Do you make $400,000 a year but feel broke?

[Anonymous]

Anonymous wrote:We have a HHI of around 1M and two kids at a DC private school. I definitely do not want to subsidize your procreation. You had four kids. That choice was yours. If you can't pay for private school, that is the consequence. In reality, no family making $65K a year is sending four kids to private school even with aid. Heck, most families making $1M aren't sending four kids to private school. Big family=public school. Or, maybe you can just pick your favorite kid and send that one to private!

This is perfectly illustrative of the elitist mindset that populates this region.

I personally did not have 4 kid so I don't have to sacrifice one for the other as you're suggesting, but I don't believe kids in that situation should be precluded from the same opportunities that the children of this privileged poster has.

Our tax code recognizes that a family making $1M should pay a higher blended rate than a family making $400k, that a family making $400k should a higher blended rate than one on $150k; and one on $150k should pay more than one on $50k, etc. It is a drop in the bucket for a family making $1M to afford 2 private tuitions. (This is addressed partially by schools rightfully shaming them into paying more through donations, though it's not enough).

In my view, the pay system should be graduated at other levels in a manner similar to the tax code. The main reason this does not occur is that the families making $1M would like the private schools to be filled with similar elite families, along with some token lower SES students to check the diversity box while ensuring that the system keeps their legacy kids on track for HYP.

As is often the case, the proletariat facilitates its own suppression by not questioning the system.

[Anonymous]

No, actually, I chose to buy in MoCo/FCPS so that my 4 kids could all go to good schools. Private schools are not a right.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I don't think HHI 400k for a family of 4 should feel broke no matter what high COL area they live in, but I really don't think it's that much money, and can easily be spent if not careful. Our HHI is around 300k and we can max out our retirement and college savings and still go on 2 vacations/year and eat out once in awhile. We drive our 10+ year old Hondas to the ground and are careful with what we buy. With daycare, student loans, mortgage on a modest house, insurances, daily living expenses, it all quickly goes. Our luxuries are we get to spend 10k on traveling, eat out 1-2x a week, max out 401ks, and contribute 24k/yr to 529s, but that's really it.

the bolded part really says it all.

I wanted to respond similarly, but I just can't type that well with my head exploding.

[Anonymous]

You do get a volume discount on tuition if you send your kids to Catholic school.

[Anonymous]

Anonymous wrote:
You do get a volume discount on tuition if you send your kids to Catholic school.

Yes, and it doesn't cost $30k, either. But it's obviously not "good enough" for anyone making $400k. Those kids need the best and most expensive.

[Anonymous]

Anonymous wrote:
You do get a volume discount on tuition if you send your kids to Catholic school.

Exactly - the Catholic Church tends to be economically progressive as I'm suggesting should be the case more broadly within the independent school system.

[Anonymous]

I feel the same way, but I don't want to send my kids to private school. I want a boat.

People making $400K should be entitled to a discount on boats. After maxing out retirement savings and 529s, paying student loans and mortgage, and eating out (only 1-2x per week), there simply isn't enough left to pay for a boat.

I deserve a boat. I should get a discount so I can have one.

[Anonymous]

Anonymous wrote:I feel the same way, but I don't want to send my kids to private school. I want a boat.

People making $400K should be entitled to a discount on boats. After maxing out retirement savings and 529s, paying student loans and mortgage, and eating out (only 1-2x per week), there simply isn't enough left to pay for a boat.

I deserve a boat. I should get a discount so I can have one.

By equating independent schools with buying a boat, you're intentionally attempting to perpetuate an exclusionary system where wealthy/legacy children are entitled to exclusive opportunities regardless of merit. According to the National Association of Independent Schools, financial aid "supports the drive to provide opportunity to the best and brightest, regardless of their economic circumstances."

I realize it's a controversial stance to suggest that every family should have an opportunity to rationally afford independent schools, but that's my position.

[Anonymous]

400K is wealthy even by high COL standards, don't be ridiculous. I also think it's absurd to need to save 100K before even considering private school...that's more than two thirds of this country makes per year. If private school is a priority for your family, cut back on other areas, like living in a house with a cheaper mortgage, maybe that's small and means your kids have to share rooms. Honestly, the most expensive housing is in areas with good school districts, and if you are going to opt for private school anyway, you can live somewhere with shitty schools and save on mortgage and property taxes.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I feel the same way, but I don't want to send my kids to private school. I want a boat.

People making $400K should be entitled to a discount on boats. After maxing out retirement savings and 529s, paying student loans and mortgage, and eating out (only 1-2x per week), there simply isn't enough left to pay for a boat.

I deserve a boat. I should get a discount so I can have one.

By equating independent schools with buying a boat, you're intentionally attempting to perpetuate an exclusionary system where wealthy/legacy children are entitled to exclusive opportunities regardless of merit. According to the National Association of Independent Schools, financial aid "supports the drive to provide opportunity to the best and brightest, regardless of their economic circumstances."

I realize it's a controversial stance to suggest that every family should have an opportunity to rationally afford independent schools, but that's my position.

the key is rationally afford. i believe someone with 400k can rationally afford private school if that is their priority.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I don't think HHI 400k for a family of 4 should feel broke no matter what high COL area they live in, but I really don't think it's that much money, and can easily be spent if not careful. Our HHI is around 300k and we can max out our retirement and college savings and still go on 2 vacations/year and eat out once in awhile. We drive our 10+ year old Hondas to the ground and are careful with what we buy. With daycare, student loans, mortgage on a modest house, insurances, daily living expenses, it all quickly goes. Our luxuries are we get to spend 10k on traveling, eat out 1-2x a week, max out 401ks, and contribute 24k/yr to 529s, but that's really it.

the bolded part really says it all.

I wanted to respond similarly, but I just can't type that well with my head exploding.

I still don't think it's as much as people make it out to be. To me, it's higher end of middle class because saving for 529 and retirement really shouldn't be counted as luxuries. We save on a modest house, cheap clothes, old but functional cars to travel and eat out a bit more. I'm not sure why you people think that's so much. What are your expectations for a middle class family?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I don't think HHI 400k for a family of 4 should feel broke no matter what high COL area they live in, but I really don't think it's that much money, and can easily be spent if not careful. Our HHI is around 300k and we can max out our retirement and college savings and still go on 2 vacations/year and eat out once in awhile. We drive our 10+ year old Hondas to the ground and are careful with what we buy. With daycare, student loans, mortgage on a modest house, insurances, daily living expenses, it all quickly goes. Our luxuries are we get to spend 10k on traveling, eat out 1-2x a week, max out 401ks, and contribute 24k/yr to 529s, but that's really it.

the bolded part really says it all.

I wanted to respond similarly, but I just can't type that well with my head exploding.

I still don't think it's as much as people make it out to be. To me, it's higher end of middle class because saving for 529 and retirement really shouldn't be counted as luxuries. We save on a modest house, cheap clothes, old but functional cars to travel and eat out a bit more. I'm not sure why you people think that's so much. What are your expectations for a middle class family?

wow

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I don't think HHI 400k for a family of 4 should feel broke no matter what high COL area they live in, but I really don't think it's that much money, and can easily be spent if not careful. Our HHI is around 300k and we can max out our retirement and college savings and still go on 2 vacations/year and eat out once in awhile. We drive our 10+ year old Hondas to the ground and are careful with what we buy. With daycare, student loans, mortgage on a modest house, insurances, daily living expenses, it all quickly goes. Our luxuries are we get to spend 10k on traveling, eat out 1-2x a week, max out 401ks, and contribute 24k/yr to 529s, but that's really it.

the bolded part really says it all.

I wanted to respond similarly, but I just can't type that well with my head exploding.

I still don't think it's as much as people make it out to be. To me, it's higher end of middle class because saving for 529 and retirement really shouldn't be counted as luxuries. We save on a modest house, cheap clothes, old but functional cars to travel and eat out a bit more. I'm not sure why you people think that's so much. What are your expectations for a middle class family?

Heads are exploding every where. $400k/year is not middle class. Stop being a clown.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I feel the same way, but I don't want to send my kids to private school. I want a boat.

People making $400K should be entitled to a discount on boats. After maxing out retirement savings and 529s, paying student loans and mortgage, and eating out (only 1-2x per week), there simply isn't enough left to pay for a boat.

I deserve a boat. I should get a discount so I can have one.

By equating independent schools with buying a boat, you're intentionally attempting to perpetuate an exclusionary system where wealthy/legacy children are entitled to exclusive opportunities regardless of merit. According to the National Association of Independent Schools, financial aid "supports the drive to provide opportunity to the best and brightest, regardless of their economic circumstances."

I realize it's a controversial stance to suggest that every family should have an opportunity to rationally afford independent schools, but that's my position.

the key is rationally afford. i believe someone with 400k can rationally afford private school if that is their priority.

Yes, that is the key. As noted multiple times, there's unanimous agreement that a family on $400k HHI can afford one private school tuition, full stop. However, if you flip to an example of four kids, with earning power being a recent phenomenon and no real wealth/savings/equity backing it up, it's definitely conceivable that a family on $400k could not rationally afford $120k full freight.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I don't think HHI 400k for a family of 4 should feel broke no matter what high COL area they live in, but I really don't think it's that much money, and can easily be spent if not careful. Our HHI is around 300k and we can max out our retirement and college savings and still go on 2 vacations/year and eat out once in awhile. We drive our 10+ year old Hondas to the ground and are careful with what we buy. With daycare, student loans, mortgage on a modest house, insurances, daily living expenses, it all quickly goes. Our luxuries are we get to spend 10k on traveling, eat out 1-2x a week, max out 401ks, and contribute 24k/yr to 529s, but that's really it.

the bolded part really says it all.

I wanted to respond similarly, but I just can't type that well with my head exploding.

I still don't think it's as much as people make it out to be. To me, it's higher end of middle class because saving for 529 and retirement really shouldn't be counted as luxuries. We save on a modest house, cheap clothes, old but functional cars to travel and eat out a bit more. I'm not sure why you people think that's so much. What are your expectations for a middle class family?

Heads are exploding every where. $400k/year is not middle class. Stop being a clown.

Haters gonna hate. A person fully funding 401ks and 529s and nothing else is doing well, but they are certainly not wealthy.