Anonymous
01/21/2023 09:40
Subject: Re:Finance and blue collar judgmental conversations at work
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 $$.
Most DC people have no idea how much less you can get by on if you need to
Oh, we know, but most people outside of DC have no idea how much it costs to live in DC.
Anonymous
01/21/2023 08:54
Subject: Finance and blue collar judgmental conversations at work
I didn’t even know until this thread that you could get a 401k loan. I learned something new!
I am from a very poor background and my family doesn’t have any 401k money saved. My parents’ money is mostly in home equity. My dad is a fully disabled vet, and he lives on that $$.
Most DC people have no idea how much less you can get by on if you need to.
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.
Anonymous
01/21/2023 08:40
Subject: Finance and blue collar judgmental conversations at work
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
Anonymous
01/21/2023 08:16
Subject: Finance and blue collar judgmental conversations at work
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.
Anonymous
01/21/2023 07:44
Subject: Finance and blue collar judgmental conversations at work
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.
Anonymous
01/20/2023 23:39
Subject: Finance and blue collar judgmental conversations at work
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.
I don’t believe you. Sorry!
They probably also had a good number of younger lawyers a few years out of law school for whom child care/ student loans/ downpayments/ general cushion took a priority over 401K. I know lots of people who started to contribute to 401K 5-7 years into their professional careers.
+1 my exh did not contribute until several years into his career
Anonymous
01/20/2023 15:26
Subject: Finance and blue collar judgmental conversations at work
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.
Anonymous
01/20/2023 12:16
Subject: Finance and blue collar judgmental conversations at work
I would call them out on blue collar judgement of jobs. I’ve been doing that since I can remember. My dad was a plumber. I distinctly recall telling my 7th grade math teacher that I didn’t think the word problem about the length of a pipe needed to have commentary about the plumber’s pants falling down. Why make fun of plumbers? You legitimately would be outside doing your business in a hole in the ground or emptying a chamber pot without plumbers.
Anonymous
01/20/2023 11:10
Subject: Re:Finance and blue collar judgmental conversations at work
A lot of upper middle class people don't contribute to these plans.
Anonymous
01/20/2023 10:58
Subject: Finance and blue collar judgmental conversations at work
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.
I don’t believe you. Sorry!
They probably also had a good number of younger lawyers a few years out of law school for whom child care/ student loans/ downpayments/ general cushion took a priority over 401K. I know lots of people who started to contribute to 401K 5-7 years into their professional careers.
Anonymous
01/20/2023 09:51
Subject: Re:Finance and blue collar judgmental conversations at work
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
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
Anonymous
01/20/2023 09:47
Subject: Finance and blue collar judgmental conversations at work
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.
First of all, you have no idea what someone's financial situation is based solely on their 401k contributions. Maybe they have large or extended family expenses that they are covering and have no funds leftover to invest, maybe they overspend and live over their means, maybe they don't like the limitations of 401ks, maybe they are investing in real estate or businesses instead... you just don't know what someone's reasons are.
I believe PPs point was that relatively high earning white collar workers don't always save in 401ks either, it isn't just blue collar workers who don't save n 401ks
Anonymous
01/20/2023 09:37
Subject: Finance and blue collar judgmental conversations at work
Anonymous wrote: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.
+1. I've never understood why so many office workers look down on tradespersons. It takes skill to be a carpenter, plumber, ironworker, etc. Many office jobs, on the other hand, require little ability at all.
Seriously! So many people are baffled by simple things like electrical wires and plumbing.
Anonymous
01/20/2023 09:30
Subject: Finance and blue collar judgmental conversations at work
There are stupid people, rude people, and smart people in every type of profession. There are countless people in finance and accounting that live beyond their means and undersave for retirement. There are people in “blue collar” jobs that make plenty of money and save, although their tax advantage vehicles are more limited unless they own their own company or work as a non-employee. It would be good to see retirement plans mandated for all sizes of companies, although many of those small companies lean toward high fee predatory 401k companies.
Anonymous
01/19/2023 21:28
Subject: Finance and blue collar judgmental conversations at work
Don’t talk finances/money at work. As for the blue collar comments- blue collar workers are the backbone of our economy. They actually produce things. I once saw a bumper sticker on a truck that said “if you aren’t blue collar, you’re overhead.” So true and I’m white collar.