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It's possible, but unusual, to earn over 200k as a base salary. Although it is more common at certain organizations (e.g. Google, Apple) and in roles like sales

It's possible, but unusual, to earn over 200k as a base salary. Although it is more common at certain organizations (e.g. Google, Apple) and in roles like sales. As others have mentioned, often beyond that point you're in stock, bonuses and other incentives. One reason is tax. After 200k almost half of what you earn is going in tax (Assuming US/California here). So going to 250k seems like a jump, but it's going to have a much less increment on your lifestyle. So you may be better moving laterally/zig-zagging than continuing to optimize on the path you're on. Perhaps a smaller org that can still pay well, but gives you equity or leadership opportunities.

ringaroundthetx 9y ago
So first, tax is marginal. Only the amount above a tax bracket is taxed at the higher rate. > So going to 250k seems like a jump, but it's going to have a much less increment on your lifestyle. Second, the difference between 200k and 250k is that your adjusted gross income legally allows you to participate in private equity investments without you having to get an accountant to lie for you. So therefore, instead of having to spend 8 years of your life just to get the OPTION of buying $4,000 worth of the two startups you were stuck working at, you can get into the deal flow for any of the trendiest and flashiest companies with the biggest upwards trajectory. Or even better, invest in a VC fund that does this better than you. You can finally stop lying to your company's cofounders about all the passion you have for their non-sensical company just so you can eek out another 1/48th of your option while getting another month of React under your belt for the next move. There's really no reason to rationalize if you are already that close. You are playing the money game or else you would have used the exact same rationale to not pursue the salary increase from $50k to anything above $75k in whatever suburb or regional support city that you came from. Its only financial engineering from here on and you are in a position to create generational wealth. You are close to an exemption from the income taxes that make 20% increases in your comp demotivational, when your long term capital gains start rolling in. You are close to an exemption from the socioeconomic problems of your costly urban environment. You are close to an exemption from the class system preventing you from obtaining the cheapest and most lucrative investments. This is about honesty.
- jwilliams 9y ago
  > So first, tax is marginal. Only the amount above a tax bracket is taxed at the higher rate. Yup. That's the core point I was making. > you can get into the deal flow for any of the trendiest and flashiest companies with the biggest upwards trajectory Much harder that you're making it out to be. Being a angel investor is tough. Being a successful one is even tougher. Experienced investors can improve their network, access and odds - but it's a lot of work and they're often outliers. > This is about honesty. Really not sure what point you're making.
  - ringaroundthetx 9y ago
    Why did you chose to skip this part? > > Or even better, invest in a VC fund that does this better than you.
    - jwilliams 9y ago
      Because it's simply not an option. VCs raise the vast majority of money from institutional investors, not individuals. If there are individuals involved, they're high net worth already. You need to be prepared to write a $500k-$2M check and not see a return for an extended period of time. Even then, getting into a top-quartile fund with the best return proposition is going to be highly competitive. Finally, funds are relatively infrequent, so you still need to be at the right place at the right time. Either way, we're clearly describing a scenario which is well beyond the situation in the ask.
lilsoso 9y ago
I am interested in moving into enterprise software sales to move into higher income brackets. Can you recommend any companies to work for?
- jwilliams 9y ago
  If you've got a technical background there are a number of routes/companies. You could make the jump directly into sales, but without experience you'll have to start at the ground floor. If you take on a technical/pre-sales role you may be able to move laterally. Probably lots of companies you can do that at. Will depend more on your geography, the opportunities that are available. Generally system integrators and technical consultancies can be a good place to start looking...

ringaroundthetx 9y ago

So first, tax is marginal. Only the amount above a tax bracket is taxed at the higher rate. > So going to 250k seems like a jump, but it's going to have a much less increment on your lifestyle. Second, the difference between 200k and 250k is that your adjusted gross income legally allows you to participate in private equity investments without you having to get an accountant to lie for you. So therefore, instead of having to spend 8 years of your life just to get the OPTION of buying $4,000 worth of the two startups you were stuck working at, you can get into the deal flow for any of the trendiest and flashiest companies with the biggest upwards trajectory. Or even better, invest in a VC fund that does this better than you. You can finally stop lying to your company's cofounders about all the passion you have for their non-sensical company just so you can eek out another 1/48th of your option while getting another month of React under your belt for the next move. There's really no reason to rationalize if you are already that close. You are playing the money game or else you would have used the exact same rationale to not pursue the salary increase from $50k to anything above $75k in whatever suburb or regional support city that you came from. Its only financial engineering from here on and you are in a position to create generational wealth. You are close to an exemption from the income taxes that make 20% increases in your comp demotivational, when your long term capital gains start rolling in. You are close to an exemption from the socioeconomic problems of your costly urban environment. You are close to an exemption from the class system preventing you from obtaining the cheapest and most lucrative investments. This is about honesty.

jwilliams 9y ago
> So first, tax is marginal. Only the amount above a tax bracket is taxed at the higher rate. Yup. That's the core point I was making. > you can get into the deal flow for any of the trendiest and flashiest companies with the biggest upwards trajectory Much harder that you're making it out to be. Being a angel investor is tough. Being a successful one is even tougher. Experienced investors can improve their network, access and odds - but it's a lot of work and they're often outliers. > This is about honesty. Really not sure what point you're making.
- ringaroundthetx 9y ago
  Why did you chose to skip this part? > > Or even better, invest in a VC fund that does this better than you.
  - jwilliams 9y ago
    Because it's simply not an option. VCs raise the vast majority of money from institutional investors, not individuals. If there are individuals involved, they're high net worth already. You need to be prepared to write a $500k-$2M check and not see a return for an extended period of time. Even then, getting into a top-quartile fund with the best return proposition is going to be highly competitive. Finally, funds are relatively infrequent, so you still need to be at the right place at the right time. Either way, we're clearly describing a scenario which is well beyond the situation in the ask.

lilsoso 9y ago

I am interested in moving into enterprise software sales to move into higher income brackets. Can you recommend any companies to work for?

jwilliams 9y ago
If you've got a technical background there are a number of routes/companies. You could make the jump directly into sales, but without experience you'll have to start at the ground floor. If you take on a technical/pre-sales role you may be able to move laterally. Probably lots of companies you can do that at. Will depend more on your geography, the opportunities that are available. Generally system integrators and technical consultancies can be a good place to start looking...