Life is Easy in NW DC on $300k, AMA

[Anonymous]

I'm sorry for your burden, but I don't know why people keep reviving this thread to point out that having a kid with autism (or other similarly rare medical issues) costs a lot of additional money. Most families thankfully do not have to deal with that.

[Anonymous]

"masturbatory" - let me get your leather whip for you so you can publicly inflict yourself with pain. poor thing.

[Anonymous]

Anonymous wrote:I'm sorry for your burden, but I don't know why people keep reviving this thread to point out that having a kid with autism (or other similarly rare medical issues) costs a lot of additional money. Most families thankfully do not have to deal with that.

Lots of families also deal with it on less than a $300k HHI. It's easier on 300k than it is on 50-75k.

[Anonymous]

Anonymous wrote:I think that OP did a great job of ballparking it. We are very similarly situated, a few years older, a slightly higher HHI, higher mortgage (bought earlier but major renovation), no childcare but a lot on kid activities/camp and season tickets (sports and theater). We don't save quite as much outside retirement but we are on track for solid retirement savings plus fed pensions. I say that all to respond to those nitpicking around the edges of the OP's numbers. It is a nice life in upper NW DC, I work hard and feel very lucky indeed.

I was going to post the same thing. We also are slightly older, with a slightly higher HHI, a higher mortgage (much to my chagrin, I'd do that differently if I could) and property taxes (Bethesda), and also with a LOT of kid activities (sports/music lessons/sleepaway camp ain't cheap!). We also don't save as much outside of retirement accounts, and this thread is a good inspiration to look at the budget and reassess.

One thing I am always a little nonplussed by is the take home pay. My monthly paycheck is based on an annual salary of $280,000, and my bi-monthly check is $5560, for a monthly take home of $11,120, which is considerably less that OP's (plus he gets two extra checks). I have some additional withholdings for various tax purposes, but it doesn't seem enough make up the difference.

In any event, thanks, OP, for an informative thread.

[Anonymous]

It doesn't seem any different from living in 100k in a lower COL city. I could easily own the same sized property, drive older cars and send my kids to public school in Minneapolis on 100k.

What a silly statement. Say your total income and payroll tax burden in MSP is proportionally the same as OPs is here. Rounding down, you'd be paying around $20,000 in taxes, leaving you with $80,000. OP is contributing $36,000 to tax advantaged retirement accounts, and another $10,000 to 529 accounts. After deducting that, that, you're at $34,000 for the year, or less than $2850 per month. If you're PITI is half of OP's, you're down to $1350 per month. For everything. Yes, MSP is low COL, but it isn't free.

I know the poster who initially spouted this nonsense (in an attempt to discredit OP's analysis) is unlikely to read this, but just in case - you're an idiot.

[Anonymous]

Anonymous wrote:

It doesn't seem any different from living in 100k in a lower COL city. I could easily own the same sized property, drive older cars and send my kids to public school in Minneapolis on 100k.

What a silly statement. Say your total income and payroll tax burden in MSP is proportionally the same as OPs is here. Rounding down, you'd be paying around $20,000 in taxes, leaving you with $80,000. OP is contributing $36,000 to tax advantaged retirement accounts, and another $10,000 to 529 accounts. After deducting that, that, you're at $34,000 for the year, or less than $2850 per month. If you're PITI is half of OP's, you're down to $1350 per month. For everything. Yes, MSP is low COL, but it isn't free.

I know the poster who initially spouted this nonsense (in an attempt to discredit OP's analysis) is unlikely to read this, but just in case - you're an idiot.

You're the idiot. First off, 18k + 10k equals 28k. You subtract the contributions from gross which leaves you with 72k. You're taxed on 72k and not a lot. Assuming you even pay 20 percent in taxes you're left with almost 60k or 5k a month. 2k goes towards your mortgage and you have 3k left to live off of.

[Anonymous]

@OP, I know this is an old thread, but I have a question: you live in DC and contribute to 509 accounts, are you using the state one or any other?
I am in the process of starting to contribute to a 509 account and now sure where to open one.
Thanks

PS: For what is worth, I believe that charity contribution should be a personal choice! Good for what you are doing already!

[Anonymous]

@OP, I know this is an old thread, but I have a question: you live in DC and contribute to 509 accounts, are you using the state one or any other?
I am in the process of starting to contribute to a 509 account and now sure where to open one.
Thanks

PS: For what is worth, I believe that charity contribution should be a personal choice! Good for what you are doing already!

[Anonymous]

Anonymous wrote:

Anonymous wrote:

It doesn't seem any different from living in 100k in a lower COL city. I could easily own the same sized property, drive older cars and send my kids to public school in Minneapolis on 100k.

What a silly statement. Say your total income and payroll tax burden in MSP is proportionally the same as OPs is here. Rounding down, you'd be paying around $20,000 in taxes, leaving you with $80,000. OP is contributing $36,000 to tax advantaged retirement accounts, and another $10,000 to 529 accounts. After deducting that, that, you're at $34,000 for the year, or less than $2850 per month. If you're PITI is half of OP's, you're down to $1350 per month. For everything. Yes, MSP is low COL, but it isn't free.

I know the poster who initially spouted this nonsense (in an attempt to discredit OP's analysis) is unlikely to read this, but just in case - you're an idiot.

You're the idiot. First off, 18k + 10k equals 28k. You subtract the contributions from gross which leaves you with 72k. You're taxed on 72k and not a lot. Assuming you even pay 20 percent in taxes you're left with almost 60k or 5k a month. 2k goes towards your mortgage and you have 3k left to live off of.

OP said in the first post that they are contributing $36k to 401k/TSP's ($18k/working adult I assume). So, it would be $36k + $10k = $46k in savings/year.

[Anonymous]

Anonymous wrote:@OP, I know this is an old thread, but I have a question: you live in DC and contribute to 509 accounts, are you using the state one or any other?
I am in the process of starting to contribute to a 509 account and now sure where to open one.
Thanks

PS: For what is worth, I believe that charity contribution should be a personal choice! Good for what you are doing already!

OP here.

I think you mean 529 accounts? Yes we use the DC 529 account to get the DC income tax deduction. I think the fees used to be really bad, but they're pretty competitive now.

[Anonymous]

Hey OP here. I just wanted to thank everyone for chiding me about only donating $5k to charity last year. As I mentioned earlier in the thread, it was something that I felt like we could and should improve on. So, I talked it over with my wife, and we're committed to doubling that this year. We've actually just set up a donor-advised fund through Fidelity with a $5k initial contribution, and we will do the second $5k contribution in 6 months.

Anyway, Happy New Year to everyone and best wishes for a great 2018!

[Anonymous]

Anonymous wrote:Hey OP here. I just wanted to thank everyone for chiding me about only donating $5k to charity last year. As I mentioned earlier in the thread, it was something that I felt like we could and should improve on. So, I talked it over with my wife, and we're committed to doubling that this year. We've actually just set up a donor-advised fund through Fidelity with a $5k initial contribution, and we will do the second $5k contribution in 6 months.

Anyway, Happy New Year to everyone and best wishes for a great 2018!

Dude let the thread die.

You gave away an enormous amount of info about yourself. There are not many house sales in that timeframe at that price range, owned by lawyers with 2 kids around that age.