The greedy rich owe their ill gotten gains to three factors

[DanS]

OK, so let's take my friends who live about a 25 minute commute from the Columbus city hospitals. She is a maternity nurse who makes I would guess $40-50k and commutes 25 minutes each way to one of these city hospitals. He manages the pharmacy at a local fairly sizable drug store and makes maybe $70-80k and commutes about 10 minutes each way. Do these salaries sound about right, Guy? Or am I lowballing it?

[Guynemer]

I honestly wouldn't know, Dan. Sorry, no help. If you think they sound right, I'd trust you.

[chequita guevara]

There's no such thing as a free lunch, Zk.

Society benefits when more people can go to college.

[DanS]

OK, so my friends make total $120k.

Let's assume they set aside $31,000 a year in their 401(k)s to virtually guarantee that they retire rich ($250,000 per annum income in today's dollars). That leaves $89,000.

Let's assume they have $2,000 a month in educational payments. ~ $2,500 of this annually is tax deductable. That leaves $65,000 for spending and $86,500 on a taxable basis.

Let's assume they bought a 4,000 square foot palace and 2 acres for $400,000 on a 6% fixed 30-year, meaning $25,000/yr mortgage, $20,000 of which is tax deductable. That leaves $40,000 for spending and $66,500 on a taxable basis.

Let's assume they are tithe regularly at 5% of gross income. That leaves $34,000 for spending and $60,500 on a taxable basis.

They have 4 children, so that's a $21,000 exemption. That leaves $34,000 for spending and $39,500 on a taxable basis.

Let's say they pay $8,000 in real estate taxes (?), all of which is deductable. That leaves $26,000 for spending and $31,500 on a taxable basis.

Very roughly $4,000 would have gone to federal income taxes, but with the child tax credit, they owe Uncle Sam nothing. Don't know how much the Ohio state income taxes would be, but let's say $2,000. That leaves $24,000 for spending.

So how are you doing on $24,000 for what's left? Food, utilities, cable/internet, cars/gasoline, clothing, home maintenance, home insurance, education, Christmas, incidentals. That place must be a ***** to heat in the winter. Maybe their palace should have been a little smaller.

Edit: Forgot the child tax credit. Amazing that a couple making $120,000 per annum and on their way to being comfortably rich will pay Uncle Sam not a cent.

[Guynemer]

...um...okay? What exactly are you driving at?

[Cort Haus]

Look at the illicit drug market as an example.

It's certainly a good example of how to get rich without bothering to persue your little ABC of virtuous wealth-accumulation.

Fùcking over the world economy and drawing millions in bonuses seems to be the best way though.

[DanS]

...um...okay? What exactly are you driving at?

That this couple will be rich in the future and will be able to live a satisfactory lifestyle in the meantime, and will be able to give money to charity the whole time. They aren't the highest university-educated earners by a wide margin -- they are a little below average according to Jon's Census figures adjusted to today's dollars. They may have times when they feel anything but rich, but it's just a matter of time until they're rolling in it by my measure.

[KrazyHorse]

200k in student debt? Phew, no wonder only the rich (or brightest) people in the US take a shot at university.

When did you stop beating your wife?

US attainment of tertiary education (25-64yrs) 39%

Only countries higher are Japan (40%) and Canada (46%). Depending on the definition of tertiary education, the Canadian numbers may be skewed upward due to the existence of the CEGEP system in Quebec.

Belgium 31%
OECD average 26%

[KrazyHorse]

Poor, ignorant Europeans. I guess you can't blame them for not knowing how to use Google. It's amazing they've learned to use computers at all with education numbers like those.

[ZEE]

i think you guise scared away the OP again

[DinoDoc]

Society benefits when more people can go to college.

What KH said. We have a higher % of college grads than countries you might find more appealing from a socialism pov.

[Jon Miller]

It is nothing like DC. I had a three bedroom apartment in Downtown Norfolk in an area called Freemason that is right by the battleship/Nauticus, a far more expensive ditrict than almost anywhere in Newport News, and it cost us $1400 two years ago. Thats a block away from th Granby Street too, where a good portion of the bar scene is. You can easily get a perfectly safe one bedroom in Hampton or VB for $500-$700, though it won't have all the bells and whistles.

Are you by yourself Jon? If you are then you are most certainly living grand from any students perspective.

Nope, I live with someone else. You can't live by yourself on more than 500$ for a room.

And I couldn't find a one bedroom for 500$ (without moving 30 minutes away into the ****ty parts of newport news) when I was looking 3.5 years ago when I moved down here, definitely can't find one now.

And the standard prices for a 2 bedroom where I live, for a ****y appartment (few bells and whistles) is 1000. My new place is 950 and I am glad to have it because my previous place was 1050 and going up to 1100...

JM

[Jon Miller]

Oh, I will definitely be saving once I graduate. That is just prudent, you need to be prepared for the future/etc.

But I won't focus on saving in order to maximise my wealth at age 65...

And a couple making 120k will be comfortable even with 4 kids (although 4 kids is pretty spendy), they won't be rich or rolling in it though.

JM

[Jon Miller]

And as I pointed out, I lived in CP where there were shootings/etc, and my own area still has shootings occasionally.

My current apartment is, in my opinion, really lacking in shelf space (all my dishes are still packed, I have like one cupbard to use, my roommate who cooks more uses two)... has only the under the sink storage in the bathroom... does have a washer and dryer (really nice, and something that I will be looking for for now on)... has decent closet space but is filled with my books/storage stuff. I am not making full utilization of my room, but if I did move my desk into it, then it would be jammed full. The living room is small enough that my desk dominates it... we don't have a couch/TV in there (we can't afford them) but I would like to have a couch at least, a couch would take up the rest of the space.

JM

[Patroklos]

I don't know Jon, craigslist seems to disagree with you.

http://norfolk.craigslist.org/apa/1100413541.html

Thats a 1024 square foot apartment complex that newish constuction with pool/gym/eveything for $1200, and that is definetly a nicer place that I would be expecting anyone on a student's budget to be splurging on. There are plenty of 2/3 bedroom listings for $800ish. If you are not willing to drive 20-30 minutes then that is a luxury you simply want, not one you need.