U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Economics
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
 
Old 02-22-2019, 03:03 PM
 
8,751 posts, read 5,903,615 times
Reputation: 16327

Advertisements

Quote:
Originally Posted by oceangaia View Post
So many people don't understand that if you are getting a big tax refund you are doing it wrong. That just means you paid in advance more than you owe and gave the government an interest-free loan. It would be like paying the electric company $200 every month for a $150 bill then celebrating when they "give you back" $600 at end of year.
It works for some people

The average taxpayer would just **** the money away each month

We don't need the monthly bump. Getting 5k back, pays for our vacation.
Reply With Quote Quick reply to this message

 
Old 02-22-2019, 03:27 PM
 
25,090 posts, read 32,149,656 times
Reputation: 30551
Quote:
Originally Posted by mike1003 View Post
It works for some people

The average taxpayer would just **** the money away each month

We don't need the monthly bump. Getting 5k back, pays for our vacation.
Put that money away each paycheck and earn interest on it.
Reply With Quote Quick reply to this message
 
Old 02-22-2019, 03:39 PM
 
8,975 posts, read 4,239,533 times
Reputation: 11484
Quote:
Originally Posted by ChessieMom View Post
Put that money away each paycheck and earn interest on it.

That would be best but I get what he is saying about many people not having the discipline to do that. Maybe the feds should take a few more bucks out and put it into an IRA for them as well.
Reply With Quote Quick reply to this message
 
Old 02-22-2019, 03:50 PM
 
487 posts, read 219,151 times
Reputation: 1938
Quote:
Originally Posted by mike1003 View Post
It works for some people

The average taxpayer would just **** the money away each month

We don't need the monthly bump. Getting 5k back, pays for our vacation.
I can't understand those who don't have the self discipline to save. Just have your pay directly deposited with a certain amount diverted to your savings account.

I would think that those people who are incapable of doing that---and sticking to it--- are going to be having financial problems and living paycheck to paycheck their entire working lives.

And will be in for rough going when they retire. SMH
Reply With Quote Quick reply to this message
 
Old 02-22-2019, 04:32 PM
 
Location: Southern New Hampshire
7,018 posts, read 12,261,588 times
Reputation: 20746
Quote:
Originally Posted by mike1003 View Post
Exactly!! You are one of the smart ones who understand.

WE adjusted last year and on same income saved almost 5K which we received as a refund.

We are happy with the Tax Cut
Quote:
Originally Posted by mike1003 View Post
It works for some people

The average taxpayer would just **** the money away each month

We don't need the monthly bump. Getting 5k back, pays for our vacation.
The weird thing is, you sound financially savvy ... as in, you wouldn't just *** away the money each month.

But you instead CHOOSE to give the government an interest-free loan of $5,000?!

Seems contradictory.

Quote:
Originally Posted by ChessieMom View Post
Put that money away each paycheck and earn interest on it.
Exactly.
Reply With Quote Quick reply to this message
 
Old 02-22-2019, 04:51 PM
 
8,751 posts, read 5,903,615 times
Reputation: 16327
Quote:
Originally Posted by oceangaia View Post
That would be best but I get what he is saying about many people not having the discipline to do that. Maybe the feds should take a few more bucks out and put it into an IRA for them as well.

I have the discipline But with interest so low, there is no incentive to put it into savings. For us, it is a painless and mindless way to cover our vacation. (We are lucky that we have saved enough that we don't need the extra money monthly and I don't want to pull cash out of investments to cover a recurring yearly expense)

Last edited by mike1003; 02-22-2019 at 05:13 PM..
Reply With Quote Quick reply to this message
 
Old 02-22-2019, 04:54 PM
 
Location: Duluth, MN
729 posts, read 346,292 times
Reputation: 1216
I have yet to understand how the national conversation isn't about the change in net tax burden. If you want a higher refund, just add it to your W-4. Believe me, the IRS loves holding your money (although too much and they might audit you).
Reply With Quote Quick reply to this message
 
Old 02-22-2019, 04:57 PM
 
18,320 posts, read 13,026,010 times
Reputation: 13644
By the editing it looks like this thread has ended in regret
Reply With Quote Quick reply to this message
 
Old 02-22-2019, 04:59 PM
 
8,975 posts, read 4,239,533 times
Reputation: 11484
Quote:
Originally Posted by mike1003 View Post
I have the discipline But with interest so low, there is no incentive to put it into savings. For us, it is a painless and mindless wa)y to cover our vacation. (We are lucky that we have saved enough that we don't need the extra money monthly and I don't want to pull cash out of investments to cover a recurring yearly expense)

You really see no incentive in you holding possession of your money that can be accessed at any time versus the government holding possession of your money that can only be accessed at end of year by filing a return? You already said you had the discipline to hold possession and not spend it but if it was in a savings account and you had a sudden expense like major car repair or AC repair then you could access it. The govt isn't going to let you have that overpaid "refund" early even if your life is depending upon it.
Reply With Quote Quick reply to this message
 
Old 02-22-2019, 05:07 PM
 
8,751 posts, read 5,903,615 times
Reputation: 16327
Quote:
Originally Posted by karen_in_nh_2012 View Post
The weird thing is, you sound financially savvy ... as in, you wouldn't just *** away the money each month.

But you instead CHOOSE to give the government an interest-free loan of $5,000?!

Seems contradictory.



Exactly.
I am financially savvy.

You show me how, with amortizing 416.67 a month over a one year period can return a worthwhile amount. Even a 1 year 5k minimum CD only returns 137.50. Except, since I am incrementally investing 417 a month, the best CD would be 0.6% APY for a 6 month CD. or much less for shorter periods.

The days of >10% CDs are long gone

Just not worth it!
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply

Quick Reply
Message:

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Economics
Follow City-Data.com founder on our Forum or

All times are GMT -6.

2005-2019, Advameg, Inc. | Please obey Forum Rules | Terms of Use and Privacy Policy

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35 - Top