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  • #46
    Originally posted by Molarr
    Ok here it goes.
    Personal Assets non-retirement
    ~$220k cash in savings
    ~$32k in stocks

    Retirement accounts
    $50k in a vanguard target fund, this needs to be revamped I know
    $10k previous job ira
    $27k from previous sep from associateship

    Practice account
    $75k buffer at all times
    $60k credit line available

    $500k student loans, on repaye. will refinance and aim for 3.5% or lower
    ~$600k practice loan 4.5%
    ~$300k practice real estate loan 4.5%

    So, from what I've gathered this is my gameplan
    - create a 401k and roth asap and funnel about $60k into there
    - I am probably not gonna offer health insurance to my staff as I would rather increase their pay and wait for a few years for the office to mature before added that benefit.
    - refinance the student loans and put a $100k down bringing it to $400k a new lowered interest rate.
    - I pay myself salary about $8k/month pretax which comes out to about $6k after tax. From this $6k I pay for my cost of living and fun expenses
    - remaining monthly profits are going to be split 20% liquid savings, 20% some investment and the remaining 60% towards student loans.
    - I am gonna put the new investment house on hold, I don't want to be spread too thin.

    so from my ($220k cash)- ($60k retirement investment) - ($100k towards student loans) will leave me at $40k liquid cash I can keep as an emergency fund. from here I can continue building liquidity monthly while paying off the loans and investing. As my liquid gets higher and higher again I might just lump sum payments into the student loan or use the excess towards something else..
    To max your IRA & 401K you'll need to pay yourself more. But before I say more... How is your "business" structured? Sole proprietorship? S-Corp?

    $220,000 cash - $60,000 (retirement investment) - $100,000 (student loan payment) = $60,000. Not the $40,000 you wrote. Unless I'm missing something. Either way good for an emergency fund.

    If you plan on doing any backdoor Roth conversation, beware the pro-rata rule.

    I'm keep my emergency fund topped off, then excess goes to investments & loans.

    I agree on deferring any new properties or loans. Sell your mother's current house if the neighborhood has fallen that severely. Or let her stay. Your siblings should get involved as prior posts stated.

    Look into rolling your SEP-IRA into your regular IRA if the fund choices & expenses are not good.

    Your CPA has a lot of things he/she/it can work on. Everything I said (& a lot more I didn't I'm sure) is within their realm.


    • Molarr
      Molarr commented
      Editing a comment
      I am an s Corp. different corps for the practice and real estate.

  • #47
    Originally posted by Molarr
    I am an s Corp. different corps for the practice and real estate.
    In the nicest way possible I'm going to say the following: Get professional financial help. As an S-Corp, you're gross income nearing $1,000,000 & net income of "$450kish" you cannot pay yourself such a measly salary. Your CPA is terrible, or you need to heed their advice. This is kinda a big deal, the IRS will have issues with this. Many. And pricey.

    Once that gets settled, you will need to run a calculator (or 2) about contributions & solo 401k contribution rates. To max a sole proprietorship 401k you need to have a minimum "net profit from business" (schedule C) $195,862.50 for 2019 & $198,699.00 for 2020 . For an S-Corp is different, but close (I think less but I don't know for sure).

    Please tell me you are up to date on employer (941) taxes.

    Seriously, fix your 2019 finances now. And start 2020 properly.


    • Molarr
      Molarr commented
      Editing a comment
      Thanks. I meet with my cpa this Thursday so I will go over all points. I appreciate all the help

  • #48
    Just thought I’d give an update. I met with my cpa and interviewed about 5 different financial advisors. For those who are concerned, all my taxes and everything are being handled correctly by my cpa.

    my plan moving forward

    im gonna refinance the student loans and do a bulk payment of $100k in the beginning bringing the loan debt to $400k. After my monthly salary and retirement investments I’m gonna split remaining excess cash into 30% into some sort of investments and the remaining 70% towards my student loans. I’m gonna be doing all of this while keeping about $100k buffer in my business account and a $70k buffer in my personal account.
    My goal is after 5 years is to have all my student loans payed off, at least $500k in investments and $300k for retirement on top of what I already have. I’m 31 now, so by 36 I should be in a pretty good financial position at which point I can re evaluate my longer term financial goals.

    also, p.s. I know I’m probably gonna get scolded for this but I just bought a $60k new car cash. I didn’t want any more monthly payments or debt to worry about. I’m gonna have this car for a long time and it’s a Tesla so maintenance is minimum. So moving forward I will be doing the financial plan listed above while keeping my monthly personal costs at a minimum.