Elaborate on the tax savings part if you both made 150k? I'm not following you
Also, if you both worked you would have to pay for child care...
one income 300K is at a higher tax rate than two people filing separately at 150K. According to poster, the marginal tax rate in canada is 54% (combined is 37%). At 150K, the marginal is probably much lower. The combined tax rate is probably closer to 22% (just spit balling, no idea).
Thats a net income difference of $15,000. State sponsored child care (preschool or school), or hybrid work from home jobs, or family (grandparents) could eliminate child care costs.
So my wife and I have filled jointly for years and are about at that level. Should we be filing seperately?
If you're 50 and you only have 500k and you want 500k in income when you retire you better start saving fast. You will need 9.5 million more. 500k makes you 25 k per year when you retire. I would quit the 5 star hotel spending. You should be saving 100k per year.
I’m at $427k this year and don’t think about money etc. I also don’t want $500k in income when I retire that makes zero sense. We are a family of five and as empty nesters we can have a great life at $100k income in retirement. Don’t let people scam you thinking you need $2-3m in nest egg that’s completely false and you’ll end up figuring out creative way to get rid of your money. Right now my three kids will have a phenomenal inheritance.
I travel the world with my wife to races and fine dining, but other than that don’t splurge on much. I just love training and racing as a C-Suite and working hard. If I cleared $1m next year my life would not change. My kids already have college paid via athletic scholarships so we feel we’ve hit the lottery in a way/
Yea but when you're in your drooling years spending 200k a year on assisted living you burn through money quickly. Its a little delusional to think you will be happy going from 427 k in income to 100k in retirement and be ok. My kids college is paid for too from merit scholarships and that's not the point. If you want financial freedom to do whatever the f you want you need millions, and if you have some semblance of a soul you might enjoy giving some money away in the future too.
Our W2s for 2025 will be ~500k combined. We're mid 30s with ~2.7m net worth.
If you don't have any insane spending habits then sure it is comfortable but still far from luxury. We still rent (trying now to buy our first home) and still drive 10+yo Hondas. But we also don't think about common costs for food, utilities, etc., can buy most things we want, and will likely retire in our 40s.
This post was edited 2 minutes after it was posted.
one income 300K is at a higher tax rate than two people filing separately at 150K. According to poster, the marginal tax rate in canada is 54% (combined is 37%). At 150K, the marginal is probably much lower. The combined tax rate is probably closer to 22% (just spit balling, no idea).
Thats a net income difference of $15,000. State sponsored child care (preschool or school), or hybrid work from home jobs, or family (grandparents) could eliminate child care costs.
So my wife and I have filled jointly for years and are about at that level. Should we be filing seperately?
Perhaps.
Perhaps if the gross income was relatively 50/50. Probaby not if the gross combined income is around 70/30. No idea though.
I know people who earn 450k in NYC who def don't feel like they can do whatever they want.
I assume that would be equivalent to 300k in some other states.
NYC has high tax. Probably private schools as well if they have kids. though some offer aid to families making up to $800k a year (with 3 kids). Money would go further in Chicago, let alone a small city, but earning potential (and amenities) is less
I’m at $427k this year and don’t think about money etc. I also don’t want $500k in income when I retire that makes zero sense. We are a family of five and as empty nesters we can have a great life at $100k income in retirement. Don’t let people scam you thinking you need $2-3m in nest egg that’s completely false and you’ll end up figuring out creative way to get rid of your money. Right now my three kids will have a phenomenal inheritance.
I travel the world with my wife to races and fine dining, but other than that don’t splurge on much. I just love training and racing as a C-Suite and working hard. If I cleared $1m next year my life would not change. My kids already have college paid via athletic scholarships so we feel we’ve hit the lottery in a way/
Yea but when you're in your drooling years spending 200k a year on assisted living you burn through money quickly. Its a little delusional to think you will be happy going from 427 k in income to 100k in retirement and be ok. My kids college is paid for too from merit scholarships and that's not the point. If you want financial freedom to do whatever the f you want you need millions, and if you have some semblance of a soul you might enjoy giving some money away in the future too.
I guess the issue is who would want $500k income in RETIREMENT? That means you didn't live during your 20-40's... we have lived a life and can live perfectly fine on $100k-ish with our financial planning and situation. The most dynamic part is now if we choose to retire in the US or not (we can live elsewhere).
That's the salary of 2,000 Bangladeshi men. Remember folks; you're pampered to have free admission in a country that used to have no standards to enter, and full license to moydarize natives and use free labor at the end of a whip. Our ancestors utilized both of those. That ain't fun, is it?
Assume you live somewhere that is NOT super expensive (SF, NYC, San Diego, etc). Is an annual income of $300,000 (as an individual) enough to do basically whatever you want, within reason? Seems like it would be. I currently make around $100,000 and feel like I live very comfortably, though I feel like I wouldn't be able to pay for big family vacations abroad each year and stuff like that. I'm single, so it's a moot point right now, but I'm thinking about the future, goals, etc, and $300k/year seems like it would be enough to do just about anything a normal person would want to do.
Anyone here have experience with this kind of income?
Yes. In the midwest (aside from Chicago), 200k is going to be a good life. Let's say you splurge and spend 200k for your needs & regular expenses. You have an extra 100k to travel 'or eat out every night or buy new clothes or whatever you want to do. That's about 1400 a week or 5800 a month after taxes. You could take a trip to Europe or Asia for the weekend. You could buy a farrari. You could buy a vacation house.
Assume you live somewhere that is NOT super expensive (SF, NYC, San Diego, etc). Is an annual income of $300,000 (as an individual) enough to do basically whatever you want, within reason? Seems like it would be. I currently make around $100,000 and feel like I live very comfortably, though I feel like I wouldn't be able to pay for big family vacations abroad each year and stuff like that. I'm single, so it's a moot point right now, but I'm thinking about the future, goals, etc, and $300k/year seems like it would be enough to do just about anything a normal person would want to do.
Anyone here have experience with this kind of income?
This sounds nuts.
1) You don't have kids.
2) you don't have a hot wife
3) what is your cost of housing even in the middle of america?
Assume you live somewhere that is NOT super expensive (SF, NYC, San Diego, etc). Is an annual income of $300,000 (as an individual) enough to do basically whatever you want, within reason? Seems like it would be. I currently make around $100,000 and feel like I live very comfortably, though I feel like I wouldn't be able to pay for big family vacations abroad each year and stuff like that. I'm single, so it's a moot point right now, but I'm thinking about the future, goals, etc, and $300k/year seems like it would be enough to do just about anything a normal person would want to do.
Anyone here have experience with this kind of income?
Yes, I think given your parameters, the $300k is good money, but not F-you money. Depending on your age, and savings, it allows you to live a good life, and still save for retirement. Which is what I'd advise you be doing if you're making $300. Combined income here is a bit north of $400k, married, in an average cost of living SE city. Kids are out of college (so that's paid for). We live pretty comfortably, like we make about $150k and pack the rest away. I'm also a business owner, hoping for a decent cash out to add to my savings.
Assume you live somewhere that is NOT super expensive (SF, NYC, San Diego, etc). Is an annual income of $300,000 (as an individual) enough to do basically whatever you want, within reason? Seems like it would be. I currently make around $100,000 and feel like I live very comfortably, though I feel like I wouldn't be able to pay for big family vacations abroad each year and stuff like that. I'm single, so it's a moot point right now, but I'm thinking about the future, goals, etc, and $300k/year seems like it would be enough to do just about anything a normal person would want to do.
Anyone here have experience with this kind of income?
Yes. In the midwest (aside from Chicago), 200k is going to be a good life. Let's say you splurge and spend 200k for your needs & regular expenses. You have an extra 100k to travel 'or eat out every night or buy new clothes or whatever you want to do. That's about 1400 a week or 5800 a month after taxes. You could take a trip to Europe or Asia for the weekend. You could buy a farrari. You could buy a vacation house.
My simple factual post on page one received pure downvotes.
You are way off on actual take home pay. My $215k salary comes in 26 biweekly checks. With taxes, health plan, and retirement plan, my actual check is just under $5k, that's $130k for the year. 40% goes to those deductions. My mortgage payment is just over $5k, so one paycheck won't quite cover it.
Household income of $400k. Definitely not enough to do anywhere near everything we want. Of course, it is somewhat location specific, and we live on the north shore of Long Island, which is not exactly Topeka Kansas (no offense to Topekans, but...)
Yes. In the midwest (aside from Chicago), 200k is going to be a good life. Let's say you splurge and spend 200k for your needs & regular expenses. You have an extra 100k to travel 'or eat out every night or buy new clothes or whatever you want to do. That's about 1400 a week or 5800 a month after taxes. You could take a trip to Europe or Asia for the weekend. You could buy a farrari. You could buy a vacation house.
My simple factual post on page one received pure downvotes.
You are way off on actual take home pay. My $215k salary comes in 26 biweekly checks. With taxes, health plan, and retirement plan, my actual check is just under $5k, that's $130k for the year. 40% goes to those deductions. My mortgage payment is just over $5k, so one paycheck won't quite cover it.
Assume you live somewhere that is NOT super expensive (SF, NYC, San Diego, etc). Is an annual income of $300,000 (as an individual) enough to do basically whatever you want, within reason? Seems like it would be. I currently make around $100,000 and feel like I live very comfortably, though I feel like I wouldn't be able to pay for big family vacations abroad each year and stuff like that. I'm single, so it's a moot point right now, but I'm thinking about the future, goals, etc, and $300k/year seems like it would be enough to do just about anything a normal person would want to do.
Anyone here have experience with this kind of income?
Most people here have experience with that kind of income, obviously.
Depends when you want to stop working. My money makes that much money so while I (mid 40s) haven't officially retired I just shut down my company's website last night. My wife also makes that much and wants to keep working. In a few years paying for college will drain tons but then there's no more significant costs for (hopefully) a few decades. We own a mile from the #1 or #2 most expensive zip codes so I see how far I am from actual wealth.
Yes. In the midwest (aside from Chicago), 200k is going to be a good life. Let's say you splurge and spend 200k for your needs & regular expenses. You have an extra 100k to travel 'or eat out every night or buy new clothes or whatever you want to do. That's about 1400 a week or 5800 a month after taxes. You could take a trip to Europe or Asia for the weekend. You could buy a farrari. You could buy a vacation house.
My simple factual post on page one received pure downvotes.
You are way off on actual take home pay. My $215k salary comes in 26 biweekly checks. With taxes, health plan, and retirement plan, my actual check is just under $5k, that's $130k for the year. 40% goes to those deductions. My mortgage payment is just over $5k, so one paycheck won't quite cover it.
This is where different notions of “whatever you want” come in. One of your paychecks would cover 3 months of my mortgage payments. My gross salary is about $150K, my wife doesn’t work, and we live pretty comfortably (though we try to avoid blowing too much money on things that don’t mean much to us).
Canadian so my ~300k is more like 220k USD. Additionally Taxes are higher so my marginal tax rate is 54% (and average rate is 37%).
Definitely don't feel like I can do everything and anything lol. For us it is enough that my wife doesn't have to work while the kids are young, we can max out tax sheltered accounts, pay a somewhat expensive mortgage, eat out when we want, and do 1-2 not-so-expensive vacations per year. It is enough that we don't think about money before spending it on things that are under $500. Running is my biggest hobby expense. Also we obviously save way more than the average person.
I think if I made 150k and my wife made 150k the story would be very different because of the tax savings.
tl;dr depends if you have dependents, and if you want to retire early.
I mean, couple things here. 1) You're at ~$220k USD, which is a lot less than $300k, 2) you have a higher tax rate than a person would in the US, and 3) you're essentially supporting several other people. Imagine if you were single, or your wife also made $85,000USD per year or more. You'd probably be very comfortable and free. Sounds like you're already living fairly well if you're fine with your wife not working and you say you have an expensive mortgage. Good info though. Thanks.
yup, agreed on all points. I threw my info in because I imagine there aren't too many letsrunners making over 300k (despite the memes) so might as well give some first hand experience that is almost relevant to OPs question.
My wife is a teacher by trade and will likely go back to work once all the kids are preschool age which will help!
one income 300K is at a higher tax rate than two people filing separately at 150K. According to poster, the marginal tax rate in canada is 54% (combined is 37%). At 150K, the marginal is probably much lower. The combined tax rate is probably closer to 22% (just spit balling, no idea).
Thats a net income difference of $15,000. State sponsored child care (preschool or school), or hybrid work from home jobs, or family (grandparents) could eliminate child care costs.
So my wife and I have filled jointly for years and are about at that level. Should we be filing seperately?
its different in canada there is no jointly or separately, everyone files separately and married couples share a few credits. IIRC Tax-wise in canada it is a net-negative to be married. I think the positives are... you can transfer charitable deductions and the spousal RRSP is ... nice for retirement income balancing.. if one spouse works and one spouse doesn't you get hosed.