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Old 09-30-2012, 08:20 AM
  #121  
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Well I'm 32 no kids and no wife. But I've got 3 cars a boat, a house and a jetski. I look at you and am envious.
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Old 09-30-2012, 08:32 AM
  #122  
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Originally Posted by Alureing View Post
Please school me on how to make a "boat load" of cash. I am 34 years old, I live in ct, I have a beautiful wife and two kids,a 2000 sf house, a 24 ft cc, a 1968 camaro, a full time job at a local hospital as an electrician, own my own full time business, have two employees, and think Im doing well. UNTIL I look on The Hull Truth, Yactworld, etc.... and see all you guys with 40+ foot sweet ass boats riged out to the gills, HOW the &*#@ do you do it??? I can barley pay for what I own now, I see 300,000$ cc's for sale WTF where did I go left?? Anywone out there want to share a secret??
Seriously, what part of the above do you REALLY treasure the most?

The boat load of cash? The toys? Bigger toys?

Or is it the beautiful wife, two kids and a roof over your family's heads? The ony thing I can think of to add on to this is whether you like your work or not.

The rest is just icing on the cake. Be thankful for what you have, not what you don't.

There will ALWAYS be someone with a fatter bank account, bigger boat, more toys.

But do they have what YOU have?

You have it good.
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Old 09-30-2012, 08:52 AM
  #123  
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Originally Posted by mhff34 View Post
So a nail tech with 6 salons can make what an attorney makes, for the sake of argument. What about an attorney with 6 law offices, can they do as well as your nail tech?
Do you mean an attorney who owns 6 offices but has other attorneys hired to provide the services? Or 1 attorney with 6 offices? What if the nail salon started franchising and ended up with 1,000 locations?

Back to OP. I assumed he was looking at a way to get ahead based on his current situation. I would think it is to grow his 2 employee business regardless of what it is. It is a good starting point vs. starting another business, going back to school, etc. Maybe take some night business courses if needed. Not to pursue a degree but get the basic fundamentals under his belt.
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Old 09-30-2012, 08:58 AM
  #124  
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Originally Posted by Danny33486 View Post
No- his business is a small s corp. - 3 or 4 employees. He is leveraged and makes good money on a good year... and pays a decent tax rate - He is not the "Very Wealthy" that everyone is talking about. The difference his he has a business to expense things through. The OP does not. You dont need to be GE or Gordon Gecko to use the tax code..... I have a few friends like this - one is my Financial Planner - I'm a client so when we go do stuff he expenses part of it - almost religiously- He will legitimately bring me some statements or other crap to justify it.
He has incorporated with only 3-4 employees? Why in the world?

He has a business, BUT he can't expense "anything and everything" through it, only if it is business related and essential to the functioning of the business. If he owns a tire store he can't expense the boat.
As for your financial planner he better hope that he doesn't spend entertaining you more than ~10% of the revenue that he generates from your investment business (your $1 mio portfolio yields him no more than $10k even if he churns you at 100%! That gives him a total of $1,000 to wine you and dine you and buy fuel for the boat). The boys at the audit will have a ball with him.
Many people think that they can take the wife to dinner and fuel her truck and expense it all on their 3 man electrician's business. WRONG.
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Old 09-30-2012, 10:08 AM
  #125  
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Originally Posted by Krauthammer View Post
He has incorporated with only 3-4 employees? Why in the world?

He has a business, BUT he can't expense "anything and everything" through it, only if it is business related and essential to the functioning of the business. If he owns a tire store he can't expense the boat.
As for your financial planner he better hope that he doesn't spend entertaining you more than ~10% of the revenue that he generates from your investment business (your $1 mio portfolio yields him no more than $10k even if he churns you at 100%! That gives him a total of $1,000 to wine you and dine you and buy fuel for the boat). The boys at the audit will have a ball with him.
Many people think that they can take the wife to dinner and fuel her truck and expense it all on their 3 man electrician's business. WRONG.
x2 incorporation with just a few employees probably doesn't make sense except in a few scenarios, though he might have a LLC or some other less formal type of structure, otherwise in a C or S corp you get taxed twice (business gets taxed on income and you get taxed on money you take out as salary or dividends)

Writing things off via a business doesn't generate any income (unless you have other investors that you are stealing from). It can let you offset some of your income taxes because businesses (S & C corps) only pay taxes on income after expenses are taken out (unlike individuals, who pay income tax before expenses). None of that does you any good unless the business is making lots o fincome, then you could get a smaller portion of it tax free, but right-offs don't generate any income. I've got a couple corporations for my business and I can tell you that while things like write-offs or non cash expenses (depreciation) help, they don't make a tremendous difference at the end of the day, the only thing that moves the needle is the business making a lot of income or growing in value.
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Old 09-30-2012, 10:24 AM
  #126  
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Originally Posted by Alureing View Post
Please school me on how to make a "boat load" of cash. I am 34 years old, I live in ct, I have a beautiful wife and two kids,a 2000 sf house, a 24 ft cc, a 1968 camaro, a full time job at a local hospital as an electrician, own my own full time business, have two employees, and think Im doing well. UNTIL I look on The Hull Truth, Yactworld, etc.... and see all you guys with 40+ foot sweet ass boats riged out to the gills, HOW the &*#@ do you do it??? I can barley pay for what I own now, I see 300,000$ cc's for sale WTF where did I go left?? Anywone out there want to share a secret??
Right now there is someone fishing off a dock wondering how to make a "boat load" of cash to buy a house, a 24 CC and a 68 camaro.

There is always someone with more and always someone with less.
If you are earning a living, maybe be happy you are not in a wheelchair instead of wondering what everyone else has that you don't.

The millionaire living down the street from you lives in a humble home and drives a 15 year old car and certainly does not have a boat.
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Old 09-30-2012, 03:51 PM
  #127  
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Originally Posted by seaMooch View Post
otherwise in a C or S corp you get taxed twice (business gets taxed on income and you get taxed on money you take out as salary or dividends)
An S corp has no income. It all flows through to the share holders as regular income, not capital gains. Thus there are no S corp income taxes.

I agree with your other comments 100%.
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Old 09-30-2012, 06:11 PM
  #128  
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Originally Posted by Alureing View Post
Please school me on how to make a "boat load" of cash. I am 34 years old, I live in ct, I have a beautiful wife and two kids,a 2000 sf house, a 24 ft cc, a 1968 camaro, a full time job at a local hospital as an electrician, own my own full time business, have two employees, and think Im doing well. UNTIL I look on The Hull Truth, Yactworld, etc.... and see all you guys with 40+ foot sweet ass boats riged out to the gills, HOW the &*#@ do you do it??? I can barley pay for what I own now, I see 300,000$ cc's for sale WTF where did I go left?? Anywone out there want to share a secret??

I am one of those who is asking "How did you do it?" I would love to have the toys you have. Specifically the '68.
I don't know the secret. I am 28 years old, live in Florida, have a beautiful wife, two kids (one our own(8 months), and the other is my niece (11 years) which we have adopted) I recently started my own business. I am major in the hole (financially) because of the business, scraping together everything we can to support the 5-7 employees we have. Luckily my wife works and the business has a great reputation with many repeat customers.
I feel that my hard work and dedication to build my business is my key to success. We have been in business for almost 2 years, and I would not trade my life for anything. I can't wait to have a little more relief financially, but I know that it will come around one day. My drill Sargent always said "whatever does not kill me only makes me stronger"
I will continue to work hard, and if my dice roll correctly, I will be comfortable when I get older.

So I think the secret is HARD WORK and DEDICATION!!! (at least I hope so)

P.S. I am looking for a good business accountant, and a good financial planner. If anyone has any suggestions, please P.M. me.
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Old 09-30-2012, 06:57 PM
  #129  
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I am grateful for all the insight. I have asked the same questions and any advice from those who have done it is so valuable. I am very grateful and blessed for everything that I have but like others, I want to maximize the time that I work so I can provide the best for my family.

This is not mine but I often reflect and think about when I think about picking up more work.





The businessman and the fisherman story
November 8th, 2006 by Kenric

A few years ago, a very rich businessman decides to take a vacation to a small tropical island in the South Pacific. He has worked hard all his life and has decided that now is the time to enjoy the fruits of his labor. He is excited about visiting the island because he’s heard that there is incredible fishing there. He loved fishing as a young boy, but hasn’t gone in years because he has been so busy working to save for his retirement.

So on the first day, he has his breakfast and heads to the beach. It’s around 9:30 am. There he spots a fisherman coming in with a large bucket full of fish!

How long did you fish for?¯ he asks. The fisherman looks at the businessman with a wide grin across his face and explains that the fishes for about three hours every day. The businessman then asks him why he returned so quickly.

Don’t worry¯, says the fisherman, There’s still plenty of fish out there.¯

Dumbfounded, the businessman asks the fisherman why he didn’t continue catching more fish. The fisherman patiently explains that what he caught is all he needs. I’ll spend the rest of the day playing with my family, talking with my friends and maybe drinking a little wine. After that I’ll relax on the beach.”

Now the rich businessman figures he needs to teach this peasant fisherman a thing or two. So he explains to him that he should stay out all day and catch more fish. Then he could save up the extra money he makes and buy and even bigger boats to catch even more fish. The he could keep reinvesting his profits in even more boats and hire many other fisherman to work for him. If he works really hard, in 20 or 30 years he’ll be a very rich man indeed.

The businessman feels pleased that he’s helped teach this simple fellow how to become rich. Then the fisherman looks at the businessman with a puzzled look on his face and asks what he’ll do after he becomes very rich.

The businessman responds quickly You can spend time with your family, talk with your friends, and maybe drink a little wine. Or you could just relax on the beach.¯
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Old 10-25-2012, 05:43 PM
  #130  
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Boat load of cash Is relative to every one-- The question I would ask is "How is your health?" Are you happy? -- No Amount of money can buy those things-- get off "stuff" and focus on STUFF.
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Old 10-25-2012, 06:14 PM
  #131  
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Because of this thread, I read "The millionaire next door" cover to cover two weeks ago. It resolves any question that you have about why some people all everything and why you dont. I highly recommend it.

No spam but real insight.
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Old 10-25-2012, 07:18 PM
  #132  
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Originally Posted by thajeffski View Post
Well I'm 32 no kids and no wife. But I've got 3 cars a boat, a house and a jetski. I look at you and am envious.


OP: Sounds like you're living the American dream. Me too! Just hope my kids can also...
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Old 10-25-2012, 08:37 PM
  #133  
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Originally Posted by oceanluvr30 View Post
First move out of CT and move to a state with no income tax and reasonable property taxes plus the fact you won't have to put up with so many nampy pampy liberals .

Be happy with what you have, live within your means. Plenty of those boats and other things you are envious of have their owners hocked up to their gills. The grass is not always greener. Having a good marriage, healthy, well adjusted kids makes you far more wealthy than plenty of others who have boat loads of cash or debt.
This.
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Old 10-26-2012, 12:29 PM
  #134  
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Originally Posted by Alureing View Post
Please school me on how to make a "boat load" of cash. I am 34 years old, I live in ct, I have a beautiful wife and two kids,a 2000 sf house, a 24 ft cc, a 1968 camaro, a full time job at a local hospital as an electrician, own my own full time business, have two employees, and think Im doing well. UNTIL I look on The Hull Truth, Yactworld, etc.... and see all you guys with 40+ foot sweet ass boats riged out to the gills, HOW the &*#@ do you do it??? I can barley pay for what I own now, I see 300,000$ cc's for sale WTF where did I go left?? Anywone out there want to share a secret??
I've been stone broke, had money, divorced it away, made it back, half-broke again. The happiest days of my life were in college, broke, living in a trailer. Relax. Work hard. Family #1. Live below your means.

Good luck-

Randy
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Old 10-26-2012, 01:39 PM
  #135  
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First you are only 34--a lot of life left! You may have to make some decisions, but some of us who had big boats either built them, or bought older boats and fixed them up--then sold for a profit etc. You have to balance what you can make as an electrician (owner) vs what your time is worth. But one of the ways I got ahead was building/restoring boats. Also turning property (some great chances with the low cost of houses. One of my friends bought 7 houses in Phoenix area--all rented showing a positive cash flow, and were purchased for about 30% of original cost when built about 4 to 5 years ago. The value will come up--and he has positive cash flow until then! ) Look for the opportunities, be patient, and build solid investments.
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Old 10-26-2012, 02:11 PM
  #136  
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Not sure if this is going to answer your "where do I go from here" question, but IMHO, here is the recipe for a nice comfortable life:

1. No matter how much you are making, or where you are in your career path, consistently save 15%+ of your gross income. That means living beneath your means, but you will be amazed at how much you can reduce your overhead with some self control.

2. Forget the expensive vacations, buy and hold your car (15 years has always been my cycle), don't spend your life in restaurants, public school + good parenting instead of private school, don't rush to the doctor with every runny nose, etc...your budget is much more discretionary than you think.

2. Do not marry or have kids young - that will allow you to build up your net worth and get money working for you, so that when you do get married, you have investment income to leverage

4. When you are young work two jobs - make sure you enjoy at least one of them - I was a musician and played 4-5 nights a week while I was working my corporate job - easy to do when you are single

5. Find a niche in whatever your field is and get really good at it. You need to figure out what you can do better than others, and constantly work at increasing your value to your employers..customers....If you need education/training, then do it.

6. Do not let yourself get complacent - if you are not moving forward or upward, you are doing something wrong. Income is a function of skill, venue, hard work, and a little bit of luck. There is no reason why anyone in this country should not be able to move up through the economic classes, other than lack of effort.

I am in CT as well, was extremely poor growing up, and have been very blessed to have been able to achieve financial independence using the formula above.

All it takes is desire, willpower and self-control.
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