Reply to Afford $1.8M on 300K?

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]

We are 360k HHI, and our take home pay after maxing 401k, healthcare, 529 etc is lower than yours. Are you sure you are maxing and taking care of your necessities?[/quote]

+1. My take home on $310k is $11k per month.[/quote]

OP here. I do find it wierd that net pay varies so widely across DCUM.  I would say that we have really low medical insurance (<$200 per month, excl HSA). Other than that, I would think 401K ($38K/yr), Federal (24% marginal rate), State (5%), FICA and medicare ($22K) should be similar for everyone making 300Kish in Fairfax (county)?

I would also say that our 529 contributions are only $4K per year since that's the tax-deductible limit.

When we bought our current house at $800K, we made <$200K and thought 4X HHI was crazy.  My guess is the our lifestyle has not crept up at the same rate as our income, so we're still living like we make $200K.

Folks make good points about increase utility expenditures. That might bump our living expenses. [/quote]

It sounds like you are not actually “maxing out” the 529s.  How much do you have saved in those accounts now, and how old are your kids? How much have you saved for retirement?  And how much do you have in other savings?  I agree it doesn’t make financial sense to dump large amounts of money in a bank account earning no interest.  There are many ways to invest your money.

I also agree with pps that your expenses will not stay the same with a house double the size. Everything is more expensive.  Unless you have a huge amount in savings now it seems risky to halt all savings.  Can you compromise, maybe getting a somewhat bigger house but not so much bigger?  [/quote]

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