Author Topic: Overheard at Work  (Read 8741297 times)

BlueHouse

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Re: Overheard at Work
« Reply #6300 on: January 11, 2015, 05:45:26 PM »
This company will continue to do amazing.  I promise. 

You must not have lived through previous fads.  :)
I have my mom's charm bracelet from when she was a girl. 
When I was in HS, charm bracelets were hugely popular.
These are just another collector item.  In 5 years, they will be just as valuable as beanie babies and cabbage patch dolls.  I promise. 

Primm

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Re: Overheard at Work
« Reply #6301 on: January 11, 2015, 05:53:05 PM »
A coworker told me I should buy a sports car, because it would make me happier.  I couldn't help laughing at him.

Later we were talking about stocks, and he unimpressed that I don't have anything that's up 4000% this year (not that he does either, all his cash flow goes to sports car payments at 8% interest.)  I tried to explain dividends and compounding and tax efficiency, but, he started to zone out.

I have a sports car. It makes me happier. But I have never paid interest on it, that's just stupid.

Fuzzy Buttons

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Re: Overheard at Work
« Reply #6302 on: January 12, 2015, 06:54:51 AM »
I went to one of those places last week. They have $1 beers (which I didn't want early on a Saturday morning) but I didn't think the price was terrible for the big city.

Now I can't get the idea of beer with hair clippings in it out of my head.  Yech.

fantabulous

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Re: Overheard at Work
« Reply #6303 on: January 12, 2015, 08:26:13 AM »
I went to one of those places last week. They have $1 beers (which I didn't want early on a Saturday morning) but I didn't think the price was terrible for the big city.

Now I can't get the idea of beer with hair clippings in it out of my head.  Yech.

Depending on the beer, it would enhance the flavor to swallow the hair clippings.
« Last Edit: January 13, 2015, 01:10:52 PM by fantabulous »

notquitefrugal

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Re: Overheard at Work
« Reply #6304 on: January 13, 2015, 09:49:33 AM »
I went to one of those places last week. They have $1 beers (which I didn't want early on a Saturday morning) but I didn't think the price was terrible for the big city.

Now I can't get the idea of beer with hair clippings in it out of my head.  Yech.

Lol, I thought that as well, but they cover your drink with the cape. Soft drinks were free.

cavewoman

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Re: Overheard at Work
« Reply #6305 on: January 13, 2015, 02:14:26 PM »
Every so often I think we need an "overheard/observed in family".  But I'm not so sure if it would be a good idea... any thoughts?

skunkfunk

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Re: Overheard at Work
« Reply #6306 on: January 13, 2015, 02:18:19 PM »
Every so often I think we need an "overheard/observed in family".  But I'm not so sure if it would be a good idea... any thoughts?

We should change the thread title to "Overheard at *"

MgoSam

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Re: Overheard at Work
« Reply #6307 on: January 13, 2015, 03:07:34 PM »
Later we were talking about stocks, and he unimpressed that I don't have anything that's up 4000% this year (not that he does either, all his cash flow goes to sports car payments at 8% interest.)  I tried to explain dividends and compounding and tax efficiency, but, he started to zone out.

That in a nutshell is a huge reason why many professional athletes are broke. I finally watched the 30 for 30 documentary "Broke," on this and they interviewed a few investment planners that stated that almost none of the athletes would touch mutual funds. They wanted sexy investments like restaurants, and things that would have a 400% investment.

jordanread

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Re: Overheard at Work
« Reply #6308 on: January 13, 2015, 03:26:39 PM »
Every so often I think we need an "overheard/observed in family".  But I'm not so sure if it would be a good idea... any thoughts?

We should change the thread title to "Overheard at *"

I always find it kind of fun to start every post in this thread with "Well, I didn't hear it at work..."

MountainBeard

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Re: Overheard at Work
« Reply #6309 on: January 13, 2015, 04:06:33 PM »
A kitchen remodel is on our list in the next 5 or so years...  My wife showed me a stove she liked that cost $48k; sinking 100k overall is certainly possible if you go high end with a decent size space. 

(And no, we're not getting that stove or the more reasonable one that was only 13k.)

Goldielocks

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Re: Overheard at Work
« Reply #6310 on: January 13, 2015, 04:41:48 PM »
A kitchen remodel is on our list in the next 5 or so years...  My wife showed me a stove she liked that cost $48k; sinking 100k overall is certainly possible if you go high end with a decent size space. 

(And no, we're not getting that stove or the more reasonable one that was only 13k.)

Holy Tallulah!   I have a spendy extravagant kitchen and went for $6k appliances (for all of them).   Top the line Kitchen Aid, but not commercial or custom.  (bought in 2009).   How the heck? 
...

..!...

(..........still gasping like a fish.....)

4alpacas

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Re: Overheard at Work
« Reply #6311 on: January 13, 2015, 05:15:47 PM »
Later we were talking about stocks, and he unimpressed that I don't have anything that's up 4000% this year (not that he does either, all his cash flow goes to sports car payments at 8% interest.)  I tried to explain dividends and compounding and tax efficiency, but, he started to zone out.

That in a nutshell is a huge reason why many professional athletes are broke. I finally watched the 30 for 30 documentary "Broke," on this and they interviewed a few investment planners that stated that almost none of the athletes would touch mutual funds. They wanted sexy investments like restaurants, and things that would have a 400% investment.
I love the 30 for 30 series.  "Broke" is my favorite.  So good!

Apples

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Re: Overheard at Work
« Reply #6312 on: January 13, 2015, 05:44:11 PM »
We're attempting to add direct deposit capabilities to our payroll, and I was discussing it with our employees (8 guys, all h.s. educated but not much if any more).  While talking about their pay just being deposited each week and receiving a paper showing your 401k deduction and taxes paid each week instead, the boss mentioned the possibility of changing to paying biweekly.  One guy says "well the paycheck will be bigger, so the government will take more taxes out, and I'll get less money".  I explained how our payroll systems takes the amount of any one week check, figures out how much this would be over a year, and that same tax rate would be applied to a paycheck over two weeks.  Nope, he's convinced a biweekly paycheck would mean less net pay because the government is evil. Oy.

kpd905

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Re: Overheard at Work
« Reply #6313 on: January 13, 2015, 06:56:36 PM »
A kitchen remodel is on our list in the next 5 or so years...  My wife showed me a stove she liked that cost $48k; sinking 100k overall is certainly possible if you go high end with a decent size space. 

(And no, we're not getting that stove or the more reasonable one that was only 13k.)

I'd be scared if my wife even looked at things like that.  Might want to get rid of the joint checking account.

MountainBeard

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Re: Overheard at Work
« Reply #6314 on: January 13, 2015, 08:44:24 PM »

gimp

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Re: Overheard at Work
« Reply #6315 on: January 13, 2015, 11:09:58 PM »
How much does it cost to get an industrial kitchen stove like you might see at big restaurants?

Paul der Krake

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Re: Overheard at Work
« Reply #6316 on: January 14, 2015, 06:17:31 AM »
How much does it cost to get an industrial kitchen stove like you might see at big restaurants?
Significantly less than sticker price if you buy it at one of the dozen restaurants that goes out of business in your area every year.

boarder42

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Re: Overheard at Work
« Reply #6317 on: January 14, 2015, 06:21:00 AM »
We're attempting to add direct deposit capabilities to our payroll, and I was discussing it with our employees (8 guys, all h.s. educated but not much if any more).  While talking about their pay just being deposited each week and receiving a paper showing your 401k deduction and taxes paid each week instead, the boss mentioned the possibility of changing to paying biweekly.  One guy says "well the paycheck will be bigger, so the government will take more taxes out, and I'll get less money".  I explained how our payroll systems takes the amount of any one week check, figures out how much this would be over a year, and that same tax rate would be applied to a paycheck over two weeks.  Nope, he's convinced a biweekly paycheck would mean less net pay because the government is evil. Oy.

i assume these guys get OT from time to time so thats whats confusing him b/c OT is taxed at a higher rate than standard pay so he doesnt see his paycheck double when he works an extra 40 hours. 

rocksinmyhead

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Re: Overheard at Work
« Reply #6318 on: January 14, 2015, 06:46:51 AM »
We're attempting to add direct deposit capabilities to our payroll, and I was discussing it with our employees (8 guys, all h.s. educated but not much if any more).  While talking about their pay just being deposited each week and receiving a paper showing your 401k deduction and taxes paid each week instead, the boss mentioned the possibility of changing to paying biweekly.  One guy says "well the paycheck will be bigger, so the government will take more taxes out, and I'll get less money".  I explained how our payroll systems takes the amount of any one week check, figures out how much this would be over a year, and that same tax rate would be applied to a paycheck over two weeks.  Nope, he's convinced a biweekly paycheck would mean less net pay because the government is evil. Oy.

i assume these guys get OT from time to time so thats whats confusing him b/c OT is taxed at a higher rate than standard pay so he doesnt see his paycheck double when he works an extra 40 hours.

OT is taxed at a higher rate than standard pay?!? really? I can't think of why this might be unless it pushes you into a higher tax bracket. then again I have no idea what I'm talking about because I don't think I've ever worked a job with OT, but my boyfriend does and I've never heard him say anything about it.

johnny847

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Re: Overheard at Work
« Reply #6319 on: January 14, 2015, 06:47:52 AM »
We're attempting to add direct deposit capabilities to our payroll, and I was discussing it with our employees (8 guys, all h.s. educated but not much if any more).  While talking about their pay just being deposited each week and receiving a paper showing your 401k deduction and taxes paid each week instead, the boss mentioned the possibility of changing to paying biweekly.  One guy says "well the paycheck will be bigger, so the government will take more taxes out, and I'll get less money".  I explained how our payroll systems takes the amount of any one week check, figures out how much this would be over a year, and that same tax rate would be applied to a paycheck over two weeks.  Nope, he's convinced a biweekly paycheck would mean less net pay because the government is evil. Oy.

i assume these guys get OT from time to time so thats whats confusing him b/c OT is taxed at a higher rate than standard pay so he doesnt see his paycheck double when he works an extra 40 hours.
Um no, OT is not taxed at higher than standard rate. It is taxed the same way as normal income. It is withheld at a higher rate, because for every paycheck it withholds as if you will earn that much money for every pay cycle in the year.
People really need to separate tax withholding from actual tax liability. They are two complete separate things that do not affect one another (barring the exception of underwithholding can cause you to pay penalties for underpayment of tax, thereby increasing your tax liability. But so long as you don't do that, these are completely unrelated).

----

Not overheard at work, but I go on a group bike ride on Sundays. The group leader mentioned last time he has this great mobile hotspot service for just $40/month! Which he uses for strictly non work purposes (mostly just streaming Pandora to his iPad). He thought it was a steal. I just nodded along, thinking what an idiot. That $40/month is in addition to whatever cell phone plan he has.
« Last Edit: January 14, 2015, 06:50:08 AM by johnny847 »

starbuck

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Re: Overheard at Work
« Reply #6320 on: January 14, 2015, 07:45:39 AM »
My boss told me this morning that she drove into the city to park across the street because it was too cold to walk the ten minutes to our office building from the train station. $23 to park + 50 min driving her SUV here, plus the time and gas it will take her to get home this afternoon in I-93 Boston traffic. Her normal commute on the train is 100% subsidized by our employer.

Temperature was in the teens early this morning. And she could have taken the $2 subway ride to the T station across the street, but she thought it would have been too crowded to go the ONE STOP. Oy!

MgoSam

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Re: Overheard at Work
« Reply #6321 on: January 14, 2015, 08:10:11 AM »

Not overheard at work, but I go on a group bike ride on Sundays. The group leader mentioned last time he has this great mobile hotspot service for just $40/month! Which he uses for strictly non work purposes (mostly just streaming Pandora to his iPad). He thought it was a steal. I just nodded along, thinking what an idiot. That $40/month is in addition to whatever cell phone plan he has.

Your call, but I was paying that much for my hotspot prior to learning about Freedompop. Now I'm saving a ton of money that would otherwise be wasted.

johnny847

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Re: Overheard at Work
« Reply #6322 on: January 14, 2015, 08:28:25 AM »

Not overheard at work, but I go on a group bike ride on Sundays. The group leader mentioned last time he has this great mobile hotspot service for just $40/month! Which he uses for strictly non work purposes (mostly just streaming Pandora to his iPad). He thought it was a steal. I just nodded along, thinking what an idiot. That $40/month is in addition to whatever cell phone plan he has.

Your call, but I was paying that much for my hotspot prior to learning about Freedompop. Now I'm saving a ton of money that would otherwise be wasted.
? I'm saying the dude is wasting money....

Apples

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Re: Overheard at Work
« Reply #6323 on: January 14, 2015, 08:35:02 AM »
We're attempting to add direct deposit capabilities to our payroll, and I was discussing it with our employees (8 guys, all h.s. educated but not much if any more).  While talking about their pay just being deposited each week and receiving a paper showing your 401k deduction and taxes paid each week instead, the boss mentioned the possibility of changing to paying biweekly.  One guy says "well the paycheck will be bigger, so the government will take more taxes out, and I'll get less money".  I explained how our payroll systems takes the amount of any one week check, figures out how much this would be over a year, and that same tax rate would be applied to a paycheck over two weeks.  Nope, he's convinced a biweekly paycheck would mean less net pay because the government is evil. Oy.

i assume these guys get OT from time to time so thats whats confusing him b/c OT is taxed at a higher rate than standard pay so he doesnt see his paycheck double when he works an extra 40 hours.
Um no, OT is not taxed at higher than standard rate. It is taxed the same way as normal income. It is withheld at a higher rate, because for every paycheck it withholds as if you will earn that much money for every pay cycle in the year.
People really need to separate tax withholding from actual tax liability. They are two complete separate things that do not affect one another (barring the exception of underwithholding can cause you to pay penalties for underpayment of tax, thereby increasing your tax liability. But so long as you don't do that, these are completely unrelated).

They don't get OT.  We are a farm; their hours change throughout the year but there's no OT.  They get one check with a bonus in it per year, which does have a higher withholding.  I've been here two years and they've never noticed it.  They all get refund checks in the spring anyway.  And it's possible there's a change from winter 40 hour weeks to summer/fall 55 hour weeks in % withheld.  But going from 1 40 hour paycheck for 1 week to 1 80 hour paycheck for 2 weeks (or 55 to 110 hours) won't change the withholding rate.  Can't convince him of it, at all.  Obama. Evil.  Liars. IRS is the KGB.  Let alone their effective income tax rate is probably 5% or less.

Timmmy

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Re: Overheard at Work
« Reply #6324 on: January 14, 2015, 09:06:09 AM »
We're attempting to add direct deposit capabilities to our payroll, and I was discussing it with our employees (8 guys, all h.s. educated but not much if any more).  While talking about their pay just being deposited each week and receiving a paper showing your 401k deduction and taxes paid each week instead, the boss mentioned the possibility of changing to paying biweekly.  One guy says "well the paycheck will be bigger, so the government will take more taxes out, and I'll get less money".  I explained how our payroll systems takes the amount of any one week check, figures out how much this would be over a year, and that same tax rate would be applied to a paycheck over two weeks.  Nope, he's convinced a biweekly paycheck would mean less net pay because the government is evil. Oy.

i assume these guys get OT from time to time so thats whats confusing him b/c OT is taxed at a higher rate than standard pay so he doesnt see his paycheck double when he works an extra 40 hours.
Um no, OT is not taxed at higher than standard rate. It is taxed the same way as normal income. It is withheld at a higher rate, because for every paycheck it withholds as if you will earn that much money for every pay cycle in the year.
People really need to separate tax withholding from actual tax liability. They are two complete separate things that do not affect one another (barring the exception of underwithholding can cause you to pay penalties for underpayment of tax, thereby increasing your tax liability. But so long as you don't do that, these are completely unrelated).


It saddens me that on this forum there are still people who are not aware how their paychecks are calculated.  Thank you for clarifying.

The amount withheld has NOTHING to do with how much you pay in taxes. 

greenmimama

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Re: Overheard at Work
« Reply #6325 on: January 14, 2015, 10:22:25 AM »
How much does it cost to get an industrial kitchen stove like you might see at big restaurants?
Significantly less than sticker price if you buy it at one of the dozen restaurants that goes out of business in your area every year.

So true, my DH works for a place that picks these items up and resells them, wonderful savings to be had.

jinga nation

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Re: Overheard at Work
« Reply #6326 on: January 14, 2015, 12:49:25 PM »
Not overheard at work, but I go on a group bike ride on Sundays. The group leader mentioned last time he has this great mobile hotspot service for just $40/month! Which he uses for strictly non work purposes (mostly just streaming Pandora to his iPad). He thought it was a steal. I just nodded along, thinking what an idiot. That $40/month is in addition to whatever cell phone plan he has.

Not sure where your cycling group leader lives and what cellular provider he uses, but if he has T-Mobile (US) service, then several streaming music services don't count towards your data cap, including Pandora, Spotify, Google Play Music. Also, Spotify had an offer over holidays for a 3 months Premium ad-free streaming for 99 cents, and you can have 5 devices to your plan. I've tethered an Android tablet to my Android phone, streamed music, and verified it didn't count towards my data bucket.

MgoSam

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Re: Overheard at Work
« Reply #6327 on: January 14, 2015, 01:02:03 PM »

Not overheard at work, but I go on a group bike ride on Sundays. The group leader mentioned last time he has this great mobile hotspot service for just $40/month! Which he uses for strictly non work purposes (mostly just streaming Pandora to his iPad). He thought it was a steal. I just nodded along, thinking what an idiot. That $40/month is in addition to whatever cell phone plan he has.

Your call, but I was paying that much for my hotspot prior to learning about Freedompop. Now I'm saving a ton of money that would otherwise be wasted.
? I'm saying the dude is wasting money....

Yeah, wow even I can't tell what I meant to write.
 I meant to say that I also was spending $40/month for a hotspot from T-Mobile, but then I learned about Freedompop. Do you think your coworker would be willing to listen if you told him about Freedompop? I know I'm saving $20/month and I got my boss to switch as well and he was very thankful for the savings (he's a fairly frugal guy as well).

johnny847

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Re: Overheard at Work
« Reply #6328 on: January 14, 2015, 01:22:18 PM »
Not overheard at work, but I go on a group bike ride on Sundays. The group leader mentioned last time he has this great mobile hotspot service for just $40/month! Which he uses for strictly non work purposes (mostly just streaming Pandora to his iPad). He thought it was a steal. I just nodded along, thinking what an idiot. That $40/month is in addition to whatever cell phone plan he has.

Not sure where your cycling group leader lives and what cellular provider he uses, but if he has T-Mobile (US) service, then several streaming music services don't count towards your data cap, including Pandora, Spotify, Google Play Music. Also, Spotify had an offer over holidays for a 3 months Premium ad-free streaming for 99 cents, and you can have 5 devices to your plan. I've tethered an Android tablet to my Android phone, streamed music, and verified it didn't count towards my data bucket.
It's a verizon hotspot.

Yeah, wow even I can't tell what I meant to write.
 I meant to say that I also was spending $40/month for a hotspot from T-Mobile, but then I learned about Freedompop. Do you think your coworker would be willing to listen if you told him about Freedompop? I know I'm saving $20/month and I got my boss to switch as well and he was very thankful for the savings (he's a fairly frugal guy as well).
Ah gotcha. Possibly. But this is the same guy that wants to get a new car because his five year old one (purchased new) is "too old," though still perfectly functional. I'll bring it up but I don't think he'll care.

Grimm

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Re: Overheard at Work
« Reply #6329 on: January 14, 2015, 01:34:06 PM »
How much does it cost to get an industrial kitchen stove like you might see at big restaurants?

Besides the actual cost of the range, you also need to factor in the increased installation costs, the design hassles, the inspection hassles, and the potential reduction in future resale value.

As an example, here is some info that covers a few of these issues:  http://www.bankrate.com/finance/real-estate/commercial-range-in-home.aspx

LennStar

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Re: Overheard at Work
« Reply #6330 on: January 14, 2015, 02:09:56 PM »
Ah gotcha. Possibly. But this is the same guy that wants to get a new car because his five year old one (purchased new) is "too old," though still perfectly functional. I'll bring it up but I don't think he'll care.
I hope he buys a new house every 5 years, too?
If not ask him why. Perhaps he answers its totally fine. For 10 years :D

notquitefrugal

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Re: Overheard at Work
« Reply #6331 on: January 15, 2015, 07:39:09 AM »
"I went to the car dealer to find out how much I qualify to borrow on a new car."

I bet they get fleeced on the financing.

kathrynd

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Re: Overheard at Work
« Reply #6332 on: January 15, 2015, 07:46:31 AM »
A few weeks ago, some guys from work and I were volunteering at a Habitat for Humanity project. Turns out one of them is a landlord.

Mortgage is $800. He rents out the house for $1000. Property manager fee is $100. So, he says that he makes about $1000 a month after all is said and done...

Before property taxes. Before insurance. Before maintenance and repairs.

I guess you could say that he's probably going to spend $100+ a month for twenty+ years in order to own a home free and clear at the end of that term, but even then, so what? He'll have a thirty year old house that will likely need significant renovations in order to rent out for good money or to live in.

It's not quite as bad as credit card debt or wasteful spending, but this is really not the best you could do as far as investments are concerned.

Oh, I don't know.
We used the equity in our home to fund down payments on rental properties, and retired 6 years later..and live solely on rent.That was 4 years ago when I was 50 and my husband 46.

Don't forget, there are tax deductions, and the rent will rise.
If he's smart he will pay off the mortgage asap, then it is all gravy.

JuSp02

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Re: Overheard at Work
« Reply #6333 on: January 15, 2015, 08:29:41 AM »
An acquaintance just told me that her and her husband have racked up a combined $700,000 in student loans!!!  When a relative gave her a thousand dollars for Christmas gift, she went out and spent it on fancy Tory Burch bags.

Her husband and her are both doctors and their loans are in forebearance while they finish their residency programs.  I have no idea what they are going to do once they enter repayment.

boarder42

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Re: Overheard at Work
« Reply #6334 on: January 15, 2015, 08:59:27 AM »
We're attempting to add direct deposit capabilities to our payroll, and I was discussing it with our employees (8 guys, all h.s. educated but not much if any more).  While talking about their pay just being deposited each week and receiving a paper showing your 401k deduction and taxes paid each week instead, the boss mentioned the possibility of changing to paying biweekly.  One guy says "well the paycheck will be bigger, so the government will take more taxes out, and I'll get less money".  I explained how our payroll systems takes the amount of any one week check, figures out how much this would be over a year, and that same tax rate would be applied to a paycheck over two weeks.  Nope, he's convinced a biweekly paycheck would mean less net pay because the government is evil. Oy.

i assume these guys get OT from time to time so thats whats confusing him b/c OT is taxed at a higher rate than standard pay so he doesnt see his paycheck double when he works an extra 40 hours.
Um no, OT is not taxed at higher than standard rate. It is taxed the same way as normal income. It is withheld at a higher rate, because for every paycheck it withholds as if you will earn that much money for every pay cycle in the year.
People really need to separate tax withholding from actual tax liability. They are two complete separate things that do not affect one another (barring the exception of underwithholding can cause you to pay penalties for underpayment of tax, thereby increasing your tax liability. But so long as you don't do that, these are completely unrelated).

----

Not overheard at work, but I go on a group bike ride on Sundays. The group leader mentioned last time he has this great mobile hotspot service for just $40/month! Which he uses for strictly non work purposes (mostly just streaming Pandora to his iPad). He thought it was a steal. I just nodded along, thinking what an idiot. That $40/month is in addition to whatever cell phone plan he has.

That is what i meant ... with held

netskyblue

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Re: Overheard at Work
« Reply #6335 on: January 15, 2015, 09:08:45 AM »
We're attempting to add direct deposit capabilities to our payroll, and I was discussing it with our employees (8 guys, all h.s. educated but not much if any more).  While talking about their pay just being deposited each week and receiving a paper showing your 401k deduction and taxes paid each week instead, the boss mentioned the possibility of changing to paying biweekly.  One guy says "well the paycheck will be bigger, so the government will take more taxes out, and I'll get less money".  I explained how our payroll systems takes the amount of any one week check, figures out how much this would be over a year, and that same tax rate would be applied to a paycheck over two weeks.  Nope, he's convinced a biweekly paycheck would mean less net pay because the government is evil. Oy.

i assume these guys get OT from time to time so thats whats confusing him b/c OT is taxed at a higher rate than standard pay so he doesnt see his paycheck double when he works an extra 40 hours.
Um no, OT is not taxed at higher than standard rate. It is taxed the same way as normal income. It is withheld at a higher rate, because for every paycheck it withholds as if you will earn that much money for every pay cycle in the year.
People really need to separate tax withholding from actual tax liability. They are two complete separate things that do not affect one another (barring the exception of underwithholding can cause you to pay penalties for underpayment of tax, thereby increasing your tax liability. But so long as you don't do that, these are completely unrelated).


It saddens me that on this forum there are still people who are not aware how their paychecks are calculated.  Thank you for clarifying.

The amount withheld has NOTHING to do with how much you pay in taxes.

Ah, but sadly so many people don't see a tax refund as the government returning money that is already theirs.  They see their paycheck as "their" money, and a tax refund as a free gift.

Which brings to mind all the other people who purposely withhold more than they need to, so that they WILL get a tax refund.  The insanity!

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Re: Overheard at Work
« Reply #6336 on: January 15, 2015, 09:10:19 AM »
That's not insane. That's a savings plan.

Le Barbu

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Re: Overheard at Work
« Reply #6337 on: January 15, 2015, 09:18:24 AM »
I fill a form every year to get lower withholding. I hate big tax refund because I consider it like the gov is borrowing my money at 0% for months. I consider myself more efficient to manage $$ then they are (not a big challenge)

Even with my best efforts, I still got a 5k$ refund last year and expect a 5k$-7k$ this year :/

Le Barbu

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Re: Overheard at Work
« Reply #6338 on: January 15, 2015, 09:23:54 AM »
That's not insane. That's a savings plan.

Usualy, the insanity come from the behavior of considering this "free" money as a gift or fun money and find a way to throw it away as soon as possible. The urge is so strong, sometine the refund deposit is barely in time to repay the big C.C. account of the previous expense.

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Re: Overheard at Work
« Reply #6339 on: January 15, 2015, 10:30:38 AM »
That's not insane. That's a savings plan.
But as Le Barbu says,
I hate big tax refund because I consider it like the gov is borrowing my money at 0% for months. I consider myself more efficient to manage $$ then they are (not a big challenge)

Anybody could just calculate how to get their withholdings right, and then just put it into a savings account themselves and earn interest. Or, if they have debt, they'll get a guaranteed return of the interest rate on the debt.

----

Ah, but sadly so many people don't see a tax refund as the government returning money that is already theirs.  They see their paycheck as "their" money, and a tax refund as a free gift.

Which brings to mind all the other people who purposely withhold more than they need to, so that they WILL get a tax refund.  The insanity!
It infuriates me to no end when stores have "tax refund sales." I want to rip my hair out when I see people falling for this trap.

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Re: Overheard at Work
« Reply #6340 on: January 15, 2015, 10:37:07 AM »

It infuriates me to no end when stores have "tax refund sales." I want to rip my hair out when I see people falling for this trap.

Yeah I hear ya, but for me, it is music to my ears! As a wholesaler, we don't sell much in the first quarter because retailers don't have much demand from their customers (many are tapped out after Christmas), but things perk up around mid-March as customers start collecting their tax returns.

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Re: Overheard at Work
« Reply #6341 on: January 15, 2015, 10:44:53 AM »
An acquaintance just told me that her and her husband have racked up a combined $700,000 in student loans!!!  When a relative gave her a thousand dollars for Christmas gift, she went out and spent it on fancy Tory Burch bags.

Her husband and her are both doctors and their loans are in forebearance while they finish their residency programs.  I have no idea what they are going to do once they enter repayment.

There are non-profit options where they can work for something like 5 or 10 years and have the entire loan forgiven...

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Re: Overheard at Work
« Reply #6342 on: January 15, 2015, 10:49:37 AM »

It infuriates me to no end when stores have "tax refund sales." I want to rip my hair out when I see people falling for this trap.

Yeah I hear ya, but for me, it is music to my ears! As a wholesaler, we don't sell much in the first quarter because retailers don't have much demand from their customers (many are tapped out after Christmas), but things perk up around mid-March as customers start collecting their tax returns.
Haha I guess that's true. There really isn't a big "spending excuse" until then =P

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Re: Overheard at Work
« Reply #6343 on: January 15, 2015, 10:53:34 AM »
An acquaintance just told me that her and her husband have racked up a combined $700,000 in student loans!!!  When a relative gave her a thousand dollars for Christmas gift, she went out and spent it on fancy Tory Burch bags.

Her husband and her are both doctors and their loans are in forebearance while they finish their residency programs.  I have no idea what they are going to do once they enter repayment.

There are non-profit options where they can work for something like 5 or 10 years and have the entire loan forgiven...

Man, imagine having to work for 5-10 years after 7 years of medical school/residency/etc., just to essentially break even (I'm assuming that if they're working for a non-profit, they are earning relatively little and therefore are not building up giant savings on the side).

Contrast that with starting a reasonably high-paying job, or even decent-earning, right out of undergrad and with almost no student loans. You could be RE in 10 years vs. starting at "0" after 17 years.

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Re: Overheard at Work
« Reply #6344 on: January 15, 2015, 11:12:14 AM »
An acquaintance just told me that her and her husband have racked up a combined $700,000 in student loans!!!  When a relative gave her a thousand dollars for Christmas gift, she went out and spent it on fancy Tory Burch bags.

Her husband and her are both doctors and their loans are in forebearance while they finish their residency programs.  I have no idea what they are going to do once they enter repayment.

There are non-profit options where they can work for something like 5 or 10 years and have the entire loan forgiven...

which options are those ? all the non profit options i thought were like 15/20 years. alot of you prime earning years

galliver

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Re: Overheard at Work
« Reply #6345 on: January 15, 2015, 11:22:42 AM »
An acquaintance just told me that her and her husband have racked up a combined $700,000 in student loans!!!  When a relative gave her a thousand dollars for Christmas gift, she went out and spent it on fancy Tory Burch bags.

Her husband and her are both doctors and their loans are in forebearance while they finish their residency programs.  I have no idea what they are going to do once they enter repayment.

There are non-profit options where they can work for something like 5 or 10 years and have the entire loan forgiven...

Man, imagine having to work for 5-10 years after 7 years of medical school/residency/etc., just to essentially break even (I'm assuming that if they're working for a non-profit, they are earning relatively little and therefore are not building up giant savings on the side).

Contrast that with starting a reasonably high-paying job, or even decent-earning, right out of undergrad and with almost no student loans. You could be RE in 10 years vs. starting at "0" after 17 years.

Man, imagine a world without doctors...

I, for one, am really glad some people choose that path in life in spite of the debt required (for most) to manage it.

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Re: Overheard at Work
« Reply #6346 on: January 15, 2015, 01:42:03 PM »
Yesterday coworker 1 was complaining to coworker 2 about the trials and tribulations of trying to buy a townhouse in an age restricted complex with less than 20% down. Apparently, there are few mortgage insurance providers who will insure the loan because of the age restrictions and because the strata (aka HOA) doesn't have enough money in reserve for repairs. Coworker 2 kept asking questions about well, could you do this or that to get around the insurance issue?

Foolishly, I piped up and asked, "Why don't you just put more than 20% down so you don't need mortgage insurance?"

Cue annoyed look from coworker 1 and incredulous look from coworker 2 because he never considered that solution . . .

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Re: Overheard at Work
« Reply #6347 on: January 15, 2015, 02:46:58 PM »
An acquaintance just told me that her and her husband have racked up a combined $700,000 in student loans!!!  When a relative gave her a thousand dollars for Christmas gift, she went out and spent it on fancy Tory Burch bags.

Her husband and her are both doctors and their loans are in forebearance while they finish their residency programs.  I have no idea what they are going to do once they enter repayment.

There are non-profit options where they can work for something like 5 or 10 years and have the entire loan forgiven...

Man, imagine having to work for 5-10 years after 7 years of medical school/residency/etc., just to essentially break even (I'm assuming that if they're working for a non-profit, they are earning relatively little and therefore are not building up giant savings on the side).

Contrast that with starting a reasonably high-paying job, or even decent-earning, right out of undergrad and with almost no student loans. You could be RE in 10 years vs. starting at "0" after 17 years.

Man, imagine a world without doctors...

I, for one, am really glad some people choose that path in life in spite of the debt required (for most) to manage it.

They can be fine, though.  Imagine you have 700k debt.  Imagine you bring in $400k/year.  As a mustachian, you could still retire well in 5-10 years.  The problem these doctors have is a spending problem, not a debt problem.

Of course, as a mustachian, you wouldn't have had 700k debt to begin with.  I'm sure a LARGE chunk of that is attributable to inflated living expenses, not merely tuition or basic living expenses.

galliver

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Re: Overheard at Work
« Reply #6348 on: January 15, 2015, 03:57:48 PM »
[...]

They can be fine, though.  Imagine you have 700k debt.  Imagine you bring in $400k/year.  As a mustachian, you could still retire well in 5-10 years.  The problem these doctors have is a spending problem, not a debt problem.

Of course, as a mustachian, you wouldn't have had 700k debt to begin with.  I'm sure a LARGE chunk of that is attributable to inflated living expenses, not merely tuition or basic living expenses.

Oh I don't doubt they'll be fine.

According to a quick search (leading to AAMC website),
Quote
  •     The median amount of debt for the class of 2014: $180,000*
        The median 4-year cost of attendance for the class of 2015: $226,447* (public school) and $298,538* (private school)
        The 2013 median starting salary for Internal Medicine (first year post residency): $180,000**

Add some undergrad loans to the private school cost of attendance, and you can get $350k/person easily. (I believe average undergrad debt is around $20-25k right now, but a future doctor probably went to a 4-year school, so might be more like $50-100k.)

But none of this means it's a bad idea to become a doctor; we need doctors! And I for one am glad that people who don't have $350k in family money go into that career field as well, in spite of the challenges! What I think really sucks is the people who get through 2 years of med school, realize they hate it, and yet feel they have to stick it out in the profession for years anyway because how else are they going to pay their loans off?

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Re: Overheard at Work
« Reply #6349 on: January 15, 2015, 04:13:19 PM »

It infuriates me to no end when stores have "tax refund sales." I want to rip my hair out when I see people falling for this trap.

Yeah I hear ya, but for me, it is music to my ears! As a wholesaler, we don't sell much in the first quarter because retailers don't have much demand from their customers (many are tapped out after Christmas), but things perk up around mid-March as customers start collecting their tax returns.
I thought Valentine's day in February was the start of spending season after Christmas