this post was submitted on 19 Mar 2024
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[–] [email protected] 187 points 5 months ago (2 children)

$1 million = 23.8 years of teaching at $42K/yr.

[–] [email protected] 78 points 5 months ago (2 children)

Add in that id you don't blow it all, you get to count the interest income. A long term investment gets about 6-7% per year. That's actually more than the teaching job pay.

[–] [email protected] 15 points 5 months ago (1 children)

To go the other way, her tax bracket is a lot higher than the base salary alone would be. And if it's $1m in a year, almost all of that will be in the highest bracket.

[–] [email protected] 44 points 5 months ago* (last edited 5 months ago)

If shes single, her combined effective federal and Missouri income tax is around 40%, so she took home roughly 600k. If she's married, then her total effective tax is 25%, so she took home 750k.

For the 600k investment at a conservative 4%, which right now you can get in some savings accounts, her interest alone would be 24k/yr. For the 750k, it would be 30k/yr.

With a more realistic return of 7-8% in today's high interest rate markets, both of those sums would net more than her old salary of 42k/yr.

[–] [email protected] 3 points 5 months ago

A long term investment gets about 6-7% per year.

Much better than that in the current market

[–] [email protected] 28 points 5 months ago (1 children)

Brb selling pictures of my balloon knot.

In all seriousness though, I don't blame her one bit

[–] [email protected] 4 points 5 months ago

You'll forgetting rule one