Mustachian People Problems (just for fun)

[The Beebsta]

I finally have a mustachian people problem.

I’ve been watching our superannuation balances (Australian retirement account) daily for the last  couple of weeks as they inch ever closer to a combined value of $1m for SO & I. I made sure to push through my last 2 months of contributions this week (self employed so I pay the contributions from company bank account) to try to get us over the line. I logged in today and the balance is $999,965. My MPP is that while I am tempted to transfer $36 to get to a balance of $1,000,001 it’s  Sunday and transfers are not instant, they take a day or two to be processed. So even if I transfer the money, depending on the mood of the market gods tomorrow, I could be well over or well under the $1m mark. I guess I just have to wait patiently for a few more days or weeks to hit this milestone and share the good news with my SO. They don’t know this is coming, I told them several months ago that we had hit $930k. I’m fairly sure their reaction will be along the lines of “oh… ok”.

Funny, I update my spreadsheet on the second of the month. Friday's stock market gains bumped our 401(k) balance from $993,631.48 on Friday morning to $1,001,982.91 today. It feels good to see that second comma show up! Hopefully it'll still be there at the end of the month.

Congratulations!

Congratulations @Dave1442397 . The silver lining if it’s not still over $1m at the end of the month is that you get to celebrate this milestone again when it is! It seems like a milestone that will possibly get repeated a couple of times given how bouncy the markets are lately. I wonder how many times I can justify a bottle of champagne to celebrate hitting this milestone. 🤣

[Dave1442397]

I finally have a mustachian people problem.

I’ve been watching our superannuation balances (Australian retirement account) daily for the last  couple of weeks as they inch ever closer to a combined value of $1m for SO & I. I made sure to push through my last 2 months of contributions this week (self employed so I pay the contributions from company bank account) to try to get us over the line. I logged in today and the balance is $999,965. My MPP is that while I am tempted to transfer $36 to get to a balance of $1,000,001 it’s  Sunday and transfers are not instant, they take a day or two to be processed. So even if I transfer the money, depending on the mood of the market gods tomorrow, I could be well over or well under the $1m mark. I guess I just have to wait patiently for a few more days or weeks to hit this milestone and share the good news with my SO. They don’t know this is coming, I told them several months ago that we had hit $930k. I’m fairly sure their reaction will be along the lines of “oh… ok”.

Funny, I update my spreadsheet on the second of the month. Friday's stock market gains bumped our 401(k) balance from $993,631.48 on Friday morning to $1,001,982.91 today. It feels good to see that second comma show up! Hopefully it'll still be there at the end of the month.

Congratulations!

Congratulations @Dave1442397 . The silver lining if it’s not still over $1m at the end of the month is that you get to celebrate this milestone again when it is! It seems like a milestone that will possibly get repeated a couple of times given how bouncy the markets are lately. I wonder how many times I can justify a bottle of champagne to celebrate hitting this milestone. 🤣

Thanks @Dicey, and congrats to you too, @The Beebsta !

It's fun keeping track of things. I started my spreadsheet in November 2016, which is when I found MMM and got serious about paying off debt and building net worth. Between 1/1/17 and 1/1/24 our net worth increased by $997,285, and we now have a net worth of $1,405,999.

I've been letting my daughter (now 19) keep an eye on the spreadsheet for the past few years, and we got her started with a Roth IRA, which has $7k in it now. She has a net worth of $10.5k, which is $10k more than I had at that age :)

I wish I'd known all this 30 years ago, but at least we got with the program before it's too late.

[Alfred J Quack]

Different trip:
Canadian border official:  “Do you have any guns?”
Me:  “No.”
Her:  “Do you have any alcohol?”
Me:  “No, wait, honey, did my dad send that beer with us?”
Her:  Eyeroll
DW:  “No, we don’t have alcohol.”
Canadian border official:  “Okay, let’s try this again. Do you have any guns?”
Me:  “No.”
Her:  “Do you have any alcohol?”
Me:  “No.”
Her:  “Welcome to Canada, eh!”  Yes, she actually said “eh”.

There are more, but they’re too foamy.

My dad did the intentional version at the UK border. There was a line "nothing to declare" which had about an hours wait and a line "something to declare" which was basically pay and go.
My dad always had a pack of Grolsch beer with a re-usable stopper for my uncle (who brewed his own beer in it). So dad innocently goes through the "to declare" line and asks whether he needs to declare the beer to pay taxes and such. The border guys just waved him on, each time. He crossed the border like monthly when my gran was in bad health...

We also had a laugh with at the border when we were talking about Steve the houseplant hidden in the boot (because of invasive species rules). The officer heard Steve and "hidden in the boot" but he didn't believe we were talking about a plant. We had a mutual laugh when he learned the truth 😂

[Sibley]

A very silly MPP today: I, like others on this site, have a spreadsheet. And it has amortization schedules. Keep this in mind.

The car will be paid off in March (very low % so I'm letting it ride), but I have to wait for the calendar to turn, slowly, for the February payment to post, then the statement, and then for March to make the final payment. And all along I look at my spreadsheet and see that I have just 2 payments left. These last 2 lines, just hanging out there, are really bothering me. So untidy. I have the cash. I could easily pay it off today. But damn it, I am not paying early. I'm earning double in interest than I'm paying. This coming week the February payment will post, so I'll only have 1 line sitting there, teasing me.

[The Beebsta]

I finally have a mustachian people problem.

I’ve been watching our superannuation balances (Australian retirement account) daily for the last  couple of weeks as they inch ever closer to a combined value of $1m for SO & I. I made sure to push through my last 2 months of contributions this week (self employed so I pay the contributions from company bank account) to try to get us over the line. I logged in today and the balance is $999,965. My MPP is that while I am tempted to transfer $36 to get to a balance of $1,000,001 it’s  Sunday and transfers are not instant, they take a day or two to be processed. So even if I transfer the money, depending on the mood of the market gods tomorrow, I could be well over or well under the $1m mark. I guess I just have to wait patiently for a few more days or weeks to hit this milestone and share the good news with my SO. They don’t know this is coming, I told them several months ago that we had hit $930k. I’m fairly sure their reaction will be along the lines of “oh… ok”.

Funny, I update my spreadsheet on the second of the month. Friday's stock market gains bumped our 401(k) balance from $993,631.48 on Friday morning to $1,001,982.91 today. It feels good to see that second comma show up! Hopefully it'll still be there at the end of the month.

Congratulations!

Congratulations @Dave1442397 . The silver lining if it’s not still over $1m at the end of the month is that you get to celebrate this milestone again when it is! It seems like a milestone that will possibly get repeated a couple of times given how bouncy the markets are lately. I wonder how many times I can justify a bottle of champagne to celebrate hitting this milestone. 🤣

Thanks @Dicey, and congrats to you too, @The Beebsta !

It's fun keeping track of things. I started my spreadsheet in November 2016, which is when I found MMM and got serious about paying off debt and building net worth. Between 1/1/17 and 1/1/24 our net worth increased by $997,285, and we now have a net worth of $1,405,999.

I've been letting my daughter (now 19) keep an eye on the spreadsheet for the past few years, and we got her started with a Roth IRA, which has $7k in it now. She has a net worth of $10.5k, which is $10k more than I had at that age :)

I wish I'd known all this 30 years ago, but at least we got with the program before it's too late.

The stock market gods smiled on me today. Balance is $1,005,438. Woohoo!

[ixtap]

I used the HSA bank's tools to make a lump sum payment after the last seed money was deposited
 So why do I have an excess contribution of $200?!? 

And, of course, the only way to request a return of excess contribution is to print a paper form and snail mail it. What century even is this?!?

[BicycleB]

I've been bummed about my net worth in Mint going nowhere for the past 3 months despite some kickass returns on long-term bond trades. Then I realized my accounts last updated 3 months ago, and my brokerage was absorbed in a merger during that time, breaking the links. Thus I was looking at my NW from 3 months ago. After some quick calculator math I found that I am a millionaire. A lazy one who doesn't always pay attention to details, but a millionaire nonetheless.

Congrats, @ChpBstrd!

Or are you chaninging your screen name to ChpLzyBstrd?

[ChpBstrd]

I've been bummed about my net worth in Mint going nowhere for the past 3 months despite some kickass returns on long-term bond trades. Then I realized my accounts last updated 3 months ago, and my brokerage was absorbed in a merger during that time, breaking the links. Thus I was looking at my NW from 3 months ago. After some quick calculator math I found that I am a millionaire. A lazy one who doesn't always pay attention to details, but a millionaire nonetheless.

Congrats, @ChpBstrd!

Or are you chaninging your screen name to ChpLzyBstrd?

Too much work

[Dicey]

MPP: it's cold outside and in my house, too. My bed is warm and cozy, so I'm still in it. I have a dental appointment at 1:00. I don't suppose I can get my teeth cleaned via Zoom, alas.

[MissNancyPryor]

Here is a social MPP:

My weekly golf league group of 3 friends are headed to a new course this season because they offer morning tee times instead of the hot afternoon league play that was demanded of our old course.  2 of us are retired and the 3rd has talked constantly about how she will retire in the spring of 2024 because she will finally have access to Medicare and is pulling the plug from her multi-decade retail mall gig which she hated.  Yay freedom! 

Well crap.  She has now announced that she isn't going to retire after all and just changed her job to a full time day job and can't join us at all.  I don't know all the reasons behind it yet but it must have been serious for her to pull the rug out from under herself just a couple months from the finish line.  Fear?  Other catastrophe (divorce, illness, something terrible)?  Lack of planning?  Unknown, but perhaps I will hear more later.     

The MPP is waiting for friends to join me in retirement and feeling a sense of loss and even misplaced anger when they can't do it.  My golf friend has been miserable and I am glad she is getting out of the retail job with its shift work and associated difficulty but I feel sad that her plans didn't work out and she will have to continue to grind in the workforce.  My MPP is losing track of the fact that not everyone makes it out as planned, and I feel guilty for my fleeting sense of resentment. 

People have troubles, and they get to live their lives.  I forgot that I am weird.  At least I didn't say anything stupid to damage the relationship and I will hope she may yet join us.   

[ixtap]

Here is a social MPP:

My weekly golf league group of 3 friends are headed to a new course this season because they offer morning tee times instead of the hot afternoon league play that was demanded of our old course.  2 of us are retired and the 3rd has talked constantly about how she will retire in the spring of 2024 because she will finally have access to Medicare and is pulling the plug from her multi-decade retail mall gig which she hated.  Yay freedom! 

Well crap.  She has now announced that she isn't going to retire after all and just changed her job to a full time day job and can't join us at all.  I don't know all the reasons behind it yet but it must have been serious for her to pull the rug out from under herself just a couple months from the finish line.  Fear?  Other catastrophe (divorce, illness, something terrible)?  Lack of planning?  Unknown, but perhaps I will hear more later.     

The MPP is waiting for friends to join me in retirement and feeling a sense of loss and even misplaced anger when they can't do it.  My golf friend has been miserable and I am glad she is getting out of the retail job with its shift work and associated difficulty but I feel sad that her plans didn't work out and she will have to continue to grind in the workforce.  My MPP is losing track of the fact that not everyone makes it out as planned, and I feel guilty for my fleeting sense of resentment. 

People have troubles, and they get to live their lives.  I forgot that I am weird.  At least I didn't say anything stupid to damage the relationship and I will hope she may yet join us.   

There is a chance she just considers this an interesting opportunity.

[MissNancyPryor]

I don't think so since she announced the change regretfully rather than talking about the great new job opportunity, just said it was full time days.  That is a good upgrade for her but compared to retirement it can't be that great.  There was no conflict among our group that would make her want to avoid us so nothing there either, just a reversal on her long discussed plans. 

Maybe if the economy improves she would jump immediately with better legs under her at that point.   That would be the best delay; a fear that could be soothed.       

[Gerard]

Gerard, I was inspired to look at at few of your other posts. https://optimacheap.wordpress.com/2023/12/05/better-cheap-stuff-doesnt-need-as-much-expensive-stuff-on-it/ is about buying decent ingredients, and I agree, but I can't help reading the headline differently. I'd like to be able to buy a basic, dependable fridge (or other appliance) that just works, and uses the same kind of electromechanical controls that have worked for decades, or maybe has enough electronics for a simple LCD readout for temperature. I don't need a screen, and I don't need it connecting to headquarters.

Yeah, you and me both. I'd also like a quality bike with 3 to 7 gears for the same price as a crap bike with 21.

[markbike528CBX]

Gerard, I was inspired to look at at few of your other posts. https://optimacheap.wordpress.com/2023/12/05/better-cheap-stuff-doesnt-need-as-much-expensive-stuff-on-it/ is about buying decent ingredients, and I agree, but I can't help reading the headline differently. I'd like to be able to buy a basic, dependable fridge (or other appliance) that just works, and uses the same kind of electromechanical controls that have worked for decades, or maybe has enough electronics for a simple LCD readout for temperature. I don't need a screen, and I don't need it connecting to headquarters.

Yeah, you and me both. I'd also like a quality bike with 3 to 7 gears for the same price as a crap bike with 21.

The front gear shifter on my 18 speed died.  The top 7 gears work for me.
If I’m desperate, I might manually (greasy fingers) go to the middle of the 3 front gears.  I have no idea what the smallest front gear is good for, except to feel hamster-wheel-ish.

Even though I could afford a nicer bike, and I’m often encouraged to do so, I demure, as how would I get exercise then?

[Thrallama]

A very silly MPP today: I, like others on this site, have a spreadsheet. And it has amortization schedules. Keep this in mind.

The car will be paid off in March (very low % so I'm letting it ride), but I have to wait for the calendar to turn, slowly, for the February payment to post, then the statement, and then for March to make the final payment. And all along I look at my spreadsheet and see that I have just 2 payments left. These last 2 lines, just hanging out there, are really bothering me. So untidy. I have the cash. I could easily pay it off today. But damn it, I am not paying early. I'm earning double in interest than I'm paying. This coming week the February payment will post, so I'll only have 1 line sitting there, teasing me.

I had a similar feeling with my student loans last year. My loans were on Covid forbearance until September 2023 (so zero interest), I had the lump sum to pay them off around January 2023, and I had to watch that big negative number just sit there for 9 months. At least the monthly interest payment from my savings account was encouraging.

[Chaplin]

Yeah, you and me both. I'd also like a quality bike with 3 to 7 gears for the same price as a crap bike with 21.

The front gear shifter on my 18 speed died.  The top 7 gears work for me.
If I’m desperate, I might manually (greasy fingers) go to the middle of the 3 front gears.  I have no idea what the smallest front gear is good for, except to feel hamster-wheel-ish.

Even though I could afford a nicer bike, and I’m often encouraged to do so, I demure, as how would I get exercise then?

For my commuter bike (which had been my mountain bike 20 years earlier) I just removed the front derailleur and left the chain on the middle chainring. It worked great for another several thousand km. The gear range was plenty for getting around town. That might just be me though as I now ride around town mostly on a single-speed which I like even more. Nevertheless, extending the life of an existing bike is a nice win in several ways.

[Dave1442397]

Yeah, you and me both. I'd also like a quality bike with 3 to 7 gears for the same price as a crap bike with 21.

The front gear shifter on my 18 speed died.  The top 7 gears work for me.
If I’m desperate, I might manually (greasy fingers) go to the middle of the 3 front gears.  I have no idea what the smallest front gear is good for, except to feel hamster-wheel-ish.

Even though I could afford a nicer bike, and I’m often encouraged to do so, I demure, as how would I get exercise then?

For my commuter bike (which had been my mountain bike 20 years earlier) I just removed the front derailleur and left the chain on the middle chainring. It worked great for another several thousand km. The gear range was plenty for getting around town. That might just be me though as I now ride around town mostly on a single-speed which I like even more. Nevertheless, extending the life of an existing bike is a nice win in several ways.

It's usually pretty easy to replace a derailleur, as long as you can find a suitable replacement part. I replaced the worn out rear derailleur on my 2014 bike a while back. It shifts like new again, even though it has 39,452 miles on it.

[ChpBstrd]

Yeah, you and me both. I'd also like a quality bike with 3 to 7 gears for the same price as a crap bike with 21.

The front gear shifter on my 18 speed died.  The top 7 gears work for me.
If I’m desperate, I might manually (greasy fingers) go to the middle of the 3 front gears.  I have no idea what the smallest front gear is good for, except to feel hamster-wheel-ish.

Even though I could afford a nicer bike, and I’m often encouraged to do so, I demure, as how would I get exercise then?

For my commuter bike (which had been my mountain bike 20 years earlier) I just removed the front derailleur and left the chain on the middle chainring. It worked great for another several thousand km. The gear range was plenty for getting around town. That might just be me though as I now ride around town mostly on a single-speed which I like even more. Nevertheless, extending the life of an existing bike is a nice win in several ways.

In the mountain bike world, all the chatter is about how we NEED the range of gears offered by 12-speed systems. I ride my 12-speed exclusively between the ranges of 3rd and 9th gear, and have never been in a situation calling for gears outside that range.

[jeninco]

Yeah, you and me both. I'd also like a quality bike with 3 to 7 gears for the same price as a crap bike with 21.

The front gear shifter on my 18 speed died.  The top 7 gears work for me.
If I’m desperate, I might manually (greasy fingers) go to the middle of the 3 front gears.  I have no idea what the smallest front gear is good for, except to feel hamster-wheel-ish.

Even though I could afford a nicer bike, and I’m often encouraged to do so, I demure, as how would I get exercise then?

For my commuter bike (which had been my mountain bike 20 years earlier) I just removed the front derailleur and left the chain on the middle chainring. It worked great for another several thousand km. The gear range was plenty for getting around town. That might just be me though as I now ride around town mostly on a single-speed which I like even more. Nevertheless, extending the life of an existing bike is a nice win in several ways.

In the mountain bike world, all the chatter is about how we NEED the range of gears offered by 12-speed systems. I ride my 12-speed exclusively between the ranges of 3rd and 9th gear, and have never been in a situation calling for gears outside that range.

Ha, when I had my (road) bike built (it was 15 years ago and the thing has over 20,000 pain-free for me miles on it, and I am a  non-standard size and shape, so I view that as WEP) I got in a semi-argument with the tech. Him "you can get almost the same variety of ratios with a double chain ring." Me "I want to ride up Doc Bill's Hill [the steepest piece of paved road in the county] with my ass in the seat".  Him: "Righty-o" .

I got my third chain ring, obviously -- I'm female and was already over 40 by the time of that conversation: I can't be dick-shamed any more. ("you know, if you were in really good shape..."  Yeah, F off. Sometimes I go for early-season rides, too!)

[ChpBstrd]

Yeah, you and me both. I'd also like a quality bike with 3 to 7 gears for the same price as a crap bike with 21.

The front gear shifter on my 18 speed died.  The top 7 gears work for me.
If I’m desperate, I might manually (greasy fingers) go to the middle of the 3 front gears.  I have no idea what the smallest front gear is good for, except to feel hamster-wheel-ish.

Even though I could afford a nicer bike, and I’m often encouraged to do so, I demure, as how would I get exercise then?

For my commuter bike (which had been my mountain bike 20 years earlier) I just removed the front derailleur and left the chain on the middle chainring. It worked great for another several thousand km. The gear range was plenty for getting around town. That might just be me though as I now ride around town mostly on a single-speed which I like even more. Nevertheless, extending the life of an existing bike is a nice win in several ways.

In the mountain bike world, all the chatter is about how we NEED the range of gears offered by 12-speed systems. I ride my 12-speed exclusively between the ranges of 3rd and 9th gear, and have never been in a situation calling for gears outside that range.

Ha, when I had my (road) bike built (it was 15 years ago and the thing has over 20,000 pain-free for me miles on it, and I am a  non-standard size and shape, so I view that as WEP) I got in a semi-argument with the tech. Him "you can get almost the same variety of ratios with a double chain ring." Me "I want to ride up Doc Bill's Hill [the steepest piece of paved road in the county] with my ass in the seat".  Him: "Righty-o" .

I got my third chain ring, obviously -- I'm female and was already over 40 by the time of that conversation: I can't be dick-shamed any more. ("you know, if you were in really good shape..."  Yeah, F off. Sometimes I go for early-season rides, too!)

Yea maybe it's something about my physique or how I ride.

When hamster wheeling in a very low gear on the MTB it feels like all my energy is going into lifting my legs up and down really fast, when I could spend less energy and go the same speed if I got off the bike and walked it. That makes low gear obsolete for me. At some level of steepness, the front wheel comes off the ground anyway.

Meanwhile the highest gear (i.e. 9-tooth sprocket driven by 32 tooth crank) would drive the bike maybe 40 mph at one crank revolution per second (29" wheel with tall tires). That might work for full time athletes doing downhill races on summertime ski slopes, but on the trails I ride there are no good quarter-mile stretches of long, wide downhill and you would eat a tree within seconds if you went that fast.

My road bike is a 2002 Torrelli Corsa Strada with 2x ultegra crank. It does not have a low gear, because it is a racing bike made for athletes. That makes it hard for my chubby self to climb basic hills in the lowest gear available. I would have to replace most of my top-of-the-line drivetrain to change that, so I just shame myself for being wimpy and stand on the pedals, lol. My personal fitness milestone is being able to climb "snake hill" near me on the Corsa Strada. It involves some zig zagging and I'm wheezing at the top.

My MPP is having amazing bikes whose use cases exceed my ability.

[GuitarStv]

See if you can put a compact chainset on the cranks - that'll help a lot with easier gearing if it has a honkin' 52 big ring.

[Taran Wanderer]

I’ve been mountain biking for over 30 years, and I can’t say that I’ve ever had a gear that’s too low. When you’re grinding up a hill so steep that you’re carefully balancing front wheel lift off vs. real wheel spin vs. sustained max output energy, the lowest of the low gears is hardly low enough.  That said, back in the days of triple front chainrings, I gave up on the big ring because I don’t need to go 40-50 mph on a mountain bike (anymore), and that chainring position was more useful for a rock ring for the really technical sections.  Now, though, with a 1 x 11 drivetrain, I get the lowest of lows and all the high gearing I need without having to deal with a front shifter or chain suck between the chainrings.  Today’s mountain bike tech is awesome.

[jeroly]

My sweetie funded her son's 529 plan with $55k in contributions over the years, and now it's worth $159k.

We just found out that he didn't get into the super-pricey private university he wanted to attend, and barring a last-minute surprise acceptance from his other 'stretch' school, he will go to a state university but will pay the out-of-state rate that, with some scholarship bucks, will cost $46k/yr which she'll split with her baby daddy.

What that means is that the 529 is way overfunded, maybe up to twice what is needed for her share of his undergraduate costs by the time all the bills come in, if the fund continues to appreciate over the next four years.  Now, maybe he'll go on to graduate or professional school (which would solve the MPP) but otherwise we will need to repurpose the extra money -  we'll probably update the 529 to designate her nephew as the beneficiary of the remaining funds when he goes to college in a dozen years or so.

This is a much nicer problem to have than its non-Mustachian equivalent - not having enough in the 529 and needing to come up with extra bucks to pay the college bills...

[secondcor521]

My sweetie funded her son's 529 plan with $55k in contributions over the years, and now it's worth $159k.

We just found out that he didn't get into the super-pricey private university he wanted to attend, and barring a last-minute surprise acceptance from his other 'stretch' school, he will go to a state university but will pay the out-of-state rate that, with some scholarship bucks, will cost $46k/yr which she'll split with her baby daddy.

What that means is that the 529 is way overfunded, maybe up to twice what is needed for her share of his undergraduate costs by the time all the bills come in, if the fund continues to appreciate over the next four years.  Now, maybe he'll go on to graduate or professional school (which would solve the MPP) but otherwise we will need to repurpose the extra money -  we'll probably update the 529 to designate her nephew as the beneficiary of the remaining funds when he goes to college in a dozen years or so.

This is a much nicer problem to have than its non-Mustachian equivalent - not having enough in the 529 and needing to come up with extra bucks to pay the college bills...

You can now, subject to some constraints, rollover $35K of his 529 into his Roth IRA.

[pasadenafr]

Just filed my tax return, and I'm getting $5k back. For most people that would be awesome! But all I can think about is WTH?! Where did I screw up when I did the math to update my W4 when I got my bonus?!

Don't get me wrong, I'm happy I'll get $5k I didn't expect, but I'm also very, very annoyed at myself because that's money that would otherwise have been invested in Sep-Dec 2023.

Also, I sold $20k of IBonds on 12/28 BECAUSE I FORGOT I HAD PLANNED ON WAITING 3 DAYS UNTIL THE NEW YEAR.

[dividendman]

Just filed my tax return, and I'm getting $5k back. For most people that would be awesome! But all I can think about is WTH?! Where did I screw up when I did the math to update my W4 when I got my bonus?!

Don't get me wrong, I'm happy I'll get $5k I didn't expect, but I'm also very, very annoyed at myself because that's money that would otherwise have been invested in Sep-Dec 2023.

Also, I sold $20k of IBonds on 12/28 BECAUSE I FORGOT I HAD PLANNED ON WAITING 3 DAYS UNTIL THE NEW YEAR.

Not only did you take the tax in the previous year, if you held the IBonds until Jan 1st, you get the entire interest for January. Always redeem IBonds on the 1st!

[Apples]

I'm sure you guys are on it already, but look into what else the 529 can fund.  Laptop? Study abroad or cool extracurricular trip with a club to a conference or competition?  Travel to and from school?  Kid doesn't have to know you're using 529 funds for those things, but it could make life easier on your wallets the next few years.

[pasadenafr]

Just filed my tax return, and I'm getting $5k back. For most people that would be awesome! But all I can think about is WTH?! Where did I screw up when I did the math to update my W4 when I got my bonus?!

Don't get me wrong, I'm happy I'll get $5k I didn't expect, but I'm also very, very annoyed at myself because that's money that would otherwise have been invested in Sep-Dec 2023.

Also, I sold $20k of IBonds on 12/28 BECAUSE I FORGOT I HAD PLANNED ON WAITING 3 DAYS UNTIL THE NEW YEAR.

Not only did you take the tax in the previous year, if you held the IBonds until Jan 1st, you get the entire interest for January. Always redeem IBonds on the 1st!

I KNOOOOOOW! Don't rub it in 🤦🏻‍♀️

[merula]

I'm sure you guys are on it already, but look into what else the 529 can fund.  Laptop? Study abroad or cool extracurricular trip with a club to a conference or competition?  Travel to and from school?  Kid doesn't have to know you're using 529 funds for those things, but it could make life easier on your wallets the next few years.

https://www.irs.gov/credits-deductions/individuals/qualified-ed-expenses is a great resource. Laptop (or other required computer equipment or software), and study abroad if required by the student's degree program are qualified educational expenses. Extracurriculars and transportation are not. (Note that you can't get a tax credit for expenses paid with 529 money, so you should probably also plan on withdrawing ~$2500 less than the total expenses to really maximize your money.)

BUT you mentioned scholarship bucks. You can withdraw the equivalent amount of the scholarship from the fund and just pay regular income tax on it, no penalty. Personally, I think the Roth IRA rollover is a better option, as is holding onto the money in case the kid goes back for more education or eventually switching the beneficiary to a different family member.

[secondcor521]

(Note that you can't get a tax credit for expenses paid with 529 money, so you should probably also plan on withdrawing ~$2500 less than the total expenses to really maximize your money.)

The AOTC limit is $4000 of expenses, which ends up as a $2,500 credit if one can utilize it fully.

It looks to me like the rules now allow you to use 529 expenses for the AOTC expenses - you'd pay ordinary income taxes on the earnings portion because it's a non-qualified withdrawal, but it looks like you'd avoid the 10% penalty.  See item #5 page 53 of https://www.irs.gov/pub/irs-pdf/p970.pdf.

[Sugaree]

(Note that you can't get a tax credit for expenses paid with 529 money, so you should probably also plan on withdrawing ~$2500 less than the total expenses to really maximize your money.)

The AOTC limit is $4000 of expenses, which ends up as a $2,500 credit if one can utilize it fully.

It looks to me like the rules now allow you to use 529 expenses for the AOTC expenses - you'd pay ordinary income taxes on the earnings portion because it's a non-qualified withdrawal, but it looks like you'd avoid the 10% penalty.  See item #5 page 53 of https://www.irs.gov/pub/irs-pdf/p970.pdf.

From page 52:  "An American opportunity or lifetime learning credit (education credit) can be claimed in the same year the beneficiary takes a tax-free distribution from a QTP, as long as
the same expenses aren't used for both benefits."  Though I think you're right about paying taxes, but avoiding the penalty.  It seems like the easiest thing to do would be to cashflow the first $4000 and pull the rest from the 529.

[secondcor521]

(Note that you can't get a tax credit for expenses paid with 529 money, so you should probably also plan on withdrawing ~$2500 less than the total expenses to really maximize your money.)

The AOTC limit is $4000 of expenses, which ends up as a $2,500 credit if one can utilize it fully.

It looks to me like the rules now allow you to use 529 expenses for the AOTC expenses - you'd pay ordinary income taxes on the earnings portion because it's a non-qualified withdrawal, but it looks like you'd avoid the 10% penalty.  See item #5 page 53 of https://www.irs.gov/pub/irs-pdf/p970.pdf.

From page 52:  "An American opportunity or lifetime learning credit (education credit) can be claimed in the same year the beneficiary takes a tax-free distribution from a QTP, as long as
the same expenses aren't used for both benefits."  Though I think you're right about paying taxes, but avoiding the penalty.  It seems like the easiest thing to do would be to cashflow the first $4000 and pull the rest from the 529.

Right - you can't fully double dip (no AOTC and *tax free* 529 w/d), but you can at least sort of now (AOTC with *penalty free* 529 w/d).  The law changed sometime after my kids started college, so I just did things the simple conservative way you suggest - pay first $4K OOP then 529 the rest.

[fuzzy math]

Not my story and not a MPP but its a Canada story and remembering it still brings me giggle fits a couple months later.

A professional I work with was telling this story about how he went to Canada over a weekend. This brought about obligatory "what did you do in Canada?" questions. He said he went there "just to see if he could get in". He proceeded to tell that he went to the border and told the agents exactly that. I started questioning why he would be afraid of getting in, was he a criminal etc. He explained that yes he'd had a road rage conviction from 10+ years ago, some bogus thing where a psycho was trying to run him off the road and they both got cited for it. So he tells the customs people this, they pull him out of line and interrogate him for a couple hours and finally let him in. He then spent 15 mins in Canada, goes back to the US border and they ask him what he was doing in Canada. Same explanation LOL "I was just trying to see if I could get in" which of course prompts a ton of shit on the US side too. So then he says "So I'm good to go for my Canada trip in a few weeks! I just wanted to make a practice run to make sure".... to which I responded that he might still get flagged at the border when he tries to return based off what he told them. I absolutely could not believe he did not attempt to come up with a different reason for going there and straight up said he had a record.

[therethere]

Not my story and not a MPP but its a Canada story and remembering it still brings me giggle fits a couple months later.

A professional I work with was telling this story about how he went to Canada over a weekend. This brought about obligatory "what did you do in Canada?" questions. He said he went there "just to see if he could get in". He proceeded to tell that he went to the border and told the agents exactly that. I started questioning why he would be afraid of getting in, was he a criminal etc. He explained that yes he'd had a road rage conviction from 10+ years ago, some bogus thing where a psycho was trying to run him off the road and they both got cited for it. So he tells the customs people this, they pull him out of line and interrogate him for a couple hours and finally let him in. He then spent 15 mins in Canada, goes back to the US border and they ask him what he was doing in Canada. Same explanation LOL "I was just trying to see if I could get in" which of course prompts a ton of shit on the US side too. So then he says "So I'm good to go for my Canada trip in a few weeks! I just wanted to make a practice run to make sure".... to which I responded that he might still get flagged at the border when he tries to return based off what he told them. I absolutely could not believe he did not attempt to come up with a different reason for going there and straight up said he had a record.

Honestly this makes sense. Canada is pretty strict on certain driving convictions and you can get turned away pretty easily for them. Some convictions (DUI, reckless driving, etc) you need to get a rehabilition letter signed and approved by a certain level of border agent and it needs to be 10 years past the incident date. IIRC you can only get it by attempting to cross. You need this letter on you for any future trips into Canada. So although it sounds crazy, it's a valid reason if he was going with the intent of getting the approved letter for a future trip.

[Josiecat22222]

Honestly, this tracks.  I have only been to Canada once and it was with my husband and son to visit the coast and go camping.  We drove from our home in the Mid Atlantic and I was expecting a quick border crossing, since we generally pass borders/customs etc with no issues.  They asked a ton of questions, took out all of our camping gear, took our bikes off the racks, opened our personal bags and read our papers (legit asked about our dog and why he wasn't travelling with us,etc).  It was FAR more intense than I'd expected, thinking our friendly neighbors to the north were just like another state and we'd be through in 5 min.  #americanarrogance.

[LennStar]

They have to protect themselves from Americans who want to steal Socialism.

That sentence is 3 jokes in one, and I guess most people only get half a joke. :(

One joke is about/from a song of Reinhard May about the Berlin Wall, the "antifascistic protection wall", where the East German soldiers have to protect the GDR from the West (and the joke is of course: from what).

[Gerard]

Although even after years of this (and actually being retired now and all), I still get that little "zing!" when I find a money-saving or investment thing that's *completely* new to me, like, "holy cow, that wasn't even on my radar!'

Where are you finding new things?  I feel like we already know all the frugal tricks we're ever going to find.

Some of it's down to my being clueless to start with, and some of it is pushing boundaries.

In the past six months or so: I finally understood how Canadian pension splitting works. I found a new giant Asian supermarket with good meat even cheaper than my usual joint. I learned how to add pureed pork skin to meatballs or black beans. I realized I can get to a Costco business centre and buy good cheap bacon trimmings. I discovered online undeliverable freight auctions.We switched from Airbnb to booking private rooms in hostels.

I wish I could say I found a great frugality source where I picked up all these things, but it was really just a matter of trying things, reading, following intriguing rabbit holes.

[Catbert]

Gerard - Thanks for tip about Costco Business Center bacon trimmings.  I rarely go to their business center (too far) but always find interesting things when I do go.  I just checked and mine has 5 lbs for just under $15.  I'll look for it next time.

[merula]

How do you check to see what your Costco Business Center has? I always go with the attitude that I'll find out when I get there, but then it's only like 3 mi from my house.

[Gerard]

How do you check to see what your Costco Business Center has? I always go with the attitude that I'll find out when I get there, but then it's only like 3 mi from my house.

Where I live there's only one business centre, so whatever they have available for delivery in Toronto, they most likely have in the Toronto branch.

[Siebrie]

About 6 months ago I started using the Too Good To Go app, which lets food businesses sell their left-overs at the end of the day for heavily discounted prices. We started by trying out the bakeries in the neighbouring village. Out of the 5 we tried, we have only 1 we like, the others were too greasy, weird (to our taste; they are mainly North-African bakeries) herb/cheese combos, etc.

My MPP: too much cake! I want bread! The cakes need to be eaten that same evening, the fruit and cream won't hold to the next day.

(but for €3,29 I get a birthday cake, 2 baguettes, 4 croissants, a flower loaf, 4 buns, a wholemeal loaf and a small white loaf. I'm not complaining too much; I freeze the lot.)

[ChpBstrd]

Just realized Mint.com categorized all my late 2023 trades in US treasuries as "taxes" instead of investments. Silly Mint. Made my spending trend chart look like I got a heroin habit and a CEO job within two months.

[LennStar]

Which one first?

[Raenia]

About 6 months ago I started using the Too Good To Go app, which lets food businesses sell their left-overs at the end of the day for heavily discounted prices. We started by trying out the bakeries in the neighbouring village. Out of the 5 we tried, we have only 1 we like, the others were too greasy, weird (to our taste; they are mainly North-African bakeries) herb/cheese combos, etc.

My MPP: too much cake! I want bread! The cakes need to be eaten that same evening, the fruit and cream won't hold to the next day.

(but for €3,29 I get a birthday cake, 2 baguettes, 4 croissants, a flower loaf, 4 buns, a wholemeal loaf and a small white loaf. I'm not complaining too much; I freeze the lot.)

Thanks to you, I signed up for this app, and now my MPP is I'm trying to decide how far I'm willing to drive for a pickup. Also the pickup windows are either in the middle of the day or late evening, so will I really want to leave the house at 8/9pm?

Totally makes sense from the business's perspective, they want to wait until after dinner hours to see what's left over. But I'm an early bird who'd rather be getting ready for bed, not getting in the car!

[dandarc]

Just realized Mint.com categorized all my late 2023 trades in US treasuries as "taxes" instead of investments. Silly Mint. Made my spending trend chart look like I got a heroin habit and a CEO job within two months.

I use wave accounting and the cash-flow chart did the same thing when I terminated my soloK and transferred it all over to Vanguard a few years ago. Income / expenses were right, but wow was that a strange way to show cash-flow on a net-zero transaction.

[Sandi_k]

My credit union "Money Feed" to the Tiller app crashed for more than a week. So I couldn't run weekend reports on our spending for two weekends this month.

I finally reported it, and it was fixed within two days. ;)

[Taran Wanderer]

This stupid forum has helped me save too much money and now I no longer have any motivation to work.

[LennStar]

This stupid forum has helped me save too much money and now I no longer have any motivation to work.

Why is that a problem? Just do your hobby.

[Poundwise]

About 6 months ago I started using the Too Good To Go app, which lets food businesses sell their left-overs at the end of the day for heavily discounted prices. We started by trying out the bakeries in the neighbouring village. Out of the 5 we tried, we have only 1 we like, the others were too greasy, weird (to our taste; they are mainly North-African bakeries) herb/cheese combos, etc.

My MPP: too much cake! I want bread! The cakes need to be eaten that same evening, the fruit and cream won't hold to the next day.

(but for €3,29 I get a birthday cake, 2 baguettes, 4 croissants, a flower loaf, 4 buns, a wholemeal loaf and a small white loaf. I'm not complaining too much; I freeze the lot.)

Ha, the same thing happened to us!  We got five pies and were complaining because we ate too much pie.  Also we got TGTG from a sushi place and that was a mistake... the day old raw fish was not appetizing even if it won't make us sick.

[FireLane]

About 6 months ago I started using the Too Good To Go app, which lets food businesses sell their left-overs at the end of the day for heavily discounted prices. We started by trying out the bakeries in the neighbouring village. Out of the 5 we tried, we have only 1 we like, the others were too greasy, weird (to our taste; they are mainly North-African bakeries) herb/cheese combos, etc.

My MPP: too much cake! I want bread! The cakes need to be eaten that same evening, the fruit and cream won't hold to the next day.

(but for €3,29 I get a birthday cake, 2 baguettes, 4 croissants, a flower loaf, 4 buns, a wholemeal loaf and a small white loaf. I'm not complaining too much; I freeze the lot.)

That's funny, because I have the opposite problem.

Where I live, TGTG has tons of bagel places. If I wanted a sack of a dozen bagels, I could take my pick. But that's too many for my family to eat before they go stale, and I don't have the space to freeze them. I would take pastries if there were more of them!