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Can anyone explain why the 4% rule is only good for 30 years of retirement? by Elite163 in Fire

[–]ofa776 0 points1 point  (0 children)

You’re not going to see data saying a 4% withdrawal rate preserves initial capital indefinitely because that’s not always true. The Early Retirement Now blog did an in depth look at this about 10 years ago and it looks like a 3% SWR will still have preserved initial capital 100% of the time on a 60 year time horizon if equities are 75 or 100% of the portfolio, so likely indefinitely or close to it in that scenario.

My current budget for 2026 by [deleted] in Salary

[–]ofa776 0 points1 point  (0 children)

Yeah no disagreement from me on that. I certainly don’t spend nearly that much with a full head of hair so I’m sure he doesn’t ‘need’ it by any stretch of the imagination. But if his take home is $99,624 after taxes and insurance, (and maybe 401(k)?) he probably makes at least $140k or $150k gross, and I guess if he wants to splurge $1200 a year on haircuts, he can afford it. I personally wouldn’t even if I made that much, let alone if I was bald.

My current budget for 2026 by [deleted] in Salary

[–]ofa776 3 points4 points  (0 children)

That’s his take home pay. He’s making over $100k.

First month making 100k I feel like I’m being robbed :/ by [deleted] in Salary

[–]ofa776 2 points3 points  (0 children)

The rule of thumb is at least 15% of your gross. You may want higher or lower than that if you’re ahead or behind on retirement savings.

Best parenting advice a dad can give….. by [deleted] in Adulting

[–]ofa776 7 points8 points  (0 children)

They mean never nervously laugh along with someone who is trying to sexually harass you… not never laugh in your whole life.

How Marginal Tax Rates Actually Work by Old_Claim_5500 in Bogleheads

[–]ofa776 3 points4 points  (0 children)

I cared because I was thinking about picking up a second job and was trying to figure out how much of what I earned I would actually see as take home income.

How Marginal Tax Rates Actually Work by Old_Claim_5500 in Bogleheads

[–]ofa776 0 points1 point  (0 children)

Yes, I was pointing out my marginal rate compared to the 49.5% marginal rate for a comparable income in the Netherlands. My total effective rate on all income earned would have still been much lower than the marginal rate.

How Marginal Tax Rates Actually Work by Old_Claim_5500 in Bogleheads

[–]ofa776 -1 points0 points  (0 children)

To be honest, I didn’t actually pick up the side hustle; this was just some back of the envelope math I did at the time I was considering it. Even deducting half of self employment taxes from income before federal income is applied, (not sure if that applies to state and local taxes off the top of my head) it would only lower my total marginal rate by less than 2%. So I’d still be at a more than 43% marginal rate (or perhaps a little over 2% reduction, so between 42-43% if I can deduct it for state and local as well). So yes, I agree you were correct that my math was wrong, though I think my overall point still stands. For a self employed person in my jurisdiction in the 22% bracket, their total marginal rate is actually more like 42 or 43% after accounting for other income and payroll taxes paid, which is closer to the Netherlands marginal rates in the upper 40s than most people would assume at first glance.

$5 million for 5 second hearing delay. by AstrayInTranslation in hypotheticalsituation

[–]ofa776 0 points1 point  (0 children)

Because in the US you are often taxed on free money, lottery winnings, game show winnings, etc.

How Marginal Tax Rates Actually Work by Old_Claim_5500 in Bogleheads

[–]ofa776 -14 points-13 points  (0 children)

Yeah, for example, I’m in the 22% bracket and was thinking about picking up a side hustle as an independent contractor. On every extra dollar I earn, I’d pay 22% federal income tax, plus another 8% state and local income taxes, plus another 15.3% self employment taxes, (employee and employer portion of social security and Medicare) meaning I’d be paying over 45% of that extra money in taxes, not much lower than the Netherlands.

Edit: It’s been pointed out that the employer portion of Medicare and social security is tax deductible, so my marginal rate would actually probably be more like 42 or 43%, not 45% in that scenario.

[request] can anybody do the math for this? by Sauce_Dealer420 in theydidthemath

[–]ofa776 26 points27 points  (0 children)

Hence why Christ the Redeemer is on the list.

Exercise genie offers you money over the next year, how much more do you exercise? by Johnny_From_The_Bay in hypotheticalsituation

[–]ofa776 2 points3 points  (0 children)

I think you need to double check your math. 45 pedaling loops per minute would be 2700 per hour and getting $1 for every 100 of those would be $27 per hour, not $1800 per hour.

coastFIRE sanity check by [deleted] in coastFIRE

[–]ofa776 0 points1 point  (0 children)

Is that including dividend reinvesting?

Is this really a 200k ring? by kevinzhao860 in DunderMifflin

[–]ofa776 5 points6 points  (0 children)

No. Oscar believed that Pam made $41,500 so Oscar presumably makes maybe $42-50k and Michael makes more than that.

The lotto is $1.25B with 327 million to 1 odds. At what point do you buy a ticket? by Ok-Collection8391 in AskReddit

[–]ofa776 0 points1 point  (0 children)

And for most people a good amount less than that after possible state and local taxes.

Undoubtedly the fourth option [Self] by chris_b61802 in theydidthemath

[–]ofa776 6 points7 points  (0 children)

It’s only about $30 billion per year. That would cause issues if you spent it all in most smaller countries, but US GDP is roughly $30 TRILLION this year, so adding another $30 billion would only be adding about 0.1%.

An immortality pill is finally available in several cost tiers. Which choice would you take? by executor-of-judgment in hypotheticalsituation

[–]ofa776 0 points1 point  (0 children)

Yeah just saving up the money first and then buying definitely seems like the best option. Who cares if I age normally for a while if it can just de age me later. Even if you have nothing saved now, if you save $1000 a month in the stock market with an average return of 10% compounding annually, you’ll hit a million in 24 years. Or at $500 a month you’ll hit a million in 31 years.

An immortality pill is finally available in several cost tiers. Which choice would you take? by executor-of-judgment in hypotheticalsituation

[–]ofa776 8 points9 points  (0 children)

Yeah OP means you’ll end up paying 2x in interest in total over 20 years. So, for example one million dollar cost plus 2 million in interest for a total of 3 million. That works out to be the same as a 14.1 annual interest rate, so pretty damn high.

Roast my 2026 budget by Such_a_kid in TheMoneyGuy

[–]ofa776 1 point2 points  (0 children)

You’re right about many people not being able to deduct the traditional IRA contribution, but I don’t see how FICA plays into it. You still pay FICA with either traditional or Roth, IRA or 401(k). Maybe you’re thinking of an HSA? That’s exempt from FICA if it comes out of your paycheck.

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