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SiGmA_X posted:1) Definitely move to Vanguard. My friend loses 15% of his annual return from higher ER, not to mention his mgt fee! Hi, I thought I had shared this already. We are both 30 years old... BTW, I can't thank you enough...your posts with the debt calculator are absolutely invaluable. I don't think that getting rid of PMI should be as high on my list as the other debts... I think I will stop contributing to the Roth for a while and move it over to vanguard soon. I'll look into the Vanguard IRA and how to open it this week. I don't know if I have time to do it today. I'll also take that 900$ a month and add it to my snowball...that says i'll own the house outright by 2019... DogsCantBudget fucked around with this message at 21:13 on Dec 1, 2014 |
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Dec 1, 2014 20:49
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DogsCantBudget posted:Rurutia posted that, not me... My mistake. I still think you should play around with retirement calculators. You're already talking about stopping contributing. And okay, remove the house. You still have an assload of debt. Rurutia posted:
Gotcha. Sorry I can't provide more info. He was more a causal acquaintance, and at the time I knew him I was an unemployed broke stoner, so we didn't really talk finances. I don't count pension plans in savings because I like to be conservative with estimates. Personal preference. It's like hiding $20 bills in jackets. I do count RRSPs in net worth. I just think for someone like DCG, he'd have a tendency to pat himself on the back and fool himself into thinking he's doing better than he is. Or maybe I'm projecting. I'd say retiring at 55 while putting kids through college is pretty sweet. I was a goddamn moron for 20 years of adulthood and am pretty much starting fresh. I've been an rear end in a top hat about money most of my life, including buying a house for 3% down when I was 26.
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Dec 1, 2014 21:24
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I was just asking because I was doing our forecasting and with saving 50% of our gross income for 'retirement' but also paying for 2 kids + college, it seemed like we wouldn't be able to retire until 55. Just wanted to understand how he did what he did especially since I calculated travel to increase our expenses. I was also surprised that you personally don't count your payroll deductions in your savings since it is such a huge portion of ours. 17.5k per person is a pretty large amount in 401k alone.
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I think you did mention age before, I'm just too lazy to 'search' on my phone. Lol. With 35yrs to retirement, a 10/90 bond/stock and 70/30 domestic/international allocation should be pretty good. That mirrors what Vanguard 2050 does, and it has a 7% inception to date and 13% 5yr avg return. E: Perhaps something like this: pre:Input Monies: % $60,000.00 Total Stock Market Index VTSAX 0.63 $37,800.00 Intl Total Stock VTIAX 0.27 $16,200.00 Domestic Bonds VBMFX 0.08 $4,800.00 International Bonds BNDX 0.02 $1,200.00 SiGmA_X fucked around with this message at 23:29 on Dec 1, 2014 |
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Dec 1, 2014 21:37
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DogsCantBudget posted:I think I will stop contributing to the Roth for a while. Don't do this. Someone in your income bracket should have no difficulty maxing out tax-advantaged retirement accounts. The problem with taking a break for a while is that you can't go back and make up the contributions you missed. e: You also seem very excited to get rid of PMI, which is good, but you plan to use market appreciation to help you get there, which may not be. Have you checked with your lender? Depending on the exact type of loan you have, they can force you to keep PMI based on the original value of the house, or if they do permit you to drop PMI based on a reappraisal, they can require more than 20% equity or have minimum PMI durations, etc. SlapActionJackson fucked around with this message at 23:14 on Dec 1, 2014 |
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Dec 1, 2014 23:10
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DogsCantBudget posted:
Why do you have so much extra room in a house you were planning to sell in a year, anyway? What the hell does one couple with no kids need three bathrooms for?
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Dec 1, 2014 23:11
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Old Fart posted:My mistake. I still think you should play around with retirement calculators. You're already talking about stopping contributing. And okay, remove the house. You still have an assload of debt. Ah, I see. Just fyi, 401k's/IRAs here are more similar to RRSPs than pensions. Pensions aren't the norm in the US.
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Dec 1, 2014 23:14
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Main Paineframe posted:Why do you have so much extra room in a house you were planning to sell in a year, anyway? What the hell does one couple with no kids need three bathrooms for? The Jones's aren't gonna keep up with themselves.
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Dec 2, 2014 02:41
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SlapActionJackson posted:Don't do this. Someone in your income bracket should have no difficulty maxing out tax-advantaged retirement accounts. The problem with taking a break for a while is that you can't go back and make up the contributions you missed. SlapAction: Roth is not tax advantaged...it's post tax...Are you also saying that its not worth it to pay my debt off by nearly a year faster to pause this for a year? Also: my mortgage is such that once my house hits 20% and I reappraise I can get out of it. There also has to be at least a year of residence in the house, but I assume that I won't hit that 20% before a year of residence(will be April of 2015). I don't have one of those "lifetime PMI" mortgages from FHA. DogsCantBudget fucked around with this message at 15:24 on Dec 2, 2014 |
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Dec 2, 2014 15:09
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DogsCantBudget posted:SlapAction: Roth is not tax advantaged...it's post tax...Are you also saying that its not worth it to pay my debt off by nearly a year faster to pause this for a year? Roth is tax advantaged, it's just that the advantage is in the future (when you pay no tax on withdrawls) instead of now (when you pay no tax on contributions). Generally any account with preferential tax treatment to a standard investment account (where you pay income tax on money you earn before you invest it and then pay capital gains tax on the appreciation of your investments) is considered "tax advantaged."
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Dec 2, 2014 15:30
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Mr.Radar posted:Roth is tax advantaged, it's just that the advantage is in the future (when you pay no tax on withdrawls) instead of now (when you pay no tax on contributions). Generally any account with preferential tax treatment to a standard investment account (where you pay income tax on money you earn before you invest it and then pay capital gains tax on the appreciation of your investments) is considered "tax advantaged." So should I keep going with contributions, or should I pay off debt faster? What say you oh great and powerful BFC? DogsCantBudget fucked around with this message at 17:03 on Dec 2, 2014 |
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Dec 2, 2014 16:58
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Don't stop with Roth, just cut back eating out and you'll save over $17,500 per year right there. Last month was $1500, this month was $1100... That's at least $12,000 per year you can save. The retirement plans and $90/month of insurance are not the problem. You make an assload of money and we're all jealous, but you spend like a motherfucker. $600 in cash savings is insane for your situation. That's barely 4 new tires on a car and an oil change. If something bigger than that came up how would you handle it?
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Dec 2, 2014 17:17
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I just want to raise my hand and say that it's cool and great that you have a grasp on what you can do, but at the end of the day I still don't see a budget that you've thought out for december in which you drastically cut down your spending. I see a lot of pie in the sky dreams and reconciliations. What are your plans for not spending a metric fuckload on entertainment this month?
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Dec 2, 2014 17:20
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DogsCantBudget posted:Are you also saying that its not worth it to pay my debt off by nearly a year faster to pause this for a year? Yes. It's not worth it. Most of your debt is at low interest rates, so maxing out the Roth should take precedence over those. You should be able to pay off your high interest debt without impacting your Roth contributions if you're the least bit serious about curbing your spending.
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Dec 2, 2014 17:54
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Any updates on actually creating a budget?
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Dec 4, 2014 06:08
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My Rhythmic Crotch posted:Any updates on actually creating a budget? not really...I'm sticking to a goal of putting 3k into savings for this month, and as of now, it looks like I should be able to hit it. I'd like to have a paycheck ahead before I start using YNAB because it seems like it wants you to only spend money that you already have...
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Dec 5, 2014 02:24
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DogsCantBudget posted:I'd like to have a paycheck ahead before I start using YNAB because it seems like it wants you to only spend money that you already have... Sounds like you haven't had the lightbulb moment yet. That's okay, I was pushing 40 before it clicked with me.
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Dec 5, 2014 20:07
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DogsCantBudget posted:not really...I'm sticking to a goal of putting 3k into savings for this month, and as of now, it looks like I should be able to hit it. I'd like to have a paycheck ahead before I start using YNAB because it seems like it wants you to only spend money that you already have... So you have 2 financial goals you want to hit before starting to use a tool that can help you hit your financial goals?
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Dec 5, 2014 21:07
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DogsCantBudget posted:not really...I'm sticking to a goal of putting 3k into savings for this month, and as of now, it looks like I should be able to hit it. I'd like to have a paycheck ahead before I start using YNAB because it seems like it wants you to only spend money that you already have... Okay, so then why can't you use Mint to get a handle on your spending and track every dollar until you get a paycheck ahead?
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Dec 5, 2014 22:34
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The thread title confuses me because how can you be bad at something you don't do to begin with? You need to steer the focus of your thread to creating a reasonable budget. Everything else is pretty off target and not exactly helpful.
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Dec 5, 2014 22:48
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Scenty posted:Okay, so then why can't you use Mint to get a handle on your spending and track every dollar until you get a paycheck ahead? I'm doing exactly that...
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Dec 6, 2014 20:45
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I don't get the issue with using YNAB without being a check ahead? I had no issues doing that...
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Dec 6, 2014 21:51
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Make a budget. It's not that hard. Also, stop using so many loving ellipses.
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Dec 6, 2014 22:22
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DogsWontBudget
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Dec 7, 2014 00:49
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SiGmA_X posted:I don't get the issue with using YNAB without being a check ahead? I had no issues doing that... To be honest, I've been using YNAB for over a year and just now figured out that I can and should be reallocating my budget totals based on today's needs and amounts, even if it's sometimes a day to day reallocation. It never clicked that it's not about the month ahead so much as it's about what you have now and what you'd like to assign that money to. Hell, even making savings a budget item instead of a cash remainder didn't click until this week. I really should have watched the videos :p As our savings increases the month ahead is easier, but can still be as dynamic as we'd like it to be. For instance, we had a vet visit that was unanticipated. We'll eventually be savvy enough to have pre-budgeted but that wasn't the case this month. So instead of panic or cook the books we just pulled dollars from other categories to cover and now we can see we have less to spend on eating out. At least we have a comprehensive spending analysis for the last year!
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Dec 7, 2014 09:12
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So, we are on track to have ~2500 to pay towards debt at end of the month. However, I just did some quick numbers using a Withholding calculator and have a feeling I might be royally and totally hosed since we way underpaid taxes. To the tune of as much as 10k. (I fully expect flaming to start shortly). So, do I send that 2500 now towards my wife's school loan? Or do I sock it away towards the upcoming tax payment which I should have ready to go come April 15th(tax time). Also, do I contact an accountant(not HRBlock or one of those other sketchy places) to see what kind of magic they can work to save me some more money/deductions?(expected cost 300-350)
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Dec 15, 2014 16:28
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What changed from last year? Did you also underpay that much last year?
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Dec 15, 2014 16:40
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Spermy Smurf posted:What changed from last year? Did you also underpay that much last year? We underpaid by 4k last year...and didn't fix our W2s, and I got some decent amount of raises....I really feel like a failure right now for not fixing this situation on 1/1... And I can't find a good calculator that will tell me what my proper withholding should be(the one on IRS.gov only seems to give me what it should be for the rest of the year...will probably reset to 2015 come 1/1, but I'd like to know now, so I can fix my paycheck ASAP before my 1/1 paycheck comes in)
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Dec 15, 2014 16:42
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Did you write a budget yet?
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Dec 15, 2014 17:14
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It's only the 15th right now, and you have no budget. That 2500 is anything but guaranteed. In other words: Make a budget. Have you made a budget? Go make a budget.
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Dec 15, 2014 17:15
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He rather talk about his retirements, the house he wants to buy, his wife, eating out, austin lifestyle, his tax gently caress ups, and loving snowballing debt payments before he makes a budget.
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Dec 15, 2014 17:22
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He's going to have to take out a loan (or put the IRS payment on his Cabela's credit card) and then somehow make payments for that loan too.
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Dec 15, 2014 17:30
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 So a first pass at a budget with the upcoming bills I know that are due this month. But DCB, you say, you just said you had 2500 dollars left for the month. Well that number wasn't completely right, but it was close. This does not take into account an upcoming paycheck my wife has for 1700 coming in. So that 2500 is actually more like 2000. Obviously this budget doesn't take into account the upcoming mortgage payment, but that's not up till next month(at which point another set of paychecks for both of us will come in). Spermy Smurf posted:He's going to have to take out a loan (or put the IRS payment on his Cabela's credit card) and then somehow make payments for that loan too. What makes you think that? Given that I can obviously(based on the numbers above) save at least 2k a month, and I think more next month when we don't have any travel expenses. Also note, this is with nearly 2500 going into the (rainy day fund expenses) on a monthly basis:  If things go REALLY awry, I can withdraw from those if I *have to*. Current balance among all those accounts is roughly 3k. Also if things are "hair on fire" mode, I won't be happy about doing it, but I will withdraw from the RothIRA if I absolutely have to. I will not take a loan to pay tax burden. DogsCantBudget fucked around with this message at 17:45 on Dec 15, 2014 |
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Dec 15, 2014 17:41
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I'm not always the brightest guy, so bear with me if I am misunderstanding something, but are you honestly asserting that you can "save" $2500/mo when you earmarked most of that $2500 to be spent on house stuff, insurance, hobbies, travel, etc, while $900 of it is going to your IRA?
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Dec 15, 2014 17:57
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My Rhythmic Crotch posted:I'm not always the brightest guy, so bear with me if I am misunderstanding something, but are you honestly asserting that you can "save" $2500/mo when you earmarked most of that $2500 to be spent on house stuff, insurance, hobbies, travel, etc, while $900 of it is going to your IRA? so 1600 is in savings...of that, I doubt any of it can not be "made up" relatively quickly. Much of it is earmarked for "fun" expenses like nearly 700 between travel, hobbies, pedicure.
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Dec 15, 2014 18:03
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DogsCantBudget posted:
You have 2500 in savings. However, out of that you have 900 into an IRA and all the other items in the second screenshot. That's not savings. That's "poo poo I'm budgeting and have $0 in cash savings." A few months ago you didn't have more than $600 cash. I find it hard to believe you'll manage to save $10,000 cash for the IRS in 3 months.
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Dec 15, 2014 18:04
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Spermy Smurf posted:You have 2500 in savings. However, out of that you have 900 into an IRA and all the other items in the second screenshot. That's not savings. That's "poo poo I'm budgeting and have $0 in cash savings." Why 3 months? I thought April 15th was 4 months away. IfI can save 2k this month, put it away, and not touch it. I am pretty sureI can save more next month. We spent some money on Travel we probably shouldn't have(and some we couldn't avoid like luggage fees for a checked bag x2, which I had forgotten about, gently caress you United, gently caress you very much)(I figured the first carry on should be free, no?) Also, I'm thinking I'll do it just so I can post I told you so when it's saved. In fact, I'll accept a ban if I can't pay any tax burden(up to 10k) by April 15th without taking money out of retirement funds or any loans/new debt(I'll even take a screenshot of the line item from my bank account to show I wasn't faking), and start posting with my main account instead of my sock puppet. I might not be able to pay down other debts as quickly as I'd like in the meantime(the snowballs described in prior posts), but I *will* pay my tax burden. DogsCantBudget fucked around with this message at 18:16 on Dec 15, 2014 |
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Dec 15, 2014 18:11
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DogsCantBudget posted:so 1600 is in savings...of that, I doubt any of it can not be "made up" relatively quickly. Much of it is earmarked for "fun" expenses like nearly 700 between travel, hobbies, pedicure. Just in a nutshell, try to make a budget that reflects what ultimately happens with the money: - Group up hobbies, travel, entertainment, etc into a "blow" category. You and wifey each get your own blow money for the month. For example, you each get $400 to blow per month. If you want to take a vacation that costs $800 then you need to save up two months of blow to take the vacation. If you want a $1200 RC helicopter, you need to save up 3 months of blow. And so on. - Stop listing insurance, house stuff, etc as savings - the money is being accrued for a bit in a savings account, sure, but you're ultimately spending it on house junk or whatever.
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Dec 15, 2014 18:17
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Is this budget for the month of december, or as of this moment in time it's impossibly hard to tell. Especially with a 30 dollar restaurant budget...
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Dec 15, 2014 18:37
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DogsCantBudget posted:Why 3 months? I thought April 15th was 4 months away. IfI can save 2k this month, put it away, and not touch it. I am pretty sureI can save more next month. You haven't saved $2500 this month. You saved: $2576. Minus 916 to IRA Minus 200 to insurance Minus 300 to travel Minus 125 to clothing Minus 200 to home improvement Minus 263 for auto insurance Minus 275 for hobbies You currently have $293 earmarked for cash savings. But then you need gifts, housekeeping, pet care, wife pedicure, club dues... Get it? Your 2576 "savings" isn't actually savings when you spend the money. You are going to save $0 cash this month from what you've posted. No, I don't count the IRA as savings. That's retirement, that is completely different.
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Dec 15, 2014 18:52
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Spermy Smurf posted:You haven't saved $2500 this month. You saved: Woah....no, your math is ALL wrong As of today, the following is coming out of my checking account and going to the appropriate Cap360 buckets: 458 RothIRA 200 Life Insurance 125 Clothing 80 House keeping 60 Pet care 15 Wife pedicure 9 Sub10 monthly(this is a conglomeration of a lot of different smaller expenses that I didn't want like 50 different withdrawals for, it just didn't make sense) 150 Travel(I'll probably put this back since this is about what we spent over our budgeted amount in Mexico) 137.50 Hobbies All other amounts up above that aren't accounted for here have already been deposited on the 1st of the month... Currently my bank account has (as you can see from YNAB screenshot above) 3210 in it. 3210 - (458 + 200 +125+80+60+16+9+160+137.50) = 1964.50 Upcoming bill payments: 452 Lowes 112 Sallie Mae(Wife) 173 Granite State(Wife) 1964.50 - (452+112+173) = 1227.50 I then budgetted some other upcoming expenses: 120 cable(this was for our first 2 months of switching providers, due next week) 160 cell phone(contract expires next week, and then we'll see what we can renegotiate with them...) 1227.50 - (160+120) = 947.50 And then some other items to budget for this month: 1) Groceries: 200 2) Fuel: 100 3) Medical payments: 200 4) Holiday Gifts: 100 (this is actually 183 but there is 83 in the cap360 gift bucket) 5) Restaurants: 30 947.50 - (200+100+200+100+30) = 317.50 I basically placed this all in the budget in YNAB above did I not?
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Dec 15, 2014 19:03
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