I can't quite figure it out either.
1. Poor diversification.
2. Discount is surely less than the tax rate.
3. Capital gains taxes will be owed on the sale b/c of discount.
Lose-lose situation.
I can't quite figure it out either.
1. Poor diversification.
2. Discount is surely less than the tax rate.
3. Capital gains taxes will be owed on the sale b/c of discount.
Lose-lose situation.
When did you move? Have you been in CT since Jan 1st 2008 or did you just recently move?
Why should one have to pay NY taxes when one doesn't have a residence there?
That doesn't make much sense. Maybe you need to go higher up?
Why would anyone want to give an interest free loan to the government?
EKKC
Diamond Member
- May 31, 2005
- 5,895
- 0
- 0
you do have to pay NYS tax. but you dont have to pay bloomberg (uh i mean NYC tax
)if you don't pay NYS tax, think about all those people who will flee the state to live elsewhere.
yes CT is nice. I've seen South Norwalk, parts of Stamford, Greenwich, New Darien, all nice neighborhoods, but my parents are in Queens and the gf works in Manhattan.
do you know if the housing prices came down a bit up there? i know it has in the 4 non-manhattan boroughs in NYC, although not by much.
Originally posted by: EKKC
you do have to pay NYS tax. but you dont have to pay bloomberg (uh i mean NYC tax
if you don't pay NYS tax, think about all those people who will flee the state to live elsewhere.
Are NY state taxes based on where you work and not where you live?
Originally posted by: EKKC
you do have to pay NYS tax. but you dont have to pay bloomberg (uh i mean NYC tax
if you don't pay NYS tax, think about all those people who will flee the state to live elsewhere.
yes CT is nice. I've seen South Norwalk, parts of Stamford, Greenwich, New Darien, all nice neighborhoods, but my parents are in Queens and the gf works in Manhattan.
do you know if the housing prices came down a bit up there? i know it has in the 4 non-manhattan boroughs in NYC, although not by much.
Apparently I file in CT and then disclose NYS tax. I'm not sure who gets the revenue in the end (NYS probably), nor am I sure if I get a rebate for over-paying in NYS.
apparently if you work in NYS you pay NYS tax, but not NYC tax. Very good.
Stamford is pretty nice, although if you get too much off the "beaten path" it gets a little gamey. We live downtown, 1 block away from the mall, and like it quite a bit. Still renting, mostly to find out where we want to buy, but also to wait out the decline a bit more.
I do think prices are going down in some areas of Fairfield Co., but not all. I am still wiating a bit for the rest of the downturn to flush out and see where prices are at.
It really isn't. I'm in the 30% bracket as well and I feel like I'm scraping the bottom of the barrel compared to everyone else living elsewhere. I cannot afford to buy a house nor a car after meeting retirement savings goals (~30k annual)
It can be difficult to live/work in NYC if you aren't making 150+. Taxes are a killer, as are grocery, energy, and rent.
As I've said before, even after we pay almost $550 for two monthly train passes, we're saving over $2k/mo by living in Stamford.
jonks
Lifer
- Feb 7, 2005
- 13,918
- 20
- 81
Anyone notice this is a year old thread? anyway.
It's definitely overstating the case to say that for a single person in NYC making over $100,000 life is "difficult." I wouldn't want to raise a family on it or anything, but making little more than that I manage to pay high rent, then basically pay a second rent on my loans, am still paying off old credit (almost done!) eat regularly fairly pricy restaurants, make a good deal of luxury (fun) purchases and I still have a lot of disposable income.
If I were making $150k? I guess I'd get an even nicer apt or something but that would still give me even more play dough.
- Sep 14, 2002
- 2,470
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If you don't mind i'd like some clarification as to what you mean by "maxing out" the 401k. I currently put 6% of my pretax paycheck into the 401k which is the max that the company will match (50 cents on the dollar). I was under the impression that putting more than what the employer will match is a bit of a waste since I could invest that money elsewhere. Furthermore, I'm trying to grasp the mathematics behind 2. I get a guaranteed 15% rate of return (pretax, which I think is pretty good unless i'm a savante at investing). Short terms capital gains is something like 35% and long term is like 15%. If I sell my stocks now, averaging across the different periods, i believe i'd make something like 40-50% return over a 1 year period (after capital gains). Isn't that generally considered a good investment?
Keep in mind that I haven't yet found the time to start truly delving into the stock market and quite frankly it scares me shitless. My father pissed away quite a bit of money into the system (he's an addict) and i don't want to follow down the same route.
- Sep 14, 2002
- 2,470
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Heh yeah I'm surprised my old thread came back from the dead too. I didn't even recognize it until I started reading it again. I agree that it's a HUGE stretch to say you're poor if you're making 100k+. I know many people living in NY for FAR less (45-65k), although they most likely live with several roommates in a non-preferrable area and STILL don't save money. But if you DO want the same quality of life (decent sized clean apt, save money, have luxuries such as large TV/stereo etc. etc.) as enjoyed by those living in the midwest/central US (for far less) then you definitely need at least 150k. Sad but NYC life is really that much more expensive than anywhere else.
Max 401k up to employer match.
Max IRA account.
Max 401k account. (Your contribuitions and your employer matches shouldn't be more than $15,500 yearly)
Employee stock option plans and other types of investing belongs here.
If your employer gives you the option of buying their own stock in your 401k plan, all what I italicized/underlined in your post is pretty much moot.
My company allows that.
His ESPP is a great deal, better than most which usually give you 15% off either last day or first day of hold period. On average, they hold his money for 3 months each distribution. Equivalent to an instantenous 60% yearly return, then minus capital gains taxes (but why is this even a discussion, any other stock will have capital gains also). Don't forget, 401k he will have to pay income tax on in retirement, when his income, and most likely the tax rates will be higher than it is now.
As long as he makes sure he doesn't fall too much in love with the company stock if it freefall (place a stop order guaranteeing 5% profit, at each distribution?) he'll still beat out any other safe investment (that's 10% yearly). Of course he could do much better, if he sells at the right time. Not to mention interest income from CDs etc is taxed not at capital gains rate..
Unfortunately my company is held by private equity now, so no ESPP for us
As long as he makes sure he doesn't fall too much in love with the company stock if it freefall (place a stop order guaranteeing 5% profit, at each distribution?) he'll still beat out any other safe investment (that's 10% yearly). Of course he could do much better, if he sells at the right time. Not to mention interest income from CDs etc is taxed not at capital gains rate..
Unfortunately my company is held by private equity now, so no ESPP for us
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