Down and Out on $250K/year....

[Anonymous]

Anonymous wrote:What sickens me is that we save a ton for college while another family doesn't. The savers end up paying full price while the non savers get a huge subsidy.

Yeah, that is not actually how it works at all. Everybody ends up paying full price. Even subsidized loans have to be paid back, with interest.

[Anonymous]

I correct myself--not everybody. Those who get grants and scholarships, of course, do not pay full price.

[Anonymous]

What sickens me is that we save a ton for college while another family doesn't. The savers end up paying full price while the non savers get a huge subsidy.

I don't know what you mean by a "huge" subsidy. Financial aid takes assets, family size, etc. into account, but the lion share of what determines how much you get is income. Also, 529s affect financial aid less than custodial accounts in the kid's name, trusts, and taxable investment accounts. It is effectively a sliding scale, based on how much people can pay.

It is certainly possible that someone who saved would have to pay a little more than someone who didn't, but people whose income is over 150K aren't getting that much in the way of grant aid anyway. And as a PP mentioned loans are eventually paid back, and subsidized loans are much of what you get when you receive financial aid at the higher income levels.

[Anonymous]

Heck, I personally know someone who is "down and out" on a 1.2 million a year salary. I don't get it. My family lives pretty good on under $200,000 a year.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:People forget that this generation doesn't have pensions so a lot of money must go to 401k and retirement. That cuts out at least 50 k right there, couple that with college savings and childcare it eats a ton of your money.

The irony is so thick here. College savings and maxed out retirements, as well as high quality childcare ARE luxuries in this country. That shouldn't be so, but it is. Good lord people. Get the heck out of your bubbles.

Thank you !

[Anonymous]

Anonymous wrote:

Anonymous wrote:

No, I agree with the first PP. That is an example of the upper middle class American Dream... plenty of people able to do this in Dallas or Atlanta etc. for probably a bit more than 100-150K a year, but not easily possible in NYC, SF, DC, unless you have way more income/resources.

I have lived in Texas. That's true that the cost of living is lower, but typically salaries are commensurate with the cost of living in the area. While there are certainly plenty of uber wealthy people in Dallas, Houston, Atlanta, etc. who skew the distribution, on average there are a lot fewer 250K+ jobs in Texas than there are in DC, SF, NYC, etc.

Also in Texas, there really are not a lot of "close in" areas that are affordable in the big cities, like anywhere else. Texas is highway land, and those 3,000+ square feet houses that are affordable are typically NOT in areas where you have a quick commute to the city center.

So weird. I must have been posting about Texas at the same time as you PP. You are spot on. We looked at real estate in Alamo Heights, close in San Antonio. Houses were any where from 500K-1M+. To get the big house, we had to go WAY to the butt ends of the city and look at least a 45 minute commute. And salaries sucked compared to here while housing was similar.

People are so deluded.

We were just visiting SA last week. We have spent time at one family member's house in Alamo Heights. They live in one of the tiny 3 BR mid-century homes (although with a guest hoyse out back) and I think it probably would sell for about $500K, which is almost unheard of in that area. My IL's live North of the city in one of the myriad ugly subdivisions and houses in their hood sell more in the $200-300K range.

We were looking to move to Austin, and I definitely would concur. If you want to live in or near downtown, you're still going to pay a premium. Those gigantic homes you see on house hunters are way out in the boonies and not walkable to ANYTHING. The only "typical suburban" hood we were considering in Austin was Circle C, which is still considered "city of" but it is NOT downtown. I wanted to live in Allandale or Woodhaven (right near Westlake HS-not "city of" but actually closer to downtown than Circle C).

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:if you want the generic "american dream" in the DC area 250K isn't enough let alone be "rich". Rich in IMO is exceeding the american dream and having money to spend on extra things like a vacation house, extravagent international family vacations, first class airplane tickets for your whole family and still exceed the "american dream" standard.

The generic american dream IMO is the following:

3000 SQRFT Newer House (less than 10 years old) In a Good neighborhood (Mclean, Vienna, Bethesda etc...), WITHOUT previous housing appreciation as a downpayment (starting fresh)

NOT private school (because you are in the above neighborhood)

Pay for Health Insurance, Utilities / Gas / Food, going out to eat on the weekends, weekend activities

Save and later pay for your 2.5 kid's 4 year colleges

2 $40K cars (payment meaning 2-3 years old)

Someone to cut lawn

Someone to clean your house

If you are younger, childcare for your 2.5 kids

After school activities

Car for your teenagers

Retain your same lifestyle in retirement minus a house payment (assuming you pay your house off)

That is is the American fantasy not the American dream.

No, I agree with the first PP. That is an example of the upper middle class American Dream... plenty of people able to do this in Dallas or Atlanta etc. for probably a bit more than 100-150K a year, but not easily possible in NYC, SF, DC, unless you have way more income/resources.

We have all of this on $250k/year with the only exception being we live in Loudoun and DH has a 15 minute commute to his job in Reston. It's fairly typical out here, with short commutes, but haters gonna hate.

I feel I have all of this in Prince Georges excluding the public school. So we pay for private which we can do because our house is affordable and can be paid off before we are 45.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:if you want the generic "american dream" in the DC area 250K isn't enough let alone be "rich". Rich in IMO is exceeding the american dream and having money to spend on extra things like a vacation house, extravagent international family vacations, first class airplane tickets for your whole family and still exceed the "american dream" standard.

The generic american dream IMO is the following:

3000 SQRFT Newer House (less than 10 years old) In a Good neighborhood (Mclean, Vienna, Bethesda etc...), WITHOUT previous housing appreciation as a downpayment (starting fresh)

NOT private school (because you are in the above neighborhood)

Pay for Health Insurance, Utilities / Gas / Food, going out to eat on the weekends, weekend activities

Save and later pay for your 2.5 kid's 4 year colleges

2 $40K cars (payment meaning 2-3 years old)

Someone to cut lawn

Someone to clean your house

If you are younger, childcare for your 2.5 kids

After school activities

Car for your teenagers

Retain your same lifestyle in retirement minus a house payment (assuming you pay your house off)

That is is the American fantasy not the American dream.

No, I agree with the first PP. That is an example of the upper middle class American Dream... plenty of people able to do this in Dallas or Atlanta etc. for probably a bit more than 100-150K a year, but not easily possible in NYC, SF, DC, unless you have way more income/resources.

We have all of this on $250k/year with the only exception being we live in Loudoun and DH has a 15 minute commute to his job in Reston. It's fairly typical out here, with short commutes, but haters gonna hate.

totally doable in Loudoun County, VA or Howard County, MD. Great lifestyles, great schools, sense of community. Love it.

[Anonymous]

Anonymous wrote:"Down and Out"? Hardly. The hypothetical couple described in the article was in the red AFTER saving for college for their kids, saving for retirements, and living a "middle of the road" lifestyle. It's not like they are standing in soup kitchen lines on 250K.

Our country is in trouble if only the "rich" can save for retirement and college and have no money left over. The rest of the country will end up needing the government for college and retirement. A life of luxury now is a mortgage, a decent education for your kids, and not having to work until you are 90.

[Anonymous]

Anonymous wrote:

Anonymous wrote:"Down and Out"? Hardly. The hypothetical couple described in the article was in the red AFTER saving for college for their kids, saving for retirements, and living a "middle of the road" lifestyle. It's not like they are standing in soup kitchen lines on 250K.

Our country is in trouble if only the "rich" can save for retirement and college and have no money left over. The rest of the country will end up needing the government for college and retirement. A life of luxury now is a mortgage, a decent education for your kids, and not having to work until you are 90.

sadly, for most of the country outside out little bubble world in DC, what you describe is absolutely the norm. And yes, we ARE in trouble.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:"Down and Out"? Hardly. The hypothetical couple described in the article was in the red AFTER saving for college for their kids, saving for retirements, and living a "middle of the road" lifestyle. It's not like they are standing in soup kitchen lines on 250K.

Our country is in trouble if only the "rich" can save for retirement and college and have no money left over. The rest of the country will end up needing the government for college and retirement. A life of luxury now is a mortgage, a decent education for your kids, and not having to work until you are 90.

sadly, for most of the country outside out little bubble world in DC, what you describe is absolutely the norm. And yes, we ARE in trouble.

+10000000000000000000000000

[Anonymous]

I would give anything to have $250. Family of 3 on $100K. I am saving and living ok. I still worry about my future. Would love to make $250 for a couple of years so I can sock enough away to pay off a house in Florida!