“Do you like my silicone valley?”
New York Times – August 5, 2007:
By almost any definition — except his own and perhaps those of his neighbors here in Silicon Valley — Hal Steger has made it.
Mr. Steger, 51, a self-described geek, has banked more than $2 million. The $1.3 million house he and his wife own on a bluff overlooking the Pacific Ocean is paid off. The couple’s net worth of roughly $3.5 million places them in the top 2 percent of families in the United States.
Yet each day Mr. Steger continues to toil in what a colleague calls “the Silicon Valley salt mines,” working as a marketing executive for a technology start-up company, still striving for his big strike. Most mornings, he can be found at his desk by 7. He typically works 12 hours a day and logs an extra 10 hours over the weekend.
Silicon Valley is thick with those who might be called working-class millionaires — nose-to-the-grindstone people like Mr. Steger who, much to their surprise, are still working as hard as ever even as they find themselves among the fortunate few.
But many such accomplished and ambitious members of the digital elite still do not think of themselves as particularly fortunate, in part because they are surrounded by people with more wealth — often a lot more.
SN – have I mentioned that you’re my new hero? You have the best taste in teaser pics.
But, even more valuable than the money is the experience of participating in a startup. Believe it or not! And when it is suceessful, it’s really great! and if it busts… you try again! Enjoy every minute of that 12-18 hour day! It won’t last forever.
Get a good idea, find some friends that you want to share the experience with and go for it!
That article hits home. I read it this weekend. This topic has some very tricky dynamics to it. Your perception on how you are doing is linked to (at least):
1) the cost of living where you are
2) your time to obsolescence
3) work satisfaction
4) outside work plusses (family, climate etc)
The problem with a parameter like 2) is that for those with the nestegg they have procured, that time when it comes, they can no longer get the high paying job, starts the clock on the nestegg drain as for sure any future job will most likely be on downward payscale towards what is inevitably a retirement with no pension and a reliance on the nestegg plus small contributions from 401ks and puny SS. I can see that those with 2) getting close may be worried about living here in the valley. Its expensive and a falling dollar with volatile market can make those folks wonder.
tits { visibility: visible; }
** wishful thinking **
geez, where’s UNICEF and Oxfam when you need them …?
Whats the price per square foot on THAT silicon valley? lol
nice pic!!
#6
That would usually be 10,000 an hour.
I have news for you. Being worth 3 million bucks nowadays means nothing.
And a 1.3 million dollar home is also nothing in California. That’s the price of an average 2,000 sq foot, 3 bedroom home in a fairly nice neighborhood here in LA.
I don’t know where you guys live, but the dollar ain’t what it used to be.
8. “Being worth 3 million bucks nowadays means nothing.”
The interest alone would be no less than $150,000 a year. If you can’t live in the US on that there’s something wrong with you.
With three million you could easily live comfortably in most of the US But if you chose to piddle it away on mcmansions and solid gold hummers, I guess there’s no one to blame but yourself.
this isn’t the first time I recognize the source of the pic…
$150,000 a year. Take out taxes and you’re down to how much? California has I think a 10% state tax, and throw in a federal 30%, and you’re down to 90k.
But you can always take your money and leave. Move to Nevada, Utah, Idaho, Montana, or whereever else you choose. The 3 million dollar nestegg will allow you to live comfortably almost any other place, but no you won’t dine on champagne and caviar, have a limo on call, and a Lambo in the garage.
I think the Silicon Valley lifestyle is the problem here. The uber-rich make up the upper class. The merely-rich are just middle class. Real working stiffs who toil at their 100K/yr jobs are the sweatshop guys.
That scene is what partially cost my best friend his life. He worked at one of the big old SV companies for 6 years. He was a PhD and member of the technical staff for the company’s internet division. He was doing well by all accounts. He made 100K/yr, finally paid off his student loans, and had over $100,000 in savings. He lamented that he could never afford a house at his salary though.
Then the company terminated its internet plans and let him go. Last I talked to him, he sounded upbeat about starting something new, or becoming a faculty member at an engineering school. He acted like the future was wide open for him.
One month later, on his birthday, he went back to his apartment and shot himself. I remember trying to call him to wish him a happy birthday, but got no answer. I tried his cell phone, no answer. I wondered what was going on. Then his phones went disconnected and then a month later I get a call from his sister who was calling people in his address book and letting them know what happened.
Be careful guys. Working yourself to death is not a lifestyle.
#12 – George
Sad story. Some people just carry it within and then all of a sudden they’re doing a drastic thing.
11. “and you’re down to 90k. ”
Oh you’re so right. There is no way a family could live on only 90 grand a year. That’d be impossible. Even if you consider you’re neither working nor commuting, that’d certainly be impossible.
And of course that’s assuming only a whopping 5% return. And let’s also not forget that no one making $150,000 has to pay taxes, apparently. Under your argument. Not mine
Rich in Silicon Valley, you’re a big damn hero…anywhere else, you’re a bloodsucking Neocon socio-fascist…F’ing hypocrites, all of ya!
I have no sympathy for these guys. The second they start caring about us who are struggling at or just above the poverty line, I’ll start worrying about them.
Last year we lived on less than 40k and lived very well here in Wis.Where is their heads? Up their butt.On that much we gave to our church helped out our kids and had a lot of fun.People life isn’t a pissing contest its a party.We feel blessed living in a country that takes so little work to live well.
“Thus I considered all my activities which my hands had done and the labor which I had exerted, and behold all was vanity and striving after wind and there was no profit under the sun”
All these centuries and we still haven’t learned much of anything.
#8, don’t be a dipwad.
I am 32 yrs old and could retire this year with 3 million in the bank. (and retire with a raise, at that)
Of course, I choose not to live in SV.
#2 – You’re right on. I participated in a startup and worked 16 hrs. a day, 7 days a week for a year. It was well worth it. Had the company for 21 years, sold it and worked for the new owner three years and retired. Once I sold the company, it was a real pleasure to go to work and do my job with no heavy responsibility or worries.
I betcha it ain’t every blog where everybody “gets” a joke written in html. But it was cool.
I’m sick of hearing how those of us in the Silicon Valley have it so easy with three million in the bank. Anywhere else in the United States we could retire for the rest of our lives. You’re absolutely right – we could live elsewhere. But we would have to leave our families, friends, community organizations. Think about it – the article is not about having a pity party for these guys and the couple million in the bank. The real underlying story in the article is about how the costs to live here are so ridiculous that even with a six figure income, we can hardly make the mortgage. Most of these guys I know aren’t driving the Hummer, buying the latest and greatest everything. They are just trying to provide for their families while doing all the fun things other families are doing (in Wis). Remember, its not just the houses that cost more here – you think your gas prices suck, we pay about 30% more than you. Do you have sales tax in your state? We pay 8%. Ever try to take the kids to the Ballpark – A Giants game will set you back a small fortune.
Awww, boo frickety hoo. Poor babies. “Working-class” millionaires, my ass. People are out of work, children have no health insurance, and we’re fretting about millionaires who have trouble making the McMansion payment, and hedge fund managers with their knickers in a twist about maybe having to pay regular income tax (ie, what the rest of us pay) on their $135,000,000.00 paychecks.
Yep, there’s something wrong with this country.
And much as it pains me, I must agree with Jerk-Face. If you can’t live on $150,000.00/yr, move the fuck out of siliicon valley. Or quit wasting your life trying to keep up with the Joneses.
#22, Ted,
I don’t feel your pain. In fact I only have contempt for your crying.
So a Giants game is expensive. Tell us, are their tickets more expensive than tickets for any other major league game?
You have an 8% sales tax. Is that waived for those earning less than oh, say, $40,000? Not just in Silicon Valley, but in Los Angeles or Sacramento?
You pay 30% more than us for gasoline. Then don’t drive as much or get a more fuel efficient car. Besides, when you annual fuel bill exceeds your annual car insurance let us know. After car payments and insurance, fuel is a distant third in the cost of owning a car.
So you would be leaving behind your friends and community organizations. Guess what. Every community in this nation has community organizations. There are also a lot of nice people that would make nice friends. If your family stays in SV then so be it. I assume you mean extended family as most immediate families would migrate with you.
What I don’t understand is why companies would remain in an area of such high costs. A software developer could find many great programmers in such far off places such as Indianapolis, Milwaukee, Memphis, Kansas City, or Louisville.
20. Hopp- my story is similar to yours, I decided to cash it in and move to a less expensive area. I work, but only because I dont mind work, and can do it it on my own terms……now. Keeping up with the Joneses is a losers struggle.
22. I dont know much about Northern California COL but in most areas, just moving an hour away from the “hotspot” can be eye opening, especially in housing.
Personally, this is why I’ve stayed in Utah for longer than I planned, and why moving to Phoenix, Seattle, or No. Cal. isn’t appealing to me.
Eventually telecommuting will become a necessity and solve most of these problems, but until then the economics of “fly over country” will beat those of the coasts hands down.
#24
Touche to your point – and if I could just rebut a couple of your statements.
Is the 8% sales tax waived for those earning less than 40K? Actually for most it is. If you live anywhere in the state of California and only make 40K – you qualify for the government subsidized food program (EBT). Tax is not payed for any goods purchased using EBT.
Buy a more fuel efficient car? Where do you think Toyota is selling all those Prius’ – remember when I said that most folks here aren’t buying those Hummers you think we all own. And to Mark (#25) – you are absolutely right. Living an hour or more away will benefit you much more financially. But those houses start at a whopping 500K rather than 700K. This also lends to my point about the gas. Drive 150 miles round trip to work everyday – it becomes you second largest auto expense next to the payment.
The Googles and the Yahoo’s of the world rake in so much cash every year that it makes no difference where they headquarter. The big draw for staying in SV is to impress the talent – give them a reason to choose Google in BEAUTIFUL California rather than M$ in dreary cold Washington.
BTW – looking around at tickets for other Baseball teams:
Cincinnati Reds – tickets for 4, hot dogs for 4, sodas for 4 = $48
Milwaukee Brewers – seats behind home plate = $48
San Fran Giants – those same seats behind home plate – try to get them from a season ticket holder for
less than $300/seat. Most will not even consider selling one ticket.
My point is – the cost of everything here is so inflated that even if you are making $150K/year, you still feel like you are barely getting by.
less than $300/seat. Most will not even consider selling one ticket.
My point is – the cost of everything here is so inflated that even if you are making $150K/year, you still feel like you are barely getting by.
Dvorak has got to know where I am coming from on this.