Anonymous
03/19/2018 17:06
Subject: If you make 500-600k range and are married with kids
No mortgage.
Property taxes are ~ 1k a month.
529 savings ~ 3750
I think we spend 200k and save the rest
Property taxes are ~ 1k a month.
529 savings ~ 3750
I think we spend 200k and save the rest
Anonymous
03/19/2018 16:57
Subject: Re:If you make 500-600k range and are married with kids
$550K HHI including bonuses and RSU.
Savings after tax- $160k
Savings after tax- $160k
Anonymous
03/19/2018 15:37
Subject: If you make 500-600k range and are married with kids
We are in the $500k HHI range and paid off our mortgage this year on our $600k house. Still can't quite believe that we are completely debt free. It feels pretty amazing and unbelievably freeing. It may not have been the best purely financial decision, but worth it to us to have the peace of mind that he house belongs not to a bank, but us. Even if the market crashes at least we have a roof over our heads that no one can take away.
Anonymous
03/19/2018 15:31
Subject: If you make 500-600k range and are married with kids
Anonymous wrote:Anonymous wrote:We don't have a mortgage. Why do so many with such high incomes have a mortgage?
Just answering for myself here -- my mortgage is at 3.5% fixed interest. When you account for the mortgage interest deduction at my tax bracket, the interest rate is more like 2.4%.
Instead of using my excess funds to pay down this debt (and lock in a 2.4% real return), I have chosen (over the last 14 years or so since I took out a mortgage) to shove all of my excess funds into the stock market. It's beaten 2.4% by quite a wide margin.
I am focused on building wealth, not just eliminating debt.
+1
This is how the rich got that way and how they get richer. Take heed.
Anonymous
03/19/2018 14:08
Subject: If you make 500-600k range and are married with kids
Anonymous wrote:Anonymous wrote:We don't have a mortgage. Why do so many with such high incomes have a mortgage?
+1
A lot of Americans think in terms of how much minimum payment they can afford. Like, the most minimum payment I can afford on my house, car, etc. they don't think of the big picture. This sort of thinking reaches into even the upper income people.
I consider us pretty frugal. We "only" make $300k and the PITI on our $700k house is $3600/months on a 15 year mortgage at 2.5%. We have 13 years left and will be 50 when its paid off. Even if our income suddenly rises to $500k (unlikely but not impossible) we would not accelerate our mortgage. The rate is too good and it will already be paid off well before retirement. Any extra funds would go straight to savings/investments.
Anonymous
03/19/2018 13:57
Subject: If you make 500-600k range and are married with kids
Anonymous wrote:We don't have a mortgage. Why do so many with such high incomes have a mortgage?[/quote
Our mortgage interest rate is low so we are putting more into investments. Much better return.
Anonymous
03/19/2018 13:57
Subject: Re:If you make 500-600k range and are married with kids
We are only at 450k but I will play!
Salaries $375k
Bonus ~75k (save vast majority)
Takehome monthly is around $16k:
Brokerage $6k
Mortgage $3.5
Daycare $2k
Bills $1k
Food, alcohol, dining out $3k
Other $500
We use “extra” paychecks for clothing and vacations. Those total around 20k per year. No car loans or leases.
Salaries $375k
Bonus ~75k (save vast majority)
Takehome monthly is around $16k:
Brokerage $6k
Mortgage $3.5
Daycare $2k
Bills $1k
Food, alcohol, dining out $3k
Other $500
We use “extra” paychecks for clothing and vacations. Those total around 20k per year. No car loans or leases.
Anonymous
03/19/2018 13:49
Subject: If you make 500-600k range and are married with kids
Anonymous wrote:We don't have a mortgage. Why do so many with such high incomes have a mortgage?
Just answering for myself here -- my mortgage is at 3.5% fixed interest. When you account for the mortgage interest deduction at my tax bracket, the interest rate is more like 2.4%.
Instead of using my excess funds to pay down this debt (and lock in a 2.4% real return), I have chosen (over the last 14 years or so since I took out a mortgage) to shove all of my excess funds into the stock market. It's beaten 2.4% by quite a wide margin.
I am focused on building wealth, not just eliminating debt.
Anonymous
03/19/2018 13:49
Subject: If you make 500-600k range and are married with kids
Mortgage $2800 PITI
No student loans or daycare expenses. Public school and cars are paid for.
529s have $150k each in them. We’ll pay for anything over that out of pocket.
HHI is 600k this year.
No student loans or daycare expenses. Public school and cars are paid for.
529s have $150k each in them. We’ll pay for anything over that out of pocket.
HHI is 600k this year.
Anonymous
03/19/2018 13:37
Subject: If you make 500-600k range and are married with kids
Anonymous wrote:We don't have a mortgage. Why do so many with such high incomes have a mortgage?
+1
A lot of Americans think in terms of how much minimum payment they can afford. Like, the most minimum payment I can afford on my house, car, etc. they don't think of the big picture. This sort of thinking reaches into even the upper income people.
Anonymous
03/19/2018 13:31
Subject: If you make 500-600k range and are married with kids
We don't have a mortgage. Why do so many with such high incomes have a mortgage?
Anonymous
03/19/2018 13:27
Subject: Re:If you make 500-600k range and are married with kids
For us, little changed between $200k and $500K. We just saved more for the exit strategy and donated more.
Anonymous
03/19/2018 11:06
Subject: Re:If you make 500-600k range and are married with kids
-Mortgage (PITI) -$5700 a month
-Daycare (for one, having #2 in the summer) - $1200 plus $400 a month for her after daycare nanny who picks her up M-Tr, so $1600 in childcare (still way less than a full time nanny would be)
-Lease on two luxury cars (I know, I know) - $1200
-529 - $1000 a month for 2 year old, will do same for #2
-Max retirement, $2500 a month into a post-tax brokerage account, healthy savings
-Lot of pick up meals from Whole Foods, never think about cost of groceries or other things like Starbucks or lunches during the work week, go out on a date night usually once a week
It's a good life!
-Daycare (for one, having #2 in the summer) - $1200 plus $400 a month for her after daycare nanny who picks her up M-Tr, so $1600 in childcare (still way less than a full time nanny would be)
-Lease on two luxury cars (I know, I know) - $1200
-529 - $1000 a month for 2 year old, will do same for #2
-Max retirement, $2500 a month into a post-tax brokerage account, healthy savings
-Lot of pick up meals from Whole Foods, never think about cost of groceries or other things like Starbucks or lunches during the work week, go out on a date night usually once a week
It's a good life!
Anonymous
03/19/2018 10:44
Subject: Re:If you make 500-600k range and are married with kids
GROSS = ~$480k
Mortgage (PITI) = $4700
Daycare = $2k (1 kid)
529 savings = $1k (2 kids)
401k savings = $3k (2 401ks)
Other savings = $6k (brokerage)
Mortgage (PITI) = $4700
Daycare = $2k (1 kid)
529 savings = $1k (2 kids)
401k savings = $3k (2 401ks)
Other savings = $6k (brokerage)
Anonymous
03/19/2018 10:08
Subject: If you make 500-600k range and are married with kids
What and how much are your big ticket monthly expenses? Not looking for a detailed budget breakdown, just top line items. Mortgage, tuitions, other? And how much total do you save monthly, roughly including 401k, etc?