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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]It is a wonderful salary. I could make this HHI work and meet all the goals for our family - SFH, foreign vacations, socializing, cars, tutors, ECs, cleaning lady, 2 kids college.

- SAHM[/quote]

Where do you live and how much is your mortgage payment? Here's a rough estimate of cost breakdowns for a family of two:

$250,000 Gross Income 
401(k) Deferral– $24,500
All Taxes (~23.7%)– $59,170
Net Take-Home Pay~$166,330
Annual Mortgage Payment (Assume a $600k mortgage @ 6.25%) -  $44,328
Annual College Savings (2 kids)– $30,000

Remaining Cash Flow~$92,002/yr (this would have to cover cars, food, ECs, cleaning lady, vacations, utilities, cell phones, insurance, cable, entertainment, eating out).  I couldn't do it, but admittedly, my kids are in expensive sports, and I like some creature comforts, like getting my hair professionally colored and cut, and going to pilates.  [/quote]

92k for cars, food, ECs, cleaning lady, vacations, and all your other bills doesn't actually sound that hard to me, but I don't go to pilates so maybe that's it.

$15k/yr college savings sounds excessive to me. We do 8-10k per kid and are in great shape right now with kids in late elementary. But also we aren't over-investing in 529s. We will stop contributing once they each hit 150k. We have other savings sprinkled over a variety of vehicles, including treasury bonds, plus we expect to be able to cash flow some college expenses because our house will be paid off long before our kids hit college.

We bought a townhome prior to having kids and paid the mortgage down aggressively so when we sold it after 10 years (at 35 and 32, with two young kids) we had no mortgage. We took the proceeds and put them toward our house. Currently worth 1.2 million, we only have 300k left on the mortgage, currently pay 35k/yr.

So on your budget, assuming other numbers were accurate, we have more like 120k after taxes, retirement, college savings, and mortgage. Maybe I can go to pilates after all!![/quote]

I made a point above about how $250k is actually a fine salary for those of us who have been in the housing market for a while.  But if you're a young couple saving for a down payment and getting a mortgage at current rates, it's tough.

Also, I don't think $150k per kid is going to cut it for college costs, even for in-state tuition, but I hope I am wrong.  We are tarketing $350k per kid before we stop contributions.  We both went to expensive schools, so we feel like we should pay it forward. [/quote]

It’s not the end of the world to have your kids go in state, work a bit through college, and graduate with some student loans. That’s what happened with me and I’m saving enough to maybe cover the whole portion of in state, but maybe not. Thinking you need to save 30k/yr for college is wild [/quote]

It’s not the end of the world, but some of us want to give our kids more, certainly those of us whose parents paid for our college want to pay it forward to our kids. It’s how the rich keep getting richer. [/quote]

Lol the rich do NOT get richer by sending their mediocre kids to mediocre private colleges that cost 90k/yr. It may just be a waste of 400k and then your kid decides to be an instagram influencer or a pro surfer.

The rich get richer by investing capital, utilizing accounting tricks, and paying as little taxes as possible. And you can do that while sending your kids to literally any school or no school at all.

Putting 700k in 529s so your now-pre-teen children can attend "expensive" colleges is not a smart financial move. If you are rich enough, it won't bankrupt you, but it's not clever financial planning. It's actually just weird.

The truly wealthy people I know don't even have 529s. It's for middle class people, like financing a home purchase instead of buying in cash to expedite the sale and then leveraging the house with a HELOC afterwards, like actual rich people do.[/quote]

I'm fine being called names.  My kids can go to whatever school they get into and graduate without debt.  That's what makes me feel good, not your validation. [/quote]

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