Reply to Study shows that 350k/year is barely scrapping by as middle class

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]We live in NW DC and this article is basically about us. We are more like $310K a year and I can account for our budget differences in property taxes, childcare, and food. But otherwise it's not that far off from what we spend. Our mortgage payment plus taxes is about the same as the mortgage payment here.

That said, we are 40, keep a liquid cash savings cushion of about 40K, have just shy of 1M in 401k, are on a path to retire around 60 and have about 75% of kids college in the bank by the time they get there. So we're comfortable, but we're driving non-flashy cars, living in a 3 bedroom house, going to public school, and living what's otherwise a pretty non-rich person lifestyle.[/quote]

So what are you spending money on? Vacation, clothes, eating out, activities?

1M retirement savings is good but not where the majority of your money is going.[/quote]

Not PP but I’d assume

- college savings (is over $1k per month per kid)
- childcare (at least 3k per month for 2 kids)
- mortgage for a home where kids can attend public school.

I’m a little bit higher of an income and calculated that 85% of my 450k HHI goes towards [b]savings[/b], taxes, mortgage, [b]college savings[/b] and childcare.  
[/quote]

Savings are not expenses. You may have earmarked that money for a specific purpose, but you did not spend it. It is not gone. You still have that money. [/quote]

So you’re saying that retirement savings aren’t a requirement to be middle class?  You can be middle class and not save for retirement? My definition of middle class is eventually retiring.  [/quote]

The middle class is not saving enough.  So often on DCUM I see the suggestion to “max out your 401k” before anything else.  The middle class is not doing this.  They are probably contributing enough to get the employer match.

So for those that are fretting because they make over $300k but don’t “feel” any different than those making $100k, hang in there. You’ll see the difference in retirement. [b] You’ll have a nice retirement account, were able to pay for college in full, your million dollar house will be paid off and you can cash it out and move somewhere cheaper.[/b]  You probably still won’t feel rich enough for your liking, but compared to the millions of American retirees living on the edge, you’ll be comfortable.  [/quote]

This is very true.  Over 400k HHi and I feel like my entire HHI is going towards taxes, retirement savings, childcare, mortgage.

But I’ll eventually have a fully paid off house in a (hopefully) extremely liquid housing market.  The steep childcare costs will keep me employed at a company that provides a great pension in retirement.  In addition we receive high 401k matches.

So maybe it’s that those at this income level feel like they are living a middle class life NOW.  But in the future  when their kids attend a fully paid for private college without taking loans and they no longer have to pay for a mortgage, childcare or college savings they will feel a lot wealthier. [/quote]

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