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Old 07-28-2020, 05:35 PM
 
352 posts, read 432,884 times
Reputation: 743

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Can your husband work remotely? If so, then your best bet is to stay where you are, negotiate a decent salary and then save to retire. Although 250K total is enough to live in the bay, if you think it's enough to live and retire early, you are sadly mistaken. Especially if you have children. Like someone said, take half of the salary away for taxes (leaves you with 120,000 a year). Then take about another 50,000 away for rent (60,000 if you pay for mortgage, property taxes and house insurance).
Then you are left with $60,000/year (about 5,000/mo) for all other necessities. Def can be done, but not much left for "early retirement". Again, if you have children , they will suck up every penny you have left between day care, feeding, clothing, tutoring, sending to college, etc....
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Old 08-21-2020, 07:18 AM
 
1 posts, read 536 times
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Yes I think this is a good option.
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Old 08-21-2020, 11:39 PM
 
Location: Bay Area, CA
73 posts, read 86,260 times
Reputation: 114
Default Here's the real picture on CA taxes on $250K income

Quote:
Originally Posted by Jane M View Post
Can your husband work remotely? If so, then your best bet is to stay where you are, negotiate a decent salary and then save to retire. Although 250K total is enough to live in the bay, if you think it's enough to live and retire early, you are sadly mistaken. Especially if you have children. Like someone said, take half of the salary away for taxes (leaves you with 120,000 a year). Then take about another 50,000 away for rent (60,000 if you pay for mortgage, property taxes and house insurance).
Then you are left with $60,000/year (about 5,000/mo) for all other necessities. Def can be done, but not much left for "early retirement". Again, if you have children , they will suck up every penny you have left between day care, feeding, clothing, tutoring, sending to college, etc....

Please do not perpetuate the myth of CA income taxes!!!!
Most of the taxes will be Federal and FICA which are the same every where. CA income taxes would be 6% of $250K or $15K!!!! You can see the tax details in the pic attached.

There's not too many places where you can have this level of salaries and opportunities.
Attached Thumbnails
What to consider? Software Engineer-ca-inc-tax-250k-sal.jpg  
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Old 08-22-2020, 01:32 PM
 
352 posts, read 432,884 times
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Quote:
Originally Posted by Semiworker View Post
Please do not perpetuate the myth of CA income taxes!!!!
Most of the taxes will be Federal and FICA which are the same every where. CA income taxes would be 6% of $250K or $15K!!!! You can see the tax details in the pic attached.

There are not too many places where you can have this level of salaries and opportunities.
I am not perpetuating any myth of CA taxes. When I said half of the salary would be consumed by taxes I meant state and federal combined.

Federal taxes on 250K is 35%
State taxes on 250k is 9.3 % (It's 6% if you are married filing jointly, so it probably will apply in this case)

If you wanted, you could also add sales tax on goods and services at 7.25% which takes another chunk out of salary.


I am not a California hater, so chillax.

Last edited by Jane M; 08-22-2020 at 01:43 PM..
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Old 08-22-2020, 01:36 PM
 
4,307 posts, read 6,238,682 times
Reputation: 6097
Quote:
Originally Posted by Jane M View Post
I am not perpetuating any myth of CA taxes. When I said half of the salary would be consumed by taxes I meant state and federal combined.

Federal taxes on 250K is 35%
State taxes on 250k is 9.3 % (It's 6% if you are married filing jointly, so it probably will apply in this case)

If you wanted, you could also add sales tax on goods and services at 7.25% which takes another chunk out of salary.

I am not a California hater, so chillax.
Umm, do you know how the tax system works? These rates aren't applied against your entire income, just your income above a certain level.

Federal - Rate of 35% is only applied on income over $207k
CA - 9.3% rate is only applied on income over $56k

If you are married, filing jointly, these amounts are even higher. This doesn't even take into account deductions (Mortgage, Property Taxes/Insurance, 401k, HSA, Charitable Donations, Child Deductions). Your effective tax rate will be much lower than your top marginal rate.

Your take home pay will not be 50% of your gross income or anywhere near this. It'll be more like 70-75%, depending upon your deductions.
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Old 08-23-2020, 09:34 AM
 
Location: Silicon Valley, CA
13,562 posts, read 10,289,909 times
Reputation: 8247
Quote:
Originally Posted by roadwarrior101 View Post
Umm, do you know how the tax system works? These rates aren't applied against your entire income, just your income above a certain level.

Federal - Rate of 35% is only applied on income over $207k
CA - 9.3% rate is only applied on income over $56k

If you are married, filing jointly, these amounts are even higher. This doesn't even take into account deductions (Mortgage, Property Taxes/Insurance, 401k, HSA, Charitable Donations, Child Deductions). Your effective tax rate will be much lower than your top marginal rate.

Your take home pay will not be 50% of your gross income or anywhere near this. It'll be more like 70-75%, depending upon your deductions.
Good point on explaining the concept of marginal tax rates. Just tired of the ignorance.
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Old 08-29-2020, 12:56 PM
 
Location: the illegal immigrant state
767 posts, read 1,737,735 times
Reputation: 1057
Commuting in and out of Menlo Park will be exhausting for the hubby, as that entire area gets gridlocked. The temptation will be to get housing far from work- drive a little, save a lot?- but don’t do it. He’ll spend long hours at work, and when it’s time to go home, he’ll have to wade through stop n go traffic in nearly any direction.

All the above applies to you as well in whatever housing/job site combination you choose.

Live as close to work as possible, almost no matter how small of an apartment you have to get.

Your income doesn’t matter that much with respect to housing; there is just so little housing here that anything that’s good sells really quickly, faster than you’d think.

You can get a logistics job, though it’ll probably be in the east bay, but that’s not too bad. If you live in Menlo Park then you can go East on the Dumbarton which will be mostly counterflow, then you can head north on I880, but you’ll be able to get only so far north until you hit gridlock.

If you live in MP and are eyeing logistics job on the peninsula, consider Caltrain, and when you shop for employers, see who is close to a Caltrain stop. That, or consider if your potential employer has a coach service. So many do. A mass transit commute from MP northward could be much less exhausting than driving in gridlock.
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Old 08-29-2020, 01:14 PM
 
Location: the illegal immigrant state
767 posts, read 1,737,735 times
Reputation: 1057
Quote:
Originally Posted by roadwarrior101 View Post
Umm, do you know how the tax system works? These rates aren't applied against your entire income, just your income above a certain level.

Federal - Rate of 35% is only applied on income over $207k
CA - 9.3% rate is only applied on income over $56k

If you are married, filing jointly, these amounts are even higher. This doesn't even take into account deductions (Mortgage, Property Taxes/Insurance, 401k, HSA, Charitable Donations, Child Deductions). Your effective tax rate will be much lower than your top marginal rate.

Your take home pay will not be 50% of your gross income or anywhere near this. It'll be more like 70-75%, depending upon your deductions.
This is a really good clarification, but if they won’t own their home and don’t otherwise have much to deduct in comparison to their income, how will (not can) they write off?

Also, if they’re coming from nearly anywhere but NYC, they will be surprised at the many, incremental ways in which they will pay for goods and services, esp in the most expensive locales like Palo Alto and the city, where even gasoline costs more.

We all get nickeled and dimed so hard that we become used to it, but they’re not used to paying so much for everything that they will have to buy.

It’ll probably take them several months of living here before they get a better idea of how much cash will be going out and to what.
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