How I Think About Debt

Re:How I Think About Debt by throwaway2037 on Tuesday May 07, 2024 @01:23AM (#40282616)

    > Unfortunately housing prices are rising so fast that saving for years doesn't necessarily get you there

Where? In many, many highly developed countries this isn't true.

    > 1M is close to 500K after taxes

Woah. Where do you live where effective income tax rates are 50% for 1M+? Please don't confuse marginal ("headline") vs effective ("actual") tax rates.

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Re:How I Think About Debt by ehmmmmmmmm on Tuesday May 07, 2024 @01:46AM (#40282745)

In San Francisco if you make $1M as a W-2 employee your marginal tax rate is ~53% and your effective tax rate is ~47%.

If you make $1M on your own the rates are even higher.

(That's not including the 10% sales tax you pay on almost everything you buy with the money you have left, property taxes on property you thought you owned, property taxes landlords financially pass onto you as a renter, etc.)

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Re:How I Think About Debt by seanmcdirmid on Tuesday May 07, 2024 @01:51AM (#40282761)

Property taxes are the only thing in California that are pretty mellow given prop 13. Well, unless the property was just turned over.

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Re:How I Think About Debt by throwaway2037 on Wednesday May 08, 2024 @05:20AM (#40295933)

Don't worry, the home prices in SF are still much cheaper than Sydney or Hongkong.

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