Reply to Making $500k and not feeling wealthy in NW

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]It's funny that people think that those making 300K or more are just lazying around.

We are constantly working and because of that we have other expensese that need to be paid because we don't have time to do them.

1) Lawn care
2) Nanny
3) Childcare
4) Cleaning

etc...

Once you add all of those things up the lifestyle at 300k is not that comfortable. Maybe once we get into the 5-600k you start experience more disposable income, but at 300k you have to pay for a bunch of stuff you have to outsource.

On top of that around 300k you lose a lot of tax deductions so you are basically in limbo in terms of wreeping the benefits of making more. The tax benefits you lose at 3-400k are the same ones that you lose at 500k and higher.[/quote]

Let's see, if you spent $2000 per year on lawn care, $3000 per year on house cleaning, $50K per year on a nanny (why would you need additional childcare if you have a nanny?!?) that's still only about $55K.  You're saying that taking those expenses out from [b]$300K plus taxes of say $75K[/b], that you cannot otherwise live on $175K per year net.  There are many, many families with HHI under $100K where one or both parents are working 60-80 hours per week just to make ends meet because they have very low salaries.  Those workers have many of the same problems you have, they just have to make more economical choices.  I'm sorry, but if you choose a high end lifestyle and spend all of your money, that doesn't make you more sympathetic.  There are many people who make significantly less than you that have all of the same demands on their time, many of whom have to pick soime of the support that you have and still make ends meet.  We make $200K, both work full-time, still provide for our two children, still get housecleaners, still live in a large house and we can still save for retirement, college, yada yada yada.  And we find ourselves not onloy very comfortable but very lucky instead of overentitled like you.[/quote]

Taxes $75K on $875 a year? Not even in the ball park...[/quote]

what idiots.  The taxes are almost 50% which sucks ass.[/quote]

Federal tax rate doesn't go beyond 39.6% and that's assuming all of your 500k is taxable - a lot of it isn't so your actual tax rate is going to be a lot lower than that. Add in state taxes - 6-10% for VA-MD-DC. Another 6.3% for Social Security, so sure it's possible you're paying 50% in taxes, but honestly if you are, then you're probably not managing your money well. Who really has their actual tax rate at the max amount allowed? No one I know. [/quote]

With federal, state, Medicare surcharge, FICA, etc, we pay close to 50%. We max out 401(k)s, have a mortgage deduction, etc, but with a high income and the AMT, it is close to 50%. It has nothing to do with "managing your money well" and everything to do with not breaking the law and evading taxes. [/quote]

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