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Median Household Income

4,334 Views | 28 Replies | Last: 8 mo ago by BenTheGoodAg
DeProfundis
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I saw a survey the other day that said that in the USA the top 1% of households had a median income of $1,200,000 a year. Granted, I'm sure many of those are in New Jersey and California where cost of living inflates salaries but I thought that level of household income would be MUCH MUCH less prevalent than 1 in 100.

Have salaries gotten that high? I know that $100k is pretty much guaranteed for someone with a college degree who has been out of school for about 8 years or so, but had thought the $300-500k range was still rarified air and the upper range of that threshold was sniffing the "rich" territory if they were in a state with a decent cost of living.

Two workers bringing in $600k/ea or whatever combo makes $1,200,000 a year I thought would be on the level of 1 in 10,000 or so.

What sorts of jobs make that kind of money now? I own a company in the manufacturing business and most of my middle managers make in the Mid 100's, my upper managers in the High 100's to low 200's, and my VP- Director level guys in the Upper 2's. I had thought that was pretty damn good pay, but maybe that's fairly pedestrian now
AJ02
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AG
DeProfundis said:

I know that $100k is pretty much guaranteed for someone with a college degree who has been out of school for about 8 years or so


I think that depends highly on your degree and career path. I don't think that salary is pretty much guaranteed if you have a college degree and 8 years. Think of all the degrees besides the high-earners in the tech field. Educators, social workers, psychology degrees, accounting (without an MBA), etc.
DeProfundis
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AJ02 said:

DeProfundis said:

I know that $100k is pretty much guaranteed for someone with a college degree who has been out of school for about 8 years or so


I think that depends highly on your degree and career path. I don't think that salary is pretty much guaranteed if you have a college degree and 8 years. Think of all the degrees besides the high-earners in the tech field. Educators, social workers, psychology degrees, accounting (without an MBA), etc.
Yes, of course you're right I misspoke. I was focusing a little too narrowly on my industry, obviously the huge number of aggie teachers and coaches out there will probably never earn $100k even though I'm sure they deserve it.

cevans_40
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DeProfundis said:

I saw a survey the other day that said that in the USA the top 1% of households had a median income of $1,200,000 a year. Granted, I'm sure many of those are in New Jersey and California where cost of living inflates salaries but I thought that level of household income would be MUCH MUCH less prevalent than 1 in 100.

Have salaries gotten that high? I know that $100k is pretty much guaranteed for someone with a college degree who has been out of school for about 8 years or so, but had thought the $300-500k range was still rarified air and the upper range of that threshold was sniffing the "rich" territory if they were in a state with a decent cost of living.

Two workers bringing in $600k/ea or whatever combo makes $1,200,000 a year I thought would be on the level of 1 in 10,000 or so.

What sorts of jobs make that kind of money now? I own a company in the manufacturing business and most of my middle managers make in the Mid 100's, my upper managers in the High 100's to low 200's, and my VP- Director level guys in the Upper 2's. I had thought that was pretty damn good pay, but maybe that's fairly pedestrian now

You hiring?
Matsui
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AG
No joke
DeProfundis
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Yeah but nothing you'd be interested in I'm sure. $22/hr night shift work in a rubber and urethane plant on the far NW side of Houston
Naveronski
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AG
I'm curious, but also those are some neat numbers.
Jason_Roofer
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Our top salesmen, let's say the best 25 in the company, will have annual commissions of 250,000-1,600,000. This is not an even or linear distribution.

Our salesmen email list has over 200 emails that we purge quarterly. As evidenced above, most aren't doing much of anything. Several of those are hitting 6 figures but most are making non living wages for various reasons.
CuriousAg
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Tech is the new O&G, when things are good they are great, when they aren't there is a good chance your company is doing RIFs.

Touching the upper limits of the pay range is feasible as mentioned above, but to do it year over year isn't as I am learning. 6 figure swings in pay is common as there is no guarantee you are working for a unicorn.

Tech is an outlier as mentioned above. Overall I think the gaps between each percentage point is only increasing. Cost of living is destroying what used to be "good pay". A couple pulling low 6 figures with two kids isn't the same anymore.

Ps - sign me up if you need a closer in dfw. Currently in tech saas space. Will sell rubber erasers if there is a line of site to the pay.
jh0400
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AG
The median of the top 1% is an unclear way to say Top 0.5%. I'm not sure what's surprising to know that 99.5% of US households have a household income of less than $1.2MM.
LoneStarAg17
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AG
agnerd
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AG
May involve the difference between income and salary. I'd be interested to know within that 1%, how much of the income is salary and how much is investment income. It also might be that the 1% has a lot of old people with $10 million portfolios that are raking in the earnings.
DeProfundis
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LoneStarAg17 said:

I'll throw in my experience, would love to hear if this is average pay or not:

My wife ('16) and I ('17) have a combined income of ~$310,000 before bonuses.

She was a business major, works in consulting, $170,000 salary.

I was an Industrial Engineering Major, currently lead a project management department of 5 in manufacturing, $125,0000 salary.

My team of PM's range from 1-5 years work experience and make between $65-90K a year before bonuses. They have no direct reports, other than cross department communication and general PM responsibilities.
This is the kind of stuff I'm talking about. Those used to be gigantic salaries that a business professional might hit after 20-30 years in the chair. You guys are barely (if even) in your 30's.

I'm not even that old of a dude, I'm older than you but I haven't hit 40 yet.
texasaggie2015
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AG
Yeah, this thread makes me feel like a colossal eff up lol
HollywoodBQ
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Consider that Houston ISD is starting teachers with no experience at $61,500.
If you teach in a "high need" field like Math or Bilingual, there's another $5k/yr on top of that.
https://www.houstonisd.org/cms/lib2/TX01001591/Centricity/domain/50243/salary_tables/2023-2024/2023-2024%20-%20Non-NES%20and%20NES-Aligned%20Campuses%20Teacher%20Placement%20Table.pdf
texasaggie2015
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AG
I'm definitely doing something wrong lol
bmks270
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DeProfundis said:

LoneStarAg17 said:

I'll throw in my experience, would love to hear if this is average pay or not:

My wife ('16) and I ('17) have a combined income of ~$310,000 before bonuses.

She was a business major, works in consulting, $170,000 salary.

I was an Industrial Engineering Major, currently lead a project management department of 5 in manufacturing, $125,0000 salary.

My team of PM's range from 1-5 years work experience and make between $65-90K a year before bonuses. They have no direct reports, other than cross department communication and general PM responsibilities.
This is the kind of stuff I'm talking about. Those used to be gigantic salaries that a business professional might hit after 20-30 years in the chair. You guys are barely (if even) in your 30's.

I'm not even that old of a dude, I'm older than you but I haven't hit 40 yet.


Things are way more expensive.
Everything costs nearly 2x what it did 10-15 years ago.

So yea the numbers get bigger but the buying power doesn't change as much.
HollywoodBQ
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texasaggie2015 said:

I'm definitely doing something wrong lol
You could always join the Army and go to OCS. 2LT pay for a brand new Commissioned Officer is $45,914.40. It was only $18k / yr when I started 30 years ago.
https://www.dfas.mil/MilitaryMembers/payentitlements/Pay-Tables/Basic-Pay/CO/

Pretty mind boggling that I now earn about as much in one month as I did in a year as a Tank Platoon Leader. Of course as has been pointed out on this thread, being a tech bro these days is a crap shoot with respect to layoffs. It's just a matter of when, not IF.
500,000ags
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Some of this is also about:
1. Coming out of school at or near a time when labor is short
2. Making a pivotal move when labor is short

I know a few people that 2x their already solid salary from 2018-2019 to 2021-2022.

It's going to be interesting how that cohort does going forward. I can see people's salaries actually going down after becoming a layoff target due to compensation. Those that got better experience with the higher comp will likely have a high-riding wave of a career and career earnings.
JobSecurity
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AG
Years ago there was a salary history thread on here. Would be fun to bump that and see where people are today
JBLHAG03
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My wife is a teacher with a masters degree and 20 years experience and makes barely over $60k. My income has more than quadrupled in the same time frame. Definitely sucks for teachers.

zooguy96
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JBLHAG03 said:

My wife is a teacher with a masters degree and 20 years experience and makes barely over $60k. My income has more than quadrupled in the same time frame. Definitely sucks for teachers.




Yeah, just left teaching, and similar situation. The pay sucks.
I know a lot about a little, and a little about a lot.
evestor1
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I have a hard time believing many people outside of NYC / SF / LA / DC make 300+ salaries. Definitely make that much after bonus and commissions, but salary alone seems suspect.


I saw a guy ask for 378k as a salary a few weeks ago and looked confused when the interview was over. I wonder if he is going to find that salary elsewhere.
ag94whoop
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I think its all over the place. Its very industry sensitive.
Energy and tech pay like crazy. Financials can as well.
Other industries pay WAY less.

I USED to make a very respectable salary starting say 15-20 years ago. Made what was probably considered pretty solid money for more than a decade. Then the industry I was in had a flattening and the salaries for highly sought after people started falling and more youth was brought in. Now those same jobs pay 25% less but most other industries are paying 50% more.

In the end, I decided it wasnt worth it to chase the almighty dollar. I semi-retired, do what I want and try and keep cost of living down.
AJ02
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Yeah, very industry-specific. First job out of college was with a major RR. Paid very well, which is not surprising. Seems like a lot of the heavy union industries pay pretty well. But the hours and job itself was hell. I didn't want to do it, so I took a 45% pay cut to get into the career field I wanted, in the private sector. Just your average job/company. Not in tech, O&G, etc. Pay sucked. $30k a year after graduating.

But I finally had the "experience" they required to continue to get better and better jobs. I've now done this same job but in different industries. By far, O&G has paid me the most. But the trade off is the higher risk of layoffs. Medical devices paid pretty well, but not as well as O&G. Consumer goods paid the lowest.

So literally the same job, in different industries, can amount to an almost six figure difference in pay.
CapCity12thMan
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if you are to try and guess what people make in salary based on how they live, then yes, everyone but you is making $500k+ per year.

mm98
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I'd be interested in looking at that survey in the OP

IIRC For the past few years 400K based on IRS filings would put you in the top 1%
DeProfundis
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mm98 said:

I'd be interested in looking at that survey in the OP

IIRC For the past few years 400K based on IRS filings would put you in the top 1%


I've been looking for it but can't find it again. The number I've seen for top 1% is $650k
BenTheGoodAg
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FWIW - some data:

Individual, Household
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