Washingtonians say $3 million = "wealthy", $720K = comfortable"

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I tend to agree with the 3 million number. HHI is 300,000 in Northern VA and I feel broke.

My Net Worth is around 1.3 million but most of it is not liquid. I often told my spouse that we would feel comfortable if we had 2-3 million in the bank, liquid.

You got budget problems. Seriously.

Umm not really.

Take Home after only 401K: $15,000ish (depends on time of year) a month

Monthly Expenses
Mortgage (first and HELOC): $4300
Two Luxury SUVs: $2000
Eating Out: $2500
Entertainment $1500
Clothes and other Miscellaneous $500
Utilities, Cable, Etc. $1000
Gardener, Tutor, Maid Service, etc. $1200
Groceries $1000
Gas $500
Insurance and other similar Crap $1000 (Homewowners, Life, Disability, etc)

Most Truly broke people don't drive luxury suvs and eat out everyday.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I tend to agree with the 3 million number. HHI is 300,000 in Northern VA and I feel broke.

My Net Worth is around 1.3 million but most of it is not liquid. I often told my spouse that we would feel comfortable if we had 2-3 million in the bank, liquid.

You got budget problems. Seriously.

Umm not really.

Take Home after only 401K: $15,000ish (depends on time of year) a month

Monthly Expenses
Mortgage (first and HELOC): $4300 3,500
Two Luxury SUVs: $2000 $0. Own one car outright, one job provides free metro card
Eating Out: $2500. 1,000
Entertainment $1500. 1,000
Clothes and other Miscellaneous $500. similar
Utilities, Cable, Etc. $1000. 500
Gardener, Tutor, Maid Service, etc. $1200 0. We do this all by ourselves.
Groceries $1000. 800
Gas $500. 50-100
Insurance and other similar Crap $1000 (Homewowners, Life, Disability, etc) not sure honestly. Most is deducted from our paychecks.

I'll add my comparison. I think you'll see how you're choosing to be broke. We spend at least $6,400 less than you do, which is how we save money and you don't.

[Anonymous]

Anonymous wrote:The article is talking about net worth, right? But some of the PPs are referencing household income.

I can understand the confusion when the article itself conflates the two: "households grossing at least $1 million in assets" ...

What a stupid sentence -- you can't gross assets.

The article can't be much better.

[Anonymous]

I added up your budget items and I get 15,500/mo. You said that you take home around 15k/mo so that's definitely a problem long term. How much longer on your mortgage and HELOC? Assuming you can pay those off before retirement then at least your expenses drop to $11200.00/mo. Still, in order to generate that amount passively without drawing down your principal you'd need around 3.4MM (ignoring SS and varies a bit based on which withdrawal model you select). That amount is totally attainable on your HHI, but not with your level of spending. I don't know what your ages are, but I don't see how you will ever get there with only 1 or 2 401ks even if they are maxed. You will need a substantial taxable investment balance unless you can dramatically reduce your spending. Maybe a better scenario is to get a handle on the spending now so you can attack it from two fronts. Lowering the spending now will enable you to save more and will also bring your target amount down since you won't have such a high monthly spend in retirement.

[Anonymous]

Anonymous wrote:So I was the $300,000 broke person. To respond, poster that said costs went up as kids got older and in private school hit the nail on the head. There is five of us, including three teenagers. Second, we buy salads form Chopt and other similar places for us several times a week. Each time is $50 per order for five people So it can be healthy. SUVs are leased. Give up after warranty get new ones. No maintenance costs or minimal.

If you paid off those vehicles instead of leasing them, you would be saving 12k a year for repairs on those vehicles. They probably wouldn't need anywhere near that amount of maintenance expenses unless they were 20 years old or you are going to the overpriced dealer paying $120 an hour.

If they're leased because you can business expense them, then there is some value in that, but if thats not the case you are shooting yourself in the foot.

[Anonymous]

Anonymous wrote:

Anonymous wrote:So I was the $300,000 broke person. To respond, poster that said costs went up as kids got older and in private school hit the nail on the head. There is five of us, including three teenagers. Second, we buy salads form Chopt and other similar places for us several times a week. Each time is $50 per order for five people so it can be healthy. SUVs are leased. Give up after warranty get new ones. No maintenance costs or minimal.

If you paid off those vehicles instead of leasing them, you would be saving 12k a year for repairs on those vehicles. They probably wouldn't need anywhere near that amount of maintenance expenses unless they were 20 years old or you are going to the overpriced dealer paying $120 an hour.

If they're leased because you can business expense them, then there is some value in that, but if thats not the case you are shooting yourself in the foot.

Again, why do you eat out so much every single week?

[Anonymous]

Wow, people are staying in DC because of the Arts, restaurants and public transportation?!?!? I can see education and jobs but the others are lacking.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:So I was the $300,000 broke person. To respond, poster that said costs went up as kids got older and in private school hit the nail on the head. There is five of us, including three teenagers. Second, we buy salads form Chopt and other similar places for us several times a week. Each time is $50 per order for five people so it can be healthy. SUVs are leased. Give up after warranty get new ones. No maintenance costs or minimal.

If you paid off those vehicles instead of leasing them, you would be saving 12k a year for repairs on those vehicles. They probably wouldn't need anywhere near that amount of maintenance expenses unless they were 20 years old or you are going to the overpriced dealer paying $120 an hour.

If they're leased because you can business expense them, then there is some value in that, but if thats not the case you are shooting yourself in the foot.

Again, why do you eat out so much every single week?

Yeah, and $2500 a month buys a lot of Chopt salads. I don't think that's where most of the restaurant budget is going.

[Anonymous]

Anonymous wrote:

Anonymous wrote:So, in a few years, when I retire, I can take my 2 mil in 401K + 500K home equity, and move elsewhere and be rich?

I mean, I think you're being tongue in cheek here... but, yes. Of course you could be rich with $2.5M NW in many many parts of the world.

Our net worth is about $4.5 million, yet my spouse and I still work full time. Yes we are wealthy but that doesn't mean we can retire now, in our late 40s, so who cares what demographers call us?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:So, in a few years, when I retire, I can take my 2 mil in 401K + 500K home equity, and move elsewhere and be rich?

I mean, I think you're being tongue in cheek here... but, yes. Of course you could be rich with $2.5M NW in many many parts of the world.

Our net worth is about $4.5 million, yet my spouse and I still work full time. Yes we are wealthy but that doesn't mean we can retire now, in our late 40s, so who cares what demographers call us?

Actually you could retire now, in your late 40s and have a quality of life better than 95% of Americans.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:So, in a few years, when I retire, I can take my 2 mil in 401K + 500K home equity, and move elsewhere and be rich?

I mean, I think you're being tongue in cheek here... but, yes. Of course you could be rich with $2.5M NW in many many parts of the world.

Our net worth is about $4.5 million, yet my spouse and I still work full time. Yes we are wealthy but that doesn't mean we can retire now, in our late 40s, so who cares what demographers call us?

Actually you could retire now, in your late 40s and have a quality of life better than 95% of Americans.

Assuming you were returning 7-10% on your 4.5 million, you are talking about 315-450K per year which would fund one heck of a retirement. Even a conservative 3% is 135k. Assuming a paid of mortgage that is an excellent retirement as well.

[Anonymous]

Anonymous wrote:Wow, people are staying in DC because of the Arts, restaurants and public transportation?!?!? I can see education and jobs but the others are lacking.

DC has the largest theater district outside of NYC. The Smithsonian museums are on par with much of what NYC has to offer (many in NYC are actually whatever you want to donate if you are comparing admission prices). Public transport is inferior though, but better than most US cities asides from NYC.

http://www.dbknews.com/archives/article_3b8ec4ee-5246-11e3-ab79-001a4bcf6878.html

[Anonymous]

Anonymous wrote:

Anonymous wrote:Wow, people are staying in DC because of the Arts, restaurants and public transportation?!?!? I can see education and jobs but the others are lacking.

DC has the largest theater district outside of NYC. The Smithsonian museums are on par with much of what NYC has to offer (many in NYC are actually whatever you want to donate if you are comparing admission prices). Public transport is inferior though, but better than most US cities asides from NYC.

http://www.dbknews.com/archives/article_3b8ec4ee-5246-11e3-ab79-001a4bcf6878.html

Quantity doesn't equal quality... And also theater is just one many art forms. I know many acts that specifically skip DC.

The Smithsonian is great but its mainly for tourists and is not a substitution for an art scene.

Restaurant scene is okay on the high end but mid range it sucks.

The metro system is not better than most US cities. It is too small and that actually makes it look better in some ways.

Some of these things are on the right trajectory but to say they are the reason people are staying here is ridiculous.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Wow, people are staying in DC because of the Arts, restaurants and public transportation?!?!? I can see education and jobs but the others are lacking.

DC has the largest theater district outside of NYC. The Smithsonian museums are on par with much of what NYC has to offer (many in NYC are actually whatever you want to donate if you are comparing admission prices). Public transport is inferior though, but better than most US cities asides from NYC.

http://www.dbknews.com/archives/article_3b8ec4ee-5246-11e3-ab79-001a4bcf6878.html

Quantity doesn't equal quality... And also theater is just one many art forms. I know many acts that specifically skip DC.

The Smithsonian is great but its mainly for tourists and is not a substitution for an art scene.

Restaurant scene is okay on the high end but mid range it sucks.

The metro system is not better than most US cities. It is too small and that actually makes it look better in some ways.

Some of these things are on the right trajectory but to say they are the reason people are staying here is ridiculous.

Name some.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Wow, people are staying in DC because of the Arts, restaurants and public transportation?!?!? I can see education and jobs but the others are lacking.

DC has the largest theater district outside of NYC. The Smithsonian museums are on par with much of what NYC has to offer (many in NYC are actually whatever you want to donate if you are comparing admission prices). Public transport is inferior though, but better than most US cities asides from NYC.

http://www.dbknews.com/archives/article_3b8ec4ee-5246-11e3-ab79-001a4bcf6878.html

Quantity doesn't equal quality... And also theater is just one many art forms. I know many acts that specifically skip DC.

The Smithsonian is great but its mainly for tourists and is not a substitution for an art scene.

Restaurant scene is okay on the high end but mid range it sucks.

The metro system is not better than most US cities. It is too small and that actually makes it look better in some ways.

Some of these things are on the right trajectory but to say they are the reason people are staying here is ridiculous.

All museums are mainly for tourists. You have made such idiotic statements that it really doesn't deserve a full-throated response. If you don't like the DC suburbs (I doubt that you live in DC proper), just move to another part of the country. Some other bedroom community eagerly awaits your arrival.