The exercise was eye opening, and he realized why his neighbor is STRUGGLING on an income of $300k!
I need to do this exercise as that is insane.
The exercise was eye opening, and he realized why his neighbor is STRUGGLING on an income of $300k!After running the numbers, he decided that he is comfortable earning more, to the extent that will drop him off FS rolls, but would still qualify him for a full Pell grant for his children (and for Medicaid, based on his income and family size).
Were any lifestyle differences included?
Do you have 10 children learning in parochial schools?
A friend with a large family discussed his situation with me. He felt that his dependence on government programs his hindering his mentality and trapping him in his situation.We put down on a spreadsheet all his expenses (including those covered currently by programs and grants), and then all sources of income (including programs and grants).We then started to examine how would various increases to his income affect his lifestyle.Here were some of the things we learned:1. He was extremely lucky to buy his house when he bought it, and subsequently get a mortgage modification, or else it would be close to impossible.2. He is extremely lucky to legally qualify for something called Qualified Tuition Reduction.3. In order to maintain the same (modest) lifestyle without all the non-taxable benefits (Medicaid, Pell Grants, QTR) he would have to earn about double what he currently earns (counting the QTR as current income, even though it is not considered such by the IRS, and is therefore not taxed).The exercise was eye opening, and he realized why his neighbor is STRUGGLING on an income of $300k!After running the numbers, he decided that he is comfortable earning more, to the extent that will drop him off FS rolls, but would still qualify him for a full Pell grant for his children (and for Medicaid, based on his income and family size).
Parents had 6 but only 4 for me. So 300k/10 equals 30k/kid. That is insane.
it's not all tuition. Is lakewood tuition still 3k a kid or so? I know in my kids school (OOT) it comes out to about $14,500 per child for elementary school. more for high school.
A large chunk of the 300k is probably going to taxes
$300K -$130K Fed+NY+NYC tax-$100K tuition-$35K mortgage-$20K food-$15K charity=$0
and that doesn't count car/cars, house insurance, car insurance, life insurance, health insurance...
Nor camps, or any vacation, nor any clothing...
Long story short, doesn't pay to make between 100-275ish with a bunch of kids, might as well not
I get all the numbers. There is also a mindset involved here. Here is my mindset. I just retired. The reason I retired is I am set financially. You don't retire first and then figure out were the money is going to come from.