paying money to yourself.

Some of the down sides to doing that are, if you leave the company before the loan is paid off, the amount still owed is considered taxable income. And there is the lost opportunity cost of gains/appreciation if you'd kept that money invested -- not likely to be 11%, but something more than the 2% you'd be paying back to yourself through interest on that loan.

Yep, taxable income is what you'd use to figure your marginal rate.  Remember, if you itemize (and I'm assuming you do) you no longer get the personal exemption. (which in 2017 was about $4k). 

[chiver78]

I'm not eligible for the 401k here yet. I think that's 90 days? but I have an IRA that I opened after leaving my longtime employer 3y ago. I had figured on rolling the $35k into that eventually. I'll dig out the 401k information for this new job this weekend and read it. with all the other benefits info I received, I didn't bother looking at that stuff since I couldn't do anything about it anyway. 

[seriousthistime]

I may be wrong, but I think the only possible way to take a "loan" from an IRA is to withdraw the money and roll it over (maybe into a different IRA?) within 60 days.  Do it on the 61st day and you are subject to taxes and the 10% penalty.

[chiver78]

oh, I wouldn't pull anything from the IRA. this was a standalone 401k with a small balance that I was considering liquidating rather than rolling over into *something*. that something could either be the already-existing IRA or I guess what you suggested, the 401k here at the new job if that's allowed. 

when I opened the IRA, I had the 401k company write the check directly to the IRA company, so there wouldn't be an issue. 

[debthaven]

Debthaven 200 euros for 1 August 2018 (Goal: 600 euros)

We're away at the end of this month so I'm updating early.

Unfortunately I have had to use a bit of the not-to-be-touched savings. Things have been so tight for so long I guess it was to be expected. We have had a LOT of house guests and dinner guests this month. And while the sale of that studio enabled us to put a nice chunk into savings for the first time in years, we also lost 500e/month rental income.

We put the other studio up for sale this week, but the building is in terrible shape, so I'm not holding my breath. (That's the rental mortgage in my signature.)

[shanendoah]

shanendoah: 25-July 2018 $1950 (Goal: $2,500/stretch $5,000)

Just turtling along. Nothing to see here.

[lazysundays]

update:

Lazysundays 7-27-18 $5116.92/$60,000 by spring 2020    8.5% of goal

$1895.92  -this includes $545.92 that I managed to skimp off the spending for July.  Played lots of whack a mole in YNAB this month, but still no overspending and credit cards are still paid in full, so I must be doing something right.  

Excited about first Friday of August as that is an extra paycheck I am throwing straight into this. 

Thank you for this thread for pushing me to do better.  

[plugginaway22]

plugginaway22,  8/1/18 $11,938  (goal $16,800)



Accounts                   8/1/18                     2018 Goal

EF- online                  $3438                        $5000

EF- brick bank           $5000                        $7000

Tax Escrow                $3500                        $4800



Totals                        $11,938                     $16,800



(the HSA account balance is now $4736)



Our next purchase needs to be the replacement of our mattress set.  We think it is over 12 years old, and was not the best quality.  I am budgeting $1500 and have most of that set aside, not in above totals.  Vacation spending is in August, so will shoot for a September purchase.

[finnime]

Daily and Weekly Savings Goal

Month	Week	Goal	Total Saved	Percent of Goal Met
1		30.38	38.25	125.91%
2		75.42	88.00	116.68%
3		148.55	168.00	112.21%
4		174.26	182.00	104.44%
5		219.30	228.00	103.97%
6		320.90	336.00	104.71%
7		385.65	416.00	107.87%
8		371.94	397.00	106.74%
9		416.98	437.00	104.80%
10		462.02	485.00	104.97%
	44
	45
	46
Annual		3,778.06	2,775.25	73.46%

Basis:

Daily: .01 x day of year + Weekly: (.10 x day of year) + 1.00 x week of year + Monthly: 10.00 x month of year

Category	Goal	Amount	Saved	Percentage
Sinking	House	10,000	500	5.00%
	Car	2,500	130	5.20%
	Dog	500
	Medical	1000
	Gifts,  Miscellaneous	3000
Security	EF	3,500	2,775.25	73.46%
Survival	3 Months Expenses	6,000	355.00	5.92%
Future	Nest Egg	500
Fun	Finland Fund	5000
Total		32,000	3,760.25	11.75%

Finnime 7/28/2018 $3,760.25 ($32,000)

Slowly adding up.

[seriousthistime]

Savers,

It is approaching the end of July. I will do the updates the evening of August 2. Please get your updates posted by then. Thank you!

[Deleted]

Moving forward on the two most important ones.  The Roth and the college savings.  The loss of my part time job this year has been kind of the death of saving for the non-essentials. 

Fund	2018 Goal	Current	Needed	% Complete
Survival Fund	$6000	$6000	$0	100.00%
2019 Roth	$5500	$2700	$2800	49.09%
House Maint	$3000	$3000	$0	100.00%
College	$2400	$1600	$800	66.67%
Replacement Car	$2000	$200	$1800	10.00%
Pr. High School	$1000	$1000	$0	100.00%
Vacation	$1000	$0	$1000	0.00%
Christmas	$600	$260	$340	43.33%
Total	$21,500	$14760	$6740	68.65%

minnesotapaintlady, $14760 7/30/18 (goal $21,500)

[Jaguar]

Jun 30, 2018 12:45:50 GMT -5 Jaguar said:

This is just my Summer 2018 Survival Savings. Just hanging on for June & July nothing new to add. I got the first Shingrix vaccine on June 8th, so that's now started.

Saving Funds	Saving Goals	Current Saved	Percentage Saved	Woo Hoo Factor
Shingrix	$280.00	$140.00	50%	?
Moving Fund #1	$3,800	$60.00	1.58%	?
GRAND TOTALS	$4,080	$200.00	4.90%	?

Jaguar ~ $200.00 ~ 7/1/2018 ~ GOAL ~ $4080

This is still what I have, no extra for August and September might be worse.


Jaguar ~ $200.00 ~ 8/1/2018 ~ GOAL ~ $4080

[Maryland Monroe]

Update: Maryland_Monroe $17,317 7/31/18 (Goal $20,000)

[steph08]

steph08, $6,540.67, 7/31/2018, Goal $20,000

[azucena]

Jul 13, 2018 12:25:28 GMT -5 azucena said:

Jun 29, 2018 6:51:50 GMT -5 azucena said:

7/13/18 Azucena $15,320 of $25,000 for 61% (stretch $35,000 44%)

Backwards update   -$6145.  Finished paying off our upcoming cruise; thought maybe we would be farther ahead by now to cashflow it, but it just didn't quite work out that way.  We also paid for both girls birthday parties and back to school shopping this week.  Have to book flights for $1200 total after next payday and then vacation will be completely covered.  

I think the $25k goal is still possible before year end and will keep working towards it.  In the next 1-2 yrs we will need to replace one of our vehicles and I'd like to spend at most $15k in cash.

7/31/18 Azucena $9,175 of $25,000 for 37%

[seriousthistime]

	Goal	Amt. Saved 7/27/18	% Saved	Roses
Survival fund	$6,000	$2,707	45.5%
Property tax	$5,000	$3,369	67.4%
Household Exp.	$1,000	$900	90.0%
Weekly Savings	$1,898	$1,212	63.9%
Gifts	$2,600	$1,610	61.9%
EF increase	$2,600	$1,606	61.8%
Pet care	$600	$604	100.0%
Misc. Exp.	$800	$560	70.0%
Total	$20,498	$12,568	61.3%

Seriousthistime, 7/27/18, $12,568 (Goal $20,498) 

 
In August, I expect to add another rose or two, and make a bigger deposit to the Survival Fund since it's lagging behind a bit. 

For Weekly Savings, I plan to deposit the smallest and the largest remaining amounts each paycheck.  For this update, I added $52 plus $11.  Next time will be $50 plus $12. 


Weekly Savings chart:

	$12	$13	$14
$18	$19		$21		$23	$24
$25		$27		$29		$31
		$34			$37
$39	$40		$42	$43	$44
$46		$48		$50

[nikiz628]

UPDATE 8/1

Jun 26, 2018 14:09:54 GMT -5 nikiz628 said:

UPDATE: 

2018	START	CURRENT	GOAL	STILL NEEDED
E.F.	$760.00	$2000.00	$2000.00	$0 GOAL MET
DS1'S SAVINGS	$1528.06	$1667.54	$1750.00	$82.46
DS2'S SAVINGS	$425.33	$550.00	$550.00	$0 GOAL MET
DISNEY FUND	$1895.47	$5000.00	$5000.00	$0 GOAL MET
TOTALS	$4608.86	$9217.54	$9300.00	$82.46

NikiZ628 8/1/18 $9217.54 (Goal $9,300 WIRS1)

Hit our biggest savings goal of the year this week!! We finally have $2000 in our E.F., and it feels so good. $40 a week will continue to be deposited in it for the rest of the year, so I need to make a new E.F. goal to reflect that. DS1's savings should hit goal next month after his birthday. We deposit any money he receives into his savings because, let's be honest, the kid DOES NOT need more toys (or whatever he would spend it on at the store). H and I are trying to get some time together to sit down for our money meeting- once we do that, we can lay out all new savings goals for the remainder of the year. 

[seriousthistime]

July updates!

Stars	Name	Amt. Saved	Goal	% Saved	Roses	Smilies
	Ava	$2,621	$5,500	47.7%
	azucena	$9,175	$25,000	37.0%
	chiver78	$382	$910	42.0%
	debthaven	$200	$600	33.3%
	finnime	$3,760	$32,000	11.8%
	forwardwego	$35,200	$44,000	80.0%
	idlechatter	$20,224	$28,350	71.3%
	ilovedolphins	$0	$13,000	0.0%
	Jaguar	$200	$4,080	4.9%
	lazysundays	$5,117	$60,000	8.5%
	Maryland Monroe	$17,317	$20,000	86.6%
	megaptera	$0	$6,500	0.0%
	minnesotapaintlady	$14,760	$21,500	68.7%
	nidena	$2,910	$33,280	8.7%
	nikiz628	$9,218	$9,300	99.1%
	plugginaway22	$11,938	$16,800	71.1%
	Poptart
	Saving4Norway	$14,000	$16,500	85%
	sealy	$1,000	$25,000	4%
	seriousthistime	$12,568	$20,498	61.3%
	shanendoah	$1,950	$2,500	78.0%
	snapdragon	$13,290	$18,700	71.1%
	steph08	$6,541	$20,000	32.7%
	teachermom	$15,200	$100,000	15.2%
	tobinikui	$25,352	$50,708	50.0%
	trimatty471	$10,005	$17,300	57.8%

[trimatty471]

Jan 5, 2018 8:34:59 GMT -5 trimatty471 said:

Trimatty 07/31/2018:  $11,470.13 (Goal = $17,300)

2018	Goal	Current	Need	Complete %
Roth IRA	1,200.00	1,200.00	0	100.00%
Countdown to debt payoff	10,000.00	5,019.69	4,980.31	50.20%
Vacation	2,400.00	2,000.44	399.56	83.35%
Replace	1,200.00	1,200.00	0	100.00%
Home Maintenance	1,000.00	1,000.00	0	100.00%
Holiday	1,500.00	1,050.00	450.00	70.00%
Total	$17,300.00	$11,470.13	$5,829.87	66.30%

 

Sorry for the late post.  Had a minor setback this month.  I had to get my vehicle touched up since someone decided to scratch my bumper.  But I did participate in a "Uber Frugal" challenge.

[forwardwego]

July Shoutouts part 1 of 2:


Hi Ava ! Congratulations on getting your CPA (should I say license or certificate?) I apologize that I may not have acknowledged you earlier when you joined. I can't remember  . It looks like you have hit a plateau, but have some saving opportunities on the horizon. Good job with the $2621 saved so far 


azucena Though backwards is not fun, this is still a win. You paid for a cruise, parties/gifts, back-to-school, and are prepping for flight expense. And did all that without incurring debt. Keep up the good work. Keep that $25K goal in your sights, you can do it. I'd love to hear more about your strategy on saving ahead for the replacement vehicle. 

debthaven Hola WIRfriend! Kudos on 200 saved and being 33.3% accomplished which is more than on target since you joined us midyear!  is a fun set of smileys too!

finnime Good job continuing to build your EF, and sinking and survival funds  . We are glad you are here, and we are here for you too 

Jaguar Keep holding steady, Maybe things will turn a corner by September 

lazysundays Kudos on squeezing out an extra $545 from allotted spending to bump up your July progress to $1895. That takes you over $5K Looking forward to seeing what you accomplish in August with the "extra" check at your disposal! 

Maryland Monroe Awesome job with $17317 saved! your numbers tend to have a nice ring to them 

minnesotapaintlady That's a drag to lose the part-time job income. Are there any leads or opportunities to replace that? Good work being still more than on pace for the year with 68.65%  

nikiz628 Kudos to you for being thisclose to scoring the first  in 2018! Don't leaving me hanging, quick deposit $82.46  Looking forward to seeing your upsized goals!

[forwardwego]

Shoutouts part 2 of 2:

plugginaway22 Kudos on over $900 additional saved in july, and achieving a new milestone with over 70% to goal, Nice work budgeting toward a new mattress soon 


Saving4Norway Good work with update of $14K, 10 roses,
and the best poker hand of smileys
And sneak peeking ahead shows that your dancing banana is waiting for you in the August updates  .  


sealy good job checking in for July.    How does the rest of August look? 

seriousthistime Good work being ahead of target on 7 of your 8 line items and well ahead on total saved! It's exciting that September will bring a win for your WIR Race 6, looking forward to seeing your savings grow even more. You'll have the survival fund up to full speed soon  . Thank you for your continued contribution to keeping the Savers organized, summarized, and motivated  .

shanendoah Good work turtling, 78% to goal rocks! 

snapdragon I have lost track, please remind me when and where for your vacation 
Nice work nailing down over $13K AND over 70% to goal 

steph08 Good job adding nearly $500 to savings in July!

tobinikui Congrats on hitting your 50% mark very early in July, and on being free of all debt except the mortgage!! You also do a good job of sinking funds and cash flowing. (I need to build skill in that area) Holding good thoughts that your DH's interview went well  .

trimatty471 Late posts will happen, and all updates are good! I'd like to hear about your Uber Frugal challenge. Sorry you had to deal with a Murphy. Nice work with nearly $11.5K!!

[Saving4Norway]

Fund	2018 Goals	Last Month	This Month	% Met	Roses
Saving for 2019	1	0	0	0%
Denmark 2018	1000	1000	1000	100%	Jan
Deductibles	500	500	500	100%	March
Gifts&Donations	1500	1500	1500	100%	May
Palm Springs 2018	500	500	500	100%	March
Motorcycle Trips 2018	1500	1500	1500	100%	May
Home Improvement	5000	2500	5000	100%	Aug
Cultural	2000	2000	2000	100%	May
Vacay Prop	1000	1000	1000	100%	Feb
Hockey Season Tickets	1000	1000	1000	100%	March
Christmas	500	500	500	100%	March
Adventures	2000	2000	2000	100%	April
TOTAL	16501	14000	16500	100%

Saving4Norway 8/3/18 $16,500 (Goal $16,500)

[snapdragon]

Snapdragon 8/07/18 --- $ 13,239.55 / $ 18,700 -- Update

Car/House $ 2357.64 / $3500

Savings $ 4021.43 / $4000   

Travel $ 3159.92 / $4500

Property Taxes $ 2200.11 / $2200    

Lasik $ 1500.45 / $ 4500


New Totals $ 13,239.55 / $18,700

I paid for the last of my trip and 1 excursion yesterday. I also have new shoes on order. Things are starting to look up generally and I am so grateful for the support around here. 

I have new windows being installed sometime this month so that should really cut down on the noise that surrounds my complex. That also means that we should have sliding windows in the LR. That will be soooooo nice to have. 

[shanendoah]

shanendoah: 10-August 2018 $2050 (Goal: $2,500/stretch $5,000)

Put in the extra $50 this week so that I will be sure to meet my goal over the next 4.5 months.

[seriousthistime]

	Goal	Amt. Saved 8/10/18	% Saved	Roses
Survival fund	$6,000	$2,809	46.8%
Property tax	$5,000	$3,572	71.4%
Household Exp.	$1,000	$900	90.0%
Weekly Savings	$1,898	$1,274	67.1%
Gifts	$2,600	$1,710	65.6%
EF increase	$2,600	$1,706	65.6%
Pet care	$600	$604	100.0%
Misc. Exp.	$800	$595	74.4%
Total	$20,498	$13,170	64.3%

Seriousthistime, 8/10/18, $13,170 (Goal $20,498) 

 
I've been focusing on my Racers debt, throwing all extra money I can to that without letting my regular savings fall behind. Obviously, the Survival Fund is a bit behind. In September, my Racers debt will be done and I expect to start directing more money to the Survival Fund and bring that up to speed. 


Weekly Savings chart:

		$13	$14
$18	$19		$21		$23	$24
$25		$27		$29		$31
		$34			$37
$39	$40		$42	$43	$44
$46		$48

[azucena]

Jul 31, 2018 8:03:30 GMT -5 azucena said:

Jul 13, 2018 12:25:28 GMT -5 azucena said:

My long term thinking is to keep $25k in cash savings and work up to $35k when we know we have a vehicle replacement coming like in 1-2 yrs.  DH's is going to hit 200k soon and he was telling me the CD player quit working this week and we were joking about 200k miles being the limit for when a CD player must need to be replaced.  He does use it quit often but only has a short commute so said keep driving it without one.

Someone asked about our vehicle strategy...We paid for our last vehicle for $12k in cash about a yr ago (mostly due to inheritance for about exactly that much from my dad).  The prior vehicle and the one before that we paid off in 1 yr instead of the 4 yr loans.  Basically we haven't had a car payment for about 8 of the last 10 years.  It really does make a difference in savings if you can get to where you don't have a $300/month car payment and keep it that way.  The key is to keep that $300/m going into savings instead of getting used to spending it.  Another key is to buy used cars in the $12k range and drive them as long as possible.  You can save up that $12k in 3.33 yrs and we tend to keep our cars 5-7 yrs.  To put it in perspective, our combined income is $150k and I'm driving a 2011 sienna that had a huge dent in the front bumper for 8 months after I hit a deer.  Finally got tired of it and found a place that popped it out for $200.  DH drives a 2006 highlander.  Bonus is when kids spill or mess it up in other ways (and they will!), we just shrug our shoulders and clean it up the best we can.  Same thing when I hit a deer.  If I'd had a car that was only a yr or two old, I'd have been upset and would also probably have opted to pay way more to have it fixed perfectly.

A bit up and down over the past couple of weeks but ended up +$425 from the last paycheck.

Azucena $9,571 of $25,000 for 38%