1.6MM home- how much would you want to be making?

[Anonymous]

Anonymous wrote:Think about utilities for a large house.

Utilities aren't that much if it's a new house. You should be maxing out your 401(k) before anything else.

You are forgetting vacations, health insurance, medical costs.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:OP here- thanks very much for the comments, greatly appreciate the feedback.

My kids are 5 and 2 - one just started kindergarten (public school), and the other has some activities during the week (little gym, etc.)

Here is the math I'm doing (may be wrong/short-sighted, so any suggestions are appreciated):

310K / 12 = 25833 gross monthly
* .67 (for 33% tax) = 17300 net monthly income
- 7000 PITI (if I put down 28-30% instead of 20%)
- 1500 housing costs (utilities, house cleaning, yard work, etc.)
- 5500 all other expenses, an average over 12 months, includes all necessary and luxury expenses such as food/groceries/restaurants, shopping, clothes, travel, etc.
- 175 car insurance (2 cars)

= a bit above $3K left

Now a few notes:

1) 401K: i'm currently contributing 6% of main-job income with 50% match (around 13K per year)

2) I fully expect both my main job as well as my side job to increase income over the next couple of years (possibly 50K more over the next 1-2 years)

3) DW may go back part-time in the future (she's a hygienist), after the youngest gets to kindergarten, probably can bring in 1.5K net monthly income

Thoughts? Thanks again for the feedback/comments so far.

Did you just get a new job offer for $310? It doesn't sound like you know exactly what your take home pay is. Check your direct deposit. It is never exactly 33% tax.

I know my DH has fed, state, ss, health, vision, 401k, etc taken out. It is more than 33%.

It's way more. It's closer to 50 percent including retirement.

PP here. DH's salary is 309k. I just checked. He gets $7075 per pay cycle or $14,150 per month. Definitely not 17k+ as OP projected.

$7075 per pay cycle is $1529 a month, not $14,150. But otherwise I agree, deductions on that salary will be higher once SS, healthcare etc are included

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:OP here- thanks very much for the comments, greatly appreciate the feedback.

My kids are 5 and 2 - one just started kindergarten (public school), and the other has some activities during the week (little gym, etc.)

Here is the math I'm doing (may be wrong/short-sighted, so any suggestions are appreciated):

310K / 12 = 25833 gross monthly
* .67 (for 33% tax) = 17300 net monthly income
- 7000 PITI (if I put down 28-30% instead of 20%)
- 1500 housing costs (utilities, house cleaning, yard work, etc.)
- 5500 all other expenses, an average over 12 months, includes all necessary and luxury expenses such as food/groceries/restaurants, shopping, clothes, travel, etc.
- 175 car insurance (2 cars)

= a bit above $3K left

Now a few notes:

1) 401K: i'm currently contributing 6% of main-job income with 50% match (around 13K per year)

2) I fully expect both my main job as well as my side job to increase income over the next couple of years (possibly 50K more over the next 1-2 years)

3) DW may go back part-time in the future (she's a hygienist), after the youngest gets to kindergarten, probably can bring in 1.5K net monthly income

Thoughts? Thanks again for the feedback/comments so far.

Did you just get a new job offer for $310? It doesn't sound like you know exactly what your take home pay is. Check your direct deposit. It is never exactly 33% tax.

I know my DH has fed, state, ss, health, vision, 401k, etc taken out. It is more than 33%.

It's way more. It's closer to 50 percent including retirement.

PP here. DH's salary is 309k. I just checked. He gets $7075 per pay cycle or $14,150 per month. Definitely not 17k+ as OP projected.

$7075 per pay cycle is $1529 a month, not $14,150. But otherwise I agree, deductions on that salary will be higher once SS, healthcare etc are included

???
PP - did you go to elementary school here? If so would you mind telling me where so i can make sure i avoid it.

[Anonymous]

The pp meant 15,290. Made a mistake while being pedantic. Happens a lot...

[Anonymous]

Anonymous wrote:The pp meant 15,290. Made a mistake while being pedantic. Happens a lot...

$7075 x 2 is $14,150. I don't understand where $15,290 is coming from.

[Anonymous]

Anonymous wrote:The pp meant 15,290. Made a mistake while being pedantic. Happens a lot...

I think the person was trying to add the 2 extra pay cycles per year.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:OP here- thanks very much for the comments, greatly appreciate the feedback.

My kids are 5 and 2 - one just started kindergarten (public school), and the other has some activities during the week (little gym, etc.)

Here is the math I'm doing (may be wrong/short-sighted, so any suggestions are appreciated):

310K / 12 = 25833 gross monthly
* .67 (for 33% tax) = 17300 net monthly income
- 7000 PITI (if I put down 28-30% instead of 20%)
- 1500 housing costs (utilities, house cleaning, yard work, etc.)
- 5500 all other expenses, an average over 12 months, includes all necessary and luxury expenses such as food/groceries/restaurants, shopping, clothes, travel, etc.
- 175 car insurance (2 cars)

= a bit above $3K left

Now a few notes:

1) 401K: i'm currently contributing 6% of main-job income with 50% match (around 13K per year)

2) I fully expect both my main job as well as my side job to increase income over the next couple of years (possibly 50K more over the next 1-2 years)

3) DW may go back part-time in the future (she's a hygienist), after the youngest gets to kindergarten, probably can bring in 1.5K net monthly income

Thoughts? Thanks again for the feedback/comments so far.

Did you just get a new job offer for $310? It doesn't sound like you know exactly what your take home pay is. Check your direct deposit. It is never exactly 33% tax.

I know my DH has fed, state, ss, health, vision, 401k, etc taken out. It is more than 33%.

It's way more. It's closer to 50 percent including retirement.

PP here. DH's salary is 309k. I just checked. He gets $7075 per pay cycle or $14,150 per month. Definitely not 17k+ as OP projected.

$7075 per pay cycle is $1529 a month, not $14,150. But otherwise I agree, deductions on that salary will be higher once SS, healthcare etc are included

???
PP - did you go to elementary school here? If so would you mind telling me where so i can make sure i avoid it.

NP - PP is doing (7075 x 26)/12... YOu are doing 7075 x 2/month

[Anonymous]

The assumption is that you're paid once every 2 weeks. Hence 26 payments per year, not 24.

[Anonymous]

Anonymous wrote:The assumption is that you're paid once every 2 weeks. Hence 26 payments per year, not 24.

When our mortgage is due, we don't get to count on that partial payment of the 2 extra pay cycles. We count on the 2 paychecks we know will hit our account.

[Anonymous]

We did it but knew income was rising. It did. I also switched from part time to full time over the years. The house hasn't appreciated much but we never have to move--it is our second home and meets our needs. The first one didn't, and I agree with the post about transactional costs. No regrets though the first few years were tough.

[Anonymous]

As a point of reference, we bought a house for about 1.6m a few years ago. Our monthly mortgage payment (including real estate taxes and insurance) is $7800. The take home income (after retirement, health insurance, taxes) is $25000.

[Anonymous]

Anonymous wrote:

Anonymous wrote:The assumption is that you're paid once every 2 weeks. Hence 26 payments per year, not 24.

When our mortgage is due, we don't get to count on that partial payment of the 2 extra pay cycles. We count on the 2 paychecks we know will hit our account.

Good for you. But i don't think that most people earning 300k are living paycheck to paycheck...

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:The assumption is that you're paid once every 2 weeks. Hence 26 payments per year, not 24.

When our mortgage is due, we don't get to count on that partial payment of the 2 extra pay cycles. We count on the 2 paychecks we know will hit our account.

Good for you. But i don't think that most people earning 300k are living paycheck to paycheck...

We actually have a seven figure income including bonuses. No one is living paycheck to paycheck. I do balance our checkbook. We invest so we don't keep all our money in our checking account.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:The assumption is that you're paid once every 2 weeks. Hence 26 payments per year, not 24.

When our mortgage is due, we don't get to count on that partial payment of the 2 extra pay cycles. We count on the 2 paychecks we know will hit our account.

Good for you. But i don't think that most people earning 300k are living paycheck to paycheck...

Actually OP sounds like they will be living paycheck to paycheck. One paycheck won't even cover the mortgage. He will need part of the second paycheck to cover the mortgage alone.

[Anonymous]

Op, look at your financial situation, your consumption habits, and future income vs expenses. People on this forum are nuts. I think most just have bad spending habits....excessive alochol, travel, recreation drug use, etc. You don't need a $500k to purchase a $1.6m home, at least when you are not white (cacausian). We built a $2m custom for a income same as yours and not stretched by any means. Both kids in private college and retirement fully funded and we travel and shop at whole foods,mets. We are in our late 40s. Bunch of bull here on this form....!