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What does 'rich' mean? If you mean upper-middle class then 4 and 5 are out of the question If you mean upper class (top 1%) even 3 is out of the question. 50

by veyron 15y ago

What does 'rich' mean? If you mean upper-middle class then 4 and 5 are out of the question If you mean upper class (top 1%) even 3 is out of the question. 500K a year is upper-middle-class in jersey and middle-class in manhattan. And after all of those expenses, you would be lucky to save 100K of that after taxes If you mean `rich` (i would define rich as having enough money not to need a paycheck from another company -- maybe 10M in the bank is a good threshold) then 1 and 2 are the only ways to go One thing to note: taxes are a pain. Most people in that 200-500K range are stiffed by the AMT (why I had to pay AMT at 22 is beyond me)

deleted 15y ago
[deleted]
usaar333 15y ago
What is someone (I assume we're talking an individual) is spending on to be left with only 100k? After taxes you should have earned something like $280k to $300k; $180k to $200k is a hell of a lot to spend a year. I also imagine you are using a high standard for upper middle class. If you use even top 10%, you are talking professionals earning > $75,000 which most programmers hit at any company (at least in the Bay Area).
- veyron 15y ago
  Ah ok I was under the presumption we were talking about a family here (because the numbers mean something completely different if we are talking about one person -- who doesnt need a large house -- versus a family -- who needs more space and has other expenses) I assume you want to have a family one day :)
maigret 15y ago
250k/y is rich, even in NY http://voices.washingtonpost.com/ezra-klein/2010/09/even_in_new_york_city_250000_i.html http://voices.washingtonpost.com/ezra-klein/2010/09/even_in_...
- veyron 15y ago
  rich is not measured as a percentile! If you take rich as a percentile, then yes 250k is rich. If you take an absolute measure of rich and compare cost of living, 250K is really not that much. Especially after taxes and the ilk.
  - maigret 15y ago
    Somehow over the last 10/20 years, the notion of "rich" has had a much bigger inflation than the rest of the world, this is particularly true in the US. If your definition of "rich" is not needing a paycheck, then 2M with 2% interests over inflation should be enough to live OK in most countries except maybe Switzerland, Denmark or Norway.
    - veyron 15y ago
      The rub is in the statement " 2M with 2% interests over inflation", which is harder to sustain over terms over 10 years.
      - maigret 15y ago
        OK... I have two answers to that. First, when you are rich, it is easier to get a better return on investment. Because you can afford better advisors, and because you work with higher volumes, bringing the transaction costs down, and possibly accessing to expensive investment products other can't afford. There are many articles on the rich getting richer, I will not post another one here. Then, second point... Let's say you just get the return as high as the inflation... You still have a 2M pie you can eat from :) That would mean for example 50000$ a year during 40 years, augmenting pair with the inflation. I don't know well in other countries, but for me that would be enough to let the state retirement come. That wouldn't be the millionaire life but quite enough to enjoy my life with what I'd like to do. But for now I rather work and code/design things that matters :)
        veyron 15y ago

by veyron 15y ago

deleted 15y ago

[deleted]

usaar333 15y ago

What is someone (I assume we're talking an individual) is spending on to be left with only 100k? After taxes you should have earned something like $280k to $300k; $180k to $200k is a hell of a lot to spend a year. I also imagine you are using a high standard for upper middle class. If you use even top 10%, you are talking professionals earning > $75,000 which most programmers hit at any company (at least in the Bay Area).

veyron 15y ago
Ah ok I was under the presumption we were talking about a family here (because the numbers mean something completely different if we are talking about one person -- who doesnt need a large house -- versus a family -- who needs more space and has other expenses) I assume you want to have a family one day :)

maigret 15y ago

250k/y is rich, even in NY http://voices.washingtonpost.com/ezra-klein/2010/09/even_in_new_york_city_250000_i.html http://voices.washingtonpost.com/ezra-klein/2010/09/even_in_...

veyron 15y ago
rich is not measured as a percentile! If you take rich as a percentile, then yes 250k is rich. If you take an absolute measure of rich and compare cost of living, 250K is really not that much. Especially after taxes and the ilk.
- maigret 15y ago
  Somehow over the last 10/20 years, the notion of "rich" has had a much bigger inflation than the rest of the world, this is particularly true in the US. If your definition of "rich" is not needing a paycheck, then 2M with 2% interests over inflation should be enough to live OK in most countries except maybe Switzerland, Denmark or Norway.
  - veyron 15y ago
    The rub is in the statement " 2M with 2% interests over inflation", which is harder to sustain over terms over 10 years.
    - maigret 15y ago
      OK... I have two answers to that. First, when you are rich, it is easier to get a better return on investment. Because you can afford better advisors, and because you work with higher volumes, bringing the transaction costs down, and possibly accessing to expensive investment products other can't afford. There are many articles on the rich getting richer, I will not post another one here. Then, second point... Let's say you just get the return as high as the inflation... You still have a 2M pie you can eat from :) That would mean for example 50000$ a year during 40 years, augmenting pair with the inflation. I don't know well in other countries, but for me that would be enough to let the state retirement come. That wouldn't be the millionaire life but quite enough to enjoy my life with what I'd like to do. But for now I rather work and code/design things that matters :)
      - veyron 15y ago