What to do with the extra

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Figured I wanted to write and give a 6 month update. We are living pretty comfortably, not much has changed. The extra money is going into our family one way or the other.

We do go out to eat like once more a month but Mrs is more home body and once she's home from work she's wanting to cozy up.

As I said in my first post, this was a mix of flex, blog and motivational this is doable if you work to make it.

Mrs spent some of the money on a turbo kit for her car and I'm the sucker putting it on.
 
Bassomatic said:
Figured I wanted to write and give a 6 month update. We are living pretty comfortably, not much has changed. The extra money is going into our family one way or the other.

We do go out to eat like once more a month but Mrs is more home body and once she's home from work she's wanting to cozy up.

As I said in my first post, this was a mix of flex, blog and motivational this is doable if you work to make it.

Mrs spent some of the money on a turbo kit for her car and I'm the sucker putting it on.
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Start a trust fund for your family. We've talked about starting one just to pay for books for college students in our family.

Maybe get a vacation home? A cabin you can hang out in? Especially since you're not afraid of working on your house. If I had the free time and the finances I'd invest in a lakeside cabin with my family
 
Bassomatic said:
As for jobs we're not ready to stop (least her because if she's loses that pension I'll kill her) my ego won't let me step away from my career and really it's not like we're "rich" to just stop working.
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This is the only thing that raises an eyebrow for me. You're describing like you're already at retirement wealth, young and happy to continue working, but your retirement years in the future are dependent on the pension? I'd fix that part so that her pension is just a nice extra on top of income from investments.
 
Torque Wheeler said:
Start a trust fund for your family. We've talked about starting one just to pay for books for college students in our family.
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I would consider prioritizing putting it into a 529 plan. There maybe some annoyance with having to roll money between accounts to balance funds between multiple beneficiaries (each fund has a specified beneficiary, but you can move money between them freely as needs change). However, if you have enough money and time for a trust to be relevant, you have enough of both for capital gains and dividend taxes to be relevant. You can also just gift it directly if none of that matters.

Reimbursement from 529 plans is extremely broad, so you likely are always able to find some expense to fund with it if they are doing some form of education. And there are rules on rolling it into a Roth IRA account of the beneficiary if it gets over funded.

Situations I can think of where a trust becomes useful are pretty niche. If you want to explicitly give up control of the money early (if the reason is you are having to wrangle multiple people contributing that part may be useful), are planning on dieing soon and want to handle gifting it now, or are thinking you are going to run up against the annual gift limit ($19k per gifter per beneficiary per year in 2026, so a shit ton of money) are the ones that come to mind.
Jerk Sausage said:
your retirement years in the future are dependent on the pension
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I can also see it as just feeling wasteful. Even if you don't "need" the money, working to build up a pension for 30 or whatever years and then dropping it at the last moment will feel bad for most people regardless of their financial situation.

But also yes, there is a big difference between feeling like you have enough money now and having enough money to feel secure over a potential 30 to 40 year retirement period with all its ups and downs and potentially significant healthcare costs later on.
 
Actually first of all, from a semi shit post semi brag got some really good advice here, and I hope people who aren't in this spot read this so they can future plan you don't have to be young to figure how to make sure your money works for you! Many people will pay their homes off or be mortgage free and not just wasting that cash is VERY important. It's amazing how many people own a home and are poor.

Jerk Sausage said:
This is the only thing that raises an eyebrow for me. You're describing like you're already at retirement wealth, young and happy to continue working, but your retirement years in the future are dependent on the pension? I'd fix that part so that her pension is just a nice extra on top of income from investments.
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Mrs can pull her pension well before I can take IRA (or hers) before a penalty. Actually we probably could live off that. Perhaps I'm wording it poorly but she's wanting out of her career asap (despite being another decade) while she's a professional lazy bones, she will do something else but wants to grab her pension second she can. Granted it's a bit away, who knows what she will feel at the time. We are in a place she can do this (frankly I think she will) and she can work at some menial job that brings her more joy and pays the light bill, or she will stick it out. It's just what we both kinda see.


Torque Wheeler said:
I forgot getting involved in your community. I volunteer a lot during the summer, and for me it would be nice to treat my fellow volunteers and maybe bankroll our bigger projects
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That's actually a great idea and I'm pretty active in my church and our book stuff and food bank, funny enough, we are in a nicer area and we eat so damn well because of it... ok that sounds bad so I'll leave it for a laugh but, I often drive to the local low income retirement home and drop meals off. We are given some pretty damn good stuff, anything left over goes to the pantry (that is pretty untouched) perisibles go to local food store (has a "no guilt" rack of freebies) and another pantry, but anyone who works can grab something. We are really blessed our local places donate enough we have waste! So I don't feel any shame when we give what's needed out first and I can take home some dumplings etc.

We donate some for stuff but I really like the idea of just picking up lunch bills etc for the stuff we already do. I'm pretty upset like many how many charities blow money and pocket it but yeah everyone cleaning the park up just say "i got pizza" even if I can't write it off, fuck it that's the boots on the ground people who care.
 
Bassomatic said:
Mrs can pull her pension well before I can take IRA (or hers) before a penalty. Actually we probably could live off that. Perhaps I'm wording it poorly but she's wanting out of her career asap (despite being another decade) while she's a professional lazy bones, she will do something else but wants to grab her pension second she can. Granted it's a bit away, who knows what she will feel at the time. We are in a place she can do this (frankly I think she will) and she can work at some menial job that brings her more joy and pays the light bill, or she will stick it out. It's just what we both kinda see.
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That makes more sense. The way you worded it before had me thinking you were fully dependent on it. But it's a more nuanced thing where she's not in love with her career, but it'd feel like a waste to not reach the pension, so she's sticking it out at least for now. So long as her job doesn't bring misery to either of you, that's probably the right thing.

It sounds like you're doing all the right things brother. Be generous, don't gamble or buy frivolous nonsense, and do what you love. Good job.
 
How to keep black cloud of inconveniences at every turn away when otherwise trying to do everything right? I feel like I have been on a nutkicking conveyor belt for years now and I think saving money is great, but if you get backed up due to nut kicking conveyor it doesn't feel right to save any of what is owed before you even get it.

If my system gives up hope and optimism before I do and leaves me in solitude I do have a backup plan it seems to work well for others. chappelles-show-dave-chappelle.gif
 
Jerk Sausage said:
That makes more sense. The way you worded it before had me thinking you were fully dependent on it. But it's a more nuanced thing where she's not in love with her career, but it'd feel like a waste to not reach the pension, so she's sticking it out at least for now. So long as her job doesn't bring misery to either of you, that's probably the right thing.

It sounds like you're doing all the right things brother. Be generous, don't gamble or buy frivolous nonsense, and do what you love. Good job.
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I'm semi retarded and try to not share everything of our finances, so forgive me, yeah. Thanks for the kind words at the end, we ARE blessed and know it but there's some pride and for me personally , I WANT you all to have this we ALL can. I don't want to boomer just don't buy funkos and eat ramen but spend smart save put money into you and it WILL be okay.


YouDoNotHaveTheRight said:
How to keep black cloud of inconveniences at every turn away when otherwise trying to do everything right? I feel like I have been on a nutkicking conveyor belt for years now and I think saving money is great, but if you get backed up due to nut kicking conveyor it doesn't feel right to save any of what is owed before you even get it.

If my system gives up hope and optimism before I do and leaves me in solitude I do have a backup plan it seems to work well for others. View attachment 8558340
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I'm sorry, look yes this was part a shit post, part a brag, i've had some awful life kicks in my time. This isn't the place because A: PL B: overall not a huge fiscal loss.

I would and will open my ear to help and listen but I don't want to side track this, while it kinda started as a silly post, this has given some great advice for people whom are upper middle class and or older. Honestly, either new thread or just DM. I know this sounds corny but most of us can do better. I want this for us.

Maybe we can expand this post as how to do some more when you're stable.
 
Its all good man I did read where you said you started home ownership one way and ended up a different way. Also by the timeline it sounds like you mortgaged up at a good time. I think with enough patience and persistance things are going to work out. Usually people plan for a rainy day, but I dont think anyones prepared for just endless rain it could always be worse though.
 
This is from experience.

START SAVING LIKE A MOTHER FUCKER.

IRA's,

TAKING TAXED MONEY OUT FROM THE BANK FOR EMERGENCIES. Note: I've already shown on this site the large amount of Fuck You money I have on hand And it is way over what the average American makes. If I need to do something NOW. I can do it.

Note: Even though I have medical insurance which paid 700 thousand dollars, The out of pocket expenses have reached 100 thousand dollars in out of pocket expenses. UNDERSTAND THAT 100 GRAND OF OUT OF POCKET EXPENSES BREAKS 90% OF ALL AMERICAN HOUSE HOLDS FINANCIALLY... I can pay for this because of the passive positive revenue I have created when I was young. I prepared for long term situations which is why I'm a 1%er and not like the rest of the worthless indivuals here in Silicon Valley.

I don't CARE about cars... they depreciate in value. I DON'T CARE ABOUT FANCY THINGS FOR THE SAME REASON.

LUXURY ITEMS ARE ONLY ACHIEVED WHEN IT DOES NOT EFFECT THE BOTTOM LINE OF YOUR SURVIVAL AND WEALFARE TO YOU AND YOUR FAMILY. I seen this happen too many times with rich people living beyond their means and suddenly go broke because they did not plan for any sort of financial emergencies.

I'm into real estate, then cash (MM, CD's, Treasuries), then stocks.

Most importantly BE prepared for bad things to happen. Because they ALWAYS do.
 
TheRedChair said:
This is from experience.

START SAVING LIKE A MOTHER FUCKER.

IRA's,

TAKING TAXED MONEY OUT FROM THE BANK FOR EMERGENCIES. Note: I've already shown on this site the large amount of Fuck You money I have on hand And it is way over what the average American makes. If I need to do something NOW. I can do it.

Note: Even though I have medical insurance which paid 700 thousand dollars, The out of pocket expenses have reached 100 thousand dollars in out of pocket expenses. UNDERSTAND THAT 100 GRAND OF OUT OF POCKET EXPENSES BREAKS 90% OF ALL AMERICAN HOUSE HOLDS FINANCIALLY... I can pay for this because of the passive positive revenue I have created when I was young. I prepared for long term situations which is why I'm a 1%er and not like the rest of the worthless indivuals here in Silicon Valley.

I don't CARE about cars... they depreciate in value. I DON'T CARE ABOUT FANCY THINGS FOR THE SAME REASON.

LUXURY ITEMS ARE ONLY ACHIEVED WHEN IT DOES NOT EFFECT THE BOTTOM LINE OF YOUR SURVIVAL AND WEALFARE TO YOU AND YOUR FAMILY. I seen this happen too many times with rich people living beyond their means and suddenly go broke because they did not plan for any sort of financial emergencies.

I'm into real estate, then cash (MM, CD's, Treasuries), then stocks.

Most importantly BE prepared for bad things to happen. Because they ALWAYS do.
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thats pretty much my position too ......

Get out of all debt, Own what you have, Hide as much Pet rocks or Fun tickets as you can, and stay out of the banks ....... CD's I guess if you getting a food interest rate, I prefer treasury Direct notes ...... but its hunker down time the tide is going out lets see who is swimming butt naked!
 
Get out of debt (got this one good)
Save for emergencies
Get out of expenses (buying a house covered part of this, but look how you can reduce current and future expenses, often by buying now instead of renting)
Save for goals
Plan for the future
 
Honestly sounds like you're doing alright.
Start putting some money aside each month to eventually pay for a nice vacation or something fun.

All too often you hear about people slaving away for years building up a nice nest egg and then croaking at 45-50, not being able to enjoy any of it. Personally, the stuff I enjoy doing on vacation I don't see myself being able to do in retirement so best to get some of it in while I can.

Also, I stash all of our mid-term savings (expecting to spend in 6mo-1yr) cash in treasuries and whatnot for the state tax exemption. Longer term is in the general market -- leaning tech heavy rn, shorter term cash not being used to pay bills, etc. is all invested into treasury funds/money markets (currently VBIL and FDLXX). It's a little extra work for the treasuries, but being able to exempt hundreds of dollars of income from state taxes is a great feeling. Uncle Sam still gets his cut though...
 
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