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He used bad math. 380k gives you 30k a month gross which is what your mortgage is based off of. Theyre called jumbo loans and yes they will give you a mortgage for this amount because they are historically VERY low risk. The payment isn't 10k, its 7,600 (rounded) plus most likely 30k a year in property tax and I don't even know what insurance would be. Anyone making 360k would be most likely rolling over equity from prior home sales, not graduating med school and immediately going 2 mill in debt.
If jumbos are historically very low risk, why do they come with higher interest rates?
My best friend is a doctor and his wife is also a doctor, and I'm sure they probably make $343k per year (likely more). They live in a nice neighborhood of Denver (Stapleton) and have a nice house but nothing crazy extravagant. They have a Volvo wagon that's about 7 years old and an Acura MDX SUV that they shuttle their kids around in. He's mentioned that they have about $500k in student loan debt between them (med school is expensive!). They still live a nice lifestyle, but not like the Top 1%, that's for sure. They take a couple trips per year, have Season Passes for the ski resorts, and he's got some sweet mountain bikes, but other than going out to eat a lot their lifestyle isn't that much different than mine, and I make about 1/4 of what they do. Perhaps they're just trying to pay off their student loan debt quickly and are saving a huge percentage of their money so they can retire young. Who knows?
Exactly! I'm a physician whose annual income just puts me in the 1%. My town's most famous resident, Warren Buffet, is also in the 1%. But when it comes down to brass tacks, I have far more in common with the lower-paid salaried employees of my hospital, who sit in the 99%, than I do with my fellow 1%er Warren.
Salary is not wealth (although if managed prudently, it can lead to wealth one day).
if i made $380,000 a year in the same town as Warren Buffet, I'd be extremely comfortable. I make substantially less than that combined with my wife, in a NY Metro suburb, and i'm doing fairly well here.
You may have something in common with the 90-99%, but i doubt you have much in common with the 60-90%.
if i made $380,000 a year in the same town as Warren Buffet, I'd be extremely comfortable.
How comfortable would you be on that income with no retirement savings whatsoever, only a small amount of cash savings, pre-existing health conditions which (prior to Obamacare) made purchasing private health insurance all but impossible, and paying down a mortgage-sized student loan as well as home loan? Because that was me for the first half of my career.
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You may have something in common with the 90-99%, but i doubt you have much in common with the 60-90%.
Less so now that Obamacare means I can buy my own health insurance, my student loans are finally gone, and aggressive saving has allowed me to save up enough money for retirement. If things go belly-up for me now, I can just retire early. But only a year or so ago, that was NOT an option. Just like the 60-90%, if I'd lost my job or developed a serious health problem, I would have been screwed, and consequently I didn't sleep much better at night than they did.
If you're depending on a regular paycheck for your survival, you're vulnerable in ways that the truly wealthy are not. THAT is the big difference between folks like Warren Buffett and the bigwig Wall Street financiers and the rest of us.
How comfortable would you be on that income with no retirement savings whatsoever, only a small amount of cash savings, pre-existing health conditions which (prior to Obamacare) made purchasing private health insurance all but impossible, and paying down a mortgage-sized student loan as well as home loan? Because that was me for the first half of my career.
Less so now that Obamacare means I can buy my own health insurance, my student loans are finally gone, and aggressive saving has allowed me to save up enough money for retirement. If things go belly-up for me now, I can just retire early. But only a year or so ago, that was NOT an option. Just like the 60-90%, if I'd lost my job or developed a serious health problem, I would have been screwed, and consequently I didn't sleep much better at night than they did.
If you're depending on a regular paycheck for your survival, you're vulnerable in ways that the truly wealthy are not. THAT is the big difference between folks like Warren Buffett and the bigwig Wall Street financiers and the rest of us.
Perhaps the 1% should be defined after first subtracting student loan interest from income.
Er, no... the 1% need to be defined in terms exclusive of income.
Certainly not the earned portion of their income.
WEALTH. Net Worth. Investment Income.
Why would you exclude earned income?
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