Author Topic: Mustachian People Problems (just for fun)  (Read 1852996 times)

Clookie

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Re: Mustachian People Problems (just for fun)
« Reply #5350 on: June 24, 2018, 07:23:37 AM »
I have a spreadsheet with my 401k balance at 40.5 and projected balances every year until 59.5. My plan was to simply update this every year on my .5 birthday. Now, I'm debating whether or not I should have an actual column next to the projected balances so that over the years I can see if I beat the projections or not.

My MPP is that I had a column next to the projected balances on how I actually did, but that was using my planned contributions as a variable. Since that changed with various life changes, I don't have a record of the actual original FIRE assumptions around contribution levels from 2012.

My other MPP is that there is a ton of food left over from the work party last night, but I've been taking advantage of free food too much the past couple of months and I have been over my comfortable weight range for a week, so I need to stick to my plan. (I put some into a plastic container to bring home for the SO, but have to leave the pizza.)

You might try to look what you can bring home with you and freeze. A lot of stuff can be frozen and you can either eat it in a couple of moths or you can eat it in the following weeks, maybe with a salad on the side or a generous quantity of cooked vegetables on the side.

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Re: Mustachian People Problems (just for fun)
« Reply #5351 on: June 24, 2018, 07:03:02 PM »
We hardly ever celebrate our birthdays and don't expect gifts. My mum just transfers money into my bank account.... then keeps nagging for months to hear what I spent it on. Apparantly index funds is not the right answer. One time I bought some clothes, expecting that would be a 'proper' gift, but apparantly basic clothing is not good enough for a birthday gift either. I'm starting at grad school right after my birthday this year, so hopefully she won't mind me spending the money on tuition / books.

At this point in my life the "universal gift certificate" is used to offset my taxes, as in anything they give to me I donate.  I don't think that is what they planned but htye gave it to me so it is mine to do as I wish.

MrsWhipple

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Re: Mustachian People Problems (just for fun)
« Reply #5352 on: June 24, 2018, 11:24:51 PM »
People have adult FRIENDS that give other adult FRIENDS birthday gifts? 
Sure, why not? I don't think it's weird at all, gifts are fun to make and give! Usually it's the birthday person who is hosting a party or inviting others out and doing all of the arrangements, a bit of reciprocity is called for imo. Plus it's a good excuse to give a friend something nice that they wouldn't get themselves. The last birthday party I went to was a friend I made a few months ago who invited me to an art opening she was in, so I just made some homemade chocolate truffles and put them in a nice box.

When I don't know someone well enough to know what they would like, I give them a candle and a card that says "I think you are pretty darn cool and I hope that by next year I know you well enough to get you something more awesome than a generic candle". 

My spin teacher gives everybody socks with weird patterns for their birthday; I can't wait for my birthday socks to see what she picks out. In conclusion, birthday presents rule!


Loren Ver

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Re: Mustachian People Problems (just for fun)
« Reply #5353 on: June 25, 2018, 05:04:25 AM »


When I don't know someone well enough to know what they would like, I give them a candle and a card that says "I think you are pretty darn cool and I hope that by next year I know you well enough to get you something more awesome than a generic candle". 


I really like the bold above.  DH and I make many of the gifts we give.  We like to share and expect no reciprocity.  We struggle when we don't know someone well enough to make a gift and your response really made me smile.  Thanks for sharing!

My problem, DH and I just move our FIRE date closer by one year.  This is great, but now we both need to recalculate our vacation usage as our employers do not pay it out when we leave and if you use to too much you have to pay it back.   

LV

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Re: Mustachian People Problems (just for fun)
« Reply #5354 on: June 25, 2018, 05:57:20 AM »


When I don't know someone well enough to know what they would like, I give them a candle and a card that says "I think you are pretty darn cool and I hope that by next year I know you well enough to get you something more awesome than a generic candle". 


I really like the bold above.  DH and I make many of the gifts we give.  We like to share and expect no reciprocity.  We struggle when we don't know someone well enough to make a gift and your response really made me smile.  Thanks for sharing!

My problem, DH and I just move our FIRE date closer by one year.  This is great, but now we both need to recalculate our vacation usage as our employers do not pay it out when we leave and if you use to too much you have to pay it back.   

LV

My friends and I give gifts - there are only 3-4 of us in a group, so we bands together, put £4-7 in each and buy random stuff we know we all like. one of my friends had a celebration this weekend, we all went out to a dance in a local cricket club - £5 entry, £3-4 a drink (alcoholic), and put in £4 each to buy her a Mexican death mask light (sounds weird, but she loved it!).

Imma

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Re: Mustachian People Problems (just for fun)
« Reply #5355 on: June 27, 2018, 02:08:05 AM »
I love giving gifts, especially home made thoughtful gifts, and I've been trying for years to establish a christmas gift tradition with the female half of the couple we celebrate christmas with.

My fiance is a true mustachian and thinks this is stupid, because there is not a single thing in the world he needs or wants that he doesn't already have...  Not even something nice and homemade.

Linda_Norway

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Re: Mustachian People Problems (just for fun)
« Reply #5356 on: June 27, 2018, 02:36:26 AM »
I love giving gifts, especially home made thoughtful gifts, and I've been trying for years to establish a christmas gift tradition with the female half of the couple we celebrate christmas with.

My fiance is a true mustachian and thinks this is stupid, because there is not a single thing in the world he needs or wants that he doesn't already have...  Not even something nice and homemade.

The year that my brother started giving me money for a Christmas present, I suggested to stop giving gifts to the adults. I still make a yearly photo calendar for them from our own pictures, but that is just a small thing.

In the other half of the family we still do this. But we usually ask each other what we want to have. It is nice asking for something you don't want to buy yourself, but would like to have. It is also nice to buy something for another person that this person wants to receive. Buying a random gift is not nice, because you have no idea how appreciated it is.

Roadrunner53

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Re: Mustachian People Problems (just for fun)
« Reply #5357 on: June 27, 2018, 05:08:43 AM »
My family did this a couple of years.

Each person put 3 things on a list with their name on it and kept the dollar value to $50. We put the lists in a hat and each of us pulled out a list out of the hat. We would buy one thing on the list and that would be the gift the person would receive. Each person got one nice gift and we didn't have to spend a fortune buying everyone in the family a gift. It definitely worked out nicely. They wouldn't know who they received the gift from as all the givers were anonymous.

plainjane

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Re: Mustachian People Problems (just for fun)
« Reply #5358 on: June 27, 2018, 08:18:27 AM »
You might try to look what you can bring home with you and freeze. A lot of stuff can be frozen and you can either eat it in a couple of moths or you can eat it in the following weeks, maybe with a salad on the side or a generous quantity of cooked vegetables on the side.

This is what I ended up doing on Friday. A couple of fellow scavengers got together and distributed the leftover food as matched dietary desires and discussed how more challenging items (like the soggy thin crust pizza) might be repurposed or frozen for later use. Yesterday I pointed out that the last of the olives and hot pepper things could probably be made into a tapenade for someone who likes that sort of thing, so that has found a home too.

BTDretire

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Re: Mustachian People Problems (just for fun)
« Reply #5359 on: June 27, 2018, 09:09:15 AM »
To be more precise: Direct taxes are deducted from the income.  The resulting adjusted income is then taxed.  This normally results in a lower tax payment.  The system is rigged but given that it is graduated upward with income it begs the questions against whom is it rigged?  The poor, the middle or the rich?
It would be interesting to see which income levels are paying the highest effective tax rate. I would guess that upper middle class is getting squeezed the most. My thought being that they are paying high income taxes while the rich are more likely to gain from the concept of capital gains taxes. The lack of payroll taxes above ~120k is also huge.
The poor pay the highest taxes compared to their income if you include all that stuff that is in the price of the necessary basic living expenses (sales tax for example) - or in other words, they pay the most taxes of income-% for just living.

The middle middle class pays the most percentage in regards to working income.

The higher middle class already pays less % because they have a greater capital gains percantage of their income, but already good tax evasion advisors.

And the richest pay the lowest % of their income as taxes.

It is as Warren Buffet likes to say: He pays less taxes (%) then his secretary.

And that is not even touching the topic of inheritances.
I'd like to see some test cases run with specific numbers to support the claim that the lowest-income folks pay the highest taxes compared to income.  In addition, it's not even as simple as including taxation on all levels--if we're concerned about "fairness," we must also take into account all the other government programs in place to help the poor.
It always comes back to your personal philosophy regarding wages vs dividend/interest income. If you think dividend/interest income should be taxed different than wages, then you see that the rich pay much higher percentage in taxes.
  If you think dividend/interest income should be taxed the same as wages then the rich pay a lower percentage in taxes. Of course individuals very, some have lots of dividend/interest income, other high wages.
  I like the special tax treatment of dividend/interest income. even though our average inflation adjusted income has been about $71k.
  And then some people consider FICA a tax the poor pay that makes their tax rate very high. I disagree, FICA is a forced retirement program that is a savior of the poor in retirement. Most poor would never save anything for their retirement and end up living a squalid existence if they weren't forced to pay into their retirement program.
  Personally, We have had many years with income between $80k and $105k, broke down into, about $70k wages and the rest dividend/interest income. Yet, we only pay 2% to 4% in federal tax on my total income. I take full advantage of two SEPS, an HSA and College tuition credits. I do pay 15.2% into FICA and medicare. (no deductions to reduce that) We're self employed.

dragoncar

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Re: Mustachian People Problems (just for fun)
« Reply #5360 on: June 27, 2018, 10:33:37 AM »
To be more precise: Direct taxes are deducted from the income.  The resulting adjusted income is then taxed.  This normally results in a lower tax payment.  The system is rigged but given that it is graduated upward with income it begs the questions against whom is it rigged?  The poor, the middle or the rich?
It would be interesting to see which income levels are paying the highest effective tax rate. I would guess that upper middle class is getting squeezed the most. My thought being that they are paying high income taxes while the rich are more likely to gain from the concept of capital gains taxes. The lack of payroll taxes above ~120k is also huge.
The poor pay the highest taxes compared to their income if you include all that stuff that is in the price of the necessary basic living expenses (sales tax for example) - or in other words, they pay the most taxes of income-% for just living.

The middle middle class pays the most percentage in regards to working income.

The higher middle class already pays less % because they have a greater capital gains percantage of their income, but already good tax evasion advisors.

And the richest pay the lowest % of their income as taxes.

It is as Warren Buffet likes to say: He pays less taxes (%) then his secretary.

And that is not even touching the topic of inheritances.
I'd like to see some test cases run with specific numbers to support the claim that the lowest-income folks pay the highest taxes compared to income.  In addition, it's not even as simple as including taxation on all levels--if we're concerned about "fairness," we must also take into account all the other government programs in place to help the poor.
It always comes back to your personal philosophy regarding wages vs dividend/interest income. If you think dividend/interest income should be taxed different than wages, then you see that the rich pay much higher percentage in taxes.
  If you think dividend/interest income should be taxed the same as wages then the rich pay a lower percentage in taxes. Of course individuals very, some have lots of dividend/interest income, other high wages.
  I like the special tax treatment of dividend/interest income. even though our average inflation adjusted income has been about $71k.
  And then some people consider FICA a tax the poor pay that makes their tax rate very high. I disagree, FICA is a forced retirement program that is a savior of the poor in retirement. Most poor would never save anything for their retirement and end up living a squalid existence if they weren't forced to pay into their retirement program.
  Personally, We have had many years with income between $80k and $105k, broke down into, about $70k wages and the rest dividend/interest income. Yet, we only pay 2% to 4% in federal tax on my total income. I take full advantage of two SEPS, an HSA and College tuition credits. I do pay 15.2% into FICA and medicare. (no deductions to reduce that) We're self employed.

Definitely agree about FICA.  It may not have the greatest returns, and thus some portion could be considered tax, but the predicted benefits seem like a pretty fair return on investment (this ignores the effect of potential reforms in the future, and I say seem because I realize it’s not an actual investment, it just acts like one). 

People who say the FICA cap should be raised seem to miss this point.  Unless the way social security is changed, the rich will still get increased benefits from their increased payments.  Yes, the benefit increase is progressive in that it goes down the more you pay in, but it’s still positive.  I wonder if people who want to raise the fica cap also are suggesting a new tier of reduced benefits or a new regime where the rich don’t receive benefits on additional fica taxes.

I’m biased coming from an upper middle/upper class income, but I personally agree with others that the middle/upper middle class are the ones really squeezed under our tax regime and the poor/upper upper do fine.  I’d much rather leave social security alone and fund any shortfall with general tax receipts, and you can fight abough the best way to increase tax receipts most likely from the upper/ultra classes.

Paul der Krake

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Re: Mustachian People Problems (just for fun)
« Reply #5361 on: June 27, 2018, 11:04:15 AM »
Everybody thinks the upper class starts at 20% annual income above their own.

dragoncar

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Re: Mustachian People Problems (just for fun)
« Reply #5362 on: June 27, 2018, 11:59:36 AM »
Everybody thinks the upper class starts at 20% annual income above their own.

Naw, it’s at least double

MrsWhipple

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Re: Mustachian People Problems (just for fun)
« Reply #5363 on: July 03, 2018, 04:28:10 PM »
I think I posted about this before, but we opened up a savings account for our baby because family members wanted to gift her some money and insisted that it be put in a savings account in her name... I don't know if they thought we would spend it or what. I duly opened up a minor's savings account at Alliant and transferred some money over from my account, like $1k or some nice whole number, thinking that it would be easier to just say we put in the money every time she gets $20 at Christmas.

BUT now they are asking for the account details, and I threw away the letter the bank sent so I have to get it resent. A good problem, to be sure, but definitely a mustachian problem since we don't need the money and it is a minor annoyance! The relatives must think I'm horrible with money. "She lost the information for her baby's savings account?! Who loses track of money?!"

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Re: Mustachian People Problems (just for fun)
« Reply #5364 on: July 03, 2018, 05:14:34 PM »
I think I posted about this before, but we opened up a savings account for our baby because family members wanted to gift her some money and insisted that it be put in a savings account in her name... I don't know if they thought we would spend it or what. I duly opened up a minor's savings account at Alliant and transferred some money over from my account, like $1k or some nice whole number, thinking that it would be easier to just say we put in the money every time she gets $20 at Christmas.

BUT now they are asking for the account details, and I threw away the letter the bank sent so I have to get it resent. A good problem, to be sure, but definitely a mustachian problem since we don't need the money and it is a minor annoyance! The relatives must think I'm horrible with money. "She lost the information for her baby's savings account?! Who loses track of money?!"


I would consider such a request to be a gross impertinence. 


You don't "have" to have the bank re-send a letter.  You can just tell them it's done.    And suggest they learn some manners if they get pushy.   


But then, I value my independence and my kid's independence more than I value money some relative might give me or my kids.



BTDretire

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Re: Mustachian People Problems (just for fun)
« Reply #5365 on: July 03, 2018, 05:33:06 PM »
Everybody thinks the upper class starts at 20% annual income above their own.


 I thought my wife and I had earned a less than median income over our 37 years of marriage.
 I recently made a spreasheet that adjusts your income for inflation, so you can see how your
lifetime income compares to the median. You can make use of it here, but need to sign into google.
https://forum.mrmoneymustache.com/welcome-to-the-forum/poll-comparing-mmmers-long-term-income-to-median-income/
 Our results, about half our years were below median family income and half above,
 and our average yearly income for those years was $71,000, about 30% above the
$55,000 median family income.
  Never realized we did that well--- but "that well" is relative, isn't it :-)
 We did manage to save ourselves into the top 6% in NW.

Sibley

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Re: Mustachian People Problems (just for fun)
« Reply #5366 on: July 03, 2018, 06:41:29 PM »
I've got an contractor coming for an estimate (no hate here, avoiding the medical bills is much less expensive than paying someone to do the work in this case). They asked if I'd heard of some government program relating to energy efficiency, I asked if there was an income limitation. She said yes. I said, thanks, but I'm above the limit. I don't even need to know the limit. My income is double the median of my state, I'm over the limit.

Linda_Norway

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Re: Mustachian People Problems (just for fun)
« Reply #5367 on: July 04, 2018, 12:57:07 AM »
I think I posted about this before, but we opened up a savings account for our baby because family members wanted to gift her some money and insisted that it be put in a savings account in her name... I don't know if they thought we would spend it or what. I duly opened up a minor's savings account at Alliant and transferred some money over from my account, like $1k or some nice whole number, thinking that it would be easier to just say we put in the money every time she gets $20 at Christmas.

BUT now they are asking for the account details, and I threw away the letter the bank sent so I have to get it resent. A good problem, to be sure, but definitely a mustachian problem since we don't need the money and it is a minor annoyance! The relatives must think I'm horrible with money. "She lost the information for her baby's savings account?! Who loses track of money?!"


I would consider such a request to be a gross impertinence. 


You don't "have" to have the bank re-send a letter.  You can just tell them it's done.    And suggest they learn some manners if they get pushy.   


But then, I value my independence and my kid's independence more than I value money some relative might give me or my kids.

As a parent you are the financial guardian for your child. You are allowed to spend the amount in whatever way you want. The relatives have now right to interfere whether you followed up their command.

But if I were you and you want to stay nice, I would just tell them that the child has now 1K on the bank account, accumulated from various gifts, theirs and others. Tell them that you also sometimes put some money in the account. That should make them happy, shouldn't it? It shows that you didn't spend the money on yourself and it shows that the child is saving up something. Asking for individual transactions is manically controlling something that is out of their control.
Why don't you put the money in an index fund in your child's name? Your child can get a lifetime of compounding.

As a parent you are the financial guardian for your child. You are allowed to spend the amount in whatever way you want.
At least here in Germany this is not true and children can sue their parents if they spend their children‘s money

Okay, I checked it. In Norway you are not allowed to freely spend your child's money if the child earned it herself or received it personally. When the children are young, the parents need to treat the money in a way that is beneficial for the child.

So maybe, the grandparent had a point after all...
« Last Edit: July 04, 2018, 01:40:12 AM by Linda_Norway »

barbaz

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Re: Mustachian People Problems (just for fun)
« Reply #5368 on: July 04, 2018, 01:06:29 AM »
As a parent you are the financial guardian for your child. You are allowed to spend the amount in whatever way you want.
At least here in Germany this is not true and children can sue their parents if they spend their children‘s money

Imma

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Re: Mustachian People Problems (just for fun)
« Reply #5369 on: July 04, 2018, 02:15:17 AM »
As a parent you are the financial guardian for your child. You are allowed to spend the amount in whatever way you want.
At least here in Germany this is not true and children can sue their parents if they spend their children‘s money

This is true in the Netherlands as well. If the account is in the child's name, the parents can't just take the money out and spend it freely. The upside is that the money is also protected against debts of the parents.

For this reason, it's not that unusual for grandparents and other relatives to insist that they pay gifts directly into an account in the child's name. I know several friends that have accounts like this and their parents or siblings have standing orders for the kid's account. If you are living truly Mustachian, I can also see why some relatives might think you're poor. I know some of my relatives think we are, even though I've told them we're not (I haven't told them the details, but did tell them not to worry about our financial situation, we're doing more than fine).

elliha

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Re: Mustachian People Problems (just for fun)
« Reply #5370 on: July 04, 2018, 03:15:44 AM »
The Swedish law seems a bit hard to grasp on this with parents and children's money. Parents are supposed to use them wisely but they can use them to a certain extent for family things and I know that people have been asked to use children's money if they want to go on welfare but I am not sure if this is all of it or just some of it. I think this is so that you can't hide your money in your children's account and also get welfare. I do sadly know parents that have used children's money and gotten away with it so I think that our law might be pretty bad in this regard. The law does state that money earned by children over 16 cannot be used by the parents.

However, if you give children a gift you can make someone other than the parents responsible for it so if the parents are POS you can protect the child that way. I personally would prefer to give money to a child once it has turned 18 or choose to support someone once they need the cash because of these somewhat unclear rules. That gives the control that I would like to see but of course there are always ways of cheating any system so you can never be 100% sure your money is not wasted.

beer-man

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Re: Mustachian People Problems (just for fun)
« Reply #5371 on: July 04, 2018, 08:14:55 AM »
The best conversation I’ve had at work was with a sick patient who happened to be a CFP and a fiduciary


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beer-man

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Re: Mustachian People Problems (just for fun)
« Reply #5372 on: July 04, 2018, 08:24:25 AM »
I spend so little, that I can barely make my credit card sign up bonus minimums.
Haha yes I have to plan for months just to prepare to meet a minimum spend


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beer-man

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Re: Mustachian People Problems (just for fun)
« Reply #5373 on: July 04, 2018, 08:30:59 AM »
We once met with a CFP who told us we were in the best financial position than any young family he’s ever met with. He then offered me a job....which I had to graciously turn down and explain to him that I didn’t believe in the products he was peddling(front loaded mutual funds/variable annuities, etc)
 Awkward mustacian moment


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dragoncar

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Re: Mustachian People Problems (just for fun)
« Reply #5374 on: July 04, 2018, 12:47:11 PM »
As a parent you are the financial guardian for your child. You are allowed to spend the amount in whatever way you want.
At least here in Germany this is not true and children can sue their parents if they spend their children‘s money

This is true in the Netherlands as well. If the account is in the child's name, the parents can't just take the money out and spend it freely. The upside is that the money is also protected against debts of the parents.

For this reason, it's not that unusual for grandparents and other relatives to insist that they pay gifts directly into an account in the child's name. I know several friends that have accounts like this and their parents or siblings have standing orders for the kid's account. If you are living truly Mustachian, I can also see why some relatives might think you're poor. I know some of my relatives think we are, even though I've told them we're not (I haven't told them the details, but did tell them not to worry about our financial situation, we're doing more than fine).

Honestly, if you are worried about a parent spending a child's money on personal stuff, it's probably better to just set aside the money for to give directly to the child later in life.  Scummy parents gonna be scrummy

MrsWhipple

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Re: Mustachian People Problems (just for fun)
« Reply #5375 on: July 04, 2018, 08:45:20 PM »
I would consider such a request to be a gross impertinence. 
You don't "have" to have the bank re-send a letter.  You can just tell them it's done.    And suggest they learn some manners if they get pushy.
Yeah, I think this person might be asking so that she can transfer more money on her own to the bank account. I'm happy to acquiesce if it means keeping family happy, I just thought it was a funny problem to have. And I'm glad to know that, if I WAS terrible with money, the inlaws would be looking out for my daughter's financial future.

You might get a kick out of the fact that the relative in question was working up until the age of 78(!), and her last email to me warned me about social security not being there for my daughter or possibly even me when I retire, so she "hopes we have a financial plan in place". I think she means well, but I have to laugh, since my husband and I retired last year in our mid thirties.

If you are living truly Mustachian, I can also see why some relatives might think you're poor.

Haha, it's probably this. We drive a 8-year old car and a 17-year old car respectively and live in a small house. Nobody else on that side of the family knows how to save money, so they probably just assume that we're the same way! And no way in hell I'm going to tell them how much money we actually have saved up...

MrsWhipple

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Re: Mustachian People Problems (just for fun)
« Reply #5376 on: July 04, 2018, 08:47:42 PM »
Why don't you put the money in an index fund in your child's name? Your child can get a lifetime of compounding.
I hadn't really thought about this, you mean opening up a brokerage account in their name? I really do need to do some more research into how best to transfer wealth to kids, but my first thought was that anything in their name is used against them for financial aid purposes, right? Okay, you've given me a good kick in the butt to actually go get informed about this stuff sooner rather than later ;)

shelivesthedream

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Re: Mustachian People Problems (just for fun)
« Reply #5377 on: July 04, 2018, 09:23:16 PM »
Not American, but my nine week old baby has a Vanguard account. The eighteen years on compounding made it a no brainer.

Imma

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Re: Mustachian People Problems (just for fun)
« Reply #5378 on: July 05, 2018, 03:09:13 AM »
As a parent you are the financial guardian for your child. You are allowed to spend the amount in whatever way you want.
At least here in Germany this is not true and children can sue their parents if they spend their children‘s money

This is true in the Netherlands as well. If the account is in the child's name, the parents can't just take the money out and spend it freely. The upside is that the money is also protected against debts of the parents.


Honestly, if you are worried about a parent spending a child's money on personal stuff, it's probably better to just set aside the money for to give directly to the child later in life.  Scummy parents gonna be scrummy

That's absolutely true and I think there are very few cases where a child can actually recoup the money their parents have stolen from them (if it comes to that). First of all they might not be aware of the account, if they are they might not have bank statements, they might not know their parent wasn't allowed to spend it and even if they do they will probably lack the will and the money to sue their parents. Relatives might feel like their gift is protected, but that protection is not real.

For tax reasons, lots of grandparents prefer to put the money in an account with the child's name though. We have a wealth tax and any money that's not in their name, will not be taxed. We don't have trust funds in this country, so savings accounts in a child's name is the most common method of making sure their grandchild will get the money even when the grandparents have passed by the time the child turns 18.



MrsWolfeRN

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Re: Mustachian People Problems (just for fun)
« Reply #5379 on: July 05, 2018, 04:58:00 AM »
Why don't you put the money in an index fund in your child's name? Your child can get a lifetime of compounding.
I hadn't really thought about this, you mean opening up a brokerage account in their name? I really do need to do some more research into how best to transfer wealth to kids, but my first thought was that anything in their name is used against them for financial aid purposes, right? Okay, you've given me a good kick in the butt to actually go get informed about this stuff sooner rather than later ;)

Yes, in the US the child is supposed to kick in half of their income and most of their net worth before they get any financial aid. Parental income and net worth are not penalized as much.  You can say it is being used against them, but I prefer to think of it as making things more fair for other kids who do not have such generous relatives. The child can also get around this by delaying college until age 23, or by sheltering the money in a retirement account such as a Roth IRA, or purchasing a primary residence.

jinga nation

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Re: Mustachian People Problems (just for fun)
« Reply #5380 on: July 05, 2018, 05:41:12 AM »
Not American, but my nine week old baby has a Vanguard account. The eighteen years on compounding made it a no brainer.

+1. If you're in the USA, you can open an UTMA/UGMA account for your kids at Vanguard. Then VTSMX/VTSAX. Parents are custodians.

Trifele

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Re: Mustachian People Problems (just for fun)
« Reply #5381 on: July 05, 2018, 10:01:09 AM »
Not American, but my nine week old baby has a Vanguard account. The eighteen years on compounding made it a no brainer.

+1. If you're in the USA, you can open an UTMA/UGMA account for your kids at Vanguard. Then VTSMX/VTSAX. Parents are custodians.

FYI -- Vanguard has high minimums to start a custodial account -- $1000 or $3000 depending on the fund.  If you can't swing that, then Schwab is a good option -- their minimum is $100.  Plus -- their fees on their total stock market index fund (SWTSX) are only .03%.

Radiowave

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Re: Mustachian People Problems (just for fun)
« Reply #5382 on: July 08, 2018, 06:59:06 PM »
When the lunchtime conversation turns to expensive vacations, new SUVs, and credit card debt, I just sit there like a lump

princeradar

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Re: Mustachian People Problems (just for fun)
« Reply #5383 on: July 08, 2018, 08:27:24 PM »
I have the oldest car in the parking lot at work (2006 Jetta).  I love cars, and could easily afford to purchase a new one for cash (but I'm not an idiot).  I actually think I get more pleasure driving this car than I would if I purchased a newer more luxurious model.  Not planning on replacing it until it becomes economically unviable.



zolotiyeruki

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Re: Mustachian People Problems (just for fun)
« Reply #5384 on: July 08, 2018, 10:20:56 PM »
I have the oldest car in the parking lot at work (2006 Jetta).  I love cars, and could easily afford to purchase a new one for cash (but I'm not an idiot).  I actually think I get more pleasure driving this car than I would if I purchased a newer more luxurious model.  Not planning on replacing it until it becomes economically unviable.
I had the same pleasure at my last job--my '95 Corolla was easily the oldest in the lot.  When I switched jobs in 2011, I no longer held that honor--my boss had an even older Accord.  That one eventually got wrecked by a teenager, and I reclaimed my title.  My other boss was in 2nd with a '99 Corolla.  Last year, after that one got totalled, he upgraded...to a '01 Accord. :)

Linda_Norway

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Re: Mustachian People Problems (just for fun)
« Reply #5385 on: July 09, 2018, 12:24:35 AM »
For our summer vacation next week, I miss plastic bags. I have stopped getting plastic bags in grocery stores, because I use cloth bags. And I have stopped shopping all kinds of nonsense in other shops.

Maybe the grocery store has a roll of plastic garbage bags that I could buy?

GuitarStv

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Re: Mustachian People Problems (just for fun)
« Reply #5386 on: July 09, 2018, 08:29:26 AM »
For our summer vacation next week, I miss plastic bags. I have stopped getting plastic bags in grocery stores, because I use cloth bags. And I have stopped shopping all kinds of nonsense in other shops.

Maybe the grocery store has a roll of plastic garbage bags that I could buy?

Clean out and reuse the plastic packaging that your food comes in.  There's still plenty of plastic to go around.  :P

Hirondelle

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Re: Mustachian People Problems (just for fun)
« Reply #5387 on: July 10, 2018, 12:08:44 AM »
For our summer vacation next week, I miss plastic bags. I have stopped getting plastic bags in grocery stores, because I use cloth bags. And I have stopped shopping all kinds of nonsense in other shops.

Maybe the grocery store has a roll of plastic garbage bags that I could buy?

Clean out and reuse the plastic packaging that your food comes in.  There's still plenty of plastic to go around.  :P

Why would you suddenly need plastic bags for the vacation? Can't you just use the cloth ones?

Linda_Norway

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Re: Mustachian People Problems (just for fun)
« Reply #5388 on: July 10, 2018, 01:42:51 AM »
For our summer vacation next week, I miss plastic bags. I have stopped getting plastic bags in grocery stores, because I use cloth bags. And I have stopped shopping all kinds of nonsense in other shops.

Maybe the grocery store has a roll of plastic garbage bags that I could buy?

Clean out and reuse the plastic packaging that your food comes in.  There's still plenty of plastic to go around.  :P

Why would you suddenly need plastic bags for the vacation? Can't you just use the cloth ones?

Waterproof packaging during a week long backpack hiking trip. We have proper waterproof bags for the important stuff, like sleeping bags and clothes. But we put food and some other stuff in plastic shopping bags. Keeps out the rain.

The bags that food come in are reused for other purposes, but they are very flimsy. Not suited for this purpose.

CptCool

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Re: Mustachian People Problems (just for fun)
« Reply #5389 on: July 10, 2018, 08:55:42 AM »
Waterproof packaging during a week long backpack hiking trip. We have proper waterproof bags for the important stuff, like sleeping bags and clothes. But we put food and some other stuff in plastic shopping bags. Keeps out the rain.

The bags that food come in are reused for other purposes, but they are very flimsy. Not suited for this purpose.

I realize you're in Norway so the amazon link below probably isn't relevant, but you should get trash compactor bags and use 1 to line your entire pack. That way everything is 100% waterproof. It's amazing and super lightweight. I usually bring 2 - one for a bag liner and one to put on the ground to sit on, put my stuff on top of it, etc

https://www.amazon.com/Hefty-Trash-Compactor-Bags-GAL/dp/B002BXRGQA

Linda_Norway

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Re: Mustachian People Problems (just for fun)
« Reply #5390 on: July 10, 2018, 09:16:22 AM »
Waterproof packaging during a week long backpack hiking trip. We have proper waterproof bags for the important stuff, like sleeping bags and clothes. But we put food and some other stuff in plastic shopping bags. Keeps out the rain.

The bags that food come in are reused for other purposes, but they are very flimsy. Not suited for this purpose.

I realize you're in Norway so the amazon link below probably isn't relevant, but you should get trash compactor bags and use 1 to line your entire pack. That way everything is 100% waterproof. It's amazing and super lightweight. I usually bring 2 - one for a bag liner and one to put on the ground to sit on, put my stuff on top of it, etc

https://www.amazon.com/Hefty-Trash-Compactor-Bags-GAL/dp/B002BXRGQA

Trash compactors are a thing I only know in theory of. We just have large containers. But yes, there are shops that sell a variety of plastic bags, big, small or extra solid for all purposes. We will find a solution somewhere.

I also reuse the compostable plastic bags that we get for free from the community to throw away our green garbage. We have a composting bin where we throw in our green garbage without a bag. The bags are used on hiking trips for collecting my toilet paper. They also burn on a campfire. And in the bathroom in our house in the small bins.
« Last Edit: July 10, 2018, 09:18:45 AM by Linda_Norway »

dragoncar

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Re: Mustachian People Problems (just for fun)
« Reply #5391 on: July 10, 2018, 12:33:52 PM »
Waterproof packaging during a week long backpack hiking trip. We have proper waterproof bags for the important stuff, like sleeping bags and clothes. But we put food and some other stuff in plastic shopping bags. Keeps out the rain.

The bags that food come in are reused for other purposes, but they are very flimsy. Not suited for this purpose.

I realize you're in Norway so the amazon link below probably isn't relevant, but you should get trash compactor bags and use 1 to line your entire pack. That way everything is 100% waterproof. It's amazing and super lightweight. I usually bring 2 - one for a bag liner and one to put on the ground to sit on, put my stuff on top of it, etc

https://www.amazon.com/Hefty-Trash-Compactor-Bags-GAL/dp/B002BXRGQA

Trash compactors are a thing I only know in theory of. We just have large containers. But yes, there are shops that sell a variety of plastic bags, big, small or extra solid for all purposes. We will find a solution somewhere.

I also reuse the compostable plastic bags that we get for free from the community to throw away our green garbage. We have a composting bin where we throw in our green garbage without a bag. The bags are used on hiking trips for collecting my toilet paper. They also burn on a campfire. And in the bathroom in our house in the small bins.

Just wrap it in oiled linen

Just Joe

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Re: Mustachian People Problems (just for fun)
« Reply #5392 on: July 10, 2018, 02:42:08 PM »
Anyone else thought they found their long lost tribe when they found this site or read the comments on this topic?

Me too. I feel at home here.

It feels hard when I'm asked by friends what I want for my birthday. I can't answer rice & beans and they are not very fond of giving me money.
Oh, the drama. The difficult life a mustachian

The personal evolution from spendy American to optimized saver/investor. Challenges have melted away as long term efforts at home and work have paid off. DW and I are just two average professionals making an effort. Not rich but doing fine.

Meanwhile from time to time we witness our "old selves" while out visiting. These folks are seeking justification for their choices, want to commiserate about money woes, and are receptive in varying degrees about being steered towards answers on the web. I think some of them just want to complain to someone and get some attention. More often than not advice is unheeded or unwelcome. Some folks must like their stress. ;)
« Last Edit: July 10, 2018, 02:53:54 PM by Just Joe »

Spruit

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Re: Mustachian People Problems (just for fun)
« Reply #5393 on: July 13, 2018, 03:14:32 AM »
When selling a late relative's stuff through Marktplaats (the local Craigslist) and you find yourself jumping to every slightly reasonable offer, thinking "Well, I would not pay more for it, right? I mean, I'd rather have the money than the thing. Better one bird in the hand than two in the bush..."
Then finding out after the deal is sealed that the item is worth more to a lot of people. Damn frugality mindset!

(Also, to be too decent to revoke the deal and sell to the (now) highest bidder instead, but I guess that's a different discussion. I hate it when people do that to me after the deal is done, so I won't do it to other people. But damn, so tempting!)

solon

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Re: Mustachian People Problems (just for fun)
« Reply #5394 on: July 13, 2018, 05:59:35 AM »
1299 posts... 1299 posts... How am I going to get one more post to make it an even... oh.

peregrine

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Re: Mustachian People Problems (just for fun)
« Reply #5395 on: July 13, 2018, 08:08:20 AM »
Mustachian people problem:

When a family member asks how much my mortgage pmnt is and I tell them.

Then after a few seconds they're like, "Yeah, but how much with taxes and insurance? Huh???"

And I'm like, "No, that's with taxes and insurance."

And after a few seconds they're like, "....."
« Last Edit: July 13, 2018, 08:13:46 AM by peregrine »

Bicycle_B

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Re: Mustachian People Problems (just for fun)
« Reply #5396 on: July 13, 2018, 08:20:06 AM »
Mint keeps sending me emails that say "You haven't spent anything in the last week. That can't be right." It is, but I don't want to label Mint as spam because I might get a legitimate message. Wasted electrons.

Dollar Slice

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Re: Mustachian People Problems (just for fun)
« Reply #5397 on: July 14, 2018, 11:42:43 PM »
I lost my job recently, and I keep having the most awkward conversations with people. They are only saying it because they care about me and are worried, and I appreciate it, but I don't know what to say to all the people who want to know how long I'll be able to last without a paycheck. The truth is something like seven or eight years, but I don't want to say that. A lot of my friends are low income and it just sounds so cringey to say that to someone who struggles to afford health insurance.

Hirondelle

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Re: Mustachian People Problems (just for fun)
« Reply #5398 on: July 15, 2018, 02:04:26 AM »
That's a tough one Slicey! Could you say something like that you'd been saving up for a while as you wanted a change and they had tried to lay you off a few months ago already? You don't have to tell them you'll be fine for 8 years, but you can let them know you've prepared yourself for this already and you'll be fine for a while if you cut back some expenses :)

Raymond Reddington

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Re: Mustachian People Problems (just for fun)
« Reply #5399 on: July 15, 2018, 03:22:51 AM »
Mustachian problems - trying to relate to the masses in everyday financial conversations.

Me (thinks to self quietly): Hmm...Is payday this week or next week? It's one or the other.
Everyone else (out loud): WOOHOO! Payday! Just in time for all my bills!
Me (to myself): Cool, guess it's this week.
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Everyone else: ZOMG! The stock market is down!!! Is it a crash??? OMG let me click on 50 Jim Cramer stories to find out!!! I might have to sell!!!
Me: Cool, stuff is cheaper today. Time to buy more.
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Everyone else: Wow, nice car.
Me: Thanks.
Everyone else: That's my ride over there.
Me: Cool.
Everyone else (waits for a compliment)
Me: ....
Everyone else: I got a sweet deal from XX dealership for it. At the end of the lease, I can upgrade to a new model and just sign a new lease.
Me: Cool, mine's totally paid off.
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Everyone else: I can't believe XX bank is gonna start charging a monthly fee.
Me: That's easy enough to avoid.
Everyone else: HOW?
Me: Don't you have emergency savings in the bank?
Everyone else: Yeah, I keep a few hundred bucks in there, not enough to avoid the fee.
Me: ...
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Me: Trying to figure out a way to save money on XX
Everyone else: Oh, that's easy. If you need money, just take out a pension loan or a 401k loans
Me: ....
Everyone else: Did you not hear what I said?
Me: Oh, I heard it. But that's literally the worst thing I could do in this situation.
Everyone else: And why's that? You pay the interest back to yourself in the end anyway!
Me: ...
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Me: I got a pretty good interest rate on my mortgage, and they give me cash back. Plus its fixed, so my payments won't go up unless property taxes or insurance do.
Everyone else: Did you shop around? The best rates always come from (name of credit union withheld)
Me: Of course I did. They didn't have the best rates.
Everyone else: I don't know, I wouldn't be so sure. I swear by them for everything, and they've been pretty good.
Me: Really? I hear complaints all the time about how they have no ATMs hardly, and it's tough to get your money out. And didn't their CEO just get in trouble for (info withheld to protect the guilty)
Everyone else: Well, yeah, I mean they're small, but that's to be expected. But at least they don't charge fees!
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