Do you make $400,000 a year but feel broke?

[Anonymous]

Anonymous wrote:"rationally afford" sounds like some neckbeard libertarian talk. did you major in philosophy/literature, discover ayn rand while in college, read a couple of milton friedman books and intern at the cato institute?

Sounds hawt.

[Anonymous]

Anonymous wrote:I feel the same way, but I don't want to send my kids to private school. I want a boat.

People making $400K should be entitled to a discount on boats. After maxing out retirement savings and 529s, paying student loans and mortgage, and eating out (only 1-2x per week), there simply isn't enough left to pay for a boat.

I deserve a boat. I should get a discount so I can have one.

Lmao!!!!!

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:You are out of your mind. Feel free to drop to $100k and apply for financial aid. Private school isn't a right and no one owes you the ability to send your kids there. Either pay for it (which you can easily do on $400k if it is a priority) or go public.

You've kind of conceded the point though when you say "pay for it or go to public." It's a huge financial burden on someone making $400k HHI (again, coming from no wealth) to afford private school tuition. There's no reason that the people on $1M HHI shouldn't be subsidizing people in this income range. Hence, a system where a small amount of need-based aid is provided seems like good policy unless you want private school to become a right only of the very rich and poor.

You seem confused. I would tell someone who made $2m/year to pay for it or go public. I would not tell someone who made $65k/year that same thing. You are much more like the $2m person than the $65k person in your ability to pay for private school. If it isn't a priority for you, so be it. Public it is. And no, even wealthier people shouldn't have to subsidize you and your lifestyle. It is not a huge burden when you are making $400k to come up with $35k for public school unless you are just really terrible with money. I know. I have done it and I would be ashamed to ask someone else to foot the bill at that income level.

Oh, I'm not saying it can't be done, but it's definitely a burden. A family with $400k HHI in this market is probably going to save about $100k per year (between retirement and after-tax savings). A family at $1M is probably going to save about $400k. So especially if you're talking about more than one child, it's a significant burden on a $400k HHI to pay full freight private - probably about half of what they'd save. That's why many of them go public in this region.

A person with $65k HHI would never be asked to "pay for it" at that level. Believe me, I'd know, as need-based aid put me through secondary school, college and graduate school on about that exact HHI income growing up.

Again, I'm not saying everyone on $400k HHI needs aid, but I can see circumstances (especially where families have multiple kids in school and have only had that earning power for a short period of time) where some need-based aid would be appropriate.

Now I've heard it all. OMG!