I’m doing a tax return for a person who has a very large interest in an oil and gas partnership. Said partnership makes up about 80% of his income. Stocks/bonds/funds/interest make up the other 20%. In total, the dude made about $150k on this stuff last year.
Then, as I look at his personal information, I see that he is a 19 year old student.
I realize that this is the way of the world, that some animals are more equal than others. And I know that this will continue for ever and ever, and that I just need to get over it. I also know that comparing yourself to others is a psychologically losing game.
But still, I can’t help but just get a little peeved when I see people that have basically been handed the world on a platter. I have an MBA + CFA + CPA + BS + several years accounting experience and five years in the Marines, and this guy makes more than twice what I make, all through absolutely no merit of his own.
I’m just complaining. Hopefully it makes me feel a little better today.
I see a lot of that too, valuing partnership gift interests, most of which are in TX. The merit exist because of the sacrifices from someone from a prior generation. I don’t compare myself to the kid, I compare myself to his grandfather or before. The way I see it, if I make the right choices (not only financially but the ideas and culture I pass along to my son), and make sacrifices, he could be in that situation someday.
To me, it’s not aggrevating, but motivating. If someone can put their heir in such a position, I can too.
The key is to leverage your relationship with such individuals to form a mutually beneficial arrangement. I’m sure many wealthy individuals would be interested in ways to “creatively defer” portions of their tax obligations, and I’m sure they would be willing to pay you for your expertise in this respect. Really, it is a win-win proposition. Just be sure to invest part of your additional earnings in some real estate in Central America, in case you need to disappear suddenly for some reason. Also, if anyone asks you, say Sweep the Leg from AF gave you this idea, not ohai.
Don’t worry about it, he’s 19 and has plenty of time to screw it up.
I worked for a brilliant guy who was also completely set up by his family and made over $500 million before age 45. That’s 500 net, after tax to him. Forget pro athletes, this guy is on another level. This sum will “easily” grow to be billions of dollars if he keeps going.
Jealous? No. He’s completely miserable as a person. Also, I will probably only ever make a small fraction of that amount but it is enough for me to live a great life.
If you want to make more money, figure out how to do that, no point in being aggravated since that won’t move you forward.
In my old job, I was looking through the bank statements of an ex-PM for a gigantic AM firm who was talking to us for advice on setting up his own gig. He spent more money each day than I make in a month and it still didn’t make a dent in his income.
You’re doing taxes kiddo. I’m sure there are outliers on each end of folks killing it and barely eating enough to stay alive.
Hook the AF brothahood up. Can you offer up a sense of W2 salary aggregates when it comes to specific professions, experience, and what not?
I’m M’n’A’in on the Buyside and review compensation as part of the synergy analysis of the acquisition. I can tell you that most Senior/VP level folks seem to teather off around 150kish. And that could be 20 years at the target.
Comparing your salary to others will only lead to discouragement. I’m in NYC, and I’m sure I’m a total poverty case compared to most of the folks I see walking to work near me.
This seems to be a shift in attitude. It used to be that people were praised for wanting to provide for their children and leave them better off. It is still the goal of many parents. The final gift is economic freedom. Meaning you can truly do what you want without the worry of feeding yourself . I know my spending is definitely curtailed because I plan to set my children up and maybe my sacrifice can be the seed for a dynasty. People are bitter because the heir didn’t earn it. True, but why can’t the desires of those that did earn it be respected. My primary motivation to work is so my kids are so rich that they can isolate themselves from the turmoil that is politics. When I see the “rich” kid, I think, in most cases, there is an heir to a family that did something right. Why should I infringe on the desires of the parents? That is what they wanted. Much like if they own a yacht. Well done. I hope I join you one day. The idea that the playing feel should be level is strange to me. I’m working so that my kids have an edge. That is my dream. Why do some think they should take my money in an attempt to level that field? This is what parents have been doing since the beginning of time, trying to give their kids a leg up. Anything else seems perverse.
