Join Early Retirement Today
Reply
 
Thread Tools Display Modes
Old 11-26-2008, 05:01 PM   #41
Recycles dryer sheets
Gardnr's Avatar
 
Join Date: Jul 2008
Location: ENE MO - near STL
Posts: 424
Quote:
Originally Posted by youbet View Post
Yeah, it's great to have like-minded folks to gossip with about people living their lives differently than yourself!

There seem to be no threads as popular as threads where someone criticizes someone else's lifestyle and others jump in to pile on!
Oh yeah, and you're just as pure as the wind driven snow. GMAB
Gardnr is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 11-27-2008, 09:39 AM   #42
Thinks s/he gets paid by the post
 
Join Date: May 2005
Location: Texas
Posts: 1,038
Quote:
Originally Posted by Independent View Post
I'll agree with this. Money is fungible - it's all the same. If you "need" to spend, you get it from the cheapest source. Cashing out your 401k is cheaper than piling up credit card debt.

OTOH, the big problem is separating needs from wants. This board is full of LBYM types who would love to educate their friends and family on the difference (I'm one of them).

So I'll go ahead and get my pet peeve in. I see lots of media discussion on saving, and contributing to your 401k, and investing wisely. I don't see nearly as much discussion of the notion of getting out of debt. If I had the ear of the "average" American, I'd say you should focus on your GOOD Date (Get Out Of Debt Date). When do you plan to be completely out of debt? Age 50? Age 45? Age 65? It's foolish to think that you are "saving" until your debts are gone.
I don't think it matters if you have debts as long as you have enough assets to pay them off. I saved in my 401K rather than paying off my house early. Much better tax advantages. Getting less so now that I cannot deduct interest on the house any more.
__________________
In theory, theory and practice are the same. In practice, they are not.
Lazarus is offline   Reply With Quote
Old 11-27-2008, 01:02 PM   #43
Thinks s/he gets paid by the post
 
Join Date: Oct 2006
Posts: 4,629
Quote:
Originally Posted by Lazarus View Post
I don't think it matters if you have debts as long as you have enough assets to pay them off. I saved in my 401K rather than paying off my house early. Much better tax advantages. Getting less so now that I cannot deduct interest on the house any more.
I'll agree with this. My post was a tangent on the thread so I didn't want to make it too long.

For most people, the debt/savings combination that works is a 401k and a mortgage. If the loan is on a credit card, or the saving is taxable, the numbers are likely to be different.

If I were advising someone who can do the math, I'd recommend looking at savings minus debt and focus on when that number will turn positive. I'd remind them that they need to take a haircut on the traditional IRA/401k assets to reflect the taxes they'll pay when they withdraw.

I think that some people will discover that they are on a path that will keep them net debtors until 60+, and that may help them understand their financial situation.

If I were making tax law, I'd get rid of the complexities in the tax law that simultaneously give people incentives to borrow and incentives to save.
Independent is offline   Reply With Quote
Old 11-27-2008, 11:57 PM   #44
Full time employment: Posting here.
old woman's Avatar
 
Join Date: Dec 2005
Posts: 567
Two working adults can retire on two social security checks if they don't have high expenses. Say they get 1,500 each that is 3K per month without a mortgage they will be fine. The problem is when one dies and the other is left with only half the income but the bills aren't half. They have one less person to feed and cloth but if they were sharing a car the widow/widower is left with the car insurance bill and other expenses, property taxes might not go down if they already got a low income elderly discount. Utilities are the same amount and if they start needing medicine or have a home or car repair they can't recover. So even if you see a 75 year old couple living fine on SS they might get in deep trouble later also they might have a part time job or grow a garden when they are younger retired but can't at 80.
old woman is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
401k or Roth 401k? JohnDoe FIRE and Money 3 07-23-2008 07:33 AM
Can a company off both 401k and Roth 401k bode316 Young Dreamers 11 01-22-2008 11:40 AM
Roth 401k vs Traditional 401k keldon FIRE and Money 3 01-08-2007 12:25 PM
Trad 401k or Roth 401k for High Earners Linney Young Dreamers 7 01-01-2007 07:24 PM
Traditional 401k or Roth 401k HatePayingTaxes Young Dreamers 4 12-30-2006 09:59 PM

» Quick Links

 
All times are GMT -6. The time now is 08:39 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2024, vBulletin Solutions, Inc.