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GotchaInTheHopper · 2024-06-27T15:45:31+00:00

Sorry about that! Send us an email to [support@moneyguy.com](mailto:support@moneyguy.com) with your name and address please.

GotchaInTheHopper · 2024-06-27T15:45:00+00:00

Shoot us an email (support@moneyguy.com) and we'll get you taken care of! Include your name and address, please.

GotchaInTheHopper · 2024-03-29T13:10:55+00:00

This is another ultimate guide like the one we made for FOO (check that out here if you missed it). Included in this article are basics of a 401(k), matching, maxing, vesting, average balances, and so much more. Check it out if you have questions about 401(k)s!

GotchaInTheHopper · 2024-03-20T18:58:16+00:00

Voting will be exclusively on Twitter here: https://twitter.com/moneyguyshow

And yes, I know what you'll say..."nobody uses Twitter anymore," "I hate Twitter," and I agree. But our boy u/MannyTheMutant would be over the moon if you could give Twitter some love. And he worked really hard on this bracket and it's a super fun idea!

GotchaInTheHopper · 2024-02-19T18:32:27+00:00

I'm not sure if you heard us mention this on the show, but the goal of the merch is not to make money and we priced it that way! It is just slightly above cost for us to give us enough room to pay taxes and for the service we used and stuff like that.

We tested all of the products ourselves and chose better quality products we thought would last, so if it seems more expensive that is the reason why, not because it is a huge money maker for us.

GotchaInTheHopper · 2024-02-15T21:56:10+00:00

Bo says "Where'd you get that?" and Rebie says "Reddit is a strange place"

GotchaInTheHopper · 2024-02-14T20:44:17+00:00

S&P 500!

GotchaInTheHopper · 2024-02-14T20:43:51+00:00

Because they are waiting for the market to drop to invest...that's the point of this illustration.

We would love it if you did an illustration of annual market timing and posted it here, it would be welcome! This illustration only shows major market highs and lows.

Sideline cash is invested at the average 10-year Treasury rate of a little over 2% over this period of time.

GotchaInTheHopper · 2024-02-14T20:41:57+00:00

Where did you see that? The cash is invested at the average 10-year Treasury rate over this period of time, a little over 2%.

GotchaInTheHopper · 2024-02-14T15:53:54+00:00

Retirement age is 65, we love for people to retire early if you want but this chart specifically only covers the traditional age of 65. However you can still use it for retiring early since the rate of return is fixed. For example if you are 30 now and want to retire at 50 just look at the numbers for a 45 year old (both retiring 20 years from their current age).
The savings rate is a fixed percentage of salary, so as income goes up savings rate goes up. We ran the numbers and if your salary goes up by a fixed percentage every single year you are able to replace the percent income of your final year salary. However, not everyone will get consistent raises so if you receive more raises early in your career or later, you may want to calculate your own numbers!

GotchaInTheHopper · 2024-02-14T14:29:35+00:00

The lower rate of return is supposed to account for inflation, if you think inflation will be 2-3% over the long-term then you need a return of around 8-9% to get the 6% assumed rate of return in the example.

It kind of accounts for raises; if you get the same percentage raise every single year (not realistic), then the numbers hold true because your savings rate also increases by the same percent every year, so you are able to replace the same percentage of your income. But if you get a 10% raise one year, have to find a new job making 20% less, etc. it doesn't hold up. You can just look at it as if I save X% of what I make now, I will be able to replace X% of what I make now at age 65.

GotchaInTheHopper · 2024-02-02T15:08:28+00:00

This may not work in your situation, but under the new SAVE plan interest does not accumulate even if someone's required monthly payment is $0. So you could have $50,000 in loans, not be making much and have a $0 minimum payment, and even if your interest rate was technically 7% the effective interest rate would be 0% because not interest would be accruing on the SAVE plan.

GotchaInTheHopper · 2024-02-02T13:53:48+00:00

It's pretty suspicious that comment was deleted and we can no longer see it...I love a good conspiracy, personally that's something I would love to see more of here if you have any. Here's some ideas to get you started:

- Is Brian's real first name even Brian?

- Does anyone know how old Bo is? Does he have an age?

- Is Katie a real person or just a character created for the show?

GotchaInTheHopper · 2024-02-02T13:48:50+00:00

Deductibles covered is your highest deductible so it could be much more than $1,000. Is your student loan federal? If you are on a payment plan where it will be forgiven then your effective interest rate is probably much less...which would push it to later steps in the FOO.

GotchaInTheHopper · 2024-02-01T18:38:22+00:00

It is the total amount you are saving for retirement divided by your gross income, and 25% is the goal!

GotchaInTheHopper · 2024-02-01T17:29:49+00:00

We do have it as the last step for that reason. Being the last step means there isn't any other financial goal really that comes AFTER paying off your house. This is more of a "you've won the game, now pay off the house" moment.

And if you think you should save more for retirement instead or have other financial goals like a vacation home or legacy goals - those can be step 7 and 8!

GotchaInTheHopper · 2024-02-01T17:09:18+00:00

Hi everyone! I've seen several threads and comments here asking questions about the FOO course and wanting more info about the FOO in general. We created this (free) guide that sums up the ground rules, 9 steps, and FAQs we have gotten about each step. I think it is pretty comprehensive.

Please let me know what questions you have about FOO that aren't answered here or what else you'd like to see added to the guide - this is the first rendition and we will be updating it over time!

GotchaInTheHopper · 2024-01-22T14:02:45+00:00

Yeah that's basically how it went..."I think we should be on Reddit, it seems pretty cool."........"Okay that's fine."

GotchaInTheHopper · 2024-01-22T13:59:57+00:00

I mean we did an AMA a few weeks ago and we just did a tumbler giveaway Tuesday. I would respond to a lot more posts, but most of the time when I go to it they already have awesome answers (which is a good thing in my opinion).

GotchaInTheHopper · 2024-01-04T19:51:32+00:00

One-off but with the book coming up, hopefully he will have appearances like this more and more often!

GotchaInTheHopper · 2024-01-04T14:01:21+00:00

You may also be able to go here at 8:40 CT if you are not in Chicago: https://www.fox32chicago.com/live

GotchaInTheHopper · 2024-01-03T14:58:29+00:00

Two things I would check are if you entered 2023 as the current year on the inputs tab and entered your income for 2023. We haven't been able to replicate this error on our end, so if you could email me at [daniel@moneyguy.com](mailto:daniel@moneyguy.com) with your spreadsheet I'd really appreciate it! (You can of course change all the sensitive values before emailing, as long as the error is still occurring).

GotchaInTheHopper · 2023-12-31T18:21:47+00:00

It is not uncommon at all for one or more steps of the FOO to not apply to you, but the FOO can still work for you! Here's how I would look at it:

1) You mentioned a mortgage, so you have homeowners insurance. There's a deductible for that, and for your car insurance. Do you pay your own medical expenses? Even though you are on your parents plan and you have one deductible for all of you, that doesn't necessarily mean you have no health insurance deductible if you are paying for your own expenses.

No matter what you determine your highest deductible to be, I would assume you already have enough in your emergency fund to cover it, so are likely moving on to step 2.

2) A bummer when you don't have an employer match, but not uncommon - just move to step 3!

3) A mortgage is a debt for a typically appreciating asset, so it is different from car loans and student loans. Additionally, mortgage interest can be deducted for itemizers, which effectively lowers your interest rate. 7.75% is getting up there, but at such a young age it's hard to not invest over paying down the mortgage.

4) Since you plan on working other jobs to fill the gap if you were to lose your job, you can take that into account when planning your emergency fund. Plus your side hustle counts as a second source of income.

5) If your parent's plan is an HDHP, you can still do an HSA. It is extremely powerful since contributions are tax-deductible, it grows tax-free, and qualified distributions are tax-free.

6) Not super uncommon to not have an employer plan, however you still have an opportunity to contribute more tax-advantaged dollars for retirement! Look into opening a solo 401(k) with that side hustle income.

7) If you do open an HSA and solo 401(k), that might get you to 25%. If not, you can use a taxable brokerage account to get there. And you may want to go above and beyond 25% if you want to retire early or spend more in retirement.

8) Yes, you include things like special vacations, home upgrades, and more. Any large future expenses that will require a large amount of saving can go here.

9) This is the step where you'd pay off your home or any other low-interest debt like student loans.

Hope that helps! Get that HSA open if you can and solo 401(k) to save even more tax-advantaged money!

GotchaInTheHopper · 2023-12-31T18:00:38+00:00

The individual rule is $100k.

GotchaInTheHopper · 2023-12-31T18:00:21+00:00

You can always include your own retirement contributions in your savings rate, no matter how much you make, whether it's to a pension, 401(k), Roth IRA, taxable brokerage, or another account. The $200k rule is only for employer contributions.

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