2008 Income Source Statistics by Age and Total Income

//2008 Income Source Statistics by Age and Total Income

2008 Income Source Statistics by Age and Total Income

I saw 2 really cool tables from the Tax Foundation’s Tax Policy Blog that to put it simply…inspired me.  Both provide an statistical evidence of what I have intrinsically thought was correct, and where I should go.

Statistics of Income Sources of 2008 Tax Returns

The first Table provides an insight as to what sources of income makes up a certain group’s Adjusted Gross Income.  I took out a few columns from the original table, since they don’t apply to me (i.e. Pension, IRA distributions, etc.).

AGI GroupSalaries WagesTaxable InterestCap Gains DividendsBiz Income
All Returns66.31%3.04%12.99%7.95%
1-5k87.27%4.62%4.53%4.46%
5-10k75.45%2.97%3.02%10.41%
10-15k71.21%3.21%2.39%9.76%
15-20k76.89%2.69%2.28%5.18%
20-25k81.07%2.21%1.92%3.24%
25-30k81.73%1.83%1.81%3.01%
30-40k81.86%1.91%1.68%2.63%
40-50k80.41%1.81%2.01%2.78%
50-75k77.47%2.10%2.80%2.69%
75-100k76.45%2.16%3.58%3.48%
100-200k73.17%2.32%6.22%5.91%
200-500k59.62%3.25%13.87%15.22%
500k-1m47.27%3.77%22.89%21.62%
1-1.5m38.90%4.42%28.38%24.48%
1.5-2m35.13%4.55%32.03%24.85%
2-5m31.75%4.80%37.24%23.08%
5-10m26.75%5.23%46.37%18.98%
10m+16.02%6.47%62.33%12.57%

I hope you see what I am seeing! As the Adjusted Gross Income increases, the wage column decreases.  As people’s income (and I assume wealth but as I stated in the past even if you are making a Million, but are spending a Million = No Wealth)  increases they also seem to be diversifying their income streams.  This seems to click around the $200K mark.

Lesson for My Journey:  Start Diversifying your Income Streams Early.

Income Sources by Age

The second table represents the different income streams by age, rather than source as above.  Again, I took some of the columns off the original table.

Age GroupSalaries WagesTaxable InterestCap Gains DividendsBiz Income
All Returns66.31%3.04%12.99%7.95%
Under 1855.05%5.19%30.27%3.95%
18-3491.75%0.62%2.75%3.45%
35-4480.44%1.52%8.25%7.76%
45-5474.10%2.03%11.32%9.69%
55-6459.10%3.41%15.74%9.97%
65+17.21%8.80%29.09%7.47%

As a person gets older the reliance on Salary as the overwhelming majority contributor to total income, seems to diminish.

Lesson for My Journey:  Start Diversifying your Income Streams Early.

By |2013-09-26T15:01:51+00:00August 7th, 2009|Personal Finance|0 Comments

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Evan is the owner of My Journey to Millions which was started to track his journey from a broke debt ridden law school graduate to building a positive balance. Need more Evan? Follow him on Twitter, Contact him or get new posts directly to your email

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