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How do you keep track of how much big raises really add?

alkemyst

alkemyst

No Lifer
I keep getting paid more and my calculations are always low on how much more it really is.

Anyone have an accurate calculator out there?

Say I contribute 5% 401k and all else being equal, I am thinking a $5k bump is about $145 every two weeks.

What say you?
 
ElFenix said:
i wonder if its after taxes, 401k, and he's really on twice monthly?
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I dunno. He said every two weeks which would mean 26 pay periods/year. At twice monthly it would be 208.33. So, if bi-weekly that would mean about 25% tax (34-84k/yr filingle single), at semi-monthly it would be about 31% taxes (about 174-380k/yr filing single).

We need more info.
 
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I just attended a "retirement" seminar where my retirement philosophy took significant damage.

Putting ANY more than your company matching appears to be a foolish move as taxes in the future will almost certainly be MUCH higher than today.

The thought that one can "defer" taxes until later, when they are in a "lower" tax bracket appears to be a fallacy.
 
dud said:
I just attended a "retirement" seminar where my retirement philosophy took significant damage.

Putting ANY more than your company matching appears to be a foolish move as taxes in the future will almost certainly be MUCH higher than today.

The thought that one can "defer" taxes until later, when they are in a "lower" tax bracket appears to be a fallacy.
Click to expand...

Two problems with that claim:

- You'll only be "earning" taxable withdrawals and social security checks if you are retired, so chances are your taxable income will be lower even if your tax rate is higher.

- You're still much better off investing in the 401k then frittering the money away.

It is true that (401K up to employer match) then a Roth IRA with low-expense no-load index funds is a better strategy for most than putting money beyond the employer match level into the 401K.

My guess is the seminar that you attended didn't say that though, instead they probably tried to get you to buy annuities, life insurance, or some third-rate funds with a high sales load.
 
dud said:
I just attended a "retirement" seminar where my retirement philosophy took significant damage.

Putting ANY more than your company matching appears to be a foolish move as taxes in the future will almost certainly be MUCH higher than today.

The thought that one can "defer" taxes until later, when they are in a "lower" tax bracket appears to be a fallacy.
Click to expand...

Of course, you could do the Roth method but then again, maybe the gubermint will throw in a sales tax to get you no matter what! D:
 
dud said:
I just attended a "retirement" seminar where my retirement philosophy took significant damage.

Putting ANY more than your company matching appears to be a foolish move as taxes in the future will almost certainly be MUCH higher than today.

The thought that one can "defer" taxes until later, when they are in a "lower" tax bracket appears to be a fallacy.
Click to expand...

Thanks for derailing this, that wasn't the question.
 
blackangst1 said:
I dunno. He said every two weeks which would mean 26 pay periods/year. At twice monthly it would be 208.33. So, if bi-weekly that would mean about 25% tax (34-84k/yr filingle single), at semi-monthly it would be about 31% taxes (about 174-380k/yr filing single).

We need more info.
Click to expand...

I just need a fucking calculator...hence my OP. If I was looking to share my finances with you, I would have.

I also said this figure was after my 5% 401K contribution.

I said taxes being equal.
 
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5000 *.95 (to remove the 5% going to the 401k) = $4750
$4750 / 26 pay periods in a year = $182.69 per pay.
 
After taxes you're probably around an additional $140 or so per paycheck..depending on your tax bracket of course.

Even if you're low, a raise is a raise! I'm looking toward a similar number here in the next few months, though for me it will be quite significant as I don't make much now.
 
alkemyst said:
sigh...i laid it out in the OP...if I had my paystub for a new raise, I wouldn't be asking this here.

L o o k i n g f o r a c a l c u l a t o r!
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If you give us how often youre paid and what tax bracket youre in, we could tell you and you wouldnt need to find a calculator 😛
 
Raises usually have rather low impact, but when you look at many raises in the long run that's when you see it. For example when I started I was making 50k or so, now I'm capped and I'm at 60k base. Once I actually get to start my new job I'll be able to make like 80k because of shifts, overtime, etc. Though that's gross. After taxes, the difference might be like 5k at most.
 
no calculator is out there as far as I know and I've checked several times. The reason is there are too many variables, I suppose. Best thing is to find the tax tables, calculate your new taxable income, then subtract the estimated tax based on the tax tables. You can find the tables (not the brackets) at the irs website.
 
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