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

[Anonymous]

Anonymous wrote:You only have two kids so of course it's easy.

Having more is generally a choice....

[Anonymous]

Anonymous wrote:Everyone who is criticizing OP's charitable contributions-- please post your own income and contributions. Genuinely curious.

Personally I work a low paid social services job and feel just about no qualms donating very little of our family's 300k HHI. Go ahead, flame me for it.

'

$235K here, and we donate about $18K here.

[Anonymous]

Anonymous wrote:

Anonymous wrote:You only have two kids so of course it's easy.

Having more is generally a choice....

+1

Having any is a choice.

[Anonymous]

Anonymous wrote:You only have two kids so of course it's easy.

Are you upset that the OP decided not to have a litter of children? We don't live in an agricultural society anymore. Kudos to the OP for having the number of children that he and his wife can comfortably afford to raise.

[Anonymous]

Anonymous wrote:You only have two kids so of course it's easy.

(OP here) Sorry, were you forced to have more? I actually wanted more kids, but my wife didn't.

[Anonymous]

Anonymous wrote:I don't think $5K per year to charity on an income of $300K is the least bit generous.

We have a similar income and two kids but we give around $15K which I also don't consider enough or particularly generous.

We are so privileged and fortunate. $5K? Good grief.

1.6% agree.

[Anonymous]

Not arguing that OP is the most generous person out there, but just a reality check and reference point for everyone suggesting to donate 10% or more -- the average American (whether you consider the average American generous is up to you, I suppose) donates about 2.1% of adjusted gross income. It would be an even lower percentage of total gross income.

http://nccs.urban.org/sites/all/nccs-archive/html/knowledgebase/CHARITABLE_CONTRIBUTIONS_BY_STATE.pdf

[Anonymous]

Anonymous wrote:Not arguing that OP is the most generous person out there, but just a reality check and reference point for everyone suggesting to donate 10% or more -- the average American (whether you consider the average American generous is up to you, I suppose) donates about 2.1% of adjusted gross income. It would be an even lower percentage of total gross income.

http://nccs.urban.org/sites/all/nccs-archive/html/knowledgebase/CHARITABLE_CONTRIBUTIONS_BY_STATE.pdf

True, but that's roughly $1500 on with an adjusted gross income of around $60,000, so income net of charity is around $58,000. $300,000, net $15,000 charitable donation, leaves us with $285,000.

Yes, we pay higher taxes, and have higher expenses, etc., etc., etc., but we're still very, very comfortable.

[Anonymous]

Anonymous wrote:Not arguing that OP is the most generous person out there, but just a reality check and reference point for everyone suggesting to donate 10% or more -- the average American (whether you consider the average American generous is up to you, I suppose) donates about 2.1% of adjusted gross income. It would be an even lower percentage of total gross income.

http://nccs.urban.org/sites/all/nccs-archive/html/knowledgebase/CHARITABLE_CONTRIBUTIONS_BY_STATE.pdf

Minor correction, that 2.1% number isn't the average American, it's the average American that claims the charitable donation deduction. Presumably, the average of all Americans (which would include people who take the standard deduction or don't claim the charitable donation deduction), would be even lower than 2.1% of AGI.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Not arguing that OP is the most generous person out there, but just a reality check and reference point for everyone suggesting to donate 10% or more -- the average American (whether you consider the average American generous is up to you, I suppose) donates about 2.1% of adjusted gross income. It would be an even lower percentage of total gross income.

http://nccs.urban.org/sites/all/nccs-archive/html/knowledgebase/CHARITABLE_CONTRIBUTIONS_BY_STATE.pdf

True, but that's roughly $1500 on with an adjusted gross income of around $60,000, so income net of charity is around $58,000. $300,000, net $15,000 charitable donation, leaves us with $285,000.

Yes, we pay higher taxes, and have higher expenses, etc., etc., etc., but we're still very, very comfortable.

Look, you're really generous. That's commendable. But you're really an outlier. I'm not trying to argue that OP is generous or debate whether everyone should be as generous as you are. I'm not trying to make a normative statement at all. I'm just trying to provide a reference point to reality. If you look at just higher income households, the average numbers are much lower than what you do.

In the $200-250k AGI range, the average (out of people who claim the charitable deduction) is $5726. In the $250k - $500k AGI range, the average is $8917.

You guys are rock stars for donating $15k on $300k gross income. I'm impressed. I'm sure OP is impressed too. Well done.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Not arguing that OP is the most generous person out there, but just a reality check and reference point for everyone suggesting to donate 10% or more -- the average American (whether you consider the average American generous is up to you, I suppose) donates about 2.1% of adjusted gross income. It would be an even lower percentage of total gross income.

http://nccs.urban.org/sites/all/nccs-archive/html/knowledgebase/CHARITABLE_CONTRIBUTIONS_BY_STATE.pdf

True, but that's roughly $1500 on with an adjusted gross income of around $60,000, so income net of charity is around $58,000. $300,000, net $15,000 charitable donation, leaves us with $285,000.

Yes, we pay higher taxes, and have higher expenses, etc., etc., etc., but we're still very, very comfortable.

Look, you're really generous. That's commendable. But you're really an outlier. I'm not trying to argue that OP is generous or debate whether everyone should be as generous as you are. I'm not trying to make a normative statement at all. I'm just trying to provide a reference point to reality. If you look at just higher income households, the average numbers are much lower than what you do.

In the $200-250k AGI range, the average (out of people who claim the charitable deduction) is $5726. In the $250k - $500k AGI range, the average is $8917.

You guys are rock stars for donating $15k on $300k gross income. I'm impressed. I'm sure OP is impressed too. Well done.

PP here, sorry, I meant to provide a link for the above figures: https://www.fool.com/taxes/2015/02/15/are-your-tax-deductions-bigger-than-the-average-am.aspx

[Anonymous]

OP, your kids are young and attend public school. I forget if you are in DC or one of the surrounding suburbs, and I'm wondering if you plan on sending your kids to private (or moving to a better school district) for middle or high school?

Do you think you will be able to afford it comfortably? Are you saving now to make that easier?

[Anonymous]

Anonymous wrote:OP, your kids are young and attend public school. I forget if you are in DC or one of the surrounding suburbs, and I'm wondering if you plan on sending your kids to private (or moving to a better school district) for middle or high school?

Do you think you will be able to afford it comfortably? Are you saving now to make that easier?

LOL the title of the post literally says "NW DC." They live in AU Park/Tenleytown area, not a suburb.

[Anonymous]

Op, I think I got you beat. It should be "AMA" me.
I have lived in NWDC on $24k-$35k a year since 1997.
I enjoy the same nice neighborhood as you, my kid goes to public school and I drive a paid off car, and the damn thing is going to drive another 10 years.
Ofcourse I don't live in a house or own a house, but I really don't want to live in a house. I grew up on a farm and don't want to pull out one weed as long as I live. I love condo living- front desk, underground parking, heated pool, maintenance guys in the building, 1 block from DCPS.
Kid goes to public school and is doing fine there.
We travel to Europe once a year, no family money and I also took 3 months off this summer. Life is great, not complaining at all.
Retirement? Will spend most of the time in Europe where col is much lower.
Kid's education? Will pay for his BA. Mortgage will be retired way before kid goes to college.
I do receive child support, but it's only $400 a month.
We literally live off of about $1000 a month after all set expenses are paid, but it's plenty.

[Anonymous]

Anonymous wrote:Op, I think I got you beat. It should be "AMA" me.
I have lived in NWDC on $24k-$35k a year since 1997.
I enjoy the same nice neighborhood as you, my kid goes to public school and I drive a paid off car, and the damn thing is going to drive another 10 years.
Ofcourse I don't live in a house or own a house, but I really don't want to live in a house. I grew up on a farm and don't want to pull out one weed as long as I live. I love condo living- front desk, underground parking, heated pool, maintenance guys in the building, 1 block from DCPS.
Kid goes to public school and is doing fine there.
We travel to Europe once a year, no family money and I also took 3 months off this summer. Life is great, not complaining at all.
Retirement? Will spend most of the time in Europe where col is much lower.
Kid's education? Will pay for his BA. Mortgage will be retired way before kid goes to college.
I do receive child support, but it's only $400 a month.
We literally live off of about $1000 a month after all set expenses are paid, but it's plenty.

I'd love to AYA, PP! Here are my questions:

How do the travel expenses work, along with the vacation time (I imagine that you're a teacher using CC points, hence the 3 months)?

What about condo fees / rent (the building you're describing sounds eerily similar to a very expensive one in Cathedral Heights)? Save for the old studios/small 1BRs, that whole section of NW ain't cheap, IME.

Good on you for saving enough to send your kid to college on ~$30k! What was your investment strategy -- index funds, etc?