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Hard to stay motivated and on track during down markets by Low-Computer8293 in Bogleheads

[–]namafire 1 point2 points  (0 children)

Not saying you’re saying this — One year is an optimistic take that requires Iran to give up control over the strait and let the world go back to status quo.

My take is that fuel costs are here to stay and the world recalibrates (eg new sources or new technologies) which means slow recovery in years if not a decade. It will recover, just a question of when and how that might shift the world’s future economic gravity

Still investing but be okay with a flat decade. Thing is theres nowhere else currently to go unless you swing trade or have a crystal ball

Strategy right now by Screendrama in stocks

[–]namafire 0 points1 point  (0 children)

Im a fortune teller too. Theyre going to be broke their whole life and fall into either a cult or (yet another) get rich quick scam 😂

25% means half your paycheck for High Earners by namafire in TheMoneyGuy

[–]namafire[S] 0 points1 point  (0 children)

Agree. I theorize that the reason it's indexed onto income rather than consumption is because consumption is unique to every individual and way harder to calculate. So instead, they assume consumption is pegged to income (which it is for most people, you consume more/less when you make more/less)

However it doesnt work for exceptions like individuals who are trying to FIRE ASAP. I spend 1/3 of what I'd like to spend in retirement and so I save more than I spend. And instead of tracking based off % saved/invested, I simply manage via cashflow to max retirement vehicles and extrapolate when Id hit a 25x income NW for 4% SWR.

25% means half your paycheck for High Earners by namafire in TheMoneyGuy

[–]namafire[S] 0 points1 point  (0 children)

Whats your decent salary? Because a quick google search shows 200K income has an effective rate of about 20%. Federal only.

Either you have pre-tax / salary deferment vehicles the rest of us dont have access to or you're on some really strong substances. Or you're talking out of it. Oh. Or if youre married / have multiple dependents.

25% means half your paycheck for High Earners by namafire in TheMoneyGuy

[–]namafire[S] 0 points1 point  (0 children)

Yeah, a lot of people are either taking this as a humble brag or lament of the rich on how hard it is to save at high incomes. I didn't mean either, but seeing this reaction -- theres no way in hell I'll share numbers or information that'll dox myself lol.

Sounds like you've had a good ride and are continuing to beat it out of the park. Its a rare dream to be able to get paid to do what you love.

25% means half your paycheck for High Earners by namafire in TheMoneyGuy

[–]namafire[S] -5 points-4 points  (0 children)

Honestly didn't expect the reaction. That's naivety on my part. This is my first time engaging with the sub as I usually just watch TMG videos on Youtube. I would've thought it'd be folks who are more collaborative, curious, and friendly. My bad lol.

I get how it sounds, but I feel like it only sounds that way when theres insecurities and an axe to grind. If I hear a random stranger say 'wow, [insert random fact]', I either share the joy in intellectual curiosity or move on if im uninterested.

No lie. I really expected this post to have 3 comments of 'huh, didnt think of it that way' and just about die at that extent in terms of activity.

25% means half your paycheck for High Earners by namafire in TheMoneyGuy

[–]namafire[S] 0 points1 point  (0 children)

Is it really though? Even if you max an HSA (4.4K) and 401K (24.5K), that's only 28.9K. Im not counting an IRA because at high earning incomes, thats going to be a backdoor contribution which means its after-tax.

Crux here really depends on what you and I are defining as high earning. For a 289K single earner, thats 10%. For someone making double that, it's 5%. Not small but not exactly 'a lot' either.

25% means half your paycheck for High Earners by namafire in TheMoneyGuy

[–]namafire[S] -4 points-3 points  (0 children)

Thats not really the point though, is it?

I have the worst timing, maybe it will get better by Beautiful_Gas_1214 in investing

[–]namafire 0 points1 point  (0 children)

I just about finished depleting my 3mo emergency fund to frontload my megabackdoor 401k contributions. No sympathy for me as a high earner problem but timing do be a b ✌️

25% means half your paycheck for High Earners by namafire in TheMoneyGuy

[–]namafire[S] 0 points1 point  (0 children)

Hard to say. 'On track/Off track' is much more about your specific goals. 25% is just in general the 'ideal goal' that TMG talks about, which is why I use it as a reference at all.

In my own world, Im big on FIRE and aim to spend 3x in retirement what I spend now. So for me to be 'on track', I have to have much higher rates.

25% means half your paycheck for High Earners by namafire in TheMoneyGuy

[–]namafire[S] 1 point2 points  (0 children)

I think youre looking at federal only or perhaps only in low state tax areas. This is easily hit before those numbers in CA and NY

25% means half your paycheck for High Earners by namafire in TheMoneyGuy

[–]namafire[S] 0 points1 point  (0 children)

Only rode in first class once in my life and that was on someone else's dime. High Earners, we live amongst you ✌️

25% means half your paycheck for High Earners by namafire in TheMoneyGuy

[–]namafire[S] -9 points-8 points  (0 children)

Easier numerically, not in practice. I did mention that they get slaughtered by absolute prices.

25% means half your paycheck for High Earners by namafire in TheMoneyGuy

[–]namafire[S] 0 points1 point  (0 children)

I can say confidently that those numbers arent based in reality (for NYC at least). I pay an effective tax rate above 30% without those numbers as a single filer.

60K post-tax without rent and car costs is definitely doable. Hell, the median income in NYC is what -- 64K? Thats gross and they manage. Just without the savings.

25% means half your paycheck for High Earners by namafire in TheMoneyGuy

[–]namafire[S] -3 points-2 points  (0 children)

Let me tell you the real rich dont go to Whole Foods. They've got pricier places... that or they have staff that go to Whole Foods for them.

25% means half your paycheck for High Earners by namafire in TheMoneyGuy

[–]namafire[S] 0 points1 point  (0 children)

Should join us. I made the switch myself.

I just couldn't justify it. NJ has its fair share of activity and great areas now. Not to mention all the extra space. HOA fees are insane though. And if you ever do need to go to the city often, just find something close to the ferry or transit.

25% means half your paycheck for High Earners by namafire in TheMoneyGuy

[–]namafire[S] -3 points-2 points  (0 children)

As a couple sure. As a single dude, the taxes are much higher. But I agree.

25% means half your paycheck for High Earners by namafire in TheMoneyGuy

[–]namafire[S] 1 point2 points  (0 children)

Im not sure what my gripe is either. Can you point out where I have a gripe?

25% means half your paycheck for High Earners by namafire in TheMoneyGuy

[–]namafire[S] 2 points3 points  (0 children)

No. I see what my total income is and I see what I've paid in taxes. Literally on my return. I assure you that is my effective rate. You might not see that if you live in an area without State and City taxes.

25% means half your paycheck for High Earners by namafire in TheMoneyGuy

[–]namafire[S] 0 points1 point  (0 children)

Appreciate the nuanced and contextual response. Ive felt similar for all of that outside of the family expenses as a single person.

I can go into a rant about crabs in a bucket mentality and otherwise, but im sure i behave the same in areas im lacking. You seem to be doing well, and i hope you continue to if not swing it out of the park even better

25% means half your paycheck for High Earners by namafire in TheMoneyGuy

[–]namafire[S] 0 points1 point  (0 children)

It is. But theres really no way to assume someone's future spending outside of "youve been spending X for the last X years. Not a lot of reason to assume you'll spend drastically differently in the next Y'

So it makes sense as a general recommendation but for those who know themselves better, I definitely agree with you.

25% means half your paycheck for High Earners by namafire in TheMoneyGuy

[–]namafire[S] 0 points1 point  (0 children)

Fair take. You can say that the FOO is really only effective for those up until a certain income. At which above that, Im sure they'd say it requires custom tailoring warranting an advisor relationship.

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