Scraping by on $500K a year

[jimnyc]

Some changes are in order if you're living paycheck to paycheck when making $500,000 per year, even in costly NYC.


---

Why one couple feels like they're scraping by on $500K a year

I’ve highlighted in a previous article how living off $200,000 a year in an expensive city is really just an average lifestyle. In this article, I’ll discuss how one couple is living paycheck to paycheck while making a combined $500,000 a year. They are a real couple who shared with me their financial details to anonymously share with you. Judging others, after all, is an American pastime!

$500,000 a year or higher is a level which I think is considered rich. Anybody who thinks otherwise has no concept of financial reality. Even the government almost agrees after compromising by raising the income level for when the highest marginal tax bracket kicks in to ~$400,000 from $200,000 back in 2013.

Although making $500,000 a year may sound like a Herculean task, you’ll be surprised to know there are plenty of regular folks who hit the half million mark every year. I literally get e-mails and comments from similar income-earning couples every week asking for financial help. This article will discuss why many folks who earn a large income won’t be retiring any time soon.

.....

A bit of their financial plan:



https://finance.yahoo.com/news/one-c...144630331.html

[gabosaurus]

This topic is absolutely preposterous.
The combined income of my husband and I is not to far off from that of the people in the thread. We live more than comfortably.
My first objection is the amount of tax paid. Obviously this person does not use a financial adviser or a tax professional and does not have any investments outside of 401k. For which he is a massive idiot.
We have very cheap child care. It's called "grandparents."
Next: Three vacations a year. Um.. what family with children does this? We might do one vacation a year. Sometimes none.
BMW and Land Rover? My husband and I both own economy cars. There is no reason to own a status car unless you just want to hang up a sign that says "We are wealthy! Envy us!"
"Children's Lessons" -- HA! What world are they living in? We pay more than that for piano alone.
Student loan debt -- My husband and I both earned academic scholarships. We have no student debt.
We have set aside a fairly massive amount for our daughter's college expenses. It's tax deductible.
Miscellaneous: OK, we go to concerts and sports events. We buy books and music. We pay the lawyers when certain children who will remain nameless do stupid stuff. So I get this.
But still...
Idiots. They deserve to be broke.

[Gunny]

This topic is absolutely preposterous.
The combined income of my husband and I is not to far off from that of the people in the thread. We live more than comfortably.
My first objection is the amount of tax paid. Obviously this person does not use a financial adviser or a tax professional and does not have any investments outside of 401k. For which he is a massive idiot.
We have very cheap child care. It's called "grandparents."
Next: Three vacations a year. Um.. what family with children does this? We might do one vacation a year. Sometimes none.
BMW and Land Rover? My husband and I both own economy cars. There is no reason to own a status car unless you just want to hang up a sign that says "We are wealthy! Envy us!"
"Children's Lessons" -- HA! What world are they living in? We pay more than that for piano alone.
Student loan debt -- My husband and I both earned academic scholarships. We have no student debt.
We have set aside a fairly massive amount for our daughter's college expenses. It's tax deductible.
Miscellaneous: OK, we go to concerts and sports events. We buy books and music. We pay the lawyers when certain children who will remain nameless do stupid stuff. So I get this.
But still...
Idiots. They deserve to be broke.

So do you. Your intelligence level obviously doesn't meet the standard for your pay. I don't get what is so hard to figure out for a delf proclaimed genius as you to figure out clost of living is NOT the same, state by state. I could live like a king on $500K here. I can also rent a place to live for around $7-800. a month. The same place would be $2k a month in NYC and probably just average.

Comparing what you have to others you know nothing about and superimpose your lifestyle on is just plain ignorant. YOUR lack of education and experience is what is preposterous.

[gabosaurus]

Gunny, I was merely responding to the thread. Nothing more.