As surviving Wall Streeters confront the reality of government-imposed pay caps, the NYT dutifully recalculates the cost of an upper-middle-class Upper East Side existence.
$1.6 million pre-tax.
A few people in Manhattan do manage to survive on less than that, so intrepid bankers will no doubt find a way to make do. But it will apparently involve considerable hardship and shame.
- Two vacations a year, sun and slopes: $16,000.
- Modest three-bedroom apartment for $1.5 million [very modest]. Monthly mortgage of about $8,000 and a co-op maintenance fee of $8,000 a month. Total cost: $192,000.
- Summer house in Southampton for $4 million, annual mortgage payments of $240,000.
- Car and driver. Chauffeurs make $75,000 – $125,000 a year, more if you want one with a gun. Garage for the car is $700 a month.
- Personal trainer at $80/hr, 3X a week: $12,000 a year.
- Ball gowns for charity galas. Total cost for three: about $35,000.
- Tutor to supplement $32,000 private school to ensure admission to Ivy League: 30 weeks for $3,750.
- Two children in private school: $64,000.
- Nanny: $45,000.
- Food. $15,000.
- Incidentals: Restaurants. Dry cleaning. Suits. Dog walking. Kennels. Furniture. Computers. Gifts. Doorman tips. Parking tickets. Walking around money.
Add it all up, and you get about $800,000 in annual cash expenses, or $1.6 million pre-tax. Cut the “extras” like the chauffeur, house in Southhampton, ball gowns, personal trainer, and tutors, and it’s still around $400,000, or $800,000 pre-tax.
Good thing Wall Street has already found ways to get around those salary caps!
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