Beginner tips for a SINK

[I Find This Humerus]

Kamban wrote:

I Find This Humerus wrote:

Single income, no kids attending here. Any financial tips specifically for my crowd? What should I do differently than those with dual income and/or kids? 

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Depends on your age and what you want to do with the rest of your life.

I was in your stage of life in my mid-late thirties. Lived in an apartment. Worked hard ( but took vacations), lived way below my means and invested aggressively. I could have retired in my late forties but have chosen to work much less than full time yet keep my skills sharp.

Also found a spouse along the way of my life’s journey.

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Could you be more specific in terms of investing? How much is aggressive and into what?

[wideopenspaces]

I Find This Humerus wrote:

jfoxcpacfp wrote:

I Find This Humerus wrote:

wideopenspaces wrote:

I Find This Humerus wrote:

wideopenspaces wrote:

It sounds like someone should start a pass through business setting up high net worth singles . . . Sounds fun to me, I love playing matchmaker

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What does pass through business mean?

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Like an s Corp, LLC, partnership, etc. A business set up as a pass through entity.

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What’s passing through? Thats just made me more confused, lol.

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The taxable income or loss of the business. iow, you have 2 separate tax entities: the business  and the owner or shareholder. The business reports the profit or loss on a separate tax return (1120/1120S for corporations and 1065 for partnerships) or schedule C for sole proprietorships. However, the results of operations (again, profit or loss of the business) “pass through” to the owner’s personal income tax return.

The profit or loss is reported by the business, but taxed to the owner, not the business.

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I am assuming this reduces your overall taxes somehow?

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Generally, yes, but if you read the article you'll see that it depends on several things- including the type of business. Generally though, many businesses will get a tax cut thanks to the new legislation.

[jfoxcpacfp]

I Find This Humerus wrote:

I am assuming this reduces your overall taxes somehow?

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No, your taxes are the same as they would have been. The pass-through is just a mechanism to simplify tax reporting. The business entity reports the operations of the business and the profit or loss is combined with the taxpayer's other tax attributes (itemized deductions, investment income, wages, etc.) to arrive at one result for tax liability.

[Kamban]

I Find This Humerus wrote:

Could you be more specific in terms of investing? How much is aggressive and into what?

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Sorry typed a long reply last night and the website crashed when I tried to post it.

My experiences were 20 years ago but the principles were the same. My salary was just 100K/ year for 2 years and 170K /year for the next 5 years . Big mistake in continuing to be in the low paying job, over moving out.

But I lived in an apartment paying $500 per month in rent. I cooked half my meals. Many times I ate at high end restaurants thanks to the free drug dinners. Took numerous free trips courtesy of the investigator meetings or pharmaceutical sponsored meetings or advisory boards. Great way to see USA cities for free. All I needed to pay was an extra day or two in hotel charges.

I saved and invested 50% of my income in those 7 years. And continued to do that even after striking out on my own ( that cushion gave me the confidence to hang my shingle). In those days Vanguard was not as popular on the internet but I did invest in blue chip stocks and enrolled in dividend reinvestment plans. And when i had the extra cash i added to the DRIP by buying additional shares. I have more than $50K each in companies like Home Depot, P& G, Intel, Oracle, Kimberly Clark, Abbott etc.

I now work at a relaxed pace 6 hours or less per day, 4 days a week. Have been doing that for the past 5 years. Enjoy the interaction with patients. My income just covers our living expenses, health care and travel. But it leaves my investments to grow untouched till I retire.

 

[Kamban]

CM wrote:

I did. I had not planned to marry. Couldn’t see a reason that would make sense. Then I met my wife and later came face-to-face with my own mortality. I wanted to do whatever I could to make her happy while I’m here and secure after I’m gone (not imminent I hope). She’s a better person than me. I’m more worried about lightning strikes than her running off with my money.

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The thought of asking for a prenup never occurred to me, and in my culture it is unheard of. My wife does not care about money. By being the office manager in my practice she has  markedly increased the collections.

In fact I am having investments bought in the name of an LLC of which she is an equal partner o that she can automatically have 50% of all that we make.

[I Find This Humerus]

Kamban wrote:

I Find This Humerus wrote:

Could you be more specific in terms of investing? How much is aggressive and into what? 

Click to expand…

Sorry typed a long reply last night and the website crashed when I tried to post it.

My experiences were 20 years ago but the principles were the same. My salary was just 100K/ year for 2 years and 170K /year for the next 5 years . Big mistake in continuing to be in the low paying job, over moving out.

But I lived in an apartment paying $500 per month in rent. I cooked half my meals. Many times I ate at high end restaurants thanks to the free drug dinners. Took numerous free trips courtesy of the investigator meetings or pharmaceutical sponsored meetings or advisory boards. Great way to see USA cities for free. All I needed to pay was an extra day or two in hotel charges.

I saved and invested 50% of my income in those 7 years. And continued to do that even after striking out on my own ( that cushion gave me the confidence to hang my shingle). In those days Vanguard was not as popular on the internet but I did invest in blue chip stocks and enrolled in dividend reinvestment plans. And when i had the extra cash i added to the DRIP by buying additional shares. I have more than $50K each in companies like Home Depot, P& G, Intel, Oracle, Kimberly Clark, Abbott etc.

I now work at a relaxed pace 6 hours or less per day, 4 days a week. Have been doing that for the past 5 years. Enjoy the interaction with patients. My income just covers our living expenses, health care and travel. But it leaves my investments to grow untouched till I retire.

 

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If you don't mind me asking, it seems like you invested in some solid companies (as opposed to boom or bust type of stocks) for the long run. How much total money do you have invested in those stocks and what kind of % return are you getting every year?

[I Find This Humerus]

Kamban wrote:

CM wrote:

I did. I had not planned to marry. Couldn’t see a reason that would make sense. Then I met my wife and later came face-to-face with my own mortality. I wanted to do whatever I could to make her happy while I’m here and secure after I’m gone (not imminent I hope). She’s a better person than me. I’m more worried about lightning strikes than her running off with my money.

Click to expand…

The thought of asking for a prenup never occurred to me, and in my culture it is unheard of. My wife does not care about money. By being the office manager in my practice she has  markedly increased the collections.

In fact I am having investments bought in the name of an LLC of which she is an equal partner o that she can automatically have 50% of all that we make.

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Not to be a Debbie Downer but if it ever comes to divorce, I can nearly guarantee she will care about money. Do you really think anyone would just walk away?

[Kamban]

I Find This Humerus wrote:

If you don’t mind me asking, it seems like you invested in some solid companies (as opposed to boom or bust type of stocks) for the long run. How much total money do you have invested in those stocks and what kind of % return are you getting every year?

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No idea how much I have invested since almost all my spare money from 1988-2000 went into these dividend reinvestment stocks. Since many big companies had these programs it was just luck / main option that I choose those. Unfortunately that does nto mean that some can go bust. Three prominent ones were Kodak, Sprint and Motorola, with the later two limping along. Some like Corning did well initially and then petered out.

Unfortunately I also got into the new tech stocks in 1999 or so that went downhill with the crash of 2000. But the older ones like Oracle have done quite well. Overall my returns since 1988 onwards have been 8-9%, counting all the booms and busts.

[Kamban]

I Find This Humerus wrote:

Not to be a Debbie Downer but if it ever comes to divorce, I can nearly guarantee she will care about money. Do you really think anyone would just walk away?

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It could be true, but I think my wife is not after my money. She has access to all my financial records and has many investments jointly held. She is more concerned about my longevity of life and constantly reminds me to exercise, eat healthy and make sure that I take care of my health and have regular check ups ( which as physicians we tend to ignore most of the time and self diagnose and self prescribe).

As CM stated earlier in one of his posts about his wife, my wife is also more concerned about my health and well being than hers.