
McMegan, who is not a financial adviser but plays one on the internet, answers white people’s problems.
In brief, these are the afflicted ones, likely drawn from the WSJ poverty pool, whom she has selected to internet comfort (mainly by saying: Adopt me! lol!):
- On a personal finance level – both me and my wife just past our 40th birthday. We own a house valued around $750K and only have about $150K left to pay off. We have been paying down the house about $50K per year so should be debt free in three more years. For the past two years we have also been putting $25K into a 529 for the kids. So at this point we have about $50K in a 529. Almost all our savings are in the house as we only have about $150K in other investments. When is the kids’ college fund topped up? Are we being foolish to save for the kids educations as opposed to our own retirement?
- My fiance and I are roughly-30-year-old software developers. We’ve both had some success in our 20s, which combined with a reasonably modest lifestyle, has resulted in close to $1 million in savings, about 30% of which is in retirement accounts.So far so good. But about a year ago, we decided to leave our jobs and start a startup. We raised a little bit of money, so we can pay ourselves a little bit of salary (about enough to pay the rent and not much else), but most of our “compensation” is equity in a company that we’re optimistic about, but is still pretty far from profitability. How much should we be spending down our savings to supplement our income?
- I’m 40ish, married, with three young kids. I make a good living ($240k+), we have $300k in a mortgage, and no other debt except a small car loan at a really low rate (less than $10k, less than 1%.) I’m self-employed, I max out my 401k, and have a nice emergency fund. My wife was a public school teacher for ten years, but no longer works and is unlikely to go back. She has around $100k in the state pension system. My question is whether we should leave it there. I realize there are tax consequences along with a 10% penalty, but it seems to me that I’d rather have $70k to maybe pay down my mortgage than wait for some paltry pension payment when we’re in our 60′s, assuming it would even be there. On the other hand, it also seems to me that I might be nuts. Thoughts?
I’m sure that, had one of these emailers been someone who spoke of trying to get by with a couple of kids on $24k per year, the advice would have fallen somewhere in the netherworld between “making bad choices” and “are there no workhouses?”.
Moral hazard averted!
To be fair, McMegan was reduced to giving financial advice to the struggling arriviste class because Michael Wolff had already landed that sweet “securing the best table in New York restaurants” assignment.




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Okay, so she’s completely run out of ideas for her blog. Is that a crime?
I like how Mr. 240+K assumes a pension on 100K in the state system would be paltry. Not too long ago, fat cats were winning elections by arguing that public employees have it too good. I keep trying to tell people, our “betters” know what they are doing – they want to crush our lives and souls until we are a permanent underclass of serfs. Read “The White Tiger.”
Oh my.
I wonder if she’d like to sport me the funds necessary to buy the remaining 3 months of time I need to qualify for a federal pension? I mean, I woulda had it myself, but this whole sequester thingie means that I’m gonna be hitting the road three months before vesting and it’d be really kuhl if she could buy that last three months of my paltry pension…. No?
But wait! Those greedy feds! Turns out that DOD employees canned for no reason get their healthcare paid for 18 months moar – DOD keeps paying their share of the benefit! Outrageous!
I must have some pink salt, somewhere…..
The dining room photo at the top of that Michael Wolff piece looks like a screen-cap from the Romney 47% video with all the people removed.
Well, to be completely fair, the upper-middle income types whose stories are highlighted here probably DO need advice about how to maximize their savings & investments, etc. But it definitely BEGS the question: whyever would you ask a know-nothing snotty dolt like McArgleBargle for such advice??
Whooops! There goes the savings & investments. Time to get back into real jawbz, like public school teaching that provides a pension & health care benefits.
I never thought I would actually say this out loud, in front of Jesus and everyone, but I’ve finally realized in my old age that there really are people in this world who should be taken out and shot, if for no other reason than to prevent them from spawning.
Are you talking about Wolff or McMegan? Not sure if either of them is in imminent danger of reproducing.
Oh lordy, I thought you were joking about ” Adopt me! lol!”. Um, nope. You were not.
Every time I see that picture it makes me feel so sad. Those poor, poor people and their $180,000 a year in investment income…
I can’t decide whether those 1%ers are humblebragging in public via McMegan’s Advice Booth, or are just too fucking stupid to hire a financial professional.
Are. You. Fucking. Kidding. Me?
Where is my pitchfork and torch when I need it?
Completely off topic, but since someone mentioned McMegan . . . I noticed this winter that the rock salt used on the sidewalk outside a nearby business has about the same pinkish beige hue as the $2.99 bottles of pink Himalayan salt I see in TJ Maxx and Marshall’s. I picked up a hunk that is Liz-Taylor-engagement-ring sized. Think if I put it on eBay as a lump of jen – yoo – wine PHS, I might get an offer?
I think both “he and his wife” ought to head over to the nearest Community College for a little grammar review, before they “pass” their 41st birthday.
Sheesh!!
Thank you! I was debating commenting on that. It doesn’t quite seem fair that such an illiterate should have that kind of income, somehow. Whine. Of course, I long ago realized that no hiring PTB care if a prospective employee knows grammar or spelling. I was led to believe it was a valuable skill. It isn’t. Sigh.
Ms. Megan McCurdle. I don’t really know enough about Wolff to call for a rain of death on his head.
+1
or “like”
or dap
You took the grammar right out of my mouth, as it were.
She’s horrible. But soon she’ll be horrible _and_ unemployed.
Anyone who has a million in savings isn’t writing to Megan for advice!
Also too, since Megan isn’t a financial advisor, my best guess is these emails aren’t from real actual people.
Quick, hand me that shotgun son. They’re coming for me.
These fake emails are a tool to induce real-life right-wing common idgits to pull up their own bootstraps (or hang their heads in shame).
Rustbelt Rusty: What’s wrong with us Sally? How come we ain’t got money like these other reglar folks like us do? Is we doing something wrong?
Sally Salt o’ the Earth: Well, Honey, we’re ok. We just ain’t hit the Lotto yet.
“…just past our 40th birthday.”
“…roughly-30-year-old software developers.”
“I’m 40ish…”
People actually write about themselves this way? Are they afraid that, if they state their actual ages, Obama’s Black Helicopter Army will track them down and drone their lily-white asses?
We really won’t have McMegan to kick around much longer, will we?
One of the reasons that efforts by conservatives to burrow into the Federal government don’t go as far as intended is because the cosseted like trust-fund darlings find out that $50,000 a year, a typical Fed salary, is barely minimum wage in DC — especially if you’re used to cushy right-wing pundit hatchery recompense.
I can’t wait until that women is guillotined.
You know, there is a whiff of oh, I don’t know, Penthouse Forum? Only instead of a guy with a one-legged girlfriend, it’s a ridiculous income for a blockheaded person dumb enough to write to Megan for financial advice…
Of course there is no danger of reproduction here. She measures children in terms of dollars.
My good Wren and Martin! How the hell does her editor not want to bash his head against the wall seeing this gem:
How bright do you have to be to write a column like this one on economics? YOU be the judge!
WPP #1: The Forty-somethings. I know your kids shit gold, and are probably going to cure cancer and AIDS while winning the Heisman Trophy or composing a symphony that will last through the ages. But in case you haven’t noticed, the government gives out a boatload of money for student loans. Last time I checked, they weren’t giving out loans to old-people-damn-near-death. The answer is simple: Pay yourself first. While paying down the mortgage on your home seems like a great idea, the interest for one’s home mortgage deduction is still the biggest tax write-off for many people. Strike the best balance for pay down and tax relief for your situation. You may also want to consider refinancing so that most of your initial payments are interest. You also have to invest in a more diversified portfolio so you will have assets other than your home when you retire.
WPP #2: The Thirty-somethings. So you have your very own start-up! So why are you financing it with YOUR money? That’s practically the same as being “creatively unemployed!” The best way to finance a start-up is with OPM. (Other People’s Money.) You only use YOUR money as a last resort–like when you run out of OPM. In these times of financial uncertainty, you can’t afford to spend down your retirement savings–even if you are thirty-somethings. I recommend pitching the idea to Facebook and selling your company to them for $1 Billion dollars. Next time you have an idea, those SOBs who turned you down will jump on it for a piece of the pie!
WPP #3: OtherForty-somethings. Dude, you are self-employed. You neglected to mention whether you forked over the bucks to formally incorporate your business. Since you ignored the instructions in WPP #1, I’m assuming you think you’re brighter than most attorneys. Well, somewhere out there is the unhappy client who will sue your sorry ass for the equity in your house–because you’ve paid it off! The state pension, on the other hand, is exempt from most creditors’ suits. Just a little FYI that you DON’T get from Megs….
Since you mention it, it thought I should point out that Himalayan Salt Inhalers are on special now. Does McMegan have one? She’d be crazy not to.
The comments at Megan’s piece are hilarious, by the way, and good enough to threaten a shutdown of the comments section and a meltdown of the McMegan.
I applaud the Daily Beast for letting this fly– it’s almost as if they want to rub Megan’s face in it, and are are laughing while doing it.
Reminds me of that old saying, if you really want to know what’s God’s opinion of money, just look at the people he’s blessed with it.
O my God– I just noticed that the short McMegan bio at the Daily Beast piece identifies her as a “former Senior Editor at the Atlantic”, and I didn’t realize that the Atlantic had finally wised up and cut her loose.
When did this happen? Why [laughing] wasn’t I notified?
OMG, you’re not kidding. High quality ceramic (just like my tea mug), filled with rock salt bought at whatever the city pays for tonnage, and endorsed by that paragon of selfless honesty, Dr. Oz. I bet Megan has two!
Note to confused wealthy people in a panic;
Asking for financial advice from someone who spends 40% of her income on kitchen appliances may not be the best route. $750 Blenders do not hold their value.
I suspect pseudo @ 10 is correct.
Dear Mr. Funny Blogger,
I am just north of 50 while working at a job I hate but make decent money. I owe the IRS money after while being layed off and unemployed and such. I have a question. Do these pants make me look fat?
Nice work. I think I would ask #3 to have his wife contact me personally, to consult with her about HER pension. On a teacher’s salary, she somehow managed to contribute an average of $10K per year into her pension fund. Since a normal annual contribution to a teacher’s pension fund would be around 7-8 percent of salary, she found herself a pretty good job with a salary averaging well over $100k per year for her first ten years. I would recommend she try to get her old job back, because I don’t think she’s still going to be with Blowhard by the time they are 50ish and the children are teenish.
I apologize for going off-topic here, but I see that Princess Dumbass of the North Woods has given us a new moniker for the diabetes-and-hoveround wing of the Republican base: “Liberty-loving soda drinkers.”
And, finally, HuffPo comes up with an excellent headline:
“Oh Good, Sarah Palin Is Writing Another Book”
Yeah, I’m really hoping they take her advice. Maybe whatever they lose on their investments will trickle down.
I like “Megan has a diverse work history.” Is that “can’t hold a job” in Newspeak?
[laughing] Oh, if only it worked that way.
Amazing, isn’t it? In commenting on an MST3K ep starring Ben Murphy, it was pointed out that casting Ben Murphy was like the kiss of death for any crappy TV series Universal tried to crank up in the seventies with him as the star, and yet they JUST. KEPT. HIRING. HIM.
My suspicion is that he brought the best coke to the set. McMegan?
You know who else made people buy two 16-ounce sodas instead of one 32-ounce? HITLER
But he was a hell of a painter! And such a dancer – he could dance the pants off Roosevelt! (This is called Artistic License, btw, so hold the spluttering “that’s not how the quote gooooooes!”)
Also, too, why all this Vicious Liberal Hate at Our Megan? Sure, she’s a pompous, self-absorbed nicompoop, and has clearly made up all those ridiculous letters herself, but I’m with fauxmax@38 – we can only hope that some of those knuckleheads who take her seriously are stupid enough (and wealthy enough) to actually try to use her advice. That wouldn’t put any of their money into general circulation, but it might be a useful reality-check for those who really need one.
Yep, that teacher pension balance was the phoniest thing in the whole pile.
Also, of course, there’s no tax & no 10% penalty if she rolls it into an IRA. And wouldn’t be, even if it was real.