[altairprime]

260k/yr at an effective tax rate of about 50%, so actual spendable/saveable money is only $130k in free cash; people wildly overestimate their spending / saving risk decisions based on pre-tax gross salary versus what they actually receive and can use, and at 11k/mo it’s easy to fall into the trap of spending it every month because it’ll be there next month too. The Bay Area is especially egregious about using up that post-tax amount but I stand by my advice to save 10x annual income before playing margin investor with interest rates.

[abduhl]

The effective tax rate on 260k/yr is 22% federally. The person we are discussing lives in Washington state. Their effective tax rate is 22%.

[altairprime]

Great! They’ll be able to save a nest egg in as little as twelve years, then, if my brief mental napkin math works out — unless they make the mistake of buying a house whose payment triples that time.