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Around the Internet => Antimustachian Wall of Shame and Comedy => Topic started by: NumberCruncher on December 05, 2012, 10:49:15 AM

Title: Struggling at >250k
Post by: NumberCruncher on December 05, 2012, 10:49:15 AM
http://www.thejanedough.com/i%E2%80%99m-not-rich-why-am-i-being-taxed-like-i-am/

I agree that billionaires pulling in much more money with capital gains not being taxed as much is shitty, and that living in NY is expensive, but come on! It sounds like if even one of them got a job elsewhere for less money, the cost of living decrease (and tax decrease) would be phenomenal enough to make up for it. 
Title: Re: Struggling at >250k
Post by: Jamesqf on December 05, 2012, 12:03:21 PM
Kinda hard to figure this one out.  They make $250K, pay $100K in taxes, that leaves $150K.  Subtract $3K/month for rent, that leaves $114K.  Just what are they spending it on?
Title: Re: Struggling at >250k
Post by: chicagomeg on December 05, 2012, 01:44:29 PM
What kind of accountant saves for a house before paying off student loans? That makes no sense.
Title: Re: Struggling at >250k
Post by: mustache brony on December 05, 2012, 02:17:28 PM
It makes me a little sad that they have such problems with taxes, but can't (or don't) take advantage of their tax advantaged retirement accounts. I'm not quite sure why that is so I'm not judging.
Title: Re: Struggling at >250k
Post by: chucklesmcgee on December 05, 2012, 03:51:57 PM
What kind of accountant saves for a house before paying off student loans? That makes no sense.

The antimustachian kind who wants to get a house ASAP.
Title: Re: Struggling at >250k
Post by: mustachecat on December 05, 2012, 06:26:45 PM
Yes, they're insane. We live in NYC, we make 44% of what they make, we go on more vacations than they do... and we save more. Yes!!! I finally feel like a Mustachian!

Although... reading between the lines, if they're paying $22,000 in student loan interest a year, wouldn't their balances be around $366,666? I bet that's what's eating up their cash. Interesting that they don't address it. Probably because they don't want to hear, "Well, you chose to finance those graduate degrees."
Title: Re: Struggling at >250k
Post by: dragoncar on December 05, 2012, 06:48:08 PM
They say the loans are $145k, so they either have a 9% approximate interest rate (in which case saving for a house is duuummmbb) or they are making extra payments.
Title: Re: Struggling at >250k
Post by: kudy on December 05, 2012, 07:12:19 PM
At least the note in italics at the bottom by "Sophia Bera, CFP® from LearnVest Planning" brings some sanity into the article.
Title: Re: Struggling at >250k
Post by: mustachecat on December 06, 2012, 05:47:46 AM
They say the loans are $145k, so they either have a 9% approximate interest rate (in which case saving for a house is duuummmbb) or they are making extra payments.

Oh, duuuuh. Not sure how I missed that.

Okay, these people are just plain terrible.
Title: Re: Struggling at >250k
Post by: Jamesqf on December 06, 2012, 12:05:30 PM
Although... reading between the lines, if they're paying $22,000 in student loan interest a year, wouldn't their balances be around $366,666? I bet that's what's eating up their cash.

Even paying $22K on student loans, that should still leave them with $92K to after taxes, rent, and loans are taken care of.  So where does it go?
Title: Re: Struggling at >250k
Post by: Hamster on December 06, 2012, 10:42:43 PM
Sorry, I don't have a lot of sympathy.  DH and I lived in NYC on much less from 1999-2002.  bought a coop in Queens and had a great life on a combined salary of $100k, which we saved generously with.  We had no student loan debt, which was major, but still we spent MUCH less than these people and had what I felt was a very cushy lifestyle. 

Well duh. You did fine because you only made 100k. These poor people are stuck making 250k which is much worse than 100k, because they are trapped. They can't move because they might make less, and if they made less, they would have to move. How can you have your pudding if you don't eat your meat?

Besides, who could possibly live on only $95k left after taxes, rent, and loan payments...

So, as this couple suggests, people in Iowa who make $50k a year and spend less should pay more taxes so these two can enjoy a higher cost of living in NYC, because $250k is a pittance...
Title: Re: Struggling at >250k
Post by: ruthiegirl on December 07, 2012, 07:41:17 AM

So, as this couple suggests, people in Iowa who make $50k a year and spend less should pay more taxes so these two can enjoy a higher cost of living in NYC, because $250k is a pittance...

This was the bit that disturbed me, too.   

I am new to all of this, so correct me if I am wrong, but wouldn't contributing to their 401K decrease the income that can be taxed?  Seems like they are missing a crucial opportunity to save for retirement and lessen their tax load. 
Title: Re: Struggling at >250k
Post by: ruthiegirl on December 07, 2012, 07:46:41 AM
Oh wait, I am a dumbass.  The article has a response from an expert answering my question.  "Max out the 401K"  seems to be the repeating message. 

Title: Re: Struggling at >250k
Post by: PJ on December 07, 2012, 09:50:51 AM
How can you have your pudding if you don't eat your meat?
 
 
LOL!  I vote for Hamster in the "Best Random Use of Lyrics in a Post" contest!
Title: Re: Struggling at >250k
Post by: Angelfishtitan on December 07, 2012, 09:53:45 AM
Besides, who could possibly live on only $95k left after taxes, rent, and loan payments...

Hamster has it right, it is hard being an accountant/lawyer AND a crybaby. It takes a lot of DESERVED stuff to keep yourself happy.

I understand I am not living in NYC, but my wife and I get by on about $35K a year budget without even trying. They are clearly lying in regards to:

Quote from: Article
We budget constantly. As an accountant, I’m always reviewing our spending, and trying to find ways to cut back. We take the subway. We don’t buy name-brand clothes, and we don’t buy anything unless it’s on sale. We take only one fun trip a year and the most we’ve ever spent on that is $1,600.

Otherwise they wouldn't be able to spend $95K minus whatever the put away (which $100K savings over six years = ~$17K/year, so they spend about $78K/year after taxes/mortgage/student laons/savings). Also $3000/month for rent to live close to work when you have public transit? Entitled much?
Title: Re: Struggling at >250k
Post by: Sylly on December 07, 2012, 10:03:36 AM
Quote from: Article
We don’t buy name-brand clothes, and we don’t buy anything unless it’s on sale.

Well, that in itself doesn't necessarily mean they're not buying unnecessary stuff. The retail industry seems to rely on the fact that people like bargains, and with the right marketing, will get fooled into buying things they wouldn't have otherwise bought just because it's a good deal ("I saved $50!".. never mind the other $50 that you had to spend to say that...). So I can see how the writer may think that she's spending reasonably because she always buys things on sale.

Title: Re: Struggling at >250k
Post by: venkol on December 10, 2012, 12:30:45 PM
I built a potential list of their expenses for them leaving exactly 1K over at the end of the year.  I don't know if this is what they are actually spending, but this has to be somewhat in the ball park.  Yes it is possible to spend 150K in NYC, but you pretty much have to live like a queen to do it.  Don't forget that this "budget" also includes $55K in savings and debt repayment.

150K
-36K Rent
-10K Utilities (Heat/Power/Cable/Cell Phones etc)
-30K House savings (They saved 100K in 3 years including interest income)
-12K Cars + Parking ($700/mo for car+insurance + $300/month parking space)
-19K Food and Dining Out/Bars ($1.5K a month seems pretty damn generous for 2 people)
-20K to bring Sexy Back (Clothes, Make Up, Gym, tan, Laundry) and Toys
-22K Student Loans

Title: Re: Struggling at >250k
Post by: mustachecat on December 10, 2012, 03:50:39 PM
Actually, their lives are even more extravagant than that.

They hope to save $100K in another three years, after having saved for three already. So let's say $15,000 instead of $30,000. They live right by work and take the subway, so no car payments either.  So, let's say $5,000 (two unlimited MetroCards for a year, plus $200+/month in cabs we'll say they forgot about) instead of $12,000.

So that's an extra $22,000 on top of the incredibly generous hypothetical budget that venkol made.
Title: Re: Struggling at >250k
Post by: mustachecat on December 10, 2012, 03:51:57 PM
Ugh, also: the Jane Dough story hasn't been updated with this, but LearnVest (where the story originally appeared) ran this addition:

Quote
Update, December 5, 2pm: The original version version of this essay claimed that if the Bush-era tax cuts for married couples expire, the couple’s taxes would increase by 3%, which would be thousands more dollars they would pay in taxes. This was incorrect: the 3% increase would only apply to any money they make over the $250,000 threshold. Citizens for Tax Justice estimates that families with $250,000 to $300,000 in taxable income would on average owe an additional $199 a year.   
Title: Re: Struggling at >250k
Post by: venkol on December 10, 2012, 03:58:27 PM
Actually, their lives are even more extravagant than that.

They hope to save $100K in another three years, after having saved for three already. So let's say $15,000 instead of $30,000. They live right by work and take the subway, so no car payments either.  So, let's say $5,000 (two unlimited MetroCards for a year, plus $200+/month in cabs we'll say they forgot about) instead of $12,000.

So that's an extra $22,000 on top of the incredibly generous hypothetical budget that venkol made.

EDIT:  Reading the article again, they claim they take the subway, don't buy brand name clothes, and their largest vacation was $1600 a year.

$22K, unaccounted for in a year, and they wonder why they feel poor.  My guess it goes down the toilet to booze, eating out, broadway shows, etc.