Top of the morning to you! Happy Monday! On this sunny day in December, Christmas is a mere 13 days away. Some people are already receiving excellent Christmas gifts in the form of overtime pay.
Making the rounds this morning on the news is sanitation workers making an eye-popping $300,000 in NYC!
And I thought having that in my retirement accounts was good news. That is a Merry Christmas present indeed. Let’s get right to it!
I know some of you out there haven’t heard from me in the blogosphere for some time now. But you know what, I feel like Dr. Dre in Forgot About Dre.
I’ve been busy behind the scenes trying to get this blog off and my finances to newer heights! I never left you.
And to prove that I’m still here back better and stronger than ever, I will be posting some new articles here in the near future about climbing that millionaire ladder and moving on up to a deluxe apartment in the sky.
The stock market is minting millionaires every day. Let Mr. Market make you richer whilst you sit back and sip Mojitos letting your hard earned dollars work for you. Let the money flock to you like ducks to water or a moth to a flame.
Thanks to the IRS tax code, you can now contribute $20,500 in 2022 to your 401k. I’m going to ride that pony into the million-dollar sunset. TE-HEY! You should do the same. Save until it hurts. Invest until you owe so little in taxes you rival the tax returns of Jeff Bezos and Amazon for the last few year paying $0 in taxes.
That is because the more you invest, the less you pay in income taxes. But enough about all that. Let’s talk about these $300,000 sanitation workers shall we?
First off, I have to take you all back down memory lane. Remember that guy that made $270,000 being a transit janitor in San Francisco. No? Let me post that article here to jog your memories. It was all over the news. I especially remember it being in the Washington Post. Which is also owned by Amazon founder Jeff Bezos. Check out the link A BART janitor made $270,000 in a year and some people are wondering why.
That was 2016. Many were left scratching their heads wondering just how could someone sign up for overtime almost every day, work 361 days in the year, and earn $162,000 in overtime pay. Not me. The system allowed no limit on overtime, so he got it. End of story.
Let’s say that after taxes was able to bank enough to max out his 401k for the next five years. In 2016, the IRS contribution limit was $18,000.
So, hypothetically speaking, if you invested that same amount annually for five years would invest that would be $90,000 cash in the market. During that time, $18,000 per year could grow into $124,431.47. If he let that money sit in the market without adding another dime of his base pay or overtime, that could turn into $1,003,205 over 20 years. He would become a millionaire based on one year of overtime pay.
Now let’s fast forward to 2021. Sanitation workers in NYC have earned upwards of $300,000 and receiving $153,000 in overtime pay. Cha-ching! Bank that money baby! They too can turn this windfall into riches by simply investing this money.
The NASDAQ has gone up 750% since 2009. No time like the present to invest. Brokerages have not only gone to $0 trade commissions, but companies have also recorded record high turnout in 2020 and 2021 of new customers entering the market and signing up on their platforms.
If these overtime kings put that money to work, they can make a fortune.
All this from one year of overtime pay. With many companies not even offering overtime, that is awesome that these guys are able to not only make a living but even build wealth off of it. Therefore, college admissions counselors everywhere beware! Haha! No $100,000 MBA required!
