It's that time of year, TAX RETURN TIME!

[El Jefe]

For the past 2-3 years I have started a thread about what people were going to spend their tax return on. While greeted with some hostility, most people actually enjoyed the threads. I don't know how much I will get back, but I have some big plans for it!

I am going to try to pay a grand or so on my wifes car (We owe 3k). I am going to try and slide as much as I can at my wife's student loans (only owe 11k). Outside of those two debts, we don't have anything else luckily, because I pay out of pocket for school (ouch).

My next step depending on how much I get back would be to put at least another grand into our house fund. I live on James street, and I have designated our house fund as "Operation James Street Freedom". I would like to put some money into my IRA, currently it has none. Give my wife a little extra walking around money.

I think the last thing I would like to do is give some money to our Deacon fund at my church. This is a fund that is given by church members and distributed to the needs of the church and community if need be by the Deacon board. This fund has helped a lot of people in very bad spots, and it's my duty to help out my fellow man. Our church also houses the food pantry for our community, and we received emails saying the food pantry is direly low, they have served more families this month than ever before. So I would love to take a hundred or so and buy some food to donate.

What dreams do you guys have? I know most of the people here will probably pay down bills, but its fun to dream anyways.

inb4youareanidiotfornotinvestingit

[DaKCMan AP]

Originally Posted by Rain Man

I looked at my paycheck today, and it it's interesting. About 35 percent of my gross went to taxes and another 17 went to my IRA, so I got home with less than half my gross pay.

Damn... 35%?

After 401k contributions, taxes, medical, LTD & HSA contributions I only take home about 55% of my gross.... but 35% aren't to the government.

[Buehler445]

Originally Posted by loochy

oh you mean i should put 0 down on a new car and finance it for 5 years?

Heh. Coincidentially, I got pretty close to doing this. I ended up putting 2,000 down on a 3 year note and the car was used, but still. I had enough for about half the cost of the car, and the interest rate was so low that it was going to cost me like $200 to hold on to the rest of the cash.

I probably could have got away with nothing down, but they would have had to re-run the application, so I just put 2,000 down. But hell yes I will maintain the ability to access my money for $200 in interest.

[Buehler445]

Originally Posted by DaKCMan AP

Damn... 35%?

After 401k contributions, taxes, medical, LTD & HSA contributions I only take home about 55% of my gross.... but 35% aren't to the government.

You have long term disability?

I'm quite a ways removed from the insurance industry, but why LTD? And why not STD with it? If you don't mind me asking. I'm not criticizing, just curious on the logic.

[DaKCMan AP]

Originally Posted by Buehler445

You have long term disability?

I'm quite a ways removed from the insurance industry, but why LTD? And why not STD with it? If you don't mind me asking. I'm not criticizing, just curious on the logic.

The company provides STD to all employees. The LTD is an additional option.

[Buehler445]

Originally Posted by DaKCMan AP

The company provides STD to all employees. The LTD is an additional option.

Makes sense.

Perhaps I should be looking into that type of insurance since I'm much more likely to need it in my industry than the normal office job, but at this point, I can't justify the cost.

Are you thinking you are protecting yourself against the car wreck/cancer types of risks?

[JASONSAUTO]

Originally Posted by loochy

oh you mean i should put 0 down on a new car and finance it for 5 years?

i was thinking more like 7 years, and make sure you borrow some money to put some wheels on it too

[DaKCMan AP]

Originally Posted by Buehler445

Makes sense.

Perhaps I should be looking into that type of insurance since I'm much more likely to need it in my industry than the normal office job, but at this point, I can't justify the cost.

Are you thinking you are protecting yourself against the car wreck/cancer types of risks?

Any type of long-term risk that would prevent me from working. I travel often, I live an active lifestyle, I sometimes work around large machinery and hazardous material. Anything can happen.

LTD @ 60% of my annual salary if I can't work anymore is worth the 0.4% of my gross salary that's deducted.

[loochy]

Originally Posted by Buehler445

Heh. Coincidentially, I got pretty close to doing this. I ended up putting 2,000 down on a 3 year note and the car was used, but still. I had enough for about half the cost of the car, and the interest rate was so low that it was going to cost me like $200 to hold on to the rest of the cash.

I probably could have got away with nothing down, but they would have had to re-run the application, so I just put 2,000 down. But hell yes I will maintain the ability to access my money for $200 in interest.

Well yeah, if you can get a 0% interest deal or something close to that, do it.

You know what I meant.

[loochy]

Originally Posted by JASONSAUTO

i was thinking more like 7 years, and make sure you borrow some money to put some wheels on it too

[Buehler445]

Originally Posted by loochy

Well yeah, if you can get a 0% interest deal or something close to that, do it.

You know what I meant.

It was 2.0% money and not any special deal or anything. And it is probably a length of loan deal. My buddy looked into financing a car at 6 years instead of 3 and his rates were much higher. I don't remember how long he tied it up for but it wasn't 6.

I just thought it was funny that you were being sarcastic and I just did almost that.

[Buehler445]

Originally Posted by loochy

[Buehler445]

Originally Posted by DaKCMan AP

Any type of long-term risk that would prevent me from working. I travel often, I live an active lifestyle, I sometimes work around large machinery and hazardous material. Anything can happen.

LTD @ 60% of my annual salary if I can't work anymore is worth the 0.4% of my gross salary that's deducted.

I may have to look into that some. Although it is really difficult to calculate what you need over the long term with inflation. I've got probably 40 more years of work left and I have a hard time calculating insurance that far out.

Maybe I'll just keep bought up on life insurance and have my wife throw me into a driveshaft if I can't work anymore.

[DaKCMan AP]

Originally Posted by Buehler445

It was 2.0% money and not any special deal or anything. And it is probably a length of loan deal. My buddy looked into financing a car at 6 years instead of 3 and his rates were much higher. I don't remember how long he tied it up for but it wasn't 6.

I just thought it was funny that you were being sarcastic and I just did almost that.

Yeah - when I bought my car I put about half down and then financed 5yrs @ 4.24%. This was through the dealer and necessary to get something like $2500 in rebates. After a couple of months I went and refinanced 3yrs @ 1.99%.

Win.

[Buehler445]

Originally Posted by DaKCMan AP

Yeah - when I bought my car I put about half down and then financed 5yrs @ 4.24%. This was through the dealer and necessary to get something like $2500 in rebates. After a couple of months I went and refinanced 3yrs @ 1.99%.

Win.

Nice.

[DaKCMan AP]

Originally Posted by Buehler445

I may have to look into that some. Although it is really difficult to calculate what you need over the long term with inflation. I've got probably 40 more years of work left and I have a hard time calculating insurance that far out.

Maybe I'll just keep bought up on life insurance and have my wife throw me into a driveshaft if I can't work anymore.

The 60% is just what's offered through our company LTD option. I'm single with no dependents and, at least right now, 60% of my salary is more than my annual expenses. Once I have a family, dependents, etc. it will all change.