In Part I of this series , we learned:
Affluent households – which I’m defining as in the top 20% of the income distribution in the US – are not same people from year to year.
The 2017 lower income limit for US households in the top 20% of the income distribution was $126,855.
The 2017 lower income limit for US households in the top 5% of the income distribution was $237,034.
Over two-thirds of US adults spend at least a year in the top 20% of income by the age of 60 – almost half for 5 years or more.
Over a third of US adults spend at least a year in the top 5% of income by the age of 60 – less than a tenth for five years or more.
Over three-fourth of households in the top 20% and 5% of income have two earners, at least one of whom works full-time year-round.
At least a quarter of US households in the top 20% earned a substantial portion of their income through “pass-through” businesses (sole proprietorships, partnerships, and S corporations).
At least a third of US households in the top 5% earned a substantial portion of their income through “pass-through” businesses (sole proprietorships, partnerships, and S corporations).
What about the occupations of earners in these affluent households? First, the usual suspects:
Note the above occupations list only their median annual incomes, which means half the individuals in these occupations actually earn more than what is listed. In other words, they probably would get into the top 20% of households by virtue of their earnings alone.
But remember that most households in the top 20% percent of income have at least two earners and the lower limit for the top quintile was $126,855 in 2017. That’s an average of $63,428/year per earner. There are tons of occupations with wages that peak higher than that - many of which do not require a four-year college degree. For instance, the following occupations (salary listed is at the 75th percentile of the salary range)*:
Industrial Machinery Mechanics $70,429
Production and Operating Supervisors $82,514
Numerical Tool and Process Control Programmers $81,619
Sales Representatives, Technical and Scientific $117,873
Industrial Machinery Mechanics $70,429
Plumbers, Pipefitters, and Steamfitters $71,157
Electrical and Electronic Engineering Technicians $83,117
Administrative Assistants and Executive Secretaries $81,890
Computer User Support Specialists $78,562
All these occupations are in high demand fields, with job openings greatly exceeding supply of qualified workers, per Manpower Group’s 2018 Talent Shortage Survey.
Bottom Line: getting into the top 20% of the US income distribution is doable for most of us, at least for a few years before retirement age.
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*Wage information (converted from hourly figures) is from California Labor Market Info, an excellent resource for exploring career and job options. The Occupational Information Network O*NET Online is another great resource for vocational exploration. O*NET is sponsored by the US Department of Labor and provides detailed information on almost a thousand occupations.