Finance and blue collar judgmental conversations at work

[Anonymous]

I didn’t even know until this thread that you could get a 401k loan. I learned something new!

I am from a very poor background and my family doesn’t have any 401k money saved. My parents’ money is mostly in home equity. My dad is a fully disabled vet, and he lives on that $$.

Most DC people have no idea how much less you can get by on if you need to

Your dad gets fully paid health insurance because he is a vet (VA). He even gets free burial. The chances of his check not coming are just about zero (and he gets a COLA on it). Those of us who did not do military (and that is far more Americans) are on a more tenuous slope. Just saying.

[Anonymous]

I didn’t even know until this thread that you could get a 401k loan. I learned something new!

I am from a very poor background and my family doesn’t have any 401k money saved. My parents’ money is mostly in home equity. My dad is a fully disabled vet, and he lives on that $$.

Most DC people have no idea how much less you can get by on if you need to

In order to have the same income as your father (and this doesn't include what people need to pay for Part B insurance), a person needs to have at least $1 million in a 401K. That generates 40K a year at 4% payout. Your father gets more than that as a fully disabled vet. Look it up.

[Anonymous]

Anonymous wrote:

Anonymous wrote:OP, if it makes you feel any better, I work in a white-collar profession and aparently plenty of my colleagues have 401k loans.

Blue collar or white collar, it's still a pretty bad place to be.

Agree. As long as you have to work for a living and depend on that check to pay bills, you're not a free person.

[Anonymous]

Anonymous wrote:Ooh, I would have a field day saying loud and clear to these people:

"My husband is in construction. Do you think blue collar workers are less intelligent?"

Watch them squirm.

Well, they are usually not college educated. There are of course different kinds of intelligence, and all people are special in their own way!

Your turn.

[Anonymous]

Anonymous wrote:I manage money for a living and you would be shocked how many people come to me with significant 401ks/IRAs but little money outside of those plans but also have loans on these plans. Regardless if you are worth $50,000 or $10,000,000, most people are not great at managing money. There often is an emotional road block to money which handcuffs people. Also, many people don't understand liquidity..

OP - don't feel bad! You have no idea what the person driving the fancy BMW actually has saved. For all you know, you may be wealthier

Ok explain to an uneducated person where else besides 401K do you put your money in?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:OP, if it makes you feel any better, I work in a white-collar profession and aparently plenty of my colleagues have 401k loans.

My sister worked in law firm accounting and she said half of the lawyers contributed ZERO to their 401K. This was about 10 years ago.

Ok this is really interesting.

A buddy of mine works in Big Law in NYC (top 50 firm). His firm does no matching on 401K contributions. He’s not a partner and makes $300K salary + bonus.

His firm offers the ability to do a Mega Backdoor Roth. He called the HR investment services to set it up. They told him he’s the second person in the entire firm that was taking advantage of the Mega Backdoor Roth. It blew his mind, because he’s definitely no where near the highest paid people at the firm and he would’ve expected “savvy” Big Law lawyers to take advantage of the benefit. You should be maxing money in a mega backdoor Roth before you put $1 in a brokerage account.

So he doesn’t save in a 401k than can allow for you to put 22k away roth (with no income limits) to only save $7k in an IRA that needs to be converted?
Um ok. Should probably consult a financial planner for direction but sure HES PUTTING MONEY IN A MEGA BACKDOOR ROTH omg.

Tell me you don’t know anything about investing for retirement without telling me you don’t know anything about investing for retirement

+1

It's posts like these that made stop posting here (and start posting on Bogleheads) when I need real financial advice. DCUM is just to shoot the sh*t.

[Anonymous]

OP here. I can hear my boss complaining about another person taking a 401k loan and why can’t they manage their finances. This is the CFO/owners wife. I have not one to complain to.

[Anonymous]

Anonymous wrote:OP here. I work closely with payroll and these conversations come up but I don’t participate. As far as 401k loans- the criticism was that it’s part of not living within your means to which they say would be expected from blue collar workers.

Awful. That is confidential information. Is a supervisor in earshot?

[Anonymous]

Anonymous wrote:

Anonymous wrote:I manage money for a living and you would be shocked how many people come to me with significant 401ks/IRAs but little money outside of those plans but also have loans on these plans. Regardless if you are worth $50,000 or $10,000,000, most people are not great at managing money. There often is an emotional road block to money which handcuffs people. Also, many people don't understand liquidity..

OP - don't feel bad! You have no idea what the person driving the fancy BMW actually has saved. For all you know, you may be wealthier

Ok explain to an uneducated person where else besides 401K do you put your money in?

Roth IRA? Hasn't worked out for me because I make so little, but I finally have money to max it out this year, and we have til April 15 I believe.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I manage money for a living and you would be shocked how many people come to me with significant 401ks/IRAs but little money outside of those plans but also have loans on these plans. Regardless if you are worth $50,000 or $10,000,000, most people are not great at managing money. There often is an emotional road block to money which handcuffs people. Also, many people don't understand liquidity..

OP - don't feel bad! You have no idea what the person driving the fancy BMW actually has saved. For all you know, you may be wealthier

Ok explain to an uneducated person where else besides 401K do you put your money in?

Just open a brokerage account at Vanguard and call it a day.

[Anonymous]

Anonymous wrote:

Anonymous wrote:OP here. I work closely with payroll and these conversations come up but I don’t participate. As far as 401k loans- the criticism was that it’s part of not living within your means to which they say would be expected from blue collar workers.

Awful. That is confidential information. Is a supervisor in earshot?

Nope. The CFO/boss’s wife is one of them.

[Anonymous]

Anonymous wrote:So much judgment at my work about people who don’t do 401k, or take 401k loans, don’t own a house, don’t save for retirement. I’m fine with saying that those things are good, but I’m sick of the judgement. And “I would expect that from blue collar workers”. I’m so fed up. And I’m sure you’ve guessed, I don’t own my home, took out a 401k loan, and my husband is in construction. It’s hurtful, but I’m embarrassed to point it out. It’s a good example of watching how you speak- you don’t know the situation of all of the people around you.

Oh Jesus Christ, grow a backbone. You have the maturity of a little girl.

[Anonymous]

Just wait for their white collar jobs being taken away by ChatGPT

[Anonymous]

Anonymous wrote:

I didn’t even know until this thread that you could get a 401k loan. I learned something new!

I am from a very poor background and my family doesn’t have any 401k money saved. My parents’ money is mostly in home equity. My dad is a fully disabled vet, and he lives on that $$.

Most DC people have no idea how much less you can get by on if you need to

Your dad gets fully paid health insurance because he is a vet (VA). He even gets free burial. The chances of his check not coming are just about zero (and he gets a COLA on it). Those of us who did not do military (and that is far more Americans) are on a more tenuous slope. Just saying.

NP. PP's dad is a 'fully disabled' vet. He EARNED that check and healthcare, just saying! You don't get a check and va healthcare just for 'doing' military (you do get the burial). My dad has a service connected disability (not full, like pp's dad) and it has impacted literally his entire adult life. Show some respect.

[Anonymous]

Anonymous wrote:Just wait for their white collar jobs being taken away by ChatGPT

I can argue that roofers, plumbers, etc will also be impact by the rise of AI/Technology. Why wouldn't a robot be able to install a new roof or install recessed lights?

The reality of life sadly