5 ms·

I feel like being rich is a combination of income and like assets/net worth. Like I know people who make 6 figures+ and live pay check to pay check because the

by sct202 7y ago

I feel like being rich is a combination of income and like assets/net worth. Like I know people who make 6 figures+ and live pay check to pay check because they have a lot of expenses.

lotsofpulp 7y ago
I wouldn't consider myself rich if a health issue can knock my family off course. Which basically means if you can't live off the labor of others, i.e. you own capital that generates cash flow.
- harryh 7y ago
  If you have a high income you can more easily solve this problem with insurance than accumulating a huge amount of capital.
  - metalliqaz 7y ago
    He's talking about not being able to work anymore.
    - harryh 7y ago
      Yes, I know. That is what disability insurance is for.
  - lotsofpulp 7y ago
    Cost of family health insurance is $20k to $25k per year, plus a $13k out of pocket maximum, so annual healthcare costs with insurance can be $40k pre-tax easily. Not including any travel, hotel stays, spouse having to take time off work to take care of you, etc.
- iron0013 7y ago
  If you were living off the labor of others, wouldn't a health issue be able to knock those laborers' families off course?
  - deleted 7y ago
    [deleted]
  - lotsofpulp 7y ago
    Yes, but that is out of my control. I don't see any other option than taxpayer funded healthcare to solve that issue, but I have to play the game by the rules that exist now.
wmil 7y ago
Also there's a huge difference in housing costs within a metro area based on when you arrived. Due to rent control and low construction rates. So a 15 year renter will be locked into low rent rates and have significantly more disposable income at the same salary. Their low rent is a huge asset that isn't traditionally valued. In California there are also limits on property tax increases. A theoretical person in SF who bought a house in 2005 now has very valuable property and low property tax rates, along with the high salary you'd expect from a SF HN reader.

by sct202 7y ago

I feel like being rich is a combination of income and like assets/net worth. Like I know people who make 6 figures+ and live pay check to pay check because they have a lot of expenses.

lotsofpulp 7y ago

I wouldn't consider myself rich if a health issue can knock my family off course. Which basically means if you can't live off the labor of others, i.e. you own capital that generates cash flow.

harryh 7y ago
If you have a high income you can more easily solve this problem with insurance than accumulating a huge amount of capital.
- metalliqaz 7y ago
  He's talking about not being able to work anymore.
  - harryh 7y ago
    Yes, I know. That is what disability insurance is for.
- lotsofpulp 7y ago
  Cost of family health insurance is $20k to $25k per year, plus a $13k out of pocket maximum, so annual healthcare costs with insurance can be $40k pre-tax easily. Not including any travel, hotel stays, spouse having to take time off work to take care of you, etc.
iron0013 7y ago
If you were living off the labor of others, wouldn't a health issue be able to knock those laborers' families off course?
- deleted 7y ago
  [deleted]
- lotsofpulp 7y ago
  Yes, but that is out of my control. I don't see any other option than taxpayer funded healthcare to solve that issue, but I have to play the game by the rules that exist now.

wmil 7y ago

Also there's a huge difference in housing costs within a metro area based on when you arrived. Due to rent control and low construction rates. So a 15 year renter will be locked into low rent rates and have significantly more disposable income at the same salary. Their low rent is a huge asset that isn't traditionally valued. In California there are also limits on property tax increases. A theoretical person in SF who bought a house in 2005 now has very valuable property and low property tax rates, along with the high salary you'd expect from a SF HN reader.