That’s just about everyone that owns a home. And, you better have something much more than that if you plan to ever retire. In the US, $130k is both a lot and nowhere near enough.
This. I make around $125k, and can acknowledge I’m an outlier. Admittedly, I work in the tech field and know plenty of folks probably making more. But it’s not “rich” money, it’s like…. 1990 middle class money, maybe.
I had a house built in 2021, 1050 sq/ft for a bit over $200k, and even that was only feasible because:
It’s in rural bumfuck
I can work remotely, so the move was possible.
It’s a small house, just me and my wife.
I keep costs low and still live like I make 60-70k.
If I still had to be tied to the city due to my career, I’m not sure I’d be able to afford it. The cheapest shithole of a place would cost more than twice what I paid for my house, and rent was the same and more. It’s utterly insane. Even moving to a more rural/ex-urban area, buying an old run down house that needed major work would have cost about the same as having my new home built and owning the land under it; it’s crazy.
I had to wait 11 months for the build to finish but it was worth it, got me out of this insane rat race. I don’t want to care about money, but that’s just life in a capitalist system.
The thing is, they didn’t say earn $130k, they said have $130k of wealth. If your retirement account is below that, you’re not retiring for a long while. With the exception of the few that have pensions.
I probably have that or a bit more if you account the house appreciation and my savings, but I’m not selling or moving, and with costs that’s nowhere close to what I’d need to retire.
Assuming my current living standard and estimating costs cautiously at 70k annual without accounting for inflation, I’d need around 2.4 million to retire today, and that’s assuming I only live into my 70s. No way that’s happening without a powerball ticket, but thankfully I’ve got more than a few years left in me before retirement age.
That’s just about everyone that owns a home. And, you better have something much more than that if you plan to ever retire. In the US, $130k is both a lot and nowhere near enough.
This. I make around $125k, and can acknowledge I’m an outlier. Admittedly, I work in the tech field and know plenty of folks probably making more. But it’s not “rich” money, it’s like…. 1990 middle class money, maybe.
I had a house built in 2021, 1050 sq/ft for a bit over $200k, and even that was only feasible because:
If I still had to be tied to the city due to my career, I’m not sure I’d be able to afford it. The cheapest shithole of a place would cost more than twice what I paid for my house, and rent was the same and more. It’s utterly insane. Even moving to a more rural/ex-urban area, buying an old run down house that needed major work would have cost about the same as having my new home built and owning the land under it; it’s crazy.
I had to wait 11 months for the build to finish but it was worth it, got me out of this insane rat race. I don’t want to care about money, but that’s just life in a capitalist system.
The thing is, they didn’t say earn $130k, they said have $130k of wealth. If your retirement account is below that, you’re not retiring for a long while. With the exception of the few that have pensions.
I probably have that or a bit more if you account the house appreciation and my savings, but I’m not selling or moving, and with costs that’s nowhere close to what I’d need to retire.
Assuming my current living standard and estimating costs cautiously at 70k annual without accounting for inflation, I’d need around 2.4 million to retire today, and that’s assuming I only live into my 70s. No way that’s happening without a powerball ticket, but thankfully I’ve got more than a few years left in me before retirement age.