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and i forgot about printing money - we can do that as well - Greece cannot. Obviously their are negative impacts to doing that, but the fact remains, we can. that's enough on this from me. you've brought this up numerous times over the past 2-3 years, and it's still not happening. we're simply not Greece, and a comparison of our economy and debt to theirs is laughable to anyone who understands the economics of it. I get your overall point...we have too much debt. But it's not the same problem as those countries are facing.
i appreciate recognition that i brought this up before it became the thing to talk about. i think everyone knows thats where we are headed, even you. but people want to remain positive and ignore reality. the can keeps getting kicked down the road and any changes will be more painful as we wait. im not really sure how you believe we can repay the debt, we would need to double revenue just to break even on current spending. you can afford paying double the taxes you are paying? maybe you can, but can everyone else?
What do you do for a living to have 150k in the bank and be making 6 figures at 26? You are probably too young to be a doctor or lawyer. If you get laid off, are you going to be able to find a similar paying job quickly?
I would look in the 350k range, as I think it is a much safer move. With a 150k down payment, that should be cake to pay off in 7-10 years at the salaries you mentioned. That would not be very realistic on a 500k house with kids imo.
I was thinking the same thing.
No offense to people like OP, but I hate people like OP.
more than half of the 47% are elderly collecting social security or veterans benefits....not employed people with deductions and credits. approximarely 30% of them are employed and have low enough income to have the EITC and child credits wipe out their tax liability.
i guess it depends on your definition of "most", but to me, it would mean more than half, at least....
I have that 61% of the 47% are employed. 22% elderly, 7% disabled.
Oh, and "NewJersey?" -- what's the point of piling money up in the bank? Not getting what you want while having hundreds of thousands in the bank doesn't make any sense.
No offense to people like OP, but I hate people like OP.
Maybe he's a family legacy?
He couldn't have been a highly intelligent and productive person who works hard. A quality person. A valuable person. A rare person. No way. He must have had it handed to him with a silver spoon. That's how all 1 percenters get that way. We know that.
Oh, and "NewJersey?" -- what's the point of piling money up in the bank? Not getting what you want while having hundreds of thousands in the bank doesn't make any sense.
The point is - reducing risk so much that he would have a much easier time of paying off the house. He would have a very small mortgage or a very big emergency fund left over if he waited the 2-3 years. He could probably have the house paid off in 5 or 6 years if he does what I outlined.
The point is - reducing risk so much that he would have a much easier time of paying off the house. He would have a very small mortgage or a very big emergency fund left over if he waited the 2-3 years. He could probably have the house paid off in 5 or 6 years if he does what I outlined.
From OP's very first post in the thread: "With both our incomes we would try to pay this off in 7-10 years"
He couldn't have been a highly intelligent and productive person who works hard. A quality person. A valuable person. A rare person. No way. He must have had it handed to him with a silver spoon. That's how all 1 percenters get that way. We know that.
I believe that the question wasn't "how could a person do that?" but rather how OP has managed to save so much by age 26. Given his salary, it seems likely that he's either a college grad or a highly skilled tradesman, both of which would have taken several years of no/low earning. Say he graduated at age 22, he's been working for ~4 years. He likely didn't start out making $100K, given his assumptions about yearly raises. Say he's made 350K gross over the 4 years--what's that in net dollars--*maybe* 250K? Then he's had to have a place to live (maybe with family? but since he's married, not sure), food to eat, a car to drive, gas for the car, utilities, clothing, toiletries, car insurance, etc. I think people are wondering how he's managed to save $150K, plus 40K in his 401K, plus another 50K in stocks, in that short a time, since that seems as if it would be literally every penny he's earned (net) over the entire time he's been working, and then some.
Of course people can be disciplined and save a significant portion of their earnings--I know it firsthand. But saving MORE than you earn? That's a lot harder. (Though I should note that OP has not said anywhere that he's actually saved all this money, just that he *has* the money. It could have been a gift, inheritance, accident settlement, or whatever.)
From OP's very first post in the thread: "With both our incomes we would try to pay this off in 7-10 years"
I'm not using definitive numbers in my examples, so it may be sooner if he thinks he could do it in 7+ years. But my point is most here are telling him it is a risky endeaver to go through with this at this point in his life, or perhaps not do it at all. I'm telling him he can do it with 'a lot less risk' by having a very small mortgage if he waits a 2-3 year time period.
It is just reducing risk primarily, but has an added bonus of saving a ton of money in the next 3 years because of his current lifestyle which he would have to change, if he purchased a house this year.
He couldn't have been a highly intelligent and productive person who works hard. A quality person. A valuable person. A rare person. No way. He must have had it handed to him with a silver spoon. That's how all 1 percenters get that way. We know that.
I'm sure he is hard working and intelligent. And I'm happy for him.
But to be making 100K right out of school (which is what would have needed to have been the situation with the assets he listed) he is very lucky.
I have a lot of friends that graduated from Ivies that weren't even touching that amount. Rest assured, 15 years later, some of them do make that, but it's after many years of experience, or spending money and time on law school or medical school. Rest assured, 15 years later, I still have other hard working intelligent friends who don't touch that amount.
Obviously, I wasn't the only poster who thought that. Money doesn't come easy, even to those that work hard and are intelligent.
Anyhow, on topic, but slightly related...
I'm not sure that if OP gets laid off, he will be able to get another job that pays that much. If he were a doctor, it'd be different because that is the median pay for that level of experience. So, a slightly more affordable house might be more practical.
For all those wondering about my situation. I had a full scholarship through college-hence the 0 debt. I graduated at 21 and started out making 60k. I got my own place right away paying about 1k a month. I paid my way initially with 3k I had saved up from working a summer in college. I waited for 2 years to buy a car so I was able to save up. My wife started working a couple years later as well, but she was only making 15k/year.
I'm not really frugal, I typically buy whatever I want and I support other family members. But, the thing is, I haven't had to make any big purchases. If I buy this house, I would need to cut back on a lot of things.
I made and lost some money in the stock market-I think I'm about even but I don't want to think about it. At one point I lost 40k+. So, I'm obviously not risk averse.
There, now you all know my life story
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(Though I should note that OP has not said anywhere that he's actually saved all this money, just that he *has* the money. It could have been a gift, inheritance, accident settlement, or whatever.)
