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

[Anonymous]

Anonymous wrote:Some questions for OP:

When do you expect to retire (age)?

How often do you do large scale home improvement projects?

We haven't done any large scale home improvement projects. We've lived here for 5 years. We've always talked about redoing the master bathroom, but haven't done it. I think it's possible that we renovate it in the next 3 years though.

I have no idea when we'll retire. Probably when the younger kids get through college and are on their own two feet? That's probably about 20 years away. If I stay at DOJ for another 23 years, I'd be 63 and collect something like a $53k pension (assuming the $160k fed salary cap remains and I don't become SES or something). Add in SS, and I think we'd probably have enough for retirement even without 401k/TSP. But, we'll probably have a few million on top of the pension and SS, so I think we'll be fine. Maybe we'll retire early? Who knows, it's pretty far off.

[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'm a single parent as well -- what is your mortgage payment?? We live out in the burbs but wondering if city living is possible.... I'm guessing not because you probably bought in the late 90s so likely we can't find anything comparable. But curious. We live on about the same amount after set expenses and we're doing fine as well.

[Anonymous]

I appreciate your AMA, OP. My husband and I have a HHI of $200k, send our one kid to private school, live in an inexpensive 'burb (thus private school) and feel like the well-off people we are. I travel to low income countries for work, and so I think my understanding of my own wealth gets a monthly tune up. I never want my child to think that he isn't privileged because there are people more privileged than he is. That's important to me.

[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.

You live in a condo with a heated pool in NW DC and travel to Europe on 24-35K a year? How? 24-35K is like only 2 to 3 thousand a month before taxes. Rent in good buildings runs about that.

[Anonymous]

Anonymous wrote:

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.

You live in a condo with a heated pool in NW DC and travel to Europe on 24-35K a year? How? 24-35K is like only 2 to 3 thousand a month before taxes. Rent in good buildings runs about that.

Assuming this person bought a condo in the late 90s.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I see so much confusion on here, and I thought I'd try to clear some stuff up. My central point is that life is easy, downright cushy even, on $300k per year gross income in the DC area. My wife (38) and I (40) raise our two kids (6 and 3) in upper NW DC and our gross income in 2016 was $300k. People who suggest they are scraping by at this income are either deluding you or deluding themselves.

I am happy to answer any questions and dispel any other related myths you may see on DCUM.

Some of our details:
- ~$300k gross income
- $about 70k in total income and payroll taxes
- PITI is about $3500 (we bought a 4 BR house near AU park in 2012 for low $800s. Before that we owned a small condo in Logan Circle)
- Public school (but we did daycare for both kids from 4 months - 3 years)
- I graduated from law school in 2004 with about $150k in student loans. Those are all paid off now.
- We don't do fancy luxury cars, but it's not bargain basement either. The last car we bought was in 2012 and it cost about $30k.
- We eat at nice restaurants weekly, travel several times a year, and buy more consumer goods (clothes for her, gadgets for him) than we probably should
- We save amply $36k per year in the 401k/TSP, $10k per year in the 529s, and $30-40k in the taxable brokerage account. Our savings balances include $750k in retirement accounts, $60k in 529s (kids are still young), and $250k in taxable brokerage accounts.
- We give to charity an amount that I think is generous, about $5k per year usually.

Solid middle class lifestyle

LOL, saving $70k+ per year is not middle class

Not PP, but I would say upper middle class.

[Anonymous]

I am a little below op but definitely not saving or donating as much! I think the difference is the effect of years of OP's high salary. Dh and I have phds so didn't actually have paying jobs until we were almost 30. That made our down payment savings pretty paltry so we ended up with a fixer upper which is a real monkey on our backs. Apart from wishing I had the cash to fully renovate our house tho, I certainly live a charmed life, like op.

[Anonymous]

Anonymous wrote:300k is not scrapping but at the same time, it's not really how I want to live.

I like being able to spend 50k a year or more on travel. I like driving 6 figure cars. I want my kids to go to any college they want. Sue me.

Good for you. But just keep in mind how privileged you are to be able to spend 50K on vacation. $50K is more than 40% of American's annual income.
This means you do indeed have a very easy life (I do too, I'm not faulting you for it). Be very thankful

[Anonymous]

Like OP, we also have a very financially comfortable life(albeit stressfully busy- which we need to work on). HHI about $320K. 4 kids. Lots of savings and disposable income.

Someday I hope to reach a 10% charitable contribution rate (which I think is generous.).

We gave $17,000 last year.
- $8000 to a home for severely disabled people (since our state has cut funding dramatically)
- $3000 to a local food bank, which primarily feeds hungry children
- $3500 to our Church- much of it went towards sister communities in Africa for disease prevention and clean water
- $1000 to a battered woman's shelter.

Besides providing for my family, I feel like the least that I can do with my good fortune is to help others in need.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I see so much confusion on here, and I thought I'd try to clear some stuff up. My central point is that life is easy, downright cushy even, on $300k per year gross income in the DC area. My wife (38) and I (40) raise our two kids (6 and 3) in upper NW DC and our gross income in 2016 was $300k. People who suggest they are scraping by at this income are either deluding you or deluding themselves.

I am happy to answer any questions and dispel any other related myths you may see on DCUM.

Some of our details:
- ~$300k gross income
- $about 70k in total income and payroll taxes
- PITI is about $3500 (we bought a 4 BR house near AU park in 2012 for low $800s. Before that we owned a small condo in Logan Circle)
- Public school (but we did daycare for both kids from 4 months - 3 years)
- I graduated from law school in 2004 with about $150k in student loans. Those are all paid off now.
- We don't do fancy luxury cars, but it's not bargain basement either. The last car we bought was in 2012 and it cost about $30k.
- We eat at nice restaurants weekly, travel several times a year, and buy more consumer goods (clothes for her, gadgets for him) than we probably should
- We save amply $36k per year in the 401k/TSP, $10k per year in the 529s, and $30-40k in the taxable brokerage account. Our savings balances include $750k in retirement accounts, $60k in 529s (kids are still young), and $250k in taxable brokerage accounts.
- We give to charity an amount that I think is generous, about $5k per year usually.

Solid middle class lifestyle

LOL, saving $70k+ per year is not middle class

+1 I really like this thread, because we've now established that those who are "just getting by" at 300K are: 1) sending kids to private schools, 2) have a higher than average number of children , 3) like to drive luxury vehicles or do really expensive travel, 4) have a huge mortgage or 5) incurred major student debt.

[Anonymous]

OP, still really curious about how you can save so much without scrimping at all. What is your monthly take home (after taxes, tsp/401k, health insurance, etc.). And for the TSP/401K, are you doing regular or roth?

[Anonymous]

Anonymous wrote:OP, still really curious about how you can save so much without scrimping at all. What is your monthly take home (after taxes, tsp/401k, health insurance, etc.). And for the TSP/401K, are you doing regular or roth?

I've posted my budget upthread. Take a look. We do traditional 401k/TSP, not Roth.

[Anonymous]

Anonymous wrote:

Anonymous wrote:OP, still really curious about how you can save so much without scrimping at all. What is your monthly take home (after taxes, tsp/401k, health insurance, etc.). And for the TSP/401K, are you doing regular or roth?

I've posted my budget upthread. Take a look. We do traditional 401k/TSP, not Roth.

From what you posted, it looks like you are taking about $15K home a month. That seems pretty high for an annual salary of $300K.

[Anonymous]

Do you only have one cell phone?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:OP, still really curious about how you can save so much without scrimping at all. What is your monthly take home (after taxes, tsp/401k, health insurance, etc.). And for the TSP/401K, are you doing regular or roth?

I've posted my budget upthread. Take a look. We do traditional 401k/TSP, not Roth.

From what you posted, it looks like you are taking about $15K home a month. That seems pretty high for an annual salary of $300K.

Good point. We're a little above $300k and around $14.5 take home each month.