No savings on a high HHI?

[Anonymous]

Anonymous wrote:OP here. Our golden eggs are the future inheritances we will both receive (I hope) from both our parents. Of course our parents are in their late 60s so that may be 30 years from now.

You are quite foolish. My new stepmother will get the inheritance I thought that I and my brothers were going to get.

[Anonymous]

Anonymous wrote:And???? You aren't alone, OP, if that helps at all. Washington DC is an expensive place to live and, for those who are "successful," there is a lot of pressure to set our kids up to be successful too. It's a pricey proposition.

This is one of the most idiotic responses I have seen.

Sell the house; reign in your spending; save some money and start paying off your debts. This is not rocket science. You will sleep much better.

[Anonymous]

Whaddya wanna bet that OP is one of the nimrods who thinks her kids should get financial aid at a fancy private school because her debts far outstrip her income?

[Anonymous]

WOW, you should be easily able to afford a $2 million home. Are you just starting out? Did you not have a decent downpayment?

What do you waste all of your money on? Your take home should be about $20,000 a month.

[Anonymous]

You could pay off $2 million in 10 years, easy. I could do it in 5 on your HHI. As I sing to my boys when they whine about stupid shit: "It's a hard knock life, for you..."

[Anonymous]

Too bad, this could have been an interesting thread about balancing HHI with COL around here to examine realistic prospects for savings. Instead it's a ridiculous rant from someone ostensibly with a $500k HHI waiting to cash in an inheritance from parents not nearly dead while floating a $2MM house. I shouldn't even be wasting my time posting this, other than to vent that I'm annoyed by how disappointed I am in opening the thread.

[Anonymous]

Anonymous wrote:Too bad, this could have been an interesting thread about balancing HHI with COL around here to examine realistic prospects for savings. Instead it's a ridiculous rant from someone ostensibly with a $500k HHI waiting to cash in an inheritance from parents not nearly dead while floating a $2MM house. I shouldn't even be wasting my time posting this, other than to vent that I'm annoyed by how disappointed I am in opening the thread.

+1

[Anonymous]

OP here. We are mid 30s. Our income has been rising steadily but we've hit a ceiling. I could go back to work but with kids and prospects of working long hours to make only $100k its probably not worth it. Yes we need to cut back. I'm more willing to cut back than DH who thinks he's entitled to live a certain way because 1) he works so many hours and 2) he was brought up by relatively wealthy parents. Our house is the issue but we wont sell. It's our forever home, and in this part of NWDC prices are only going to go up.

[Anonymous]

Anonymous wrote:OP here. We are mid 30s. Our income has been rising steadily but we've hit a ceiling. I could go back to work but with kids and prospects of working long hours to make only $100k its probably not worth it. Yes we need to cut back. I'm more willing to cut back than DH who thinks he's entitled to live a certain way because 1) he works so many hours and 2) he was brought up by relatively wealthy parents. Our house is the issue but we wont sell. It's our forever home, and in this part of NWDC prices are only going to go up.

So, can you let go of the nanny (just a guess)?

[Anonymous]

I'm assuming you're sending your kids to private too? You either have to sell your house (which I don't see how you ever thought you could afford on a $500K income), pull your kids out of private, go back to work or resign yourself that you'll be living paycheck-to-paycheck forever.

[Anonymous]

Kids are young enough that I think we could send them to DC public (we're inbounds for a really good one) but DH thinks that's insulting.

[Anonymous]

Do you have any debt besides mortgage? Is it student loans or what?

[Anonymous]

Anonymous wrote:You could pay off $2 million in 10 years, easy. I could do it in 5 on your HHI. As I sing to my boys when they whine about stupid shit: "It's a hard knock life, for you..."

Really? You could pay off a $2 million debt in 5 years with a HHI of $500,000? Do you have a money tree in your backyard?

The net income in those 5 years is $2.5 million. If your total effective tax rate tax (federal, DC, FICA) is 25% (which is absurdly low) you're down to $2 million right there.

But let's assume that (i) OP put 20% down, reducing her debt to $1.6 million, and (ii) the effective total tax rate is a much more reasonable 30% (still probably a little low, but I'm being generous). After taxes, you clear $1.75 million, which leavs you with $150,000 spread over five years, or $30,000 per year. Not happening. Hell, even if you are only payign the aforementioned 25% in total taxes, you have $400,000 to spend over 5 years, of $80,000 per year, of $6667 per month. While that's possible, I suppose, it's pretty difficult if you're going to do any saving at all.

Short version - you may be (rightly) proud of your frugality. But don't post stupid shit, especially when it encourages OP that she's doign fine. She's not - her family is overextended.

[Anonymous]

Anonymous wrote:OP here. We are mid 30s. Our income has been rising steadily but we've hit a ceiling. I could go back to work but with kids and prospects of working long hours to make only $100k its probably not worth it. Yes we need to cut back. I'm more willing to cut back than DH who thinks he's entitled to live a certain way because 1) he works so many hours and 2) he was brought up by relatively wealthy parents. Our house is the issue but we wont sell. It's our forever home, and in this part of NWDC prices are only going to go up.

you mean HIS income has been rising.
and you'd make ONLY 100k?

welcome to the real world. you sound impossible.

[Anonymous]

Anonymous wrote:Do you have any debt besides mortgage? Is it student loans or what?

CC debt. We have a negative monthly cash flow.