Reply to Growing up in the DC Wealth Bubble

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]I actually think the DMV is more of a middle class bubble than anything.  I grew up in a flyover city and people are WAY more materialistic and spend a lot more.  They live in much nicer houses, drive luxury cars and spend a lot more on vacations and the like.  In dc, so many people with good incomes are living in ugly houses with ikea furniture.  It seems way more middle class here.  A decade ago I was living in a DC starter home whereas my friends from growing up were installing 100k kitchens.  [/quote]

lol

I think you mean we are smarter with our money...[/quote]

I’m not so sure about that.  Not only do a lot of my friends in flyover country spend a lot, but they save a lot.  They have higher earning jobs and way lower housing and childcare costs.  Financially they are much better off and also have a higher quality of life.  [/quote]

As a whole, DC (and the close in suburbs) is very subtle with it's wealth. I manage hundreds of millions in client assets and most are very modest. They live in top areas but in very reasonable homes. I have one client worth 50M + and still lives in the same home they bought 35 years ago in Bethesda. Drive VWs and Toyotas. Most of my clients in the 10 - 20M range have 1-3M homes that are well maintained but not ostentatious. They spend their money on family, travel, education and investments/business ventures.

I also have clients all over the country and those in the Midwest, South, Texas, etc, tend to think they make way more than they actually do. They spend way more on luxuries, fancy hotels, cars, etc. While they still save, they don't view money the same way. They could make 250 - 400k and think they are so rich. [b]Whereas my clients in the DC or NY area could make 1 - 5M [/b]and still say  "we aren't rich."

Part of it is, there is so much money here, that people compare themselves to everyone else. For example, one could live in a 3M house in Wesley Heights and their neighbor's 14M house makes them feel "average."

[/quote]

I think it’s weird you put DC and NY in the same category in terms of wealth.  There is just so much more money in NY.  DC is a company town.  There are some high earners, yes, but nothing like the high earners in other US cities.  [/quote]

I have clients in DC that consistently pull in 5-10M/yr as non-business owners. I also have clients in NYC in similar roles that make the exact same. It's all your circle. There are also 10x the amount of people in NYC. Most of my friends in DC make way more than those in NYC and have way more family wealth. Again, all relative. [/quote]

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