Author Topic: Mustachian People Problems (just for fun)  (Read 1733692 times)

Dicey

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Re: Mustachian People Problems (just for fun)
« Reply #4650 on: January 26, 2018, 05:06:59 PM »
My MPP:

We have saved enough to buy our first house without additional loans, BUT now have to start saving all over again to FIRE. Break out the tiny violins, especially as saving will be faster with property than with the cheap house we rented. (Counting repayments of the principal as saving and only the interest part as an expense)
This makes no sense to me. What are you trying to say in the last sentence? Sounds like you might be shooting yourself in the foot. Where is @boarder42 when you need him...? Car42, where are you?

boarder42

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Re: Mustachian People Problems (just for fun)
« Reply #4651 on: January 27, 2018, 03:16:07 AM »
My MPP:

We have saved enough to buy our first house without additional loans, BUT now have to start saving all over again to FIRE. Break out the tiny violins, especially as saving will be faster with property than with the cheap house we rented. (Counting repayments of the principal as saving and only the interest part as an expense)
This makes no sense to me. What are you trying to say in the last sentence? Sounds like you might be shooting yourself in the foot. Where is @boarder42 when you need him...? Car42, where are you?

It makes sense. So if they were paying 2k to rent. And now pay 1500 to mortgage and 400 of that is principal. Previously the whole 2k was going out the door now they can say they are saving 900 more a month if you count house principal paydown as savings. That being said. Please don't party your mortgage down faster than the term bc investing will put you ahead of extra principal paydown

MrsWolfeRN

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Re: Mustachian People Problems (just for fun)
« Reply #4652 on: January 27, 2018, 08:40:48 AM »
This is my favorite thread!!!
I finally have one: yesterday I forgot some coupons when I went grocery shopping. I didn't realize until I had been walking around with frozen stuff in my cart for a while and it seemed like an asshole move to put it all back, so I wasted $10 plus the time I spent printing the coupons and was mad at myself the entire day.

Izybat

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Re: Mustachian People Problems (just for fun)
« Reply #4653 on: January 27, 2018, 01:29:35 PM »
I'm sad because I just switched our 401k contributions from being almost maxed out to just meeting the minimum for company matching. We're likely going to be moving in the next six months, and I want to make sure we have enough cash on hand for all related expenses (fixing our current house, selling it, buying a new one). I know the money is still coming in to our accounts, but I also know it's now going to be taxed, so that our net worth isn't' going to go up as much as it has been.

Linda_Norway

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Re: Mustachian People Problems (just for fun)
« Reply #4654 on: January 28, 2018, 10:41:33 AM »
Friday we went out in the city. I went to order a drink. Too late, I discovered that they also had a place where you could tap iced water into a plastic glass. Instead I ordered white wine and got the tiniest amount in the tiniest glass and it cost a fortune. For my second drink, I drank the water.

NevermindScrooge

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Re: Mustachian People Problems (just for fun)
« Reply #4655 on: January 28, 2018, 02:09:05 PM »
My MPP:

We have saved enough to buy our first house without additional loans, BUT now have to start saving all over again to FIRE. Break out the tiny violins, especially as saving will be faster with property than with the cheap house we rented. (Counting repayments of the principal as saving and only the interest part as an expense)
This makes no sense to me. What are you trying to say in the last sentence? Sounds like you might be shooting yourself in the foot. Where is @boarder42 when you need him...? Car42, where are you?

It makes sense. So if they were paying 2k to rent. And now pay 1500 to mortgage and 400 of that is principal. Previously the whole 2k was going out the door now they can say they are saving 900 more a month if you count house principal paydown as savings. That being said. Please don't party your mortgage down faster than the term bc investing will put you ahead of extra principal paydown

Thanks for your comments! As a first time home-owner and a novice to investing this is all very confusing. I'm sorry if I shared my confusion with you.
What I meant to say is that - like boarder42 said - I considered our rent to be money thrown out the window, whereas paying down the principal of our mortgage will be an accumulation of net worth. The interest of the mortgage is in my eyes money thrown at the bank. However, I have learned yesterday that it is better not to count property as part of the amount needed to FIRE, that it should only be (relatively) easily accessible funds. So you can basically ignore my previous post, sorry guys!

To further explain: I live in Europe and somehow I don't 'get' the 7% average on our investments. Maybe that is because I'm too conservative, and has nothing to do with geographical location and a difference in tax systems. Like I said, I'm a novice and I'm just finding out how much I don't know. Last year I managed 2.2% on my investments (ETFs and index funds) which is still way better than interest on savings. As our mortgage will have an interest rate of about 2.3% I'm finding it difficult to suppress the urge to throw all surplus money at the mortgage. My spreadsheet tells me that we will be paying the bank over 100k in interest and that makes me slightly nauseous.

Imma

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Re: Mustachian People Problems (just for fun)
« Reply #4656 on: January 28, 2018, 03:04:29 PM »
My MPP:

We have saved enough to buy our first house without additional loans, BUT now have to start saving all over again to FIRE. Break out the tiny violins, especially as saving will be faster with property than with the cheap house we rented. (Counting repayments of the principal as saving and only the interest part as an expense)
This makes no sense to me. What are you trying to say in the last sentence? Sounds like you might be shooting yourself in the foot. Where is @boarder42 when you need him...? Car42, where are you?

It makes sense. So if they were paying 2k to rent. And now pay 1500 to mortgage and 400 of that is principal. Previously the whole 2k was going out the door now they can say they are saving 900 more a month if you count house principal paydown as savings. That being said. Please don't party your mortgage down faster than the term bc investing will put you ahead of extra principal paydown

Thanks for your comments! As a first time home-owner and a novice to investing this is all very confusing. I'm sorry if I shared my confusion with you.
What I meant to say is that - like boarder42 said - I considered our rent to be money thrown out the window, whereas paying down the principal of our mortgage will be an accumulation of net worth. The interest of the mortgage is in my eyes money thrown at the bank. However, I have learned yesterday that it is better not to count property as part of the amount needed to FIRE, that it should only be (relatively) easily accessible funds. So you can basically ignore my previous post, sorry guys!

To further explain: I live in Europe and somehow I don't 'get' the 7% average on our investments. Maybe that is because I'm too conservative, and has nothing to do with geographical location and a difference in tax systems. Like I said, I'm a novice and I'm just finding out how much I don't know. Last year I managed 2.2% on my investments (ETFs and index funds) which is still way better than interest on savings. As our mortgage will have an interest rate of about 2.3% I'm finding it difficult to suppress the urge to throw all surplus money at the mortgage. My spreadsheet tells me that we will be paying the bank over 100k in interest and that makes me slightly nauseous.

Hi, fellow Dutchie! :) For tax purposes, I always subtract the approx. 1,5% vermogensrendementheffing (tax) from the rate of safe return (so, 4% - 1,5% = 2,5% ). This is a fairly conservative estimate, which means you need to have 40 x yearly earnings to be able to FIRE. In reality, taxes will probably be slightly lower but it's difficult to be very precise.

I think 2,2% on your investments over 2017 is rather low though. I think I got around 7% on average, and that's because I'm conservative and keep 25% of my stash in bonds (obligaties) rather than stocks. I invest through Meesman. Just because you're in this country, doesn't mean your returns should be any lower than anyone else's (if you're investing in global funds). What makes FIRE more difficult in our country is that wealth is taxed year after year and our after-tax incomes are much lower. I see a lot of fairly young people making more than $100k on here, that seems to be much easier than making €85k in our country. Of course there are a disproportionate amount of high earners in STEM jobs around, but I know lots of those in my private life and they don't make €85k in their 20s. Of course, we don't have to deal with high health care costs and massive student loans, so I'm not complaining.

LeRainDrop

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Re: Mustachian People Problems (just for fun)
« Reply #4657 on: January 28, 2018, 03:40:35 PM »
I finally have one: yesterday I forgot some coupons when I went grocery shopping. I didn't realize until I had been walking around with frozen stuff in my cart for a while and it seemed like an asshole move to put it all back, so I wasted $10 plus the time I spent printing the coupons and was mad at myself the entire day.

Not all is lost! Next time you go to the grocery store, bring your coupons and your receipt with you, and then go to the customer service desk. Chances are good that they will process your coupons and give you the money back (or at least a store credit/gift card). I've done that several times :-)

pbkmaine

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Re: Mustachian People Problems (just for fun)
« Reply #4658 on: January 28, 2018, 05:02:14 PM »
My MPP:

We have saved enough to buy our first house without additional loans, BUT now have to start saving all over again to FIRE. Break out the tiny violins, especially as saving will be faster with property than with the cheap house we rented. (Counting repayments of the principal as saving and only the interest part as an expense)
This makes no sense to me. What are you trying to say in the last sentence? Sounds like you might be shooting yourself in the foot. Where is @boarder42 when you need him...? Car42, where are you?

It makes sense. So if they were paying 2k to rent. And now pay 1500 to mortgage and 400 of that is principal. Previously the whole 2k was going out the door now they can say they are saving 900 more a month if you count house principal paydown as savings. That being said. Please don't party your mortgage down faster than the term bc investing will put you ahead of extra principal paydown

Thanks for your comments! As a first time home-owner and a novice to investing this is all very confusing. I'm sorry if I shared my confusion with you.
What I meant to say is that - like boarder42 said - I considered our rent to be money thrown out the window, whereas paying down the principal of our mortgage will be an accumulation of net worth. The interest of the mortgage is in my eyes money thrown at the bank. However, I have learned yesterday that it is better not to count property as part of the amount needed to FIRE, that it should only be (relatively) easily accessible funds. So you can basically ignore my previous post, sorry guys!

To further explain: I live in Europe and somehow I don't 'get' the 7% average on our investments. Maybe that is because I'm too conservative, and has nothing to do with geographical location and a difference in tax systems. Like I said, I'm a novice and I'm just finding out how much I don't know. Last year I managed 2.2% on my investments (ETFs and index funds) which is still way better than interest on savings. As our mortgage will have an interest rate of about 2.3% I'm finding it difficult to suppress the urge to throw all surplus money at the mortgage. My spreadsheet tells me that we will be paying the bank over 100k in interest and that makes me slightly nauseous.

Hi, fellow Dutchie! :) For tax purposes, I always subtract the approx. 1,5% vermogensrendementheffing (tax) from the rate of safe return (so, 4% - 1,5% = 2,5% ). This is a fairly conservative estimate, which means you need to have 40 x yearly earnings to be able to FIRE. In reality, taxes will probably be slightly lower but it's difficult to be very precise.

I think 2,2% on your investments over 2017 is rather low though. I think I got around 7% on average, and that's because I'm conservative and keep 25% of my stash in bonds (obligaties) rather than stocks. I invest through Meesman. Just because you're in this country, doesn't mean your returns should be any lower than anyone else's (if you're investing in global funds). What makes FIRE more difficult in our country is that wealth is taxed year after year and our after-tax incomes are much lower. I see a lot of fairly young people making more than $100k on here, that seems to be much easier than making €85k in our country. Of course there are a disproportionate amount of high earners in STEM jobs around, but I know lots of those in my private life and they don't make €85k in their 20s. Of course, we don't have to deal with high health care costs and massive student loans, so I'm not complaining.

“Vermogensrendementheffing” is my new favorite word.

Freckles

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Re: Mustachian People Problems (just for fun)
« Reply #4659 on: January 28, 2018, 07:31:53 PM »
I like how in parenthesis it's just "tax." From about 400 letters to 3. :D

TomTX

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Re: Mustachian People Problems (just for fun)
« Reply #4660 on: January 28, 2018, 07:47:05 PM »
I like how in parenthesis it's just "tax." From about 400 letters to 3. :D

I presumed that the rest of it is just cussing about the tax in Flemish. It ends in "effing" after all.

fuzzy math

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Re: Mustachian People Problems (just for fun)
« Reply #4661 on: January 28, 2018, 08:16:29 PM »
Pressure cooking black beans and the instant pot is squeaking like there's something wrong with the seal. Had to abort the cooking process and now they're going to be messed up. Will try to salvage and recook but ugh if they're not quite right its going to be so difficult to throw them away.

NevermindScrooge

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Re: Mustachian People Problems (just for fun)
« Reply #4662 on: January 29, 2018, 12:17:12 AM »
My MPP:

We have saved enough to buy our first house without additional loans, BUT now have to start saving all over again to FIRE. Break out the tiny violins, especially as saving will be faster with property than with the cheap house we rented. (Counting repayments of the principal as saving and only the interest part as an expense)
This makes no sense to me. What are you trying to say in the last sentence? Sounds like you might be shooting yourself in the foot. Where is @boarder42 when you need him...? Car42, where are you?

It makes sense. So if they were paying 2k to rent. And now pay 1500 to mortgage and 400 of that is principal. Previously the whole 2k was going out the door now they can say they are saving 900 more a month if you count house principal paydown as savings. That being said. Please don't party your mortgage down faster than the term bc investing will put you ahead of extra principal paydown

Thanks for your comments! As a first time home-owner and a novice to investing this is all very confusing. I'm sorry if I shared my confusion with you.
What I meant to say is that - like boarder42 said - I considered our rent to be money thrown out the window, whereas paying down the principal of our mortgage will be an accumulation of net worth. The interest of the mortgage is in my eyes money thrown at the bank. However, I have learned yesterday that it is better not to count property as part of the amount needed to FIRE, that it should only be (relatively) easily accessible funds. So you can basically ignore my previous post, sorry guys!

To further explain: I live in Europe and somehow I don't 'get' the 7% average on our investments. Maybe that is because I'm too conservative, and has nothing to do with geographical location and a difference in tax systems. Like I said, I'm a novice and I'm just finding out how much I don't know. Last year I managed 2.2% on my investments (ETFs and index funds) which is still way better than interest on savings. As our mortgage will have an interest rate of about 2.3% I'm finding it difficult to suppress the urge to throw all surplus money at the mortgage. My spreadsheet tells me that we will be paying the bank over 100k in interest and that makes me slightly nauseous.

Hi, fellow Dutchie! :) For tax purposes, I always subtract the approx. 1,5% vermogensrendementheffing (tax) from the rate of safe return (so, 4% - 1,5% = 2,5% ). This is a fairly conservative estimate, which means you need to have 40 x yearly earnings to be able to FIRE. In reality, taxes will probably be slightly lower but it's difficult to be very precise.

I think 2,2% on your investments over 2017 is rather low though. I think I got around 7% on average, and that's because I'm conservative and keep 25% of my stash in bonds (obligaties) rather than stocks. I invest through Meesman. Just because you're in this country, doesn't mean your returns should be any lower than anyone else's (if you're investing in global funds). What makes FIRE more difficult in our country is that wealth is taxed year after year and our after-tax incomes are much lower. I see a lot of fairly young people making more than $100k on here, that seems to be much easier than making €85k in our country. Of course there are a disproportionate amount of high earners in STEM jobs around, but I know lots of those in my private life and they don't make €85k in their 20s. Of course, we don't have to deal with high health care costs and massive student loans, so I'm not complaining.

Hi Imma, thanks for your insightful remarks! I'll look into my investments more closely to figure out what caused the low numbers. Perhaps I'm mistaken and read the data wrong. I've calculated the return on investments in a spreadsheet as I invest in two places and wanted to know what the weighted average (gewogen gemiddelde) is. I'm investing through Binck as their fees are quite low and they allow me to invest in Think ETFs which are exempt from the dividend tax, and the other part I invest at my bank, but that is just a small amount so I can test the differences between Binck and the bank. I'm the kind of person that learns through doing, not through reading. So perhaps that is a cause of the low return as the fees of the bank are higher.

Summary of what I've learned: I should be able to get 7% return on global stocks (yay! thanks Imma for that one), I will keep investing my money and not throw it at the mortgage (thank you Border42!).

I have so much to learn! Thanks to everyone for allowing me to say stupid things and correcting me. This place has taught me more about life and money than the rest of the internet combined.

Linda_Norway

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Re: Mustachian People Problems (just for fun)
« Reply #4663 on: January 29, 2018, 12:58:47 AM »
My MPP:

We have saved enough to buy our first house without additional loans, BUT now have to start saving all over again to FIRE. Break out the tiny violins, especially as saving will be faster with property than with the cheap house we rented. (Counting repayments of the principal as saving and only the interest part as an expense)
This makes no sense to me. What are you trying to say in the last sentence? Sounds like you might be shooting yourself in the foot. Where is @boarder42 when you need him...? Car42, where are you?

It makes sense. So if they were paying 2k to rent. And now pay 1500 to mortgage and 400 of that is principal. Previously the whole 2k was going out the door now they can say they are saving 900 more a month if you count house principal paydown as savings. That being said. Please don't party your mortgage down faster than the term bc investing will put you ahead of extra principal paydown

Thanks for your comments! As a first time home-owner and a novice to investing this is all very confusing. I'm sorry if I shared my confusion with you.
What I meant to say is that - like boarder42 said - I considered our rent to be money thrown out the window, whereas paying down the principal of our mortgage will be an accumulation of net worth. The interest of the mortgage is in my eyes money thrown at the bank. However, I have learned yesterday that it is better not to count property as part of the amount needed to FIRE, that it should only be (relatively) easily accessible funds. So you can basically ignore my previous post, sorry guys!

To further explain: I live in Europe and somehow I don't 'get' the 7% average on our investments. Maybe that is because I'm too conservative, and has nothing to do with geographical location and a difference in tax systems. Like I said, I'm a novice and I'm just finding out how much I don't know. Last year I managed 2.2% on my investments (ETFs and index funds) which is still way better than interest on savings. As our mortgage will have an interest rate of about 2.3% I'm finding it difficult to suppress the urge to throw all surplus money at the mortgage. My spreadsheet tells me that we will be paying the bank over 100k in interest and that makes me slightly nauseous.

Hi, fellow Dutchie! :) For tax purposes, I always subtract the approx. 1,5% vermogensrendementheffing (tax) from the rate of safe return (so, 4% - 1,5% = 2,5% ). This is a fairly conservative estimate, which means you need to have 40 x yearly earnings to be able to FIRE. In reality, taxes will probably be slightly lower but it's difficult to be very precise.

I think 2,2% on your investments over 2017 is rather low though. I think I got around 7% on average, and that's because I'm conservative and keep 25% of my stash in bonds (obligaties) rather than stocks. I invest through Meesman. Just because you're in this country, doesn't mean your returns should be any lower than anyone else's (if you're investing in global funds). What makes FIRE more difficult in our country is that wealth is taxed year after year and our after-tax incomes are much lower. I see a lot of fairly young people making more than $100k on here, that seems to be much easier than making €85k in our country. Of course there are a disproportionate amount of high earners in STEM jobs around, but I know lots of those in my private life and they don't make €85k in their 20s. Of course, we don't have to deal with high health care costs and massive student loans, so I'm not complaining.

Hi Imma, thanks for your insightful remarks! I'll look into my investments more closely to figure out what caused the low numbers. Perhaps I'm mistaken and read the data wrong. I've calculated the return on investments in a spreadsheet as I invest in two places and wanted to know what the weighted average (gewogen gemiddelde) is. I'm investing through Binck as their fees are quite low and they allow me to invest in Think ETFs which are exempt from the dividend tax, and the other part I invest at my bank, but that is just a small amount so I can test the differences between Binck and the bank. I'm the kind of person that learns through doing, not through reading. So perhaps that is a cause of the low return as the fees of the bank are higher.

Summary of what I've learned: I should be able to get 7% return on global stocks (yay! thanks Imma for that one), I will keep investing my money and not throw it at the mortgage (thank you Border42!).

I have so much to learn! Thanks to everyone for allowing me to say stupid things and correcting me. This place has taught me more about life and money than the rest of the internet combined.

I have also used the 7% as a brutto gain. In my excel sheet I have taken the 7% and withdrawn the expected inflation (2,5%) from it, which leaves a sum pretty close to 4%. Therefore I use the 4% rule to take money out (which is a parameter, so I can also experiment with 3,5%). So from my stash, I withdraw 4% and then I apply all taxes on all my expected income and tax. Here in Norway I need to pay tax on additional income, and 30% on profits from stock, and 1,5% over my total stash. So all of that is in my Excel sheet and is withdrawn from the 4% withdrawal income and any additional income we might generate.
I am afraid that you need to the same as I did and incorporate all your taxes and rates in your spreadsheet. Make sure to use parameters, because they change the rates frequently.
« Last Edit: January 29, 2018, 02:09:41 AM by Linda_Norway »

LennStar

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Re: Mustachian People Problems (just for fun)
« Reply #4664 on: January 29, 2018, 01:42:29 AM »
Summary of what I've learned: I should be able to get 7% return on global stocks (yay! thanks Imma for that one), I will keep investing my money and not throw it at the mortgage (thank you Border42!).

Do not forget that the 7% is average. In the next crash the prices will probably drop by 50%. Do not panic sell!

Also if you have a varying interest rate on your mortgage, you may think in still doing that first (maybe not today, but in near future like year end). You don't pay taxes on repaying mortgages and currently the stock prices are relativly high.
But as always, it depends on personal situation and what the future will bring. 

UncleX

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Re: Mustachian People Problems (just for fun)
« Reply #4665 on: January 29, 2018, 03:37:34 AM »
For tax purposes, I always subtract the approx. 1,5% vermogensrendementheffing (tax) from the rate of safe return (so, 4% - 1,5% = 2,5% ). This is a fairly conservative estimate, which means you need to have 40 x yearly earnings to be able to FIRE. In reality, taxes will probably be slightly lower but it's difficult to be very precise.

VRH is more like 0.95% (2018/couple/500k euros) or 1.1% (2018/couple/1 million euros), I would not call this slightly below 1.5%. It's really not very difficult to be accurate about VRH if you know how to use Excel a bit. But let's not discuss that here, there is a thread for Dutchies already. Let's meet over there and discuss.
« Last Edit: January 29, 2018, 03:49:12 AM by UncleX »

Imma

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Re: Mustachian People Problems (just for fun)
« Reply #4666 on: January 29, 2018, 04:02:14 AM »
Summary of what I've learned: I should be able to get 7% return on global stocks (yay! thanks Imma for that one), I will keep investing my money and not throw it at the mortgage (thank you Border42!).

Do not forget that the 7% is average. In the next crash the prices will probably drop by 50%. Do not panic sell!

Also if you have a varying interest rate on your mortgage, you may think in still doing that first (maybe not today, but in near future like year end). You don't pay taxes on repaying mortgages and currently the stock prices are relativly high.
But as always, it depends on personal situation and what the future will bring.

Also, at some point because of vermogensrendementheffing ( :D  ) it might be a good idea to pay off your mortgage instead of investing because any wealth tied up in your primary residence is exempt from taxes. This mainly applies during an economic downturn when you're losing money on your investments rather than making money and you have some cash (I don't advocate selling investments when they're low). Because you pay tax regardless, no matter if you make profits or not, you can lower your total wealth by paying off your mortgage or by spending that money on improving your house - I mean the kind of improvements that will end up making your money like solar panels, insulation, a heat pump, or building an extension.

As for the word vermogensrendementheffing, I don't even think there's an English word for such a stupid tax. It's a very complicated wealth tax. As a finance professional it's even hard for me to explain exactly how it works and they've just made it even more complicated so it's supposedly more fair now.

Imma

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Re: Mustachian People Problems (just for fun)
« Reply #4667 on: January 29, 2018, 04:03:01 AM »
For tax purposes, I always subtract the approx. 1,5% vermogensrendementheffing (tax) from the rate of safe return (so, 4% - 1,5% = 2,5% ). This is a fairly conservative estimate, which means you need to have 40 x yearly earnings to be able to FIRE. In reality, taxes will probably be slightly lower but it's difficult to be very precise.

VRH is more like 0.95% (2018/couple/500k euros) or 1.1% (2018/couple/1 million euros), I would not call this slightly below 1.5%. It's really not very difficult to be accurate about VRH if you know how to use Excel a bit. But let's not discuss that here, there is a thread for Dutchies already. Let's meet over there and discuss.

Great idea :)

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Re: Mustachian People Problems (just for fun)
« Reply #4668 on: January 29, 2018, 05:19:55 AM »
MPP of the day:

Closing on a profitable house sale today (Moved from HCOL to L/M COL), and walking away with more money than most people my age would ever dream of, let alone people older than me.

Can't brag about it to anyone in real life :P...must keep the illusion that I have no money so people don't expect me to live a fancy pants life!!

Congratulations! I've enjoyed your posts about your choice to stay with family while looking for the right place, so please keep us informed about how it goes with settling in. Now go celebrate by programming your new home's thermostat to a sensible mustachian temperature and then warm yourself with a dance of joy in each room in your new place!

@Sun Hat you get me :D.

barbaz

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Mustachian People Problems (just for fun)
« Reply #4669 on: January 29, 2018, 07:46:34 AM »
As for the word vermogensrendementheffing, I don't even think there's an English word for such a stupid tax. It's a very complicated wealth tax. As a finance professional it's even hard for me to explain exactly how it works and they've just made it even more complicated so it's supposedly more fair now.
Germany’s Kapitalertragsteuer also was reformed this year to make it fairer, but it’s an incomprehensible mess at this point. I don’t even know yet if I will be paying more or less than before.

Edit: my MPP: I can’t even ask or discuss this tax with others because no one I know has capital gains above the tax exemption threshold.
« Last Edit: January 29, 2018, 07:51:28 AM by barbaz »

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Re: Mustachian People Problems (just for fun)
« Reply #4670 on: January 29, 2018, 12:01:23 PM »
Norwegian "formueskatt" is at .85% for net property above 1.48 mill NOK, but your house is counted at 25 % of its real value. Most people have enough in debt to balance out the taxable funds. Pension funds don't count, rental property and stocks/funds only count as 90% of real value.

jengod

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Re: Mustachian People Problems (just for fun)
« Reply #4671 on: January 29, 2018, 01:14:29 PM »
We are doing so well financially that it's increasingly hard to deny ourselves some of the finer things.

We recently did a slight upgrade to the kitchen (new Formica countertops to replace cracked tile, new deeper sink without leaking faucet, new dishwasher) and we picked out one of the most expensive models of dishwasher ($800 v $300).

I found a vintage Louis Vuitton bag at a thrift store for $25 and when the well-used strap finally broke, I splurged on getting it completely refurbished by LV.

After years of hacking a blade coffee grinder to grind coffee beans for my preferred French press (which requires a rough grind), I recently splurged on a burr grinder. I will continue using the blade grinder for spices and flaxseed.

We can afford grass-fed butter (FYI, it's cheaper at TJ's than at Sprouts).

We can afford to travel more than we used to.

As much as these are modest to large outlays of cash, they are tiny proportions of our overall net worth, or even our annual increases in net worth.

Balancing hedonism and stoicism during our time on earth is a wild challenge. That is all.

cosine88

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Re: Mustachian People Problems (just for fun)
« Reply #4672 on: January 29, 2018, 09:48:01 PM »
Got a co-signer to help me get a loan for my home, but I make the payments by renting out the other rooms. "House Hacking".

Just filed taxes. Turbotax says my debt-to-income ratio is "high" at 97%.

marielle

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Re: Mustachian People Problems (just for fun)
« Reply #4673 on: January 30, 2018, 06:10:57 AM »
Just filed taxes. Turbotax says my debt-to-income ratio is "high" at 97%.

I hope you mean income-to-debt...

Wile E. Coyote

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Re: Mustachian People Problems (just for fun)
« Reply #4674 on: January 30, 2018, 06:46:55 AM »
Just filed taxes. Turbotax says my debt-to-income ratio is "high" at 97%.

I hope you mean income-to-debt...

That would be worse, wouldn’t it?

CptCool

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Re: Mustachian People Problems (just for fun)
« Reply #4675 on: January 30, 2018, 08:35:35 AM »
Just filed taxes. Turbotax says my debt-to-income ratio is "high" at 97%.

I hope you mean income-to-debt...

Think of a mortgage. If someone makes 100k/year and have a mortgage balance of 97k and that's their only debt, that's pretty darn good

RWD

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Re: Mustachian People Problems (just for fun)
« Reply #4676 on: January 30, 2018, 08:38:32 AM »
Just filed taxes. Turbotax says my debt-to-income ratio is "high" at 97%.

I hope you mean income-to-debt...

Think of a mortgage. If someone makes 100k/year and have a mortgage balance of 97k and that's their only debt, that's pretty darn good

Isn't debt-to-income usually debt payments, not total debt? So for someone making $100k/year 97% debt-to-income would be more like a $1.7 million mortgage with payments of $8k/month.

CptCool

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Re: Mustachian People Problems (just for fun)
« Reply #4677 on: January 30, 2018, 08:41:15 AM »
Just filed taxes. Turbotax says my debt-to-income ratio is "high" at 97%.

I hope you mean income-to-debt...

Think of a mortgage. If someone makes 100k/year and have a mortgage balance of 97k and that's their only debt, that's pretty darn good

Isn't debt-to-income usually debt payments, not total debt? So for someone making $100k/year 97% debt-to-income would be more like a $1.7 million mortgage with payments of $8k/month.

Yes that's true - it is the amount of debt payments. I stand corrected.

cosine88

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Re: Mustachian People Problems (just for fun)
« Reply #4678 on: January 30, 2018, 11:13:38 AM »
Just filed taxes. Turbotax says my debt-to-income ratio is "high" at 97%.

I hope you mean income-to-debt...

Think of a mortgage. If someone makes 100k/year and have a mortgage balance of 97k and that's their only debt, that's pretty darn good

Isn't debt-to-income usually debt payments, not total debt? So for someone making $100k/year 97% debt-to-income would be more like a $1.7 million mortgage with payments of $8k/month.

Yes that's true - it is the amount of debt payments. I stand corrected.

Correct. Income(from my job) was only 2,965/month, my PITI payment is 2,877/month. I believe that comes out to 97% debt to income.

I am renting 3 rooms for $2,250, so my share of the PITI is $627, which is less than when I was renting($850/month), although I still have maintenance and capex.

Unless I am wrong, I don't have to declare income from renting rooms at my primary residence.

marielle

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Re: Mustachian People Problems (just for fun)
« Reply #4679 on: January 30, 2018, 11:25:43 AM »
Just filed taxes. Turbotax says my debt-to-income ratio is "high" at 97%.

I hope you mean income-to-debt...

Think of a mortgage. If someone makes 100k/year and have a mortgage balance of 97k and that's their only debt, that's pretty darn good

Isn't debt-to-income usually debt payments, not total debt? So for someone making $100k/year 97% debt-to-income would be more like a $1.7 million mortgage with payments of $8k/month.

Yes that's true - it is the amount of debt payments. I stand corrected.

Correct. Income(from my job) was only 2,965/month, my PITI payment is 2,877/month. I believe that comes out to 97% debt to income.

I am renting 3 rooms for $2,250, so my share of the PITI is $627, which is less than when I was renting($850/month), although I still have maintenance and capex.

Unless I am wrong, I don't have to declare income from renting rooms at my primary residence.

Don't quote me on it, but when I did research on this concerning Airbnb I came to the conclusion that you have to declare the income if it's more than 14 days a year. However, you can deduct that portion of your home. If you're renting out three rooms that make up 50% of the house, you can deduct 50% of your mortgage.

BTDretire

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Re: Mustachian People Problems (just for fun)
« Reply #4680 on: January 30, 2018, 12:42:34 PM »
That reminds me that I missed out on hundreds in class action settlements for LCD panels and Harbor Freight.  Don't be like me, check a site like http://www.classactionrebates.com/ every once in a while.  I often find settlements that I'm legitimately a part of but wasn't notified

Probably not this one.
http://www.classactionrebates.com/settlements/gang/

jordanread

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Re: Mustachian People Problems (just for fun)
« Reply #4681 on: January 30, 2018, 12:54:30 PM »
That reminds me that I missed out on hundreds in class action settlements for LCD panels and Harbor Freight.  Don't be like me, check a site like http://www.classactionrebates.com/ every once in a while.  I often find settlements that I'm legitimately a part of but wasn't notified

Probably not this one.
http://www.classactionrebates.com/settlements/gang/

On the plus side, the injection can be removed from your record. Records have a lot more stuff these days, apparently.

NoraLenderbee

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Re: Mustachian People Problems (just for fun)
« Reply #4682 on: January 30, 2018, 02:56:04 PM »


Unless I am wrong, I don't have to declare income from renting rooms at my primary residence.
.

Lolwut? You certainly do have to declare the rent as income. Legally, you are a landlord, even if you live there too.

https://www.nolo.com/legal-encyclopedia/tax-issues-when-renting-out-room-your-house.html

See IRS pub 527

Ladychips

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Re: Mustachian People Problems (just for fun)
« Reply #4683 on: January 30, 2018, 03:55:03 PM »
I want to post in my 'race to' thread (I might have reached the goal) but won't login to my accounts to check balances because I'm in a hotel.  I'm scared of hotel wireless security (or lack thereof).  I have to wait until tomorrow when I'm home.  :(

Cherry Lane

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Re: Mustachian People Problems (just for fun)
« Reply #4684 on: January 30, 2018, 04:59:42 PM »
I want to post in my 'race to' thread (I might have reached the goal) but won't login to my accounts to check balances because I'm in a hotel.  I'm scared of hotel wireless security (or lack thereof).  I have to wait until tomorrow when I'm home.  :(

Unless you had a big deposit this week, markets alone likely won't have gotten you to your goal (if you weren't there on Friday). 

LeRainDrop

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Re: Mustachian People Problems (just for fun)
« Reply #4685 on: January 30, 2018, 05:19:39 PM »
I hate having to wait until mid-February to receive my Vanguard brokerage account tax forms.  I just want to finish my tax returns and be done with them already!

dragoncar

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Re: Mustachian People Problems (just for fun)
« Reply #4686 on: January 30, 2018, 05:23:31 PM »
That reminds me that I missed out on hundreds in class action settlements for LCD panels and Harbor Freight.  Don't be like me, check a site like http://www.classactionrebates.com/ every once in a while.  I often find settlements that I'm legitimately a part of but wasn't notified

Probably not this one.
http://www.classactionrebates.com/settlements/gang/

On the plus side, the injection can be removed from your record. Records have a lot more stuff these days, apparently.

LOL, I guess I should join a gang

Ladychips

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Re: Mustachian People Problems (just for fun)
« Reply #4687 on: January 30, 2018, 08:35:20 PM »
I want to post in my 'race to' thread (I might have reached the goal) but won't login to my accounts to check balances because I'm in a hotel.  I'm scared of hotel wireless security (or lack thereof).  I have to wait until tomorrow when I'm home.  :(

Unless you had a big deposit this week, markets alone likely won't have gotten you to your goal (if you weren't there on Friday).

I was there on Friday...and my husband and I both get paid (make our retirement contributions) on the last working day of the month.  So I think I'm there...but can't know for sure!  Definitely a MPP.

Dollar Slice

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Re: Mustachian People Problems (just for fun)
« Reply #4688 on: January 31, 2018, 01:41:46 PM »
MPP: Angsting over whether I should put some of my IRA money into an extended market fund to complement the S&P 500 fund I have in my 401(k). There's no good total market fund in my 401(k) so I settled for VFIAX. But if I buy it now in the correct ratio I won't have the minimum needed for admiral shares. And 100% of my buying is in the 401(k) right now and I'd have to sell something in my IRA to buy VEXAX to balance it and then I'll be unbalanced again because I sold something and... and... argh.

These simple three-fund portfolios are a lot harder to rebalance when you have four accounts to balance money between (401k, tIRA, Roth IRA, taxable).

kaypinkHH

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Re: Mustachian People Problems (just for fun)
« Reply #4689 on: January 31, 2018, 01:50:32 PM »
MPP of the day: Got my big giant house sale cheque, went to update a race from X to X forum thread. Was $742 short of the goal. Feel all sad now.


Cookie78

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Re: Mustachian People Problems (just for fun)
« Reply #4690 on: January 31, 2018, 02:09:03 PM »
MPP of the day: Got my big giant house sale cheque, went to update a race from X to X forum thread. Was $742 short of the goal. Feel all sad now.

:(

My condolences.

chaskavitch

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Re: Mustachian People Problems (just for fun)
« Reply #4691 on: January 31, 2018, 03:35:10 PM »
MPP: Angsting over whether I should put some of my IRA money into an extended market fund to complement the S&P 500 fund I have in my 401(k). There's no good total market fund in my 401(k) so I settled for VFIAX. But if I buy it now in the correct ratio I won't have the minimum needed for admiral shares. And 100% of my buying is in the 401(k) right now and I'd have to sell something in my IRA to buy VEXAX to balance it and then I'll be unbalanced again because I sold something and... and... argh.

These simple three-fund portfolios are a lot harder to rebalance when you have four accounts to balance money between (401k, tIRA, Roth IRA, taxable).

I feel ya.  I just increased my 401k contributions by a lot, but my 401k is where I have my bonds and international index funds, because they're SUPER low fee.  Everything in my Roth IRA/IRA is in VTSAX, but now they're going to increase so disproportionately I'll have to rebalance way more often :(

Jakejake

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Re: Mustachian People Problems (just for fun)
« Reply #4692 on: January 31, 2018, 04:13:43 PM »
My husband's MPP: He found out if he works 30 years, he'll get a signed letter from Trump. But he's retiring in two months with 29 years and 3 months of service.

We aren't Trump fans (we were bernie people), but he wanted the letter as a weird joke thing. Stupid early retirement.

PhrugalPhan

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Re: Mustachian People Problems (just for fun)
« Reply #4693 on: January 31, 2018, 06:53:46 PM »
My husband's MPP: He found out if he works 30 years, he'll get a signed letter from Trump. But he's retiring in two months with 29 years and 3 months of service.

We aren't Trump fans (we were bernie people), but he wanted the letter as a weird joke thing. Stupid early retirement.
Is this a Federal Government thing?  Just asking as my GF will have 30 years with them at the end of the year and will retire then.

Jakejake

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Re: Mustachian People Problems (just for fun)
« Reply #4694 on: January 31, 2018, 07:02:12 PM »
Is this a Federal Government thing?  Just asking as my GF will have 30 years with them at the end of the year and will retire then.
Yes - he's a Defense Dept civilian.

Lews Therin

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Re: Mustachian People Problems (just for fun)
« Reply #4695 on: February 01, 2018, 07:38:15 PM »
One of the people I worked with has a signed paper by the canadian prime minister for when he was recruited.... and his end of service paperwork was signed by the new one last year.... So he has 42 years of service, and two signatures from Father and Son, while they each were in charge of the country.

That's impressive timing.

Greenback Reproduction Specialist

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Re: Mustachian People Problems (just for fun)
« Reply #4696 on: February 02, 2018, 07:40:44 AM »
Putting up with buzzing light bulb ballasts, its like the humming of taos new mexico.

merula

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Re: Mustachian People Problems (just for fun)
« Reply #4697 on: February 02, 2018, 08:50:14 AM »
MPP: I have a very low-interest loan at 0.9% that will be paid off this year. For the last 6 months, every time I see the balance I'm like "I should just pay that off and save on the interest!", and every single time I have to remind myself that I'm earning more in my savings account than I'm paying.

I've probably had this internal debate a dozen times. So much thought power wasted!

shelivesthedream

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Re: Mustachian People Problems (just for fun)
« Reply #4698 on: February 02, 2018, 12:42:00 PM »
You know the protocols around reserving books at the library and requesting that new ones be bought better than some of the librarians do, and have to awkwardly decide whether or not to explain it to them when they are unsure.

marielle

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Re: Mustachian People Problems (just for fun)
« Reply #4699 on: February 02, 2018, 01:53:49 PM »
So I thought my company was going to get a 401k in March. Nope. We're getting an HSA instead. I am probably the only person upset and probably the only one wanting to tax shelter more than $3400...

Better than nothing I guess...and I can still contribute to the 2017 HSA I would assume. Problem is that I already filed my taxes so now I have to do an amended return. ugh!

Job hunting is looking a lot sweeter now.