5 ms·
Gr8 point. Also, cost of living is not adjusted for in federal taxes especially if one falls into the standard deduction. Living in the bay area as a renter o
by bubbleRefuge 10y ago
Gr8 point. Also, cost of living is not adjusted for in federal taxes especially if one falls into the standard deduction. Living in the bay area as a renter on 125K, you probably end of paying about 20K in Federal taxes and 30K in rent.
- douche 10y agoThat does give you a free-and-clear net income of 75k, which is better than a lot of households make before taxes and housing in other parts of the country.
- dragonwriter 10y agoYeah, $75K is nearly 1.5 times median household income. So its substantially more than most households make.
- odonnellryan 10y agoYeah. Making over $100k is not "roughing it." It's weird to see people say that.
- tostitos1979 10y agoWell .. 18.5K goes into the 401K, leaving 57K. Even if we saved 50% of what we earn, we'll barely be able to save 250K over a decade. Given the pace of house price increases, it seems like a hopeless situation :(
- monknomo 10y agoAt the end of your 40 year career, with your numbers, not accounting for inflation, raises or the potential for investing, you would have $1.14 million in cash and $740k in 401k principal. At the end of most people's career they have social security... I'd call it pretty well off for having done nothing with the money. Retire to Nebraska, live like a king.
- tostitos1979 10y agoToo bad I'm in my late 30s. Education cost a lot of time, money, and made me delay purchasing a house until it was too late.
- monknomo 10y agoMy scenario does not involve a house purchase until you are 60 and can move somewhere where houses are essentially free, like Phoenix or Omaha, or Buffalo or wherever. I guess, tldr; don't give up hope, consider what you are gunning for and remember everywhere but the coasts is dirt cheap.