People that make >$300k per year: What do you do with your money?

....,.,, wrote:

[quote]DocHollywood wrote:

What speciality makes that much out of the gate and has you done with residency and a fellowship at 30? You have literally no experience in the high paying surgery or interventionalist realms.

I believe these are all 3 year programs:

Dermatology

Radiology

Anesthesiology

I haven't read the thread but my household income is over $650K.

In short I aggressively save. I live a comfortable upper middle class life and will retire when I hit 40 with $5 mil in the bank.

Money doesn't buy you stuff. Stuff is meaningless. And travel is way over hyped. Money buys you freedom. It buys you entry into the leisure class and escape from the insanity of modern day society.

oh and the $650K/yr doesn't include unrealized capital gains which is another 2 or 3 hundred k at this point.

I like to spread it out on the floor and roll around in it. I hope I never get a pay cut because then I would have to switch to small change and that would be uncomfortable.

Hookers and blow.

Chief Marketing Officer, Fortune 500 Company

Gross income of $850k last year (HH).

Total expenses (excluding income tax) $170k

My only big indulgence is cars, I own an Audi R8 and a BMW M convertible.

Taxes $295k or about 35% effective

The rest goes to savings.

Midwesterner

3 mil in the bank wrote:

oh and the $650K/yr doesn't include unrealized capital gains which is another 2 or 3 hundred k at this point.

That seems like a very low amount of unrealized capital gains on a $5 million portfolio. Are you not letting the return compound fully?

CMO wrote:

Chief Marketing Officer, Fortune 500 Company

Gross income of $850k last year (HH).

Total expenses (excluding income tax) $170k

My only big indulgence is cars, I own an Audi R8 and a BMW M convertible.

Taxes $295k or about 35% effective

The rest goes to savings.

Midwesterner

You forgot to mention your 14' 5k. If its this year along with the above (and not just trolling) I'd be impressed. I drove fast cars a long time ago (faster than those) but the lifestyle doesn't go with running. It induces sitting on bum.

If you've not been, go to the Nurburgring in one of them.

I'm not in a terribly dissimilar environment as OP

HH gross income about 400k, some rental income on top of that

Net:

25% to tax advantaged portfolio

6% to taxable portfolio

6% to expedited debt service

35% living expenses/including charitable donations

20% fed+state income taxes

6% property/SSDI/other taxes

2% cocaine/hooker fund/this seems like a rounding error

Convexity wrote:

3 mil in the bank wrote:

oh and the $650K/yr doesn't include unrealized capital gains which is another 2 or 3 hundred k at this point.

That seems like a very low amount of unrealized capital gains on a $5 million portfolio. Are you not letting the return compound fully?

well it's not $5 million yet (see my username). and it's just an estimate, this year's gonna be more than 300 I think. dividends are fully reinvested in an easy-peasy 3(ish) fund portfolio with vanguard index funds.

but you're right insofar as I have too much cash hanging around that needs to be invested, but stocks are so expensive. we *have* to be in a huge asset bubble right now. right? right??

Haha never ran a 14 minute 5k and right now would struggle to break 20. I run to stay fit for soccer (mostly over 30 leagues).

my conclusion is that if OP can get towards/around/about:

30% savings rate of NET [after taxes], he's doing great. You dont get a lot of go-arounds in life, I'd recommend consumption smoothing //value for your spending vs living in squalor and crowing about your savings rate.

MDs are the strongest labor union in the country, your job is secure. Enjoy life

I always struggle with spending now vs. saving for later and tend toward the latter. That said, as much fun as a bigger house, faster cars, or a better vacation might be, nothing can beat feeling financially free.

3 mil in the bank wrote:

Convexity wrote:

That seems like a very low amount of unrealized capital gains on a $5 million portfolio. Are you not letting the return compound fully?

well it's not $5 million yet (see my username). and it's just an estimate, this year's gonna be more than 300 I think. dividends are fully reinvested in an easy-peasy 3(ish) fund portfolio with vanguard index funds.

but you're right insofar as I have too much cash hanging around that needs to be invested, but stocks are so expensive. we *have* to be in a huge asset bubble right now. right? right??

Dollar cost average into the market at all times. Put more into your better researched ideas when prudent.

3 mil in the bank wrote:

Money doesn't buy you stuff. Stuff is meaningless. And travel is way over hyped. Money buys you freedom. It buys you entry into the leisure class and escape from the insanity of modern day society.

What does this mean? And couldn't you avoid the insanity of modern day society by having a different (maybe lower-paying) job, something you could freelance primarily from home? Isn't leisure the result of modern day society?

People who make large amounts should end up with large brokerage accounts, retire early with no debt, and live comfortably off their investments. Because wealth grows exponentially the increase in asset value eventually overtakes income. In time, income and money worries become unimportant.

i love everyone talking about school districts school districts.

you realize genetics and parenting mean much more for intelligence and success after high school than school districts, no?

keep running on your wheels

also, the lives most of you seem to be living are deferred.

travel now.

you'll all be the slow-walking, gray-haired american tourists with limited mobility traveling AFTER you retire. Take a year or two off and esee the world and use your health. kids can pay for college or at least half of it. enjoy your life and don't hole up in your boring big house with your suv's in the driveway watching tv every night

don't put it off, that's lame and not making the most of this wonderful world

To the guesser on the residency length. 3 years for Derm and anesthesia are both after 1 year internship for 4 years (plus optional fellowships that improve income for an additional year)> radiology is 1 + 4 + fellowship for most to be 6 years.

as to the correction, where else are people going to put their money - rental real estate?