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Updated on Tuesday, November 25

#20171

OMG: My goal in life is to have a household income of at least $521,411. That way I will be in the top 1%.

39 comments

  1. Only a person both impoverished in mind and money would care so much about being in the "1%". Money is overrated, get to a comfortable level and try and fulfill yourself, this is coming from someone who has more money than you could imagine

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    1. I just want a big house and fast cars

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    2. What if fulfilling myself is by being in the top 1%? What then? Quit judging me. This is coming from someone who has more money than you could imagine.

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    3. 1.b Protip: its not.

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    4. Holy shit judgmental much? There's nothing wrong with wanting to make a lot of money.

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    5. 1.c Protip: It is.

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    6. 1.b sounds very insecure. I guess all that money doesn't buy confidence.

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    7. You guys do know 1b is clearly mocking 1, he even copies the sentence that 1 wrote.

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    8. OP here, just to be clear, I am 1a in this, no one else.

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    1. MINK, polygamy bud (M is for multiple)

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  3. Could not agree more, see you on the other side future neighbour

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  4. I picked my nose and ate it.

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  5. My goal on life is to not die by choking on my own vomit.

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  6. Only before you pay taxes.

    If you made all of that in salary, you'll be left with about $220k... around 44% of what you *theoretically* make.

    You want to know how the 1% get to where they are? It's simple - they do it one of 2 ways:
    ->Make so much money that your after-tax amount is still unbelievable (think: CEO's with 7-figure salaries); or
    ->Own a relatively successful small or medium sized business. Set your salary relatively low (put yourself in the second-highest tax bracket), and pay yourself in dividends (which, as investment income, are taxed at almost nothing). Also, expense what you can to the corporate account directly. The result? You have a salary of about $60000/year, pay maybe a third of that in taxes, and get to net about $2 million annually (depending on the size of your business).

    For that latter option - as taxes fluctuate, just adjust what comes out as a dividend (which you'll be paying corporate tax on), and what comes out as a salary bonus (which you'll be paying income tax on). If taxes become unreasonable, just reincorporate your business offshore.

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    1. It's not that simple but yes essentially this.

      No one ever became wealthy by working for someone else.

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    2. 1. If OP was actually referring to before tax income of $524,411, then after tax would be at 291k in Ontario. http://www.ey.com/CA/en/Services/Tax/Tax-Calculators-2014-Personal-Tax

      2. "You want to know how the 1% get to where they are?..." Haha, no. The best way by far is to inherit. That's where the 1% get their money from.

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    3. 6 here again.

      6a -> you are quite correct, of course. It's not *quite* as simple as I describe in my post, but the essentials are basically true - at least true enough to get the point across.

      6b-> Yes, inheritance is certainly a source of wealth for quite a few people. I'm sorry for overlooking that. Though admittedly, a lot of those inheritances are FROM people who did one of the two things I described (usually the second one, since it lends itself to building personal savings a little more easily).

      That said, do you see something wrong with inheritance? I sure don't - if I made money during my life, I should get to choose where it goes when I die (assuming it's all after-tax dollars and all my debts have been paid off).

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    4. 6b Most of the 1% are self made bud. Modern technology has made it possible for people to become exceedingly wealthy through their own merit

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    5. The $524,411 is also household income, so there are two sources of income.

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    6. LOL @ this idiot who thinks dividend and investment income is taxed at "almost nothing". You just get credits for those income because the corporation first paid corporate tax on those income before they paid it out to you (hence double taxation). At the end, you still end up with the same amount as if you earned it through employment income (45% at the top bracket).

      And even if all that was salary, you'd still end up with 65% plus.

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  7. Heavy left response to inheritance: https://www.youtube.com/watch?v=6Xa9T2OMzmw

    Slightly less left, and much more funny: https://www.youtube.com/watch?v=LfgSEwjAeno (inheritance is mostly dealt with in the second half of this video)

    Huge sums of wealth passed on generation to generation make it increasingly difficult for others to make their own wealth. It's easier to make money when you have money. Each iteration increases the wealth gap.

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    1. Inflation takes care of a lot of that in the long run anyway.

      Unfortunately, I don't think there's a very good solution. At one point the UK had its inheritance tax cranked up to over 90%... the result was actually *less* revenue for the government, as most of the super-rich were forced to sell their family estates and move the bulk of their money offshore. Truth is, in the end most of them just left the country.

      The only *real* solution, IMO, is to...
      ->Provide incentives for those with large sums of money to put large amounts of that money towards charitable purposes/community services, thus redistributing wealth.
      ->Foster an economy that incentivizes individuals to spend their wealth, rather than to hoard it, thus growing the economy and redistributing wealth.
      ->Look at ways to improve the conditions for equal opportunity - make it easier for those without money to make money, without necessarily making it easier for those with money to make money at the same time. (As 6d pointed out, modern technology has helped with a lot of that - just look at the successful startups that come out of uWaterloo!)

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    2. 6 here, I disagree that inflation takes care of a lot of the inheritance. In general, people don't through their money under their beds and sit on it. If you have millions and billions, you invest. And investment, in the long run, more than makes up for inflation. By a lot. This is how the wealth gap not only goes away, but gets worse each generation.

      Also, money can buy lobbying power, which then influences policymakers to favour the wealthy. Money gives you power which gives you more money.

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    3. 7b, I'll concede the first paragraph, but the second only in the case of the USA. Lobbying in Canada is a very different game, and money in politics is far less of a factor here than it is there. As a result, all our politicians largely target their efforts towards courting the middle class... they just have different ideas of who the middle class is, what they will vote for, and what will cause them to grow.

      But while the super rich might inherit wealth, most of that upper middle class (I'm talking the $300k-$500k net annual income range here) really is self-made.

      Regardless, my 3 suggestions made in post 7a are still valid.

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  8. I am a 2nd year student and I agree with the OP to an extent. I mean, it isn't my only goal, but I certainly want to make more than 500k a year. There is a very strong correlation between happiness and money. Correlation is not causation, but still it means we should ponder.
    http://online.wsj.com/articles/can-money-buy-happiness-heres-what-science-has-to-say-1415569538
    Also, just make sure you manage your money wisely. I may only be 19, but I have made over $50,000 a year for the last four years. I saved over $30,000 a year and I am investing it for retirement. If I can keep this up to age 50, I should be able to withdraw 4% of my investment a year for retirement, or about 500k a year.

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  9. Where are you people getting your statistics? As far as I can find top 1% in Canada is around 190k, top 1% in US is 390k. In New York it's closer to OP's number, but adjusting for cost of living it's probably not that much different.

    Also, business/company owners average less than 100k in the US.

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    1. Keep in mind he said household not personal income.

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  10. It's nice knowing I wont have to do all the squabbling like all of you to be ridiculously wealthy, thanks dad.

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    1. Woah a rich kid that's entitled. How unique and fascinating.

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    2. Nah I'm pretty down to earth haha, just letting the OP know he's nothing special really. Sorry if I came off as entitled.

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  11. Who hasn't been offered jobs that threshold? It's no big deal really. If you have the brains you can achieve such easily. All one needs to do is to take it from the spoiled, rich kids who have no clue how to manage money.

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    1. Might I ask what job a UW student can have coming out of university, other than running their own business, and hope to make anywhere close to 500k? Maybe the top of his class nano-engineer might get a job for 250k just out of university and that is quite gracious.
      I posted post number 8, I have talked to a lot of engineers and business student, nobody says you can make 500k, they are all talking an average of 60-80k, and after 4-5 years work experience, maybe 120k.
      Also, this statement in my mind shows a huge lack of knowledge as to how wealth is created: "All one needs to do is to take it from the spoiled, rich kids who have no clue how to manage money." Wealth creation is very rarely a zero or negative sum game, it is usually created by building equity or by earnings capitalization, neither of which constitutes "taking from rich kids who have no clue how to manage money."

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    2. write a series of reports that accurately predict the economic future of the country

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    3. You don't make money by taking it from the rich kids, there are not enough of them. You make it by taking money from the poor people. The wealthiest people in history have made their fortune by selling cheap goods/services to the poor instead of expensive ones to the rich. One of the wealthiest people owned the rail network into New York City (I think it was NYC) and tickets were cheap, but essential to anyone who worked in the city and couldn't afford to live there.

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  12. ^ Uhhuh, I'll do that, along with creating world peace and solve world hunger...

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    1. I did such a thing. It has opened numerous doors for me. Perhaps one should use their brain and think for themselves instead of following the herd.

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  13. At this point, I'm aiming to have enough income so that "living within my means" includes rubbing warm oil all over my body and rolling on a tarp with swingers.

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