Author Topic: Overheard at Work  (Read 8756658 times)

mgreczyn

  • Guest
Re: Overheard at Work
« Reply #2000 on: March 11, 2014, 02:44:01 PM »
I joined the forum just so I could post these. :)

From my last job:

CW #1 & CW #2 are married. Someone asked CW #1 if she was going to join CW #2 on his upcoming week long business trip to Italy (her only cost would be airfare and meals). She said "No, I can't afford it and I don't have enough time off."
 
The time off excuse was bogus. She could have easily gotten it off.
 
The two of them combined make $200K+ in our LCOLA. CW #1's career area? Finance.
 
The cobbler's children have no shoes.
 

She could have been hedging.  Just like mustachians here talk about a 38k$ payment on a car (a.k.a., just buying it with cash and none of that loan business) and then covering it by making up fake numbers of payments.

So, maybe she just didn't want to go?  They could have been plotting their retirement in a year!

It's possible, but I doubt it. I was in HR so I knew things like:
- CW#1 had done a $50K 401(k) hardship withdrawl in recent years
- CW#2 had done one for an unknown amount before that
- CW #2 contributed nothing to his 401(k) though he was eligible for an immediately vested 75% match on the first 10% that he contributed

They have 2 kids in an expensive private school, she drives an enormous SUV, he just bought a huge new truck, and they have a boat and a camper. Nothing wrong with any of these, but taken together I'd say they are just cash poor.

The trip was to Parma. Several coworkers went, and they had a great time.

Lol. There good the benefit of the doubt.. But  I agree with an above poster- I've brought my SO to a conference. He couldn't come to the actual event so he was bored out of his skull. He no longer is interested where I go for conferences, lol.
So get creative.  I'm being sent to Germany for a week.  Spousal unit coming toward the end of the work week, then we're spending another week exploring Belgium + Netherlands.  50% off round trip airfare for two to Europe is an opportunity to be grabbed while the grabbing's good.  As long as you can "afford" it.

CommonCents

  • Handlebar Stache
  • *****
  • Posts: 2386
Re: Overheard at Work
« Reply #2001 on: March 11, 2014, 02:53:01 PM »
I joined the forum just so I could post these. :)

From my last job:

CW #1 & CW #2 are married. Someone asked CW #1 if she was going to join CW #2 on his upcoming week long business trip to Italy (her only cost would be airfare and meals). She said "No, I can't afford it and I don't have enough time off."
 
The time off excuse was bogus. She could have easily gotten it off.
 
The two of them combined make $200K+ in our LCOLA. CW #1's career area? Finance.
 
The cobbler's children have no shoes.
 

She could have been hedging.  Just like mustachians here talk about a 38k$ payment on a car (a.k.a., just buying it with cash and none of that loan business) and then covering it by making up fake numbers of payments.

So, maybe she just didn't want to go?  They could have been plotting their retirement in a year!

It's possible, but I doubt it. I was in HR so I knew things like:
- CW#1 had done a $50K 401(k) hardship withdrawl in recent years
- CW#2 had done one for an unknown amount before that
- CW #2 contributed nothing to his 401(k) though he was eligible for an immediately vested 75% match on the first 10% that he contributed

They have 2 kids in an expensive private school, she drives an enormous SUV, he just bought a huge new truck, and they have a boat and a camper. Nothing wrong with any of these, but taken together I'd say they are just cash poor.

The trip was to Parma. Several coworkers went, and they had a great time.

Lol. There good the benefit of the doubt.. But  I agree with an above poster- I've brought my SO to a conference. He couldn't come to the actual event so he was bored out of his skull. He no longer is interested where I go for conferences, lol.
So get creative.  I'm being sent to Germany for a week.  Spousal unit coming toward the end of the work week, then we're spending another week exploring Belgium + Netherlands.  50% off round trip airfare for two to Europe is an opportunity to be grabbed while the grabbing's good.  As long as you can "afford" it.

And this is why retailers just love 50% off the second item sales.

If you don't need it/want it/prefer to spend it elsewhere, don't buy it, no matter what the form the BOGO 50% off takes.

mgreczyn

  • Guest
Re: Overheard at Work
« Reply #2002 on: March 11, 2014, 03:24:47 PM »
I joined the forum just so I could post these. :)

From my last job:

CW #1 & CW #2 are married. Someone asked CW #1 if she was going to join CW #2 on his upcoming week long business trip to Italy (her only cost would be airfare and meals). She said "No, I can't afford it and I don't have enough time off."
 
The time off excuse was bogus. She could have easily gotten it off.
 
The two of them combined make $200K+ in our LCOLA. CW #1's career area? Finance.
 
The cobbler's children have no shoes.
 

She could have been hedging.  Just like mustachians here talk about a 38k$ payment on a car (a.k.a., just buying it with cash and none of that loan business) and then covering it by making up fake numbers of payments.

So, maybe she just didn't want to go?  They could have been plotting their retirement in a year!

It's possible, but I doubt it. I was in HR so I knew things like:
- CW#1 had done a $50K 401(k) hardship withdrawl in recent years
- CW#2 had done one for an unknown amount before that
- CW #2 contributed nothing to his 401(k) though he was eligible for an immediately vested 75% match on the first 10% that he contributed

They have 2 kids in an expensive private school, she drives an enormous SUV, he just bought a huge new truck, and they have a boat and a camper. Nothing wrong with any of these, but taken together I'd say they are just cash poor.

The trip was to Parma. Several coworkers went, and they had a great time.

Lol. There good the benefit of the doubt.. But  I agree with an above poster- I've brought my SO to a conference. He couldn't come to the actual event so he was bored out of his skull. He no longer is interested where I go for conferences, lol.
So get creative.  I'm being sent to Germany for a week.  Spousal unit coming toward the end of the work week, then we're spending another week exploring Belgium + Netherlands.  50% off round trip airfare for two to Europe is an opportunity to be grabbed while the grabbing's good.  As long as you can "afford" it.

And this is why retailers just love 50% off the second item sales.

If you don't need it/want it/prefer to spend it elsewhere, don't buy it, no matter what the form the BOGO 50% off takes.
No, you don't get it, you see I HAVE to go... oh nevermind.  Going to Europe, have plenty of money, did not get snowed by a stupid sign at Target.

AlanStache

  • Handlebar Stache
  • *****
  • Posts: 1777
  • Age: 39
  • Location: South East Virginia
Re: Overheard at Work
« Reply #2003 on: March 11, 2014, 03:50:53 PM »
@mgreczyn:  cool, am sure you will have a blast, the Dutch tulips will be in bloom soon.  If you can the area around Luxonburg is incredible.  But your comment "So get creative" and tone may have rubbed some the wrong way-it did me a bit.  For many your sort of easy vacation post work travel is not a matter of just turning up the positivity cannon to 11 and having a great time.  At the end of my typical trips I am fully burnt out and the only thing I want to see is a flight attendant preparing me a Gin & Tonic.  I get that many others have different work travel experiences and fun travel can be mixed with work travel but for many others it is not a practical option.

And if you are going to be driving talk to the rental car company as when I was there recently there were restrictions on what countries you could go into based on if you have snow tires or not.  Not sure on the details here.


Travis

  • Handlebar Stache
  • *****
  • Posts: 2240
  • Location: Arizona
Re: Overheard at Work
« Reply #2004 on: March 11, 2014, 07:31:27 PM »
Quote
Columbus does not suck. The place you are sucks.

So there.

Hay come on, lets keep this civil!  I considered going with Dayton but they have the Air Force-airplane museum and that place is really cool.  Never been to Columbus I promise I will give it a chance next time I am in Ohio.  :-)

It's an awesome museum, second only to the Smithsonian Air and Space Museum.  It might have been my high school height perspective when I first saw it, but there is a B-52 in the museum and I swear half the other planes fit under its wings.
« Last Edit: March 11, 2014, 09:09:25 PM by Travis »

Travis

  • Handlebar Stache
  • *****
  • Posts: 2240
  • Location: Arizona
Re: Overheard at Work
« Reply #2005 on: March 11, 2014, 07:32:03 PM »
A co-worker apparently hit a deer over the weekend. I heard her say to someone, "It's not a big deal, my insurance deductible is $250."

She is probably in her early 40s, which means it's possible she has been paying big bucks for comp/collision for decades. All to cover a one-time cost of $1K.

The biggest moustachian fail here would be not butchering the carcass of the deer to fill the freezer for a few months.

Only if you hit it right. If you hit the deer broadside, the meat is so full of blood that it isn't even worth grinding. That being said, if you hit a deer nice and cleanly and snap its neck, you should totally bring it home with you once the police put a kill tag on it.

Everyone knows that...

In Texas it is illegal to take roadkill...so we just toss it in our truck and take it home without notifying anyone. I feel bad about this but I'd feel worse about wasting the deer we hit last year. The reasoning? Someone told me it is because running over a deer is an illegal method of taking game :D

It's illegal? That's stupidly wasteful! In Alaska, there are charity groups of women who will show up, butcher the roadkill moose (meese? mise?) and distribute it to the needy. Granted, it's a lot more worthwhile with a moose. They're huge.

The plural for moose is moose.

HappierAtHome

  • Walrus Stache
  • *******
  • Posts: 9062
  • Location: Australia
Re: Overheard at Work
« Reply #2006 on: March 11, 2014, 08:00:55 PM »
CW: "I can't believe my friend was denied finance for the house he wanted. He earns so much money!"
Me: "How much of a deposit did he have?"
CW: "Zero... But he earns so much money!"

Must be house buying season in idiot land :-)

tariskat

  • Bristles
  • ***
  • Posts: 307
Re: Overheard at Work
« Reply #2007 on: March 11, 2014, 08:51:46 PM »
I joined the forum just so I could post these. :)

From my last job:

CW #1 & CW #2 are married. Someone asked CW #1 if she was going to join CW #2 on his upcoming week long business trip to Italy (her only cost would be airfare and meals). She said "No, I can't afford it and I don't have enough time off."
 
The time off excuse was bogus. She could have easily gotten it off.
 
The two of them combined make $200K+ in our LCOLA. CW #1's career area? Finance.
 
The cobbler's children have no shoes.
 

She could have been hedging.  Just like mustachians here talk about a 38k$ payment on a car (a.k.a., just buying it with cash and none of that loan business) and then covering it by making up fake numbers of payments.

So, maybe she just didn't want to go?  They could have been plotting their retirement in a year!

It's possible, but I doubt it. I was in HR so I knew things like:
- CW#1 had done a $50K 401(k) hardship withdrawl in recent years
- CW#2 had done one for an unknown amount before that
- CW #2 contributed nothing to his 401(k) though he was eligible for an immediately vested 75% match on the first 10% that he contributed

They have 2 kids in an expensive private school, she drives an enormous SUV, he just bought a huge new truck, and they have a boat and a camper. Nothing wrong with any of these, but taken together I'd say they are just cash poor.

The trip was to Parma. Several coworkers went, and they had a great time.

Lol. There good the benefit of the doubt.. But  I agree with an above poster- I've brought my SO to a conference. He couldn't come to the actual event so he was bored out of his skull. He no longer is interested where I go for conferences, lol.
So get creative.  I'm being sent to Germany for a week.  Spousal unit coming toward the end of the work week, then we're spending another week exploring Belgium + Netherlands.  50% off round trip airfare for two to Europe is an opportunity to be grabbed while the grabbing's good.  As long as you can "afford" it.

Yep, we're doing that in July but not Europe. But the conference he went to was in the middle of the school year, which means I didn't get more time off, I have classes to take and teach.

dragoncar

  • Walrus Stache
  • *******
  • Posts: 8090
  • Registered member
Re: Overheard at Work
« Reply #2008 on: March 11, 2014, 08:53:46 PM »
CW: "I can't believe my friend was denied finance for the house he wanted. He earns so much money!"
Me: "How much of a deposit did he have?"
CW: "Zero... But he earns so much money!"

Must be house buying season in idiot land :-)

To be fair, I'd put down $0 if I could!  Either you believe the finance rate is less than your investment rate or you pay all cash.  It's those 50% down people that baffle me

mgreczyn

  • Guest
Re: Overheard at Work
« Reply #2009 on: March 11, 2014, 09:53:29 PM »
@mgreczyn:  cool, am sure you will have a blast, the Dutch tulips will be in bloom soon.  If you can the area around Luxonburg is incredible.  But your comment "So get creative" and tone may have rubbed some the wrong way-it did me a bit.  For many your sort of easy vacation post work travel is not a matter of just turning up the positivity cannon to 11 and having a great time.  At the end of my typical trips I am fully burnt out and the only thing I want to see is a flight attendant preparing me a Gin & Tonic.  I get that many others have different work travel experiences and fun travel can be mixed with work travel but for many others it is not a practical option.

And if you are going to be driving talk to the rental car company as when I was there recently there were restrictions on what countries you could go into based on if you have snow tires or not.  Not sure on the details here.
He he.  Point taken.  However, and I'm not trying to start a crappy work trip pissing contest here, most of my travel has been to places that a gin and tonic won't erase and this is our first overseas trip in 6 years, so maybe I just didn't hear the violin music playing in the background.  I promise to try to be more sensitive in the future.

Anatidae V

  • Walrus Stache
  • *******
  • Posts: 8486
  • Age: 29
  • Location: Fourecks
  • Nullus Anxietas
Re: Overheard at Work
« Reply #2010 on: March 12, 2014, 02:46:07 AM »
CW: "I can't believe my friend was denied finance for the house he wanted. He earns so much money!"
Me: "How much of a deposit did he have?"
CW: "Zero... But he earns so much money!"

Must be house buying season in idiot land :-)

To be fair, I'd put down $0 if I could!  Either you believe the finance rate is less than your investment rate or you pay all cash.  It's those 50% down people that baffle me
Or you have to pay rent while not owning. If interest paid on the mortgage is close to or less than what you'd pay in rent, That would make sense to put down 50% (or another appropriate %). Correct me if I'm wrong.

Beach Life

  • 5 O'Clock Shadow
  • *
  • Posts: 4
Re: Overheard at Work
« Reply #2011 on: March 12, 2014, 06:59:29 AM »
What does "The time off excuse was bogus. She could have easily gotten it off." mean? Usually people have a finite amount of vacation time per year(and in finance are pressured not to use it). "I don't have enough time off" could very well mean "I have other things I want to spend time off on which are not hanging out in Italy alone while my husband is at a conference".

Theoretically there was a finite amount of vacation time per year. However, CW#1 was a member of a group of managers who were legendary for the creative accounting of their time off. They would use far more days than they had, but magically at the end of the year they had PTO left to sell back and/or roll to the next year. In reality, it was almost unlimited time off, so one week off for her would have been no problem.
« Last Edit: March 12, 2014, 07:28:28 AM by Beach Life »

huadpe

  • Stubble
  • **
  • Posts: 219
Re: Overheard at Work
« Reply #2012 on: March 12, 2014, 07:25:19 AM »
CW: "I can't believe my friend was denied finance for the house he wanted. He earns so much money!"
Me: "How much of a deposit did he have?"
CW: "Zero... But he earns so much money!"

Must be house buying season in idiot land :-)

To be fair, I'd put down $0 if I could!  Either you believe the finance rate is less than your investment rate or you pay all cash.  It's those 50% down people that baffle me

Problem with 0% down is the lock-in.  If you put 0% down on a $250,000 house, and the value of the house drops to $200,000, you can't move until you pay off $50,000 in equity.  Now, keep in mind that a major drop in home prices is likely to correlate to a major drop in stock prices, so you'd be forced to sell your investments at a really bad time if you wanted to move. 

Also, if you're an efficient markets hypothesis believer, then you'd have to believe that the risk adjusted rate of return for investing in equities does not exceed the risk adjusted return of your mortgage loan - or the bank wouldn't have made the loan. 

sherr

  • Pencil Stache
  • ****
  • Posts: 527
  • Age: 33
  • Location: North Carolina
Re: Overheard at Work
« Reply #2013 on: March 12, 2014, 09:09:49 AM »
Correct me if I'm wrong.

You're not wrong.

Also, if you're an efficient markets hypothesis believer, then you'd have to believe that the risk adjusted rate of return for investing in equities does not exceed the risk adjusted return of your mortgage loan - or the bank wouldn't have made the loan. 

The efficient market hypothesis does not apply to mortgages (in the US) because mortgages are resold to Fannie Mae or Freddie Mac, government sponsored enterprises who's expressly stated goal is to increase the amount of money available to fund mortgages*. Thus it is not a free market; the government is explicitly manipulating the market to make mortgage rates cheaper than they should be on a risk-adjusted basis because the government wants to encourage home ownership and stability**.

* This sentence is a simplification, but you get the idea.
** My understanding at least.
« Last Edit: March 12, 2014, 09:14:27 AM by sherr »

smalllife

  • Pencil Stache
  • ****
  • Posts: 972
Re: Overheard at Work
« Reply #2014 on: March 12, 2014, 09:11:33 AM »
Apparently, there is a $35 tube of mascara with a battery.  It vibrates and separates your lashes for fuller coverage.   Who knew?!

Rudem3

  • 5 O'Clock Shadow
  • *
  • Posts: 24
Re: Overheard at Work
« Reply #2015 on: March 12, 2014, 09:21:00 AM »
Girl at work got into an accident and totaled her car. Other co workers are trying to get her to buy a new car. Also others glorifying leasing a car then immediately complaining about always having a car payment. These are the same people always complaining they have no money. Gotta keep up with the Joneses. Derp.

PantsOnFire

  • Stubble
  • **
  • Posts: 141
  • Location: PA
Re: Overheard at Work
« Reply #2016 on: March 12, 2014, 09:28:52 AM »
Apparently, there is a $35 tube of mascara with a battery.  It vibrates and separates your lashes for fuller coverage.   Who knew?!
Sounds like a cleverly disguised sex toy.  "Oh that?  It's just my mascara!" 

Mascara and blush in one package! 

rocksinmyhead

  • Handlebar Stache
  • *****
  • Posts: 1491
  • Location: Oklahoma
Re: Overheard at Work
« Reply #2017 on: March 12, 2014, 09:35:16 AM »
Apparently, there is a $35 tube of mascara with a battery.  It vibrates and separates your lashes for fuller coverage.   Who knew?!
Sounds like a cleverly disguised sex toy.  "Oh that?  It's just my mascara!" 

Mascara and blush in one package!

hahaha this was my first thought as well, but you stated it much more hilariously

smalllife

  • Pencil Stache
  • ****
  • Posts: 972
Re: Overheard at Work
« Reply #2018 on: March 12, 2014, 09:47:24 AM »
Apparently, there is a $35 tube of mascara with a battery.  It vibrates and separates your lashes for fuller coverage.   Who knew?!
Sounds like a cleverly disguised sex toy.  "Oh that?  It's just my mascara!" 

Mascara and blush in one package!

Actually, that was my first thought as well!

Hunny156

  • Bristles
  • ***
  • Posts: 415
  • Location: Central TX
Re: Overheard at Work
« Reply #2019 on: March 12, 2014, 11:26:11 AM »
Apparently, there is a $35 tube of mascara with a battery.  It vibrates and separates your lashes for fuller coverage.   Who knew?!
Sounds like a cleverly disguised sex toy.  "Oh that?  It's just my mascara!" 

Mascara and blush in one package!
Not gonna lie, I thought the exact same thing!!!  Don't they make fake lipsticks that are sex toys?
Actually, that was my first thought as well!

Ayanka

  • Stubble
  • **
  • Posts: 137
  • Location: Belgium (Europe)
Re: Overheard at Work
« Reply #2020 on: March 12, 2014, 11:29:13 AM »
@Mgreczyn: good luck on your trip let me know if you want any tips :)

@Alanstache: Belgium nor the Netherlands require snow tires as far as I am aware of, Germany does though. Seen the quite good public transport (compared to the USA), it might be a good idea too :).

notquitefrugal

  • Stubble
  • **
  • Posts: 193
Re: Overheard at Work
« Reply #2021 on: March 12, 2014, 12:32:01 PM »

To be fair, I'd put down $0 if I could!  Either you believe the finance rate is less than your investment rate or you pay all cash.  It's those 50% down people that baffle me

Absent some special program, if you put down less than 20% in the US, you will probably have to pay PMI. The cost of PMI is based upon the down payment, so if you put down 15%, PMI will cost less than if you had put down 5%. Effectively, it raises the cost of the loan until the principal balance is paid down.

nicknageli

  • Guest
Re: Overheard at Work
« Reply #2022 on: March 12, 2014, 12:37:04 PM »
Absent some special program, if you put down less than 20% in the US, you will probably have to pay PMI. The cost of PMI is based upon the down payment, so if you put down 15%, PMI will cost less than if you had put down 5%. Effectively, it raises the cost of the loan until the principal balance is paid down.

I thought I'd read that today's PMI requires you to pay it for the life of the loan even if the principle is paid down beyond 20% equity.  Did I misread something?

PantsOnFire

  • Stubble
  • **
  • Posts: 141
  • Location: PA
Re: Overheard at Work
« Reply #2023 on: March 12, 2014, 12:53:06 PM »
PMI rules vary depending on the loan.  Ours requires 24 payments, which works out perfectly for our unique situation... that's about the time we'd be hitting 20% equity anyway. 

Supertaster

  • 5 O'Clock Shadow
  • *
  • Posts: 42
  • Age: 33
  • Location: Lexington, KY
Re: Overheard at Work
« Reply #2024 on: March 12, 2014, 05:10:58 PM »
Apparently, there is a $35 tube of mascara with a battery.  It vibrates and separates your lashes for fuller coverage.   Who knew?!

This reminds me of the razors with batteries in them that are supposed to vibrate the hairs in a way that cuts them closer.

The fact that Gillette is owned by Proctor & Gamble (which manufactures Duracell batteries) and Schick is owned by Energizer Holdings makes it pretty obvious why those razors were introduced. I wouldn't be shocked if the same logic was at play here.

randymarsh

  • Handlebar Stache
  • *****
  • Posts: 1374
  • Location: Denver
Re: Overheard at Work
« Reply #2025 on: March 12, 2014, 06:02:31 PM »
The fact that Gillette is owned by Proctor & Gamble (which manufactures Duracell batteries) and Schick is owned by Energizer Holdings makes it pretty obvious why those razors were introduced. I wouldn't be shocked if the same logic was at play here.

Mind blown. I knew that Proctor & Gamble owned one of the battery brands and Gillette but never made the connection. Talk about corporate synergy!

Anatidae V

  • Walrus Stache
  • *******
  • Posts: 8486
  • Age: 29
  • Location: Fourecks
  • Nullus Anxietas
Re: Overheard at Work
« Reply #2026 on: March 12, 2014, 09:15:00 PM »
PMI rules vary depending on the loan.  Ours requires 24 payments, which works out perfectly for our unique situation... that's about the time we'd be hitting 20% equity anyway.
From what I've had whinged to me, in Australia PMI is a lump sum added to the value of your loan, rather than an extra you pay until you have a certain amount of equity.

Melody

  • Handlebar Stache
  • *****
  • Posts: 1089
  • Age: 29
  • Location: Australia
Re: Overheard at Work
« Reply #2027 on: March 13, 2014, 03:38:51 AM »
From what I've had whinged to me, in Australia PMI is a lump sum added to the value of your loan, rather than an extra you pay until you have a certain amount of equity.

True. It seems the American system is more favorable to MMMer's who may notice it's cheaper to rent than buy, go in with a low deposit but hit 20% as soon as humanely possible. US system is probably more expensive (than the Australian System) for those people where 30 yr mortgage = 30 years.

AlanStache

  • Handlebar Stache
  • *****
  • Posts: 1777
  • Age: 39
  • Location: South East Virginia
Re: Overheard at Work
« Reply #2028 on: March 13, 2014, 06:13:14 AM »
Quote
True. It seems the American system is more favorable to MMMer's who may notice it's cheaper to rent than buy, go in with a low deposit but hit 20% as soon as humanely possible. US system is probably more expensive (than the Australian System) for those people where 30 yr mortgage = 30 years.

You mean more expensive because a generic non-mmm reader would keep paying the pmi after 20% equity?  Generally even non-mmm readers would be able to get ride of the pmi well before the end of the 30 loan.  What is more expensive is just a math problem using numbers I dont have.

grantmeaname

  • Magnum Stache
  • ******
  • Posts: 4631
  • Age: 26
  • Location: NYC
  • Cast me away from yesterday's things
Re: Overheard at Work
« Reply #2029 on: March 13, 2014, 06:44:16 AM »
Often you have to keep paying PMI after you reach 20% equity if you pay the loan down faster than scheduled. People don't do it just for fun.

Posthumane

  • Bristles
  • ***
  • Posts: 306
  • Location: Alberta
    • Getting Around Canada
Re: Overheard at Work
« Reply #2030 on: March 13, 2014, 09:36:56 AM »
The PMI equivalent in Canada (CMHC insurance) is also usually a lump sum that gets tacked on to the mortgage amount up front if you put down less than 20%. I think mine ended up being something on the order of 2.5% of the purchase price.

Back to overheard at work though, co-workers were talking about a recent lottery with a $200 million jackpot and how in reality after taxes it ends up being much less.
Me: I would be satisfied with just $1 mil.
CW1: 1 million? I don't think that would be enough. I would want an amount that I could actually quit my job.
CW2: Well, that's like $50k/year if you withdraw 5%.
CW1: Yeah, that's definitely not enough. I mean I suppose I could subsist on that if I had to, but if I wasn't working I would have all this extra time and I would need money to go on tropical vacations, etc.

CW1 is making north of 100k, his wife works and makes probably 2/3 of what he does, and we live in a low/moderate COL area. He carpools in an older diesel car and they have no kids so I don't think their expenses are too high.

Ashyukun

  • Bristles
  • ***
  • Posts: 270
Re: Overheard at Work
« Reply #2031 on: March 13, 2014, 11:37:48 AM »
Quote
True. It seems the American system is more favorable to MMMer's who may notice it's cheaper to rent than buy, go in with a low deposit but hit 20% as soon as humanely possible. US system is probably more expensive (than the Australian System) for those people where 30 yr mortgage = 30 years.

You mean more expensive because a generic non-mmm reader would keep paying the pmi after 20% equity?  Generally even non-mmm readers would be able to get ride of the pmi well before the end of the 30 loan.  What is more expensive is just a math problem using numbers I dont have.
Actually I believe that the company that owns the mortgage has to drop the PMI automatically within a reasonable amount of time after you surpass 20% equity.

I went through this with the house that I just sold- I was coming up on 20% of the original purchase price of the house AND the amount it had appraised for when I refinanced it a few years back (when it CONVENIENTLY appraised for just a bit too low for me to already have 20% equity...) and looked into it and heard back from the bank that if I wanted the PMI removed before whenever their mystery numbers said it was clearly at over 20% equity I would have to pay for an appraisal of the house myself to prove it. Since the appraisal would have cost more than I would have saved by not having the PMI for the few months before they dropped it automatically I didn't bother with it.

MooseOutFront

  • Pencil Stache
  • ****
  • Posts: 510
  • Age: 38
  • Location: Texas
Re: Overheard at Work
« Reply #2032 on: March 13, 2014, 08:25:31 PM »
I've got a good overheard at work ( maybe good and bad...):
A coworker was talking about buying a $40K truck and $60K boat last year --- they paid CASH.
She's an admin asst and he is a retired firefighter, and they saved up the cash!

Good for them!
lol.  This is like a Dave Ramsey student gone renegade. 

FIPurpose

  • Pencil Stache
  • ****
  • Posts: 796
  • Location: ME
    • FI With Purpose
Re: Overheard at Work
« Reply #2033 on: March 13, 2014, 09:32:12 PM »
Often you have to keep paying PMI after you reach 20% equity if you pay the loan down faster than scheduled. People don't do it just for fun.

I'm pretty PMI by law has to be removable. (Homeowners Protection Act 1999). It's FHA loans that don't have to follow this rule.

grantmeaname

  • Magnum Stache
  • ******
  • Posts: 4631
  • Age: 26
  • Location: NYC
  • Cast me away from yesterday's things
Re: Overheard at Work
« Reply #2034 on: March 13, 2014, 10:18:29 PM »
Often you have to keep paying PMI after you reach 20% equity if you pay the loan down faster than scheduled. People don't do it just for fun.

I'm pretty PMI by law has to be removable. (Homeowners Protection Act 1999). It's FHA loans that don't have to follow this rule.
Yeah, I guess technically that's MIP. Same concept, though.

zinnie

  • Pencil Stache
  • ****
  • Posts: 602
  • Location: California
Re: Overheard at Work
« Reply #2035 on: March 13, 2014, 10:58:04 PM »
One of the assistants where I work just quit her job to go back to school for a PhD. Which sounds reasonable, except that classes don't start until the fall. Her plan for the mean time? "My credit card limit is $12,000--I should be able to make it until I start getting student loans." She is taking a six month break in between work and school, and putting it all on the credit card.

I get taking time off when you can but my goodness, she has been working here for a while, and the pay is good even at the lowest levels. It would have been a great time to save up for going back to school.

I guess I should just be glad I won't be her in a few years when she graduates with student loans, credit card debt, a bad work ethic, and a PhD in English literature... :)

MooseOutFront

  • Pencil Stache
  • ****
  • Posts: 510
  • Age: 38
  • Location: Texas
Re: Overheard at Work
« Reply #2036 on: March 13, 2014, 11:17:05 PM »
Oof. Mindblowingly bad choices there.

galliver

  • Handlebar Stache
  • *****
  • Posts: 1781
Re: Overheard at Work
« Reply #2037 on: March 14, 2014, 09:46:48 AM »
One should never pay for a PhD. Ever.

Left Bank

  • Stubble
  • **
  • Posts: 102
  • Location: Bend, OR
Re: Overheard at Work
« Reply #2038 on: March 14, 2014, 10:01:16 AM »
You pay for a PhD, trust me, you pay...

galliver

  • Handlebar Stache
  • *****
  • Posts: 1781
Re: Overheard at Work
« Reply #2039 on: March 14, 2014, 12:21:46 PM »
I meant financially :P

Cassie

  • Magnum Stache
  • ******
  • Posts: 4466
Re: Overheard at Work
« Reply #2040 on: March 14, 2014, 02:06:56 PM »
That is true if you go to a traditional college setting. Good grades will get you free tuition, etc. However, if you want to keep working and get an online degree then there is no way not to pay for it.

lifejoy

  • Magnum Stache
  • ******
  • Posts: 3933
  • Age: 30
  • Location: Canada, eh
  • Lovin' the Mustachian life!
    • Not Buying This
Re: Overheard at Work
« Reply #2041 on: March 14, 2014, 02:31:47 PM »
You pay for a PhD, trust me, you pay...

LOL

iris lily

  • Magnum Stache
  • ******
  • Posts: 2953
Re: Overheard at Work
« Reply #2042 on: March 14, 2014, 04:14:31 PM »
I've got a good overheard at work ( maybe good and bad...):
A coworker was talking about buying a $40K truck and $60K boat last year --- they paid CASH.
She's an admin asst and he is a retired firefighter, and they saved up the cash!

Good for them!

uhm.  inheritance?

Usually people at this income level who can "save up" this kind of money don't go spending it on toys.
Just sayin.'

Rural

  • Magnum Stache
  • ******
  • Posts: 4670
Re: Overheard at Work
« Reply #2043 on: March 14, 2014, 06:44:49 PM »
That is true if you go to a traditional college setting. Good grades will get you free tuition, etc. However, if you want to keep working and get an online degree then there is no way not to pay for it.

Serious, non-facetious question. Are there internet PhDs that are worth the expense of getting them?

Well, most of the ones from state flagship universities are indistinguishable from face to face PhDs from state flagship universities, so there's that.

Zaga

  • Handlebar Stache
  • *****
  • Posts: 1775
  • Age: 38
  • Location: North of Pittsburgh, PA
    • A Wall of Hats
Re: Overheard at Work
« Reply #2044 on: March 14, 2014, 07:28:26 PM »
I've got a good overheard at work ( maybe good and bad...):
A coworker was talking about buying a $40K truck and $60K boat last year --- they paid CASH.
She's an admin asst and he is a retired firefighter, and they saved up the cash!

Good for them!
lol.  This is like a Dave Ramsey student gone renegade.
I never heard of Dave Ramsey before finding this site. From what comments I've seen here, I am not interesting in reading his books or listening to his shows.  So - could you explain this to someone who is a Ramsey-illiterate?
Dave has rules for buying cars.  #1 is to buy with cash.  #2 is to only buy a new car if your net worth is over $1 million.  And #3 is for the value of all depreciating assets like cars and boats to total no more than half of your annual take home pay.

So while they did have the cash, they certainly broke the third rule, and probably the second rule too.  So, renegades (if they follow Dave Ramsey).

MOD EDIT: fixed quote format
« Last Edit: March 15, 2014, 09:40:01 AM by Russ »

Mori

  • Stubble
  • **
  • Posts: 130
Re: Overheard at Work
« Reply #2045 on: March 14, 2014, 09:16:18 PM »
That is true if you go to a traditional college setting. Good grades will get you free tuition, etc. However, if you want to keep working and get an online degree then there is no way not to pay for it.

Sometimes your company pays--mine has tuition reimbursement up to a certain amount.

MooseOutFront

  • Pencil Stache
  • ****
  • Posts: 510
  • Age: 38
  • Location: Texas
Re: Overheard at Work
« Reply #2046 on: March 14, 2014, 10:51:51 PM »
I've got a good overheard at work ( maybe good and bad...):
A coworker was talking about buying a $40K truck and $60K boat last year --- they paid CASH.
She's an admin asst and he is a retired firefighter, and they saved up the cash!

Good for them!
lol.  This is like a Dave Ramsey student gone renegade.

I never heard of Dave Ramsey before finding this site. From what comments I've seen here, I am not interesting in reading his books or listening to his shows.  So - could you explain this to someone who is a Ramsey-illiterate?
Yes, just saying they excelled at the "avoid debt!" "pay with cash!" lessons but still completely blew it by going off the deep end with consumption. Debt free though!

Albert

  • Handlebar Stache
  • *****
  • Posts: 1254
  • Location: Switzerland
Re: Overheard at Work
« Reply #2047 on: March 15, 2014, 02:34:05 AM »
Serious, non-facetious question. Are there internet PhDs that are worth the expense of getting them?

Internet PhDs???????? There is such a thing? Please tell me you are joking…


mariarose

  • 5 O'Clock Shadow
  • *
  • Posts: 50
Re: Overheard at Work
« Reply #2048 on: March 15, 2014, 05:08:14 AM »
I've got a good overheard at work ( maybe good and bad...):
A coworker was talking about buying a $40K truck and $60K boat last year --- they paid CASH.
She's an admin asst and he is a retired firefighter, and they saved up the cash!

Good for them!
lol.  This is like a Dave Ramsey student gone renegade.

I never heard of Dave Ramsey before finding this site. From what comments I've seen here, I am not interesting in reading his books or listening to his shows.  So - could you explain this to someone who is a Ramsey-illiterate?
Yes, just saying they excelled at the "avoid debt!" "pay with cash!" lessons but still completely blew it by going off the deep end with consumption. Debt free though!

Well said and succintly put. " Cash is King", and "...you can live like no one else"

mariarose

  • 5 O'Clock Shadow
  • *
  • Posts: 50
Re: Overheard at Work
« Reply #2049 on: March 15, 2014, 05:41:29 AM »
The PMI equivalent in Canada (CMHC insurance) is also usually a lump sum that gets tacked on to the mortgage amount up front if you put down less than 20%. I think mine ended up being something on the order of 2.5% of the purchase price.

Back to overheard at work though, co-workers were talking about a recent lottery with a $200 million jackpot and how in reality after taxes it ends up being much less.
Me: I would be satisfied with just $1 mil.
CW1: 1 million? I don't think that would be enough. I would want an amount that I could actually quit my job.
CW2: Well, that's like $50k/year if you withdraw 5%.
CW1: Yeah, that's definitely not enough. I mean I suppose I could subsist on that if I had to, but if I wasn't working I would have all this extra time and I would need money to go on tropical vacations, etc.

As long as the cost of playing the lottery was more than covered, wouldn't it all be good?  I mean, by this standard, why do anything if the payoff isn't retirement with tropical vacations galore?  Stop smoking?  Nah. Cook dinner in rather than eat out every night? Nah.  Drive a Nissan Leaf as opposed to a 1ton 4WD truck to work?  Nah.  Not enough return to retire with adequate tropical sun exposure, on any ONE thing.

I don't advocate playing the lottery, by the way.  Just saying...