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Some of the lowest net worth people compared to expectancy are people in the medical field - people who make upwards of half a million per year. The problem is many want the lifestyle of a millionaire while just being a high income earner with negative or low net worth.
If there's a job that has a high lifestyle expectancy (politicians, lawyers, stock brokers, etc), you can expect that most of them end up pretty broke by retirement age (sans high level politicians usually) and hardly better off than someone who make $50k a year but lived a frugal lifestyle and saved 20% of their income and invested it in one way or another.
Read the book "The Millionaire Next Door". It will surprise you that many millionaires don't look anything like what you'd expect. It's usually the people who look like what society thinks a millionaire should look like who are actually barely at break even or in debt more often than not.
Since the taxpayers will pay his salary, I think this information needs to be exposed. What if he declares bankruptcy? Sounds like this guy doesn't know anything about finances except spending
His wife apparently works as a Town manager and makes $66k. His current salary is apparently ~$220k. So they make combined $300k and have savings of $50k?
Goes to show you that beyond a certain threshold, it is not about how much you make, it is about how much you spend.
He is 53, so I assume his wife is about that age, too.
But I guess if you have a for life position and a pension, you can live paycheck to paycheck
He has a retirement account worth over half a million dollars that is not included in the disclosure, nor is the value of his personal residence in Chevy Chase, which is probably worth a boatload. And it's possible he could also have a significant cache of hard assets that are off the books as well.
I am sure he is ok and will do just fine. Judges are cut from a different cloth than people like Trump and Romney. The guy is an intellectual. Money is secondary.
His wife apparently works as a Town manager and makes $66k. His current salary is apparently ~$220k. So they make combined $300k and have savings of $50k?
Goes to show you that beyond a certain threshold, it is not about how much you make, it is about how much you spend.
He is 53, so I assume his wife is about that age, too.
But I guess if you have a for life position and a pension, you can live paycheck to paycheck
Not according the article.
Half million in pension, reportedly, just not disclosed as it is not required to be. It's surprisingly low but then a lot of justices had successful private sector careers before they worked for the government. Public sector doesn't pay well, so it's not that surprising he's not sitting on millions of assets that have to be disclosed.
Could be worse. Sitting debt free sans mortgage with a $500,000 pension isn't awful at 53. Not sure what the disclosure requirements were for 2017, but they can't be that high if it had to be reported in 2016 and didn't in 2017.
Some of the lowest net worth people compared to expectancy are people in the medical field - people who make upwards of half a million per year. The problem is many want the lifestyle of a millionaire while just being a high income earner with negative or low net worth.
If there's a job that has a high lifestyle expectancy (politicians, lawyers, stock brokers, etc), you can expect that most of them end up pretty broke by retirement age (sans high level politicians usually) and hardly better off than someone who make $50k a year but lived a frugal lifestyle and saved 20% of their income and invested it in one way or another.
Read the book "The Millionaire Next Door". It will surprise you that many millionaires don't look anything like what you'd expect. It's usually the people who look like what society thinks a millionaire should look like who are actually barely at break even or in debt more often than not.
You hit the nail on the head. The problem is that while Kavanaugh has a pretty good income by most people's standards - he runs in professional and social circles with people who have a lot more income and net worth than him (being on a government salary as a judge). So he's likely spending a lot to "keep up with the Joneses" - such as for baseball season tickets. Usually a lot of these government judges and lawyers will alternate private practice with their government jobs so they can have a higher income over time, but Kavanaugh apparantly has not spent a lot of time working at a private sector firm.
He has a Thrift Savings Plan loan. That is a loan against his own money in a TSP account. The financial disclosure was for a federal judge. Federal employees do NOT have to declare all things, only the things that the government does not have better records of than the employee or that could not be gotten by ill gain. Things like a Thrift Savings Plan account balance the federal government does not make employees declare--that money is well tracked and from a government salary.
Since he has a TSP loan, that means that he MUST also have a TSP account. And you can NOT borrow all the money in your account--only the part you put in up to limits. You can NOT borrow the matching part or proceeds from investing the matching part.
Plus for tax benefits folks with higher salaries generally invest the maximum allowed in these accounts.
Regular government employees at the GS-12/13 level are carrying balances in their accounts of $900k to a million dollars.
With his salary, I would expect a balance of $1.5-2 million in his TSP account. And yes, people borrow this money because you are paying it back to yourself. The interest you pay on the loan goes right back into your own account. Plus, depending on what the loan was for, that interest may be tax deductible. Double win!
His wife apparently works as a Town manager and makes $66k. His current salary is apparently ~$220k. So they make combined $300k and have savings of $50k?
Goes to show you that beyond a certain threshold, it is not about how much you make, it is about how much you spend.
He is 53, so I assume his wife is about that age, too.
But I guess if you have a for life position and a pension, you can live paycheck to paycheck
We don't know their savings. We'd need to break into their safe in order to fully know.
If they have good pensions, they'll be just fine. No worries here
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