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A single guy making $300k would probably end up with around $150k, after taxes and so on. What is that, just a little bit more than $10,000 a month? Trust me, it's not hard to spend that much, especially if you live in an expensive city and take a few nice vacations every year. While I've never made $300k, I've definitely been through times when I spent money at that rate. It was easy to do.
No matter how much money you make, you can always find a way to spend it. If you aren't smart with your money then you will see it go up in smoke. I don't make even close to that, but I do make good money for my age and for being single. I always could use "a little bit more".
I remember watching an interview with Evel Knievel years ago where he was talking about how much money he blew through back in the day. He brought up the fact that Garth Brooks had stated that he had made so much money that his grandchildren wouldn't be able to spend it all in their lifetimes; his response to that idea was along the lines of "Hey, Garth, let me have your checkbook and we'll see how long that money lasts."
A single guy making $300k would probably end up with around $150k, after taxes and so on. What is that, just a little bit more than $10,000 a month? Trust me, it's not hard to spend that much, especially if you live in an expensive city and take a few nice vacations every year. While I've never made $300k, I've definitely been through times when I spent money at that rate. It was easy to do.
Taxes on 300K are nowhere near a 50% effective rate. Not.Even.Close.
Originally Posted by pinipig523 View Post
In addition, I make sure my 401K is beefed at $50K/yr
There is a catch up after 50 years old, I think it's $5k and his company can be matching his contribution. He could also be counting a wife contribution.
Taxes on 300K are nowhere near a 50% effective rate. Not.Even.Close.
If you live in NYC, California, etc. the taxes on your last 100K will top over 50%. But you're correct, the overall tax rate you pay will be in the 30s, of course minus any 401K contributions and your phased-out deductions.
There is a catch up after 50 years old, I think it's $5k and his company can be matching his contribution. He could also be counting a wife contribution.
Max 401K contribution TOTAL, both employee AND employer, is roughly 51K (I'm too lazy to look up the exact number now). That is usually what individuals are referring to when they mention the 50K+ amount. IIRC that is NOT including the 5.5K or whatever it now is over 50 catch-up.
Yes, most jobs have a limited employer match and so we usually just think in terms of the 17.5K plus possibly the over 50 catch-up.
If you live in NYC, California, etc. the taxes on your last 100K will top over 50%. But you're correct, the overall tax rate you pay will be in the 30s, of course minus any 401K contributions and your phased-out deductions.
At 300K you still fall short of 50% at the marginal level, although it'll be closer. In fact, even at 500K+, you may not QUITE crack 50%, although that's a tough call (medicare at 2.35% on wages, 39.6% fed, state taxes are high but deductible but there's the pease limitation). It is close enough that I wouldn't argue with 50% as an approximation in CA or NYC for top marginal rate.
Otherwise we're in agreement, which means 300K gross is likely a touch north of 180K gross, which means 15K/month "take home" (again, there's possible 401K or insurance or whatever). That's a substantial chunk even in NYC or SF, albeit not the near potentate level one could live at in, say, Tulsa OK.
If you live in NYC, California, etc. the taxes on your last 100K will top over 50%. But you're correct, the overall tax rate you pay will be in the 30s, of course minus any 401K contributions and your phased-out deductions.
I was thinking NYC or California. I was also thinking federal, state, local, etc. And I wasn't trying to be exact. My point was that $300K isn't really $300K.
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