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How does the media household income calculated? Is it based on all household included those house that’s not working?
US Census, Community Survey.
IRS has all the data for what's considered income and it is well defined.
The issue is not if the data collected are correct (they are a good approximation). The problem is people misunderstanding what median represents.
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...
Why would you have multiple 401Ks? That's ridiculous. You can just roll them into IRAs for any past employer.
From an solely an accounting perspective it's not an expense. It's a deduction in available cash flow. A mortgage payment also isn't entirely an expense. There's an interest expense as well as a reduction in the loan balance (principal payment) which is not an expense. But any person doing cash planning or household budgeting would call the entire mortgage payment an "expense" because that's the amount that needs to get paid each month.
This really isn't a complicated concept, but hey, whatever makes you happy. Go for it. This is clearly why you're a lawyer and I work in finance. We worry about stuff that actually matters. Lawyers just want to waste everyone else's time and rack up more billable hours.
Location: East of Seattle since 1992, 615' Elevation, Zone 8b - originally from SF Bay Area
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Quote:
Originally Posted by 2Navigate
US Census, Community Survey.
IRS has all the data for what's considered income and it is well defined.
The issue is not if the data collected are correct (they are a good approximation). The problem is people misunderstanding what median represents.
There is going to be some percentage of error due to the underground economy, of course. The IRS doesn't know about the income of the drug dealers, human traffickers, organized theft gangs, or those that barter. I had a business for 16 years and people would often trade services for that of another company with no record of it. For example, you rebuild the engine in a truck for a window company and they put new windows in your house.
I would also say that $2 million is the new $1 million.
If you want to buy a nice house in a desirable neighborhood of a high COL city or metro area, you’re going to be looking at a price tag of around $2 million to start.
I would also say that $2 million is the new $1 million.
If you want to buy a nice house in a desirable neighborhood of a high COL city or metro area, you’re going to be looking at a price tag of around $2 million to start.
But most of those purchases probably aren't being funded by typical W-2 income.
They're largely being funded by options and stock grants by people well-connected in very profitable firms. People vest in a big option and that's the downpayment.
There are going to be exceptions - the very rich, very high earning couples, trust fund babies, but not many people are buying in San Francisco and similar markets on locally owned typical W-2 wages.
Location: Formerly Pleasanton Ca, now in Marietta Ga
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I think the op is correct. When I hit a millionaire status my life wasn’t anything like I thought a millionaire lifestyle would be like. My life didn’t change at all it seemed.
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