Is $200k salary the new $100k? (millionaire, status, payment, profit)
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I think the confusion and probably snarkiness is coming from the fact that OP referred to 401k contributions as an expense. While 401k contributions reduce your discretionary income, they aren't an "expense".
Correct. Not the accounting definition, but when tracking your annual CF it is a deduction. Not even going to respond to that post, because anyone with a functional brain should understand what's going on. Literal 401K expenses don't come out of annual cash flow and most people don't even track them or notice them.
Correct. Not the accounting definition, but when tracking your annual CF it is a deduction. Not even going to respond to that post, because anyone with a functional brain should understand what's going on. Literal 401K expenses don't come out of annual cash flow and most people don't even track them or notice them.
One's ignorance doesn't mean those with knowledge don't have a functional brain. People who aren't financially savvy or just plain careless may not track investment fees, but a lot of us do. I read the thread and it seems that the previous poster referred to 401k contributions as expenses... and that's just telling in regards to the lack of financial knowledge... and as mizzourah2006 pointed out, is hopefully leading to confusion, rather than excessive expenses. But given the initial ignorance, who knows.
Brilliant post. Have to take everything into consideration.
To me, the benefits are a huge consideration. Another $10k isn't going to make that much difference in lifestyle. $100k in my area doesn't spend the same as a major city.
One's ignorance doesn't mean those with knowledge don't have a functional brain. People who aren't financially savvy or just plain careless may not track investment fees, but a lot of us do. I read the thread and it seems that the previous poster referred to 401k contributions as expenses... and that's just telling in regards to the lack of financial knowledge... and as mizzourah2006 pointed out, is hopefully leading to confusion, rather than excessive expenses. But given the initial ignorance, who knows.
Please tell me why you would track the investment fees in a company 401k. What benefit does that give you? You know what they are when you sign up and most 401Ks have extremely limited fund options.
I remember when 30k was a good salary during the early 1980's. By 1996 my goal was to earn 50k which I did. From 2011 through 2018 I earn roughly 220k a year.
I retired in 2019 to manage my rental properties. This year I should clear 180-190k in rent and cd income.
My wife and I were talking about this (money) the other day. Neither of us grew up with money and have always watched our spending. We can afford to buy what we need to the supermarket. The same with gas. But is 200k the new 100k.
Please tell me why you would track the investment fees in a company 401k. What benefit does that give you? You know what they are when you sign up and most 401Ks have extremely limited fund options.
When you have multiple 401k's fees are important. Also, the large 401k custodians like fidelity give you quite a range of options on how to invest. Fidelity has brokeragelink that lets you buy and sell individual stocks.
A better question is why one would consider investment allocation an expense? You aren't paying for something...
What I'm trying to say is $100k used to be considered a great salary, a magic number that most people strive for. Nowadays, with salaries so inflated, $100k isn't difficult to achieve so it feels like $200k is the new $100k target salary that gets you into upper middle class.
Fully 1/3rd of all US households make over $100,000. I get it, that includes couples, not just individuals, but it shows how unremarkable $100,000 income is today. That said, only 10% of individuals make over $100,000 per year, so $200k is not quite yet the new $100k, but it is coming.
We still have wage inflation from the recent severe boout of inflation.
If 200k is the new 100k, imagine what it's like for all the people making UNDER 100k! Median household income is still 70k.
Correct. However, median just splits the data set in two. It's really mode (or multiples thereof) and the skewness of the distribution that really paints the picture as to where the most folks stand.
It is way less than 70K (mode is left of center, positively skewed, possibly multi-modal distribution).
How does the media household income calculated? Is it based on all household included those house that’s not working?
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