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I just had a personal finance epiphany
Poast new message in this thread
Date: March 26th, 2024 9:09 PM Author: geriatric twinkling shrine This thought occurred to me as I was going to the store. I pondered to myself, what would I do if I was given $1m. I couldn't think of anything good, so I settled on, I'd pay off my mortgage and top off my kids' 529 plans at $200k each. These are basically my largest financial goals at this point in my life. Retirement should already be funded (when I get there). I have emergency cash reserves. It's just these two things in my way. So then I started thinking, okay, that's the first million but how much do you really need. So I thought about future spending goals and could only come up with about $350k (for expensive big ticket items like home repairs, maybe some personal stuff, a trip or two (with my family to Hawai'i for example)). I couldn't think of anymore. So that's $1.35m more that I need to accomplish everything I want to accomplish financially in my life. So then, I'm like well how much is that in pre-tax dollars. So I looked at my tax rate for last year (after factoring in state and property taxes as well) and I realized my total tax rate was a little under 14%. So I used 18%. $1.35/0.82 = $1,646,341 is all the money I need to earn for the rest of my life to meet the aforementioned goals. Then the final piece is just coasting. Earning more to cover day-to-day expenses, maybe trips here and there, and building a legacy for my kids. So having my "number," I divided $1.646m by our current gross annaul income and it's less than 5.5 years until we make this "number." That's everything covered. By then our youngest will be like 7 years old and our oldest will be 15. Just have to hang on. One thing that could throw a wrench into this is inheritance because I think I'm going to inherit a house and some land and that could be a problem with the taxes in the future. |
Date: March 26th, 2024 9:29 PM Author: geriatric twinkling shrine (http://www.autoadmit.com/thread.php?thread_id=5509714&forum_id=2#47530270) |
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Date: March 26th, 2024 9:30 PM Author: Big Burgundy Really Tough Guy French Chef I'm going to murder you in cold blood before any of that happens fyi. (http://www.autoadmit.com/thread.php?thread_id=5509714&forum_id=2#47530274) |
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Date: March 26th, 2024 9:34 PM Author: clear hissy fit (http://www.autoadmit.com/thread.php?thread_id=5509714&forum_id=2#47530287) |
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Date: March 26th, 2024 9:37 PM Author: Awkward Racy Filthpig (http://www.autoadmit.com/thread.php?thread_id=5509714&forum_id=2#47530296) |
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Date: March 27th, 2024 5:18 PM Author: Purple Mind-boggling Bawdyhouse Degenerate TITCR (http://www.autoadmit.com/thread.php?thread_id=5509714&forum_id=2#47532705) |
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Date: March 26th, 2024 9:33 PM Author: beta slate clown point “i have a reasonable financial set-up but am deeply concerned about it getting fucked up by getting some extra free money on top of that” is classic disco fries. (http://www.autoadmit.com/thread.php?thread_id=5509714&forum_id=2#47530280) |
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Date: March 26th, 2024 9:37 PM Author: geriatric twinkling shrine 80 unimproved acres in flyover that nobody can find (would have to hire a surveyor or something to even locate the property). Tax bill comes like clockwork. 3000sf home in suburbs of a major southeastern metro. This would be a nightmare to inherit as well. Probably easier to sell than the unimproved land though. |
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Date: March 26th, 2024 9:35 PM Author: carmine den LJL you have no life or no hobbies worth a shit if this is enough money for you. I could blow 8 figures on watches and still want more. I have like 1300-1400 vinyl records and could see myself blowing a solid million on more. Mother fucker, I could blow $50k on Warhammer figurines and not be satisfied. (http://www.autoadmit.com/thread.php?thread_id=5509714&forum_id=2#47530292) |
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Date: March 26th, 2024 9:37 PM Author: Vigorous roommate Oh what a life (http://www.autoadmit.com/thread.php?thread_id=5509714&forum_id=2#47530299) |
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Date: March 26th, 2024 9:40 PM Author: carmine den When I was younger and could run around on weekends without kids I also blew ungodly money traveling around doing airsoft (like $25k a year doing events). Gotta have interests. (http://www.autoadmit.com/thread.php?thread_id=5509714&forum_id=2#47530310) |
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Date: March 26th, 2024 9:42 PM Author: Vigorous roommate Oh what interests (http://www.autoadmit.com/thread.php?thread_id=5509714&forum_id=2#47530323) |
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Date: March 26th, 2024 9:43 PM Author: carmine den You should see my stereos and my crazy arcade machine. (http://www.autoadmit.com/thread.php?thread_id=5509714&forum_id=2#47530330) |
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Date: March 26th, 2024 9:39 PM Author: geriatric twinkling shrine I used to have about 400 vinyl records. They were all from about 1968-1975 too. Vintage stuff. My mom's husband at the time lost his job and sold them all for $100, which he took to the corner store to buy $50 of scratchers and then to the Wine & Spirits for a handle of Jack Daniels. (http://www.autoadmit.com/thread.php?thread_id=5509714&forum_id=2#47530306) |
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Date: March 26th, 2024 9:40 PM Author: carmine den LJL. This is a solid opening to a book, bro. Keep going. (http://www.autoadmit.com/thread.php?thread_id=5509714&forum_id=2#47530318) |
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Date: March 26th, 2024 9:43 PM Author: geriatric twinkling shrine I am not kidding. I got these records and I was away at college. I also had a big jug that I had put change and dollar bills in. It was probably $500-600. I'd been saving up my whole life. As soon as I was away at the dorm, he took that jug to the Coinstar. I came home and it was empty. I was like what the fuck. He looked at me and said, "sorry, I needed it."
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Date: March 26th, 2024 9:44 PM Author: carmine den I would have put my knife to work on him or at least his tires. (http://www.autoadmit.com/thread.php?thread_id=5509714&forum_id=2#47530332) |
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Date: March 26th, 2024 9:47 PM Author: geriatric twinkling shrine I think this is one of the reasons I don't find any value in "stuff." Things are just things that you can lose or have stolen or that will slowly lose their sparkle over time. It's better to just put that money into the market and then you have your dancing numbers on the screen. (http://www.autoadmit.com/thread.php?thread_id=5509714&forum_id=2#47530342) |
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Date: March 26th, 2024 10:01 PM Author: Provocative chestnut theater stage giraffe (Charles Foster Kane) (http://www.autoadmit.com/thread.php?thread_id=5509714&forum_id=2#47530382) |
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Date: March 27th, 2024 5:21 PM Author: Red Site Sound Barrier somehow making disco fries into the more sympathetic poaster tp (http://www.autoadmit.com/thread.php?thread_id=5509714&forum_id=2#47532719) |
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Date: March 26th, 2024 9:37 PM Author: blue antidepressant drug 529s have to be the lulziest most retarded thing ever. isn't TX in-state tuition dirt cheap? why tf would you contribute 100+k to that scam. if it's to be used for a private school like colby or colgate, even lulzier. (http://www.autoadmit.com/thread.php?thread_id=5509714&forum_id=2#47530298) |
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Date: March 26th, 2024 9:38 PM Author: carmine den TCR. There is zero reason to ever pay sticker at an expensive undergrad. (http://www.autoadmit.com/thread.php?thread_id=5509714&forum_id=2#47530305) |
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Date: March 26th, 2024 9:40 PM Author: geriatric twinkling shrine In-state at UTexas is about $40k per year. So $160k would probably cover it. TAMU is about $35k. So $140k would cover it. |
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Date: March 26th, 2024 10:03 PM Author: Provocative chestnut theater stage giraffe just do save a quarter mil to send ur dotter off to a glorified synagogue (http://www.autoadmit.com/thread.php?thread_id=5509714&forum_id=2#47530387) |
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Date: March 26th, 2024 9:54 PM Author: fragrant haunting chapel 529 is a scam. 50% tax rate on gains unless used for education (http://www.autoadmit.com/thread.php?thread_id=5509714&forum_id=2#47530359) |
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Date: March 26th, 2024 9:55 PM Author: Dashing irate fanboi Best part of OP is that there is an apostrophe in Hawaii (http://www.autoadmit.com/thread.php?thread_id=5509714&forum_id=2#47530368) |
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Date: March 26th, 2024 10:11 PM Author: Godawful coral police squad (http://www.autoadmit.com/thread.php?thread_id=5509714&forum_id=2#47530407) |
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Date: March 27th, 2024 12:08 AM Author: Startling misanthropic kitchen ceo pretty obvious that this was actually the only point of all that otherwise unnecessarily complicated (and yet somehow, incomplete) analysis (http://www.autoadmit.com/thread.php?thread_id=5509714&forum_id=2#47530750) |
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Date: March 26th, 2024 10:10 PM Author: Godawful coral police squad If someone gave me an extra net million dollars tomorrow i would quit my job and move up my move to southern europe timeframe right away. (http://www.autoadmit.com/thread.php?thread_id=5509714&forum_id=2#47530403) |
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Date: March 26th, 2024 10:32 PM Author: geriatric twinkling shrine I have kids and no real desire to ever go to Europe again unless it's to do something exceptional like pregame at Hotel Byblos and thereafter rage at Les Cave with RSF in Ste-Tropez on Bastille Day. (http://www.autoadmit.com/thread.php?thread_id=5509714&forum_id=2#47530458) |
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Date: March 26th, 2024 10:19 PM Author: mint fear-inspiring striped hyena What was the epiphany? (http://www.autoadmit.com/thread.php?thread_id=5509714&forum_id=2#47530424) |
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Date: March 26th, 2024 10:38 PM Author: geriatric twinkling shrine The ephiphany was that I'm a lot closer to accomplishing what I set out to accomplish as a young man a lot sooner than I thought possible. A secondary thought, not mentioned in the OP, is the corrollory which is that I could be a lot closer to my goals if I hadn't saved at all for my "retirement." But if I hadn't done that and prioritized these other things first, I'm sure I'd have anxiety about "retirement" even though that's not something that I really want or desire to to ever do. I'd rather die on the Walmart floor than be a retired loaf. But then again disability may jump up and bite me in the ass. So the prudent man would plan for that nevertheless. |
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Date: March 27th, 2024 9:50 AM Author: adulterous corner Replace "disability" with "massive coronary". But would be 180 if done on the floor of Walmart or while captaining a ship through Baltimore. (http://www.autoadmit.com/thread.php?thread_id=5509714&forum_id=2#47531444) |
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Date: March 27th, 2024 4:51 AM Author: geriatric twinkling shrine (http://www.autoadmit.com/thread.php?thread_id=5509714&forum_id=2#47531092) |
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Date: March 27th, 2024 3:43 PM Author: deranged histrionic yarmulke pocket flask you can make it + will (http://www.autoadmit.com/thread.php?thread_id=5509714&forum_id=2#47532262) |
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Date: March 27th, 2024 5:21 PM Author: passionate costumed national ljl u are going to inherit a house and ur concern is the taxes.. this is so goy i dont even know what to say, u are like the spokesman of goys (http://www.autoadmit.com/thread.php?thread_id=5509714&forum_id=2#47532723) |
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Date: March 27th, 2024 5:22 PM Author: Red Site Sound Barrier (http://www.autoadmit.com/thread.php?thread_id=5509714&forum_id=2#47532729) |
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Date: March 27th, 2024 5:46 PM Author: geriatric twinkling shrine First of all, I don't really know what I am going to inherit or when. All I know is that there is this house that's states away. I don't know if anyone lives there or not, but I suspect the answer is that nobody lives there. That being said. I live in a different state, about 1,000 miles away from this house. Why would I want a house in some state I never go to? Houses require upkeep, insurance, taxes, yard care, prevention of riffraff from moving in and squatting. Of course I am concerned about the costs of owning some fucking single family house in the suburbs. You'd be an idiot not to be concerned about those very real costs. |
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Date: March 27th, 2024 5:59 PM Author: cordovan mood ticket booth Sounds like a road trip opportunity for the family and you can drive down random people's driveways on the way (http://www.autoadmit.com/thread.php?thread_id=5509714&forum_id=2#47532839) |
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Date: March 27th, 2024 6:08 PM Author: geriatric twinkling shrine Oh wow. We did this on our last family road trip! It was quite exciting! (http://www.autoadmit.com/thread.php?thread_id=5509714&forum_id=2#47532873) |
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Date: March 27th, 2024 6:13 PM Author: cordovan mood ticket booth I know. I think you all ate outbeak steakhouse take out in ur car on some guys driveway. (http://www.autoadmit.com/thread.php?thread_id=5509714&forum_id=2#47532892) |
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Date: March 27th, 2024 6:45 PM Author: geriatric twinkling shrine No, I'm pretty sure that was a concrete pad in Prophecy Creek Park, Ambler, Pa. (http://www.autoadmit.com/thread.php?thread_id=5509714&forum_id=2#47532982) |
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Date: March 27th, 2024 7:44 PM Author: cordovan mood ticket booth What is a concrete pad? (http://www.autoadmit.com/thread.php?thread_id=5509714&forum_id=2#47533198) |
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Date: March 27th, 2024 8:13 PM Author: geriatric twinkling shrine It’s a pad of concrete, man. Have you never been to a park? (http://www.autoadmit.com/thread.php?thread_id=5509714&forum_id=2#47533341) |
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Date: March 27th, 2024 8:15 PM Author: Silver voyeur What the fuck are you talking about. You know you can sell the house tax free due to step-up basis right? Holy fuck (http://www.autoadmit.com/thread.php?thread_id=5509714&forum_id=2#47533344) |
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Date: March 27th, 2024 8:57 PM Author: deranged histrionic yarmulke pocket flask Seems wrong to cheat uncle sam out of money he's due based on some shady legal loophole. Honest thing to do is pay the tax imo.
But I guess that's just the kind of guy I am |
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Date: March 27th, 2024 8:59 PM Author: geriatric twinkling shrine Soo cr (http://www.autoadmit.com/thread.php?thread_id=5509714&forum_id=2#47533495) |