This is probably a dumb question, but curious what people mean when they say "my portfolio makes more money than I make in salary"?
If, for example, someone makes a 50K salary a year but their investments make 60K a year, then that makes sense.
But, to dig deeper, how is that defined? Is it just 50K gross, or what is left (net-after taxes, 401k contributions, health care, ect).
As for investments making more money, would that just be the dividends from 401k and vtsax or are you looking at dollar amount in accounts on jan 1 and dec 31 of a given year? What about contributions you've make throughout the year into those accounts? Are those included or subtracted out?
I'm sure everybody has their own way of looking at this but I'm just curious how one would go about calculating this to make the statement true?