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I'd say that a person who has maxed out at $150K/year from their job alone has probably figured out how to generate an additional $50K/year to $100K/year from investments, part-time income, rental properties and other sources.
In order to generate $50K per year in interest at 5% (which is more than you can earn right now) you need to have about a million dollars put away. In order to put away a million dollars (assuming 5% interest) a person would have to save almost $80K per year. Not possible on $150K per year pre tax.
I worked in finance as an exec./sales assistant with a B.A. in psy and made close to 50k at the time I left. I was in mid-late 20s then. I now have a MS in EDU, which I have yet to use, since I am currently staying home with my child. You can do pretty much anything with it. There were a few analysts who had a liberal arts degree at my last job too.
I worked in journalism with an English degree. My particular publisher preferred English degrees to journalism degrees.
Well I have a degree in History and well i am about ready for my masters in something else which is where I am stuck at now and I have thought about making a thread about it here. I really thought that History was at the bottom of the totem pole in liberal arts degrees, but then I found a recent article that said general studies/sciences were paid the most and then history and then everything else. I wonder what jobs those history majors are working? I did read one post by a guy that used to post on here and he got a pr job and that's all he has is a bachelor's in History.
In order to generate $50K per year in interest at 5% (which is more than you can earn right now) you need to have about a million dollars put away. In order to put away a million dollars (assuming 5% interest) a person would have to save almost $80K per year. Not possible on $150K per year pre tax.
Maybe I define "income" a little differently than most people.
I consider making a profit in the stock market as income, for example. Of course, this is much easier to do when the market is headed up strongly - as it has been during the last 4 years.
Maybe I define "income" a little differently than most people.
I consider making a profit in the stock market as income, for example. Of course, this is much easier to do when the market is headed up strongly - as it has been during the last 4 years.
You still need to commit a chunk of capital to the stock market to make that much money in one year. The S&P 500 made 13.4% last year. In order to generate $50K per year in gains you would need to have around $373K invested at that rate.
I think your perception of how rich a person with an income of $150K is is out of whack with reality.
You still need to commit a chunk of capital to the stock market to make that much money in one year. The S&P 500 made 13.4% last year. In order to generate $50K per year in gains you would need to have around $373K invested at that rate.
I think your perception of how rich a person with an income of $150K is is out of whack with reality.
It's not unusual for a person who has maxed out their income at $150K (say, into their 40s) to have around $373K available for investing in the stock market. I think that's a reasonable expectation. Plus, some people are able to generate returns that beat the S&P 500.
It's not unusual for a person who has maxed out their income at $150K (say, into their 40s) to have around $373K available for investing in the stock market. I think that's a reasonable expectation. Plus, some people are able to generate returns that beat the S&P 500.
How many years do you think that it takes for someone to amass $373K? I think it is pretty unusual for someone making $150K per year to be able to save that much money over a short period of time. Remember most people don't start off making $150K per year. They have to work up to that number. $150K per year is a nice healthy income that can bring a comfortable lifestyle, but it isn't an income that makes a person extremely wealthy.
Location: NYC based - Used to Live in Philly - Transplant from Miami
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Alot of time, people get their jobs not based on their diplomas that they have; but rather on several factors; some are good - some are bad.
For a good example, one of the financial forecaster in our group at work majored in English. She started as a secretary, due to her look (pretty) and the fact that one of her friend works in the company. IN about a year, there was a job opening in the company and she proved herself to be a formidable employee. She got the position.
Another bad example is how this guy in our company got promoted to be the head of engineer because he goes to strip joint with the "right" people. He was an engineer in the first place. But he sucked in what he is doing. (yes alot of us despise him in the company because of that).
Yeap unfortunately life is full of unexpected outcomes.
I hope this is related to the topic!
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