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Three vacations a year, a BMW 5 Series, a Toyota Land Cruiser, private school & music lessons for two children, AND charity? Yeah, super average.  Bad Purchase posted:401k contributions have an annual cap of 18k per person (actually 20.5k now, but this graphic is old) It's weird that I can't just contribute whatever I want to my 401k. It (much like everything) seems like another way to keep class mobility from happening. edit: 
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May 9, 2022 17:14
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Guys. It's not a real budget. It's a made up troll article. Please stop being flabbergasted. It'll be ok.
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May 9, 2022 17:24
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"A new BMW 5 Series with a bow on it in the driveway for christmas?! NOOOooo!!" *flings brick through the tv for having a commercial on it*
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May 9, 2022 17:27
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wow wtf happened to my topic?
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May 9, 2022 17:32
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sigher posted:I'm the loving $18,000.00 given to Charity on the yearly. never donate to charity
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May 9, 2022 17:33
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ellasmith posted:wow wtf happened to my topic? it came out with your oily black shits
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May 9, 2022 17:35
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YeahTubaMike posted:It's weird that I can't just contribute whatever I want to my 401k. It (much like everything) seems like another way to keep class mobility from happening. 401ks are a way to invest with pre-tax income, but you are deferring the taxes until you withdraw. if they were uncapped, they would be abused (even more) by the wealthy to avoid income tax during their earning years and pay a lower rate in their retirement years (in theory, unless they are so wealthy that even the required minimum distribution pushes them to the highest tax bracket anyway). but even if traditional 401ks were uncapped, they would not be the ideal tool for class mobility because that would imply that you are starting at a lower tax rate income and working your way into a higher tax rate over time, which is the opposite situation 401ks are structured to take advantage of. they're basically just for rich people to avoid some taxes in their highest earning years. that's the scam. in terms of long term class mobility, you'd be better off using a roth IRA, where you pay with post-tax money now and then withdraw tax-free in retirement. the good news is that roth IRA contributions are subject to income limits, and you can't use them if you make over some amount (in the low $100k range for an individual). it's one of the better designed systems, in terms of not completely favoring the wealthy and actually providing a good benefit to lower income people who still have some money in their budget to invest. but, of course, the limits on those contributions are like 1/3rd of the limit on 401k contributions, and i've never heard of an employer match program for those either. so it's basically the IRS giving working class people their first taste of advantageous tax policy for free, to get them addicted. but after that first ~$6k, if you want to continue to cheat your fellow citizens out of rightful tax payments toward the public good, you'll have to keep earning more and more to take advantage of more and more systems that only apply to the wealthy, you goddamn junkie.
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May 9, 2022 17:37
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ellasmith posted:wow wtf happened to my topic? i'm using it to make long, boring posts about tax sheltered retirement options 
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May 9, 2022 17:38
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I've probably given 18k to Charity in a year before but that was years ago and she has since stopped dancing at Delilah's & I heard she got married.
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May 9, 2022 17:39
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Bad Purchase posted:but even if traditional 401ks were uncapped, they would not be the ideal tool for class mobility because that would imply that you are starting at a lower tax rate income and working your way into a higher tax rate over time, which is the opposite situation 401ks are structured to take advantage of. they're basically just for rich people to avoid some taxes in their highest earning years. that's the scam. Roth vs pre-tax is basically a time machine for rich people chunks of $20k (up to something ridiculous like $60k if you have an advantaged match) to pay tax on the day you owe the least. Also after tax contributions exist although they are down the list of tax advantaged investment opportunities.
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May 9, 2022 17:49
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Big Beef City posted:Guys. The link in the screenshot -- https://cnb.cx/2JzTifY -- goes to an actual article though, and that article links to another article. Bad Purchase posted:401ks are a way to invest with pre-tax income, but you are deferring the taxes until you withdraw. if they were uncapped, they would be abused (even more) by the wealthy to avoid income tax during their earning years and pay a lower rate in their retirement years (in theory, unless they are so wealthy that even the required minimum distribution pushes them to the highest tax bracket anyway). Fair enough. I'm still trying to figure this poo poo out.
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May 9, 2022 17:49
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Three vacation a year is just a regular rear end retail worker thing in Europe though(one vacation to Thailand, one domestic, one in another European country that is not a freezing hellhole)
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May 9, 2022 17:54
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They are real people and they are exceptional idiots (maybe restating the fact since it mentions they are lawyers) used for clickbait because it can drive both poor people clicks outraged that these people feel average and rich people clicks that these people are so dumb with their money.
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May 9, 2022 17:55
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I'm getting a lot of envy vibes from this thread, have to be honest. Nobody is stopping you from putting in some elbrow grease and live like them too. Like, what is stopping you from being *squints at job titles* a partner in daddy's law firm?
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May 9, 2022 18:01
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Bad Purchase posted:i'm using it to make long, boring posts about tax sheltered retirement options They're good posts tho
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May 9, 2022 18:02
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YeahTubaMike posted:The link in the screenshot -- https://cnb.cx/2JzTifY -- goes to an actual article though, and that article links to another article. I'll be dipped. And the one YOU linked to goes to another that the author claims are a real couple. Though could it be he claimed that and is now defending it? Maybe, probably not. If you scroll down in the one I linked to there's a section entitled "All The Push-backs Addressed" (if you want to search for it and skip the rest of the blah blah) in which the author addresses many points in this thread. Most with what seem to substantive evidence as to why they have the numbers broken down that way. Whether you think they're CORRECT in explaining it, I'll leave to you. Big Beef City fucked around with this message at 18:09 on May 9, 2022 |
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May 9, 2022 18:05
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Bad Purchase posted:are you including state taxes in this? in some states they will pay an extra ~10% on top of the federal tax rate. with those salaries i assume they live in california or nyc or somewhere like that with high state / local taxes. Ok, NYS tax on that adds $29k. Still under by 46 grand! We could add New York City's additional income tax, but a) it still won't get us there b) state and local taxes are deductible from federal, so that gives us back like $9-10k on the previous $110k figure c) if you live and work inside NYC, why the gently caress do you have a beemer and a lux SUV that you drive enough to need $5k gas d) lmao read about the ways that people dodge the NYC tax sometime, it's amazing Also I just realized that the $20k property tax should be deductible, as well as interest on all these huge home & car loans. These people have a really lovely accountant!
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May 9, 2022 18:05
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There is no way in hell anyone making half a mill annually is paying a 40% effective tax rate. Now I’m not saying they shouldn’t be, I’m just saying they aren’t because they can afford the good accountants.
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May 9, 2022 18:08
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zedprime posted:Most people with a 401k have access to Roth 401k, and they share limits with pretax. You can do similar punch above your weight in 401k as a Roth IRA, maybe even more so, by minmaxing Roth vs pre-tax 401k. Contribute to Roth as long as you are making less then your expected distribution, switch to pretax if you ever start making more than your expected distribution. Yes, that's a good point. Every plan I've had defaults to traditional, but some have had the option to switch to roth contributions, so if you do have the option and you're in a low tax bracket right now, it's probably a good idea or at least will not work out any worse in the long run than a traditional 401k. The other gamble that comes with the roth vs traditional choice is whether you expect income tax rates in the future to be higher or lower than now. Which is basically a question of how long the musical chairs of trillion dollar deficit expansion through republican tax stimulus can continue. Will we ever become insolvent and be forced to raise taxes? And if so, which bracket of society will have to pay up? When I first started working a salary job after college and had to read up on all this stuff, I assumed that tax rates would be higher by the time I retire, since they are extremely low compared to most of the 20th century. But now that I'm older, I realize that I should never bet against the wealthy, who I am now convinced would rather be forced to pay with their necks during a crisis than voluntarily pay a single cent of their wealth for the public benefit.
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May 9, 2022 18:09
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Big Beef City posted:I'll be dipped. the original article actually has some pretty good analysis and also a well mannered and constructive comment section. one commenter says the following: "This should really be entitled “Scraping By On $500,000 A Year: How to Poorly Structure your Life and Spend Your Money Frivolously”.", the rest of their post is a little dated and biased to their experiences (of course), but otherwise good commentary. a lot of follow up comments that set out their own budgetary numbers and show that even in NY, even living and "elite professional" lifestyle, this budget is wasting money
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May 9, 2022 18:33
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You all are just assuming this is a four-person family. It makes a lot more sense if you realize it is a 20-person "family" cult.
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May 9, 2022 20:33
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They aren't reporting all the free child labor if they're a 20 people cult
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May 9, 2022 20:34
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Colonel Cancer posted:They aren't reporting all the free child labor if they're a 20 people cult Well yeah, that’s kind of how cults work
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May 9, 2022 20:43
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It doesn't really matter if the infographic is entirely made up because I live in neighborhood full of the less wealthy versions of these people. Probably 150-250 for most households, but there's a 100k truck on payment in every driveway, a deluge of boats and campers in the summer, an escalade for every soccer mom and highschool kids driving mustangs but if you ever have the pleasure of talking with these people they will unpromptedly mention Biden's poor economy makes it hard to afford their grocery bill. Somehow they could afford that high 4 low 5 figure vacation they want to show you pictures of tho. There's a palpable sense of keeping up with the joneses. The funny part is my wife had the fortune of picking up this house in early 2014, where it was less than a 250k which was gonna be good for resale based on it's location/size regardless of a bubble and boy is it bubbling. We both make ~70k/yr which I feel like should put is in a comfortable spot but there's literally no way we could live here if we were to have tried to buy it now, I think last time I checked on zillow it estimates we're like a half mill home. Bad Purchase posted:Yes, that's a good point. Every plan I've had defaults to traditional, but some have had the option to switch to roth contributions, so if you do have the option and you're in a low tax bracket right now, it's probably a good idea or at least will not work out any worse in the long run than a traditional 401k. ArbitraryC fucked around with this message at 01:52 on May 10, 2022 |
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May 10, 2022 01:47
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Big Beef City posted:I mean Three Olives could use a parachute We only take one week long vacation a year. But my mother asked me this weekend if I get one or two weeks vacation time and it was just like WTF, you actually think I might get 5 days off per year?
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May 10, 2022 01:58
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Three Olives posted:We only take one week long vacation a year. But my mother asked me this weekend if I get one or two weeks vacation time and it was just like WTF, you actually think I might get 5 days off per year? Having a job that even would let someone spend that much on 3 vacations a year is privilege beyond money. My boss is wealthy by any standards but he's also in a bus factor 1 position, does legitimately do a necessary job, and despite him getting far more PTO than me he takes less vacation days because he simply can't. Dude can't even take extended weekend trips with his son annually without spending each morning hungover answering calls.
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May 10, 2022 02:06
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The thing is that they felt like r-words before that was canceled, so now it's average feels for this family. Take that libs! 
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May 10, 2022 02:29
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ArbitraryC posted:Having a job that even would let someone spend that much on 3 vacations a year is privilege beyond money. My boss is wealthy by any standards but he's also in a bus factor 1 position, does legitimately do a necessary job, and despite him getting far more PTO than me he takes less vacation days because he simply can't. Dude can't even take extended weekend trips with his son annually without spending each morning hungover answering calls. play cats in the cradle on repeat in the office
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May 10, 2022 02:41
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Taking 5 weeks to fly home this year 
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May 10, 2022 03:51
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$21k per kid in childcare (let's face it it's most likely private school tuition) $6k per kid for lessons $0 for college savings "Sorry junior you'll have to take out student loans since we blew a poo poo ton of money on underwater clarinet lessons. Hey at least it got you into college!"
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May 10, 2022 23:53
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Ebola Roulette posted:$21k per kid in childcare (let's face it it's most likely private school tuition) that's a good point. and just imagine the musical bubbles Also "no fancy bags, shoes, or threads" is entirely subjective. I doubt they're hitting up payless to get shoes. And, just how many shoes? I have a pair of boots, flip-flops, "work shoes", and running shoes. But, I'm probably the anomaly in that sense. And I can't remember the last time I bought a "bag". I'm a dude (obvi, because of the amount of shoes), so no purses, but do you get a couple new purses a year? I have a backpack from 12 years ago that one strap is held together with black duct tape. ... i'm sounding more and more like a hobo, but I own a house, I swear. Own a couple differently sized duffle bags, a sea bag. .. Not much else. I have spent a decent amount on polos, because I got fat. lol. blight rhino fucked around with this message at 00:59 on May 11, 2022 |
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May 11, 2022 00:47
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I've thought it over and I think I would love to have loads of money
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May 11, 2022 01:11
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Panic! At The Tesco posted:I've thought it over and I think I would love to have loads of money Philistine! I’ll remain in my barrel lest I become a subject of Mammon!
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May 11, 2022 01:32
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blight rhino posted:that's a good point. It's not really because the nearly 30k a year they spend per kid on that poo poo could easily just go directly towards paying for tuition. State uni cost are outrageous but still less than that by a wide margin, even out of state. Alternatively the parents (who have their own loans allegedly) might be the sort of lovely parents that don't understand or care the FAFSA is need based and having rich parents that documentedly won't help doesn't change the calculations. Kid wiil still be fine presumably because of parental connections regardless of whether they "have to take out loans" anyways because despite general public perception that the US is a meritocracy it isn't and you can p much predict how much a kid will earn based on how much their parents earn so who cares if they take a maximum loan each year when they'll probably be gifted a cushy job out of the gate. If anything it'll give em a nice "I pulled myself up by my bootstraps" story they can use to troll their employees with in their do nothing middle management position.
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May 11, 2022 01:44
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