Various Combinations Of $500,000 Households
1) A couple 30 year old lawyers in their fourth year at a big law firm
2) A couple 32 year old second year associates at an investment bank after business school
3) A single 31 year old VP at a private equity shop two years out of business school
4) A 35 year old senior project leader at a management consulting firm and her schoolteacher husband
6) A 46 year old Chief Marketing Officer and her 52 year old police officer husband
7) A couple online marketing consultants in their mid-30s
9) An engineer at Google who has been there eight years and his partner at Salesforce
10) A 22 year old rookie professional basketball or football player and his product manager wife.
11) A junior partner at a law firm and her Silicon Alley engineer husband
12) A Bay Area janitor and his elevator technician spouse
How To Make $500,000 And Never Escape The Rat Race
$500,000 INCOME ANALYSIS
All The Push-backs Addressed
Here are your most common responses and some further thoughts:
Pushback #1: A 40% effective tax rate is too high!
- NY State tax : (500K-18K-18K-15850)*0.0685= ~$30,700
- NY City tax: (500K-18K-18K-90K)*0.3648+3000= ~$16,700
- Social Security tax (FICA): 7347*2= ~$14,700
- Medicare: 500K*.0145 = $7,250
- Obamacare tax: (500K-250K)*.009= $2,250
Pushback #2: A $1,500,000 home is way too expensive! They should just move.
Pushback #3: Who needs two cars in NYC?
Pushback #4: $12,000 in music and sports lessons?!
Pushback #5: Having $7,300 left over is still a lot!
Pushback #6: Three vacations a year? What a joke!
Pushback #7: At least they are building a 401k balance and home equity.
Pushback #8: Where’s the line item for college savings?!
High Income = Lots Of Stress
Is there any wonder why money doesn’t buy happiness?
What if one spouse loses their job or wants to take a break from the grind?