R3qn65's recent activity
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Comment on NHTSA tells US Congress: advanced impaired driving detection tech isn't ready in ~transport
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Comment on What are your go-to meals that you cook? in ~food
R3qn65 LinkWhat do low effort and beginner mean to you? Even just posting a recipe you like will help us calibrate, I think.What do low effort and beginner mean to you? Even just posting a recipe you like will help us calibrate, I think.
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Comment on Single, solo, poor, woman gets $500k pre-tax, how to make the most of it? in ~finance
R3qn65 Link ParentGood to hear. And you may already have recognized this, but making even 20k will be more significant than it might seem at first glance. Even if you only make 20k, if you can live on 30, that...Good to hear.
And you may already have recognized this, but making even 20k will be more significant than it might seem at first glance. Even if you only make 20k, if you can live on 30, that would let you pull only 10 from the principal. On average that 50/50 investment blend should make you about 20k, in real terms. What that means is that your principal would actually grow instead of shrink, and could last you your entire life. You'd also be able to start drawing more from it to improve your quality of life in a few years.
Point being that making 20k and keeping your sanity is still okay, if the alternative is making 30 and having your mental health collapse.
As a final note, because of the way returns work, the less you can draw, for as long as possible, the better off you'll be. (Basically - larger principal makes more money, more time with larger principal in the market is good.)
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Comment on My journey to the microwave alternate timeline in ~food
R3qn65 LinkI remember reading this one! Kenji from Serious Eats and Nathan from Modernist Cuisine have a lot of interesting stuff on microwaves too.I remember reading this one! Kenji from Serious Eats and Nathan from Modernist Cuisine have a lot of interesting stuff on microwaves too.
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Comment on Single, solo, poor, woman gets $500k pre-tax, how to make the most of it? in ~finance
R3qn65 Link ParentYeah that would be bad. My intent was for her to take the distributions over 10 years, for sure.Yeah that would be bad. My intent was for her to take the distributions over 10 years, for sure.
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Comment on Single, solo, poor, woman gets $500k pre-tax, how to make the most of it? in ~finance
R3qn65 Link ParentFor sure. To your point, I'd considered adding a disclaimer to my original comment about how personal psychology might change the validity of the advice, but I couldn't think of a good way to...Whether any stock investments are appropriate at all depends on how you feel about risk. Someone who has a fairly strong faith that stocks will eventually go up (the way Bogleheads do) can wait a few years if they go down for them to come back again. Other people worry more and would have a hard time dealing with that. It’s pretty easy to argue that stocks do eventually go up on average, but they can be down for years, and people have to decide for themselves whether they are sufficiently convinced to not worry too much in that situation.
For sure. To your point, I'd considered adding a disclaimer to my original comment about how personal psychology might change the validity of the advice, but I couldn't think of a good way to phrase it that wasn't like 500 words long so I just deleted it. It also becomes somewhat more complicated in that:
Generally, I would agree with you re: stocks being optional. Her situation is somewhat unique, though. She needs the principal to last as long as possible, the amount of the principal is unlikely to increase, and her horizon could be legitimately 50+ years. The only way to come even close to meeting those constraints is with a fairly equity-heavy portfolio. I think you're familiar with the 4% rule - if you have a bond-only portfolio, it becomes impossible to maintain the principal because average real t-bill returns are something like 0.9%. That's just not enough growth. You end up needing an absurdly large principal to sustain itself, or even not just draw down quickly. Not a big deal if you're retiring at 65 with SS, but a huge deal if you're 40 who can't really expect to get a lot back from SS in 27 years anyway.
Any money made inside the IRA is tax free (until withdrawal) and at least some of that money likely wouldn’t need to be withdrawn for years, so any stock investments that might grow a lot should probably be in the IRA?
That would be optimal, most likely. I debated this for a little bit, but ultimately decided it would be better to recommend a plan I thought the OP was more likely to be able to follow. There's very little chance they ever end up paying taxes either way, so it probably doesn't matter too much.
any money from a job will help to avoid having to spend it.
Yeah, I think this is key. I just don't see a way out of getting a job.
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Comment on Single, solo, poor, woman gets $500k pre-tax, how to make the most of it? in ~finance
R3qn65 (edited )LinkI am very sorry for your loss. I admire that you're looking for advice, even in such a tough time. I echo the others in that your situation is pretty complicated and a financial advisor would be...I am very sorry for your loss. I admire that you're looking for advice, even in such a tough time.
I echo the others in that your situation is pretty complicated and a financial advisor would be good to help with the RMDs. That said, my guess is that if you had a good financial advisor available, you would've gone to them and not here. So I'm going to respond to two things I haven't seen others touch on first and then talk about what to actually do with the money.
This comment is going to start kind of negative. It's not in any way personal, I'm just concerned about your situation and want to address some concerns up front. I'll end positive and with actionable advice.
I know this feels like a lot of money. I know it feels life-changing. And in a lot of ways it is! But it's not enough. I say this because I see you've mentioned stuff like going out to eat more often, and I 100% get it, and my chest aches a little bit typing this, but you're still in financial crisis. You can't relax yet. Specifically,
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I would really recommend against investing the money into your small business. There's not a lot of detail on what your business is, but candidly speaking most small businesses fail. I know it may seem like a chance to double down, but this money is all you have, right? It would be really tragic for your business to absorb it all without becoming profitable and have you be left with nothing. You haven't received enough to materially change your situation, meaning that if you weren't able to launch the business when you were getting monthly money from your dad, you probably won't be able to do it now either.
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Getting a job is probably going to be necessary. Look, I totally get not wanting to sacrifice your mental health gains and that the world is tough, but you really don't have many other options. The great news is that this gift from your dad is keeping you from having to just immediately start at the local Walmart or whatever. What I would recommend is drawing enough of the principal to live on while you actively look for a job you can at least tolerate. Even working something part time will make a massive difference in your financial situation.
It's not enough to live on forever because the rule of thumb is that you can draw 4% of well-invested principal without depleting it (meaning you can draw it forever). In your case, that'd be 20,000/yr, which is already less than you've been getting. But - unfortunately - 4% is in a best-case scenario. It requires reasonably active management, it involves a certain degree of risk (because you need to be invested in equities that are volatile in order to get enough gains), and it's much harder to do with low amounts of capital (which unfortunately 500k falls into) because you have less cushion to absorb fluctuations. So even 20k/yr is unrealistic without depleting the principal. In your scenario you're going to have to slowly deplete the principal.
So. Here's what all of that means. It's what I would do, in your shoes.
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You need the principal divided between an all-market fund (higher growth, but more volatile) and bonds (the inverse). For simplicity, you're looking for the stock tickers VTI and BND. I would do something like a 50/50 split into each. This is not financially optimal, but it's pretty good, and it's much more appropriate for a solo individual with mental health issues and (I'm assuming) not a lot of investment experience.
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Ideally, the IRA should be in some sort of investment split like this. If not, make it so. You may qualify for the exemption (chronic illness) that will let you stretch distributions over your lifetime. Take it if so. If not, take the distributions and put them into a regular brokerage account, then invest them as described above. You likely won't have enough income to pay any significant taxes anyway so it doesn't matter much.
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Whether it's happening in the IRA or a brokerage account, about every six months, sell an equal proportion of each stock ticker to get enough money to live on for the next six months. If the market crashes, cut your spending and take smaller portions (a months worth or so) instead, primarily from the bond fund (BND).
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In the beginning, take enough money to sustain yourself entirely and then start looking for a job you can tolerate. Making even 15,000 a year in salary will allow you to stretch this lump sum significantly farther, potentially even keep it for retirement or start building it back up. As another poster mentioned, if it can grow, it will accumulate.
This sucks, I know. But this final gift from your father can keep you alive, give you a chance to find a job your don't hate or maybe even like. When I say "not enough," I mean that it's not enough to live on forever - but it is enough to change your life for the better. This could be the difference between working a fastfood job out of necessity and taking a part-time gig at a library or something. You might even be able to derive some meaning from that kind of job.
Good luck.
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Comment on How US doctors cashed in on the No Surprises Act in ~health
R3qn65 LinkThis is fascinating, and really goes to show how complex systems produce unexpected results. I haven't really been able to decide whether this result is good or bad - both, probably - but it's...This is fascinating, and really goes to show how complex systems produce unexpected results. I haven't really been able to decide whether this result is good or bad - both, probably - but it's certainly unexpected.
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Comment on US Department of Justice arrests soldier who made $400,000 betting on Nicolás Maduro's removal in ~society
R3qn65 (edited )Link@stu2b50 you win! Edit: @papasquat, I think maybe@stu2b50 you win!
Edit: @papasquat, I think maybe
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Comment on Why America is so much better than Europe at immigration in ~society
R3qn65 (edited )Link ParentFrom the article, the point/goal is this: Basically, to observe Europe's successes (and especially failures) and use that knowledge to improve US immigration policy. Not to put too fine a point on...From the article, the point/goal is this:
Understanding the differences between U.S. immigration and European immigration is indeed a very good idea if you want to design better, smarter U.S. immigration policy — but that’s going to look like “not making Europe’s mistakes” much more than adopting Europe’s solutions... None of this is to reject that an anti-immigration backlash happened in the U.S. or to argue that current U.S. immigration policy is great, no notes. There are huge improvements achievable, and we should be laser focused on achieving them, but doing that requires a clear-eyed view of what works and what doesn’t.
Basically, to observe Europe's successes (and especially failures) and use that knowledge to improve US immigration policy. Not to put too fine a point on it, but the fact that US immigration policy is more successful doesn't mean there's nothing to learn.
Comparing the UK Pakistani diaspora to the US Pakistani diaspora shows a definitive lack of understanding why they're "underperforming" in the UK. They didn't just show up one day as refugees y'know.
I'm pretty sure Kelsey Piper is aware of British India : )
This was her exact point:
The U.S. immigration system benefits from low geographic distance to culturally more proximate countries and institutional filters that select for employability.
Getting to the United States from the Middle East typically requires a university admission, an employer sponsor, or an established family network. Getting to Europe from the same region more often means an asylum claim or family reunification from earlier guest-worker flows...
She specifically calls it out as a selection effect in the US!
Edited to add words for clarity.
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Comment on What is Mastodon for? in ~tech
R3qn65 Link ParentWell, you know, I say the same thing about "tildoes" and yet...PS]: They also have to know that nobody in their right mind would willingly use the term "toot" to describe a post.
Well, you know, I say the same thing about "tildoes" and yet...
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Comment on The US Chief Justice and his wife took $20 million from firms he rules on. I'm filing for his disbarment today. in ~society
R3qn65 (edited )Link ParentI don't agree and don't think this bears out statistically (almost all voters prioritized the economy), but I get that there are a lot of very loud voices on the Republican side saying these...The unfortunate fact is a lot of people were highly energized by the prospect of hurting immigrants, women, and trans people. That’s who a large part of America is now.
I don't agree and don't think this bears out statistically (almost all voters prioritized the economy), but I get that there are a lot of very loud voices on the Republican side saying these things. It often makes me feel like everyone feels that way. Whenever I find myself thinking that, I try to think of actual, real Republicans I know. We don't often agree on the best policies and we almost never agree on the likely consequences of those policies, but I have yet to meet a real person - not online, not a talking head - who actually wants immigrants, trans people, etc to suffer.
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Comment on Adults are earning college degrees online in weeks, alarming US educators in ~society
R3qn65 (edited )Link ParentThanks for the article, I enjoyed it. I'm struggling a little bit to draw the connection. We were talking about companies who have 10,000 applicants for 3 roles. That's not a union job at the...Thanks for the article, I enjoyed it.
I'm struggling a little bit to draw the connection. We were talking about companies who have 10,000 applicants for 3 roles. That's not a union job at the pipefitter or something, it's a senior SWE position at Google that probably pays >500k in total comp. I don't really get how paid overtime, better housing standards, etc. affects that position at all.
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Comment on Adults are earning college degrees online in weeks, alarming US educators in ~society
R3qn65 Link ParentYeah, we agree. That's why they don't do that. I'm not sure where we're talking past one another.Yeah, we agree. That's why they don't do that. I'm not sure where we're talking past one another.
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Comment on The gravest threat to the American press in ~society
R3qn65 LinkHere's the text of the original Semafor piece.Here's the text of the original Semafor piece.
The New York Times and Washington Post learned of a secret US raid on Venezuela soon before it was scheduled to begin Friday night — but held off publishing what they knew to avoid endangering US troops, two people familiar with the communications between the administration and the news organizations said.
The decisions in the New York and Washington newsrooms to maintain official secrecy is in keeping with longstanding American journalistic traditions — even at a moment of unprecedented mutual hostility between the American president and a legacy media that continues to dominate national security reporting. And it offers a rare glimpse at a thread of contact and even cooperation over some of the highest-stakes American national security issues.
President Donald Trump and top administration officials Saturday praised the stunning seizure of the Venezuelan president, which Trump approved at 10:46 p.m. Friday, citing both the lack of American casualties and the total secrecy surrounding the attack.
“The coordination, the stealth, the precision, the very long arm of American justice - all on display in the middle of the night,” Pentagon chief Pete Hegseth said.
Hegseth did not mention that part of that secrecy was the news outlets’ decision — unlike other countries, the US does not have a mechanism for the government to prevent publication of secrets — to hold off their reporting for several hours after the administration warned that reporting could have exposed American troops performing the operation.
Spokespeople for the White House, the Pentagon, and the Washington Post declined to comment on the conversations between journalists and officials Friday night. A Times spokesperson didn’t immediately offer a response to an inquiry.
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Comment on Adults are earning college degrees online in weeks, alarming US educators in ~society
R3qn65 Link ParentWe're straying a bit far afield and it depends to some extent on what you'd consider evidence, but yeah, I think so. There's been reasonably replicable research on racial and gender biases in...We're straying a bit far afield and it depends to some extent on what you'd consider evidence, but yeah, I think so. There's been reasonably replicable research on racial and gender biases in hiring, for example. Logically, at least sometimes, companies have been self-detrimentally choosy. (Or conversely, see the way elite universities were self-detrimentally choosy against Asian-Americans.) Certainly it suggests that there are psychological factors at work.
But really what I meant was more like this. Let's say 10% of everyone who went to Harvard (etc) is actually skilled, talented, and will succeed in a given role. At a decent school, call it 2%. Separately, let's say a percent of all applicants for the job in question are from Harvard and everyone else is from decent schools.
If you're an in-demand employer and have 10,000 applicants for your 3 roles, you're still getting 100 from Harvard, so you may as well throw everyone else away, all else equal. Even though there's only a 10% chance each of those applicants is good, you've got 100 of them so who cares. But if you're a lower-tier employer and only have 100 applicants for your 3 roles, you can't just select on the Harvard thing alone, because you've only got 1 applicant from Harvard and there's still only a 10% chance your Harvard person is any good. Instead you need to be more careful about actually assessing the candidates.
Obviously that's all bullshit napkin math and you should disregard it immediately, but that's what I was getting at about regular employers having to be choosier.
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Comment on Adults are earning college degrees online in weeks, alarming US educators in ~society
R3qn65 Link ParentI’d like to challenge you a bit on this. I agree completely that this is a problem - it’s a rational decision by the firm but compounds elite problems in society. But I think the cure is worse...The question maybe isn't why shouldn't these companies, but why should our society allow these companies to.
I’d like to challenge you a bit on this. I agree completely that this is a problem - it’s a rational decision by the firm but compounds elite problems in society. But I think the cure is worse than the disease. The scenario is a company that has 3 spots, 10,000 applicants, and needs to decide who to hire. What could society actually do, here, to produce a more egalitarian result without immediately causing a series of awful side effects? I’m not just messing with you; I’ve given it a couple of minutes of thought and I can’t think of something. Here’s an example: ban companies from considering which school you went to? They just shift to even more opaque signals like personal networks, which is even less meritocratic. It’s harder, I think, than “we should just make them not do that.”
It sucks, but the problem here isn’t really with the company in my opinion. It’s that not everyone who deserves access to an elite institution has it, and so that’s where the energy should be focused.
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Comment on Adults are earning college degrees online in weeks, alarming US educators in ~society
R3qn65 (edited )Link ParentFor the highest-demand employers, absolutely. It’s reminiscent of the old joke about throwing out half the applications in the pile to weed out the unlucky applicants. I was thinking more for...All else being equal, why not filter for college grads? Why not filter for good colleges? When you have 3 open spots, and 10,000 applicants, anything you can do to cleave the hiring pool to a more manageable state is a win.
For the highest-demand employers, absolutely. It’s reminiscent of the old joke about throwing out half the applications in the pile to weed out the unlucky applicants.
I was thinking more for everyone else - regular employers - and phrased things confusingly. Non-elite employers use the presence of a college degree as a signal that an employee will be good, but it’s an imperfect signal. Not completely wrong, obviously (it does show long-term commitment of time and money towards accomplishing something, which is important in and of itself), but imperfect nonetheless. For them, being able to dispense with the imperfect signal of the degree and assess candidates on better signals like skills etc. would be a huge positive.
Theoretically, there’s no difference between high-demand employers and regular employers because we’re holding all else equal. But in practice, it’s only the high-demand employers which have enough applicants to actually be able to hold all else equal. Regular employers don’t have 10k applicants per job where they can afford to filter so carelessly. In that sense, ironically, they need to be choosier.
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Comment on Adults are earning college degrees online in weeks, alarming US educators in ~society
R3qn65 Link ParentI think this is very well put. My hot take is that you can speedrun proficiency (e.g. enough to pass an exam) in many subjects, but you can't speedrun understanding in any of them.I think this is very well put. My hot take is that you can speedrun proficiency (e.g. enough to pass an exam) in many subjects, but you can't speedrun understanding in any of them.
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Comment on Adults are earning college degrees online in weeks, alarming US educators in ~society
R3qn65 Link ParentAgreed, but to take it another step I think that's likely a net negative for society as well as the students of non-elite universities themselves. There's a limited number of prestigious...Agreed, but to take it another step I think that's likely a net negative for society as well as the students of non-elite universities themselves. There's a limited number of prestigious universities and a limited number of slots at those schools. The broader the gap, in a high-demand employer's mind, between those schools and everywhere else, the harder it becomes for students who couldn't get in to an elite uni to compete with those who did. That seems like the more likely trajectory to me.
There's an alternate timeline too where college degrees become less important for employment overall, employers having recognized that skills and knowledge are more important than the piece of paper, but that world is harder to get to.
I am so, so against this, in the same way I oppose things like passively scanning your iCloud account to make sure there's no CSAM, etc. I don't think the benefits to public safety outweigh the cost to private privacy and freedom. And yet I'd never heard of this provision before!
Good for the NHTSA for at the very least not implementing a half-baked solution.