3 ms·
have you heard about different cost of living in different places? What if the person plans to fund himself/herself in the retirement and pay for kids college r
by rllearneratwork 5y ago
have you heard about different cost of living in different places?
What if the person plans to fund himself/herself in the retirement and pay for kids college rather than expecting all that "for free" from the government?
- ryandrake 5y agoThere is no metro region on Earth where $1M/year can be considered middle class.
- askafriend 5y agoI'd say in SF, you need 500k to be reasonably middle/upper-middle class if you have kids (let's say 2).
- rllearneratwork 5y ago1M/year is roughly 500K after taxes in Bay Area. Starter house is bad school district (means you need to pay 25K-45K per year per kid for private school) is over 1M.
- ryandrake 5y agoSure, but a 1M mortgage is about 50K a year at today's rates. Let's say 30K for home upkeep, 10K to keep a car on the road, 10K for utilities, 20K for food and dining. So 500K after tax - 90K private school for two kids - 50K mortgage payment - 30K - 10K - 10K - 20K = 290K in totally disposable post-tax income. Still not even remotely close to middle class.
- rllearneratwork 5y agosure 1M is OK in SF Bay area (you need to plan for retirement too). But even based on your calculations suddenly 500K is not enough to allow a middle class lifestyle.
- cycomanic 5y agoA typical multiplier for house price and before tax income is 6. So you are saying a 1M house, but for 1M yearly income we should be taking about 6M house (assuming the spouse is not working). Now I definitely wouldn't call a 6M house middle class.