What to do with the Money from the Tax cuts.

Thanks Bungleau!!! You made my head hurt [img]smile.gif[/img] Ok Math aside [img]smile.gif[/img] it made sense to me, and it made sense to Mysticelt [img]smile.gif[/img] thanks for the assist [img]smile.gif[/img] (and yeah the car is gonna be paid off before august barring any hiccups).


[ 06-02-2003, 05:16 PM: Message edited by: MagiK ]

[Timber Loftis]

Originally posted by MagiK: quote: Originally posted by Timber Loftis: Your savings vehicle seems smart, btw. I'd use it, except I am at my first job ever where there is NO VACATION WHATSOEVER.

Say what???? no vacation time? Jeez they better pay you a lot cause your gonna burn out real quick like....not to mention you are bound to become sick at some point....no one is perfectly healthy all the time.....man that really blows...I get 8.03 hours accumulated every 2 weeks. [/QUOTE]No *guaranteed* vacation alloted at my firm. So far, they seem to be cool about it if you need a day off here and there. I won't be taking a full week for a while though, probably, as a show of dedication -- probably 2 years before I seek to head back to my place in the Carribean for a week again. As long as we bill 2000+ hours/ yr though, they're pretty cool about it if you come in late, leave early, take a day off, or work at home. Boy, now I'm way OT. Sorry dudes and dudettes.

[IronDragon]

I just did some research and some math and found that this wonderful tax cut will mean that next year I will save a grand total of approximately $53.00.

You cannot imagine the spending spree I will be having with that fat wad of cash.

[pritchke]

Originally posted by IronDragon: I just did some research and some math and found that this wonderful tax cut will mean that next year I will save a grand total of approximately $53.00. You cannot imagine the spending spree I will be having with that fat wad of cash.

Enough for a new game. Maybe!! Or several if you buy old ones!!!

[Azred]

Originally posted by Bungleau: Note that the numbers above are examples, and real actuarials can poke holes in them.

You rang? [img]graemlins/beigesmilewinkgrin.gif[/img]

No, the numbers in your example are fine, as is your logic. Given two loans of equal term, pay off the higher interest rate first. If you can pay off one loan quickly, do so, then apply those payments against the next loan to pay it off quickly. This is called "debt stacking", and will save you a great deal of money in the long run.

MagiK's mentioning dollar cost averaging is also important, because this is the best way to save for the future. I have a mathematical proof that, by using dollar cost averaging, the price of an investment can drop drastically (66% in my proof) but you can still realize an amazing return on your investment.

Or you could play the lottery...or take a vacation to Las Vegas. [img]tongue.gif[/img]

Originally posted by IronDragon: I just did some research and some math and found that this wonderful tax cut will mean that next year I will save a grand total of approximately $53.00. You cannot imagine the spending spree I will be having with that fat wad of cash.

ID if you invested that whopping $53 every month for 30 years, you would be looking at over $100K. Bitch whine and moan all you want but if you don't make it work for you, it is your own fault...sorry

[Davros]

I don't know how correct his maths are MagiK, but you would do well to re-read what the guy actually wrote. It looks to me that in your eagerness to slam him that you are slamming him on something that he didn't actually say.

Well either that, or you have a way of taking $53 "per year" (ah, plink, there is that penny [img]smile.gif[/img] ) and turning it into $100K in 30 years - if so, where do I get a piece of that action.

[harleyquinn]

Magik (or anyone else) do you have a website that has info about the new tax cuts so that I can figure out what my take is?

[Donut]

How to spend the money:

33% on booze
33% on women
and the rest I'd just waste!

You can't take it with you!

Originally posted by Davros: I don't know how correct his maths are MagiK, but you would do well to re-read what the guy actually wrote. It looks to me that in your eagerness to slam him that you are slamming him on something that he didn't actually say. And you sir have, in your eagerness to slam me..have actually made a false assumption [img]smile.gif[/img] Nice try, but no ceeegar sir. I was not "eager to slam" as a matter of fact lets see.....I didn't even look at this thread untill I had been at work for several hours...(Edit: I wouldn't call more than 12 hour time difference an over eager response) Well either that, or you have a way of taking $53 "per year" (ah, plink, there is that penny [img]smile.gif[/img] ) and turning it into $100K in 30 years - if so, where do I get a piece of that action. As for making assumptions...he never stated a time frame...since I am basing the whole thread on "The average family of 4" receiving roughly $100 a month in federal tax relief from both Bush tax cuts, it is entirely reasonable for me to assume a montly time frame. Now since you seem unwilling to do the math, I will give you a link to a financial calculator and tell you that at $53 per month at 10% over 30 years (a typical full market mutual fund should perform nicely for this) will net you roughly $119,805.86....now go invest and have a nice life [img]smile.gif[/img] Find a calculator here: http://www.bobbrinker.com/stcalc.asp also note that if you want to invest just $5000 total for your kid/kids you can turn that $5000 into 2.4 million by the time they are 65 in a RIC-E Trust Fund. Yeah I know, I sound like a Shill for Ric Edelman's favorite trust vehicle but hey, its a great idea and an easy way to ensure your children have a bit less anxiety about their futures than you may have about yours(or mine or who evers).

[ 06-03-2003, 10:39 AM: Message edited by: MagiK ]