I believe what they're arguing is that you don't pay your mortgage off early with a 3.5% mortgage rate.

You invest your excess money in the stock market (hopefully returning more than 3.5%) instead of paying off your mortgage early.

Definitely not! Otherwise they'll only give you a small raise from what you were making. If they don't know what you're making (and you're underpaid), you'll most likely receive a much bigger increase.

Thanks!! Now I know :)

Definitely not obsolete advice.

Your link references papers that talking about uneducated buyers buying and selling things (or services like car maintenance). Not the same as applying for a job.

If you try to anchor too high when asking for a job you won't be considered for it because they think that you want more money than they can afford to pay.

"There are plenty of professional investors who have beaten the market year after year"

"Multi-decade returns of 20% and above"

Do you have any proof of these over the top claims?

Peter Lynch. He managed the Fidelity Magellan Fund from 1977 to 1990 and averaged a 29% annual return over that period.

http://en.wikipedia.org/wiki/Peter_Lynch#Fidelity

13 years is not multi-decade.

I'm surprised anyone would think that 20% returns are over the top - outsized returns in markets are hardly an industry secret. Triple digit returns are not unheard of. Most of the people making big money don't exactly advertise and some are downright reclusive. But they certainly do exist.

I recommend reading http://www.amazon.com/The-New-Market-Wizards-Conversations/d... and the other versions in the series - I think there is 4 now. These are candid interviews with the individuals involved. They are good reading just for the interested entrepreneur.

Warren Buffett?

This is absolutely false, making more money can make you subject to the AMT (and potentially a higher marginal tax rate), but you will never be in a situation where if you make an extra $1000 you'll owe an extra $1001 in taxes.