Overheard at Work

[MikeBear]

Anti-mustachian: bunch of coworkers talking about tax returns being large so they can save it (some of them anyways, others will spend it).

Anti-anti-mustachian: one coworker will reduce his withholding and up his automatic draw to savings proportionally so he gets little/no refund this year. He's also going to buy a ??-plex near where he used to live (upstate NY) while working remotely in the spring. He's using mint and working on cutting back expenses too. He'll do just fine :).

You can go as high as a 4-plex, with a conventional mortgage. Any more units, and you must go with a commercial loan.

[lemanfan]

OK, I get one.  Coworker and me discuss that we're both planning vacations in the US this year:

CW: So, how does your planning go? 
Me:  Well, still searching for a good deal on a hotel that seems not to run down
CW: Wow, we're different.  I'm trying to figure out how expensive hotel I can afford!

At least she consider what she can afford... :)

[LennStar]

One of my co-workers who lives in a fairly new 5000+ sq. ft. house was telling me that he and his wife will only be able to use half of the house because of some work that needs to be done downstairs. The furniture has been moved upstairs into the media room and now they must live constrained in a mere 2500 sq ft or so. He describes it as a sort of hellish situation that has been visited upon them. How will they manage to survive in less than 5000 sq ft?

A good friend just bought a ~4,200 sf home and they were bemoaning all of the new furniture they would need to fill the giant space. And it IS giant! they have 3 children.

On the Anti-Anti-mustachian side my best friend is raising his 5 children in a 1,200 sf home.  The giant home trend is truly baffling to me.

If you think 4200 sf is gigantic, just compare it to one of Mitt Romeys houses! (hint: nearly as big as the ground floor)
http://www.washingtonpost.com/blogs/the-fix/wp/2015/01/28/how-big-is-mitt-romneys-california-house-here-compare-it-to-yours/

[Pooperman]

Anti-mustachian: bunch of coworkers talking about tax returns being large so they can save it (some of them anyways, others will spend it).

Anti-anti-mustachian: one coworker will reduce his withholding and up his automatic draw to savings proportionally so he gets little/no refund this year. He's also going to buy a ??-plex near where he used to live (upstate NY) while working remotely in the spring. He's using mint and working on cutting back expenses too. He'll do just fine :).

You can go as high as a 4-plex, with a conventional mortgage. Any more units, and you must go with a commercial loan.

This I know (and he does as well). I'm just not sure what deal he'll end up finding. He intends to live in one of the units while renting out the rest. Not mustachian by any stretch, but he's very much on the FIRE path (with a lower income than mine!)

[Le Barbu]

Anti-mustachian: bunch of coworkers talking about tax returns being large so they can save it (some of them anyways, others will spend it).

Anti-anti-mustachian: one coworker will reduce his withholding and up his automatic draw to savings proportionally so he gets little/no refund this year. He's also going to buy a ??-plex near where he used to live (upstate NY) while working remotely in the spring. He's using mint and working on cutting back expenses too. He'll do just fine :).

You can go as high as a 4-plex, with a conventional mortgage. Any more units, and you must go with a commercial loan.

This I know (and he does as well). I'm just not sure what deal he'll end up finding. He intends to live in one of the units while renting out the rest. Not mustachian by any stretch, but he's very much on the FIRE path (with a lower income than mine!)

Not Mustachian by any stretch? You mean, other than all you told us about him. From what I read, he looks to know a lot about managing money! And living in one of the unit IS badass since most intend to live the big life outside of their plex

[RunHappy]

Saw this on FB:  Husband bought wife one of those fancy, wearable exercise gadgets for Christmas (about $120).  Forgot he bought it and just found it a week ago, did an LOL and and "OOPSIE".

I had to just shake my head because they are constantly running out of money every month and don't know why.  I couldn't imagine buying something that cost that much and then just forgetting about it.

I wanted to respond "THIS IS WHY YOU ARE ALWAYS OUT OF MONEY", but instead just checked my Net Worth and my FI goal.

[pancakes]

One of my co-workers is always complaining about how she thinks her husband has a shopping addiction because he is always buying things just because they are on sale.

She confided in me a little while ago the extent of their credit card debt and then today I overheard her showing people her new dining chairs, they were a bargain at wholesale price - just $150 each, so how could she pass up a set of 8?

[zephyr911]

Back on OT:

My DH works with a guy going through a divorce, last year he made over $200,000 and he owns a busy construction company flipping houses and selling them and his crew is kept busy on other projects, like a new roof or inside work.

He is quitting and has to quit by a specific date so he can take a loan out on his 401k to pay for his divorce, now his divorce lawyer is quite expensive, but he has nothing to show for his excellent income, nothing, last year was really good to him but he has made well over 100k for at least 4 years, they have no children. It is just so sad that he hasn't saved anything, he told my DH that if they liquidated everything they could both just walk away, they have no equity in any of the homes, not enough to cover the debt anyway. It blows my mind.

And for most of those years she was working also.

You know, my second marriage somehow brought out the worst in both of us financially. We were both handling ourselves just fine before we met but somehow we lost our shit together and we were pretty broke when we split. Maybe this will be good for him. Sometimes disastrous events like a ruinous divorce can be the trigger to bring out our inner badass.

[zephyr911]

See, that's the thing. I personally feel that my husband and I are rolling around in the lap of luxury in our enormous 2500 sq ft. house (we even have a room devoted entirely to yoga and meditation) for just the two of us. I frequently wonder out loud whether we should be moving more toward minimalism and planning to downsize into 1600 sq ft, which still seems like it would be pretty comfortable to me.

My co-worker and his wife (no children) will be living in slightly more space than my luxurious home while half his 5000+ square foot home is less usable for a week. I can barely wrap my mind around the idea of 5000+ sq ft devoted to just two people, but ok, different strokes and all that. But to moan about the hellish situation of living in only 2500 sq ft for two people for a week, that seems worthy of mockery to me.

I had 1900sf and two adult roommates whom I kicked out when my wife finished grad school and moved home, and all that space just felt empty and sad to me thereafter. It got to be too much, so we downsized to about 1100.

Here's the funny part: I now find myself wondering what the 3rd bedroom is for. It's going to be my office eventually when I quit the government and go self-employed, with a guest bed for visitors, but it still seems funny when I realize that I barely ever set foot in there. The actual area we use has shrunk by more than half, to about 800, without ever feeling crowded.

Childless co-workers here seem to prefer 3-4000sf with media rooms and home gyms, etc... it just sounds so much like work to me that I can't fathom the enjoyment of it.

[eyePod]

Former co-worker came by to visit briefly today and mentioned that her new job would be re-locating soon to a new suburban office campus, doubling the distance she would be away from her home. But she's actually looking forward to her hour-and-a-half toll-road commute to the new place "because it's so beautiful."

Cause that won't get old...

[Beaker]

Not at work, just a friend of ours. In one conversation (monologue, almost) he mentioned that...

• He's really annoyed about all his creditors calling all the time to ask for their money, because...
• ...he's already paying a debt consolidation company to talk to them! And besides they really need to negotiate the amount down. (Apparently paying off only a fraction of your debt in some kind of right?)
• But they better negotiate it, because he hates his job so he's going to quit, and the new job he lined up pays less and is further away, so...
• ... he really needs to call the consolidator and make sure they'll take a smaller monthly payment. (Why would you ask about that beforehand?)
• He'll be giving notice while the boss is out of town on training. Which he's really mad he didn't get invited to, even though he couldn't go anyway because he's already prepaid $3500 for a trip to Vegas at the same time.
• So the boss can't just let him right away because there's nobody in the office (including my friend. The logic here escapes me.) But when she gets back he'll probably get let and then have a week long (probably unpaid) vacation!
• But they won't have health insurance for 90 days. So better not get sick, haha! (I tried to interject that he should look into the ACA requirements and maybe subsidies, but he talked over me. Guess he'll find out about that if/when they fine him for not having coverage. Didn't even get around to asking about what happens if the new job doesn't work out.)
• Both he and his wife are on daily meds for chronic conditions, which they already can't afford to pay out of pocket, so guess we better get a new 90-day supply before quitting day! (Didn't get a chance to point out that a 90-day supply ordered before quitting cannot possibly last until new insurance kicks in 90 days after new job starts.)

Then the conversation ended because he wanted to go get some fast food before we headed out to the (not free) activity for the evening. He turned down the freezer burritos and other stuff we had on hand.

Somewhere in there he also mentioned that they couldn't use home equity to pay off the other debts because they'd refi'd ~3 times in the last 10 years and were probably upside down. Which is going to be a problem, since they might have to get a new place so an aging parent can move in. And also his doctor keeps telling him that he needs a double joint replacement sometime soon. And he spent about $6k funding Kickstarter projects last year.

I really wish I was making this up. He's a nice enough guy, but it's depressing to listen to the way he runs his finances.

[Timmmy]

See, that's the thing. I personally feel that my husband and I are rolling around in the lap of luxury in our enormous 2500 sq ft. house (we even have a room devoted entirely to yoga and meditation) for just the two of us. I frequently wonder out loud whether we should be moving more toward minimalism and planning to downsize into 1600 sq ft, which still seems like it would be pretty comfortable to me.

My co-worker and his wife (no children) will be living in slightly more space than my luxurious home while half his 5000+ square foot home is less usable for a week. I can barely wrap my mind around the idea of 5000+ sq ft devoted to just two people, but ok, different strokes and all that. But to moan about the hellish situation of living in only 2500 sq ft for two people for a week, that seems worthy of mockery to me.

I had 1900sf and two adult roommates whom I kicked out when my wife finished grad school and moved home, and all that space just felt empty and sad to me thereafter. It got to be too much, so we downsized to about 1100.

Here's the funny part: I now find myself wondering what the 3rd bedroom is for. It's going to be my office eventually when I quit the government and go self-employed, with a guest bed for visitors, but it still seems funny when I realize that I barely ever set foot in there. The actual area we use has shrunk by more than half, to about 800, without ever feeling crowded.

Childless co-workers here seem to prefer 3-4000sf with media rooms and home gyms, etc... it just sounds so much like work to me that I can't fathom the enjoyment of it.

DW and I lived with a roommate and 3 dogs in our 900sf house for about 3 years.  When the roommate left, we converted that room in to an office.  It rarely gets used and I think we could go even smaller without any inconvenience.  I'm not sure what I would put in an extra 1000sf. 

[zephyr911]

DW and I lived with a roommate and 3 dogs in our 900sf house for about 3 years.  When the roommate left, we converted that room in to an office.  It rarely gets used and I think we could go even smaller without any inconvenience.  I'm not sure what I would put in an extra 1000sf.

We never even really filled that one up. There was an entire second living area upstairs that never got furnished... #2 and #3 bedrooms were a guest room and her office, but were also mostly empty space. To be fair, I pretty much conceived that home as an investment property from the get-go, and only moved in temporarily because it was cheaper to use residential financing.

[Rollin]

Not at work, just a friend of ours. In one conversation (monologue, almost) he mentioned that...

• He's really annoyed about all his creditors calling all the time to ask for their money, because...
• ...he's already paying a debt consolidation company to talk to them! And besides they really need to negotiate the amount down. (Apparently paying off only a fraction of your debt in some kind of right?)
• But they better negotiate it, because he hates his job so he's going to quit, and the new job he lined up pays less and is further away, so...
• ... he really needs to call the consolidator and make sure they'll take a smaller monthly payment. (Why would you ask about that beforehand?)
• He'll be giving notice while the boss is out of town on training. Which he's really mad he didn't get invited to, even though he couldn't go anyway because he's already prepaid $3500 for a trip to Vegas at the same time.
• So the boss can't just let him right away because there's nobody in the office (including my friend. The logic here escapes me.) But when she gets back he'll probably get let and then have a week long (probably unpaid) vacation!
• But they won't have health insurance for 90 days. So better not get sick, haha! (I tried to interject that he should look into the ACA requirements and maybe subsidies, but he talked over me. Guess he'll find out about that if/when they fine him for not having coverage. Didn't even get around to asking about what happens if the new job doesn't work out.)
• Both he and his wife are on daily meds for chronic conditions, which they already can't afford to pay out of pocket, so guess we better get a new 90-day supply before quitting day! (Didn't get a chance to point out that a 90-day supply ordered before quitting cannot possibly last until new insurance kicks in 90 days after new job starts.)

Then the conversation ended because he wanted to go get some fast food before we headed out to the (not free) activity for the evening. He turned down the freezer burritos and other stuff we had on hand.

Somewhere in there he also mentioned that they couldn't use home equity to pay off the other debts because they'd refi'd ~3 times in the last 10 years and were probably upside down. Which is going to be a problem, since they might have to get a new place so an aging parent can move in. And also his doctor keeps telling him that he needs a double joint replacement sometime soon. And he spent about $6k funding Kickstarter projects last year.

I really wish I was making this up. He's a nice enough guy, but it's depressing to listen to the way he runs his finances.

That is sickening.  I cannot imagine being in that situation and am thankful that I'm not even close.

[Sibley]

Just a comment - if she has been a student, and then moving around, she may be getting mail (including banking mail) sent to her parents for consistency.  These days most of the young ones do everything on line.  How do I know?  Because I still get a lot of DD's mail - think of me as a post box.  Once she plans to actually stay in the same place for a second year she will do a change of address.  Its not a big deal for me, if something looks important I will get it to her and 98% of it is not important except for a paper trail.

One of the down sides of retirement is that I have nothing god-awful to contribute to this thread. 

I have a friend in similar situation, but the receiver end, will call her 'A'. A is 29, has a useless college degree in terms of defining a clear career path. Mommy and daddy: buy her clothes; paid for college; pay for 98% of her HORSE expenses; bought her a brand new Prius; and just recently basically told her that if she wanted to quit her current (sucky) job, they'd pay her living expenses and pay for more education if she wanted to. Until I started encouraging her to basically act like a grown up, she allowed her dad to handle all her finances. He still does at least 50% of it. She doesn't even get most of the bank statements - they all go to her parent's house.

If I didn't see evidence of progress, I'd be completely disgusted with her. Moral of story: people, please act like responsible parents. They came close to ruining this girl, and they don't seem to even see it.

I wish that was the case! No, she's not an independent adult yet. If something happened to her father, both she and her mother would be in serious trouble just because they're financially uneducated. The mother is incapable of caring for herself physically even, and is firmly in the camp of "must have a man to take care of you". 

[Ynari]

• But they won't have health insurance for 90 days. So better not get sick, haha! (I tried to interject that he should look into the ACA requirements and maybe subsidies, but he talked over me. Guess he'll find out about that if/when they fine him for not having coverage. Didn't even get around to asking about what happens if the new job doesn't work out.)

FYI, you don't have to pay the ACA fine if you have less than 3 consecutive months being uninsured. So assuming that the 90 days is his only break in coverage, he won't have to pay penalties. If the new job doesn't work out, then he will.

He sure sounds like a mess, though. It's lucky for him that the ACA has exemptions for situations like those.

[crispy]

Coworker who is in her early forties mentioned today that she and her husband had less than 10K in retirement because they had too much debt to be able to save money. A few minutes later she said that when her husband received a raise this year, they planned to buy a bigger house.

[randymarsh]

Coworker who is in her early forties mentioned today that she and her husband had less than 10K in retirement because they had too much debt to be able to save money. A few minutes later she said that when her husband received a raise this year, they planned to buy a bigger house.

I'm not sure why but it just hit me how little $10,000 is for anyone who's been working for decades. I'm half her age and have 10K in cash and retirement accounts. :-0

[johnny847]

Coworker who is in her early forties mentioned today that she and her husband had less than 10K in retirement because they had too much debt to be able to save money. A few minutes later she said that when her husband received a raise this year, they planned to buy a bigger house.

I'm not sure why but it just hit me how little $10,000 is for anyone who's been working for decades. I'm half her age and have 10K in cash and retirement accounts. :-0

Heck $10k is less than some people's emergency funds.

[mtn]

Coworker who is in her early forties mentioned today that she and her husband had less than 10K in retirement because they had too much debt to be able to save money. A few minutes later she said that when her husband received a raise this year, they planned to buy a bigger house.

I'm not sure why but it just hit me how little $10,000 is for anyone who's been working for decades. I'm half her age and have 10K in cash and retirement accounts. :-0

Heck $10k is less than some people's emergency funds.

$10k is less than *my* emergency fund, and I'm only 25 and not very mustachian.

Full disclosure, my current emergency fund also includes my down-payment savings, but still.

[horsepoor]

Not at work, just a friend of ours. In one conversation (monologue, almost) he mentioned that.

horrifying shit show

Ho.

Lee.

Shit.

[zephyr911]

Coworker who is in her early forties mentioned today that she and her husband had less than 10K in retirement because they had too much debt to be able to save money. A few minutes later she said that when her husband received a raise this year, they planned to buy a bigger house.

I wouldn't even know where to start with someone who can't grasp addition and subtraction.... :/

[crispy]

Coworker who is in her early forties mentioned today that she and her husband had less than 10K in retirement because they had too much debt to be able to save money. A few minutes later she said that when her husband received a raise this year, they planned to buy a bigger house.

I wouldn't even know where to start with someone who can't grasp addition and subtraction.... :/

She is a sweet person, and they are working hard to get out of debt right now which is why she mentioned the retirement thing in the first place.  I did suggest that they stay in their house so they could start saving towards retirement when their debt is paid off.  She has mentioned before that they owe almost as much as they paid for their current house which they bought 12 or so years ago because they had cashed out the equity a couple of years back so they won't even have a big down payment if they buy another house.

[I'm a red panda]

Every time I go on holidays, now, people at work say, "You're not going to try to just take carry-on luggage are you? Don't do it!"

I cannot work out what they're trying to save me from.

Since our credit card gives us each a free checked bag, we've stopped using carry on luggage.
My reasons:
1) At our small airport everything bigger than a purse or small backpack has to be gate checked, and it is a giant PITA to wait in the cold (or hot, it never seems to be comfortable)  jetway waiting for them to unload your bag.  Especially if you have a tight connection!
2) If you don't have group 1 boarding, even if you don't gate check, you have to fight for overhead space because too many people carry on stuff.
3) Airports seem to make their bathrooms with the idea that no one will have luggage. 
4) Running to catch a plane is so much easier without a bag.


So, I've now gone to either checked only or carry on only- but I won't do both in the same trip.  If carry on, I try to use a backpack instead of a rolling bag when I can.

[rocksinmyhead]

Every time I go on holidays, now, people at work say, "You're not going to try to just take carry-on luggage are you? Don't do it!"

I cannot work out what they're trying to save me from.

Since our credit card gives us each a free checked bag, we've stopped using carry on luggage.
My reasons:
1) At our small airport everything bigger than a purse or small backpack has to be gate checked, and it is a giant PITA to wait in the cold (or hot, it never seems to be comfortable)  jetway waiting for them to unload your bag.  Especially if you have a tight connection!
2) If you don't have group 1 boarding, even if you don't gate check, you have to fight for overhead space because too many people carry on stuff.
3) Airports seem to make their bathrooms with the idea that no one will have luggage. 
4) Running to catch a plane is so much easier without a bag.


So, I've now gone to either checked only or carry on only- but I won't do both in the same trip.  If carry on, I try to use a backpack instead of a rolling bag when I can.

THIS is exactly why I hate carryons. We used to have a Delta Amex and only ever flew Delta or Southwest. Haven't flown yet since I got rid of the card but I am dreading it :P

[zephyr911]

1) At our small airport everything bigger than a purse or small backpack has to be gate checked, and it is a giant PITA to wait in the cold (or hot, it never seems to be comfortable)  jetway waiting for them to unload your bag.  Especially if you have a tight connection!
2) If you don't have group 1 boarding, even if you don't gate check, you have to fight for overhead space because too many people carry on stuff.
3) Airports seem to make their bathrooms with the idea that no one will have luggage. 
4) Running to catch a plane is so much easier without a bag.

Most of these things only seem relevant if you assume you're maxing out the quota of carry-ons. I normally travel with a backpack that fits under the seat in front of me. No gate-check, no PITA, no overhead space, no bathroom issues, and I can run pretty well with it.
This is slightly easier in warmer seasons with less winter clothing to haul, but I've pulled it off year-round for a week or more, even internationally.

[I'm a red panda]

Most of these things only seem relevant if you assume you're maxing out the quota of carry-ons.

I can't pack for a week of work (suits with jackets required, which means I also need to bring at least 2 pairs of shoes, so I can have appropriate shoes for work, and then regular shoes for after work.), along with my laptop in a backpack.  So I have to have a rolling bag, and they have to be gate checked or put above the seat.

If I'm not going for work, a backpack usually goes under my seat.  But if I'm not going for work, I usually drive, or we have scuba gear, so we are checking bags anyway- and I find that preferable to carrying on anything.  Going carry on free is so wonderful.

[going2ER]

I work for the province and there is a strong possibility that we will be losing our superannuation benefit. However, if it is handled the same way as the Feds we would be paid out any monies that we would have been eligible for up until this point. There would be no further payouts and no more earning a superannuation, it would just be gone.

So we were discussing this in the office yesterday, one coworker had no idea what our superannuation was or that it even existed and she wasn't the worst. My other coworker, who would be 55+, commented that when his wife got her payout from the Feds they spent it, "why would you save it when you're going to get a pension anyway?" and "who knows how long you'll live you might want to enjoy it now". I didn't comment, I think I was in shock.

[MishMash]

UGH!  So, I have a coworker that just put in her notice at work.  The new place offered her a pretty good package, 15k a year more (so around 130k), a 25% annual bonus if goals are met, a 5% 401k match etc (she doesn't save in our existing 401k just an FYI).  We are talking yesterday and she was saying how the bump would be nice since her and her husband can now start building a savings account (which they are pulling in 240k a year combined now and apparently have no savings).  Sitting here just now she calls her husband and says she's "found her dream home" and it's ONLY 895k so our mortgage would only go up "a little bit" and they HAVE to go look and put in an offer this weekend. 

Her current house is a 2 bed in the District that she bought for 450 during the recession on a 30 year FHA w/3% down...the new house is a 3 bed, 3 bath, it's them and a dog and no plan for having kids.  That new mortgage is going to be going up more then "a little bit" even taking into account the 20% increase in sale price they can realistically see..  I also broke the news to her that if she is changing jobs (no savings remember) then she will have a hard time getting a mortgage since she can't provide a consistent work history. 

[zataks]

UGH!  So, I have a coworker that just put in her notice at work.  The new place offered her a pretty good package, 15k a year more (so around 130k), a 25% annual bonus if goals are met, a 5% 401k match etc (she doesn't save in our existing 401k just an FYI).  We are talking yesterday and she was saying how the bump would be nice since her and her husband can now start building a savings account (which they are pulling in 240k a year combined now and apparently have no savings).  Sitting here just now she calls her husband and says she's "found her dream home" and it's ONLY 895k so our mortgage would only go up "a little bit" and they HAVE to go look and put in an offer this weekend. 

Her current house is a 2 bed in the District that she bought for 450 during the recession on a 30 year FHA w/3% down...the new house is a 3 bed, 3 bath, it's them and a dog and no plan for having kids.  That new mortgage is going to be going up more then "a little bit" even taking into account the 20% increase in sale price they can realistically see.. I also broke the news to her that if she is changing jobs (no savings remember) then she will have a hard time getting a mortgage since she can't provide a consistent work history.

I've heard this a lot but I think part of the story is missing.  If you bounce from job to job, this may be true but I have been told by mortgage brokers that provided it's within the same field, it counts as continual employment.  Had only been at a new job a short while when I first got a mortgage but had been in the field over 4 years; changed jobs during a refinance in 2013 (again, to a better job in the same field) and had no issues with getting the refi.

[Ascotillion]

I work for the province and there is a strong possibility that we will be losing our superannuation benefit. However, if it is handled the same way as the Feds we would be paid out any monies that we would have been eligible for up until this point. There would be no further payouts and no more earning a superannuation, it would just be gone.

How is this not extremely illegal??

[dividendman]

I work for the province and there is a strong possibility that we will be losing our superannuation benefit. However, if it is handled the same way as the Feds we would be paid out any monies that we would have been eligible for up until this point. There would be no further payouts and no more earning a superannuation, it would just be gone.

How is this not extremely illegal??

Parliamentary supremacy: http://en.wikipedia.org/wiki/Parliamentary_sovereignty#Canadian_provinces

[auntie_betty]

Saw this on FB:  Husband bought wife one of those fancy, wearable exercise gadgets for Christmas (about $120).  Forgot he bought it and just found it a week ago, did an LOL and and "OOPSIE".

Jeez, and I'm annoyed I can't find two tiny candles I bought as stocking fillers!

CW1 to me - looking forward to retiring in 5 weeks?
Me - yup, joining you (he only works 4 days a month)
CW2 - I'll be working till I'm 69 or 70
CW3 - me too!
CW1 - surely not - how much are you paying into our pension?
CW2 - nothing. I get letters about the bit the company pays and I can't understand it. Anyway, like I said, I'll be working till I'm 69 so what's the point?
CW1 - em, the point is to pay into a pension so you don't have to work till you're 69?
CW3 - I'm not paying in anything either, suppose I should really (he's 61!)
Me - that's crazy, you know you get 25% added to whatever you contribute?
CW2 & 3 - silence
CW2 - xxxx pays LOADS into her pension!!!!!
Me - yup, so does yyyyy. Can't see either of them working till they're 69.
CW2 - it's all right for some!!!!!
CW3 - yeah, I'll be working till I drop (which may not be too long as he's in poor health :( )

[eyePod]

Saw this on FB:  Husband bought wife one of those fancy, wearable exercise gadgets for Christmas (about $120).  Forgot he bought it and just found it a week ago, did an LOL and and "OOPSIE".

Jeez, and I'm annoyed I can't find two tiny candles I bought as stocking fillers!

CW1 to me - looking forward to retiring in 5 weeks?
Me - yup, joining you (he only works 4 days a month)
CW2 - I'll be working till I'm 69 or 70
CW3 - me too!
CW1 - surely not - how much are you paying into our pension?
CW2 - nothing. I get letters about the bit the company pays and I can't understand it. Anyway, like I said, I'll be working till I'm 69 so what's the point?
CW1 - em, the point is to pay into a pension so you don't have to work till you're 69?
CW3 - I'm not paying in anything either, suppose I should really (he's 61!)
Me - that's crazy, you know you get 25% added to whatever you contribute?
CW2 & 3 - silence
CW2 - xxxx pays LOADS into her pension!!!!!
Me - yup, so does yyyyy. Can't see either of them working till they're 69.
CW2 - it's all right for some!!!!!
CW3 - yeah, I'll be working till I drop (which may not be too long as he's in poor health :( )

Depressing but awesome that you're only a just about a month out!

[RL12]

A lady at work the other day hurt her knee and doctor told her that she needs an MRI. While she's on the phone with the doctor's office about scheduling the MRI she finds out that total cost for her will be ~$850. She cannot believe how much it will be and begins asking if they have a payment plan. This same lady drives a newer model Lexus, gets it regularly detailed, goes out to lunch almost everyday and talks about how her and her family like "nice things." She's in her late 50's and hasn't even thought about retirement.

[Louis the Cat]

A lady at work the other day hurt her knee and doctor told her that she needs an MRI. While she's on the phone with the doctor's office about scheduling the MRI she finds out that total cost for her will be ~$850. She cannot believe how much it will be and begins asking if they have a payment plan. This same lady drives a newer model Lexus, gets it regularly detailed, goes out to lunch almost everyday and talks about how her and her family like "nice things." She's in her late 50's and hasn't even thought about retirement.

This is why I love having an HSA. We are a young, healthy family of 4 who have only maxed out our HDHP once, the year our twins were born (go figure). We put in the maximum contribution, mostly in a bond fund so it sits there and happily accumulates but then when I do something dumb like crack a tooth eating popcorn and require semi emergency dental work after my insurance has already maxed out for the year, I can just pay for the work without having to stress and it barely puts a dent in the HSA. But that requires prior planning...

[Kris]

A lady at work the other day hurt her knee and doctor told her that she needs an MRI. While she's on the phone with the doctor's office about scheduling the MRI she finds out that total cost for her will be ~$850. She cannot believe how much it will be and begins asking if they have a payment plan. This same lady drives a newer model Lexus, gets it regularly detailed, goes out to lunch almost everyday and talks about how her and her family like "nice things." She's in her late 50's and hasn't even thought about retirement.

This kind of thing is so crazy/scary to me.  If I hurt my knee and the doc told me this, I would say to myself, "Ugh, why is the health care system in this country so damn fucked  up?"  And then I'd pay the $850 with my credit card, and pay off the balance in full at the end of that month.

I am sure that is no different from most of the people on here.  But even though I am not exactly rich, I have been frugal-ish and responsible with my money for so long that I can't even imagine being in a situation where something that cost me less than $1000 would cause me any sort of financial harm apart from being bummed that I couldn't put that money into savings/investment or spend it on something I wanted.

[frugalnacho]

I got my federal tax liability to $0 this year while making $60k.  I told many of my coworkers about the tax savers credit as I thought several of them could qualify if they would just open an IRA and put some money into it, and none of them were even aware of it.  It seems stupid to me not to put $2k into it if you can reduce your taxes by $1,000.  It's an instant 50% return on their investment, plus that investment gets to then grow in an IRA.  It's win-win-win for those that qualify.

A couple weeks after our tax chats:

cw1: filled out my taxes yesterday.  Getting a nice refund.
cw2: I did mine too.  I am getting $200 back from fed, but I owe $300 to the state!
me: Did either of you utilize the tax savers credit I mentioned? You guys might be eligible and it could reduce your taxes a lot.
cw1: No.  I didn't open an IRA last year.
me: You have until april 15 to open and contribute for the 2014 year, so you can still open one and put it on your tax return.
cw1: *blank stare*
me: It's non refundable though, so it will only help if you actually have a tax liability (which I assume they do).  How much did you actually pay in taxes?
cw1:  I don't know, i'm getting like $1000 back though.
me: Yea but how much they refund to you is a function of how much they withheld and how much actual tax you owe for 2014.  What was your actual tax liability?
cw1: *blank stare*
cw2: *blank stare the entire time*

These guys aren't stupid.  I just don't understand why they aren't willing to invest an hour or so understanding how their taxes are calculated and how to optimize it, especially when someone is sitting right there and is eager to talk to them and help them learn.

[RL12]

This kind of thing is so crazy/scary to me.  If I hurt my knee and the doc told me this, I would say to myself, "Ugh, why is the health care system in this country so damn fucked  up?"  And then I'd pay the $850 with my credit card, and pay off the balance in full at the end of that month.

I am sure that is no different from most of the people on here.  But even though I am not exactly rich, I have been frugal-ish and responsible with my money for so long that I can't even imagine being in a situation where something that cost me less than $1000 would cause me any sort of financial harm apart from being bummed that I couldn't put that money into savings/investment or spend it on something I wanted.

What makes it worse is $600 of what she has to pay is our annual deductible. So with her and her husband being in their late 50's and having a son in college you are almost 100% guaranteed to meet that deductible, but she apparently hadn't planned for any of this. When she came and talked to me about it I just had to fake sympathy for her and then made a comment about how you always have to plan for the unexpected, which she blew right past and started telling me how this is going to push her son getting his wisdom teeth removed back by another year.

[Kaspian]

Perhaps the millenials will "look" financially more like the generation who lived through the great depression, rather than generation x or the baby boomers.

Not from what I've seen!  They're at the bar buying craft brews and expensive, fancy cocktails while taking selfies on their iPhones.  The recession in Canada (which nobody seems to remember) between 89-93 was devastating.  You'd never see us GenX punk rockers and grungers with craft brews.  We were all wearing clothes from the second-hand shop and you'd only see us out on $1 draft night.  :(

[merula]

This kind of thing is so crazy/scary to me.  If I hurt my knee and the doc told me this, I would say to myself, "Ugh, why is the health care system in this country so damn fucked  up?"  And then I'd pay the $850 with my credit card, and pay off the balance in full at the end of that month.

I am sure that is no different from most of the people on here.  But even though I am not exactly rich, I have been frugal-ish and responsible with my money for so long that I can't even imagine being in a situation where something that cost me less than $1000 would cause me any sort of financial harm apart from being bummed that I couldn't put that money into savings/investment or spend it on something I wanted.

What makes it worse is $600 of what she has to pay is our annual deductible. So with her and her husband being in their late 50's and having a son in college you are almost 100% guaranteed to meet that deductible, but she apparently hadn't planned for any of this. When she came and talked to me about it I just had to fake sympathy for her and then made a comment about how you always have to plan for the unexpected, which she blew right past and started telling me how this is going to push her son getting his wisdom teeth removed back by another year.

Wait a minute. If they've met their deductible, isn't this the perfect time to get any extra care that they've been putting off?

[dycker1978]

Perhaps the millenials will "look" financially more like the generation who lived through the great depression, rather than generation x or the baby boomers.

Not from what I've seen!  They're at the bar buying craft brews and expensive, fancy cocktails while taking selfies on their iPhones.  The recession in Canada (which nobody seems to remember) between 89-93 was devastating.  You'd never see us GenX punk rockers and grungers with craft brews.  We were all wearing clothes from the second-hand shop and you'd only see us out on $1 draft night.  :(

Hey I am a gen x and I love my craft beer... that I brew myself, for less the .50 cents a L... Nevermind...

[Le Barbu]

Perhaps the millenials will "look" financially more like the generation who lived through the great depression, rather than generation x or the baby boomers.

Not from what I've seen!  They're at the bar buying craft brews and expensive, fancy cocktails while taking selfies on their iPhones.  The recession in Canada (which nobody seems to remember) between 89-93 was devastating.  You'd never see us GenX punk rockers and grungers with craft brews.  We were all wearing clothes from the second-hand shop and you'd only see us out on $1 draft night.  :(

Hey I am a gen x and I love my craft beer... that I brew myself, for less the .50 cents a L... Nevermind...

Weird, if someone asked me, I would say GenX looks like the Great Gen (post depression) and the Millenials are the Boomers 2.0
Just my toughts...Nevermind...

[RL12]

This kind of thing is so crazy/scary to me.  If I hurt my knee and the doc told me this, I would say to myself, "Ugh, why is the health care system in this country so damn fucked  up?"  And then I'd pay the $850 with my credit card, and pay off the balance in full at the end of that month.

I am sure that is no different from most of the people on here.  But even though I am not exactly rich, I have been frugal-ish and responsible with my money for so long that I can't even imagine being in a situation where something that cost me less than $1000 would cause me any sort of financial harm apart from being bummed that I couldn't put that money into savings/investment or spend it on something I wanted.

What makes it worse is $600 of what she has to pay is our annual deductible. So with her and her husband being in their late 50's and having a son in college you are almost 100% guaranteed to meet that deductible, but she apparently hadn't planned for any of this. When she came and talked to me about it I just had to fake sympathy for her and then made a comment about how you always have to plan for the unexpected, which she blew right past and started telling me how this is going to push her son getting his wisdom teeth removed back by another year.

Wait a minute. If they've met their deductible, isn't this the perfect time to get any extra care that they've been putting off?

Merula, not in this case as wisdom teeth removal is not covered under our health insurance.

[MishMash]

UGH!  So, I have a coworker that just put in her notice at work.  The new place offered her a pretty good package, 15k a year more (so around 130k), a 25% annual bonus if goals are met, a 5% 401k match etc (she doesn't save in our existing 401k just an FYI).  We are talking yesterday and she was saying how the bump would be nice since her and her husband can now start building a savings account (which they are pulling in 240k a year combined now and apparently have no savings).  Sitting here just now she calls her husband and says she's "found her dream home" and it's ONLY 895k so our mortgage would only go up "a little bit" and they HAVE to go look and put in an offer this weekend. 

Her current house is a 2 bed in the District that she bought for 450 during the recession on a 30 year FHA w/3% down...the new house is a 3 bed, 3 bath, it's them and a dog and no plan for having kids.  That new mortgage is going to be going up more then "a little bit" even taking into account the 20% increase in sale price they can realistically see.. I also broke the news to her that if she is changing jobs (no savings remember) then she will have a hard time getting a mortgage since she can't provide a consistent work history.

I've heard this a lot but I think part of the story is missing.  If you bounce from job to job, this may be true but I have been told by mortgage brokers that provided it's within the same field, it counts as continual employment.  Had only been at a new job a short while when I first got a mortgage but had been in the field over 4 years; changed jobs during a refinance in 2013 (again, to a better job in the same field) and had no issues with getting the refi.

Yea she's doing a similar job, but in a different industry, for a startup, that doesn't have a saleable product, and won't for an estimated three years.  That said they gave me a hard time getting our last mortgage, even though I worked for my company for 6 years and was simply moving offices and changing titles.  Literally, like jump through a million hoops, certified letters from my employer that I was employed by them and my salary wouldn't be negatively impacted etc.  And this was a year and a half ago.

[mtn]

I got my federal tax liability to $0 this year while making $60k.  I told many of my coworkers about the tax savers credit as I thought several of them could qualify if they would just open an IRA and put some money into it, and none of them were even aware of it.  It seems stupid to me not to put $2k into it if you can reduce your taxes by $1,000.  It's an instant 50% return on their investment, plus that investment gets to then grow in an IRA.  It's win-win-win for those that qualify.

Wait a minute... Does a 401k count for this? Also, I assume that your standard TurboTax or TaxAct would have this built in, so when answering the questions, it would do it for you?

[frugalnacho]

I got my federal tax liability to $0 this year while making $60k.  I told many of my coworkers about the tax savers credit as I thought several of them could qualify if they would just open an IRA and put some money into it, and none of them were even aware of it.  It seems stupid to me not to put $2k into it if you can reduce your taxes by $1,000.  It's an instant 50% return on their investment, plus that investment gets to then grow in an IRA.  It's win-win-win for those that qualify.

Wait a minute... Does a 401k count for this? Also, I assume that your standard TurboTax or TaxAct would have this built in, so when answering the questions, it would do it for you?

Yes (thanks to dandarc for correcting me).

No your 401k deductions don't qualify for the tax savers credit (but your 401k contributions reduce your AGI which may lower your income level enough to qualify for the credit, or a better portion of the credit).  I believe it has to be an IRA.   Yes turbo tax will automatically add it and calculate it for you when you put in the appropriate information when it prompts you during the questionnaire. 

[zataks]

Yea she's doing a similar job, but in a different industry, for a startup, that doesn't have a saleable product, and won't for an estimated three years.  That said they gave me a hard time getting our last mortgage, even though I worked for my company for 6 years and was simply moving offices and changing titles.  Literally, like jump through a million hoops, certified letters from my employer that I was employed by them and my salary wouldn't be negatively impacted etc.  And this was a year and a half ago.

Pretty sure that's the focus of the problem.  Different titles obviously means different job and instability! =p

[dandarc]

I got my federal tax liability to $0 this year while making $60k.  I told many of my coworkers about the tax savers credit as I thought several of them could qualify if they would just open an IRA and put some money into it, and none of them were even aware of it.  It seems stupid to me not to put $2k into it if you can reduce your taxes by $1,000.  It's an instant 50% return on their investment, plus that investment gets to then grow in an IRA.  It's win-win-win for those that qualify.

Wait a minute... Does a 401k count for this? Also, I assume that your standard TurboTax or TaxAct would have this built in, so when answering the questions, it would do it for you?

No your 401k deductions don't qualify for the tax savers credit (but your 401k contributions reduce your AGI which may lower your income level enough to qualify for the credit, or a better portion of the credit).  I believe it has to be an IRA.   Yes turbo tax will automatically add it and calculate it for you when you put in the appropriate information when it prompts you during the questionnaire.

Actually, 401K does count.  Pretty amazing deal if you can get that AGI low enough.

http://www.irs.gov/Retirement-Plans/Plan-Participant,-Employee/Retirement-Topics-Retirement-Savings-Contributions-Credit-%28Saver%E2%80%99s-Credit%29

[Pooperman]

A high level employee (40ish, single, no kids) at work has decided that they need a Range Rover Sport ($65-80K SUV) and told me that they just placed the order. After I got over the sticker shock, I find out that there is a 5-6 month backlog. That's right folks, if you are going to be paying 4-6 times an "average" car, you need to wait 6 months to get it.

The kicker? This employee has a 6-7 year old BMW that needs $10-15K worth of repairs that they don't want to perform and there is high risk of the car breaking down. To mitigate the risk, this high level employee is now carpooling/bumming rides from others in the office and will continue to do so for the next 5-6 months until the car has arrived.

I just don't get how smart, business-minded people make such poor life/personal choices. This is a person responsible for hundres of millions of dollars at work.

Mind blown.

These people also run businesses. I'm surprised our economy isn't completely messed up!