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Comment by Ifkaluva | Hacker News Reader

> the difference between 200k/year and 800k/year didn't feel much day to day (other than the ability to buy a house or something, and feel safe with a retirement nest egg)

I can’t believe I read this sentence, lol.

800k is the ability to buy a house and support a family on a single income. Do you see so many people lamenting the days when this was possible? So many memes about the lifestyle Homer Simpson could provide, and may modern families can’t? 800k makes it possible.

It’s a huge lifestyle upgrade, especially if your partner wants to do something artistic, academic, or otherwise less profitable.

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The real difference between 800k and 200k is the ability to work for 5 year and make 200k off interest for the rest of your life.

800k for 5y taxed at salary rates will not net you 200k/yr in perpetuity. Not even close. And certainly not in real dollars.

Assuming you manage to save every penny.

While I mostly agree, $200k makes that possible too, if you play it right. For example, go remote, move to the countryside, let your spouse rear the kids or the dogs or whatever.

But yeah, "no difference between 200 and 800", while spelling out some MASSIVE differences is quite a statement.

This essentially describing the backward bending supply curve of labor:

https://en.wikipedia.org/wiki/Backward_bending_supply_curve_...

If someone has a 10m portfolio, it really is irrational to chase a higher w-2.

How many do you think build that portfolio from $200k/yr? The point is an extra 600k, at least for several years, is life-changing when managed wisely. I could perhaps see the GP's point about "day to day" feeling, if you acclimate to the baseline of financial security that having that much money buys you. I'm only assuming though, having never had the opportunity to experience GP's claim about that kind of comp.

My sentence:

> other than the ability to buy a house or something, and feel safe with a retirement nest egg

Your sentence:

> 800k is the ability to buy a house and support a family on a single income

So we agree.

The thing you missed in my post:

> day to day

Day to day it doesnt feel different when you own a house vs rent one.

Day to day you're eating the same food, entertaining the same ways. Doing the same thing with your friends, family, and loved ones.

The 50% of your waking life that's not your job is not meaningfully different.

So when the other 50% starts to feel dramatically different, you notice.

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