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      02-05-2012, 01:33 AM   #1
theaf1don
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How are all these young guys affording M3s?

I graduated college last year and am an engineer at a big SV tech company. I'm making 100k base salary but still can't afford an M3. Yet at the same time I see so many high school and college kids driving M3s around. What gives?

After taxes and 401(k), its around $3,500 per month in CA. Then lets say rent is like $1,500 for a mediocre place, closer to $2k for a decent place. Thats $1,500 left for all months expense. Don't see how an M3 fits anywhere.
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      02-05-2012, 01:43 AM   #2
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They hit the genetic lottery. You might as well learn now...there is always somebody with more...

Work hard, save some money, live your life the right way...and quit worrying about what other people have...
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      02-05-2012, 01:49 AM   #3
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Originally Posted by theaf1don View Post
I graduated college last year and am an engineer at a big SV tech company. I'm making 100k base salary but still can't afford an M3. Yet at the same time I see so many high school and college kids driving M3s around. What gives?

After taxes and 401(k), its around $3,500 per month in CA. Then lets say rent is like $1,500 for a mediocre place, closer to $2k for a decent place. Thats $1,500 left for all months expense. Don't see how an M3 fits anywhere.
I am not a mathematician but how is 100K a year equal to 3500 / month lol. Either taxes in california are incredible or u are putting like 2K a month into your 401K.

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They hit the genetic lottery. You might as well learn now...there is always somebody with more...

Work hard, save some money, live your life the right way...and quit worrying about what other people have...
+1
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      02-05-2012, 01:51 AM   #4
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Originally Posted by Q4P View Post
I am not a mathematician but how is 100K a year equal to 3500 / month lol. Either taxes in california are incredible or u are putting like 2K a month into your 401K.



+1
Its high tax plus maxing 401k which is like 1500/month. I guess most people don't do this?
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      02-05-2012, 01:54 AM   #5
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Saw your topic on the Misc. OP. Repped u
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      02-05-2012, 01:55 AM   #6
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Its high tax plus maxing 401k which is like 1500/month. I guess most people don't do this?
I think I solved your mystery in 2 minutes but at your age I would imagine that is a lot to put into a 401K... then again different priorities for different people.
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      02-05-2012, 01:56 AM   #7
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Originally Posted by Q4P View Post
I think I solved your mystery in 2 minutes but at your age I would imagine that is a lot to put into a 401K... then again different priorities for different people.
Isn't it a good idea to max a 401(k) for tax reasons and savings?
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      02-05-2012, 01:58 AM   #8
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Originally Posted by theaf1don
Quote:
Originally Posted by Q4P View Post
I think I solved your mystery in 2 minutes but at your age I would imagine that is a lot to put into a 401K... then again different priorities for different people.
Isn't it a good idea to max a 401(k) for tax reasons and savings?
Not exactly
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      02-05-2012, 02:01 AM   #9
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Originally Posted by theaf1don View Post
Isn't it a good idea to max a 401(k) for tax reasons and savings?
This is a question you may want to ask someone other than a person on a vehicle forum...

Point being; this is different for different people... listen to advice and make your own decision.
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      02-05-2012, 02:15 AM   #10
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Rough calculations for "0" dependents in california

108,000 a yr = 9k a month

4500 taxes, medicare, social secuirty ONLY even more if you take out some type of retirement contribution.

a lot of people only put it the max that the company will match.

take home is 5500 or less depending on how much u put into retirement.

lease an M3 with insurance is like 800 a mnth. you can squeeze it in if you try.

fk
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      02-05-2012, 02:15 AM   #11
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they chose the right parents.
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      02-05-2012, 02:18 AM   #12
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Quote:
Originally Posted by theaf1don View Post
Isn't it a good idea to max a 401(k) for tax reasons and savings?
depends on several factors. your AGI, your risk profile, the investments, risk timeline, whether there is matching by your firm, the economy, etc

and by economy, i mean...

"The Federal Reserve, which cut its target for the federal funds rate to a zero-to-0.25 percent range on Dec. 16, 2008, said last month that rates would remain “exceptionally low” at least through late 2014. While the unprecedented period of near-zero rates is meant to aid an ailing economy, it poses challenges for banks, insurers, pension funds, and savers.

The hope is that by making mortgages and other loans cheaper, ultra-low rates eventually may revive economic growth, Bloomberg Businessweek reports in its Feb. 6 issue. For now they’re squeezing profits at banks and disrupting investment strategies at insurance companies and pension funds. They’ve reduced payouts on savings accounts and bonds, and may lead to higher bank fees and insurance premiums.

“For most people, there’s been more downside to these low rates than upside,” says Barry Ritholtz, chief executive officer of FusionIQ, a New York-based investment research firm. “They’ve punished savers and people living on fixed income, and made insurance more expensive.” "
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      02-05-2012, 02:20 AM   #13
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Quote:
Originally Posted by firstkill View Post
Rough calculations for "0" dependents in california

108,000 a yr = 9k a month

4500 taxes, medicare, social secuirty ONLY even more if you take out some type of retirement contribution.

a lot of people only put it the max that the company will match.

take home is 5500 or less depending on how much u put into retirement.

lease an M3 with insurance is like 800 a mnth. you can squeeze it in if you try.

fk
I would move from California tomorrow...
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      02-05-2012, 02:29 AM   #14
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they chose the right parents.
lol
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      02-05-2012, 03:04 AM   #15
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1500/a month for 401k is insane... man live it up for a few years and buy your self something nice. I know i would be if i was making 100k a year...
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      02-05-2012, 03:21 AM   #16
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1500/a month for 401k is insane... man live it up for a few years and buy your self something nice. I know i would be if i was making 100k a year...
You have to remember, thats $1,500 I'm saving pre tax. If I were to spend it, it would only equate to like $1,000.
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      02-05-2012, 03:39 AM   #17
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      02-05-2012, 07:38 AM   #18
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People can afford what they make priorities for.
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      02-05-2012, 08:37 AM   #19
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People can afford what they make priorities for.
I think your signature says pretty much explains it lol.. They eat dumplings
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      02-05-2012, 08:50 AM   #20
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      02-05-2012, 09:09 AM   #21
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Just because they have one doesn't mean they can afford it so much. Allot live outside their means or like others have said they had rich folks etc... I see allot of young military members here in Germany buy themselves a nice Bimmer or Audi, of all sorts, because the dealerships give a good military discount and no taxes until you bring them to the states. Allot of these cars go up for sale right before they move stateside.
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      02-05-2012, 09:31 AM   #22
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Originally Posted by ideliver View Post
They hit the genetic lottery. You might as well learn now...there is always somebody with more...

Work hard, save some money, live your life the right way...and quit worrying about what other people have...
this.

What you say is definitely not the case for all young(er) ones, but many/most have rich parents who are willing to spend money on whatever car their kids want. High schoolers drive Bentleys, new BMWs, AMGs, etc. I refuse to believe that baggers at grocery stores suddenly hit the jackpot with salaries orders of magnitudes greater than minimum wage.

Then you have the random young kids driving a new lambo because they sell aftermarket headlight parts, a seemingly unprofitable business making tons of money. How they do it? Beats me. I've given up. I have friends who got jobs after their BS degrees making $100k for the past 10 years. I'm stuck here with a great education scraping by and trying to find a job that makes 6 figures. Is life fair? No. Am I bitter about it? Not anymore, since I love what I do. Just gotta live within your means.
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