I am so fascinated with this story. Kudos for being knowledgeable about investing and crypto in particular. Question- did they have huge tax implications for those two large crypto/Bitcoin cash outs? (25 year old here still learning a lot about investing/looking to buy my first home). Did the home purchase(s) negate most of the tax implications for cashing in the investment? Genuinely curious. Thanks!
I love these economic bios you do! But not going to lie some of them are hard to read, especially this one. I’m married, 1kid and in my mid 40s . My portfolio looks NOTHING like this one. We live paycheck to paycheck . It’s feeling more and more like we are losing a grasp on the middle class. Good for them though, from my POV they are in a good place given how young they are.
Yeah, Erin, I get it! I really try hard to show a range of incomes and families, but I will say the majority of people who submit Home Ecs are doing well financially.
I am also grumpy, overwhelmed, and concerned by the state of the country. A few things I am doing to maintain my sanity: limiting my news consumption (both amount of time spent/day and sources I am reading), trying to focus on sources that do deeper dives instead of skimming the surface of everything going on (Jessica Yellin's News Not Noise is a happy medium between these two, actually), trying to spend my time in doing things that feel generative (investing in my personal relationships, playing instruments, reading books instead of endless scrolling), calling my representatives at least once a week (I just leave a voicemail using the 5 Calls app script), and generally, trying to take a long view of history and trust that evil, injustice, and corruption always eventually reap their own punishments (and good, justice, and integrity reap their own rewards). Take good care of yourself!
I had this same question! Especially because they maxed out the 401K in four months. What about the 529 plan is unappealling? They also mention the need for education for their kid and the possibility of private school.
Can’t speak for the family here; but we decided to max out HSA and IRAs instead. You can withdraw college tuition out of IRA penalty free (but not tax free).
529 does not allow you to self direct investments (at least in our experience), and it is earmarked for college so when you fill out fafsa - that is one of the basic numbers you report. Fafsa does not ask for retirement account balances or the value of the home you live in. So it is a way to shelter some of your earnings/savings.
If you are lucky enough to just need another tax haven because all the others are maxed out, and have kids - go for it, but if not, maxing out HSA, then retirement accounts, seems to be the better sequence.
SO GRUMPY over here as well. Perpetual bad mood because things are just....bad. I feel you, but I also have to retain some hope that it will get better?! No?! We don't know!? Sigh.
That little moment of sunshine we had over the weekend absolutely helped, so I’m 100% ready for more days like that. Or maybe just an extended vacation is in order…
Thank you to this couple for creating a donor-advised account to give generously to help offset the evils of the current administration, and thank you for talking openly about it. This is such a critical moment where we all need to be speaking up and acting to the best of our abilities, both of which help combat the overwhelm and helplessness that can take over without openness and a plan. And well done you! You and your husband are an inspiration.
So so grumpy. Also am one of the foreign aid workers who just went through the tanking of our sector (or, the wood chipper 🫣). I shared the Purse with two friends to their delight this weekend, though!! We perused a couple of my fave articles together and had a lively chat about money and decision making. Truly the best!!!
Lizz, I feel your grumpiness. I work for the federal government, and I am expected to get RIF’ed at any moment. My coworkers and I are finding solidarity with each other, and I hope you are able to do the same with your support system.
I’m going to say a lot so bear with me. If you have been around for at least 30 years you have experienced the ups and downs of the economy and the world. You have lost jobs, rebuilt your saving, learned to garden if you can, looked at your clothes closet and gotten rid of, trade, donate things that you no longer need. When you go grocery shopping you look at sale items, plan meals around them, make extra batches and freeze the for other days, you have cleaned out your food stock area, checked the house for leaks, mowed the grass, met up with friends, and said I love you to family and friends. You have been here before, you are here right now. This isn’t new, it has been a cycle since the 1970s.
Right now everyone is scared, worried, sad, conflicted. We gather in small groups to get work around, get inside info, and trade info with one another. Here is the thing, no one, and I mean no knows what is going to happen tomorrow. The weather may change at night so you experience a gray day as opposed to sunny. You might find out your boss is suddenly retiring and there is no clear successor, it happens. You survived and did it well. You made additional friends, connections so that if you or they need something it can be easily arranged. In times of stress smile, make some new friends, do something special for yourself on the cheap.
When Biden became president many felt that the world was ending. It didn’t, things have gotten more expensive, but there were work arounds and resilience. Now people are afraid once again that the world is going to end. It won’t, it may get harder, tough times really do make you stronger and more clear headed. You have your responsibility to yourself, family and friends because you have resilience.
I talked with my therapist and asked what the overall feeling of her patients were. She said the samething, they are scared, not sure of what is going on, frightened and because she has a small shop, she hears, and experiences these emotions doubled! Have faith in yourself, you will survive.
Lastly through the media we are feed a lot of different things. That Xmas isn’t Xmas unless you got the latest car, PlayStation, Valentine’s Day you need to pullout all the stops otherwise you are not loved, birthday five star meals, fireworks and of course the cake that no one eats because carbs! It.is.all.a lie. Scale back, and know what they are selling is servitude thought fear and debt.
You are smarter, healthier, and suavy enough to know the reality of it all.
I think I generally understand what you are trying to say here, but I fear it's minimizing the very real fears and concerns that everyone has right now. I don't think this is a typical or cyclical "tightening of the belts" moment and we'll get through with grit and previous resilience strategies. I believe we are seeing a dictatorship form for the first time in America and I believe there are certain large scale decisions that we will all need to take in the coming year to 4 years that will be life altering. I do live in DC and my partner works (worked?) for USAID so I feel like I'm trying to wave from the fire pit to get everyone's attention. THIS IS NOT NORMAL! Don't panic, but also don't assume your normal coping mechanisms will be enough for what our new reality is going to be.
You are in the thick of things! I use to live in Maryland and worked for a nonprofit ngo years ago so I have a smidgeon bit of knowledge. I am 65, I’ve been in communities where riots occurred and if they got past a certain street we truly would have been running for our lives. I knew of times when there was no electricity, no food, poverty straight up. I was in the third grade, and have been unfortunately blessed with a strong memory. As my parents marriage broke up there was still poverty and greed from the local church. Astounding I know.
The 1970s were primed for dictatorship; inflation, Vietnam, civil unrest, everyone was on edge and scared. While many feel that Trump and Musk are evil incarnate Nixon by all accounts was worse. Hard to believe I know. (Off topic, there is a thought that Jimmy Carter was voted in because things would settle down with him in charge. That he was there to save democracy) who knows.
When Biden became president many conservatives felt the same passion of the world is ending, how do I maintain my house, food, arms, safety in such terrible times. Speaking from direct knowledge and experiences. To be really honest with you, I now live in Texas, different identity, values, support systems in place. While many absolutely adore and see Trump as their last hope, they have valid concerns about the country. They are you just as much as you are them. There are missions to other countries , doctors going to Africa, Mexico, places that don’t have the medical care we have. They do it with church funds, and their own funds. Truly extraordinary people.
Do I see the same things you do? Yes, what does old age tell me, if we come out of this time period with even a quarter of what we have now, we will be good. If unique communities rise out of the ashes, okay, will everything be honky dory? Honestly no. You have got not four years of hardship, broken hearts, broken dreams, you have got 10 to 20 years because society is adapting, intergrading technology, environment and social changes. And this isn’t even taking into consideration other countries plans, agendas, military and natural disasters.
You now can honestly say best of times, worse of times.
I remember reading about crypto about a million years ago, being completely unable to figure out how it worked and moving on. Didn’t have any money in any case. But this makes me wish I’d somehow stuck something in it!
Hang in there Lindsey, you’re feeling the same as the collective. I wish I can say it’ll get better, it’s the not knowing that makes it challenging. I understand how you feel.
Ugh, right?! But also I have such vivid memories of negotiating who got the license at my first job out of college. Who was going to be doing the most updates in InDesign or reformatting the most images, LOL.
I am so fascinated with this story. Kudos for being knowledgeable about investing and crypto in particular. Question- did they have huge tax implications for those two large crypto/Bitcoin cash outs? (25 year old here still learning a lot about investing/looking to buy my first home). Did the home purchase(s) negate most of the tax implications for cashing in the investment? Genuinely curious. Thanks!
Ooh, that's a good question! I'll ask the writer and get back to you.
I was wondering this too.
I love these economic bios you do! But not going to lie some of them are hard to read, especially this one. I’m married, 1kid and in my mid 40s . My portfolio looks NOTHING like this one. We live paycheck to paycheck . It’s feeling more and more like we are losing a grasp on the middle class. Good for them though, from my POV they are in a good place given how young they are.
Yeah, Erin, I get it! I really try hard to show a range of incomes and families, but I will say the majority of people who submit Home Ecs are doing well financially.
yes, I suppose it is also easier to disclose when you have something to work with!
I am also grumpy, overwhelmed, and concerned by the state of the country. A few things I am doing to maintain my sanity: limiting my news consumption (both amount of time spent/day and sources I am reading), trying to focus on sources that do deeper dives instead of skimming the surface of everything going on (Jessica Yellin's News Not Noise is a happy medium between these two, actually), trying to spend my time in doing things that feel generative (investing in my personal relationships, playing instruments, reading books instead of endless scrolling), calling my representatives at least once a week (I just leave a voicemail using the 5 Calls app script), and generally, trying to take a long view of history and trust that evil, injustice, and corruption always eventually reap their own punishments (and good, justice, and integrity reap their own rewards). Take good care of yourself!
Love this, Sarah! Thank you!
Wow, these people are amazing with money. I am curious why they aren't planning to open a 529 account for their child.
Lindsey, I relate to how you are feeling. DITTO!
I had this same question! Especially because they maxed out the 401K in four months. What about the 529 plan is unappealling? They also mention the need for education for their kid and the possibility of private school.
I'd like to second this question--curious about their thought process around not opening a 529!
I asked but didn't really get an answer -- I was surprised, too. I will follow-up when I ask the other question about taxes! :)
Can’t speak for the family here; but we decided to max out HSA and IRAs instead. You can withdraw college tuition out of IRA penalty free (but not tax free).
529 does not allow you to self direct investments (at least in our experience), and it is earmarked for college so when you fill out fafsa - that is one of the basic numbers you report. Fafsa does not ask for retirement account balances or the value of the home you live in. So it is a way to shelter some of your earnings/savings.
If you are lucky enough to just need another tax haven because all the others are maxed out, and have kids - go for it, but if not, maxing out HSA, then retirement accounts, seems to be the better sequence.
It's true that you don't have control over the investments in a 529, but it has less impact on FAFSA than people think. This is a good piece explaining it a bit more: https://www.morningstar.com/personal-finance/does-529-plan-affect-financial-aid
That's not to say a 529 is right for everyone! There's lots of options out there!
Bitcoin at $.10! Talk about a life changing entry.
Seriously! But also impressive that they had the patience to ride the lows! There were some dark years there for crypto investors.
SO GRUMPY over here as well. Perpetual bad mood because things are just....bad. I feel you, but I also have to retain some hope that it will get better?! No?! We don't know!? Sigh.
I keep hoping spring/summer will help me feel better?
we are starting to get a few days of false spring here in the PNW, and my hairdresser and I joked that we feel high off the sun!
That little moment of sunshine we had over the weekend absolutely helped, so I’m 100% ready for more days like that. Or maybe just an extended vacation is in order…
Thank you to this couple for creating a donor-advised account to give generously to help offset the evils of the current administration, and thank you for talking openly about it. This is such a critical moment where we all need to be speaking up and acting to the best of our abilities, both of which help combat the overwhelm and helplessness that can take over without openness and a plan. And well done you! You and your husband are an inspiration.
It's a pretty cool concept I wasn't very familiar with!
So so grumpy. Also am one of the foreign aid workers who just went through the tanking of our sector (or, the wood chipper 🫣). I shared the Purse with two friends to their delight this weekend, though!! We perused a couple of my fave articles together and had a lively chat about money and decision making. Truly the best!!!
Ah, Lizz, you have a legit reason to be grumpy! I'm so sorry!
Lizz, I feel your grumpiness. I work for the federal government, and I am expected to get RIF’ed at any moment. My coworkers and I are finding solidarity with each other, and I hope you are able to do the same with your support system.
Ugh Frances!! I’m really sorry to hear that. ❤️🩹
I’m going to say a lot so bear with me. If you have been around for at least 30 years you have experienced the ups and downs of the economy and the world. You have lost jobs, rebuilt your saving, learned to garden if you can, looked at your clothes closet and gotten rid of, trade, donate things that you no longer need. When you go grocery shopping you look at sale items, plan meals around them, make extra batches and freeze the for other days, you have cleaned out your food stock area, checked the house for leaks, mowed the grass, met up with friends, and said I love you to family and friends. You have been here before, you are here right now. This isn’t new, it has been a cycle since the 1970s.
Right now everyone is scared, worried, sad, conflicted. We gather in small groups to get work around, get inside info, and trade info with one another. Here is the thing, no one, and I mean no knows what is going to happen tomorrow. The weather may change at night so you experience a gray day as opposed to sunny. You might find out your boss is suddenly retiring and there is no clear successor, it happens. You survived and did it well. You made additional friends, connections so that if you or they need something it can be easily arranged. In times of stress smile, make some new friends, do something special for yourself on the cheap.
When Biden became president many felt that the world was ending. It didn’t, things have gotten more expensive, but there were work arounds and resilience. Now people are afraid once again that the world is going to end. It won’t, it may get harder, tough times really do make you stronger and more clear headed. You have your responsibility to yourself, family and friends because you have resilience.
I talked with my therapist and asked what the overall feeling of her patients were. She said the samething, they are scared, not sure of what is going on, frightened and because she has a small shop, she hears, and experiences these emotions doubled! Have faith in yourself, you will survive.
Lastly through the media we are feed a lot of different things. That Xmas isn’t Xmas unless you got the latest car, PlayStation, Valentine’s Day you need to pullout all the stops otherwise you are not loved, birthday five star meals, fireworks and of course the cake that no one eats because carbs! It.is.all.a lie. Scale back, and know what they are selling is servitude thought fear and debt.
You are smarter, healthier, and suavy enough to know the reality of it all.
I think I generally understand what you are trying to say here, but I fear it's minimizing the very real fears and concerns that everyone has right now. I don't think this is a typical or cyclical "tightening of the belts" moment and we'll get through with grit and previous resilience strategies. I believe we are seeing a dictatorship form for the first time in America and I believe there are certain large scale decisions that we will all need to take in the coming year to 4 years that will be life altering. I do live in DC and my partner works (worked?) for USAID so I feel like I'm trying to wave from the fire pit to get everyone's attention. THIS IS NOT NORMAL! Don't panic, but also don't assume your normal coping mechanisms will be enough for what our new reality is going to be.
Check out Anne Helen Peterson's excellent post:
https://annehelen.substack.com/p/this-is-how-we-fall-out-of-love-with?utm_source=substack&utm_medium=email
You are in the thick of things! I use to live in Maryland and worked for a nonprofit ngo years ago so I have a smidgeon bit of knowledge. I am 65, I’ve been in communities where riots occurred and if they got past a certain street we truly would have been running for our lives. I knew of times when there was no electricity, no food, poverty straight up. I was in the third grade, and have been unfortunately blessed with a strong memory. As my parents marriage broke up there was still poverty and greed from the local church. Astounding I know.
The 1970s were primed for dictatorship; inflation, Vietnam, civil unrest, everyone was on edge and scared. While many feel that Trump and Musk are evil incarnate Nixon by all accounts was worse. Hard to believe I know. (Off topic, there is a thought that Jimmy Carter was voted in because things would settle down with him in charge. That he was there to save democracy) who knows.
When Biden became president many conservatives felt the same passion of the world is ending, how do I maintain my house, food, arms, safety in such terrible times. Speaking from direct knowledge and experiences. To be really honest with you, I now live in Texas, different identity, values, support systems in place. While many absolutely adore and see Trump as their last hope, they have valid concerns about the country. They are you just as much as you are them. There are missions to other countries , doctors going to Africa, Mexico, places that don’t have the medical care we have. They do it with church funds, and their own funds. Truly extraordinary people.
Do I see the same things you do? Yes, what does old age tell me, if we come out of this time period with even a quarter of what we have now, we will be good. If unique communities rise out of the ashes, okay, will everything be honky dory? Honestly no. You have got not four years of hardship, broken hearts, broken dreams, you have got 10 to 20 years because society is adapting, intergrading technology, environment and social changes. And this isn’t even taking into consideration other countries plans, agendas, military and natural disasters.
You now can honestly say best of times, worse of times.
With much love and respect to you.
Thank you for your thoughtful reply. It is always useful to think about the broader historical context.
Thank you two for this thoughtful exchange! Sending hugs to you both!
Kelly, to put this out there, you are thoughtful, kind, concerned, and we are right behind you supporting in infinite ways.
I remember reading about crypto about a million years ago, being completely unable to figure out how it worked and moving on. Didn’t have any money in any case. But this makes me wish I’d somehow stuck something in it!
Thx for the real talk in the beginning! The anxiety is very real!
Oof, but it's rough!
Hang in there Lindsey, you’re feeling the same as the collective. I wish I can say it’ll get better, it’s the not knowing that makes it challenging. I understand how you feel.
Thank you, Keda!
Impressive family!
Ugh, I feel exactly the same way. Every time I think it can't possibly get any worse, it does. But thank you for the lovely shoutout 😘
❤️❤️❤️
THE FACT YOU COULD BUY TWO HOUSES IN CASH WITH CRYPTO IS SO DOPE!!! Omg the ultimate millennial move. Kicking myself that I never tried it.
I think it’s out of reach for most of it, but it makes for an interesting read!
This is super interesting! Thanks for sharing. I, too, hate having to buy subscriptions when you used to be able to get a license!
Ugh, right?! But also I have such vivid memories of negotiating who got the license at my first job out of college. Who was going to be doing the most updates in InDesign or reformatting the most images, LOL.