Do the numbers listed in this article make sense?

[Anonymous]

https://seekingalpha.com/article/4203662

The author claims that a 'friend' is just able to get by on $1M a year in DC and has no savings to speak of? Does this make sense?

[Anonymous]

Yes this is true. If you make $1mil a year and want to live like someone making $10mil, you'll go broke.

[Anonymous]

If you live an expensive lifestyle then its not surprising if you don't save much, regardless of income level. Priorities.

[Anonymous]

Saw the plug for DCUM Money and Finance forum there...

[Anonymous]

Sure. "3 kids in private schools", "expensive divorce", "1.2 million mortgage".

He could sell his 2 million dollar house and buy something in a perfectly decent public school district for $700,000 cash. PLENTY of people in the DC area would be happy to live in such a home.

No mortgage payment, no private school tuition. That saves at least $200,000 a year probably. Now vacations, afterschool clubs and summer camp costs etc are also whittled down because his kids no longer are at the fancy schmancy private school where there is insane competition to keep up with the Jonses. That saves another $30,000 easily.

Start saving the $230,000 each year. It will add up!

[Anonymous]

DC has super high income taxes plus his Fed income tax he losses half his income before he gets it

[Anonymous]

Yes, totally possible. Especially if there’s a divorce in the mix.

[Anonymous]

So I put together that the author of that post is married to one of the Travel forum's frequent posters about traveling in Europe and life in Portugal.

[Anonymous]

A million after taxes really isn’t all that much.

[Anonymous]

It makes sense if the friend is complete idiot with money.

[Anonymous]

Anonymous wrote:Yes this is true. If you make $1mil a year and want to live like someone making $10mil, you'll go broke.

This.

[Anonymous]

Anonymous wrote:A million after taxes really isn’t all that much.

GFY

Agreed with the PP, if you make $1M and spend like you make $10M, you're gonna have a bad time. On the other hand, we do very well making $300k in DC, and live like we earn $150k. Very nice lifestyle, and we've accumulated far more than the $1M earner in the article.

[Anonymous]

Anonymous wrote:So I put together that the author of that post is married to one of the Travel forum's frequent posters about traveling in Europe and life in Portugal.

I wonder if that poster was the one who talked about portuguese golden visa in off topic some time ago

[Anonymous]

That idiot is spending like he has a net worth of $20 million plus $1 million in annual income. You don't achieve $20 in net worth if you are pissing away all of the $1m in annual income.

[Anonymous]

i wonder if the divorce didn't happen if there would be a problem.

sell the house, keep the private school and the dude would be fine.