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Income makes the world go round. What does your income do?

by , 27 February 2015
Sure, you'll have to pay a certain amount to the state. Your contribution is not small. But your work isn't also not small and definitely not unsignificant. So when it comes about working for someone else or managing your own money, where do you stand?


Do you hope to get rich, really rich or just above the average earnings?

According to the IRS Statistics of Income Division, a place where fun surely must go to die, published "400 Individual Tax Returns Reporting the Largest Adjusted Gross Incomes Each Year, 1992-2009," or in non government-speak, "400 People Who Earned a Freaking Boatload of Money", writes Jeff Haden, an editor from Inc. Magazine.

Moreover, he says, in 2009 it took $77.4 million in adjusted gross income to crack the top 400. (That just barely got you in, though. The average income of the people on the list was $202.4 million.)


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How do you think this amount of money is built up? How would you see these finances organized?

Here's the reality of it and how the top 400 made their money:

    Wages and salaries: 8.6 percent
    Interest: 6.6 percent
    Dividends: 13 percent
    Partnerships and corporations: 19.9 percent
    Capital gains: 45.8 percent

Jeff Haden offers a few, what he calls, obvious conclusions:

    Working for a salary won't make you really rich.
    Making only safe "income" investments won't make you really rich.
    Investing only in stock of large companies won't make you really rich.
    Owning a business could not only build a solid foundation of wealth but could someday...
    Generate a huge financial windfall -- and make you really rich.

However, he advises on why someone should not quit their job or, at least, not immediately. Build something aside and see how that works.


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