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charlesdm | 4 years ago

You can't just work your way to wealth. You need to reinvest what you make into other assets and let them compound...

That said, I know self employed developers making 150-200k (EUR) gross per year as contractors. But I also know employees that get allocated a few 100k/year in stock options as part of their compensation.

Yes, you do need to be exceptional. And you need to be smart in the choices you make. I thought that was a given, since millions of dollars don't just come falling from the sky.

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bjornsing|4 years ago

> That said, I know self employed developers making 150-200k (EUR) gross per year as contractors.

There’s nothing unusual about that. I was making that kind of money 15 years ago.

But one problem is, that’s about what I can make today as well. There is no upward mobility in pay. And it has nothing to do with ability. It’s a cultural thing.

(Also, the deal is typically that you sell your social career progression. So you’ll be doing the same kind of job endlessly.)

> You can't just work your way to wealth. You need to reinvest what you make into other assets and let them compound...

This however is where the real problem starts: there is no way to accumulate and reinvest capital (legally), without paying massive (70-80%) taxes.

charlesdm|4 years ago

Consumption yes. But how do you get to 70-80% for reinvesting? Corporate taxes are 20%, dividend taxes 30% on remaining 80? That gets you to 44% net tax. From gross to net. Income taxes are higher but still not 70-80%?

I agree income taxes are high throughout most of Western Europe, but the way to grow wealth is by acquiring assets that can grow without having to sell them and pay taxes.

An investment fund (or a property) can often grow for a long time and throw off cashflows that are taxed more efficiently. So can a business where you build up value in the equity. Cashflow keeps the lights on, but equity (even in a small business) builds wealth.

xvilka|4 years ago

Move to Russia with its low tax of 13% (could go as low as 7.5% if you establish a company and enjoy some additional benefits) and work remotely. Or any other country with low taxes and low cost of living.