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Old 05-02-2018, 05:19 PM
 
4,340 posts, read 4,431,944 times
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Quote:
Originally Posted by bpollen View Post
Oh, I think many do. $300k even in NY is doing well. Not rich. But $300k is not what the average middle class New Yorker earns. (We're talking individuals.) $300k won't get you nearly as much as it would in most other places in the country, for for New York, it gets you quite a bit. I think that $200k is probably closer to being true middle class in NY. That is almost four times higher than the middle class income in many other areas.

But the lifestyle for the middle class person in NY is not as high in some respects, as it is in, say, Iowa. That's part and parcel of living in NY. It doesn't change whether you are middle class or wealthy. It's just that the lifestyle of the middle class in NY may be less.
I think there is a lot of truth to this. It definitely isn't the equivalent of $300k in a place like Kansas City, MO, but it is equivalent to about $150-$160k in KC and I doubt many people in KC would say they are barely middle class if they had a HH income of $160k. Hell, I live in a place with a similar cost of living to KC and even after paying taxes, saving $2k/yr in our kids 529s, paying for daycare, mortgage, and putting away $30k/yr in retirement while living the lifestyle we currently live we could do that on a HH income of ~ $100k/yr. I'd consider the lifestyle we live at the very least middle of the middle class.
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Old 05-02-2018, 08:46 PM
 
7 posts, read 2,628 times
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Quote:
Originally Posted by Larry Siegel View Post
That's due to the politicians, using "middle class" to mean poor (because calling poor people poor apparently insults them).

That is still what middle class really means, but you need $150K a year to live that way. Many people, the top 20% or 25%, do.
The problem is that there are two ways of defining middle class. One way is to use purchasing power, like you're doing above, in which case there is nothing "middle" about it - it takes being in the top 10 or 20 percent of households to afford that "middle class" life. The other way is to use income data to define the statistical middle, which is what politicians are usually doing when they talk about working-poor families as middle class - generally this is done by excluding the top and bottom quintile to define "middle class" by income distribution, which sets the range at about 25K to 125K.
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Old 05-02-2018, 09:02 PM
 
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Quote:
Originally Posted by Colleen272 View Post
The other way is to use income data to define the statistical middle, which is what politicians are usually doing when they talk about working-poor families as middle class - generally this is done by excluding the top and bottom quintile to define "middle class" by income distribution, which sets the range at about 25K to 125K.
That's middle income, which is only very distantly related to middle class. Of course, in this age of unclear communication and words meaning what the speaker wants them to mean, it's not surprising that the two are confused.
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Old 05-03-2018, 06:52 AM
 
Location: Paranoid State
12,685 posts, read 9,443,087 times
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Quote:
Originally Posted by tiltup View Post
I grew up in a family with total NW in your VHNWI category and we had none of the things in your pictures. Some of those boats and houses cost > $10M each. I did go to a private HS school that cost 30K a year with billionaire kids and graduated from a 50k/year private university debt free. Not all HNW families need to display it.
I agree.
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Old 05-03-2018, 01:28 PM
 
Location: Honolulu, HI
4,614 posts, read 1,149,317 times
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Quote:
Originally Posted by tiltup View Post
I grew up in a family with total NW in your VHNWI category and we had none of the things in your pictures. Some of those boats and houses cost > $10M each. I did go to a private HS school that cost 30K a year with billionaire kids and graduated from a 50k/year private university debt free. Not all HNW families need to display it.
Excellent point and Warren Buffet is a perfect example of that. You wouldn’t think for 1 second this guy had money just by looking at him or his house in Nebraska.
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Old 05-03-2018, 01:47 PM
 
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Quote:
Warren Buffet is a perfect example of that.
Buffet also has a $50m house in La Jolla or Malibu, I forget which. The house in Nebraska isn't his only house.
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Old 05-03-2018, 05:55 PM
 
6,308 posts, read 4,772,649 times
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Originally Posted by TheOverdog View Post
Buffet also has a $50m house in La Jolla or Malibu, I forget which. The house in Nebraska isn't his only house.
It's B-U-F-F-E-T-T, it's in Laguna Beach, it cost him $150,000, and it's recently been for sale for $11 million, which is a typical price for oceanfront property in that area. (I wish I had bought it myself!)
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