Better off as a plumber?
- Thread starter nitro
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A boat a rich guy wouldn't be embarrassed to be seen in -- say, a SeaRay 500 Sundancer http://www.searay.com/Page.aspx/pageId/10230/pmid/213261/500-Sundancer.aspx -- with accessories & etc, costs $1m or so. What's the annual carrying cost on that? And this isn't a big yacht, just a nice cabin cruiser. Each time he fills the gas tank, $2- 3k. Winter storage, $5- 6k just for the rack space, and at least that much for tuneups. Plus a hundred other expenses... Explain to me how you live like a rich guy with the after tax proceeds of $100- 250k / year -- i.e. $50- 125k net? And the boat is just minor aspect of a rich guy lifestyle.
Actually, if you count purely by the percent of people making these wages, 250+ is not bad. See here: http://www.socialsecurity.gov/cgi-bin/netcomp.cgi?year=2009. 250k does not buy you much, thats for sure, but still, fairly small number of people in the US is making this much - just about (eyeball only) 0.8%. If you are making 1mm, there are only 5 of you in one thousand people. Sounds pretty damn rich to me, even though it's a price of a below-average 2br apartment in Manhattan.
I think there is a fair bit of visibility bias - you see a Ferrari by the Startbacks and think that anyone could get one.
Obviously your surrounding will impact your notion of what wealthy means. Hence a good beginning to get the drive to make serious buck if to mingle with wealtier people than you. it's easy to feel you are doing OK and not try to make more when living in the middle of the countryside , more difficult when you live in an area cosmopolitan and very wealthy by world standard.
Not that I feel like having a yacht, but I can easily imagine spending ten times more than what I do know. Although i spend less partying, expenses went noticeably higher with the kids.
And they're all in this thread!
It's a different subject, but I found that it's the stupid personal decisions that end up driving my spending and, subsequently, my desire to make money. The best example is how having two big dogs (I have two Central Asian shepherds) changed my life and impacted my financial habits.
I have to admit, btw, that plumbers in Manhattan are really, really costly - I was trying to get a wall faucet opened on my patio and the guys asked me for 500 dollars.
"The national average wage index (AWI) is based on compensation (wages, tips, and the like) subject to Federal income taxes, as reported by employers on Forms W-2."
If i understand correctly this data only includes wage/employee income. If this is true it is extremely inaccurate picture of "the wealthy".
Wealthy people by and large don't give a rats ass about "wage income".
Wealthy people make their money with:
-Partnership interests/profit participation
-Business income
-Royalties of all kinds
-copywrites, patents, IP etc
-Investment income (dividends, cap gains)
-Muni-bond income (tax free, one of the sweetest investments for the past 30 years with declining rates, etc)
-Trust distributions
Wage income is for the worker bees and temporarily well off (often confused with the wealthy by the middle class).
Wealthy ppl never use the term, "wealthy". They always refer to themselves as being "rich." Anyone who uses the term, "wealthy" to define their networth is clearly a small fish.
I see it this way:
"Wealthy" in someone "having wealth" meaning rich do to property interests. "rich" as a generic term includes the temporary rich, or "high income" people without much wealth (often do to very high consumer spending).
I have never known a wealthy person to refer or label themselves with regards to their wealth. So with regards to your distinction, I would not know, as I have seen neither used in the way you describe. However, I am sure that is cultural and not true of all wealthy people.
Ridiculous. I nominate this post for the top 10 dumbest posts ever on elitetrader.