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Apartments in SF now are $1800 / studio - $2200 / 1br. so... $100k: - $30k taxes - $24k rent - $12k food and misc ------------- $34k $34k is abou

by physcab 12y ago

Apartments in SF now are $1800 / studio - $2200 / 1br. so... $100k: - $30k taxes - $24k rent - $12k food and misc ------------- $34k $34k is about what you have to play with for investing, transportation, entertainment, fitness, saving, student loans, other debt

stevewilhelm 12y ago
Anyone working at a startup should be maxing out their retirement plan contributions: $18,000 for a 401k, $5,500 for an IRA. They are a hedge against startup failure.
- withdavidli 12y ago
  Thought process on this? If a person needs to dip into their retirement plan because a start up fails then they would be penalized, if that's the situation it's better to just keep it in cash.
  - dustcoin 12y ago
    The contributions to a Roth IRA (but not the investment returns) can be withdrawn with no tax penalty, so there isn't much reason not to max it out if possible. Employees should always contribute to a their 401k at least up to the company match, as it is essentially free money.
    - astrange 12y ago
      If you're getting paid at SV salary levels, it's entirely possible you're making too much to be allowed to contribute to a Roth IRA. Some IRA companies will let you do put it into a traditional IRA then do a Roth conversion, but then again some will make you mail them a notarized form every time you want to do that.
getsat 12y ago
1br is around $3,000 now: https://www.rentjungle.com/average-rent-in-san-francisco-rent-trends https://www.rentjungle.com/average-rent-in-san-francisco-ren... 100k = 25% marginal tax rate for Fed, but effective rate of 17.3% + 6.8% State tax rate = 24.13% = $24130 (assuming you are single) $100k: - $24.1k taxes - $36k rent - $12k food and misc ------------- $27.9k So you basically have $2,325 left over after expenses each month to play with.
- samspenc 12y ago
  Make sure to account for medicare and social security. That's an additional $10K-$15K in "expenses".
  - getsat 12y ago
    Good point, thanks!

by physcab 12y ago

stevewilhelm 12y ago

Anyone working at a startup should be maxing out their retirement plan contributions: $18,000 for a 401k, $5,500 for an IRA. They are a hedge against startup failure.

withdavidli 12y ago
Thought process on this? If a person needs to dip into their retirement plan because a start up fails then they would be penalized, if that's the situation it's better to just keep it in cash.
- dustcoin 12y ago
  The contributions to a Roth IRA (but not the investment returns) can be withdrawn with no tax penalty, so there isn't much reason not to max it out if possible. Employees should always contribute to a their 401k at least up to the company match, as it is essentially free money.
  - astrange 12y ago
    If you're getting paid at SV salary levels, it's entirely possible you're making too much to be allowed to contribute to a Roth IRA. Some IRA companies will let you do put it into a traditional IRA then do a Roth conversion, but then again some will make you mail them a notarized form every time you want to do that.

getsat 12y ago

1br is around $3,000 now: https://www.rentjungle.com/average-rent-in-san-francisco-rent-trends https://www.rentjungle.com/average-rent-in-san-francisco-ren... 100k = 25% marginal tax rate for Fed, but effective rate of 17.3% + 6.8% State tax rate = 24.13% = $24130 (assuming you are single) $100k: - $24.1k taxes - $36k rent - $12k food and misc ------------- $27.9k So you basically have $2,325 left over after expenses each month to play with.

samspenc 12y ago
Make sure to account for medicare and social security. That's an additional $10K-$15K in "expenses".
- getsat 12y ago
  Good point, thanks!