Reply to No savings on a high HHI?

Forum Index » Money and Finances

Reply to "No savings on a high HHI?"

Subject:

Emoticons





More smilies

Text Color: Font: Close Marks

[quote=Anonymous][quote=Anonymous]You could pay off $2 million in 10 years, easy. [b]I could do it in 5 on your HHI.[/b] As I sing to my boys when they whine about stupid shit: "It's a hard knock life, for you..."[/quote]

Really?  You could pay off a $2 million debt in 5 years with a HHI of $500,000?  Do you have a money tree in your backyard?

The net income in those 5 years is $2.5 million.  If your total effective tax rate tax (federal, DC, FICA) is 25% (which is absurdly low) you're down to $2 million right there.

But let's assume that (i) OP put 20% down, reducing her debt to $1.6 million, and (ii) the effective total tax rate is a much more reasonable 30% (still probably a little low, but I'm being generous).  After taxes, you clear $1.75 million, which leavs you with $150,000 spread over five years, or $30,000 per year.  Not happening.  Hell, even if you are only payign the aforementioned 25% in total taxes, you have $400,000 to spend over 5 years, of $80,000 per year, of $6667 per month.  While that's possible, I suppose, it's pretty difficult if you're going to do any saving at all.

Short version - you may be (rightly) proud of your frugality.  But don't post stupid shit, especially when it encourages OP that she's doign fine.  She's not - her family is overextended.  [/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