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$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. Lea
by 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 agoIf 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.