• azimir@lemmy.ml
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      8 months ago

      Add in that id you don’t blow it all, you get to count the interest income. A long term investment gets about 6-7% per year. That’s actually more than the teaching job pay.

      • Omega@lemmy.world
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        8 months ago

        To go the other way, her tax bracket is a lot higher than the base salary alone would be. And if it’s $1m in a year, almost all of that will be in the highest bracket.

        • mosiacmango@lemm.ee
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          8 months ago

          If shes single, her combined effective federal and Missouri income tax is around 40%, so she took home roughly 600k. If she’s married, then her total effective tax is 25%, so she took home 750k.

          For the 600k investment at a conservative 4%, which right now you can get in some savings accounts, her interest alone would be 24k/yr. For the 750k, it would be 30k/yr.

          With a more realistic return of 7-8% in today’s high interest rate markets, both of those sums would net more than her old salary of 42k/yr.