How much in interest/dividends do you earn a year as compared to employment-related HHI?

[Anonymous]

We earn about $60k in interest/dividends and earn $230k. I am just trying to figure out if this is fairly typical.

[Anonymous]

That's very high. We earn $430K and earn about $20K in interest and dividends. We're heavily invested in growth stocks.

[Anonymous]

OP, why would there be a "typical?". It all depends on how much you have saved and how it is invested. Is this some form of humble brag?

[Anonymous]

Our HHI is about 150k but we made 60k on dividends last year. Much of our savings is from sale of real estate before the boom plus money from my parents. We plan to not touch it for a long time.

[Anonymous]

Anonymous wrote:We earn about $60k in interest/dividends and earn $230k. I am just trying to figure out if this is fairly typical.

How much do you have in stocks and bonds. Just tying to get a grasp on what you need to get 60k in dividends.

[Anonymous]

I think the numbers here make no sense unless you cite how much you have in stocks/bonds. A 30 year old making $300K HHI might have $500K in assets, a 55 year old might have $5M but also make $300K. One may throw off $10K, the other $100K.

All the same, $60K in dividends is pretty ballin'. Just as an example, to get that kind of cash out of say - R&R Donnelley stock, you'd need to purchase a little over $1 million in shares. If you did a bunch of high yield stuff you might be able to get that kind of cash thrown off with as little a 500K, but youd be gambling a bit on the stock.

[Anonymous]

Anonymous wrote:I think the numbers here make no sense unless you cite how much you have in stocks/bonds. A 30 year old making $300K HHI might have $500K in assets, a 55 year old might have $5M but also make $300K. One may throw off $10K, the other $100K.

All the same, $60K in dividends is pretty ballin'. Just as an example, to get that kind of cash out of say - R&R Donnelley stock, you'd need to purchase a little over $1 million in shares. If you did a bunch of high yield stuff you might be able to get that kind of cash thrown off with as little a 500K, but youd be gambling a bit on the stock.

And that investment has to be outside 401k or other tax deferred investments since those wouldn't count as dividend income. Interest rates are marginal these days so lets assume its mostly dividends. The average dividend of the DJIA companies is 2.7%. So that would require $2.2 million in non-retirement investments. So OP, there's your answer - most people don't have over $2 million in non-retirement investments, especially those with $230k income.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I think the numbers here make no sense unless you cite how much you have in stocks/bonds. A 30 year old making $300K HHI might have $500K in assets, a 55 year old might have $5M but also make $300K. One may throw off $10K, the other $100K.

All the same, $60K in dividends is pretty ballin'. Just as an example, to get that kind of cash out of say - R&R Donnelley stock, you'd need to purchase a little over $1 million in shares. If you did a bunch of high yield stuff you might be able to get that kind of cash thrown off with as little a 500K, but youd be gambling a bit on the stock.

And that investment has to be outside 401k or other tax deferred investments since those wouldn't count as dividend income. Interest rates are marginal these days so lets assume its mostly dividends. The average dividend of the DJIA companies is 2.7%. So that would require $2.2 million in non-retirement investments. So OP, there's your answer - most people don't have over $2 million in non-retirement investments, especially those with $230k income.

Thanks.

[Anonymous]

What a dumb question. Yes, OP, it's very typical to have 1-2 mil in stocks outside of retirement.

[Anonymous]

If you have a high household income it is much better to have any money that is not in tax sheltered accounts in growth stocks or other investments that pay low or no dividends. You are paying tax at a high marginal rate on any dividends you receive. Once you retire you may want higher dividends but while you are working it is best to be invested in things that do not generate a lot of taxable income but that do increase in value, for example, index funds.

[Anonymous]

Hope you are reinvesting those dividends and not buying high end handbags. $60k per year reinvested will turn into a very nice chunk-a-chunk a change over a couple decades. You should live very comfortably for a vary longtime.

[Anonymous]

22:49, high rate on dividends? Really? Qualified dividends (which most are) are taxed at 0' 15, or 20 percent MAX depending on your income level. Hardly high rates!

[Anonymous]

Anonymous wrote:We earn about $60k in interest/dividends and earn $230k. I am just trying to figure out if this is fairly typical.

if you really want to know, and aren't just being obnoxious, I'd get turbotax-- when you are done with your return they will compare your income/deductions to other people in your age/income bracket.

[Anonymous]

Anonymous wrote:

Anonymous wrote:We earn about $60k in interest/dividends and earn $230k. I am just trying to figure out if this is fairly typical.

if you really want to know, and aren't just being obnoxious, I'd get turbotax-- when you are done with your return they will compare your income/deductions to other people in your age/income bracket.

Or just go to networthiq.com and look there.

[Anonymous]

About half what we earn in salary.