Very high earners ($400k+), how did you do it?
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Very high earners ($400k+), how did you do it?
Please share your story.
Edit to make it actionable: I moved from a very low income (<$20k) to high income (>$200k) right after a graduate degree that followed straight from undergrad and I was shocked to realize that there are so many people who make multiples of that. I thought I was making a lot of money (and it is a lot!!) but realized that I had a limited imagination because, at the time, I was seeing the people around me, as am I now. So I want to know how people do it.
Edit to make it actionable: I moved from a very low income (<$20k) to high income (>$200k) right after a graduate degree that followed straight from undergrad and I was shocked to realize that there are so many people who make multiples of that. I thought I was making a lot of money (and it is a lot!!) but realized that I had a limited imagination because, at the time, I was seeing the people around me, as am I now. So I want to know how people do it.
Last edited by Yefuy.Goje on Sun Nov 28, 2021 7:35 am, edited 1 time in total.
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Re: Very high earners ($400k+), how did you do it?
Very hard to believe any one person in a traditional job is worth this kind of direct compensation. Sure, it happens, but it probably shouldn't.
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Re: Very high earners ($400k+), how did you do it?
Experience lawyers in biglaw in a big market (e.g. NYC) all will make that much.Cheez-It Guy wrote: ↑Sun Nov 28, 2021 7:16 am Very hard to believe any one person in a traditional job is worth this kind of direct compensation. Sure, it happens, but it probably shouldn't.
But the path to that is miserable...
Last edited by anon_investor on Mon Nov 29, 2021 8:17 am, edited 1 time in total.
Re: Very high earners ($400k+), how did you do it?
DH would have that much TC with one more promotion, but he is working on downsizing, instead of pursuing management roles.
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Re: Very high earners ($400k+), how did you do it?
No value judgement on whether it should happen or not (I don't think we are allowed to discuss this on this forum), but I am sure there are a sizable number of people on this forum who make that much and more.Cheez-It Guy wrote: ↑Sun Nov 28, 2021 7:16 am Very hard to believe any one person in a traditional job is worth this kind of direct compensation. Sure, it happens, but it probably shouldn't.
Meditators: please don't lock this thread.
Last edited by Yefuy.Goje on Sun Nov 28, 2021 7:25 am, edited 1 time in total.
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Re: Very high earners ($400k+), how did you do it?
The whole thread will be full of tech and tech management [including me], doctors and lawyers. Maybe you should exclude those unless that is what you want to hear. These all have well known career tracks.
The other big category is business owners, which tends to be more interesting but a lot of survivorship bias.
You should also rephrase your question to be actionable to your personal situation if you don't want it locked.
The other big category is business owners, which tends to be more interesting but a lot of survivorship bias.
You should also rephrase your question to be actionable to your personal situation if you don't want it locked.
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Re: Very high earners ($400k+), how did you do it?
Business owners and those with lucrative skill sets. That’s pretty much it.
Re: Very high earners ($400k+), how did you do it?
Tech. Not FAANG, but FAANG companies try to poach from them, with two building offices nearby in the last three years so that people dont even have to move to make the switch. He is a workaholic with a unique eye for both problem solving and mentoring, and has had good managers who value him, so has had considerable raised and frequent promotions. Not necessarily characteristics one could train for.
Re: Very high earners ($400k+), how did you do it?
If we're talking about earning this by yourself (not including spouse's income), some may have two jobs or other sources of income. One person that I know has a full time job and rental properties that would bring him above $400k combined. So some people may have more than one income source.
Re: Very high earners ($400k+), how did you do it?
Tech, finance, consulting, law, and medicine - those are pretty standard careers where you’ll easily make that much within a few years
Re: Very high earners ($400k+), how did you do it?
This thread has run its course and is locked (not actionable). General comment threads are off topic in the forums with "Personal" in the title. See: A reminder that non-investing general comment threads are OT
A related thread: Share your net worth progression
Update: See below --admin LadyGeek
If you have a specific question, please ask directly and provide sufficient information for members to supply appropriate advice.- It must be personal. In other words, you must be asking about your own situation. You can also ask on behalf of someone specific, such as a family member.
- It must be actionable. You must be able to do something specific with the replies that will make a difference in your situation.
A related thread: Share your net worth progression
Update: See below --admin LadyGeek
Re: Very high earners ($400k+), how did you do it?
The OP has contacted the moderators. The intent is to learn from the discussion and decide if the answers will change his career trajectory. (The first post was edited to make the discussion actionable.)
This thread is now unlocked to continue the discussion.
This thread is now unlocked to continue the discussion.
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Re: Very high earners ($400k+), how did you do it?
OP what field are you in?Yefuy.Goje wrote: ↑Sun Nov 28, 2021 7:09 am Please share your story.
Edit to make it actionable: I moved from a very low income (<$20k) to high income (>$200k) right after a graduate degree that followed straight from undergrad and I was shocked to realize that there are so many people who make multiples of that. I thought I was making a lot of money (and it is a lot!!) but realized that I had a limited imagination because, at the time, I was seeing the people around me, as am I now. So I want to know how people do it.
Re: Very high earners ($400k+), how did you do it?
I know someone who is a lawyer for a massive consulting company. They're partners now, guess that means they have more skin in the game? I know they make $500k+ and that person is completely miserable. They work all week, they're really unhealthy and their wife is getting lonely. Is it worth it, not so sure.
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Re: Very high earners ($400k+), how did you do it?
Get into environments at school and work that are positive, encourage your educational, personal and professional growth and development, and give you access to opportunities. Avoid all negative, hostile and self-destructive behaviors.
Re: Very high earners ($400k+), how did you do it?
Accounting major
Big 4 audit firm right out of college (making $37k)
Promoted up through Sr. Mgr. (total comp at that point was just under $200 w/ bonus)
Left for a VP of Internal Audit position at a F500 (total comp including base, bonus & equity is targeted around $500k annually)
Big 4 audit firm right out of college (making $37k)
Promoted up through Sr. Mgr. (total comp at that point was just under $200 w/ bonus)
Left for a VP of Internal Audit position at a F500 (total comp including base, bonus & equity is targeted around $500k annually)
Re: Very high life satisfaction & happiness, how did you do it?
Re: Very high life satisfaction, health, & happiness, how did you do it?
OP, I think you are trying to optimize the wrong variable.
Once you are making $200k, money is not the critical variable to life.
OP, I think you are trying to optimize the wrong variable.
Once you are making $200k, money is not the critical variable to life.
Last edited by calmaniac on Mon Nov 29, 2021 8:22 am, edited 1 time in total.
"Pretired", working 20 h/wk. AA 75/25: 30% TSM, 19% value (VFVA/AVUV), 18% Int'l LC, 8% emerging, 25% GFund/VBTLX. Military pension ≈60% of expenses. Pension+SS@age 70 ≈100% of expenses.
Re: Very high earners ($400k+), how did you do it?
Negative and self-destructive behaviors were part of my success in Big 4....no chance I would've been promoted as quickly if I hadn't participated in the (often significant) drinking culture.AnnetteLouisan wrote: ↑Mon Nov 29, 2021 8:19 am Get into environments at school and work that are positive, encourage your educational, personal and professional growth and development, and give you access to opportunities. Avoid all negative, hostile and self-destructive behaviors.
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Re: Very high earners ($400k+), how did you do it?
I kinda guessed that part would get pushback. Carry on.MAKsdad wrote: ↑Mon Nov 29, 2021 8:21 amNegative and self-destructive behaviors were part of my success in Big 4....no chance I would've been promoted as quickly if I hadn't participated in the (often significant) drinking culture.AnnetteLouisan wrote: ↑Mon Nov 29, 2021 8:19 am Get into environments at school and work that are positive, encourage your educational, personal and professional growth and development, and give you access to opportunities. Avoid all negative, hostile and self-destructive behaviors.
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Re: Very high earners ($400k+), how did you do it?
For traditional salaries (not successful small businesses), the top of the major professions will do it (law, medicine, consulting, accounting, finance). All these paths require a lot of grinding and a bit of luck to get your foot in the door and to be successful once you do.
Speaking from more personal experience, you hit $400k all-in at large law firms starting around year 5. These "biglaw" jobs are typically available to graduates from top 14(ish) law schools, or people with very top grades at other schools- around the top 10% of new graduates have access to these jobs. The hours can be brutal, but the intensity can be very practice group specific. M&A is considerably worse than something like employee benefits (pay is the same as the associate level, but top M&A partners have a much higher upside potential). Partners at large law firms can make well into the 7 figures, but you are paying for it with very high demands.
Speaking from more personal experience, you hit $400k all-in at large law firms starting around year 5. These "biglaw" jobs are typically available to graduates from top 14(ish) law schools, or people with very top grades at other schools- around the top 10% of new graduates have access to these jobs. The hours can be brutal, but the intensity can be very practice group specific. M&A is considerably worse than something like employee benefits (pay is the same as the associate level, but top M&A partners have a much higher upside potential). Partners at large law firms can make well into the 7 figures, but you are paying for it with very high demands.
Re: Very high earners ($400k+), how did you do it?
It doesn't make you wrong...I just think a person needs to be aware of the culture they're in and make a conscious decision about what is required to succeed at the highest level. It may or may not be worth it.AnnetteLouisan wrote: ↑Mon Nov 29, 2021 8:27 amI kinda guessed that part would get pushback. Carry on.MAKsdad wrote: ↑Mon Nov 29, 2021 8:21 amNegative and self-destructive behaviors were part of my success in Big 4....no chance I would've been promoted as quickly if I hadn't participated in the (often significant) drinking culture.AnnetteLouisan wrote: ↑Mon Nov 29, 2021 8:19 am Get into environments at school and work that are positive, encourage your educational, personal and professional growth and development, and give you access to opportunities. Avoid all negative, hostile and self-destructive behaviors.
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Re: Very high earners ($400k+), how did you do it?
Some people handle alcohol much better than others - I have heard this before about drinking being an important way to bond at work. Seen too many folks lose jobs and health from excessive drinking and the attendant lateness and absenteeism, so it’s something to be alert to.MAKsdad wrote: ↑Mon Nov 29, 2021 8:38 amIt doesn't make you wrong...I just think a person needs to be aware of the culture they're in and make a conscious decision about what is required to succeed at the highest level. It may or may not be worth it.AnnetteLouisan wrote: ↑Mon Nov 29, 2021 8:27 amI kinda guessed that part would get pushback. Carry on.MAKsdad wrote: ↑Mon Nov 29, 2021 8:21 amNegative and self-destructive behaviors were part of my success in Big 4....no chance I would've been promoted as quickly if I hadn't participated in the (often significant) drinking culture.AnnetteLouisan wrote: ↑Mon Nov 29, 2021 8:19 am Get into environments at school and work that are positive, encourage your educational, personal and professional growth and development, and give you access to opportunities. Avoid all negative, hostile and self-destructive behaviors.
Last edited by AnnetteLouisan on Mon Nov 29, 2021 8:44 am, edited 1 time in total.
Re: Very high life satisfaction & happiness, how did you do it?
Wow talk about inflation... I thought it was $75k last year?
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Re: Very high earners ($400k+), how did you do it?
The full story -
Arrived in the US with a box of books, a box of records and enough money for a very used Chevy Nova. Back then it turned out the VA's education stipend for gold star families was more of a joke than a program so went to a county college, worked several jobs, got 4 year degree and a job as a graphic designer. 20 years later ran global marketing functions for big companies, made mid 6 figures and was miserable. Got laid off and now consult for a fraction of my max earnings, spend more time with my baby and sleep like ....well, a baby.
The "sleep like a baby" thing is probably the important part of the story. I buried the lede huh?
Arrived in the US with a box of books, a box of records and enough money for a very used Chevy Nova. Back then it turned out the VA's education stipend for gold star families was more of a joke than a program so went to a county college, worked several jobs, got 4 year degree and a job as a graphic designer. 20 years later ran global marketing functions for big companies, made mid 6 figures and was miserable. Got laid off and now consult for a fraction of my max earnings, spend more time with my baby and sleep like ....well, a baby.
The "sleep like a baby" thing is probably the important part of the story. I buried the lede huh?
Re: Very high earners ($400k+), how did you do it?
Emphasis mine, because myself as well. I’m a software engineering manager at a FAANG. I started as an individual contributor at 96k ~7 years ago out of school. My studies were outside the US.fortunefavored wrote: ↑Sun Nov 28, 2021 7:25 am The whole thread will be full of tech and tech management [including me], doctors and lawyers.
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Re: Very high earners ($400k+), how did you do it?
My wife's boss just turned 27, I'm guessing with RSUs that his comp is 7-figures/yr (chief revenue officer for FinTech company). He's kind of a running joke with the employees, the guy's LinkedIn posts seem like parody (ie. bragging about working while his wife was in labor with their 1st kid, "grinding" at 3am when they are supposed to be on vacation), but I'm sure the board loves him because he's been getting results. He's currently separated from his wife, just a few months after the birth of the aforementioned 1st kid. I thought the wife was kidding, but I've now met him a handful of times and she was probably understating his ego and "tech bro" persona; definitely has a little Russ Hanneman from "Silicon Valley" in him.ponyboy wrote: ↑Mon Nov 29, 2021 8:15 am I know someone who is a lawyer for a massive consulting company. They're partners now, guess that means they have more skin in the game? I know they make $500k+ and that person is completely miserable. They work all week, they're really unhealthy and their wife is getting lonely. Is it worth it, not so sure.
Not saying this is the case for most people past the $400k/yr threshold, it's just the one I get to hear stories about consistently. In fact, one of my best friends is a small business owner (financial planner) who makes high 6-figures to low 7-figures annually and he has about the best work-life balance and family life I could imagine.
Re: Very high earners ($400k+), how did you do it?
Small business...
Re: Very high earners ($400k+), how did you do it?
Tech (engineering, data science, product management) will pull $400k-$700k with good experience. Check levels.fyi. This would be for fang-like companies in Bay Area, NYC, Seattle. Many companies have top tier pay in those locations and 80-90% of that pay in other locations
Also finance (like quant hedge funds) in NYC $500k-$700k with a few years of experience post-PhD or management
I’m sure others have direct experience in Medicine and law, too
Also finance (like quant hedge funds) in NYC $500k-$700k with a few years of experience post-PhD or management
I’m sure others have direct experience in Medicine and law, too
Crom laughs at your Four Winds
Re: Very high earners ($400k+), how did you do it?
Small business owners. This is a group that seems to be forgotten about by everyone, including this board. I'm actually surprised at how little money (relatively) lawyers, doctors, tech workers make in comparison. I know three people making 7 figures+, one of which I worked for, who own their own small business that from the outside looking in you just would not believe it.
1. Diabetic shore store owner: I managed one of his earliest stores, that location only had a couple hundred square feet of retail floor space - did 3 million in sales, 800k net. He has 26 locations now.
2. Carpet cleaner (no college degree): Except he only cleans colleges and universities. Works only during the summer, since the dorms and buildings are in use during the rest of the year. We grew up together, and no one would believe how much he makes, while he drives around in his white work truck/vans in dirty clothing.
3. Tow company: Just your local tow company is probably far wealthier than you would think. If they are good, they get a contract with the state they reside in to be the primary tow enforcement of regions of state highways. These are big money contracts. If a tractor trailer breaks down and needs a tow, that can cost many many thousands of dollars, and they break down every day, all day.
I remember hearing something maybe 10 years, how everyone wants to be an entrepreneur and do something cool (tech, apps, etc) but you can make tens of millions of dollars in other industries that are just waiting for someone to come along and disrupt (or maybe even just compete). The individuals I mentioned aren't really that smart, they do work hard, have tremendous self-confidence, but I cant help but think the people on this board making a few hundred grand (who are certainly more intelligent) wouldn't' be able to do make way more if they committed themselves to something else, and perhaps something they never even considered.
1. Diabetic shore store owner: I managed one of his earliest stores, that location only had a couple hundred square feet of retail floor space - did 3 million in sales, 800k net. He has 26 locations now.
2. Carpet cleaner (no college degree): Except he only cleans colleges and universities. Works only during the summer, since the dorms and buildings are in use during the rest of the year. We grew up together, and no one would believe how much he makes, while he drives around in his white work truck/vans in dirty clothing.
3. Tow company: Just your local tow company is probably far wealthier than you would think. If they are good, they get a contract with the state they reside in to be the primary tow enforcement of regions of state highways. These are big money contracts. If a tractor trailer breaks down and needs a tow, that can cost many many thousands of dollars, and they break down every day, all day.
I remember hearing something maybe 10 years, how everyone wants to be an entrepreneur and do something cool (tech, apps, etc) but you can make tens of millions of dollars in other industries that are just waiting for someone to come along and disrupt (or maybe even just compete). The individuals I mentioned aren't really that smart, they do work hard, have tremendous self-confidence, but I cant help but think the people on this board making a few hundred grand (who are certainly more intelligent) wouldn't' be able to do make way more if they committed themselves to something else, and perhaps something they never even considered.
Re: Very high earners ($400k+), how did you do it?
Mid level manager for Fin Tech for a member (of the NYSE) firm will pull this.
BUUUUUUT, about 60% will be variable...and if some numbskull bets the wrong way on an in-house bond fund your variable is five figures, not six.
Of course, if he bets the right way you have a very good year.
Variable can swing 4x year to year.
BUUUUUUT, about 60% will be variable...and if some numbskull bets the wrong way on an in-house bond fund your variable is five figures, not six.
Of course, if he bets the right way you have a very good year.
Variable can swing 4x year to year.
Re: Very high earners ($400k+), how did you do it?
I’m an academic in a scientific/technical/mathematical field. My salary as an academic has been a bit above 300k for a few years. To go much higher in my area at this University (which provides a spectacular work & living environment — no complaints!), you’d either need to a) move into administration in a big way, b) win a Nobel prize (these are surprisingly tough to come by!), or c) become the football coach.
However, I started following up on some of my extracurricular interests (in adjacent technical areas), and am consulting with a tech firm for the first time this year. Adding my 1099 income, this calendar year I’ll clear 600k. (I’m now thinking about whether to retire early and hop over to tech full time for at least a few year stint — the salary I am being offered there is a multiple of a few * academic salary — or spend a few more years in the academy and explore some new areas, since I’m getting antsy.)
However, I started following up on some of my extracurricular interests (in adjacent technical areas), and am consulting with a tech firm for the first time this year. Adding my 1099 income, this calendar year I’ll clear 600k. (I’m now thinking about whether to retire early and hop over to tech full time for at least a few year stint — the salary I am being offered there is a multiple of a few * academic salary — or spend a few more years in the academy and explore some new areas, since I’m getting antsy.)
Re: Very high earners ($400k+), how did you do it?
Small business has a strong survivorship/winner bias. IMO (based on anecdotal data) the vast majority of solo operations barely provide enough to cover the owner's salary. If they have employees, there's a much stronger likelihood of the business making a good profit. If they're never actually there, then it's a real business with real profits that doesn't rely upon the owner's constant rainmaking.
Which segues into the field that hasn't been mentioned yet. Sales. Earnings are unlimited in this field. Purely unlimited. If you are great at it, you can make half a million a year easily. Sales are the driving force behind every business and if you're good at it, you can leverage it to whatever you want.
Another high risk/high reward career path is in the oil fields as some sort of engineer or higher end employee. I'm not sure exactly what they do, but I know there's money to be made in that sector (for now).
Another would be in entertainment which again has a strong survivorship bias.
As far as professional careers with a normal career path go, I am not sure there are many that doesn't require you knowing the right people, being born to the right parents, being in the right social class etc etc.
Which segues into the field that hasn't been mentioned yet. Sales. Earnings are unlimited in this field. Purely unlimited. If you are great at it, you can make half a million a year easily. Sales are the driving force behind every business and if you're good at it, you can leverage it to whatever you want.
Another high risk/high reward career path is in the oil fields as some sort of engineer or higher end employee. I'm not sure exactly what they do, but I know there's money to be made in that sector (for now).
Another would be in entertainment which again has a strong survivorship bias.
As far as professional careers with a normal career path go, I am not sure there are many that doesn't require you knowing the right people, being born to the right parents, being in the right social class etc etc.
Re: Very high earners ($400k+), how did you do it?
Yup, it's because this board is fairly conservative and starting a business is too risky for most here. I started my biz over a decade ago (now own two). Best thing I ever did for my financial life. Yes it's hard to start and there is certainly survivorship bias but in my experience most of the other successful business owners I meet are just simply really good at what they do. The ones who usually fail...aren't.
In any case it's allowed me to have a very high income without having to live in some super expensive area like SF or NY. A dollar goes a lot farther in the upper midwest.
I've said it many times but the best way to generate real wealth is to work on your sweat equity, not your stock equity. You have way more control over the former. Way too much hand wringing here about slicing and dicing portfolios, and not enough about how to increase your human capital.
Re: Very high earners ($400k+), how did you do it?
In an earlier post you wrote that you're a recently tenured professor. $200K is a very good salary for a professor. Also, you have strong job security, probably a good retirement plan (maybe even a defined-benefit pension), and probably a lot of flexibility in managing your daily activities except for showing up for class, office hours, etc. at scheduled times. If you leave academia, you'll probably have to trade off some of those perks in order to get higher earnings.
(My wife and I are retired professors ourselves, from a small non-elite private undergraduate-only institution. We maxed out at much lower salaries even after accounting for inflation. We're doing fine financially, at least by our standards.)
I couldn't find anyplace where you mentioned your field, except that you switched out of a computer science major as an undergraduate, and you dropped out of a math Ph.D. program. I would think your most likely paths to higher earnings would leverage off your current knowledge and skills, as opposed to starting over by e.g. going to medical school and becoming the other kind of doctor. So it would help other people in giving advice, to know what your current field is, at least in a general way.
[added] Now I see theorist's post which appeared while I was writing the above. If your knowledge and skills can be leveraged outside academia, his route is probably the most appropriate one for you.
(My wife and I are retired professors ourselves, from a small non-elite private undergraduate-only institution. We maxed out at much lower salaries even after accounting for inflation. We're doing fine financially, at least by our standards.)
I couldn't find anyplace where you mentioned your field, except that you switched out of a computer science major as an undergraduate, and you dropped out of a math Ph.D. program. I would think your most likely paths to higher earnings would leverage off your current knowledge and skills, as opposed to starting over by e.g. going to medical school and becoming the other kind of doctor. So it would help other people in giving advice, to know what your current field is, at least in a general way.
[added] Now I see theorist's post which appeared while I was writing the above. If your knowledge and skills can be leveraged outside academia, his route is probably the most appropriate one for you.
Last edited by 22twain on Mon Nov 29, 2021 10:22 am, edited 2 times in total.
Meet my pet, Peeve, who loves to convert non-acronyms into acronyms: FED, ROTH, CASH, IVY, ...
Re: Very high earners ($400k+), how did you do it?
Mostly luck, to be honest.
Re: Very high earners ($400k+), how did you do it?
Im a PCP
Not yet at 400. 3 years in tho ive been promoted from 255 to 346k now. Theres a good chance in another 3 years ill hit 400. Most of this is god willing, luck, and admin roles.
Oh and i work about 60+ hrs a week including wknds
Not yet at 400. 3 years in tho ive been promoted from 255 to 346k now. Theres a good chance in another 3 years ill hit 400. Most of this is god willing, luck, and admin roles.
Oh and i work about 60+ hrs a week including wknds
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Re: Very high earners ($400k+), how did you do it?
I started in Consulting straight out of college 15-20 years ago, making $50k. I had no particular relevant education other than a liberal arts degree from a Top 25 university, but developed subject matter expertise and relevant skills within my first few years in Consulting. I developed several long-term clients, a couple of whom strongly encouraged me to leave my firm and go out on my own. After 10 years I was making total comp of $200k and had a client approach me very openly and directly offering me a significant contract if I would go out on my own and charge less than my firm was (but still significantly more than I personally was making). I did that and once my remaining non-compete expired, reached out to additional clients to build up my base. Now I earn around $500k+ per year with significantly better work/life balance after several years independent.
Client Service can be a pain in the neck and my travel schedule was grueling when I was working for a consulting firm, but I wouldn't change anything because now I have complete control over the work I want to do and make at least double what I would at a firm, in few hours (typically 32-40 per week). I think the key things for me were delivering high-quality work that led to long-term, trusted relationships and developing deep subject matter expertise in a particular industry.
Client Service can be a pain in the neck and my travel schedule was grueling when I was working for a consulting firm, but I wouldn't change anything because now I have complete control over the work I want to do and make at least double what I would at a firm, in few hours (typically 32-40 per week). I think the key things for me were delivering high-quality work that led to long-term, trusted relationships and developing deep subject matter expertise in a particular industry.
Last edited by River in Sight on Mon Nov 29, 2021 10:22 am, edited 1 time in total.
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Re: Very high earners ($400k+), how did you do it?
I mentioned one of my best friends who is a small business owner earlier, also the husband of my wife's cousin - both own their own (small) financial planning firm and both make high 6-figures to low 7-figures. They both inherited family businesses, one started by the father and the other by their grandfather. Both great guys who are good salesman, but by no stretch are either experts in their field. I also have a childhood friend who inherited his father's concert promotion business; he greatly expanded his father's business and was making mid 7-figures a year. COVID literally killed his industry and he just decided to retire and his family has lived on his boat and traveled around the world for over a year now. He is/was an absolute master salesman/wheeler-dealer who I suspect could replicate his success again (in another industry) if he had any interest.Lee_WSP wrote: ↑Mon Nov 29, 2021 10:02 am Small business has a strong survivorship/winner bias. IMO (based on anecdotal data) the vast majority of solo operations barely provide enough to cover the owner's salary. If they have employees, there's a much stronger likelihood of the business making a good profit. If they're never actually there, then it's a real business with real profits that doesn't rely upon the owner's constant rainmaking.
Which segues into the field that hasn't been mentioned yet. Sales. Earnings are unlimited in this field. Purely unlimited. If you are great at it, you can make half a million a year easily. Sales are the driving force behind every business and if you're good at it, you can leverage it to whatever you want.
Another high risk/high reward career path is in the oil fields as some sort of engineer or higher end employee. I'm not sure exactly what they do, but I know there's money to be made in that sector (for now).
Another would be in entertainment which again has a strong survivorship bias.
As far as professional careers with a normal career path go, I am not sure there are many that doesn't require you knowing the right people, being born to the right parents, being in the right social class etc etc.
My brother was an oil-and-gas contractor for nearly 15yrs, making $250k+ almost the entire time. He did not even have a high school diploma (GED) and no college education. His pre-O&G work history was 7yrs in the army where he got no O&G related experience or education. But the gravy train ended early 2020 and he was laid off, unable to find a job in the industry for about 18 months and recently took a job making ~$60k at a vodka distillery.
Wife is in (fin)tech sales. Nowhere near $400k and she has no interest in putting forth the effort to get there, but she first cracked $100k about 4yrs ago as someone with no previous sales experience and no college education. She makes more than I do now, and I am a PhD scientist who runs a metabolic health program for medical facility (I do work less and have more autonomy than her).
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Re: Very high earners ($400k+), how did you do it?
This year I'll gross about $430k. I'm a software engineer at a high-profile tech company working from their Colorado satellite office.
Work-life balance is terrific and the job isn't stressful. 30-35 hours a week, lots of PTO, work is strictly 10-5.
Work-life balance is terrific and the job isn't stressful. 30-35 hours a week, lots of PTO, work is strictly 10-5.
Re: Very high earners ($400k+), how did you do it?
20 years ago, 100K with Adobe.
These days 100K with my business.
But that's at @ one/two hours work a day.
Plenty time to read/hike/kayak/bicycle/organize my shed again/garden...
Priceless.
These days 100K with my business.
But that's at @ one/two hours work a day.
Plenty time to read/hike/kayak/bicycle/organize my shed again/garden...
Priceless.
Re: Very high earners ($400k+), how did you do it?
Nearly anything in private, hedge funds, investment banking, sales / trading with 5-10 years out of school should get you >$400k.
My wife is a managing director at a large private equity firm and she is hiring kids with 2yr banking experience and/or straight out of college with total compensation ranges >$200k to start which can easily double in 2-3 years if they perform and get promoted to VP.
My wife is a managing director at a large private equity firm and she is hiring kids with 2yr banking experience and/or straight out of college with total compensation ranges >$200k to start which can easily double in 2-3 years if they perform and get promoted to VP.
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Re: Very high earners ($400k+), how did you do it?
Creating business(s) has unlimited potential for earning money, but that's also on a higher level of difficulty, effort, risk, and stress than just collecting a paycheck as a W-2 employee
For the W-2 income path, the only field i can speak to is Software Development, for Senior level folks this tends to range anywhere between 200k-500k TC depending on your skills and what company you work for. Higher end mostly for those at megacap tech, with a large slice of TC being RSU grants
For the W-2 income path, the only field i can speak to is Software Development, for Senior level folks this tends to range anywhere between 200k-500k TC depending on your skills and what company you work for. Higher end mostly for those at megacap tech, with a large slice of TC being RSU grants
My posts are for entertainment purposes only.
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Re: Very high earners ($400k+), how did you do it?
What would you say differentiates someone in a position like yours vs the average corporate/senior manager/director pulling in "only" $130-150K?MAKsdad wrote: ↑Mon Nov 29, 2021 8:19 am Accounting major
Big 4 audit firm right out of college (making $37k)
Promoted up through Sr. Mgr. (total comp at that point was just under $200 w/ bonus)
Left for a VP of Internal Audit position at a F500 (total comp including base, bonus & equity is targeted around $500k annually)
I started in Big 4 audit also. Based on your starting salary you're a few years ahead of me. After that I took a detour into consulting which while I learned a ton, it probably set me back a few years, just because it was a very small shop. I'm now in corporate accounting as a director and want to focus on growing my earnings potential. Looking for advice from people that have made the jump ahead.
Re: Very high earners ($400k+), how did you do it?
It’s interesting how the title of “VP” means so little in some industries. In my industry it takes decades to get up to VP and means you are just outside C-suite of a major multi-national.grkmec wrote: ↑Mon Nov 29, 2021 10:39 am Nearly anything in private, hedge funds, investment banking, sales / trading with 5-10 years out of school should get you >$400k.
My wife is a managing director at a large private equity firm and she is hiring kids with 2yr banking experience and/or straight out of college with total compensation ranges >$200k to start which can easily double in 2-3 years if they perform and get promoted to VP.
Re: Very high earners ($400k+), how did you do it?
Firemenot wrote: ↑Mon Nov 29, 2021 11:04 amIt’s interesting how the title of “VP” means so little in some industries. In my industry it takes decades to get up to VP and means you are just outside C-suite of a major multi-national.grkmec wrote: ↑Mon Nov 29, 2021 10:39 am Nearly anything in private, hedge funds, investment banking, sales / trading with 5-10 years out of school should get you >$400k.
My wife is a managing director at a large private equity firm and she is hiring kids with 2yr banking experience and/or straight out of college with total compensation ranges >$200k to start which can easily double in 2-3 years if they perform and get promoted to VP.
The structure in banking is generally (highest to lowest)
Partner (Goldman)
Managing Director
Director
VP
Associate
Analyst
No title
Re: Very high earners ($400k+), how did you do it?
As expected, the answer in the responses are pretty typical:
Executive management
FAANG software developers
Finance
Medicine (MDs - nurses and techs are not getting rich)
Law
Successful small business owner
etc.....
Keep in mind that getting to these levels typically requires a consummate level of education and time investment. Any job that pays that kind of money without extreme commitment levels is probably a sign of an industry in a bubble.
To be more actionable - I would also ask the question I usually do in these kind of threads - WHY do you want/need 400k? Is it just to hit a number for the sake of a number, or is there some way it would really bring you more life satisfaction? I am sure I don't need to repeat all the studies that show earning beyond 75k or so doesn't make people statistically happier. On a personal level I find that even living in a HCOL area, beyond about 200-250k household income its actually hard to find ways to spend it all unless you are the type to pay somebody to do literally everything around the house, eat out every meal, and have to always have the newest latest and greatest of every device, gadget and consumer good.
And at the risk of getting us off track, as somebody hinted way up thread, paying people 400k, 500k, 1MM for these roles is not really doing anything for society, but is definitely a big part of why your iPhone costs $1000 rather than the $50 it cost to make it. Or why your active mutual fund charges 1% instead of the .005% Vanguard does. Or why going to the hospital can bankrupt you. etc.
Executive management
FAANG software developers
Finance
Medicine (MDs - nurses and techs are not getting rich)
Law
Successful small business owner
etc.....
Keep in mind that getting to these levels typically requires a consummate level of education and time investment. Any job that pays that kind of money without extreme commitment levels is probably a sign of an industry in a bubble.
To be more actionable - I would also ask the question I usually do in these kind of threads - WHY do you want/need 400k? Is it just to hit a number for the sake of a number, or is there some way it would really bring you more life satisfaction? I am sure I don't need to repeat all the studies that show earning beyond 75k or so doesn't make people statistically happier. On a personal level I find that even living in a HCOL area, beyond about 200-250k household income its actually hard to find ways to spend it all unless you are the type to pay somebody to do literally everything around the house, eat out every meal, and have to always have the newest latest and greatest of every device, gadget and consumer good.
And at the risk of getting us off track, as somebody hinted way up thread, paying people 400k, 500k, 1MM for these roles is not really doing anything for society, but is definitely a big part of why your iPhone costs $1000 rather than the $50 it cost to make it. Or why your active mutual fund charges 1% instead of the .005% Vanguard does. Or why going to the hospital can bankrupt you. etc.
Re: Very high earners ($400k+), how did you do it?
For me, the best thing I did was wait before I left Big 4. I would never have left Big 4 for anything less than a VP of Audit role or something comparable (Controller/CAO at a smaller company, something like that). But I also know that I lucked out where I landed. My comp package is probably bigger than what a lot of companies give for a comparable position in terms of bonus and equity pieces. I have a friend who is a CFO of a public company and he makes less than I do.Hoosier CPA wrote: ↑Mon Nov 29, 2021 10:49 amWhat would you say differentiates someone in a position like yours vs the average corporate/senior manager/director pulling in "only" $130-150K?MAKsdad wrote: ↑Mon Nov 29, 2021 8:19 am Accounting major
Big 4 audit firm right out of college (making $37k)
Promoted up through Sr. Mgr. (total comp at that point was just under $200 w/ bonus)
Left for a VP of Internal Audit position at a F500 (total comp including base, bonus & equity is targeted around $500k annually)
I started in Big 4 audit also. Based on your starting salary you're a few years ahead of me. After that I took a detour into consulting which while I learned a ton, it probably set me back a few years, just because it was a very small shop. I'm now in corporate accounting as a director and want to focus on growing my earnings potential. Looking for advice from people that have made the jump ahead.
You don't say whether you're at a public company or not, but I think that's a big factor as well in terms of increasing pay (either a public co. or a major privately held one). You probably need to get to controller/chief accounting officer to see a major jump in comp as well (where the bonus % really goes up and equity comp starts to be significant).
Re: Very high earners ($400k+), how did you do it?
Studied CS in school. Worked for a while. Eventually became highly paid along with the rest of the industry.