Reply to Ok can we stop saying $300k is "rich" in DC?

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Reply to "Ok can we stop saying $300k is "rich" in DC?"

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]OMG. So saving $70,000 a year isn't great? That's more than the average family makes! No wonder so many of you think $300,000 is barely middle class. [/quote]

This is why I can't understand families whose gross HHI is $100,000 saying they are quite comfortable. They probably save $15,000 a year if they are frugal. That's not a lot to go towards funding a 30 year retirement.[/quote]
Saving $15k a year will be close to $3 million over 40 years at 6.5% interest (average investment yield over time is more than 10%, so this number is conservative). Sure, $3 million might only be worth $1 million in today's dollars, but that plus SS will still yield them around $70k. That will be fine. (Don't forget that they won't be saving the $15k, so it's almost equivalent to their pre-retirement income.)

[/quote]

Then by this calculation I should be wealthy in retirement, since I save a lot more than $15,000 a year, have no mortgage even now and spend just over $200,000 a year, much of that on kids who will (presumably) be grown and on their own when I retire.[/quote]

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