Middle class professionals: tell me about your finances

[Anonymous]

Anonymous wrote:

Anonymous wrote:Middle class= 57K-91K a year.

None of you are middle class.

What two income family of "professionals" (to me, meaning having a college degree and working in a job that is not working class/blue collar) in the DC area make this?

There is a flaw in the question. In this pricey area where professionals are paid more and many families have two earners, 91K is going to exclude a lot of people. OP should have put the HHI in the subject, but as we are seeing, HHI is useless if you have 700-1 million in assets which a few posters do.

When DH and I got married a few years ago we were making $93k combined. Both of us have college degrees - he has a master’s too. Not everyone making lawyer or consultant salaries.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Middle class= 57K-91K a year.

None of you are middle class.

What two income family of "professionals" (to me, meaning having a college degree and working in a job that is not working class/blue collar) in the DC area make this?

There is a flaw in the question. In this pricey area where professionals are paid more and many families have two earners, 91K is going to exclude a lot of people. OP should have put the HHI in the subject, but as we are seeing, HHI is useless if you have 700-1 million in assets which a few posters do.

When DH and I got married a few years ago we were making $93k combined. Both of us have college degrees - he has a master’s too. Not everyone making lawyer or consultant salaries.

Right, but according to the poster I responded to that you make you not eligible for this thread. Plus, most people when they are young don't have a ton of retirement and before kids don't have 529s which people are posting about. What is your situation now? Still at 93K? I'm betting above.

We are hardly consultants or lawyers but two fed worker "professionals" can easily hit well over 91K, especially by the time they have a couple of kids (OP specified family of four as an example so safe to assume, given this is a parenting web site, the target audience is families).

Anyway, the question was flawed. OP should have been more specific and not used the term middle class which is loaded.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Middle class= 57K-91K a year.

None of you are middle class.

What two income family of "professionals" (to me, meaning having a college degree and working in a job that is not working class/blue collar) in the DC area make this?

There is a flaw in the question. In this pricey area where professionals are paid more and many families have two earners, 91K is going to exclude a lot of people. OP should have put the HHI in the subject, but as we are seeing, HHI is useless if you have 700-1 million in assets which a few posters do.

When DH and I got married a few years ago we were making $93k combined. Both of us have college degrees - he has a master’s too. Not everyone making lawyer or consultant salaries.

$130k now, but still feels very middle class.

Right, but according to the poster I responded to that you make you not eligible for this thread. Plus, most people when they are young don't have a ton of retirement and before kids don't have 529s which people are posting about. What is your situation now? Still at 93K? I'm betting above.

We are hardly consultants or lawyers but two fed worker "professionals" can easily hit well over 91K, especially by the time they have a couple of kids (OP specified family of four as an example so safe to assume, given this is a parenting web site, the target audience is families).

Anyway, the question was flawed. OP should have been more specific and not used the term middle class which is loaded.

[Anonymous]

all of you can 'feel middle class' and say this area is 'expensive' and all the other things you wring your hands with but you are not middle class. You are earning more than 96% of the American population.

Get over yourselves and acknowledge your priviledge.

[Anonymous]

Anonymous wrote:OP here. Thanks for the replies. I do agree that middle class for purposes of this discussion on this board should be around $170k-$220k for a family of 4.

Ok, we make $225k as a family of 4, so I guess I'll chime in, particularly since as dual feds we pretty much will not make much more going forward.

35/37, 2 kids. One in school, one in $2k/month daycare.

We max 2 TSPs and have since 2011. I once had a manager early on tell me to absolutely put in the minimum to get the full match and to increase my contribution with every step, COL, and promotion until I hit the max. That took 5 years for me and 6 for H to do. But I came in as a lawyer so earned more. We have just over $600k combined in TSPs.

We have $50k in liquid cash.

Another $30k invested in stocks.

We put $4k/year/child in 529s. Balances are about $30k for our oldest, $14k for our toddler.

Roughly $400k in equity in our house, but we owe quite a bit on it.

I owe $50k in student loans still at $350/month, 2.1% interest. I will pay this off in 16 more years, ha. Likely after my first child is already done with college.

[Anonymous]

We are 45/53 and now make 255k/combined--- we broke 200k about 5 years ago when DH got a new job and went from 85 to 130,which allowed us to start saving more aggressively.

we have a 650k mortgage (ouch) and 30-35k/year child care costs (includes DH's oldest child's tuition).


I have 250k in retirement; 125k in investment account. DH has 350k in retirement and we jointly have 175k in investment from sale of home. We have about another 200k in equity in our current home.

Kids (elementary) have college funds, which get a combined 18k/year (12k each from grandparents and 6k from us). by the time they get to college, should have around 300k/each, I guess--unless grandparents kick the bucket or change their tune.

I have no idea if this is good, bad or okay for us the future.

I feel like we are behind on retirement. I started my first living wage job at almost 30 (when I finished a phd program and then post doc). DH started late because he was financially irresponsible before we met and barely saved for retirement. Once married, I insisted that he max out his retirement....and when our salaries rose, I then maxed mine. We continue to max ours and will do so until retirement.

Given our salaries, I think we could do a *much* better job of saving--we travel, eat out, spend $ on things we don't need. I feel like we need some financial discipline. DH grew up with no money, his parents are old and broke (we support them partially) and he makes grand gestures0=--insists on taking everyone (if we go out with others) to dinner and paying 400$ for example. I grew up wealthier, but we were pretty frugal.

[Anonymous]

Anonymous wrote:

Anonymous wrote:OP here. Thanks for the replies. I do agree that middle class for purposes of this discussion on this board should be around $170k-$220k for a family of 4.

Ok, we make $225k as a family of 4, so I guess I'll chime in, particularly since as dual feds we pretty much will not make much more going forward.

35/37, 2 kids. One in school, one in $2k/month daycare.

We max 2 TSPs and have since 2011. I once had a manager early on tell me to absolutely put in the minimum to get the full match and to increase my contribution with every step, COL, and promotion until I hit the max. That took 5 years for me and 6 for H to do. But I came in as a lawyer so earned more. We have just over $600k combined in TSPs.

We have $50k in liquid cash.

Another $30k invested in stocks.

We put $4k/year/child in 529s. Balances are about $30k for our oldest, $14k for our toddler.

Roughly $400k in equity in our house, but we owe quite a bit on it.

I owe $50k in student loans still at $350/month, 2.1% interest. I will pay this off in 16 more years, ha. Likely after my first child is already done with college.

How much do you owe on it?

[Anonymous]

Anonymous wrote:We are 45/53 and now make 255k/combined--- we broke 200k about 5 years ago when DH got a new job and went from 85 to 130,which allowed us to start saving more aggressively.

we have a 650k mortgage (ouch) and 30-35k/year child care costs (includes DH's oldest child's tuition).


I have 250k in retirement; 125k in investment account. DH has 350k in retirement and we jointly have 175k in investment from sale of home. We have about another 200k in equity in our current home.

Kids (elementary) have college funds, which get a combined 18k/year (12k each from grandparents and 6k from us). by the time they get to college, should have around 300k/each, I guess--unless grandparents kick the bucket or change their tune.

I have no idea if this is good, bad or okay for us the future.

I feel like we are behind on retirement. I started my first living wage job at almost 30 (when I finished a phd program and then post doc). DH started late because he was financially irresponsible before we met and barely saved for retirement. Once married, I insisted that he max out his retirement....and when our salaries rose, I then maxed mine. We continue to max ours and will do so until retirement.

Given our salaries, I think we could do a *much* better job of saving--we travel, eat out, spend $ on things we don't need. I feel like we need some financial discipline. DH grew up with no money, his parents are old and broke (we support them partially) and he makes grand gestures0=--insists on taking everyone (if we go out with others) to dinner and paying 400$ for example. I grew up wealthier, but we were pretty frugal.

I could not live with that. It would drive me crazy.

Is DH's child in college?

[Anonymous]

Anonymous wrote:We are 45/53 and now make 255k/combined--- we broke 200k about 5 years ago when DH got a new job and went from 85 to 130,which allowed us to start saving more aggressively.

we have a 650k mortgage (ouch) and 30-35k/year child care costs (includes DH's oldest child's tuition).


I have 250k in retirement; 125k in investment account. DH has 350k in retirement and we jointly have 175k in investment from sale of home. We have about another 200k in equity in our current home.

Kids (elementary) have college funds, which get a combined 18k/year (12k each from grandparents and 6k from us). by the time they get to college, should have around 300k/each, I guess--unless grandparents kick the bucket or change their tune.

I have no idea if this is good, bad or okay for us the future.

I feel like we are behind on retirement. I started my first living wage job at almost 30 (when I finished a phd program and then post doc). DH started late because he was financially irresponsible before we met and barely saved for retirement. Once married, I insisted that he max out his retirement....and when our salaries rose, I then maxed mine. We continue to max ours and will do so until retirement.

Given our salaries, I think we could do a *much* better job of saving--we travel, eat out, spend $ on things we don't need. I feel like we need some financial discipline. DH grew up with no money, his parents are old and broke (we support them partially) and he makes grand gestures0=--insists on taking everyone (if we go out with others) to dinner and paying 400$ for example. I grew up wealthier, but we were pretty frugal.

Judge Good Sense in on your side. Your hubby's wrong. Dead wrong.

You should save a lot more. A lot. Your concern is totally valid.

[Anonymous]

Hhi $270k. 49 and 51 both professionals. Kids just finished college...one private, the other public. Did not do 529 so paid full out of pocket for both. 401k savings about $400k but both have nice defined benefit plans (hence the low 401k balance). Currently both now maxing out at $24500 401k. Have about $800k “net” in RE and stock portfolio. Home equity about $1.5m (we like nice homes) on track to pay off mortgage in 10 years. Defined benefit for both kicks in next 5-8 years, total est $150k per year.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:OP here. Thanks for the replies. I do agree that middle class for purposes of this discussion on this board should be around $170k-$220k for a family of 4.

Ok, we make $225k as a family of 4, so I guess I'll chime in, particularly since as dual feds we pretty much will not make much more going forward.

35/37, 2 kids. One in school, one in $2k/month daycare.

We max 2 TSPs and have since 2011. I once had a manager early on tell me to absolutely put in the minimum to get the full match and to increase my contribution with every step, COL, and promotion until I hit the max. That took 5 years for me and 6 for H to do. But I came in as a lawyer so earned more. We have just over $600k combined in TSPs.

We have $50k in liquid cash.

Another $30k invested in stocks.

We put $4k/year/child in 529s. Balances are about $30k for our oldest, $14k for our toddler.

Roughly $400k in equity in our house, but we owe quite a bit on it.

I owe $50k in student loans still at $350/month, 2.1% interest. I will pay this off in 16 more years, ha. Likely after my first child is already done with college.

How much do you owe on it?

Around $650k.

[Anonymous]

Anonymous wrote:

Anonymous wrote:We are 45/53 and now make 255k/combined--- we broke 200k about 5 years ago when DH got a new job and went from 85 to 130,which allowed us to start saving more aggressively.

we have a 650k mortgage (ouch) and 30-35k/year child care costs (includes DH's oldest child's tuition).


I have 250k in retirement; 125k in investment account. DH has 350k in retirement and we jointly have 175k in investment from sale of home. We have about another 200k in equity in our current home.

Kids (elementary) have college funds, which get a combined 18k/year (12k each from grandparents and 6k from us). by the time they get to college, should have around 300k/each, I guess--unless grandparents kick the bucket or change their tune.

I have no idea if this is good, bad or okay for us the future.

I feel like we are behind on retirement. I started my first living wage job at almost 30 (when I finished a phd program and then post doc). DH started late because he was financially irresponsible before we met and barely saved for retirement. Once married, I insisted that he max out his retirement....and when our salaries rose, I then maxed mine. We continue to max ours and will do so until retirement.

Given our salaries, I think we could do a *much* better job of saving--we travel, eat out, spend $ on things we don't need. I feel like we need some financial discipline. DH grew up with no money, his parents are old and broke (we support them partially) and he makes grand gestures0=--insists on taking everyone (if we go out with others) to dinner and paying 400$ for example. I grew up wealthier, but we were pretty frugal.

Judge Good Sense in on your side. Your hubby's wrong. Dead wrong.

You should save a lot more. A lot. Your concern is totally valid.

Not sure if you want advice, but I agree your retirement of 600k is about half of the recommended amount for your salaries/age. (50 years: 255k salary x factor of 6.6 = 1.28 million recommended to maintain standard of living after retiring at 65). But if you reduce your expenses, you'll not only save more but also need less. And you've got a great income and the added bonus of ample grandparent gifting for college. Your college savings sound great! 300k investments outside of retirement, great! (Do these include savings/emergency fund? Are you considering these as investments?) Your home equity so-so for your age -- you've got 450k more to pay off with one person likely to retire in 12 years. I would recommend automating more of your savings - yes maxing retirement--but also perhaps a 'pay-off the mortgage at retirement fund' so there's less available funds for for grand gestures.

[Anonymous]

Anonymous wrote:Defined benefit for both kicks in next 5-8 years, total est $150k per year.

This is amazing to have these days!

[Anonymous]

Anonymous wrote:

Anonymous wrote:Defined benefit for both kicks in next 5-8 years, total est $150k per year.

This is amazing to have these days!

Agree....we sacrificed higher earnings elsewhere for the pensions. We are not govt employees. One non profit, the other a large multi-national that offered a great pension when we joined ( but since discontinued it for new hires).

[Anonymous]

37/41, HHI around $200-205k
About $630k left on mortgage with $300,000 in equity
$410 across joint retirement accounts
$55k so far in 529s for a 5 and 2 yr old
$85k in cash... should move some of this to investment accounts but both jobs are only 90% stable at the moment..
No debt other than mortgage.

I feel like we’re doing well. like i alluded, both employers are shifting a bit this year but we work in fields that with ample jobs, so i just hope we’re able to keep a dual income lifestyle and keep saving.

We definitely won’t have any pensions! So envious of that.