Reply to Why is $275k hhi now so poor?

Forum Index » Money and Finances

Reply to "Why is $275k hhi now so poor?"

Subject:

Emoticons





More smilies

Text Color: Font: Close Marks

[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]OP I don’t know what to tell you that you won’t immediately argue w but we are in our late 30s/early 40s, make about 175 HHI and have 2 kids (family of 4), max out 401k, save for our kids’ college, have an large amount in an emergency fund, etc. If you can’t have a nice lifestyle on 275 w no kids you are doing something very wrong. [/quote]

NP. How much do you save for kids college yearly and what is a “large amount” for your emergency fund? Unless you have a paid off home, I can’t imagine maxing out 401k’s on this HHI and being able to substantially contribute to 529 and have a nice lifestyle also. [/quote]

Assuming an effective tax rate of 30%, $175k is still $10k/month. That is plenty to fund a substantial mortgage, a nice lifestyle and still save for college. Many people save for college with the previously allotted daycare money.

What it does not afford is luxury cars or luxury travel. But not having those things does not make one poor. [/quote]

Did you account for maxing the 401k’s in this calculation? And what is a substantial mortgage? In this area 3k is a very normal mortgage so 4-5k minimum would be getting into substantial. If you have 2 kids, you should save at least 500-1000 per month per kid into 529’s to make any kind of dent in college expenses. This leaves 3-4K per month to cover car payments, car insurance, gas, food, classes for kids. They can go into the red really quickly and leaves no money for extra savings. Hardly a nice lifestyle.[/quote]

Options

	Disable HTML in this message
	Disable BB Code in this message
	Disable smilies in this message

Review message

Search Recent Topics Hottest Topics