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]yep, let's say it takes you to age 30 to get to $0 net worth (loans education etc) and then 35 to be both maxing out and getting a $20K bonus, and you work 30 years. At 3% real (lower than historical stock market return), you'll accumulate $2.7 million of retirement account. Let's say you buy and maintain a $1mm house at 40 and pay that off over 20 years; it makes a 0% real return.

Guess what? that'll put you in the top 5% of households by wealth in one of the wealthiest countries in the world. https://dqydj.com/retiree-net-worth-retiree-wealth-america/

the 95th percentile has $3.5 million at 65+

You can then move to a nice fully paid for place in a less expensive locale for like $400K, and then have a $3.3 million nut off which you take $130K of incom supplemented by your $40-$70K of social security income, maybe some pension. You won't be a burden to your children for long term care, maybe even pay for your grandchildren's private school/college, give a lot to charity, travel the world a bit, whatever.

[b]The struggle to get there may be harder than Frank Flyover, who may have the same house and car, but the end result is likely to be significantly better. And the advantage over frank flyover and your offspring's advantage over his offspring's will compound over time.[/b]

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This this this this this.  [/quote]

Frank Flyover has had the same quality of life as the $350k earner for the BULK of his life, and will likely continue a similar lifestyle into retirement. He will not need to uproot himself at 66 to a different locale, away from family and friends, to afford to retire comfortably. His children will be eligible for merit aid in college. He himself will be eligible for subsidies, starting with healthcare. [/quote]

Nope.  Frank flyover will have a smaller retirement portfolio and less money considering that many expenses in retirement (food, healthcare, travel) are the same regardless of where you live.

Also no one should count on merit aid!  [/quote]

[b]He will have enough to continue the same lifestyle and as I said likely be eligible for a subsidy on one of the highest expenses, healthcare.[/b] Frank Flyover can also be “rich” in retirement if he moves to a low cost country.

And I misspoke when I said merit aid, meant to say need based aid.

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I'm confused.  Why would a retiree need subsidies for healthcare?  Most just keep working until 65 at least when they are then eligible for Medicare.

You know what a lot of "need based aid" is? LOANS.  And when it doesn't cover everything, some parents take on these things called "Parent Plus Loans."  Bad idea.  But many do it.

If you think earning the national median income (~$60k) in flyover country is so cushy, go ahead and give it a whirl and report back to us.   :roll: [/quote]

Plenty people are forced to retire before being Medicare eligible.

Re LOANS, students with average academics take out loans to go to private colleges that they can't afford. Most State Universities would offer same students grant and need based scholarship packages. In some states like NY, state schools are basically free for anyone with HHI under $150K.

I have a sibling in flyover. He has a really cushy lifestyle, because as an MD he has the coastal salary without the expenses. But many of his friends and neighbors make  $120-$180 and they have a) short commutes b) newer spacious houses c) inexpensive childcare and d) cheaper services costs from lawncare to activities for their kids. I observed that their lifestyles were better than of those making $300K here.

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