Author Topic: Overheard at Work  (Read 8473303 times)

cerat0n1a

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Re: Overheard at Work
« Reply #11350 on: November 26, 2015, 05:18:51 AM »
Today at lunch.

CW: do you know person ABC in office earns so much and is saving more than 75% salary. I wonder what will he do with so much money
Me: May be he wants to retire early
CW: (silence)

I am happy someone in office is planning for FIRE

Over the last 10-15 years, I've had quite a few co-workers from India, often here in Britain on short-term 1-2yr assignments. Many of them have been earning UK-sized salaries while here, but tried to keep expenses super low (often by having big group of people sharing a small apartment) with the express aim of going back home with enough money to buy a house/have a lavish wedding/retire early. So I'm kind of surprised that the concept isn't better known in India.

Merrie

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Re: Overheard at Work
« Reply #11351 on: November 26, 2015, 07:11:54 AM »
Coworker: I wonder when we'll have a 25% employee discount day again.
Me: They always seem to announce them just a day or two ahead of time.
Coworker: Yeah. And they're never on pay week! They should be on pay week. I can't afford to buy anything otherwise.
Me: ... yes, I bet that's frustrating for a lot of people.

Ceridwen

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Re: Overheard at Work
« Reply #11352 on: November 26, 2015, 07:29:20 AM »
Coworker: I wonder when we'll have a 25% employee discount day again.
Me: They always seem to announce them just a day or two ahead of time.
Coworker: Yeah. And they're never on pay week! They should be on pay week. I can't afford to buy anything otherwise.
Me: ... yes, I bet that's frustrating for a lot of people.

Ugh, sad.  I get a lot of that in my office too.  "I can't go out for lunch today, but tomorrow's pay day so let's go then!".

nobodyspecial

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Re: Overheard at Work
« Reply #11353 on: November 26, 2015, 10:13:42 AM »
Coworker: I wonder when we'll have a 25% employee discount day again.
Me: They always seem to announce them just a day or two ahead of time.
Coworker: Yeah. And they're never on pay week! They should be on pay week. I can't afford to buy anything otherwise.
Me: ... yes, I bet that's frustrating for a lot of people.

Ugh, sad.  I get a lot of that in my office too.  "I can't go out for lunch today, but tomorrow's pay day so let's go then!".
That's ridiculous - haven't these people heard of overdrafts?

Le Barbu

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Re: Overheard at Work
« Reply #11354 on: November 26, 2015, 11:12:47 AM »
Coworker: I wonder when we'll have a 25% employee discount day again.
Me: They always seem to announce them just a day or two ahead of time.
Coworker: Yeah. And they're never on pay week! They should be on pay week. I can't afford to buy anything otherwise.
Me: ... yes, I bet that's frustrating for a lot of people.

Ugh, sad.  I get a lot of that in my office too.  "I can't go out for lunch today, but tomorrow's pay day so let's go then!".
That's ridiculous - haven't these people heard of overdrafts?

payday loan, loan sharking, there is plenty of possibility!

SwordGuy

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Re: Overheard at Work
« Reply #11355 on: November 26, 2015, 12:02:20 PM »
Colleague of mine, in July:

"Yes, I invested some money. I don't know where exactly, I don't know what I invested in, and I don't know the current value. But I will just ignore it and then in the future it will turn out to have grown wildly!"

Step 1. Invest
Step 2. Forget about what you invested
Step 3. ???????
Step 4 .PROFIT!

One of the major investment houses did a study to find out the demographics of their most successful investors:

1st place:  Dead people.
2nd place: People who invested and forgot they had done so.

Why?  Because neither group panics and sells low when the market drops.  And they don't pull out their investments to buy stupid stuff.



dude

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Re: Overheard at Work
« Reply #11356 on: November 27, 2015, 06:49:39 AM »
Co-worker is an exec assistant making @$65k.  Just bought her "dream car," a Volvo SUV with ALL the bells and whistles (cameras, warning buzzers, navigation, etc., etc., etc.).  To her credit, she bought it used, but it was still like $26k.  I looked it up and it's one of Consumer Reports' most-expensive cars to own.  Just the other day, she said she was talking to one of the executives here about the car; he bought his wife one. He asked her, "Have you had the oil changed on it yet?"  She replied, "No, why?"  He said, "When we took my wife's in, it was $180 for an oil change."  Oh shit.  Apparently the thing takes like 7 quarts of oil, it has to be premium oil, and it's got to be done by the dealer to maintain the warranty?  The other thing about this co-worker is she is hell on cars -- never fails to find ways to run over curbs, find the largest potholes in the state, or run into things.  I cringed at the thought of how much this "dream car" might cost her over the next few years.

dragoncar

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Re: Overheard at Work
« Reply #11357 on: November 27, 2015, 01:35:06 PM »
Co-worker is an exec assistant making @$65k.  Just bought her "dream car," a Volvo SUV with ALL the bells and whistles (cameras, warning buzzers, navigation, etc., etc., etc.).  To her credit, she bought it used, but it was still like $26k.  I looked it up and it's one of Consumer Reports' most-expensive cars to own.  Just the other day, she said she was talking to one of the executives here about the car; he bought his wife one. He asked her, "Have you had the oil changed on it yet?"  She replied, "No, why?"  He said, "When we took my wife's in, it was $180 for an oil change."  Oh shit.  Apparently the thing takes like 7 quarts of oil, it has to be premium oil, and it's got to be done by the dealer to maintain the warranty?  The other thing about this co-worker is she is hell on cars -- never fails to find ways to run over curbs, find the largest potholes in the state, or run into things.  I cringed at the thought of how much this "dream car" might cost her over the next few years.

$26k car making $65k actually sounds pretty spot on for 90% of the population

Let her know she doesn't have to take it to the dealer to keep the warranty (is it even still under warranty?)  That's illegal.  http://www.smart-service.com/blog/2013/05/warranty-rights

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Re: Overheard at Work
« Reply #11358 on: November 27, 2015, 02:45:03 PM »




CW: What do you think you need to retire?

Me: Idk, a couple million and many who want to retire early would think that's too much.

CW: WHAT? I'm aiming for like $12M!



$12M! OMG.

Similar experience with a good friend of mine. I told him that I could definitely retire in our current HCOL area on $2M, he said no way, you'd need at least $8M here. I will never understand what some people think they need so much money for.

nobodyspecial

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Re: Overheard at Work
« Reply #11359 on: November 27, 2015, 03:26:01 PM »
Similar experience with a good friend of mine. I told him that I could definitely retire in our current HCOL area on $2M, he said no way, you'd need at least $8M here. I will never understand what some people think they need so much money for.
Take current before-tax salary, multiply by 40 years and then double it because you want to travel and play golf and buy a boat, then double it again just in case

Travis

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Re: Overheard at Work
« Reply #11360 on: November 27, 2015, 04:09:50 PM »




CW: What do you think you need to retire?

Me: Idk, a couple million and many who want to retire early would think that's too much.

CW: WHAT? I'm aiming for like $12M!



$12M! OMG.

Similar experience with a good friend of mine. I told him that I could definitely retire in our current HCOL area on $2M, he said no way, you'd need at least $8M here. I will never understand what some people think they need so much money for.

I would imagine a lot of them think the money is being drawn from a simple savings account rather than a portfolio that continues to gain interest.

mairuiming

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Re: Overheard at Work
« Reply #11361 on: November 27, 2015, 07:42:14 PM »
Over the last 10-15 years, I've had quite a few co-workers from India, often here in Britain on short-term 1-2yr assignments. Many of them have been earning UK-sized salaries while here, but tried to keep expenses super low (often by having big group of people sharing a small apartment) with the express aim of going back home with enough money to buy a house/have a lavish wedding/retire early. So I'm kind of surprised that the concept isn't better known in India.

Hi Ceratonia,
Concept of saving money is well known in India.
Our government's job is to collect tax. We don't get mediclaim, social security, pension, have very few good public school, have sub standard public hospitals, etc etc.

Let me explain why Indians on short term assignment abroad save 60-80% salary.
Putting some numbers will give a better perspective.

In India someone with 5 year work experience (say in IT industry) will take home close to INR 1 Million = GBP 10k = USD 15k per year. (foreign exchange rates)
If this person save 50% salary, annual saving is GBP 5k (or USD 7.5k).
Please bear in mind, with a smaller salary base maintaining 50% saving rate is a bit difficult especially when you have dependent (read kids, ageing parents, non-working wife).

Now consider this person is sent to UK/US on a 1 year assignment with take home pay of GBP 40k (or USD 60k) per year.
Key personal objective of this person in this 1 years is to save a heck lot of money.
Say, this person saves 50% salary (conservative estimate).
Per year saving during these foreign assignments is GBP 20 k (or USD 30k).

As you can see, during foreign assignment even if someone maintains the same saving rate as they would have done in India, this person can save 4 times more (in actual FX rates).
This provide a huge push towards Financial independence.

For those on this forum wondering why salaries in India are so low. Quick explanation is PPP - purchasing power parity.
In 2015 foreign exchange rates, 1 USD = 65 INR (Indian rupee).
However, In 2015 PPP rates, 1 USD = 21 INR (Indian rupee).
For example, If a Macdonald burger is $5 in US it will cost 5*21 = INR 110 in India (not 5 * 65 = INR 325). Therefore, salary of INR 1 million has purchasing power equivalent to USD 47k (or GBP 30k).

But when someone is on an assignment to US/UK etc, this person brings back hard cash/currency which is converted NOT on PPP but on FX rates.

Hope this explains.

Side note 1: Early retirement is a bit difficult to achieve in India provided consumer price inflation rate for last 25 years averaged at 8% per year. For FIRE, investments have to be put in high risk areas with returns of 13+% just to pay off your expenses and maintain purchasing power of your investments. With higher returns comes higher risk of volatility. Having said that, I know few people who are actively aiming for FIRE.

Side note 2: I read the forum and people talk about house size 2000+ sq. ft. In India, a 1000 sq. ft. apartment is considered luxury and will cost north of 5 times annual salary for average person (may be 10-15 times in good locations). YES, maintaining a high saving rate is extremely important and a foreign assignment goes a long way in putting a larger down payment. Home loan interest rate from public banks in India is close to 10% p.a.

Side note 3: In India it is quite common for parents to cover the cost of kids college education. Because education loan in India is expensive. Public banks give loan @ 14+% p.a. Interest is charged while kid is in college. So If you borrow USD 25k for 4 year college education (current rate for good college in India), when child start working he/she would be looking at repayment on USD 40k. Maximum loan repayment tenure is 15 years. So repayment is USD 520 per month. This is higher than 50% of entire take home salary for a fresh college graduate. So parents save for their retirement and kids college.

Rant over. Have a good day.
« Last Edit: November 27, 2015, 09:29:51 PM by mairuiming »

MgoSam

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Re: Overheard at Work
« Reply #11362 on: November 27, 2015, 09:51:24 PM »
Over the last 10-15 years, I've had quite a few co-workers from India, often here in Britain on short-term 1-2yr assignments. Many of them have been earning UK-sized salaries while here, but tried to keep expenses super low (often by having big group of people sharing a small apartment) with the express aim of going back home with enough money to buy a house/have a lavish wedding/retire early. So I'm kind of surprised that the concept isn't better known in India.

Hi Ceratonia,
Concept of saving money is well known in India.
Our government's job is to collect tax. We don't get mediclaim, social security, pension, have very few good public school, have sub standard public hospitals, etc etc.

Let me explain why Indians on short term assignment abroad save 60-80% salary.
Putting some numbers will give a better perspective.

In India someone with 5 year work experience (say in IT industry) will take home close to INR 1 Million = GBP 10k = USD 15k per year. (foreign exchange rates)
If this person save 50% salary, annual saving is GBP 5k (or USD 7.5k).
Please bear in mind, with a smaller salary base maintaining 50% saving rate is a bit difficult especially when you have dependent (read kids, ageing parents, non-working wife).

Now consider this person is sent to UK/US on a 1 year assignment with take home pay of GBP 40k (or USD 60k) per year.
Key personal objective of this person in this 1 years is to save a heck lot of money.
Say, this person saves 50% salary (conservative estimate).
Per year saving during these foreign assignments is GBP 20 k (or USD 30k).

As you can see, during foreign assignment even if someone maintains the same saving rate as they would have done in India, this person can save 4 times more (in actual FX rates).
This provide a huge push towards Financial independence.

For those on this forum wondering why salaries in India are so low. Quick explanation is PPP - purchasing power parity.
In 2015 foreign exchange rates, 1 USD = 65 INR (Indian rupee).
However, In 2015 PPP rates, 1 USD = 21 INR (Indian rupee).
For example, If a Macdonald burger is $5 in US it will cost 5*21 = INR 110 in India (not 5 * 65 = INR 325). Therefore, salary of INR 1 million has purchasing power equivalent to USD 47k (or GBP 30k).

But when someone is on an assignment to US/UK etc, this person brings back hard cash/currency which is converted NOT on PPP but on FX rates.

Hope this explains.

Side note 1: Early retirement is a bit difficult to achieve in India provided consumer price inflation rate for last 25 years averaged at 8% per year. For FIRE, investments have to be put in high risk areas with returns of 13+% just to pay off your expenses and maintain purchasing power of your investments. With higher returns comes higher risk of volatility. Having said that, I know few people who are actively aiming for FIRE.

Side note 2: I read the forum and people talk about house size 2000+ sq. ft. In India, a 1000 sq. ft. apartment is considered luxury and will cost north of 5 times annual salary for average person (may be 10-15 times in good locations). YES, maintaining a high saving rate is extremely important and a foreign assignment goes a long way in putting a larger down payment. Home loan interest rate from public banks in India is close to 10% p.a.

Side note 3: In India it is quite common for parents to cover the cost of kids college education. Because education loan in India is expensive. Public banks give loan @ 14+% p.a. Interest is charged while kid is in college. So If you borrow USD 25k for 4 year college education (current rate for good college in India), when child start working he/she would be looking at repayment on USD 40k. Maximum loan repayment tenure is 15 years. So repayment is USD 520 per month. This is higher than 50% of entire take home salary for a fresh college graduate. So parents save for their retirement and kids college.

Rant over. Have a good day.

Awesome post! Where in India are you (if you don't mind me asking, feel free to respond by PM if you prefer).

cerat0n1a

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Re: Overheard at Work
« Reply #11363 on: November 28, 2015, 11:06:38 AM »
Great post, mairuiming.

mm1970

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Re: Overheard at Work
« Reply #11364 on: November 28, 2015, 06:29:39 PM »
Over the last 10-15 years, I've had quite a few co-workers from India, often here in Britain on short-term 1-2yr assignments. Many of them have been earning UK-sized salaries while here, but tried to keep expenses super low (often by having big group of people sharing a small apartment) with the express aim of going back home with enough money to buy a house/have a lavish wedding/retire early. So I'm kind of surprised that the concept isn't better known in India.

Hi Ceratonia,
Concept of saving money is well known in India.
Our government's job is to collect tax. We don't get mediclaim, social security, pension, have very few good public school, have sub standard public hospitals, etc etc.

Let me explain why Indians on short term assignment abroad save 60-80% salary.
Putting some numbers will give a better perspective.

In India someone with 5 year work experience (say in IT industry) will take home close to INR 1 Million = GBP 10k = USD 15k per year. (foreign exchange rates)
If this person save 50% salary, annual saving is GBP 5k (or USD 7.5k).
Please bear in mind, with a smaller salary base maintaining 50% saving rate is a bit difficult especially when you have dependent (read kids, ageing parents, non-working wife).

Now consider this person is sent to UK/US on a 1 year assignment with take home pay of GBP 40k (or USD 60k) per year.
Key personal objective of this person in this 1 years is to save a heck lot of money.
Say, this person saves 50% salary (conservative estimate).
Per year saving during these foreign assignments is GBP 20 k (or USD 30k).

As you can see, during foreign assignment even if someone maintains the same saving rate as they would have done in India, this person can save 4 times more (in actual FX rates).
This provide a huge push towards Financial independence.

For those on this forum wondering why salaries in India are so low. Quick explanation is PPP - purchasing power parity.
In 2015 foreign exchange rates, 1 USD = 65 INR (Indian rupee).
However, In 2015 PPP rates, 1 USD = 21 INR (Indian rupee).
For example, If a Macdonald burger is $5 in US it will cost 5*21 = INR 110 in India (not 5 * 65 = INR 325). Therefore, salary of INR 1 million has purchasing power equivalent to USD 47k (or GBP 30k).

But when someone is on an assignment to US/UK etc, this person brings back hard cash/currency which is converted NOT on PPP but on FX rates.

Hope this explains.

Side note 1: Early retirement is a bit difficult to achieve in India provided consumer price inflation rate for last 25 years averaged at 8% per year. For FIRE, investments have to be put in high risk areas with returns of 13+% just to pay off your expenses and maintain purchasing power of your investments. With higher returns comes higher risk of volatility. Having said that, I know few people who are actively aiming for FIRE.

Side note 2: I read the forum and people talk about house size 2000+ sq. ft. In India, a 1000 sq. ft. apartment is considered luxury and will cost north of 5 times annual salary for average person (may be 10-15 times in good locations). YES, maintaining a high saving rate is extremely important and a foreign assignment goes a long way in putting a larger down payment. Home loan interest rate from public banks in India is close to 10% p.a.

Side note 3: In India it is quite common for parents to cover the cost of kids college education. Because education loan in India is expensive. Public banks give loan @ 14+% p.a. Interest is charged while kid is in college. So If you borrow USD 25k for 4 year college education (current rate for good college in India), when child start working he/she would be looking at repayment on USD 40k. Maximum loan repayment tenure is 15 years. So repayment is USD 520 per month. This is higher than 50% of entire take home salary for a fresh college graduate. So parents save for their retirement and kids college.

Rant over. Have a good day.
This was enlightening.  I'm well known for being a frugal one at my office, and at my prior job too.

When I met my boss at my last company, we chatted.  He's from India.  He saved $6k his first year in graduate school, which was 50% of his salary.

(In California)

HairyUpperLip

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Re: Overheard at Work
« Reply #11365 on: November 30, 2015, 09:26:23 AM »
Rant over. Have a good day.

Awesome post! Where in India are you (if you don't mind me asking, feel free to respond by PM if you prefer).
[/quote]

yes, I agree - great post. Also curious what part of India you reside in?



mairuiming

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Re: Overheard at Work
« Reply #11366 on: November 30, 2015, 06:57:18 PM »
Rant over. Have a good day.
--
Awesome post! Where in India are you (if you don't mind me asking, feel free to respond by PM if you prefer).
yes, I agree - great post. Also curious what part of India you reside in?

I am from Meerut (tier 2 city in North India. 70km/45mile from New Delhi)
Currently working in Beijing (China) on a 2 yr assignment.

ShoulderThingThatGoesUp

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Re: Overheard at Work
« Reply #11367 on: December 01, 2015, 07:21:30 AM »
I sheepishly admitted that I had shopped on Black Friday, because I bought a new dishwasher. I mentioned that installing it was annoying because I made two separate hardware store trips for plumbing parts. Coworkers were super impressed that I installed a dishwasher, because apparently that's magic.

(The dishwasher that came with the house was designed in a way that made it disgusting and impossible to clean.)

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Re: Overheard at Work
« Reply #11368 on: December 01, 2015, 09:01:41 AM »
Two people in my area have bought new cars in the last month.  One was a new muscle car (I think it's a camero with a lot of options), the other a used truck (for ~$25k).  Each time, there was a parade of people who went out and looked at it.

mlejw6

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Re: Overheard at Work
« Reply #11369 on: December 01, 2015, 09:07:35 AM »
Two people in my area have bought new cars in the last month.  One was a new muscle car (I think it's a camero with a lot of options), the other a used truck (for ~$25k).  Each time, there was a parade of people who went out and looked at it.

That reminds me: my coworker got a new car recently. It's a BMW SUV. However, it only seats 4 people because it has this weird console thing in the middle of the back seat. It's bigger, but less useful than his previous car: a Civic. Lol!
But, at least he doesn't brag about it.

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Re: Overheard at Work
« Reply #11370 on: December 01, 2015, 09:12:13 AM »
Bonus season is coming up at my company (where bonus's are really just deferred salary) Anyways.  i have a coworker who is much older than me, still has student loans and has pre-ordered a motorcycle, it arrives at the end of this week but they can't pick it up til they get that bonus cash.

Making Cookies

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Re: Overheard at Work
« Reply #11371 on: December 01, 2015, 09:51:58 AM »
Two people in my area have bought new cars in the last month.  One was a new muscle car (I think it's a camero with a lot of options), the other a used truck (for ~$25k).  Each time, there was a parade of people who went out and looked at it.

That reminds me: my coworker got a new car recently. It's a BMW SUV. However, it only seats 4 people because it has this weird console thing in the middle of the back seat. It's bigger, but less useful than his previous car: a Civic. Lol!
But, at least he doesn't brag about it.

Now I have to go look that up. How would the back seats fold down? That's the biggest advantage of the wagon body style (SUV or sporty wagon).

MgoSam

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Re: Overheard at Work
« Reply #11372 on: December 01, 2015, 10:14:28 AM »
Bonus season is coming up at my company (where bonus's are really just deferred salary) Anyways.  i have a coworker who is much older than me, still has student loans and has pre-ordered a motorcycle, it arrives at the end of this week but they can't pick it up til they get that bonus cash.

Oh, I'm told bonus season is crazy on Wall Street. There you have traders making millions, but living paycheck to paycheck and hoping that their bonus is enough to keep them satisfied.

JordanOfGilead

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Re: Overheard at Work
« Reply #11373 on: December 01, 2015, 10:59:57 AM »
Two people in my area have bought new cars in the last month.  One was a new muscle car (I think it's a camero with a lot of options), the other a used truck (for ~$25k).  Each time, there was a parade of people who went out and looked at it.

That reminds me: my coworker got a new car recently. It's a BMW SUV. However, it only seats 4 people because it has this weird console thing in the middle of the back seat. It's bigger, but less useful than his previous car: a Civic. Lol!
But, at least he doesn't brag about it.

Now I have to go look that up. How would the back seats fold down? That's the biggest advantage of the wagon body style (SUV or sporty wagon).
It's a BMW. They didn't buy it for utility, they bought it for luxury. They probably bought the SUV for some illusion of safety. My supervisor and my dad both refuse to drive anything lower than a small SUV because they say it feels dangerous.

infogoon

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Re: Overheard at Work
« Reply #11374 on: December 01, 2015, 11:42:56 AM »
Oh, I'm told bonus season is crazy on Wall Street. There you have traders making millions, but living paycheck to paycheck and hoping that their bonus is enough to keep them satisfied.

As someone in the part of New York State outside of New York City -- that is to say, the area largely subsidized by taxes on Wall Street bonus checks -- I hope they keep working hard.

MgoSam

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Re: Overheard at Work
« Reply #11375 on: December 01, 2015, 11:45:40 AM »
Two people in my area have bought new cars in the last month.  One was a new muscle car (I think it's a camero with a lot of options), the other a used truck (for ~$25k).  Each time, there was a parade of people who went out and looked at it.

That reminds me: my coworker got a new car recently. It's a BMW SUV. However, it only seats 4 people because it has this weird console thing in the middle of the back seat. It's bigger, but less useful than his previous car: a Civic. Lol!
But, at least he doesn't brag about it.

Now I have to go look that up. How would the back seats fold down? That's the biggest advantage of the wagon body style (SUV or sporty wagon).
It's a BMW. They didn't buy it for utility, they bought it for luxury. They probably bought the SUV for some illusion of safety. My supervisor and my dad both refuse to drive anything lower than a small SUV because they say it feels dangerous.

I remember when my dad bought a Mercedes for the luxury of it, he says it was the worst car he's ever owned due to the high cost of maintenance. He still likes Luxury though, and has bought Lexus since, but has no regrets about them. He has the money for the cars anyways, just hates wasting money on unnecessary things.

trailrated

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Re: Overheard at Work
« Reply #11376 on: December 01, 2015, 11:55:25 AM »
A worker here ordered two guns from a local store. In California you must wait 10 days from the time of purchase to pick them up. Store policy for one type is to wait 11 days. So yesterday he went to pick one up...

Me: "Are you going shooting tonight?"
Him: "No"
Me: "So you are driving an extra 20 minutes out of your way tonight to get something that you will not use today?"
Him: "Yeah"
Me: "Then you are going back there tomorrow to pick up the other one?"
Him: "Yeah..."
Me: "If you are not using it tonight why not just pick up both tomorrow and save yourself the time and the trip today?"
Him: "You just don't get it"

hudsoncat

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Re: Overheard at Work
« Reply #11377 on: December 01, 2015, 02:14:23 PM »
This isn't crazy or shocking, but it did amuse me... a co-worker today was telling me about her husband's new truck. At the end of the conversation we had this exchange:

CW: Does your husband have a truck?
Me: He has a work truck.
CW: What is his personal car?
Me: He doesn't have one. He is allowed to drive the work truck home. It's really a great perk!
CW: But what does he drive for fun or on the weekends?
Me: My car.
CW: But what do you drive then?
Me: Uh, we either go somewhere together or I ride my bike.
CW: You ride your bike TO TOWN?! But you live out in the county!

She seemed shocked by this entire conversation. It continued on a bit and she couldn't imagine not having two cars just in case. And biking all the way into town was just crazy. We live about 2 miles outside town limits, we bike in a lot of the time. I also decided it probably wasn't worth it to explain that we were a one car family before the work truck and likely would be again if it was no longer an option. But I did smile and shake my head as I walked back to my office.

MgoSam

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Re: Overheard at Work
« Reply #11378 on: December 01, 2015, 02:15:55 PM »
A worker here ordered two guns from a local store. In California you must wait 10 days from the time of purchase to pick them up. Store policy for one type is to wait 11 days. So yesterday he went to pick one up...

Me: "Are you going shooting tonight?"
Him: "No"
Me: "So you are driving an extra 20 minutes out of your way tonight to get something that you will not use today?"
Him: "Yeah"
Me: "Then you are going back there tomorrow to pick up the other one?"
Him: "Yeah..."
Me: "If you are not using it tonight why not just pick up both tomorrow and save yourself the time and the trip today?"
Him: "You just don't get it"

Clearly you just don't get it!

horsepoor

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Re: Overheard at Work
« Reply #11379 on: December 01, 2015, 09:09:03 PM »
Not really an anti-mustachian thing, but someone who is retiring soon came by my cubicle today.  I asked when the actual date was, since people tend to leave around New Year's.  He said he had 3 months because it was so advantageous to work until he turns 62.  Then later someone else who's retiring came by and had a similar conversation with a co-worker who's almost to minimum retirement age (57).  I just nodded and thought about how I won't give a crap about any extra money I might get for sticking around past my MRA considering the stacks of money I'll have piled up if I decide to work that long.  And today was one of those days where that seemed like a bigger IF than usual.

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Re: Overheard at Work
« Reply #11380 on: December 02, 2015, 10:36:17 AM »
Not really an anti-mustachian thing, but someone who is retiring soon came by my cubicle today.  I asked when the actual date was, since people tend to leave around New Year's.  He said he had 3 months because it was so advantageous to work until he turns 62.  Then later someone else who's retiring came by and had a similar conversation with a co-worker who's almost to minimum retirement age (57).  I just nodded and thought about how I won't give a crap about any extra money I might get for sticking around past my MRA considering the stacks of money I'll have piled up if I decide to work that long.  And today was one of those days where that seemed like a bigger IF than usual.
Ahh, you're one of my fellow feds, aren't you.
I had the worst thing happen to me recently... I've begun having more fun at my damn job than ever before! WTF!? Now I may actually feel like staying, voluntarily, past five years (my previously established minimum) >.<
But I'll never get near MRA. Meanwhile, most here, some with military retirements, are still looking at 20-30 years in the system to reach their goals.

Middlesbrough

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Re: Overheard at Work
« Reply #11381 on: December 02, 2015, 11:01:19 PM »
Got an email reminder from a coworker to lower withholding on my bonus check to "save" more of it from going into my 401k. Yeah, that is a good way to save more...

No Name Guy

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Re: Overheard at Work
« Reply #11382 on: December 03, 2015, 12:10:05 AM »
Met up today with a co worker I hadn't seen in 10 years.  Somehow retirement came up.....she said 68 is her goal...since she wouldn't have social security and the pension until then.  Asked if she was maxing the 401k and nope was the answer....at least she is putting in the 8% to get the 6% (75 cents on the dollar) match.  She is about 10 years younger and could RE if she chose as she is in engineering as well, so makes early-mid career engineer wages.  I shake my head at the fact that she is planning on working 30-ish more years.

boarder42

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Re: Overheard at Work
« Reply #11383 on: December 03, 2015, 05:50:35 AM »
Met up today with a co worker I hadn't seen in 10 years.  Somehow retirement came up.....she said 68 is her goal...since she wouldn't have social security and the pension until then.  Asked if she was maxing the 401k and nope was the answer....at least she is putting in the 8% to get the 6% (75 cents on the dollar) match.  She is about 10 years younger and could RE if she chose as she is in engineering as well, so makes early-mid career engineer wages.  I shake my head at the fact that she is planning on working 30-ish more years.

i mean to each their own ... i could see this being bad if she wasnt at least getting the company match.  but most people dont think about the concept of early retirment.  and many others dont even understand its an option.  i mean her reasons are typical reasons most people would give if they werent apart of this community.  maybe you should show her the light.  doesnt sound like you tried too hard to show her a different way.

Metta

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Re: Overheard at Work
« Reply #11384 on: December 03, 2015, 06:11:04 AM »
A co-worker is interested in retirement (age 61) and so we've been talking since he knows that I will be retiring soon. He's been asking questions about our company's benefits for official retirees and since I've already done the research, I've sent him my links on the various policies, costs for retiree health insurance, and so forth.

Yesterday he told me that he was worried that he might run out of money in retirement, so I shared my two favorite sources for reassurance: cfiresim.com and RetirePlan (an app for the iPad). He looked at my demo of them and said, "But Metta, those are not made for people like us. Those are made for financial planners. That's what my financial planner uses when I'm in his office. We can't use those."

I reassured him, of course, but I think he still went away thinking that ordinary people cannot be expected to use financial modelers for themselves.

zephyr911

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Re: Overheard at Work
« Reply #11385 on: December 03, 2015, 10:14:25 AM »
A co-worker is interested in retirement (age 61) and so we've been talking since he knows that I will be retiring soon. He's been asking questions about our company's benefits for official retirees and since I've already done the research, I've sent him my links on the various policies, costs for retiree health insurance, and so forth.

Yesterday he told me that he was worried that he might run out of money in retirement, so I shared my two favorite sources for reassurance: cfiresim.com and RetirePlan (an app for the iPad). He looked at my demo of them and said, "But Metta, those are not made for people like us. Those are made for financial planners. That's what my financial planner uses when I'm in his office. We can't use those."

I reassured him, of course, but I think he still went away thinking that ordinary people cannot be expected to use financial modelers for themselves.
What is it about addition, subtraction, addition, and multiplication that makes them so intimidating to otherwise intelligent and competent people?
I'll admit, even after decades of doing more complex operations, investing in real estate for years, and using my own hand-built Excel budget tracking/forecast and tax analysis sheets, I find my confidence falters when trying to make strategic decisions based on them - and they are even simpler than cfiresim or the other tools that are popular here.
Instincts can be useful but they can also fail us miserably.

trailrated

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Re: Overheard at Work
« Reply #11386 on: December 03, 2015, 10:31:04 AM »
Coworker just showed up with a new lifted pick-up this morning. He had just paid off his old pick up last week. He was telling everyone how he got it to save money cause the old truck had 95,000 miles on it and was not under warranty anymore.

I tried not to laugh as he told people he was "saving" money on upcoming repairs by trading in his paid off truck and taking out a new loan of $560 a month for 60 months. He makes around 50k/yr.

But hey, at least he contributes 2% to his 401k.

horsepoor

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Re: Overheard at Work
« Reply #11387 on: December 03, 2015, 10:41:18 AM »
Got an email reminder from a coworker to lower withholding on my bonus check to "save" more of it from going into my 401k. Yeah, that is a good way to save more...

Blow her mind by thanking her... because the extra withholding would push you over the annual max prematurely.

JLee

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Re: Overheard at Work
« Reply #11388 on: December 03, 2015, 10:41:51 AM »
Coworker just showed up with a new lifted pick-up this morning. He had just paid off his old pick up last week. He was telling everyone how he got it to save money cause the old truck had 95,000 miles on it and was not under warranty anymore.

I tried not to laugh as he told people he was "saving" money on upcoming repairs by trading in his paid off truck and taking out a new loan of $560 a month for 60 months. He makes around 50k/yr.

But hey, at least he contributes 2% to his 401k.

I had a good friend trade in his cared-for Lexus IS300 (with the bulletproof inline 6) because it was around 100k and he wanted to sell it before it became unreliable (they're notoriously solid cars). He bought something new which ended up getting bought back by the dealer after a year because it had a chronic problem they were unable to fix...lol.

I'm a red panda

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Re: Overheard at Work
« Reply #11389 on: December 03, 2015, 11:07:37 AM »
Got an email reminder from a coworker to lower withholding on my bonus check to "save" more of it from going into my 401k. Yeah, that is a good way to save more...

Blow her mind by thanking her... because the extra withholding would push you over the annual max prematurely.

I think this humblebrag would require a lot of explaining. I don't think the average person would understand what you meant here. Many people probably don't know there is a max.

MgoSam

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Re: Overheard at Work
« Reply #11390 on: December 03, 2015, 11:19:29 AM »
But hey, at least he contributes 2% to his 401k.

That outta do it!

Davids

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Re: Overheard at Work
« Reply #11391 on: December 03, 2015, 11:21:48 AM »
Got an email reminder from a coworker to lower withholding on my bonus check to "save" more of it from going into my 401k. Yeah, that is a good way to save more...
I wish my 401k could allow to indicate a flat $750 per pay period (we get paid 15th and last day of month) instead of a percentage. Instead I just adjust the percentage every April when we get our payraise and bonus to make sure I hit the exact max come 12/31.And before you ask it makes no sense to frontload as we get our match each pay period.

boarder42

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Re: Overheard at Work
« Reply #11392 on: December 03, 2015, 11:25:27 AM »
Got an email reminder from a coworker to lower withholding on my bonus check to "save" more of it from going into my 401k. Yeah, that is a good way to save more...
I wish my 401k could allow to indicate a flat $750 per pay period (we get paid 15th and last day of month) instead of a percentage. Instead I just adjust the percentage every April when we get our payraise and bonus to make sure I hit the exact max come 12/31.And before you ask it makes no sense to frontload as we get our match each pay period.

its incredibly difficult for me to do even that.  i work OT throughout the year.  and next week i will be told what my bonus is for the year, and it changes and increases yearly.  so i have to try to time the last paycheck of the year to at least have me put in enough to get company match or i lose out on that match til the following april when they do taxes and put it in.  usually this isnt hard.  but it could be difficult if i got a huge bonus unexpectedly.. but i guess thats not a tough problem to have.

Making Cookies

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Re: Overheard at Work
« Reply #11393 on: December 03, 2015, 08:06:54 PM »
Coworker just showed up with a new lifted pick-up this morning. He had just paid off his old pick up last week. He was telling everyone how he got it to save money cause the old truck had 95,000 miles on it and was not under warranty anymore.

I tried not to laugh as he told people he was "saving" money on upcoming repairs by trading in his paid off truck and taking out a new loan of $560 a month for 60 months. He makes around 50k/yr.

But hey, at least he contributes 2% to his 401k.

I wear my pokerface when I hear people brag like this. We're driving 17-18 year old cars with hundreds of thousands of miles (like nearing 300K on one) and the cost of maintenance and repairs is tiny. Like less than a car payment per year.

It saves us a car payment per month that we keep it.

Either of our cars in its entirety would cost less than one set of tires for his truck. ;)
« Last Edit: December 03, 2015, 08:18:26 PM by Joe Average »

Seppia

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Overheard at Work
« Reply #11394 on: December 03, 2015, 09:15:30 PM »
I just learnt today that a co worker of mine making $40k is contributing 1% to the 401k, when the company match is 3%.
She is leaving 2% free money on the table.

I tried to speak to her, the most frustrating thing is that she wasn't even able to give me a coherent reason why she's doing that.

"Oh you know, I don't really trust this stuff and I've always put 1%, so I'll just leave it like that."
"But you're leaving 2% free money on the table"
"Well, that's not that much money".

Then these people bitch because they want a raise.

Squirrel away

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Re: Overheard at Work
« Reply #11395 on: December 04, 2015, 03:33:47 AM »
I just learnt today that a co worker of mine making $40k is contributing 1% to the 401k, when the company match is 3%.
She is leaving 2% free money on the table.

I tried to speak to her, the most frustrating thing is that she wasn't even able to give me a coherent reason why she's doing that.

"Oh you know, I don't really trust this stuff and I've always put 1%, so I'll just leave it like that."
"But you're leaving 2% free money on the table"
"Well, that's not that much money".

Then these people bitch because they want a raise.

Could you try to explain it to her? It sounds obvious to us but I think some people really don't get it. She is throwing away free money.

Eric222

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Re: Overheard at Work
« Reply #11396 on: December 04, 2015, 05:48:11 AM »
I just learnt today that a co worker of mine making $40k is contributing 1% to the 401k, when the company match is 3%.
She is leaving 2% free money on the table.

I tried to speak to her, the most frustrating thing is that she wasn't even able to give me a coherent reason why she's doing that.

"Oh you know, I don't really trust this stuff and I've always put 1%, so I'll just leave it like that."
"But you're leaving 2% free money on the table"
"Well, that's not that much money".

Then these people bitch because they want a raise.
Every time I see a story about someone not taking a 401k match I get annoyed.  Mostly because I would LOVE to have a match!!  Can have 401k matches that other people don't use? ;) 

boarder42

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Re: Overheard at Work
« Reply #11397 on: December 04, 2015, 05:51:00 AM »
I just learnt today that a co worker of mine making $40k is contributing 1% to the 401k, when the company match is 3%.
She is leaving 2% free money on the table.

I tried to speak to her, the most frustrating thing is that she wasn't even able to give me a coherent reason why she's doing that.

"Oh you know, I don't really trust this stuff and I've always put 1%, so I'll just leave it like that."
"But you're leaving 2% free money on the table"
"Well, that's not that much money".

Then these people bitch because they want a raise.
Every time I see a story about someone not taking a 401k match I get annoyed.  Mostly because I would LOVE to have a match!!  Can have 401k matches that other people don't use? ;)

technically by not maxing out your tax advantaged accounts(if you're still paying any state or federal taxes) you're throwing money away to the federal govt.

Seppia

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Overheard at Work
« Reply #11398 on: December 04, 2015, 06:07:19 AM »
I just learnt today that a co worker of mine making $40k is contributing 1% to the 401k, when the company match is 3%.
She is leaving 2% free money on the table.

I tried to speak to her, the most frustrating thing is that she wasn't even able to give me a coherent reason why she's doing that.

"Oh you know, I don't really trust this stuff and I've always put 1%, so I'll just leave it like that."
"But you're leaving 2% free money on the table"
"Well, that's not that much money".

Then these people bitch because they want a raise.

Could you try to explain it to her? It sounds obvious to us but I think some people really don't get it. She is throwing away free money.

I even tried my secret weapon, the example I use for the most math-challenged individuals.

"Hey do you know that our 401k is a magical tool that basically TRIPLES your money?"
That usually gets people's attention.
Then I explain the ballpark math
"See, $100 of your gross salary become somewhere around $65-70 in your pocket (we are in NYC so with high state + city tax).
If instead you put them in the 401k not only they stay $100, but the company match makes them $200.
SEE? IT'S A MAGIC TOOL THAT TRIPLES YOUR MONEY *me faking a somewhat astonished face like it's every time the first time I really realize that*"

Nope.
Didn't work.

johnny847

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Re: Overheard at Work
« Reply #11399 on: December 04, 2015, 06:30:25 AM »
I just learnt today that a co worker of mine making $40k is contributing 1% to the 401k, when the company match is 3%.
She is leaving 2% free money on the table.

I tried to speak to her, the most frustrating thing is that she wasn't even able to give me a coherent reason why she's doing that.

"Oh you know, I don't really trust this stuff and I've always put 1%, so I'll just leave it like that."
"But you're leaving 2% free money on the table"
"Well, that's not that much money".

Then these people bitch because they want a raise.

Could you try to explain it to her? It sounds obvious to us but I think some people really don't get it. She is throwing away free money.

I even tried my secret weapon, the example I use for the most math-challenged individuals.

"Hey do you know that our 401k is a magical tool that basically TRIPLES your money?"
That usually gets people's attention.
Then I explain the ballpark math
"See, $100 of your gross salary become somewhere around $65-70 in your pocket (we are in NYC so with high state + city tax).
If instead you put them in the 401k not only they stay $100, but the company match makes them $200.
SEE? IT'S A MAGIC TOOL THAT TRIPLES YOUR MONEY *me faking a somewhat astonished face like it's every time the first time I really realize that*"

Nope.
Didn't work.

The last restort (that isn't always applicable - this requires immediate vesting of employer contributions) is to tell them even if they deposited in the 401k, and then withdrew immediately and paid the penalties, they still come out ahead!

With your numbers, they put in $100 and the company match is $100. They withdaw all $200 immediately. They pay a 10% penalty on the entire withdrawal of $200 -> $20 penalty. They pay $60-$70 in tax, so they're left with $110-$120.

That's still better than not contributing, where $100 gross becomes $65-$70.


If they're not convinced with this, then I don't think there's any hope left.

Sadly, I can still see this not working for people who live paycheck to paycheck. It'll take several days to process the 401k withdrawal and these few days without their small portion of their paycheck may break their cash flow.