If you make 500-600k range and are married with kids

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:$500k

PITI: $4900
Nanny: $4000
Sports & Activities (kids are mid-elementary school): $800
529s: $1500
Investment: $1500
Max out 401ks (x2)

This is my fear of getting a nanny or moving to a more expensive house. Our salary is only 375k (bonus a lot more) and we save at least 5k per month after retirement. I can’t imagine earning 500k and only being able to save 1500 a month! The 401ks won’t be nearly enough to support you in retirement.

To out things in perspective - pp earns 41k a month pretax and can only find 1,500 to invest. Wow.

Pretax is interesting but not relevant at our tax level, especially with a two income hh. We bring home about $17k a month. Between investment, 401ks and 529s we save $72k a year.

We are both mid 40s and have $2.1 million in retirement, $300k in an investment account, $265k in 529s, $100k in an emergency fund and $600k in equity in our house. Our only debt is our mortgage. I’m comfortable where we are.

I guess? Most people on this board are dual income with a higher HHI. Bringing home 17k a month and only saving $1.5 is kind of pathetic.

Also not sure how at 500k you bring home only 17k per month. We of course max out everything and at close to 400k we bring home 16k per month.

They might live in a high income state or have expensive health insurance for some reason.

My husband's base salary is 300k and he bring some close to 16k a month in monthly income. Plus 2 bonuses in the 200k range each.

Everyone's situation differs because the tax laws are so messed up.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I make in that range and so does DH so combined it's around $1m.

major expenses:
Mortgage 1 - $4000/mo including RE taxes and insurance, will be paid off in 5 more years, pay extra every month
Mortgage 2 - $3500/mo but we pay RE taxes and insurance separately. Pay $10k/month on this one to reduce principal.
College - $70k/year, 529 savings offsets much of it, kid will graduate soon
Retirement Savings in tax advantaged accounts - about $120k/year
Other savings/investments - about $200k/year
Renovation projects on one house or the other - usually $25k-50k.
Travel - $20-25k/year
Health insurance - $35-40k/year (high premiums and high deductible)

Saving $320k a year...I have to admit that's awesome. If only...

I'm guessing you clear $500k annually after taxes...that's impressive you're only spending $300k annually (so you're saving more than you spend annually...my guess is not many of us can say that). I think a lot of us would be tempted to spend more. How many children do you have? Health insurance seems a lot!

Only 1 kid still "at home" (technically away at college but we still pay all the bills). We are now in our peak savings (and earnings) years so trying to save as much as possible. Insurance is self pay (and we are over 50, plus 2 kids are still on the plan) so that's why it's so high. Plus the high deductible means we are essentially paying out of pocket for all health care costs most of the year.

[Anonymous]

Anonymous wrote:This is how the rich got that way and how they get richer. Take heed.

lol by holding onto debt? $500k a year isnt rich - $10mm + is rich. Take heed on wtf you’re talking about and then you can come sit at the grownups table.