Bogleheads.org

delamer wrote: ↑Sat Apr 01, 2023 10:45 am How about charity?

I give to a number of charities.

runner540 wrote: ↑Sat Apr 01, 2023 4:02 pm

AnnetteLouisan wrote: ↑Sat Apr 01, 2023 1:59 pm Gross $25k/mo
(Gross of base only: $20k)
Net of taxes: $18k
(Net of base salary only: $14k)
Net of taxes, FSA and 401K& IRA catch up and maxing? = $10k

So spend 5k/mo on fixed costs and $2k a month on discretionary? And 3k mo on saving and investing?

I guess.

Mine are 3300-3800 and 600-800, saving and investing the rest.

So not that far off.

Or using the 14k, 7k on fixed costs, invest 4k and spend 3k.

That too sounds sort of ok.

Do any rules of thumb consider giving? Is my giving a want or a need/fixed expense or investment in my community?

Donations, for me, are a budget line item. I consider them a fixed cost, except I don’t really think in terms of discretionary and fixed costs. I do zero based budgeting.

whodidntante wrote: ↑Sat Apr 01, 2023 3:56 pm

Cheez-It Guy wrote: ↑Thu Feb 23, 2023 6:11 am

placeholder wrote: ↑Thu Feb 23, 2023 12:58 am

Candor wrote: ↑Wed Feb 22, 2023 4:54 pm I'm not sure if this site does this but I have seen some that suspend members for a certain period of time if they run afoul of the rules and then let them back after the suspension. I have no idea if this is the case with this member.

People can be suspended on this site.

Yes, they certainly can be.

Yes, they can. Some have been banished. Some banish themselves. It's the worst-paying job imaginable, so if it stops being enjoyable, might as well.

Mods: he doesn’t mean you have the worst paying job. He means we forum members don’t get paid. It’s a subtle joke.

Jags4186 wrote: ↑Sat Apr 01, 2023 3:23 pm Personal Finance podcasts are geared towards the masses, not single 50-something lawyers who make $300k+/yr. Most people don’t have enough and need to prioritize spending. You have more than enough and can prioritize saving.

FWIW, I’d bet there are plenty of your peers spending the amounts listed in your OP and then some.

Yes, a lot of them do. I used to a little bit too. Maybe I will again. With inflation etc it’s hard to plan or even know how you’re really doing. Also I want flexibility. Likely will retire within the next 3-5 years.

I don’t know who that is, and why does he matter? Generally, guilt is not going to help you. Generally, people that talk about “money things” online are talking about low-ish income people. If you don’t want to spend $3k per month, then don’t. Obviously the more you save, the more you save. For me, I feel like I live with a pretty loose budget in NYC, and I spend about $2k monthly on stuff - groceries, dining out, utilities, entertainment, transportation etc, and about 8k annually, extra $670 monthly on travel/vacations. $2600 monthly budget, which includes gas, electric, internet service etc. If someone told me to spend $4k instead I would just say “no, thank you” and buy more VTI/VXUS He’s this podcaster. He has a fun show about finances...

Gross $25k/mo
(Gross of base only: $20k)
Net of taxes: $18k
(Net of base salary only: $14k)
Net of taxes, FSA and 401K& IRA catch up and maxing? = $10k

So spend 5k/mo on fixed costs and $2k a month on discretionary? And 3k mo on saving and investing?

I guess.

Mine are 3300-3800 and 600-800, saving and investing the rest.

So not that far off.

Or using the 14k, 7k on fixed costs, invest 4k and spend 3k.

That too sounds sort of ok.

Why is it so important that it be anonymous? So they don’t ask for more? Because they are doing something wrong? Could this association harm you in some way?

The truth is $500 will not save them and is not worth this stress. Also they may not spend it the way you wish.

It appears DW has done this before. This may be some kind of issue with DW. Guilt, attention seeking, being lonely? Bored? I know it’s well meaning but it might not be healthy.

If it’s for a neglected child maybe there is another way to help.

It’s only been a day and a half. Guy has a life. Wife and two very young children. He hasn’t been AWOL for a week or two. Give him time.

Wait - so now none of you has health insurance? That’s a massive risk at your ages and with two young children. I assume most of your expenses are housing related. A $2M house with 20 percent down. I’d set a time limit (like 6 months) on how long you will hold onto this if you don’t find work (assuming you don’t have $10 mil). And get health insurance asap. Good luck though! I don’t see any indication that they don’t currently have health insurance, just that they will need to pay for it themselves in the near future. His severance package probably included coverage for a year paid by the company, or something similar. He says 6 months severance is up and his wife has a job but doesn’t get health insurance. You’re right he may be on cobra,...

Wait - so now none of you has health insurance? That’s a massive risk at your ages and with two young children. I assume most of your expenses are housing related. A $2M house with 20 percent down. I’d set a time limit (like 6 months) on how long you will hold onto this if you don’t find work (assuming you don’t have $10 mil). And get health insurance asap. Good luck though! I don’t see any indication that they don’t currently have health insurance, just that they will need to pay for it themselves in the near future. His severance package probably included coverage for a year paid by the company, or something similar. He says 6 months severance is up and his wife has a job but doesn’t get health insurance. It’s buried in his first questio...

I reached $1M a while back and was pleased but too busy to celebrate. I reached $2M recently and thought: “that’s nice. That’s really very nice.” But now it’s on to the next one.

I got certain raises and I’m pleased.

I do exult in certain things but they are less about achievement these days and more about people.

(Anticlimactic, not anticlimatic)

I don’t know who that is, and why does he matter? Generally, guilt is not going to help you. Generally, people that talk about “money things” online are talking about low-ish income people. If you don’t want to spend $3k per month, then don’t. Obviously the more you save, the more you save. For me, I feel like I live with a pretty loose budget in NYC, and I spend about $2k monthly on stuff - groceries, dining out, utilities, entertainment, transportation etc, and about 8k annually, extra $670 monthly on travel/vacations. $2600 monthly budget, which includes gas, electric, internet service etc. If someone told me to spend $4k instead I would just say “no, thank you” and buy more VTI/VXUS "If someone told me to spend $4k instead I would...

Dave55 wrote: ↑Sat Apr 01, 2023 9:38 am Annette, Tony (abuss368) just told me that you can spend all you want, he will cover any shortfall's in your budget.

Dave

Whew! Thanks!!

I don’t know who that is, and why does he matter? Generally, guilt is not going to help you. Generally, people that talk about “money things” online are talking about low-ish income people. If you don’t want to spend $3k per month, then don’t. Obviously the more you save, the more you save. For me, I feel like I live with a pretty loose budget in NYC, and I spend about $2k monthly on stuff - groceries, dining out, utilities, entertainment, transportation etc, and about 8k annually, extra $670 monthly on travel/vacations. $2600 monthly budget, which includes gas, electric, internet service etc. If someone told me to spend $4k instead I would just say “no, thank you” and buy more VTI/VXUS "If someone told me to spend $4k instead I would...

I don’t know who that is, and why does he matter? Generally, guilt is not going to help you. Generally, people that talk about “money things” online are talking about low-ish income people. If you don’t want to spend $3k per month, then don’t. Obviously the more you save, the more you save. For me, I feel like I live with a pretty loose budget in NYC, and I spend about $2k monthly on stuff - groceries, dining out, utilities, entertainment, transportation etc, and about 8k annually, extra $670 monthly on travel/vacations. $2600 monthly budget, which includes gas, electric, internet service etc. If someone told me to spend $4k instead I would just say “no, thank you” and buy more VTI/VXUS He’s this podcaster. He has a fun podcast show about ...

Ramit Sethi says you can spend 20-35 percent of your take home pay on what he calls “guilt free spending” (exclusive of your fixed costs). In my case, using the most conservative numbers possibly (and understating the case) it would be $2800-3600/mo.

My current nonessential spending (I never feel guilt about spending) is about $600/mo and I buy and do whatever I want. $2800-3600 each month on nonessentials (unless one is just really unhappy or has a lot of kids) seems crazy to me.

He’s wrong, isn’t he?

(Updating to say he actually says 20-35 percent of net, which for me is, most conservatively using base salary only, is $2800-4900!)

Silverado wrote: ↑Sat Apr 01, 2023 8:33 am Just checked my portfolio. Being wrong is pretty lucrative. I’ll take it.

Bogleheads are in high form this morning. Fine fettle and all that.

Walmart has excellent duvets under $40. The place to spend is on the duvet cover sheets.

Wait - so now none of you has health insurance? That’s a massive risk at your ages and with two young children. I assume most of your expenses are housing related. A $2M house with 20 percent down. I’d set a time limit (like 6 months) on how long you will hold onto this if you don’t find work (assuming you don’t have $10 mil). And get health insurance asap. Good luck though!

stan1 wrote: ↑Fri Mar 31, 2023 5:16 pm For now OP has moved on it appears, maybe he will come back eventually and clarify whether the Roth 2 in fact has $9500K ($9.5M) in it, or $950K (one too many zeros) in it, or $9500 (no K) in it there really isn't much to do other than speculate.

I think NoK would be a phenomenal name for a poster … a sad but sympathetic character starting out.

OP, it’s time to cut costs. Don’t rely on inheritance.

Check yourself before you wreck yourself, as the song goes - why are you or DW doing this at all? sending cash anonymously to someone. Have you done this before? This sounds like you might want to reflect on whether your reasons are sound, whether you feel lonely or guilty and whether you have thought through potential unintended consequences. Such as casting yourself in a bad light if that mail gets scanned. Creating a feeling of shame or even indignation on the part of the recipient (it happens). Annoyance if it doesn’t reach the intended recipient. Disappointment and disillusionment when no more such gifts arrive. Fostering a belief in magical thinking. The list goes on. Sure you can donate or lend but anonymous cash through the mail sou...

I’m surprised the phrase “running thence” isn’t part of the description. That used to be part of the terminology. Nothing wrong with it not being there, it just means that what you gave is less antiquated than some property descriptions. Ie, the wording you cite is actually an improvement.

I think you're in the wrong place to ask this question, financially savvy people are going to understand the benefits of paying with credit cards. The people who struggle with finances are almost always pushed to stay away from credit and use cash or debit only to keep themselves out of credit card debt troubles. Dave Ramsey pushes cash and debit only because he sees people who get buried in credit card debt and can't get out. I also see a lot of "boomers" on non financial forums "brag" that they use cash or debit only so they can remind everyone that they have been completely debt free since 1982. I think there are a number of issues getting a little tangled up here: 1. Do Millennials prefer using bank debit cards *wit...

I don't think anyone here is arguing that cash back is "free." We all can acknowledge those that carry balances along with merchant fees pay for the cash rewards we receive. If you collect cash back or not, there are still going to be some users that carry balances and pay interests, and merchants will still may fees. That is life and the nature of economic activity. I learned in school that economic activity was exchange of value. Capital, labor, innovation, natural resources, something. What value did the receiver of CC "rewards" give back to the merchants and the cc users carrying balances and paying interest? Nothing, right? Something there isn't healthy. It's really poor capitalism too. The whole point of capitalis...

I think it depends on your view of debt as a droll little game or an existential threat. For most it’s somewhere between those two, but we won’t know until the game is over.

What I mean by that is some will make $ on their card, some will overspend, some will take unnecessary flights for mileage points, some will be cautious at first but gradually lose track of it, and some will suffer declining credit scores when they lose their jobs and can’t keep up or when dementia strikes.

It plays out over time, so we don’t really know how it will end for us. It’s a process.

Yes, these are promotion incentives, like sales, discounts, samples and specials. Just very creative ones.

Debit (with a credit feature) rewards me for not spending. I can’t afford to pay 18 percent more than the purchase price. Also I’ve had no need for credit once I started working and paid off my student loans. So other than student loans I’ve probably paid less than $1,000 in interest in my entire life. I try to collect it, not pay it. That makes my life much easier. I hope you are aware that you don't pay any credit card interest if you pay your bill in full each month Yes I am aware of that. Thank you. What percentage of global cardholders pay it off in full every month? Not to jump into the fray here, but I think part of what IvyGirl is saying here resonates a bit with me. Specifically I get her feeling of vulnerability and hurt pride. I...

Question about this thread. Are we talking about bank debit cards with a credit feature, and using the credit feature, or just straight debit using the debit feature only?

runswithscissors wrote: ↑Mon Mar 27, 2023 3:15 am Debit cards are better for those that may not have the best self control with their spending.
Or tend to buy things with money they don't currently have. As this classic SNL clip highlights -

https://youtu.be/R3ZJKN_5M44

But it's also true that all else being equal, those with credit cards spend more money than those with debit cards. Cash back rewards, miles and other credit card perks all reinforce more spending. I wonder how much less money I'd spend if I bought everything with cash (i.e. debit)...

My family does this and we spend a lot less than many families do. I spend $38-45k per year and earn $340k.

I’m Generation X but have a lot of traditionally Millennial sensibilities (I was ahead of my time). I have preferred bank debit with a credit feature, although I do have one charge card that I pay in full every month. My preference for debit (with a credit feature), originally, was my ignorance of the security risks and my thought that it that it eliminates the middleman. It’s the convenience of a credit card for purchases that require it, without the cost, and it’s one less bill to worry about paying timely with a busy schedule and a lot of travel (I started out when paying by checks in the mail was still the principal way to pay bills). I tried 3 other credit cards (one bank card, one major branded card and one store card) but they didn’t...

Andy12345 wrote: ↑Mon Mar 27, 2023 5:23 am Thank you everyone for the input and suggestions. The plan now is for my mom to put 7500$ into tIRA the next four years that she’s allowed as well as increase her savings rate and decrease her spending. Her risk tolerance for investing is apparently zero so we are going to make use of CDs for now. The first 7500$ is going into ally’s 5 year 4.25% CD.

Isn’t she eligible for a Roth IRA?

Not to be alarmist but I would get her away from the advisor ASAP. These situations are ripe for fraud or bad investment decisions, the last thing she can afford it to loose her assets. I would want her to have her money at Schwab, VG, Fidelity etc. She does not need an advisor with you in the picture. &1 @Annette and @Gibson, Not to get sidetracked from the OP's question, but not sure why you say this. The original post said that this particular advisor put her in Dimensional Funds (which, while slightly more expensive than Vanguard/Fidelity funds, are not outrageously expensive; if funds like that are offered in 401(k) most people would say they are reasonable), plus $170 annually (mentioned in a subsequent post). I am as much hardco...

Not to be alarmist but I would get her away from the advisor ASAP. These situations are ripe for fraud or bad investment decisions, the last thing she can afford it to loose her assets. I would want her to have her money at Schwab, VG, Fidelity etc. She does not need an advisor with you in the picture. &1 @Annette and @Gibson, Not to get sidetracked from the OP's question, but not sure why you say this. The original post said that this particular advisor put her in Dimensional Funds (which, while slightly more expensive than Vanguard/Fidelity funds, are not outrageously expensive; if funds like that are offered in 401(k) most people would say they are reasonable), plus $170 annually (mentioned in a subsequent post). I am as much hardco...

GibsonL6s wrote: ↑Sun Mar 26, 2023 8:24 pm Not to be alarmist but I would get her away from the advisor ASAP. These situations are ripe for fraud or bad investment decisions, the last thing she can afford it to loose her assets. I would want her to have her money at Schwab, VG, Fidelity etc. She does not need an advisor with you in the picture.

&1

Is it term life or whole or universal life?

I have direct deposit into 2 banks. For a while I had auto transfer from a bank into fidelity.

My 401K, IRA, taxable and SS are earmarked for my 70s and beyond.

My pension is for my 60s, 70s, 80s and … 90s?

My salary, savings and treasuries are for my 50s.

This may already have been mentioned but catch up contributions for 401K, IRA, and buying service credit for pensions from prior jobs, if applicable.

Before trying annuities check out the piece on annuity fraud on the front page of today’s Wall Street Journal.

What is bleak about this? 80k income, close to $150k net worth, no dependents, low tax bracket, living below her means, room to cut costs, projected $2600/mo cola’d SS in a few years and no debt? And 60s are the new 40s. Plus a smart and caring son who is a Boglehead. Not bad! With senior discounts, Medicare and working until 70 as long as her health holds out I don’t see a problem. The only cloud I see is keeping her money with a friend’s son in law. That tends to not go well.

Deleted by author - duplicate.

Yeah, A/C is not a luxury here in Florida; it's at or near the top of the list of must-haves. I’ve often wondered how they managed life there in the 1920s and before refrigeration. I lived in Houston for 5yrs with no AC. It wasn't something I ever really thought about, and I did without things during that period in my life that were much closer to a need than temperature control. To this day I do a ton of things that a lot of people think are outrageously "uncomfortable" (ie. cold showers, walk or ride my bike almost everywhere regardless of weather, fasting, hang dry all our clothes, my entire family fights and grapples for fun, etc.); has nothing to do with money. It's amazing how quickly you acclimate to discomfort when you do...

Recognizing some pros and cons, and understanding that it is in part a reaction to workplace excesses and unfairness, and conspicuous consumption, I have mixed feelings about it. I think it works for some people but harms others. The best things about it are that it encourages thrift, long term financial planning, independent-mindedness and entrepreneurship. The worst things about it from my perspective are: 1. it can glorify hedonistic retirement and leisure, 2. it can incentivize people to leave employment right at the time when they are best positioned to contribute through their education and professional experience (also right at the time when work can be most rewarding), 3. it can whitewash / incentivize disloyalty to employers, 4. it...

Bogleheads is head and shoulders above any other forum of course. rational reminder has a good podcast today on goal setting. And Reddit is useful for specialty non financial topics.

They are both 100% insured, so I don’t see the point. People are too panicked these days Who is providing insurance for option B? OP states, Option B - $250,000 in a money fund at Fidelity, which is NOT FDIC insured. The Securities Investor Protection Corporation (SIPC) https://www.bogleheads.org/wiki/SIPC_protection_for_mutual_funds As the linked article points out the two insurance types are very different. FDIC is protecting the value of the money held in your account at a bank. If the bank fails and there are insufficient assets with which to pay depositors, then the depositors are made whole and given their full account value up to the 250k limit. SIPC is very different. SIPC is only insuring the securities in your account are actuall...

OP, thank you for asking the question. I’m sorry that you feel worried and it’s understandable given all the alarming news, but your FDIC insured deposits are perfectly safe, even from a bank failure. They are deposits rather than investments like money market mutual funds, which may lose value. I keep my money in FDIC insured checking, savings, money market deposit accounts and CDs, as well as series I treasury bonds, treasury bills and Fidelity money market mutual funds. I am not worried at all about any of these holdings. Separately, I have good quality equity index funds, a bond fund, a stable value fund, an international equity index fund a treasury bond fund. I am not worried at all about any of these holdings. As long as your “small ...

I think we should start a thread for optimists who look with confidence to the future prepared to tackle any obstacle. Remember that feeling? Let’s roll! I’m done with all this Angst and malaise. We have everything to be grateful for and confident about, we bogleheads more than most.

The last thing I’m worried about is concentration in the S&P.

Dido, White Flag

Nicolas wrote: ↑Fri Mar 24, 2023 4:01 pm Satie: Six Gnossiennes — Olga Scheps — simply beautiful

Hauntingly beautiful. Brilliant.

Leesbro63 wrote: ↑Sat Mar 25, 2023 10:21 am

AnnetteLouisan wrote: ↑Sat Mar 25, 2023 10:19 am

Leesbro63 wrote: ↑Sat Mar 25, 2023 10:01 am What percent of the population actually retires on $1M or more? What percent retires on only Social Security?

I don’t have statistics on this but I’d guess:

Under 15 percent of the U.S. population retires on a million or more.

Over 50 percent retire only on social security.

I’d bet that’s pretty accurate.

Totally wrong on the second part - I just checked and it’s only 12 percent.

Leesbro63 wrote: ↑Sat Mar 25, 2023 10:01 am What percent of the population actually retires on $1M or more? What percent retires on only Social Security?

IRS data show only 12 percent rely on SS for 90 percent of their income.