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

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

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[quote=Anonymous][quote=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. [/quote]

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.[/quote]

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