Author Topic: Mustachian People Problems (just for fun)  (Read 4865799 times)

Dicey

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Re: Mustachian People Problems (just for fun)
« Reply #8450 on: February 27, 2021, 05:35:57 PM »
I think we should talk about it. People need to know what the possibilities are. How do they change their ways if they donít see the benefits?

Agreed! I don't like that money is such a taboo subject. I've always talked about it, even when I had none. Talking to my boss as a 16 year old about his net worth, exactly what he made per year, his investments, etc... that was one of the big things that helped get me here.
I talk about finances, particularly as it relates to early retirement, to anyone who has half an interest. I NEVER tell them how much money I have. Only you guys. Sorta.

Dicey

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Re: Mustachian People Problems (just for fun)
« Reply #8451 on: February 28, 2021, 03:01:05 AM »
@Tinker, which edition are you reading? Joe D died relatively young and never owned his own home. He also lived  during a time when there was very little information on investing and higher fees/barriers to entry. His partner, Vicki Robin, has updated the original book in recent years.

Just like The Tightwad Gazette, the book is based on sound principles, but hasn't kept up with the times. Fortunately, YMOYL has been updated.
Revised 2008. With exception of the advise on investments, i think the book has aged well.
Nothing new to a reader of MMM, but nice to have some outside/foundational sources regardless.
Plus i did enjoy crafting my wall graph artifact. First record of my journey to FI(RE) outside of bits and bytes.
The latest edition came out in 2018, IIRC. It was a major rewrite. Funny, just yesterday, DH and I were checking out the SS website and downloading our lifetime earnings.  Reminded me of YMOYL.

dragoncar

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Re: Mustachian People Problems (just for fun)
« Reply #8452 on: February 28, 2021, 03:10:10 AM »
I think we should talk about it. People need to know what the possibilities are. How do they change their ways if they donít see the benefits?

Agreed! I don't like that money is such a taboo subject. I've always talked about it, even when I had none. Talking to my boss as a 16 year old about his net worth, exactly what he made per year, his investments, etc... that was one of the big things that helped get me here.
I talk about finances, particularly as it relates to early retirement, to anyone who has half an interest. I NEVER tell them how much money I have. Only you guys. Sorta.

I don't like to use raw numbers either but if anyone is paying attention it's painfully obvious.  I don't work.  My home purchase price is public information.  Estimate my lifestyle expenses and multiply by 25 to get my approximate (minimum) net worth.

If anything, people will probably overestimate my NW assuming I spend more than I do (I pretty much only spend money when I find a great deal).  I've had ex-coworkers try to be subtle like "I remember you were talking about bitcoin way back in the day, did you ever end up buying some?"   For the record, no i never bought bitcoin although maybe I'd be super rich if I followed that lark to throw $5k at it really early on (I've got like $10k in coin lost to the data demons on an old hard drive somewhere)
« Last Edit: February 28, 2021, 03:12:59 AM by dragoncar »

merula

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Re: Mustachian People Problems (just for fun)
« Reply #8453 on: March 01, 2021, 07:09:50 AM »
My MPP: I'm close to the two comma club according to Personal Capital, but I can't really appreciate it because I think Zillow is overvaluing my house by probably 30%, so it doesn't feel real.

But then at some point I'm going to hit, like, 1.07m, and that's not going to feel like a meaningful accomplishment either.

TomTX

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Re: Mustachian People Problems (just for fun)
« Reply #8454 on: March 01, 2021, 12:02:00 PM »
My MPP: I'm close to the two comma club according to Personal Capital, but I can't really appreciate it because I think Zillow is overvaluing my house by probably 30%, so it doesn't feel real.

But then at some point I'm going to hit, like, 1.07m, and that's not going to feel like a meaningful accomplishment either.

Based on reports I'm hearing around Austin - my house probably added 30% in value over the past year. Possibly more. Listing prices alone for nearby properties would make me think 25-30% - but I keep reading laments on Reddit from house-hunters who are getting outbid by a significant margin despite making ~$50k, all-cash offers on just about anything that comes on the market. One RE agent was telling me about a house that was listed $50k above recent comps, her client bid the $50k above listing price, all cash. Same day had an offer for $80k above listing.

Lots of big tech companies moving from the Bay Area to Austin along with the employees making FAANG-like salaries, and houses simply aren't being built at an appreciable rate. Bidding $600k on what was a $450k house a year ago doesn't phase them - they're used to houses half the size going for twice the price.

I guess that's my MPP today: I'm probably at least $50k off on any net worth calculation I do.

Plina

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Re: Mustachian People Problems (just for fun)
« Reply #8455 on: March 01, 2021, 02:26:20 PM »
My MPP: I'm close to the two comma club according to Personal Capital, but I can't really appreciate it because I think Zillow is overvaluing my house by probably 30%, so it doesn't feel real.

But then at some point I'm going to hit, like, 1.07m, and that's not going to feel like a meaningful accomplishment either.

Based on reports I'm hearing around Austin - my house probably added 30% in value over the past year. Possibly more. Listing prices alone for nearby properties would make me think 25-30% - but I keep reading laments on Reddit from house-hunters who are getting outbid by a significant margin despite making ~$50k, all-cash offers on just about anything that comes on the market. One RE agent was telling me about a house that was listed $50k above recent comps, her client bid the $50k above listing price, all cash. Same day had an offer for $80k above listing.

Lots of big tech companies moving from the Bay Area to Austin along with the employees making FAANG-like salaries, and houses simply aren't being built at an appreciable rate. Bidding $600k on what was a $450k house a year ago doesn't phase them - they're used to houses half the size going for twice the price.

I guess that's my MPP today: I'm probably at least $50k off on any net worth calculation I do.

I am contemplating moving closer to my family to a smaller town and I can double the size of my apartment for cheaper then my current apartment. This size would cost less than half in the city center. I could also buy a house for basically the same cost in the city center, while I canít afford a house here in a neighbourhood were I want to live. I would need to move out to the suburbs and I would still have to pay a lot more than I want. So I totally understand the sentiment that prices that seems crazy for a local seems cheap for somesome from the outside.

To buy this apartment I paid 15000 USD over the list price to get it before the official viewing. I signed the papers about two hours after seeing it. I had not time to see a lot of apartments as I needed one asap so I looked at three apartments in close approximity to the one other with 30 minutes between in a neighbourhood were I could see myself living. I calculated that I would save the commission to the realtor in a year instead of paying absurd rents by subletting so after that period I could sell and buy another if I didnít like this.


fuzzy math

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Re: Mustachian People Problems (just for fun)
« Reply #8456 on: March 02, 2021, 08:15:21 PM »
My MPP: I'm close to the two comma club according to Personal Capital, but I can't really appreciate it because I think Zillow is overvaluing my house by probably 30%, so it doesn't feel real.

But then at some point I'm going to hit, like, 1.07m, and that's not going to feel like a meaningful accomplishment either.

I don't list my home in personal capital for this reason. Your net worth isn't super helpful for an asset that you can't easily cash out. Would you feel more accomplished if you deleted it and waited to hit it in $1MM of investments?

However I will say that I live in a small city in the midwest and am in the process of selling home for $50k more than it appraised for in Jan 2020 when I refinanced. I thought my Zillow estimate was nuts too, and my realtor gave me a big speech about how they're not accurate, but the 7 offers on my home spoke otherwise.

fuzzy math

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Re: Mustachian People Problems (just for fun)
« Reply #8457 on: March 02, 2021, 08:21:21 PM »
My MPP is that I've been looking for an out to leave full time work next year, but will only be 20x expenses for LeanFI or 16x expenses for kids still at home FI. My husband will continue working (I worked for many years while he stayed home). I'm not sure that its a good idea financially or how I'd evaluate. I'm OMY from having to make the OMY decision! I'm not sure what I would do to pass the time while he's working (he's remote so I'd probably pester him), and don't know what kind of employment I'd even be interested in. I've been dreaming of FIRE for so long and looking at finances its surreal that I COULD make that decision, whether I SHOULD or not.

techwiz

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Re: Mustachian People Problems (just for fun)
« Reply #8458 on: March 03, 2021, 07:25:31 AM »
Just got a letter from my credit card company informing me that because of my low spending I no longer qualify for the Elite status.  They will be sending a regular card to replace my cool looking "Elite" card.  I never asked or requested this fancy card it was given to me after I had spent a bunch of money on the kitchen reno a couple of years ago. This past year I hardly used it, truly a MPP!

When I first read the letter I felt what they are taking something away from me.... it took about two seconds for that feeling of loss to be replaced by this does not affect me and I don't care! 

Morning Glory

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Re: Mustachian People Problems (just for fun)
« Reply #8459 on: March 03, 2021, 10:54:30 AM »
My MPP is that I've been looking for an out to leave full time work next year, but will only be 20x expenses for LeanFI or 16x expenses for kids still at home FI. My husband will continue working (I worked for many years while he stayed home). I'm not sure that its a good idea financially or how I'd evaluate. I'm OMY from having to make the OMY decision! I'm not sure what I would do to pass the time while he's working (he's remote so I'd probably pester him), and don't know what kind of employment I'd even be interested in. I've been dreaming of FIRE for so long and looking at finances its surreal that I COULD make that decision, whether I SHOULD or not.

I have a similar MPP. When we sell our house I will be extremely close to 25x expenses and I don't know what I want to do with the rest of my life!!!! My husband has stayed home with the kids for the last five years while I worked so maybe it's time for him to get a job and I could be a SAHM, or we could just travel and live in an RV, or I could get my doctorate, or he could go to school (those last two would involve me still working). So many choices...

Sibley

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Re: Mustachian People Problems (just for fun)
« Reply #8460 on: March 04, 2021, 02:59:07 PM »
My MPP is that I have too many small bank accounts and too much 'stache to pay attention; clearly I'm not organized enough to ever do any churning, lol.

Recently realized that I had an account that I had inherited from a relative which had gone through numerous bank closures and acquisitions and ended up with Bank of America. Hardly ever used it but did make a large withdrawal last year to open an account with a local credit union which is far more convenient.

It was only during my year-end financial review process that I realized I was being charged a whopping $25/month for this dinosaur due to the balance falling below $5k. Finally called today and tried to finagle a refund of the fees; they would not so I just closed it. Darn thing was originally opened in 1955 and the type of account is not even offered anymore. Chalk it up to not being diligent in reviewing my monthly statements!

Is there a reason why you haven't organized these accounts better? Because if it's just you haven't gotten around to it - please get around to it. Having things organized will make things much easier for you. I mean, you already got charged $25 per month for how long because you didn't pay enough attention to this account.

fuzzy math

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Re: Mustachian People Problems (just for fun)
« Reply #8461 on: March 04, 2021, 03:58:45 PM »

 I also want to make it less stressful on my executor - it's a whole lot easier to see which things show up in the mail than wade through all the online accounts and try to re-set passwords.

I had never considered this before!

ixtap

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Re: Mustachian People Problems (just for fun)
« Reply #8462 on: March 04, 2021, 06:04:02 PM »
I reset a BoA card to online shopping 3 days ago and still haven't actually got around to ordering the things I expected to buy.

halftimer

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Re: Mustachian People Problems (just for fun)
« Reply #8463 on: March 04, 2021, 09:37:39 PM »
On an individual level, it's best to not let people know that you have more money than them, even if you're trying to educate them on how they can be more like you. On a societal level, it's better to be more open about finances so we can all learn from each other.

I'm selfish, so I mostly keep quiet about how well we're doing, except for a literal few people (even then, we don't give the whole picture).

Wise advice! We are not high income, but people have noticed before that we stay out of debt and 'know money things' so sometimes friends or family ask for advice. We send MMM article links and remind them that not buying on credit means you can have 17% more stuff instead of paying that to credit card interest and fees - basic stuff. Well, a family member recently asked about investing, and we know they definitely out-earn us by a lot so we weren't shy about sharing how we log in and buy index funds and a few other things.  They saw our balance number briefly and were of course surprised. What do you know, within a few weeks they were short on cash flow for their 'investment' (they chose a business plan, not index funds - which is a level of risk we are not comfortable with) and asked to borrow a few thousand for a short term loan. They paid it back with interest, but now months later the cash flow needs help again and it seems we are the only stop-gap option. Again. If I wanted to invest in a business, I would have. Did I mention we weathered months of unemployment, weeks of covid quarantine without income, and now a lower income since the first loan?

lemanfan

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Re: Mustachian People Problems (just for fun)
« Reply #8464 on: March 05, 2021, 12:23:45 AM »
Well, the person who I selected to handle my affairs asked for a list of passwords; not only is that a daunting task (since every damn thing has its own syntax and re-set requirements, it's always in flux) but I wondered if having such a thing was a good idea. Would I want to store it on my computer? Handwrite it? Print it out and hide it in a book where I'd likely forget I'd stored it? Hmmm.  I thought back to settling my mom's estate a decade ago and it was hard enough getting things handled without a single online account.

Password manger softwares are essential these days.  Lastpass, 1password, Bitwarden and Keepass are common options. 

Depending on which solution you select, there are different ways to have someone else access them when needed by just knowing the "master password".   That said, an organized person might handle it with just a regular paper notebook, as long as it's updated regularly.  :)
« Last Edit: March 05, 2021, 12:25:37 AM by lemanfan »

chasingthegoodlife

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Re: Mustachian People Problems (just for fun)
« Reply #8465 on: March 05, 2021, 02:39:46 AM »
On an individual level, it's best to not let people know that you have more money than them, even if you're trying to educate them on how they can be more like you. On a societal level, it's better to be more open about finances so we can all learn from each other.

I'm selfish, so I mostly keep quiet about how well we're doing, except for a literal few people (even then, we don't give the whole picture).

Wise advice! We are not high income, but people have noticed before that we stay out of debt and 'know money things' so sometimes friends or family ask for advice. We send MMM article links and remind them that not buying on credit means you can have 17% more stuff instead of paying that to credit card interest and fees - basic stuff. Well, a family member recently asked about investing, and we know they definitely out-earn us by a lot so we weren't shy about sharing how we log in and buy index funds and a few other things.  They saw our balance number briefly and were of course surprised. What do you know, within a few weeks they were short on cash flow for their 'investment' (they chose a business plan, not index funds - which is a level of risk we are not comfortable with) and asked to borrow a few thousand for a short term loan. They paid it back with interest, but now months later the cash flow needs help again and it seems we are the only stop-gap option. Again. If I wanted to invest in a business, I would have. Did I mention we weathered months of unemployment, weeks of covid quarantine without income, and now a lower income since the first loan?
Perhaps your current changed circumstances are the perfect excuse to decline this new request? ĎIím so sorry, weíre on a lower income since the job loss and we donít have any liquid cash right nowí

(Tough situation, I hate saying no to people too!)

Also, Iím not quite sure what a business plan is, but perhaps this is another Ďlearning momentí about not buying on credit. Get the cash first, THEN choose how to invest it.

SwordGuy

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Re: Mustachian People Problems (just for fun)
« Reply #8466 on: March 05, 2021, 06:24:02 AM »
On an individual level, it's best to not let people know that you have more money than them, even if you're trying to educate them on how they can be more like you. On a societal level, it's better to be more open about finances so we can all learn from each other.

I'm selfish, so I mostly keep quiet about how well we're doing, except for a literal few people (even then, we don't give the whole picture).

Wise advice! We are not high income, but people have noticed before that we stay out of debt and 'know money things' so sometimes friends or family ask for advice. We send MMM article links and remind them that not buying on credit means you can have 17% more stuff instead of paying that to credit card interest and fees - basic stuff. Well, a family member recently asked about investing, and we know they definitely out-earn us by a lot so we weren't shy about sharing how we log in and buy index funds and a few other things.  They saw our balance number briefly and were of course surprised. What do you know, within a few weeks they were short on cash flow for their 'investment' (they chose a business plan, not index funds - which is a level of risk we are not comfortable with) and asked to borrow a few thousand for a short term loan. They paid it back with interest, but now months later the cash flow needs help again and it seems we are the only stop-gap option. Again. If I wanted to invest in a business, I would have. Did I mention we weathered months of unemployment, weeks of covid quarantine without income, and now a lower income since the first loan?
Perhaps your current changed circumstances are the perfect excuse to decline this new request? ĎIím so sorry, weíre on a lower income since the job loss and we donít have any liquid cash right nowí

(Tough situation, I hate saying no to people too!)

Also, Iím not quite sure what a business plan is, but perhaps this is another Ďlearning momentí about not buying on credit. Get the cash first, THEN choose how to invest it.

"I am not a bank.   Go to a bank."

And if they say the bank won't loan them the money...

"Well, that's a damn good reason why I shouldn't loan it to you either."

Sibley

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Re: Mustachian People Problems (just for fun)
« Reply #8467 on: March 05, 2021, 10:27:00 AM »
My MPP is that I have too many small bank accounts and too much 'stache to pay attention; clearly I'm not organized enough to ever do any churning, lol.

Recently realized that I had an account that I had inherited from a relative which had gone through numerous bank closures and acquisitions and ended up with Bank of America. Hardly ever used it but did make a large withdrawal last year to open an account with a local credit union which is far more convenient.

It was only during my year-end financial review process that I realized I was being charged a whopping $25/month for this dinosaur due to the balance falling below $5k. Finally called today and tried to finagle a refund of the fees; they would not so I just closed it. Darn thing was originally opened in 1955 and the type of account is not even offered anymore. Chalk it up to not being diligent in reviewing my monthly statements!

Is there a reason why you haven't organized these accounts better? Because if it's just you haven't gotten around to it - please get around to it. Having things organized will make things much easier for you. I mean, you already got charged $25 per month for how long because you didn't pay enough attention to this account.
Honestly sheer laziness. Before I retired I was quite obsessive about tracking all of my accounts at least quarterly if not monthly, putting all my expenses into Quicken or a similar product, watching my net worth grow, etc.  And this account has never, ever had a fee charged on it. For the last few years I've become complacent, only doing a deep dive at year-end.

I also find that opting out of paper statements is not the best for me, especially as I grow older. I have a few too many things on autopilot and I'm going to start opting back to paper for some accounts. I also want to make it less stressful on my executor - it's a whole lot easier to see which things show up in the mail than wade through all the online accounts and try to re-set passwords.

The single biggest thing you can do to make things less stressful on your executor is to consolidate multiple accounts. Stop being lazy and design what makes the most sense, then get everything moved over and close out the unnecessary accounts.

Plina

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Re: Mustachian People Problems (just for fun)
« Reply #8468 on: March 05, 2021, 12:59:17 PM »
My MPP is that I have too many small bank accounts and too much 'stache to pay attention; clearly I'm not organized enough to ever do any churning, lol.

Recently realized that I had an account that I had inherited from a relative which had gone through numerous bank closures and acquisitions and ended up with Bank of America. Hardly ever used it but did make a large withdrawal last year to open an account with a local credit union which is far more convenient.

It was only during my year-end financial review process that I realized I was being charged a whopping $25/month for this dinosaur due to the balance falling below $5k. Finally called today and tried to finagle a refund of the fees; they would not so I just closed it. Darn thing was originally opened in 1955 and the type of account is not even offered anymore. Chalk it up to not being diligent in reviewing my monthly statements!

Is there a reason why you haven't organized these accounts better? Because if it's just you haven't gotten around to it - please get around to it. Having things organized will make things much easier for you. I mean, you already got charged $25 per month for how long because you didn't pay enough attention to this account.
Honestly sheer laziness. Before I retired I was quite obsessive about tracking all of my accounts at least quarterly if not monthly, putting all my expenses into Quicken or a similar product, watching my net worth grow, etc.  And this account has never, ever had a fee charged on it. For the last few years I've become complacent, only doing a deep dive at year-end.

I also find that opting out of paper statements is not the best for me, especially as I grow older. I have a few too many things on autopilot and I'm going to start opting back to paper for some accounts. I also want to make it less stressful on my executor - it's a whole lot easier to see which things show up in the mail than wade through all the online accounts and try to re-set passwords.

The single biggest thing you can do to make things less stressful on your executor is to consolidate multiple accounts. Stop being lazy and design what makes the most sense, then get everything moved over and close out the unnecessary accounts.

It would probably violate some kind of legal agreement to give an exekutor access through your passwords. At least here access is cut off by the banks when you die. I have a list of holders of my accounts on the computer, that I should print out, made for a power of attorney given to my father in case I become unavailable to handle my finances. Here, banks and a lot of other institutions are notified of your death and they automatically send out bank statements to the estate.

Plina

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Re: Mustachian People Problems (just for fun)
« Reply #8469 on: March 05, 2021, 01:05:42 PM »
I have made investments in solar energy in different african solar companies. Now I have about 50 euros of interest payments and repayments of the loans sitting in my account at the intermediary company because they donít currently have any loans to reinvest in. That has been the case for over two months. It is really annoying to have the money to just sit there and not work. I would rather avoid taking them out for reinvestment elsewhere because I like the impact investment model but if they donít have any new investment opportunities before the end of the month I will take them out.

dragoncar

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Re: Mustachian People Problems (just for fun)
« Reply #8470 on: March 06, 2021, 01:22:46 AM »
Yeah having passwords can be a convenient way to gives executors information but ultimately to change ownership of the account they will still have to do a lot of legwork.  Itís not like thereís a ďclick here to transfer entire accountĒ button.

Going through probate/inheritance scares the bejesus out of me but I suspect having named beneficiaries and account records accessible is the most helpful thing to do.  I would only make an actual list of passwords if I was on my deathbed

LennStar

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Re: Mustachian People Problems (just for fun)
« Reply #8471 on: March 06, 2021, 04:10:57 AM »
I have made investments in solar energy in different african solar companies. Now I have about 50 euros of interest payments and repayments of the loans sitting in my account at the intermediary company because they donít currently have any loans to reinvest in. That has been the case for over two months. It is really annoying to have the money to just sit there and not work. I would rather avoid taking them out for reinvestment elsewhere because I like the impact investment model but if they donít have any new investment opportunities before the end of the month I will take them out.

That won't save you from your problem, but...
I have investments at a similar company (Berlin based) https://www.ecoligo.investments/ and they don't seem to have the problem of running out of projects ;) They also put the interest in your bank account. Maybe there is a similar company in your country too?

Sugaree

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Re: Mustachian People Problems (just for fun)
« Reply #8472 on: March 11, 2021, 03:55:53 AM »
I realized a few minutes ago that today is payday.  I thought it was next week. 

LennStar

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Re: Mustachian People Problems (just for fun)
« Reply #8473 on: March 11, 2021, 04:53:17 AM »
I realized a few minutes ago that today is payday.  I thought it was next week.
I haven't been in my account for 2 weeks so I don't know if the last payment arrived. Of course I am sure it did, but so far it's a bit of a SchrŲdinger's payment. ;)
Funny thing is that it can be anywhere between the 20th and month end (e.g. Christmas), depending on when the weekend is and when our "office lady" and the tax office who does the payroll get around doing it.

For a lot of people you can read about in "overheard at work" that fluctuation would be devastatingly stressy.

turketron

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Re: Mustachian People Problems (just for fun)
« Reply #8474 on: March 11, 2021, 07:30:49 AM »
My company is giving out company-wide bonuses this month, in part to make up for the COVID pay raise freeze that was in place for 2020. Since we have a healthy stash and emergency fund I decided to use it to front-load my 401k contributions (they do a true-up so I'm not worried about that) which I normally max out around September or so.

I went to change my contributions for this next paycheck when I'm supposed to get my bonus, and the max it'll let me contribute is 70% of my paycheck =/

Sugaree

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Re: Mustachian People Problems (just for fun)
« Reply #8475 on: March 11, 2021, 08:17:52 AM »
That reminds me.  I'm irrationally annoyed at this advance child credit thing.  I don't mind getting the credit early, but now I've go in and change my withholdings again.

TomTX

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Re: Mustachian People Problems (just for fun)
« Reply #8476 on: March 11, 2021, 11:31:33 AM »
So, I failed to change my paycheck contributions from 457 to 401k in time, I'm gonna actually get a paycheck bigger than a token amount.

Yeah, I know - I could have split the contributions evenly from the start, but I am prioritizing the 457 for the withdrawal flexibility.

We have a dumb "prior prior month" system that must date back to the stone ages. It's all computers these days folks - I shouldn't need to do this 2 months in advance. Changes I make in March don't show up til the May paycheck.

LennStar

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Re: Mustachian People Problems (just for fun)
« Reply #8477 on: March 12, 2021, 03:45:24 AM »
So, I failed to change my paycheck contributions from 457 to 401k in time, I'm gonna actually get a paycheck bigger than a token amount.

Yeah, I know - I could have split the contributions evenly from the start, but I am prioritizing the 457 for the withdrawal flexibility.

We have a dumb "prior prior month" system that must date back to the stone ages. It's all computers these days folks - I shouldn't need to do this 2 months in advance. Changes I make in March don't show up til the May paycheck.
WTF?
That's actually a lot harder to do.
If I had to guess it's from the time where your HR entered your stuff on a paper form and mailed to the tax office who then send back the "We have done it" per mail to your company, so that your HR could do the actual money moving with new settings.

401Killer

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Re: Mustachian People Problems (just for fun)
« Reply #8478 on: March 12, 2021, 05:49:38 AM »
My credit score is 850 and I can no longer watch it go up...

/deepdepression

Plina

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Re: Mustachian People Problems (just for fun)
« Reply #8479 on: March 12, 2021, 05:55:33 AM »
I have made investments in solar energy in different african solar companies. Now I have about 50 euros of interest payments and repayments of the loans sitting in my account at the intermediary company because they donít currently have any loans to reinvest in. That has been the case for over two months. It is really annoying to have the money to just sit there and not work. I would rather avoid taking them out for reinvestment elsewhere because I like the impact investment model but if they donít have any new investment opportunities before the end of the month I will take them out.

That won't save you from your problem, but...
I have investments at a similar company (Berlin based) https://www.ecoligo.investments/ and they don't seem to have the problem of running out of projects ;) They also put the interest in your bank account. Maybe there is a similar company in your country too?

I havenít found another similar company, so if nothing happens soon I will take the money out and invest them elsewhere.

dragoncar

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Re: Mustachian People Problems (just for fun)
« Reply #8480 on: March 12, 2021, 11:56:03 PM »
That reminds me.  I'm irrationally annoyed at this advance child credit thing.  I don't mind getting the credit early, but now I've go in and change my withholdings again.

Why would you have to change your withholdings?  Shouldn't it be tax-neutral once you receive the advance, assuming the advance is correct?

mstr d

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Re: Mustachian People Problems (just for fun)
« Reply #8481 on: March 13, 2021, 09:23:12 AM »
I bought a house 70.000 euro under market value, from a nice old man who doesn't mind selling it to me because : a) he has to give 50% to his ex, b) i give him a cash offer with the ability for him to transfer the house when he wants up until a year until he found a apartment to rent , it's a great deal.

Bud the thing is, I can't get a 10 year fixed rate 0,90 % 30 year morgage with my one day workweek even when have enough Vanguars VWRL to buy the house multiple times over.

Because they only look at income if you want to live in it. I can get a rent only morgage , bud with this kind of morgage you are not allowed to live in it yourself and you have to pay 8% transfer tax in the netherlands instead of 0% .

So I had to find a second job and need to work a full workweek again to make the bank happy. Stupid thing is, you have to show them you have at least a one year contract. And pas your one month trail period at the job. Bud I can just quit that job after the bank sends the aproval letter to the notary.

In the netherlands its very hard to get a box 1 income morgage if you want to live in it. Bud it's easy to get a box 3 Capital morgage. Because they look at rent income and Loan to Value instead of your personal income.

 So I am a full time  truck driver again, I forgot how much I loved my former job. (Maybe because everything is closed due corona). Bud I still love spending time with my girlfriend more. :)


maisymouser

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Re: Mustachian People Problems (just for fun)
« Reply #8482 on: March 13, 2021, 10:14:01 AM »
That reminds me.  I'm irrationally annoyed at this advance child credit thing.  I don't mind getting the credit early, but now I've go in and change my withholdings again.

Why would you have to change your withholdings?  Shouldn't it be tax-neutral once you receive the advance, assuming the advance is correct?

Yeah am I missing something here?

NumberJohnny5

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Re: Mustachian People Problems (just for fun)
« Reply #8483 on: March 13, 2021, 10:57:28 AM »
Let's say you're getting the $2k tax credit per kid, three kids. You've done all the math, and have "inflated" your W4 numbers thus reducing your withholding per paycheck. At tax time you have a pretty low tax refund, for this example we'll say you got a $500 refund last year. Without the kids you'd owe thousands, but you have kids, and you don't want a repeat of 2015 when you got a $6,500 refund even though your W4 was spot-on.

Basically, in the past, with three kids you'd get $6,000 taken off at tax time (this is oversimplified, I know, just illustrating a point).

Now you're getting $3,000 per kid (assuming none are under six). That's $9,000 instead of $6,000. So you're getting even MORE taken off your taxes, right? Well, technically yes, but you're getting half of that before you even file your taxes. So of the $9,000, you get $4,500 before the end of the tax year. That means when you file your taxes, only $4,500 comes off the taxes...because you already got the first half of the tax credit.

If you "inflated" your W4 to account for the (very predictable) child tax credit, the numbers assume you'll get $6,000 taken off of your taxes...not $4,500. So in a scenario where with a properly filled out W4 you'd end up with a $6,500 refund, but you inflated the numbers so you'd end up with a $500 refund...well...now the numbers are off, and you'd end up owing $1,000 instead (difference of $1,500).

It really is a "Mustachian People Problem", hence being posted in this thread. You either reduce the W4 numbers thereby increasing the withholding (which will be balanced out by the advance payments starting in July), or you just elect to NOT take the advance payment (and maybe even increasing the W4 number a bit to reduce withholding a tiny bit, to account for the fact that you'll be getting a larger deduction/credit come tax time). Or just let it slide and see what happens; I think as long as you haven't had to pay in for X years and didn't change anything, they'll let it slide at least once without a penalty (definitely check on this, I'm not giving financial advice, etc.).

dragoncar

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Re: Mustachian People Problems (just for fun)
« Reply #8484 on: March 13, 2021, 10:33:16 PM »
Thanks for explaining!  I do think the difference is unlikely to result in a penalty if you are withholding with a target of small refund (and the penalty would be extremely small).  if you are withholding with a target of owing exactly $1000 then thatís a bigger risk (yes Iíve done it)

The other option is just to make a single estimated tax payment to cover the difference

fuzzy math

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Re: Mustachian People Problems (just for fun)
« Reply #8485 on: March 14, 2021, 01:44:29 PM »
So, I failed to change my paycheck contributions from 457 to 401k in time, I'm gonna actually get a paycheck bigger than a token amount.

Yeah, I know - I could have split the contributions evenly from the start, but I am prioritizing the 457 for the withdrawal flexibility.

We have a dumb "prior prior month" system that must date back to the stone ages. It's all computers these days folks - I shouldn't need to do this 2 months in advance. Changes I make in March don't show up til the May paycheck.

Mine says it can take up to 2 pay checks, but its frequently the same month (I'm paid monthly, but hourly people are biweekly so I understand why it says that). My issue is that it seems unpredictable and random when it goes thru quick or not, so I have to double check and adjust AGAIN if it happens sooner or later than I expect.

dragoncar

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Re: Mustachian People Problems (just for fun)
« Reply #8486 on: March 14, 2021, 02:19:04 PM »
So, I failed to change my paycheck contributions from 457 to 401k in time, I'm gonna actually get a paycheck bigger than a token amount.

Yeah, I know - I could have split the contributions evenly from the start, but I am prioritizing the 457 for the withdrawal flexibility.

We have a dumb "prior prior month" system that must date back to the stone ages. It's all computers these days folks - I shouldn't need to do this 2 months in advance. Changes I make in March don't show up til the May paycheck.

Mine says it can take up to 2 pay checks, but its frequently the same month (I'm paid monthly, but hourly people are biweekly so I understand why it says that). My issue is that it seems unpredictable and random when it goes thru quick or not, so I have to double check and adjust AGAIN if it happens sooner or later than I expect.

Again, why donít you just get close enough (slightly under withholding) and then cover the difference with a direct payment to the IRS? 

I guess Iím biased because I stopped withholding entirely.  I just went to quarterly estimated payments and my life is much easier, plus I sometimes pay with credit card* so I get a decent float on my cash and points

*only when I have a way to beat the processing fee

Sugaree

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Re: Mustachian People Problems (just for fun)
« Reply #8487 on: March 16, 2021, 05:16:43 AM »
Let's say you're getting the $2k tax credit per kid, three kids. You've done all the math, and have "inflated" your W4 numbers thus reducing your withholding per paycheck. At tax time you have a pretty low tax refund, for this example we'll say you got a $500 refund last year. Without the kids you'd owe thousands, but you have kids, and you don't want a repeat of 2015 when you got a $6,500 refund even though your W4 was spot-on.

Basically, in the past, with three kids you'd get $6,000 taken off at tax time (this is oversimplified, I know, just illustrating a point).

Now you're getting $3,000 per kid (assuming none are under six). That's $9,000 instead of $6,000. So you're getting even MORE taken off your taxes, right? Well, technically yes, but you're getting half of that before you even file your taxes. So of the $9,000, you get $4,500 before the end of the tax year. That means when you file your taxes, only $4,500 comes off the taxes...because you already got the first half of the tax credit.

If you "inflated" your W4 to account for the (very predictable) child tax credit, the numbers assume you'll get $6,000 taken off of your taxes...not $4,500. So in a scenario where with a properly filled out W4 you'd end up with a $6,500 refund, but you inflated the numbers so you'd end up with a $500 refund...well...now the numbers are off, and you'd end up owing $1,000 instead (difference of $1,500).

It really is a "Mustachian People Problem", hence being posted in this thread. You either reduce the W4 numbers thereby increasing the withholding (which will be balanced out by the advance payments starting in July), or you just elect to NOT take the advance payment (and maybe even increasing the W4 number a bit to reduce withholding a tiny bit, to account for the fact that you'll be getting a larger deduction/credit come tax time). Or just let it slide and see what happens; I think as long as you haven't had to pay in for X years and didn't change anything, they'll let it slide at least once without a penalty (definitely check on this, I'm not giving financial advice, etc.).

What he said.  I don't mind getting a small refund but I'd rather not owe the IRS.  It also messes with my state taxes since there is a deduction for federal taxes there.  That's a much smaller hassle though.

talltexan

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Re: Mustachian People Problems (just for fun)
« Reply #8488 on: March 19, 2021, 06:45:31 AM »
I'm determined to never pay ahead with the IRS again after I get the refund I am still owed for tax year 2019.

Sugaree

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Re: Mustachian People Problems (just for fun)
« Reply #8489 on: March 19, 2021, 07:40:59 AM »
And now the head of the IRS is saying that the delayed filing deadline may delay the rollout of the child tax advance payments.  I guess I'll hold off on changing anything for a bit.

Taran Wanderer

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Re: Mustachian People Problems (just for fun)
« Reply #8490 on: March 19, 2021, 09:55:38 AM »
Is it an MPP to have filed my taxes just two days before announcement of the delayed filing date?

markbike528CBX

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Re: Mustachian People Problems (just for fun)
« Reply #8491 on: March 19, 2021, 10:11:33 AM »
Is it an MPP to have filed my taxes just two days before announcement of the delayed filing date?
Only if you admit my MPP is bigger than yours because I filed over two weeks before the announcement.

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Re: Mustachian People Problems (just for fun)
« Reply #8492 on: March 19, 2021, 10:26:51 AM »
Is it an MPP to have filed my taxes just two days before announcement of the delayed filing date?
Only if you admit my MPP is bigger than yours because I filed over two weeks before the announcement.
I learned my lesson last year and have delayed filing this year.

Taran Wanderer

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Re: Mustachian People Problems (just for fun)
« Reply #8493 on: March 19, 2021, 11:23:20 AM »
Is it an MPP to have filed my taxes just two days before announcement of the delayed filing date?
Only if you admit my MPP is bigger than yours because I filed over two weeks before the announcement.

Iíll admit your MPP is bigger if you have to file an amended return to take advantage of the stimulus changes.

markbike528CBX

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Re: Mustachian People Problems (just for fun)
« Reply #8494 on: March 19, 2021, 11:38:22 AM »
Is it an MPP to have filed my taxes just two days before announcement of the delayed filing date?
Only if you admit my MPP is bigger than yours because I filed over two weeks before the announcement.

Iíll admit your MPP is bigger if you have to file an amended return to take advantage of the stimulus changes.

You win. I abase myself before your bigger MPP.

zolotiyeruki

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Re: Mustachian People Problems (just for fun)
« Reply #8495 on: March 19, 2021, 12:59:52 PM »
If you're owed a refund, wouldn't you want to file your taxes earlier?

secondcor521

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Re: Mustachian People Problems (just for fun)
« Reply #8496 on: March 19, 2021, 01:25:43 PM »
If you're owed a refund, wouldn't you want to file your taxes earlier?

Usually.  Although with the stimulus payment qualification rules, it may make more sense to delay filing.  This is usually cases where the stimulus payment will be larger based on the taxpayers 2019 return than on their 2020 return.

Also, some people may be holding off because of the 2020 provisions in the ARP Act related to unemployment compensation and APTC non-repayment.

Taran Wanderer

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Re: Mustachian People Problems (just for fun)
« Reply #8497 on: March 19, 2021, 03:09:29 PM »
Is it an MPP to have filed my taxes just two days before announcement of the delayed filing date?
Only if you admit my MPP is bigger than yours because I filed over two weeks before the announcement.
Iíll admit your MPP is bigger if you have to file an amended return to take advantage of the stimulus changes.
You win. I abase myself before your bigger MPP.

Too funny.  Sounds like weíre both winning the life lottery.  I donít have to re-file either. If you had to file an amended return, that would clearly be an automatic win, but Iíll concede the win for the earlier filing date. Congrats!

Taran Wanderer

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Re: Mustachian People Problems (just for fun)
« Reply #8498 on: March 19, 2021, 03:14:18 PM »
If you're owed a refund, wouldn't you want to file your taxes earlier?

Filing earlier can also reduce the risk of someone fraudulently filing to get your refund. Besides, even if you file early, you still have until tax day to mail your payment. I mailed early because I owed just a little too much on my state taxes, and they charged me interest. One dollar of interest, but still, interest.

Alternatepriorities

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Re: Mustachian People Problems (just for fun)
« Reply #8499 on: March 19, 2021, 04:03:28 PM »
If you're owed a refund, wouldn't you want to file your taxes earlier?

Filing earlier can also reduce the risk of someone fraudulently filing to get your refund. Besides, even if you file early, you still have until tax day to mail your payment. I mailed early because I owed just a little too much on my state taxes, and they charged me interest. One dollar of interest, but still, interest.

This seems like a very MPP...