Comment by dmoy | Hacker News Reader

Comment by dmoy | Hacker News Reader

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At Meta and L5, probably over $400k or $450k for the average eng.

I think it's true both ways:

A lot of people assume it's like finance money, but it's not.

And on the flip side there's a lot of people coming from normal company or startup land, and assume that the $400k + average performing L5 is a myth, when that's pretty typical for big tech.

And I definitely agree with sibling here: $300k or $400k is good money, but in a place where the median house costs $1.5 million or something insane like the parts of the bay area that have a <45 minute commute, it doesn't go as far as you'd think. And it's incredibly risky, because now you're tied to always getting that level of comp for decades or you'll get evicted. (And while $400k + L5 Meta comp may be typical at Meta, it's not exactly trivial to maintain, or nearly as relaxing as a software gig you can do at other companies)

That’s the part that I never understood: taking actions to tie yourself to needing that money every year. It’s a trap. I watched a friend convinced they were set with their FAANG job buy in the Bay recently just to be laid off. You can’t trust this industry.

Why do need to make $400k a year "for decades" to pay a $1.5M home down to a level at which a significant income change doesn't evict you? With some napkin math, let's say down payment was $200k, so you have $1.3M loan, and if you pay down $100k a year then after just 8 years you are down to a mortgage of $500k. Still a lot of money, but won't get you evicted if you make less, and while on $400k a year and with a spouse that has income too, you shouldbe able to reach that even earlier.

That's a lot of handwavey assumptions about how much you can pay off per year / month; where's that $100K pay down coming from? How much is the interest pay? What other expenses are there?

At a 7% interest rate, your math isn't reasonable. You’re mostly paying interest. The situation in the Bay is way more insane than people realize.

That's the avg initial comp package but the stock had a pretty nice run so a lot of people are making 600k++.

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