What HHI is needed for this lifestyle in the area?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:My 67-year-old parents did all of this on a single $225K salary (except for the car – they used to have Toyotas and only now have Audis). Retirement was accomplished by their $225,000 pension, private school was 75% paid for by the job, etc. Home was purchased for $300K but is now $1.5 million. Amazing how much easier things were 30 years ago.

$225 was a lot 30 years ago.

Yes, it was. Equivalent to $464,400.

So there’s part of your answer. You’ll need more than that unless you also have a fully funded pension, private school paid for by work, SAHP, and drive Toyota’s.

Yep. The private scfool being 75 percent paid for suggests the job was imf or something like that. It’s a really rare perk.

[Anonymous]

We are at 600k and definitely can’t afford that. I’d say 1m is a lower threshold. Maybe more.

[Anonymous]

We couldn't do it on $600k, but we have to make mandatory capital commitments to DH's fund, we financially support our in-laws, we have to pay a full time nanny and a regular housekeeper since we both work at least 50 hours per week, and we fund 529 plans at $16k per kid per year (2 kids) and we each max out our 401ks. We need $1m+ per year under the circumstances. Looking forward to the day when 529 plans are fully funded as I'm going to "retire" to SAHM as this lifestyle often feels like it's too much.

[Anonymous]

Anonymous wrote:We couldn't do it on $600k, but we have to make mandatory capital commitments to DH's fund, we financially support our in-laws, we have to pay a full time nanny and a regular housekeeper since we both work at least 50 hours per week, and we fund 529 plans at $16k per kid per year (2 kids) and we each max out our 401ks. We need $1m+ per year under the circumstances. Looking forward to the day when 529 plans are fully funded as I'm going to "retire" to SAHM as this lifestyle often feels like it's too much.

So, how much money do you expect your fully funded 529s to contain?

[Anonymous]

Anonymous wrote:

Anonymous wrote:1.5 mil house in a desirable zip code
Private school for 2 kids
2 cars, one should be luxury: think bmv or Audi
1 internal trip per year; skiing trip in the winter for the whole family
Fully funded 401k and IRAs
Fully funded college funds for the kids

1 mil?

Define “fully funded college funds.” In other words, how much should the FFCF contain at the start of your child’s senior year of high school?

NP. To me it would be $250k per kid. When people say fully funded, I assume that’s what they’re also talking about. If they say $125k each. Well that’s not fully funded. That’s only enough for your state universities.

[Anonymous]

If you make 600k your take home (after maxing 401ks, HSAs, taxes, etc) should be around 330k or so (55%).

Spending 100k on two kids, or 30% of your net pay is absurd. Assume you would also have a PITI of around 6k that means between school and your mortgage you are spending 172k or your 330k (over 50%) on those two factors.

Not great..

I personally think 1M is the number to be able to save a good amount, pay for privates, decent home, decent travel, etc.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:My 67-year-old parents did all of this on a single $225K salary (except for the car – they used to have Toyotas and only now have Audis). Retirement was accomplished by their $225,000 pension, private school was 75% paid for by the job, etc. Home was purchased for $300K but is now $1.5 million. Amazing how much easier things were 30 years ago.

$225 was a lot 30 years ago.

Yes, it was. Equivalent to $464,400.

So there’s part of your answer. You’ll need more than that unless you also have a fully funded pension, private school paid for by work, SAHP, and drive Toyota’s.

Yep. The private scfool being 75 percent paid for suggests the job was imf or something like that. It’s a really rare perk.

Yikes! I didn’t mean to out myself on here, but yes the job was at the IMF.

Also, to the poster saying $225K was a lot 30 years ago, that was the ending salary just a couple of years ago. Thirty years ago, the salary would’ve been a lot less than that.

[Anonymous]

Anonymous wrote:We couldn't do it on $600k, but we have to make mandatory capital commitments to DH's fund, we financially support our in-laws, we have to pay a full time nanny and a regular housekeeper since we both work at least 50 hours per week, and we fund 529 plans at $16k per kid per year (2 kids) and we each max out our 401ks. We need $1m+ per year under the circumstances. Looking forward to the day when 529 plans are fully funded as I'm going to "retire" to SAHM as this lifestyle often feels like it's too much.

Same. I think what you describe works with closer to 800k-1M. We are at 600k and barely breaking even between 60k mortgage on 1.6M home, 70k+ to retirement a year, (one of us has extra retirement opportunities), 30k per kid to 529 for the next 5-6 years, 60-70k for nanny, and more for housekeeper, landscapers, babysitters, etc. We can't be sure on this budget to be able to afford 12 years of private school for our three kids, so we are starting them in public for a few years until we feel more financially secure. Maybe once the 529s are "fully funded" we can divert those to tuition, and obviously the nanny will get dropped, but right now 600k isn't cutting it.

That being said, we aren't the most financially prudent - we are very social, love weekend trips, eat out twice a week, do a lot of charitable giving, etc. I bet a family 100% committed to paying for private education could make this work.

[Anonymous]

Anonymous wrote:

Anonymous wrote:We couldn't do it on $600k, but we have to make mandatory capital commitments to DH's fund, we financially support our in-laws, we have to pay a full time nanny and a regular housekeeper since we both work at least 50 hours per week, and we fund 529 plans at $16k per kid per year (2 kids) and we each max out our 401ks. We need $1m+ per year under the circumstances. Looking forward to the day when 529 plans are fully funded as I'm going to "retire" to SAHM as this lifestyle often feels like it's too much.

So, how much money do you expect your fully funded 529s to contain?

$300k per kid, which is ~ the cost of our alma matters.

[Anonymous]

Anonymous wrote:ski trips out west are really expensive. like 10-15k for family of four, assuming you want ski in/ski out (why do it otherwise).

I wouldn’t consider that expensive. My week in Rehoboth costs that much.

[Anonymous]

Anonymous wrote:

Anonymous wrote:ski trips out west are really expensive. like 10-15k for family of four, assuming you want ski in/ski out (why do it otherwise).

I wouldn’t consider that expensive. My week in Rehoboth costs that much. [/

15k to go to REHOBOTH!? Are you high?

[Anonymous]

Anonymous wrote:

Anonymous wrote:ski trips out west are really expensive. like 10-15k for family of four, assuming you want ski in/ski out (why do it otherwise).

I wouldn’t consider that expensive. My week in Rehoboth costs that much.

That’s a shame

[Anonymous]

On $750k, this is comfortably doable with 2 kids.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:ski trips out west are really expensive. like 10-15k for family of four, assuming you want ski in/ski out (why do it otherwise).

I wouldn’t consider that expensive. My week in Rehoboth costs that much.

That’s a shame

Anyone blowing $15,000 a week on rehoboth is a moron.

[Anonymous]

Well our HHI is about $160k now after a jump about a year ago. We live in $1.2m house. Have a new but not luxury car fully paid, and no interest in private schools, but we do manage at least 3 US vacations per year, and usually one European plus maxing retirement accounts and fully funding college. I can’t imagine why folks would need another $850k per grade to improve their cars or send their kids to private schools! In the other hand I guess our neighbors think we are wealthier than we are!