Search found 1265 matches

by Ron Ronnerson
Mon Sep 16, 2019 11:36 pm
Forum: Personal Finance (Not Investing)
Topic: Bay Area teacher saving half my income – why the doubt? (and asking more questions)
Replies: 352
Views: 13900

Re: Bay Area teacher saving half my income – why the doubt? (and asking more questions)

Bought at a good time and they dont have to save for retirement likes those that dont have a cushy pension. This is not the norm, so I take his situation with a grain of salt and chalk it up to luck and a pension. He also initially stated he saved 50% of his income, which obviously isnt the case at...
by Ron Ronnerson
Mon Sep 16, 2019 10:51 pm
Forum: Personal Finance (Not Investing)
Topic: Bay Area teacher saving half my income – why the doubt? (and asking more questions)
Replies: 352
Views: 13900

Re: Bay Area teacher saving half my income – why the doubt? (and asking more questions)

Through a careful planning and adjustment, OP is able to turn would-be taxes and insurance premiums into significant saving and subsidies. I don't see anything wrong with what OP is doing. Any resentment should be re-directed from OP to somewhere else. Thanks. The way taxes and insurance work can g...
by Ron Ronnerson
Mon Sep 16, 2019 10:34 pm
Forum: Personal Finance (Not Investing)
Topic: Bay Area teacher saving half my income – why the doubt? (and asking more questions)
Replies: 352
Views: 13900

Re: Bay Area teacher saving half my income – why the doubt? (and asking more questions)

Through a careful planning and adjustment, OP is able to turn would-be taxes and insurance premiums into significant saving and subsidies. I don't see anything wrong with what OP is doing. Any resentment should be re-directed from OP to somewhere else. Thanks. The way taxes and insurance work can g...
by Ron Ronnerson
Mon Sep 16, 2019 10:08 pm
Forum: Personal Finance (Not Investing)
Topic: Bay Area teacher saving half my income – why the doubt? (and asking more questions)
Replies: 352
Views: 13900

Re: Bay Area teacher saving half my income – why the doubt? (and asking more questions)

Through a careful planning and adjustment, OP is able to turn would-be taxes and insurance premiums into significant saving and subsidies. I don't see anything wrong with what OP is doing. Any resentment should be re-directed from OP to somewhere else. Thanks. The way taxes and insurance work can g...
by Ron Ronnerson
Mon Sep 16, 2019 9:50 pm
Forum: Personal Finance (Not Investing)
Topic: Bay Area teacher saving half my income – why the doubt? (and asking more questions)
Replies: 352
Views: 13900

Re: Bay Area teacher saving half my income – why the doubt? (and asking more questions)

OP: congrats on one of the most tax-optimized budgets I've ever seen! To be able to save $50k/year and only spend $5k/year on income taxes and health insurance COMBINED is quite remarkable. I can see why your employer elected to not offer employer-subsidized health insurance - just pay out higher s...
by Ron Ronnerson
Mon Sep 16, 2019 9:38 pm
Forum: Personal Finance (Not Investing)
Topic: Bay Area teacher saving half my income – why the doubt? (and asking more questions)
Replies: 352
Views: 13900

Re: Bay Area teacher saving half my income – why the doubt? (and asking more questions)

Through a careful planning and adjustment, OP is able to turn would-be taxes and insurance premiums into significant saving and subsidies. I don't see anything wrong with what OP is doing. Any resentment should be re-directed from OP to somewhere else. Thanks. The way taxes and insurance work can g...
by Ron Ronnerson
Mon Sep 16, 2019 7:58 pm
Forum: Personal Finance (Not Investing)
Topic: Bay Area teacher saving half my income – why the doubt? (and asking more questions)
Replies: 352
Views: 13900

Re: Bay Area teacher saving half my income – why the doubt? (and asking more questions)

Ron, your posts are always inspiring. Living in the bay, I am glad you are able to carve a happy situation here. I am curious how other teachers feel here. In our district elementary, teachers are paid 60-75K + health insurance last I checked. Are teachers in general stressed with overcrowded schoo...
by Ron Ronnerson
Mon Sep 16, 2019 7:34 pm
Forum: Personal Finance (Not Investing)
Topic: Bay Area teacher saving half my income – why the doubt? (and asking more questions)
Replies: 352
Views: 13900

Re: Bay Area teacher saving half my income – why the doubt? (and asking more questions)

Few things seem to get folks riled up as quickly as a content person who tells them how they can also have "enough" if they choose. That's what I see in this thread. Ron Ronnerson, great job on your optimization and your semi stoic outlook toward life. You are an example of the value of the site to...
by Ron Ronnerson
Mon Sep 16, 2019 7:27 pm
Forum: Personal Finance (Not Investing)
Topic: Bay Area teacher saving half my income – why the doubt? (and asking more questions)
Replies: 352
Views: 13900

Re: Bay Area teacher saving half my income – why the doubt? (and asking more questions)

Hmmm interesting. I'm now a state employee in WA with access to a pension, a 403b, a 457b, and backdoor roth IRA. I currently make about $140k. My last job, I made $160k and had no 401k match, but a nonqualified 457 was available and I had the option to bonus quite a bit (up to $75k a year). We're ...
by Ron Ronnerson
Mon Sep 16, 2019 7:16 pm
Forum: Personal Finance (Not Investing)
Topic: Bay Area teacher saving half my income – why the doubt? (and asking more questions)
Replies: 352
Views: 13900

Re: Bay Area teacher saving half my income – why the doubt? (and asking more questions)

Is my income really $125k? What exactly counts as income? There was thread about that a week ago where that very question was posed by someone. I asked the forum if credit card bonuses counted as income there but there wasn't a response. Here is the link: https://www.bogleheads.org/forum/viewtopic....
by Ron Ronnerson
Mon Sep 16, 2019 6:58 pm
Forum: Personal Finance (Not Investing)
Topic: Bay Area teacher saving half my income – why the doubt? (and asking more questions)
Replies: 352
Views: 13900

Re: Bay Area teacher saving half my income – why the doubt? (and asking more questions)

It's a real stretch on your part to assume that the average Joe in California or elsewhere has access to Restricted Stock Units, Employee Stock Purchase Plans, annual bonuses, 401K matches and additional Social Security credits. What is your source for believing that this the case for the average m...
by Ron Ronnerson
Mon Sep 16, 2019 6:53 pm
Forum: Personal Finance (Not Investing)
Topic: Bay Area teacher saving half my income – why the doubt? (and asking more questions)
Replies: 352
Views: 13900

Re: Bay Area teacher saving half my income – why the doubt? (and asking more questions)

Bought at a good time and they dont have to save for retirement likes those that dont have a cushy pension. This is not the norm, so I take his situation with a grain of salt and chalk it up to luck and a pension. He also initially stated he saved 50% of his income, which obviously isnt the case at...
by Ron Ronnerson
Mon Sep 16, 2019 6:46 pm
Forum: Personal Finance (Not Investing)
Topic: Bay Area teacher saving half my income – why the doubt? (and asking more questions)
Replies: 352
Views: 13900

Re: Bay Area teacher saving half my income – why the doubt? (and asking more questions)

Thanks for all the posts today. I'll try to respond to some of them soon. I was never trying to imply that others could do exactly as I have done. We all have different circumstances. I have a lot of tax-deferred space, a pension, job security, and a great schedule. Many people with a similar educat...
by Ron Ronnerson
Mon Sep 16, 2019 1:26 am
Forum: Personal Finance (Not Investing)
Topic: Bay Area teacher saving half my income – why the doubt? (and asking more questions)
Replies: 352
Views: 13900

Re: Bay Area teacher saving half my income – why the doubt? (and asking more questions)

Well, I had no idea this thread would take off like this. I sincerely appreciate your feedback and thoughts. It's the end of my weekend and I must say good night - have to be ready for the kids coming to school tomorrow. While at work, I don't usually have even a moment to get on the computer. So, i...
by Ron Ronnerson
Mon Sep 16, 2019 1:14 am
Forum: Personal Finance (Not Investing)
Topic: Bay Area teacher saving half my income – why the doubt? (and asking more questions)
Replies: 352
Views: 13900

Re: Bay Area teacher saving half my income – why the doubt? (and asking more questions)

Exactly. And this is how the government can attract decent employees--by the pension benefits, because the salaries of government employees are generally not that of the private sector. OP is not in teaching for the money. He enjoys teaching, which means he enjoys helping children learn. He's a goo...
by Ron Ronnerson
Mon Sep 16, 2019 1:09 am
Forum: Personal Finance (Not Investing)
Topic: Bay Area teacher saving half my income – why the doubt? (and asking more questions)
Replies: 352
Views: 13900

Re: Bay Area teacher saving half my income – why the doubt? (and asking more questions)

There was recently a thread about the cost to live a middle-class lifestyle in a VHCOL area. I posted that I’m a teacher in the Bay Area and my wife is a stay-at-home parent and we’re saving half our income . People began questioning how that could be but the thread was derailed and shut down befor...
by Ron Ronnerson
Mon Sep 16, 2019 12:30 am
Forum: Personal Finance (Not Investing)
Topic: Bay Area teacher saving half my income – why the doubt? (and asking more questions)
Replies: 352
Views: 13900

Re: Bay Area teacher saving half my income – why the doubt? (and asking more questions)

You should ask any one living in Pleasanton CA if they feel the OP's situation mirrors their own. I'm guessing you'll find they are not in agreement with you. According to the Census, here are some top occupations of Pleasanton residents: 1. Management (20%) 2. Computer & mathematical (11%) 3. Busi...
by Ron Ronnerson
Mon Sep 16, 2019 12:21 am
Forum: Personal Finance (Not Investing)
Topic: Bay Area teacher saving half my income – why the doubt? (and asking more questions)
Replies: 352
Views: 13900

Re: Bay Area teacher saving half my income – why the doubt? (and asking more questions)

getthatmarshmallow wrote:
Sun Sep 15, 2019 10:38 pm
Love your story, and honestly don't find it unbelievable. Most of what makes VHCOL areas expensive is housing and taxes, and you've been fortunate and savvy to minimize both. Good work!
Thanks!
by Ron Ronnerson
Mon Sep 16, 2019 12:21 am
Forum: Personal Finance (Not Investing)
Topic: Bay Area teacher saving half my income – why the doubt? (and asking more questions)
Replies: 352
Views: 13900

Re: Bay Area teacher saving half my income – why the doubt? (and asking more questions)

So, in the end, you beat the system by buying a home at the right time and having an employer who offers you amazing tax-deferred accounts, pays you $115,000, and doesn't offer you the health benefits that would exclude you from this subsidy. A great read! Thanks for sharing so much of your persona...
by Ron Ronnerson
Sun Sep 15, 2019 11:01 pm
Forum: Personal Finance (Not Investing)
Topic: Bay Area teacher saving half my income – why the doubt? (and asking more questions)
Replies: 352
Views: 13900

Re: Bay Area teacher saving half my income – why the doubt? (and asking more questions)

I totally agree with this as it matches my daily observations. I would go so far as to say that this is the reality. It is simply not the case that, by and large, the professional working people of Pleasanton, CA have collectively over-extended themselves by buying large houses and Teslas. Many of ...
by Ron Ronnerson
Sun Sep 15, 2019 10:37 pm
Forum: Personal Finance (Not Investing)
Topic: Bay Area teacher saving half my income – why the doubt? (and asking more questions)
Replies: 352
Views: 13900

Re: Bay Area teacher saving half my income – why the doubt? (and asking more questions)

You should ask any one living in Pleasanton CA if they feel the OP's situation mirrors their own. I'm guessing you'll find they are not in agreement with you. According to the Census, here are some top occupations of Pleasanton residents: 1. Management (20%) 2. Computer & mathematical (11%) 3. Busi...
by Ron Ronnerson
Sun Sep 15, 2019 10:07 pm
Forum: Personal Finance (Not Investing)
Topic: Bay Area teacher saving half my income – why the doubt? (and asking more questions)
Replies: 352
Views: 13900

Re: Bay Area teacher saving half my income – why the doubt? (and asking more questions)

mushyyy wrote:
Sun Sep 15, 2019 10:02 pm
Who subsidizes the pension of 100k/year with only 11k/year contribution?
It’s considered a benefit, not a subsidy. The terminology matters.
by Ron Ronnerson
Sun Sep 15, 2019 9:47 pm
Forum: Personal Finance (Not Investing)
Topic: Bay Area teacher saving half my income – why the doubt? (and asking more questions)
Replies: 352
Views: 13900

Re: Bay Area teacher saving half my income – why the doubt? (and asking more questions)

You bought your home at extreme low in 2010, otherwise you’d be commuting from Manteca to Silicon Valley. There is an element of good fortune that is enabling your ability to live in tri-Valley Bay Area. He gambled and is winning thus far. I can't say I'd recommend someone purchase a home for $500K...
by Ron Ronnerson
Sun Sep 15, 2019 9:21 pm
Forum: Personal Finance (Not Investing)
Topic: Bay Area teacher saving half my income – why the doubt? (and asking more questions)
Replies: 352
Views: 13900

Re: Bay Area teacher saving half my income – why the doubt? (and asking more questions)

Thanks for the great post Ron! I'm also a teacher but DW works at a job that makes much less than mine. Wish I had crunched the numbers like you, maybe we'd been better off having her stay at home. Like you, we are saving way over half our income and not paying much taxes due to maxing out my 401k,...
by Ron Ronnerson
Sun Sep 15, 2019 8:45 pm
Forum: Personal Finance (Not Investing)
Topic: Bay Area teacher saving half my income – why the doubt? (and asking more questions)
Replies: 352
Views: 13900

Re: Bay Area teacher saving half my income – why the doubt? (and asking more questions)

I would call the dependency of tax on income piecewise linear. You just need to fall within the right piece. The wiki has the math: Marginal tax rate (Appendix: Marginal rates explained) Yes, linear over a small range, but highly nonlinear over a wide range. Subsidies and deductions make it even mo...
by Ron Ronnerson
Sun Sep 15, 2019 8:29 pm
Forum: Personal Finance (Not Investing)
Topic: Bay Area teacher saving half my income – why the doubt? (and asking more questions)
Replies: 352
Views: 13900

Re: Bay Area teacher saving half my income – why the doubt? (and asking more questions)

Hmmm...I honestly don't recall this. Sorry for any confusion but when/where did I call it a "middle class luxury life"? The very first post - "There was recently a thread about the cost to live a middle-class lifestyle in a VHCOL area. I posted that I’m a teacher in the Bay Area and my wife is a st...
by Ron Ronnerson
Sun Sep 15, 2019 8:00 pm
Forum: Personal Finance (Not Investing)
Topic: Bay Area teacher saving half my income – why the doubt? (and asking more questions)
Replies: 352
Views: 13900

Re: Bay Area teacher saving half my income – why the doubt? (and asking more questions)

I follow the same strategy with bonuses. What you're saying - in-laws pay for timeshare + watch the kids. It's the same if I say 'Hey, I live a luxurious life having just $20k of income. Relatives just pay for the house, entertainment, kid's sports and so on. Everything is possible for this income!...
by Ron Ronnerson
Sun Sep 15, 2019 7:46 pm
Forum: Personal Finance (Not Investing)
Topic: Bay Area teacher saving half my income – why the doubt? (and asking more questions)
Replies: 352
Views: 13900

Re: Bay Area teacher saving half my income – why the doubt? (and asking more questions)

The takeaway is that you live on ~$3k/mo after housing/childcare costs for a family of 3. Seems frugal but reasonable as many others in America live on that or less. You've found ways to make it work and live a happy, luxurious life for yourself. It also helps having the safety net from high saving...
by Ron Ronnerson
Sun Sep 15, 2019 7:44 pm
Forum: Personal Finance (Not Investing)
Topic: Bay Area teacher saving half my income – why the doubt? (and asking more questions)
Replies: 352
Views: 13900

Re: Bay Area teacher saving half my income – why the doubt? (and asking more questions)

Thanks for the posts, all. This thread has touched upon quite a few topics already and I think I'll add one more. It has to do with the decision on having one spouse becoming a stay-at-home parent. Here's our story of how we made that choice: My wife used to work 30 hours a week for a small business...
by Ron Ronnerson
Sun Sep 15, 2019 3:00 pm
Forum: Personal Finance (Not Investing)
Topic: Bay Area teacher saving half my income – why the doubt? (and asking more questions)
Replies: 352
Views: 13900

Re: Bay Area teacher saving half my income – why the doubt? (and asking more questions)

OP, Thanks for the detailed explanation. It was very educational. KlangFool Thanks, KlangFool. I'm glad to hear that you found it useful. Ron Ronnerson, Great job! I cannot beat your number in term of taxes. Gross income ~ 150K. Federal Income Tax ~ 10K Virginia State Income Tax ~ 7K. KlangFool Tha...
by Ron Ronnerson
Sun Sep 15, 2019 2:58 pm
Forum: Personal Finance (Not Investing)
Topic: Bay Area teacher saving half my income – why the doubt? (and asking more questions)
Replies: 352
Views: 13900

Re: Bay Area teacher saving half my income – why the doubt? (and asking more questions)

I guess luxury is in the eye of the beholder. That statement could explain almost every single budget thread on this board. The car that we bought new for <$14k seems pretty luxurious for me, although it cost us less than 1 month HHI; my perspective on luxury is shared by few on this board. For wha...
by Ron Ronnerson
Sun Sep 15, 2019 2:42 pm
Forum: Personal Finance (Not Investing)
Topic: Bay Area teacher saving half my income – why the doubt? (and asking more questions)
Replies: 352
Views: 13900

Re: Bay Area teacher saving half my income – why the doubt? (and asking more questions)

Good job Ron 👍🏼. Life dealt you a hand, and you’ve played it phenomenally thus far. Haters are gonna hate 🤷🏽‍♂️. I find it funny when others say, oh no OP is doing this because of that and this, no OP is playing chess while you’re playing checkers. To answer your three questions, yes, the emergency...
by Ron Ronnerson
Sun Sep 15, 2019 2:37 pm
Forum: Personal Finance (Not Investing)
Topic: Bay Area teacher saving half my income – why the doubt? (and asking more questions)
Replies: 352
Views: 13900

Re: Bay Area teacher saving half my income – why the doubt? (and asking more questions)

OP, Is there a plan at some point to open up your spending in the future once assets are high enough? If you are at $1 million, at some point you will be sitting on $1.5 million which will fund your $60k/yr lifestyle (give or take,) and that doesn't even include the pension/SS your family will rece...
by Ron Ronnerson
Sun Sep 15, 2019 2:31 pm
Forum: Personal Finance (Not Investing)
Topic: Bay Area teacher saving half my income – why the doubt? (and asking more questions)
Replies: 352
Views: 13900

Re: Bay Area teacher saving half my income – why the doubt? (and asking more questions)

Since few people have tried to answer OPs questions, I'll have a go. > 1) This forum has always stressed the importance of living below your means. I’ve tried to follow that while still enjoying some of life’s luxuries. My budget is fairly accurate as I monitor expenses closely. Are my numbers so s...
by Ron Ronnerson
Sun Sep 15, 2019 2:29 pm
Forum: Personal Finance (Not Investing)
Topic: Bay Area teacher saving half my income – why the doubt? (and asking more questions)
Replies: 352
Views: 13900

Re: Bay Area teacher saving half my income – why the doubt? (and asking more questions)

Nope it's not about my standards but US middle class standards. Everybody who has 3 meals per day is living a really fancy and luxurious life compared to 60% of Earth population but standards are 'slightly' different in the US. IMHO the most funny part of the list is $1200/year for vacation. The ch...
by Ron Ronnerson
Sun Sep 15, 2019 2:28 pm
Forum: Personal Finance (Not Investing)
Topic: Bay Area teacher saving half my income – why the doubt? (and asking more questions)
Replies: 352
Views: 13900

Re: Bay Area teacher saving half my income – why the doubt? (and asking more questions)

KlangFool wrote:
Sun Sep 15, 2019 7:20 am
OP,

Thanks for the detailed explanation. It was very educational.

KlangFool

Thanks, KlangFool. I'm glad to hear that you found it useful.
by Ron Ronnerson
Sun Sep 15, 2019 2:26 pm
Forum: Personal Finance (Not Investing)
Topic: Bay Area teacher saving half my income – why the doubt? (and asking more questions)
Replies: 352
Views: 13900

Re: Bay Area teacher saving half my income – why the doubt? (and asking more questions)

You are eventually (well, age 70.5) going to get hammered on taxes with RMD + pension + SS, particularly if one of you dies and is filing as a single filer. That said, given the health care situation, it probably makes sense to do what you are doing as the premium tax credit is worth a ton of money...
by Ron Ronnerson
Sun Sep 15, 2019 2:20 pm
Forum: Personal Finance (Not Investing)
Topic: Bay Area teacher saving half my income – why the doubt? (and asking more questions)
Replies: 352
Views: 13900

Re: Bay Area teacher saving half my income – why the doubt? (and asking more questions)

Great post, Ron. It’s hard to believe you’re catching grief about controlling your major purchases, minimizing expenses, and understanding tax laws. Thank you. Most of the comments have really been very positive and encouraging. I think some people might just be surprised by some of my numbers. I c...
by Ron Ronnerson
Sun Sep 15, 2019 2:13 pm
Forum: Personal Finance (Not Investing)
Topic: Bay Area teacher saving half my income – why the doubt? (and asking more questions)
Replies: 352
Views: 13900

Re: Bay Area teacher saving half my income – why the doubt? (and asking more questions)

Good job Ron 👍🏼. Life dealt you a hand, and you’ve played it phenomenally thus far. Haters are gonna hate 🤷🏽‍♂️. I find it funny when others say, oh no OP is doing this because of that and this, no OP is playing chess while you’re playing checkers. To answer your three questions, yes, the emergency...
by Ron Ronnerson
Sun Sep 15, 2019 1:39 pm
Forum: Personal Finance (Not Investing)
Topic: Bay Area teacher saving half my income – why the doubt? (and asking more questions)
Replies: 352
Views: 13900

Re: Bay Area teacher saving half my income – why the doubt? (and asking more questions)

Thanks to whomever put in the request for the thread to be unlocked and to the moderators for unlocking it. I think it's been a good discussion, overall. I have received some private messages as well from people saying they have appreciated this thread and have learned some things, especially about ...
by Ron Ronnerson
Sun Sep 15, 2019 1:02 am
Forum: Personal Finance (Not Investing)
Topic: Bay Area teacher saving half my income – why the doubt? (and asking more questions)
Replies: 352
Views: 13900

Re: Bay Area teacher saving half my income – why the doubt? (and asking more questions)

Modern 'comfortable' life of 'middle class' and it's 'luxurious' life :oops: Are you saying that his choices in cars, vacations and restaurants don't measure up to your standards of luxury :confused Nope it's not about my standards but US middle class standards. Everybody who has 3 meals per day is...
by Ron Ronnerson
Sat Sep 14, 2019 11:58 pm
Forum: Personal Finance (Not Investing)
Topic: Bay Area teacher saving half my income – why the doubt? (and asking more questions)
Replies: 352
Views: 13900

Re: Bay Area teacher saving half my income – why the doubt? (and asking more questions)

Great post, Ron. It’s hard to believe you’re catching grief about controlling your major purchases, minimizing expenses, and understanding tax laws. Thank you. Most of the comments have really been very positive and encouraging. I think some people might just be surprised by some of my numbers. I c...
by Ron Ronnerson
Sat Sep 14, 2019 11:41 pm
Forum: Personal Finance (Not Investing)
Topic: Bay Area teacher saving half my income – why the doubt? (and asking more questions)
Replies: 352
Views: 13900

Re: Bay Area teacher saving half my income – why the doubt? (and asking more questions)

Modern 'comfortable' life of 'middle class' and it's 'luxurious' life :oops: I'll try to pose it in a way so that hopefully you can see the other side. This past summer, my wife and I were both home with our daughter. I taught her to read in those three months by providing daily lessons. We went to...
by Ron Ronnerson
Sat Sep 14, 2019 10:44 pm
Forum: Personal Finance (Not Investing)
Topic: Bay Area teacher saving half my income – why the doubt? (and asking more questions)
Replies: 352
Views: 13900

Re: Bay Area teacher saving half my income – why the doubt? (and asking more questions)

What levers do you have to stay within the $64-66k MAGI needed to qualify for the premium tax credit? You may want to consider keeping a large, high interest home equity line of credit (HELOC). That way, you keep an option to pay some interest to the bank and lower your MAGI if needed to qualify fo...
by Ron Ronnerson
Sat Sep 14, 2019 9:57 pm
Forum: Personal Finance (Not Investing)
Topic: Bay Area teacher saving half my income – why the doubt? (and asking more questions)
Replies: 352
Views: 13900

Re: Bay Area teacher saving half my income – why the doubt? (and asking more questions)

Two relatively new Toyota Corollas that were purchased with cash Vacations: $100 (vacations are mostly paid for by churning credit cards for miles and points) Restaurants: $250 (we go to inexpensive places like Chinese restaurants or Subway) Clothing/Shoes/Hair/Nails: $50 We live very comfortably -...
by Ron Ronnerson
Sat Sep 14, 2019 9:56 pm
Forum: Personal Finance (Not Investing)
Topic: Bay Area teacher saving half my income – why the doubt? (and asking more questions)
Replies: 352
Views: 13900

Re: Bay Area teacher saving half my income – why the doubt? (and asking more questions)

What levers do you have to stay within the $64-66k MAGI needed to qualify for the premium tax credit? You may want to consider keeping a large, high interest home equity line of credit (HELOC). That way, you keep an option to pay some interest to the bank and lower your MAGI if needed to qualify fo...
by Ron Ronnerson
Sat Sep 14, 2019 9:48 pm
Forum: Personal Finance (Not Investing)
Topic: Bay Area teacher saving half my income – why the doubt? (and asking more questions)
Replies: 352
Views: 13900

Re: Bay Area teacher saving half my income – why the doubt? (and asking more questions)

There was recently a thread about the cost to live a middle-class lifestyle in a VHCOL area. I posted that I’m a teacher in the Bay Area and my wife is a stay-at-home parent and we’re saving half our income. People began questioning how that could be but the thread was derailed and shut down before...
by Ron Ronnerson
Sat Sep 14, 2019 9:33 pm
Forum: Personal Finance (Not Investing)
Topic: Bay Area teacher saving half my income – why the doubt? (and asking more questions)
Replies: 352
Views: 13900

Re: Bay Area teacher saving half my income – why the doubt? (and asking more questions)

I will say that the teachers in this area (upstate NY Capital District region, MCOL) are generally not able to save half their income in one earner families and live a lifestyle comparable to the OPs (i.e., live in new construction townhome built less than ten years ago, two cars, cleaning service ...
by Ron Ronnerson
Sat Sep 14, 2019 9:31 pm
Forum: Personal Finance (Not Investing)
Topic: Bay Area teacher saving half my income – why the doubt? (and asking more questions)
Replies: 352
Views: 13900

Re: Bay Area teacher saving half my income – why the doubt? (and asking more questions)

Two relatively new Toyota Corollas that were purchased with cash Vacations: $100 (vacations are mostly paid for by churning credit cards for miles and points) Restaurants: $250 (we go to inexpensive places like Chinese restaurants or Subway) Clothing/Shoes/Hair/Nails: $50 We live very comfortably -...
by Ron Ronnerson
Sat Sep 14, 2019 9:18 pm
Forum: Personal Finance (Not Investing)
Topic: Bay Area teacher saving half my income – why the doubt? (and asking more questions)
Replies: 352
Views: 13900

Re: Bay Area teacher saving half my income – why the doubt? (and asking more questions)

Seriously. This is messed up. Our income is over 400k and we paid over 75k in income taxes. So we make roughly 4x as much money and pay roughly 40x more in taxes. Just live on $60k per year and you can mostly avoid taxes. The choice is up to you. This is a bit flippant, don't you think? Surely you ...