The Annual Income in Each State Required to Be in the Top 1%

January 4, 2018

 

Depending on the state in which you live, a $150,000 salary can either go a long way...or not far at all. Whether or not you aspire to reach the top 1%, it’s always interesting to see how much a dollar can go in each state and whether or not you’re living in a pricier region.

 

Luckily, thanks to a report by the Economic Policy Institute, you can find out how much one must make per year to be considered as a one-percenter in your state. (1)

 

Here’s a comprehensive ranking by state in alphabetical order:

 

 

 

Alabama
$283,899

Alaska
$365,332

Arizona
$309,102

Arkansas
$237,428

California
$453,772

Colorado
$410,716

Connecticut
$659,979

Delaware
$342,699

Florida
$385,410

Georgia
$345,876

Hawaii
$281,620

Idaho
$292,324

Illinois
$416,319

Indiana
$296,640

Iowa
$317,234

Kansas
$351,497

Kentucky
$267,635

 

Louisiana
$325,163
 

Maine
$282,474
 

Maryland
$421,188
 

Massachusetts
$539,055
 

Michigan
$306,740
 

Minnesota
$411,022

Mississippi
$264,952

Missouri
$305,471

Montana
$297,689

Nebraska
$346,252

Nevada
$311,977

New Hampshire
$359,844

New Jersey
$547,737

New Mexico
$231,276

New York
$517,557

North Carolina
$327,549

North Dakota
$481,492

 

Ohio
$317,124

Oklahoma
$324,935

Oregon
$312,839

Pennsylvania
$360,343

Rhode Island
$336,625

South Carolina
$288,042

South Dakota
$386,622

Tennessee
$308,834

 

Texas
$424,507

Utah
$333,775

Vermont
$299,259

Virginia
$406,412

Washington
$387,854

West Virginia
$244,879

Wisconsin
$312,375

Wyoming
$368,468

 

The 2 S’s That are Just as Important as Income

Did any of these figures surprise you? For some, you may be closer than you thought to the top 1%, while for others, it may seem distant and impossible to reach. But in terms of retirement, remember that a high income isn’t the sole key to retiring on your schedule and living the lifestyle you desire.

 

It’s true that having a high income is helpful, but the secret comes down to two S’s: spending and saving. It’s easier to retire early based on how much you save and how little you spend as opposed to a high income. This is for a few reasons. For one, if you’re spending at your income level, you’re more susceptible to what’s known as lifestyle inflation. As you earn more, you start spending more and living a lifestyle that may require more spending.

 

Additionally, if you’re used to living a certain lifestyle that requires a lot of spending, you’ll need a higher retirement income in order to maintain that lifestyle. While there’s no set number for how much you’ll need in retirement, many experts agree that the average retiree will need to replace about 80% of their income in retirement. If you can pay off your mortgage and other debt before retirement, this percentage may be even lower.

 

However, if you intend on traveling and spending more on entertainment and leisure in retirement, you may end up spending more than you did while working. This can be dangerous if you’re already a higher spender, especially if you want to retire early.

 

The moral of the story is, these figures may be interesting to learn, but an income isn’t the sole determiner of your future retirement.

 

Action Steps

How does your income compare to these figures? Do you feel more or less confident about your financial and retirement strategies? At Beacon Wealth Management, our mission is to help you make smart decisions about your money. If you have questions about your current financial strategies or future retirement plan, I encourage you to contact us for a complimentary financial review. We can answer any questions you have and help you gauge your progress toward your goals. To get started, call (304) 626-3900 or email me jhalterman@bwmwv.com.

 

_______

 

(1) http://www.epi.org/publication/income-inequality-in-the-us/#epi-toc-3

 

 

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Securities offered through Cambridge Investment Research, Inc., a broker-dealer, member FINRA/SIPC. Advisory services offered through Cambridge Investment Research Advisors, Inc., a Registered Investment Adviser. Beacon Wealth Management operates independently of Cambridge. This communication is strictly intended for individuals residing in the states of DC, DE, FL, MD, NC, OH, PA, SC, TN, TX, VA, and WV. No offers may be made or accepted from any resident outside the specific state(s) referenced.

 

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