In this thread we pay our debt down and support each other

[Talenos]

Ahh you have the match I do. Where it's just a percentage so you have to contribute the max to get the max match. Those kind of suck, but I guess it's better than my no match I had before.

[fiveSD]

Halt is there no limit to your company match? I don't get any more $ from the company if I put in above 6% of my income, but do you keep getting more company $ up to 25%?

[Talenos]

I'm guessing it's a straight percentage with no cap.

[Halt! Hammerzeit.]

Halt is there no limit to your company match? I don't get any more $ from the company if I put in above 6% of my income, but do you keep getting more company $ up to 25%?

It's 25% uncapped up to the 401k limits. So max = $4125 for 2009.

Yours is 100% matching up to 6% of your income? So if you contributed the max amount, then you'd get $6000 (assuming you make $100k just to make the numbers easy)?

[fiveSD]

Mine is 75% matching up to 6% of my income. Essentially 4.5% of my income.

We have options now, where you can do 100% matching up to 6% but then you get no pension. When I started, I didn't have an option and so I do have a pension plus my 75% match. Hopefully they'll let me change someday, since I will be impressed if I get a pension in the end.

[Halt! Hammerzeit.]

Wait, 75% matching up to 6% != 4.5%.

If you contribute $16500, they would match $12375 if you made more than $206250, right?

[Talenos]

The limit on matching is something like 49k this year. I don't think that counts the 16,500 either.

[Reagraham Lincool]

Mine is 75% matching up to 6% of my income. Essentially 4.5% of my income.

We have options now, where you can do 100% matching up to 6% but then you get no pension. When I started, I didn't have an option and so I do have a pension plus my 75% match. Hopefully they'll let me change someday, since I will be impressed if I get a pension in the end.

More impressed than if your 401k buys more than a pack of gum by the time you retire?

[Halt! Hammerzeit.]

More impressed than if your 401k buys more than a pack of gum by the time you retire?

Huh? What kind of shitty investments are you making?

[Reagraham Lincool]

More impressed than if your 401k buys more than a pack of gum by the time you retire?

Huh? What kind of shitty investments are you making?

I was making a joke about how the US economy is collapsing.

[fiveSD]

Wait, 75% matching up to 6% != 4.5%.

If you contribute $16500, they would match $12375 if you made more than $206250, right?

What? 0.75*6 = 4.5. If I contribute $100, they contribute $75. The maximum for match is if I contribute 6% of my income, which means they then contribute 4.5%.

[Halt! Hammerzeit.]

No. What if your income was $500,000?

[daoist]

If her income were only $500,000 then she'd contribute 6%, $30,000 and receive a 75% match, which would be $22,500. And if you look, $22,500 is exactly 4.5% of $500,000. Omg!

[Talenos]

OMG except $16,500 is the maximum contribution she can make which kind of is the whole point of what he was saying. Try your fancy math again with that rule in place.

[daoist]

Oh, I get it. Sorry. We're pointing and laughing because she makes less than $275000? Yeah, man, I get it now. What a poor broke son of a bitch. If I made that little money, I'd fucking hang myself.

[fiveSD]

OMG except $16,500 is the maximum contribution she can make which kind of is the whole point of what he was saying. Try your fancy math again with that rule in place.

I thought that was assumed. You wanted me to explain to you something you obviously already knew?

[Talenos]

Keith apparently was not aware of that fact, that's all I was trying to point out. My comment was not directed at you at all.

[daoist]

Well I'm sure I'd figure it out when I'm making 275,001. Let's hope next year they reinstate our merit raise.

My main point was that 75% of 6% is indeed 4.5%. If you or Halt wanted to explain the cap, that's fine. But don't phrase it such that 6 * .75 != 4.5. Because it does.

[Talenos]

Wait, you really thought he was disputing that basic math? Surely you have to give that Halt guy more credit than that.

[daoist]

On strangetalk? No, I don't.

Fivesd flat out showed the math, and Halt (apparently) disagreed.

[fiveSD]

What was Halt asking about then? About the 401k maximum contribution? It's a dumb question that I wasn't addressing when discussing my company's policy, because it has nothing to do with my company. I thought he was disputing basic math as well.

But to clarify for those who don't seem to comprehend,

NO, MY COMPANY DOES NOT ALLOW ME TO CONTRIBUTE PAST THE FEDERAL 401K 2009 LIMIT.

JFC.

[daoist]

My company does. Also free hookers.

[LucasPukus]

The real problem is that investing in 401(k) is not the same as paying off debt and supporting each other. OFF TOPIC.

[Halt! Hammerzeit.]

You two need to stop being dumb.

I'm saying that a 75% matching up to 6% of your (undisclosed) salary does not mean 4.5%, given the limits. Yes, I am disputing your basic math...fuckers.

http://en.wikipedia.org/wiki/Boundary_case

Pedantic? Probably. Blame it on my math major.

[daoist]

The limit includes 6%, fucker.

[fiveSD]

You two need to stop being dumb.

I'm saying that a 75% matching up to 6% of your (undisclosed) salary does not mean 4.5%, given the limits. Yes, I am disputing your basic math...fuckers.

http://en.wikipedia.org/wiki/Boundary_case

Pedantic? Probably. Blame it on my math major.

Yes, it does. How is this hard to understand?

Let me break it down for you. Up to the 401k MAXIMUM FOR 2009, I can input 6% of my income and they will match with 75% of that amount. After I input the maximum amount, there is no match, because I'm at the maximum and I cannot input more.

Give me an example where a 75% matching up to 6% of my undisclosed salary does not mean 4.5%, given the limits. If the 6% of my undisclosed salary is more than the maximum, then stop saying 6% of my salary. If 6% is correct, then so is 4.5%.

//edit for example, say I make $500k/yr. I can contribute 16.5k this year, which is only 3.3% of my income, and they will match with 75% of that (or 2.475% of my income). You keep saying the 4.5% is wrong but that the 6% is correct, and that doesn't make any sense.

Also since I can't assume you know anything, the 6% is determined on a monthly basis for 401k investing.

[Halt! Hammerzeit.]

OIC. I thought it worked like this:

Salary = $100k
Contribution = $8000
Match = $6000 (i.e. 75% of $8000, capped at 6% of your salary)

[lolcat]

Got a letter forwarded to my APO that Advanta closed small business accounts effective 05/31/09. So I moved funds around and paid off my small business credit account. Seeing as how the business is on hold until I get back from Cupcake, somehow in the tax math it works in my favor.

[Talenos]

What's your business?

[daoist]

AEA ponchos.

[lolcat]

AEA ponchos.

http://english.oneleaf.biz/common/ponchoman.doc

[Turbo]

My automatic debit student loan payments start the first week of July. Hooray.

[Halt! Hammerzeit.]

Until the end of this year, I'm putting $978 pre-tax each paycheck (there are 7 more in 2009) to my 401k to get the maximum matching. Then I'll reduce it down to ~$600 and max out my Roth IRA for 2009 (have until April 15).

[Talenos]

You must be thinking of the savings thread, not the paying off debt one.

[Pesto]

Here are the details. I have two loans.

$22,737.37 @ 5%
$7,270.16 @ 3.25%

I've got enough money in the bank to pay these off in full right now. Some people tell me that student loans are "good debt to have" (or something). Is there any reason to not pay these off in full?

[DTower5]

Here are the details. I have two loans.

$22,737.37 @ 5%
$7,270.16 @ 3.25%

I've got enough money in the bank to pay these off in full right now. Some people tell me that student loans are "good debt to have" (or something). Is there any reason to not pay these off in full?

Are those fixed rates? That is the key to determine what your options are.

If they are, and you get into an investment that has no principal risk (CD's) - looks like the rates I just glanced at won't touch the 5% note, but there are other things to think about, including personal liquidity.

[caddymac]

The interest is tax deductible and the rates are low??? Plus, if you die, student loan debts go away!

How is your emergency fund? Retirement fund?

[Pesto]

Those are fixed rates, and my liquidity is fine, even paying off both loans in full.

Retirement? Dunno. Paying the max into it, if I recall.

[nippletwister]

Just pay the fuckers off.

[Fancy Bits]

Just pay the fuckers off.

[fiveSD]

Yeah. Why lose 3-5% each year on 27k when you could not? If you're not worried about emergency fund/liquidity.

[Talenos]

It's less, the interest is deductible.

[Pesto]

Okay, but how much could I really come out ahead? Would it be worth the hassle?

[Pesto]

I'm just going to pay the fuckers off. Two fewer bills to pay, and I'll be debt free.

[DTower5]

I'm just going to pay the fuckers off. Two fewer bills to pay, and I'll be debt free.

There is something^1 to be said for being debt free - and without another investment and decent liquidity, there is no reason not to pay them off - Congrats, now you can leave the thread

1) To reinforce, being debt free is not everything, please do not quote me as saying that, ever!

[fiveSD]

yeah, the interest is tax deductible, but how much do you get back? I believe for me it ends up between only 20-25% back.

[Halt! Hammerzeit.]

Also, the student loan interest credit phase-out starts if your MAGI > $55k and is completely gone at $75k.

[Talenos]

yeah, the interest is tax deductible, but how much do you get back? I believe for me it ends up between only 20-25% back.

Yeah, that's kind of how tax deductions work. I'm just saying the actual percentage of interest paid can be much lower, but yeah many of us have incomes that would not qualify for the deduction anyway.

[fiveSD]

I am not most of us yet, evidently. Damn.

[Alice Ayers]

Premier line, credit cards and car paid off. It included the new windows and the first and second heat pump. Feels so good to finally be done with all of that stuff.

[MrTippet]

Premier line, credit cards and car paid off. It included the new windows and the first and second heat pump. Feels so good to finally be done with all of that stuff.

Nice work!

[Little Bobby Tables]

Premier line, credit cards and car paid off. It included the new windows and the first and second heat pump. Feels so good to finally be done with all of that stuff.

Nice work!

Yeah. Starting 2010 totally free of CC debt and actually feeling like we can save some money will be awesome.

[Alice Ayers]

I'm going to go to disneylandWashington DC!

[fiveSD]

DC really ought to have a Disneyland anyhow.

[Zodiac]

I am not most of us yet, evidently. Damn.

Computer geeks tend to make a lot of money. More than us... way more! <shakes fist>

[Talenos]

She's a chemical engineer. She'll do fine.

[Alice Ayers]

It looks like we could have most of our student loans paid off in about 3 more years of aggressive payments. This is more encouraging to me, because I was thinking that I might just join the army to pay off everything, but that would be a 5 year commitment. My friends are actually following the Dave Ramsey plan and putting cash in envelopes for various expenses. They've cut out every possible expense, it seems. I was thinking about getting rid of my data plan and getting rid of cable TV, which would help a little bit. I guess we could technically both go down to liability-only insurance on the automobiles, but that's a big gamble in this city, and I'm not quite willing to take that risk yet.

[Halt! Hammerzeit.]

I let my credit card expenses rack up to $9000 during the last 12 months because of a 0% interest offer, and diverted the money into investment accounts that had a 60% return for 2009 (I contributed about $17k plus $4k company match).

This month I am making a $5000 payment before the 0% offer expires on 2/1/10, a $2500 payment in Feb and the rest in March (or earlier depending on tax return). The interest only jumps up to 8% after 2/1 so I think I got a pretty good deal out of all this.

[fiveSD]

yeah, 8% is really low right now. And wow, 60% return. Awesome.

[Halt! Hammerzeit.]

The credit card reform bill is really shitty for credit card deals now, but it's good for people who entered a promotional period that started before the reform and expires after the reform effect date.

Oh, that card is also an airline miles rewards card.

[Talenos]

Yeah, this year has been great for returns. Luckily I contributed a lot early in the year which went for a pretty big ride. I'm now trimming back on positions to take some profits.

My car is down to less than 4k. I have the cash to pay it off, but since I'm not making any money I'm holding off to stay liquid.

[Pesto]

Just paid off a $22k student loan.

Kind of crazy to think of.

[fiveSD]

whoa. all at once, or over time? congrats either way.

[Alice Ayers]

Just paid off a $22k student loan.

Kind of crazy to think of.

Definitely awesome.
I just paid 1k to my student loan. I remember signing the papers and wonder if my parents thought of it when they filed for divorce, since one of them is the cosigner and I don't remember which one. Assuming I die or default in a horrible crash of doom, it would suck for the wrong parent to get stuck having to pay it back.

[Fuzzy]

going to knock out most of our credit card debt with our tax return. that will leave us with student loans and about 2500 on my car.