This 4×6 index card has all the financial advice you’ll ever need

Post by mc32 » Tue, Sep 17, 2013, 4:30 AM UTC

cdcarter wrote: post #181

azelfrath wrote: post #173

Earlier quoted context omitted.

I could not agree with you more had I said those words myself. A year ago I had a great job as a sysadmin, then I got laid off. Shit happens. I got a job doing landscaping for $10 an hour til I could find something better, and when winter came I worked in a restaurant serving people in the city. What did I do? I stopped eating out and put my cooking skills to use saving money by eating in. I cut out cable, lowered my…

That's not being poor. Try earning federal minimum wage and providing for 2-3 people. You cut the crap out early. But your car that you need to get to work still breaks down. Your SNAP (don't know what they are? you've never been poor) benefits still run out too soon. And you and your kids still get sick.

Post by 727374 » Tue, Sep 17, 2013, 4:31 AM UTC

kamaal wrote: post #186

As some one who takes great meticulous care in planning and investing regularly, both for the long term and super long term(retirement savings), I can pitch in and offer some advice here. First advice I would give is, totally avoid using credit cards. It might sound impractical, but I've found some workarounds for it. Which is to use my debit card as a credit card. Go frugal for a few days and save some money in the…

Post by mc32 » Tue, Sep 17, 2013, 4:35 AM UTC

dragonwriter wrote: post #161

staccatomeasure wrote: post #156

Earlier quoted context omitted.

No. Poor people cut out non-essentials, be more efficient, and save money. A lack of nice things now will help later. Buy cheaper clothes, stop smoking, stop drinking, eat out less, don't have a fancy car...etc. Don't live beyond your means and consider your means what allows you to save 20%. Exactly what I'd have to do if I wanted to save more money. Stop pretending like poor people are all dizzy starving idiots tha…

> No. Poor people cut out non-essentials, be more efficient, and save money. If you have surplus income after paying for essentials, you aren't poor.

Post by mrb » Tue, Sep 17, 2013, 4:40 AM UTC

WildUtah wrote: post #182

mrb wrote: post #58

Earlier quoted context omitted.

With no employer match, a 401k has ZERO tax advantages. Because it merely delays when your income is taxed: after withdrawing it from the 401k. Mathematically you end up with the same capital whether your pay income taxes today and invest post-tax money, or whether you invest in a pre-tax 401k and pay taxes later.

Mathematically you end up with the same capital whether your pay income taxes today and invest post-tax money No. ___ Put $100 in an IRA. [$100] Quadruple your money by keeping it in an index fund for a couple decades. [$400] Pay 25% income tax on the money. [$300] Spend $300 in retirement. --- Or, ___ Earn $100. [$100] Pay 25% income tax on the money today. [$75] Quadruple your money by keeping it in an index fund f…

Post by thesz » Tue, Sep 17, 2013, 4:42 AM UTC

mechanical_fish wrote: post #149

jellicle wrote: post #80

There are a couple of good parts about this post. The first is the HN comments, which are an unintentional fountain of hilarity. But the second is the assumptions. 50% of the US population can't afford to put even a dollar into any sort of investment security. Of the 50% of the public that does own some sort of security, most of them are in the three-figures range. This index card, without realizing it at all, has ta…

The percentage of US workers with access to a retirement-benefits plan is 71%. 57% of all US workers participate in such a plan. (Source: U.S. Bureau of Labor Statistics, 2009 National Compensation Survey, http://www.bls.gov/ncs/ebs/benefits/2009/ebbl0044.pdf ) In Table 2, it says that even 15% of the lowest income decile - people making less than 90% of workers - find a way to participate in a retirement plan. Here'…