Running over the Fiscal Cliff

CrazyPaul said:
No, he already bought the house while he worked.
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then he must have put up a hefty collateral for home mortgage... most likely his own office.

did he have 3 BMWs too?
 
Jiro said:
you forget state tax, social security tax, etc. so if you're making $250,000... it's possibly estimated at around $8,500 a month into your own pocket.

so I don't see how can a person possibly afford a $1 million house and 3 BMWs. it's not impossible and he can do it but to do so... it would be stupidly irresponsible... as what TXGolfer said.
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SS tax is included in FICA (SS + Medicare).

Let up the percent to 50% to 60%.

It will be $125,000 after all taxes, if at 50% or $100,000 after all taxes at 60%.

Your estimate at around $8,500 will be around 60%.
 
Foxrac said:
SS tax is included in FICA (SS + Medicare).

Let up the percent to 50% to 60%.

It will be $125,000 after all taxes, if at 50% or $100,000 after all taxes at 60%.

Your estimate at around $8,500 will be around 60%.
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ah you're right then. depending on how a person does his tax... if he's paying too much to tax... what a poor bastard.
 
Jiro said:
ah you're right then. depending on how a person does his tax... if he's paying too much to tax... what a poor bastard.
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50%, 60% - really a lot, a lot of taxes. :eek3:
 
TXgolfer said:
That kind of thinking is why the middle class remains the middle class. The most basic rule of thumb is that your home mortgage should not exceed household gross income x2
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Oh really, I think it will be x3 or more.
 
Jiro said:
then he must have put up a hefty collateral for home mortgage... most likely his own office.

did he have 3 BMWs too?
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No, he worked for Kaiser (HMO) so he gets free health insurance for himself and his wife. I believe that he has 2 Mercedes. He's filthy rich that he hosted X-mas dinner party for 200 people every year. My daughter just won first prize (raffle ticket), $500 in cash at the party.
 
Foxrac said:
Oh really, I think it will be x3 or more.
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Your thinking of payments. Your payment should not exceed 33% of take home pay. (some say 28%)

What I am talking about is the entire mortgage.

Someone who grosses 250k annually should not borrow more than $500k for a home. (general rule of thumb)
 
CrazyPaul said:
No, he worked for Kaiser (HMO) so he gets free health insurance for himself and his wife. I believe that he has 2 Mercedes. He's filthy rich that he hosted X-mas dinner party for 200 people every year. My daughter just won first prize (raffle ticket), $500 in cash at the party.
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ah. pretty much did not fit your claim.

I would suggest that you redirect your bitterness and jealousy to educating yourself on how to maximize your returns and pay less on taxes. rich people did not become rich because of their mommy and daddy. most rich people are rich because they know money very well and they work daggone hard for it. like I said - plenty plenty plenty of opportunity for ANYBODY to become rich in this country.
 
TXgolfer said:
Your thinking of payments. Your payment should not exceed 33% of take home pay. (some say 28%)

What I am talking about is the entire mortgage.

Someone who grosses 250k annually should not borrow more than $500k for a home. (general rule of thumb)
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Bullshit!
 
TXgolfer said:
Your thinking of payments. Your payment should not exceed 33% of take home pay. (some say 28%)

What I am talking about is the entire mortgage.

Someone who grosses 250k annually should not borrow more than $500k for a home. (general rule of thumb)
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Oh yup, I must thinking about payments because mortgage has a lot of interest, so greater than principal, pick 30 years is much higher than 15 years.

After consideration about taxes, I'm very unsure about consider $250,000 per year as rich, but I felt that rich will be more than $1 million per year. It will be more comfortable in Alabama and Texas but not much enough for NYC.
 
Foxrac said:
Oh yup, I must thinking about payments because mortgage has a lot of interest, so greater than principal, pick 30 years is much higher than 15 years.

After consideration about taxes, I'm very unsure about consider $250,000 per year as rich, but I felt that rich will be more than $1 million per year. It will be more comfortable in Alabama and Texas but not much enough for NYC.
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$250k Is a very comfortable income in the south..... They probably don't worry about paying bills on time or Christmas presents. But far from what I would call rich. Especially is they have a few kids and are saving for college.
 
TXgolfer said:
$250k Is a very comfortable income in the south..... They probably don't worry about paying bills on time or Christmas presents. But far from what I would call rich. Especially is they have a few kids and are saving for college.
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Have you heard about saving bonds?
 
CrazyPaul said:
After 17 years of paying $100 saving bond every month (total $20,400 out of your pocket), you would get $40,800 to pay for college and it's a tax write-off.
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Assuming your math is. correct, that would be a horrible investment and, like you said....still $20,000 out of pocket. And they would be all set for college in their mid 30's.
 
TXgolfer said:
$250k Is a very comfortable income in the south..... They probably don't worry about paying bills on time or Christmas presents. But far from what I would call rich. Especially is they have a few kids and are saving for college.
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Yup, that's true and you can buy a nice house with big yard in the south, especially Texas at cheaper, since Los Angeles and NYC don't have enough space and smaller yard, or none if live in condo or apartment. Someone say that $250,000 is ok for single but struggle for family.

That's true about family cost more, like you say about saving for college. The college is expensive for sure and more than 1/2 freshmen withdrew at end of year. My parent don't saving or helping me for going to college because they have over $100,000 debt, especially a lot of credit card bills.

I think it will be comfortable to consider as rich for multi-millions, multi-billions, like $300 millions, $5 billions.

A lot of taxes are very painful, after look about how bad is percent - 50% to 60%. I don't think that tax increase only will going solve the government debt problem and I feel it will be much impasse.
 
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