{ "media_type": "text", "post_content": "How much money do you need to make a year to afford a $3 million dollar home, pay for 2.5 future children’s private school education, vacation well, and live and retire comfortably?\n\n(I have no students loans or debt and $650k in stocks + a modest amount in 401k. I’m 26.)", "post_id": "5f44354dc67be400220b6e95", "reply_count": 17, "vote_count": 5, "bowl_id": "59064a3cb12379001006592c", "bowl_name": "Personal Investment Chatter" }

How much money do you need to make a year to afford a $3 million dollar home, pay for 2.5 future children’s private school education, vacation well, and live and retire comfortably? (I have no students loans or debt and $650k in stocks + a modest amount in 401k. I’m 26.)

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Wtf is wrong with you?

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Trump university is hiring.

I’ll bite. For a $3MM home, let’s assume a down payment of 20% ($600k), which means you’ll be needing a loan of $2.4MM. Assuming an interest rate of 3.25% and 30-year amortization, your mortgage payment would be ~$10,500/mo. If we factor in taxes (1.2% of cost here in LA) and insurance ($350 PSF replacement cost on let’s say 3,000sqft), that’s an all-in monthly payment of ~$14,000 or $168k/year. If you’re relatively a conservative, you’d be spending only 25% of your gross income on housing, which would put you at a required annual salary of $675k. Now, private school is on average $25k/year per child. So for 2.5 kids (how the f*** do you have 1/2 of a kid?) that’s ~$65k. So let’s just add that to your salary of $675k to a required annual salary of $750k. Even after taxes, you’d have enough to afford the house, the private school, vacations, etc. But honestly, kid. Unless your dad is Bezos or Bill Gates and you work for their non-profits, no not-for-profit organization is going to be paying you (or anybody) a $750k salary. That money is much better suited for the non-profit’s charitable purposes.

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Daycare is 25k a year. Private school is 40k a year.

At least $1M a year.

likehelpful

Marry me

likefunny

It depends. It all comes down to the specifics of your monthly budget and your level of comfort. Things to consider: - how much you put down on the house impacts the monthly mortgage payment and the interest rate you get - state / city income taxes - the more you make the more you pay - property taxes - states without income taxes have higher property taxes - private education costs vary widely from school to school and location to location - I wouldn’t pay to educate the half kid though 😂 - when do you want to retire? - do you want to leave an estate to pass on or just have enough for your needs? - do you expect your SO to work as well? Just a few factors - there are many others I sure people can think of. Once you have more specifics, you create a monthly budget and work backwards from there to determine what your salary should be to support your lifestyle.

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I don’t, unfortunately. I just know this based on life experience. I do my own budget in excel. I’ve had that same workbook going for a decade! You might be able to piece it together. There are tons of mortgage calculators on the internet. So you can plug in different amounts to see what monthly payments would look like. Then research private schools in your area to get a range of costs and use the average. Look up the tax rates where you live and figure that in. Look for other big ticket items like cars and figure in a monthly payment for those.

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All of it.

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OP do you mean $65K in stocks? How tf do you have $650K at 26?

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Damn. In my family we didn't even get birthday money or celebrated Christmas.. That's impressive tho OP.

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