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Old 04-28-2018, 05:28 PM
 
Location: NYC
11,818 posts, read 7,691,265 times
Reputation: 12811

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When I was making over $300k+/yr I was so overwhelmed with trying to avoid hefty taxation from NYC. You really don't feel well off making that much as my business venture and busy lifestyle really eats you up. I much rather make less and have less stress/work load. The work stress was really taking a toll on me at the time I don't think making that much is worth it unless you have it easy at a cushy corp position like some people do.
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Old 04-28-2018, 05:43 PM
 
3,459 posts, read 1,978,113 times
Reputation: 7848
Quote:
Originally Posted by k374 View Post
Per CNBC "comfortable" middle class lifestyle is many of the major metros requires $300,000/yr..

https://www.cnbc.com/2018/04/27/sam-...00-a-year.html

Seems high, I would say $200,000/yr would do it, anything lower than $200,000/yr and it would not be optimal in terms of raising kids, living in a good area with good schools, saving for retirement and taking the family on a vacation or two a year.
Sure if you live a high falutin' high on the hog lifestyle .

Maybe they figure if you make all that dough that is how you should live.

Common cents ( on purpose) would be better spent reading something about investing all that dough, even if "high middle income".

Eating out, expensive good, but vacations EVERY YEAR AREN'T A REQUIREMENT to be middle class.

I grew up middle class with a father at a fortune top 5 company, and our vacations were camping and visiting grandma in anotger state and the weekend type trips. Or Disney World once every 5 years at grandma's Florida home during Easter, nothing like Hawai'i or Europe every year.
Better to save the money for kids college and retirement than a lavish vacation.

We are lower middle income, work hard for it, and only go on a major vacation once every 5 years or so. We save for it so its paid for when we go. Can't wait to get bavk to Hawai'i in a few years. Europe in 10 years about.

I wonder what the writers lifestyle is like?

If I made that kind of money, coastal living or not, is be rich and retire in 5 years, saving every penny I could.

YRMV.

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Old 04-28-2018, 05:59 PM
 
8,504 posts, read 2,387,119 times
Reputation: 8123
Quote:
Originally Posted by k374 View Post
Per CNBC "comfortable" middle class lifestyle is many of the major metros requires $300,000/yr..

https://www.cnbc.com/2018/04/27/sam-...00-a-year.html

Seems high, I would say $200,000/yr would do it, anything lower than $200,000/yr and it would not be optimal in terms of raising kids, living in a good area with good schools, saving for retirement and taking the family on a vacation or two a year.
All depends on lifestyle.

We had and raised three kids in NJ...outside of Philly. Good schools, semi-rural but close to everything...exactly the type of situation you are describing.

Firstly, this is upper-middle class, not middle. Middle would be smaller towns like Maple Shade, Collingwood, Atco - while Medford and Moorestown would be upper-middle and some upper.

We had a duplex "down the shore" for much of the time. We rented the back unit and used the front.

We sent all three to college and grad school...and even an expensive law school for one. We helped all with their down payments on their first homes.

Now - to qualify this - this was 1982-2002 (in general). But housing prices are about exactly the same now...we just looked at our old house which is listed for exactly what we sold it for in 2004.

Bottom line - we may have started at about 60K in 1982 and made it as high as 140K in the later years - but we owned a mom and pop biz so we did have IRA match and the usual benefits that come with that (company vehicle, etc.).

We are now retired and have absolutely no worries about money. None. The key was investing automatically ($500 a month into Vanguard and IRA and some extra money) over a 30 year period. Do the math. I think we have averaged close to 9% per year over that time period. Also, we slowly built up some value in the business and the real estate (store location), which were sold when we moved on.

Just for giggles, $1,000 a month for 30 years comes to 1.8 MILLION.....of course, one also pays off their house in that time period, meaning another 3-400+K in total value (but you have to live somewhere). Add in the IRA and other stuff.....

300K? I never made 200K in any single year (except the year a business was sold after 20 years, etc.).

It's all a matter of how people spend their money.
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Old 04-28-2018, 07:38 PM
 
Location: Honolulu, HI
4,563 posts, read 1,138,948 times
Reputation: 6523
Excellent click bait article that's generating the page views as expected.

At $300K a year, you can crack a 7 figure net worth with ease. No one on earth would consider that middle class.

Pay me $300K a year, and I'm moving to Beverly Hills with my "middle class income."
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Old 04-28-2018, 09:17 PM
 
6,308 posts, read 4,767,382 times
Reputation: 8437
He's describing, not quite the middle class, but the bottom end of upper middle class living in a high-priced city, and he about gets it right. The main expense is real estate, and at a certain level of professional attainment it simply is not acceptable to send your kids to public school in an average suburb. It has to be an elite or near-elite suburb, or they're going to wind up going to Rutgers (sorry Jerseyites) or Chico State (sorry San Franciscans) and participating in the downward mobility that is so common today. As a parent, you just have to spend the money. Which means you have to make the money.

In San Francisco, which is the exception to everything, $300,000 isn't enough unless you have a huge down payment for a house. Houses in decent areas start around $1.5 million. New York is cheaper.

The alternative is to live in a low-cost area on what you can manage to make. There are good jobs in Chicago where I live, Austin, Charlotte, and Nashville - not so many in Youngstown.
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Old 04-29-2018, 12:13 AM
 
Location: on the wind
4,130 posts, read 1,535,580 times
Reputation: 14724
This thread is one stellar justification to petition C-D for a new Smilie....the animated ROTFLMAO hand-slapping one. Guess I've lived at the poverty level for my adult life if that is considered middle class.
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Old 04-29-2018, 05:52 AM
 
Location: Live in NY State, work in CT
8,830 posts, read 14,234,561 times
Reputation: 3250
Quote:
Originally Posted by James Bond 007 View Post
From the article:

Uh yeah, NY and SF. Probably don't even really need that much in those two cities.
Agreed. I mean 200K is the MEDIAN HH income in the very richest suburbs of those two areas. A lot more people make 100K or less than you think over there and while struggling they are not dying or starvation or living in their cars.
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Old 04-29-2018, 06:21 AM
 
Location: Houston
126 posts, read 46,488 times
Reputation: 399
Maybe you'll need $300,000 per year to live comfortably in Manhattan but not the rest of the country.

I live very well on $70,000 per year in Houston.
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Old 04-29-2018, 08:10 AM
 
8,504 posts, read 2,387,119 times
Reputation: 8123
Quote:
Originally Posted by Larry Siegel View Post

In San Francisco, which is the exception to everything, $300,000 isn't enough unless you have a huge down payment for a house. Houses in decent areas start around $1.5 million. New York is cheaper.
.
My daughter, who could make 3-500K+ (as a top attorney) decided to do public interest law instead and makes peanuts (started at 60K). She bought a house in Oakland (near Emeryville) for 400K, which is now worth 650K. It's a nice 2 Bedroom, one bath on a tiny lot. Of course, it's not a neighborhood that you'd want to send your kids to the local school in.....but keep in mind that SF and the entire Bay Area is known for not being a "family" place. At one time when I checked, the average family size was 1.3

She now, after a lot of years, is up to 110K and lots of benefits (same public interest - save the world org)...and she easily makes it.

As usual, it "depends" on exactly when you enter the housing market and your lifestyle, etc.
For much of her time there she rented a nice apartment in Berkeley and only had a Vespa (good public transit everywhere there and she did Zipcar when she needed a car)...

But, yeah, if you are going to send your kids to 20-30K a year schools and have two or more of them in there at one time....and you want the Audi with options instead of the VW and you go on 10K vacations with the family and everything else...you will need some bucks.

My daughter lives a million dollar lifestyle but she hikes for her leisure time and snowboards with friends (someone else always has a house in Tahoe), etc.
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Old 04-29-2018, 08:22 AM
 
Location: Oregon, formerly Texas
5,242 posts, read 3,393,710 times
Reputation: 8783
As a product of public schools and an average state university, you can do fine with that route.
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