$5 million in the bank -- rich?

[KrazyHorse]

What he's missing is the ability to reasonably project numbers.

Both he and Dan are about as ridiculous right now.

[Dinner]

I'd say rich. Not independently wealthy but they're still in the top 5% of households asset wise so they are rich.

[snoopy369]

You are missing the salary decrease for leaving Chicago.

ACK!

Umm, I thought we were assuming $120k income, living in flyover country?

KH, I don't know that it would be the 'same' lifestyle. You lose a lot of expenses when you have kids, not just gain... you have a lot less leisure time so you spend less on leisure activities. I wouldn't spend nearly as much on gaming, I'm sure, for starters.

[Jon Miller]

5 million is rich, assuming low liabilities

JM

[KrazyHorse]

Yeah, okay snoopy. 4 mouths to take care of = gaming expenses.

[Jon Miller]

BTW, your kids won't get any government help going to school.

If you want them to go to college/etc, I hope you are putting away at least 4k a year to pay college bills. This is probably not enough, btw.

JM

[Jon Miller]

Also, besides eating a lot, needing child care, and paying college... kids also grow!

http://moneycentral.msn.com/articles/family/kids/tlkidscost.asp

That doesn't include college.

JM

[DinoDoc]

God damn, Jon. Where do you expect them to be going? Yale?

[Jon Miller]

Also, besides eating a lot, needing child care, and paying college... kids also grow!

http://moneycentral.msn.com/articles/family/kids/tlkidscost.asp

That doesn't include college. 250k per kid... not that includes quite a bit for housing, but still.

JM

[Jon Miller]

God damn, Jon. Where do you expect them to be going? Yale?

To cover just what the goverrnment won't get them, you need to be able to shell out 40k or so. So that is 160k for 4 kids. Over 40 years, that is 4k per year.

Note that they would still be screwed if they go to a private college, unless they get lots of scholarships.

JM

[DanS]

5 million is rich, assuming low liabilities

JM

Wait a second. In the other thread, you said $5 million wouldn't make you rich.

[Jon Miller]

It wouldn't make you rich if you were 20 and didn't want to work. If you were 70 and going to die in a few yaers? Assuming in the course of your death you didn't have large medical bills? Yeah, that makes you rich.

JM

[Tuberski]

To cover just what the goverrnment won't get them, you need to be able to shell out 40k or so. So that is 160k for 4 kids. Over 40 years, that is 4k per year.

Note that they would still be screwed if they go to a private college, unless they get lots of scholarships.

JM

I wouldn't allow my kids to live with me until 40.

160k over say 20-25 years, maybe.

ACK!

[Jon Miller]

I am assuming, to make it so that you have less to pay at the beginning, that you take out a loan for part of it and are paying it off for a while afterwards.

JM

[snoopy369]

Honestly I took the '4 kids' with a grain of salt... I'm certainly not having 4 kids. Two is a much more realistic number; and at $120k (probably a realistic today-dollars low-end estimate of what the two of us will earn once she graduates and completes her post-doc(s)) taking 1/4 off the top (so 90k afterwards) seems perfectly reasonable to me. I doubt we'll do it, though I wish we would [though we'll be starting in our early 30s, not mid 20s, so we won't have 40 years anyway unless we both work until 70; which we might, I suppose].

I think having 5m in hand at 25 makes you rich, as well. Assuming you have the sort of income that goes with having 5m in hand, anyway.