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> Together, the couple earn about $350,000 a year — more than six times the national household average. Virginia works in the finance department of Hewlett-Pack

> Together, the couple earn about $350,000 a year — more than six times the national household average. Virginia works in the finance department of Hewlett-Packard in Palo Alto, and Gee was an early employee of a start-up that developed an online auctioning app. > They have wanted to buy nice furniture for the house, but between their mortgage and child care expenses, they don’t think they can afford to buy it all at once. Some of their rooms now sit empty. Gee said that Silicon Valley salaries like theirs sounded like real wealth to the rest of the country, but that here it didn’t always feel that way. I think this does sound like insane money to the rest of the country, and clearly this couple is doing _okay_ if the main money issue is not buying furniture all at once. BUT, with the new talk of raising taxes on $400k/$200k annual income (depending on whether Biden means family or personal income) treats this couple like they're filthy rich.

paulpauper 5y ago
Even adjusting for living expenses, SV engineers have more disposable income than almost everyone else. $200-300k is a lot of money. I have run the numbers and there is almost no way you can not have anything left over unless you have a lot of dependents or are very reckless with money.
- 6gvONxR4sf7o 5y ago
  It’s not just about what money you have left in the short term. Financial insecurity can come from all over. If you’re on the hook for a $2M mortgage but easily paying it, and then suddenly there’s dot com bust or financial collapse or (a pandemic leading to a shift in how we work), then there’s a scary possibility that you’re laid off and won’t find another extremely high paying job, while your house is worth a ton less. You’re left underwater on your fancy house. All those events are highly correlated, making it a real scare. My place is worth a ton less than pre pandemic and I’m very thankful that it’s still worth more than I owe and that my job is secure. Thirty years is a long time for a mortgage, and that leads to a lot of anxiety about long term risks.
dragonwriter 5y ago
> BUT, with the new talk of raising taxes on $400k/$200k annual income (depending on whether Biden means family or personal income) treats this couple like they're filthy rich 97th percentile household income is filthy rich. Now, its true, they are still outside of the capitalist elite — because their cash income comes from work, though they can expect annual gains more than quite a lot of household incomes on their real estate, which will get the same favorable tax treatment when realized as the capitalist elite get on most of their income, so they don't completely miss out on the favors granted to the top. “I traded short term comfort and affordability off to get a shorter commute and higher expected real estate gains over time, so I have to defer a bit of my ability to live like royalty compared to the vast majority of the country on my stratospheric income” is a pretty weird cry for sympathy; on about half that household income in a slightly less expensive part of suburban California, and also very house-heavy, I'd be ashamed to make that cry myself. That ks some serious entitlement and lack of perspective.
jldugger 5y ago
Honestly, we are very well off. Like house poor is a thing but I don't think they pay people who are _bad_ with money 350k a year to work in the finance department. 350k per year -> 29k per month taxes (~30%) -> - 9k per month mortgage pmt -> -10k per month This still leaves 10k per month for living expenses. You might not be able to max out two mega backdoors, depending on corporate match, but it seems like not furnishing the home you bought is more of an optimization choice than a budget constraint.
JMTQp8lwXL 5y ago
$350k household income, after making 401k's and federal/state taxes, is $217k. That's $18k/month. A $2m home at current rates is about $9k mortgage payment. Leaves another $9k for food, utilities, transportation. If either of them loses their job, and it's part of a mass tech layoff, they're hosed.
- foldr 5y ago
  If they had a $600k household income they'd have a more expensive house and exactly the same problem. Anyone who works for a living either has to save a large chunk of their income or risk everything going to pot if they lose their jobs. I can't feel too bad for this couple because – unlike many Americans – they literally could save half their take home income and still live comfortable lives by most people's standards. They don't need a five bedroom house. They've chosen to take on a certain degree of financial risk by taking on a large mortgage rather than saving.

paulpauper 5y ago

Even adjusting for living expenses, SV engineers have more disposable income than almost everyone else. $200-300k is a lot of money. I have run the numbers and there is almost no way you can not have anything left over unless you have a lot of dependents or are very reckless with money.

6gvONxR4sf7o 5y ago
It’s not just about what money you have left in the short term. Financial insecurity can come from all over. If you’re on the hook for a $2M mortgage but easily paying it, and then suddenly there’s dot com bust or financial collapse or (a pandemic leading to a shift in how we work), then there’s a scary possibility that you’re laid off and won’t find another extremely high paying job, while your house is worth a ton less. You’re left underwater on your fancy house. All those events are highly correlated, making it a real scare. My place is worth a ton less than pre pandemic and I’m very thankful that it’s still worth more than I owe and that my job is secure. Thirty years is a long time for a mortgage, and that leads to a lot of anxiety about long term risks.

dragonwriter 5y ago

> BUT, with the new talk of raising taxes on $400k/$200k annual income (depending on whether Biden means family or personal income) treats this couple like they're filthy rich 97th percentile household income is filthy rich. Now, its true, they are still outside of the capitalist elite — because their cash income comes from work, though they can expect annual gains more than quite a lot of household incomes on their real estate, which will get the same favorable tax treatment when realized as the capitalist elite get on most of their income, so they don't completely miss out on the favors granted to the top. “I traded short term comfort and affordability off to get a shorter commute and higher expected real estate gains over time, so I have to defer a bit of my ability to live like royalty compared to the vast majority of the country on my stratospheric income” is a pretty weird cry for sympathy; on about half that household income in a slightly less expensive part of suburban California, and also very house-heavy, I'd be ashamed to make that cry myself. That ks some serious entitlement and lack of perspective.

jldugger 5y ago

Honestly, we are very well off. Like house poor is a thing but I don't think they pay people who are _bad_ with money 350k a year to work in the finance department. 350k per year -> 29k per month taxes (~30%) -> - 9k per month mortgage pmt -> -10k per month This still leaves 10k per month for living expenses. You might not be able to max out two mega backdoors, depending on corporate match, but it seems like not furnishing the home you bought is more of an optimization choice than a budget constraint.

JMTQp8lwXL 5y ago

$350k household income, after making 401k's and federal/state taxes, is $217k. That's $18k/month. A $2m home at current rates is about $9k mortgage payment. Leaves another $9k for food, utilities, transportation. If either of them loses their job, and it's part of a mass tech layoff, they're hosed.

foldr 5y ago
If they had a $600k household income they'd have a more expensive house and exactly the same problem. Anyone who works for a living either has to save a large chunk of their income or risk everything going to pot if they lose their jobs. I can't feel too bad for this couple because – unlike many Americans – they literally could save half their take home income and still live comfortable lives by most people's standards. They don't need a five bedroom house. They've chosen to take on a certain degree of financial risk by taking on a large mortgage rather than saving.