ilmscore | Gen-Z Says $74,000 Per Year Is No Longer Middle Class

Gen-Z Says $74,000 Per Year Is No Longer Middle Class

Published: 2024-02-14
Status: Available | Analyzed

Predictions from this Video

Total: 9
Correct: 0
Incorrect: 0
Pending: 9
Unrated: 0
Prediction
Topic
Status
The income required to be considered middle class has increased from $70,000 to $120,000 in the last two years.
"the middle class the goalpost has been moved from 70k to $120,000 in just the past 2 years"
Middle Class Income Threshold
Pending
The median home price in the US is $417,000 with a median down payment of $31,500.
"as of now the median home in the United States costs $417,000 and the median down payment is $31,500"
Home Affordability
Pending
A yearly income of $120,000 is needed to conservatively afford the median home price using the 28% rule.
"to be able to conservatively make this purchase... you need an income of $10,000 a month before tax or $120,000 a year in order to be able to conservatively make this purchase"
Home Purchase Qualification
Pending
The average Millennial purchases their first home at age 34, slightly later than Baby Boomers at age 33.
"that's why the average Millennial buys their first home at age 34 compared to Baby Boomers at age 33"
First-Time Homeownership Age
Pending
Investing $500 a month for 40 years could result in $1.8 million tax-free by age 65, assuming an 8% return.
"if you just invest this amount compounded over 40 years in % return you would have $1.8 Million by the time you're 65 completely taxfree"
Future Savings Potential
Pending
Increasing monthly savings to $1,000 (20% of $555,000 take-home pay) over 40 years could lead to a $3.4 million nest egg, excluding 401K contributions.
"if you then increase this number to a th000 a month which is a 20% savings rate on a $555,000 take-home pay after tax over 40 years of investing that amount could turn into a$ 33.4 million Nest deeg"
Higher Savings Potential
Pending
To match the purchasing power of $100,000 from a decade ago, one would need to earn $129,000 today.
"you would have to make $129,000 today to have the same purchasing power that a salary of a h 100,000 had just a decade ago"
Purchasing Power Decline
Pending
It's statistically improbable to buy a home in your 20s as an individual while simultaneously paying off student loans.
"there are very few jobs out there that have ever existed that would allow you to buy a home in your 20s by yourself during a time that you're also paying down student loan debt"
Buying a Home Solo at 25
Pending
While technically possible for a $75,000 earner to buy a home solo using a 45% DTI ratio, it requires paying off all debts, saving for a 10% down payment, and additional savings.
"if you would like to buy a home on your own making $75,000 a year then yes it's technically possible based on a lender's 45 % debt to income ratio But first you have to pay off all debts second you need to save up enough money for a 10% down payment and third you better save more money beyond that"
Buying a Home Solo on $75k Income
Pending