Income That Puts You In The Top 1%, 5% & 10%

Once we hit the top 10% we got out of debt and paid off our mortgage. We started stacking up our retirement savings. Then we retired early. We live a very modest lifestyle.

Income is not a predictor of wealth. Many pro athletes that made millions went BK. It’s now how much you make. It is about how much you keep.

I've had some really good earning years (sales guy - my income fluctuates from year to year) and I can say that anyone who thinks being in the top 10% (by Erin's numbers) will be life changing would be surprised to find out it really isn't. Also - you would be surprised to find out how fast you adjust to that income level at which point it feels "normal" to you. Bottom line - live within your means, whatever that is, and be happy with what you have!!

I don’t need to be in the top ten percent, but more income is always nice😂!

Very good info, but another topic you might want to cover is how well off are you in that 90 - 95% group in various locations in the county. If you are making $130k small town Michigan, your dollar goes a LOT farther than in SF, NY, or even Ann Arbor, here in Michigan. I had a coworker about 10 years ago, who left our company for a big raise out in California. Talking to him a couple years later, he felt that he went backwards financially, because along with the raise, came a huge increase in Cost of Living. Another question, for those in that 90 - 95% range, where do they live. As with my coworker, the reason he got rhat large raise to move, is because companies in California generally must pay more to get the same talent as a company in Michigan.

Thank you Erin!

Agree on further cuts to the groups as the numbers get skewed so much. Regardless it’s eye opening for folks to see. Social media has really distorted what the average person is earning and this helps shed light on the realities

Income is important - wealth is what matters!

It’s amazing to me to see that this is all the income you need to have to be in the top 10%. I have been in this group since 2019 and am surprised even being in this income range that I am only in the 22% tax bracket (I’m married and have some non taxable income). However even being in the the top 10% there are 4 more tax brackets above me.

Another great video. I feel very lucky and blessed because I made it to an income near the average of the top 5% incomes in the final 4 years of my career. Due to good savings/investment habits, I will retire with an income close to the average in the top 10%. We are truly blessed and wish the same success for everyone else.

I think using average instead of median is not really helpful, it’s always going to skew upward doing this.

I agree that lumping the 90% together is unsatisfactory. According to the Census bereau, the 2021 household income limits by percentile: Bottom 10th: $15,660 20th: $28,007 30th: $40,542 40th: $55,000 Median: $70,784 60th: $89,744 70th: $113,210 80th: $149,131 90th: $211,956 95th: $286, 304 Source: "Income in the United States: 2021" Table A4-a "Selected Measures of Household Income Dispersion: 1967 to 2021"

I retired 12 years ago with a final income of about &140-150K/yr. I was a mid-level engineering manager with 30 years experience.. I imagine that today an engineer in the later stage of their career could get in into the top 10% with that $167k income. The part about half of people in this income range living paycheck-to-paycheck is completely about lifestyle choices. Particularly if they are in a marriage with a working spouse. Choices people! Choose a better career field. Live below your means.

I've earned very little over my life. I grew up poor. In my 20s I was either enlisted military or in college. In my 30s, in a mediocre paying career, so I went back to college at 40 to get an MBA. Landed a good job in oil and gas but shortly thereafter there were industry wide layoffs. Spent 3 years unemployed. Now, for the first time in my life I have a good salary. Having lived poor most of my life I'm REALLY good at not spending. I save over half of my $100,000 salary.

Are these Household income or individual income average?

Well those numbers were bigger than I thought they would be. We’ve done well by saving 15 to 30+% a year. Again I was surprised by how high the numbers were. You must save and invest well and not give it away. I’m not a fan a FP that take a % Fee ONLY advisor is what I believe.

You should do a video on the turnover of the income earners. Someone starting their own business might be in the bottom percentages until it takes off, then have some good years in the top 10%, then the business fail and be back in the lower percentages. Someone might never earn a 6 figure income, but sell the home they have lived in for 30 years and they are a 1% income person for that year.

Great video, but Averages are misleading, Median numbers describe a better picture.

I've never had a target income that I was shooting for. I've always just made as much money as I could. The most money I ever made, though, was in 2008 and 2009.

0:16 Berkshire Hathaway's Warren Buffett and Charlie Munger each receive $100,000 per year, with no additional stock options or bonuses. In the past, Buffett has returned half of his salary to Berkshire. You don't have to be greedy to be rich.