Thursday, February 12, 2009

Putting it all in perspective

New York Times:
You Try to Live on 500K in This Town

  • Private school: $32,000 a year per student.
  • Mortgage: $96,000 a year.
  • Co-op maintenance fee: $96,000 a year.
  • Nanny: $45,000 a year.

We are already at $269,000, and we haven’t even gotten to taxes yet.

Five hundred thousand dollars — the amount President Obama wants to set as the top pay for banking executives whose firms accept government bailout money — seems like a lot, and it is a lot.

To many people in many places, it is a princely sum to live on.

But in the neighborhoods of New York City and its suburban enclaves where successful bankers live, half a million a year can go very fast.