The Income Required to Be in the Top 1% in Michigan
It takes a lot to get to the top 1% of earners in Michigan or in any state, really. Getting into that top 1% is a hurdle that only a few can get past. If you’ve ever wondered if you’re among the top 1% of income earners in the state, a new study explains exactly how much income it takes to get past that threshold. This number could be a bit jarring, but remember that it’s really the top percentage of income earners, so it’s not like getting into just the upper-middle class.
Michigan’s Top 1% Earn This Much Income
The experts at SmartAsset have put together a tally of the top 1% of income earners across America in each state. They complied the information into a handy map, where you can look at your state and see what those top earners make per year. It really varies per state, as they point out that “what it takes to be considered a top 1% income earner can differ by over $500,000 from state to state.”
As for methodology, SmartAsset looked at 2021 IRS data for individual tax filers and adjusted those numbers to June 2024 dollars using the Bureau of Labor Statistics’ Consumer Price Index for All Urban Consumers (CPI-U) U.S. city average series for all items, not seasonally adjusted.
One of the key findings in this study is that, according to SmartAsset, “It takes over $1 million per year in income to be in the top 1% in three states.” Those states are Connecticut, which has the highest mark to reach the top 1% of earners at $1.15 million, as well as Massachusetts at $1.11 million and California at $1.04 million or more. The lowest threshold for being in the top 1% in a state is $420k in West Virginia. Mississippi comes in as the second lowest threshold at $440,744, and New Mexico is third at $476,196.
So, what do you have to make to be among the top 1% of income-earners in Michigan? That number is $603,834 and puts the state at No. 37 on the tally, compared to other states. The number of people who fit into this category based on tax returns, SmartAsset notes, is 45,085. Also, the income floor on the top 5% of earners in Michigan is $244,489, so it’s much more doable to get into that range than it is the top 1%. Perhaps you can make it a New Year’s resolution to hit one of these marks. What do you think of these numbers? Contact me and let me know, and here’s to a profitable and fruitful new year for you.
Make Your Money Grow with These Low-Risk Investments
Invest in certificates of deposit (CDs)
You’ve probably heard of CDs being low-risk investments. Fidelity.com explains that “CDs provide reliable, fixed-rate returns on a lump sum of money over a fixed period of time, such as six months, one year, or five years.” They add that the great thing is that if you “get a traditional CD at a bank or credit union where they are insured by the Federal Deposit Insurance Corporation (FDIC) or the National Credit Union Association (NCUA).” Usually, CDs have a minimum deposit, and you’ll have to pay a penalty if you take your money out too soon.
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High-yield savings accounts
High-yield savings accounts are like your regular savings account, but they earn more interest. “You can use these accounts for long-term savings goals or to hold extra money from your checking account,” CreditKarma.com states. “For example, if you want to start saving for a house or building up an emergency fund, this could be a great option.”
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U.S. treasury bills, notes and bonds
Forbes.com says that right now, the risk level for U.S. treasury bills, notes and bonds is “very low.” They add that, “U.S. Treasury securities are backed by the full faith and credit of the U.S. government. Historically, the U.S. has always paid its debts, which helps to ensure that Treasurys are the lowest-risk investments you can own.”
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Money market funds
Fidelity.com states that, “Money market funds are mutual funds that invest in short-term, low-risk assets like Treasury and government securities, commercial paper, or municipal debt—depending on the focus of the fund.” They add that, “Because their underlying investments are typically high quality, they are generally less volatile than other types of mutual funds, such as stock funds.”
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Fixed annuities
Fixed annuities are a pretty safe bet. As Forbes.com explains, “Fixed annuities are a popular type of annuity contract that are frequently used for retirement planning, but can also be useful for medium-term financial goals.” They add that, “Sold by insurance companies and financial services companies, a fixed annuity guarantees a fixed rate of return over a set period of time, regardless of market conditions.”
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Invest inside your comfort zone
People talk about stepping outside of their comfort zone in life, but really, investing isn’t a place to do this. You know how much money you have to “play” with, so if you’re worried about putting too much money in the market, these low-risk investments could still help you make money on your money.
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