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re: OT: Corona Panic 2020
Posted on 4/6/20 at 1:20 pm to DawgsLife
Posted on 4/6/20 at 1:20 pm to DawgsLife
quote:
I always used the excuse that I couldn't afford to get into my companys 401K.
Most people fall into at least one of the following categories:
1) don’t have a retirement account
2) too young to have built up substantial savings for an emergency situation
3) can’t access that account without serious tax penalties
Even people that are diligent about saving are going to have big liquidity problems if the shutdown continues. It’s the people who are most financially vulnerable (young, less savings, student debt, lower income, less educated, etc.) who are taking the brunt of the impact. As it turns out, young people are also the least impacted medically, so frustration will eventually be very loud.
This post was edited on 4/6/20 at 1:26 pm
2
Posted on 4/6/20 at 1:33 pm to Whiznot
NY, the worst state in the US by far, numbers are down including the weekend. GA also. This while testing many many more people.
This post was edited on 4/6/20 at 1:41 pm
Posted on 4/6/20 at 1:42 pm to Crowknowsbest
Wasn’t there some discussion of waiving the 401k tax penalty recently?
Posted on 4/6/20 at 1:43 pm to Whiznot
I understand what you are saying but your graph is CDC data on daily deaths. The Johns Hopkins graph is Confirmed Cases. The staggering of that graph might well be explained by lack of weekend data collection but even the low steps in the staggering are higher than most of the previous steps whereas on April 4th the decrease is lower that each of the previous 3 days. I guess we will have to see what this week's data looks like to draw any conclusions but I do appreciate your insight.
Posted on 4/6/20 at 1:49 pm to Crowknowsbest
quote:
1) don’t have a retirement account
2) too young to have built up substantial savings for an emergency situation
3) can’t access that account without serious tax penalties
Well, you don't ever want to take money out of a 401K account. It would have to be the absolute last resort before financial disaster.
It does take time to build up that emergency fund, I won't lie to you. But a lot of people do not live on a budget, and tend to waste a lot of money. Tax rebate? Spend it. That kind of thing.
quote:Yes, I agree. But it is a whole lot better to have a 6 month cushion than none at all. Even if you only have a couple of months saved but are working on it. The key is to not get into debt. Do not borrow money. We never carried a balance over on a credit card. Save for a car, don't borrow. Save for vacation, Christmas, birthdays etc.
Even people that are diligent about saving are going to have big liquidity problems if the shutdown continues.
I got married at 25 years old and my wife was 19. It's not a matter of how much money you make. it's a matter of living within your means.
Most people want to live the lifestyle their friends are living, and that's a mistake. People need to develop habits that rich people have developed. Instead the look at their broke friends and take money advice from them. (Not meaning you, necessarily)
Posted on 4/6/20 at 1:52 pm to RedFive
quote:
Wasn’t there some discussion of waiving the 401k tax penalty recently?
yes, no early withdrawal penalty but you still pay normal income tax once your provide approves your hardship request
Posted on 4/6/20 at 1:54 pm to DawgsLife
quote:
I got married at 25 years old and my wife was 19.
This is a fairly big deal in terms of lifestyle and expenses that does not apply to many young people today.
Posted on 4/6/20 at 1:55 pm to GurleyGirl
It is criminal how they have the axises set on that Hopkins graph.
The top of the Y axis shouldn't be at the top of the data, especially if the beginning of the x axis is a month before the first case was ever confirmed.
The layout of that chart was deliberately designed to frighten people. It's very unethical and Johns Hopkins knows better.
The top of the Y axis shouldn't be at the top of the data, especially if the beginning of the x axis is a month before the first case was ever confirmed.
The layout of that chart was deliberately designed to frighten people. It's very unethical and Johns Hopkins knows better.
This post was edited on 4/6/20 at 2:01 pm
Posted on 4/6/20 at 2:00 pm to Crowknowsbest
quote:
This is a fairly big deal in terms of lifestyle and expenses that does not apply to many young people today.
I would disagree. There are tons of people today that are doing similar things.
My son has three boys, and his wife stays home to raise them (Their choice) and they are doing very well....he invests money, has an emergency fund, and pretty much follows Dave Ramsey's guidelines to the "T". He's not rich by any means, but i have no doubt in my mind he will be. This past Christmas he asked my wife and I to buy him 10 of Ramsey's books, so he could give them to people at his church and at work to help them get on a good path.
It's a matter of want to, more than anything else. Like i said...he doesn't make a lot of money...he is just making a lot of wise decisions.
ETA
My son got married when he was 18 and his wife was 18, too.
This post was edited on 4/6/20 at 2:02 pm
Posted on 4/6/20 at 2:02 pm to DawgsLife
quote:
I would disagree. There are tons of people today that are doing similar things.
Of course there are lots of people doing that, but statistically people are getting married older, buying houses later, etc.
Posted on 4/6/20 at 2:03 pm to DawgsLife
Ramsey is a little bit culty but if people need that to be financially independent, good for them.
Posted on 4/6/20 at 2:12 pm to deeprig9
quote:
Ramsey is a little bit culty but if people need that to be financially independent, good for them.
Yeah, I can see that. People either really like him a lot or they don't like him at all. I agree with about 95% of his ideas, but not all. Most of his stuff is on the nose, if people give it a try. But, most people don't want to make the sacrifice of not spending money left and right. Our society is not very disciplined.
Didn't mean to derail y'alls discussion.
Posted on 4/6/20 at 2:13 pm to Crowknowsbest
quote:
Of course there are lots of people doing that, but statistically people are getting married older, buying houses later, etc.
True. And that does make it easier to make the goals. but, like I said...my son was 18 and his wife was 18 when they got married. It can be done with determination.
Posted on 4/6/20 at 2:20 pm to Crowknowsbest
quote:
Of course there are lots of people doing that, but statistically people are getting married older, buying houses later, etc
I'm not sure I understand your point.
Are you saying that single people are irresponsible and cant work a budget?
Posted on 4/6/20 at 2:29 pm to meansonny
quote:
Are you saying that single people are irresponsible and cant work a budget?
No. I’m saying their expenses are fundamentally different. They’re more likely to be paying rent on an apartment vs. buying a house, more likely renting and paying utilities solo, spending more on social outlets, eating out more, etc.
They can and do have budgets. Their budgets just have different weights on certain line items.
I’m in my late twenties and single. My lifestyle is pretty different than my friends that are married.
This post was edited on 4/6/20 at 2:32 pm
Posted on 4/6/20 at 2:31 pm to DawgsLife
quote:
my son was 18 and his wife was 18 when they got married. It can be done with determination.
Speaking for myself, getting married at 18 would have been a disaster. I am a significantly more mature person than I was at that point, to the point of having fundamentally altered priorities.
Posted on 4/6/20 at 2:41 pm to Crowknowsbest
quote:
They can and do have budgets. Their budgets just have different weights on certain line items.
One of those line items should be an automatic transfer to a Roth IRA on every payday. You don't even need to qualify for a 401k at your job. If it's an automatic transfer on payday, you never miss the money. And after years of doing this, you will be significantly better off financially.
Say you can only part with $25 per check, 26 biweekly checks a year. In five years, with zero returns, and never increasing the amount, you have a nest egg of $3250 that you can also withdraw for any reason without penalty.
Now say you can part with $50 per check, and you actually do increase it 3% a year, and you actually do get a return of another conservative 5% a year... you actually have a really nice chunk of change in five years, and if you keep doing it, retire at 55 like Dawgslife did.
I didn't start early enough, so I will be 59 before I can pull it off.
Posted on 4/6/20 at 2:50 pm to Crowknowsbest
quote:
Speaking for myself, getting married at 18 would have been a disaster.
Would have been for me, too! I was immature. My wife was very mature for 19 when we got married, thank goodness.quote:And they will change more in your 30's and 40s and 50s. They never really stop changing. values, interests, the way we look at things, handle things etc.
I am a significantly more mature person than I was at that point, to the point of having fundamentally altered priorities.
But, yeah. I get what you are saying. Not sure what you do for a living, but you should be crushing a 401K right now.
Posted on 4/6/20 at 2:59 pm to deeprig9
quote:
One of those line items should be an automatic transfer to a Roth IRA on every payday. You don't even need to qualify for a 401k at your job. If it's an automatic transfer on payday, you never miss the money. And after years of doing this, you will be significantly better off financially.
True. the last 15 years or so I worked I would put every raise I got straight into my 401K. Like you said, when it comes right out, you don't even miss it. It's like you never had it anyway. Starting is the hard part. once it is started and you see it growing you just want to put in more.
Posted on 4/6/20 at 3:00 pm to Whiznot
quote:
bullshite from Deeprig
The more I think about it, I think I should start a blog or maybe even a printed newsletter I can mail out to subscribers, called 'bullshite from Deeprig'.
If Sheftie agrees to do a regular guest piece like "Crazy Corner" where it gets real wacky, I swear to God I'll do it.
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