Reply to Considering Transition to a Stay at Home Mom

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]Think hard about whether you are willing to give up your career. Can you go part time?

The nanny isn’t that much on your husband’s salary. [/quote]

If you quit and don’t have to pay the nanny, I bet your household finances change by about $1500 a month. It’s immaterial. [/quote]

If nanny was "full-time" like OP stated, at $25/hr and 40 hour weeks that is $1K/week, so $4K/month.  Not "immaterial"
[/quote]

PP probably means net.  So OP's $150K income is going to be taxed heavily given the DH's $750K income.  Let's say 40% including all payroll taxes takes that $150K down to $90K.  Subtract out $48K per your calculated cost of the nanny leaves OP with $42K net or $3.5K total per month.  Maybe subtract out some costs that are outsourced now that she could do herself and bring that down to $2.5K per month loss of income.  In any event, still immaterial in light of her DH's income from a financial perspective making the big assumption that her DH's job is stable.[/quote]

Now you're overly focused on take home. Leaving the workforce will reduce OP's social security benefits. She'll also lose whatever retirement benefits she's getting from work. Also, with kids in private school, there's aftercare for ~$7k/kid, which is way less than $48k for the nanny. [/quote]

PP here and for sure it's financially better for her to keep working, no argument there.  I'm just saying that given how high her DH's income is the financial impact is going to be immaterial.  Financially speaking she can do whatever she wants.[/quote]

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