Show Posts

This section allows you to view all posts made by this member. Note that you can only see posts made in areas you currently have access to.

Messages - channant

Pages: [1]
Early Retirement / Re: Slightly Overwhelmed
« on: September 02, 2018, 07:17:33 AM »
Yo gdubb!

I've looked into an S corp before and definitely still taking that into consideration. As for my entire income, it's about 75k total. Last year my personal business brought in about 60k after business deductions and this year I'm expecting about the same plus 15k from Airbnb to total somewhere around 75k.

I've already maxed out my solo 401k this year with 18.5k and also put in another employer contribution of 16k. I'm a little nervous that the employer contribution will be more than my allowed contribution amount but I'll be going over that with my CPA soon and understand that I can make a correction before the end of the tax year if necessary. I'm already obsessed with tax deferral. My final income after all deductions this year should be under 30k and for once I'm actually looking forward to tax season!

I'm a photographer/videographer. Most of my income is from making cinematic wedding films but I also do short promo material, documentary work, and some surf and travel stuff. I should be able to do this stuff for a while, but I'm definitely at the risk of burning myself out. Long term goal is to start dialing the weddings back some once I get better at cutting my living expenses and getting a better system into place. You can see my work on my website

How about you?

Early Retirement / Re: Slightly Overwhelmed
« on: July 31, 2018, 07:13:20 AM »
Awesome to hear from you, Jeremy! Unfortunately I still owe $209k on the home with a $1400 mortgage so no FI just yet. Would it behoove me to throw that $30k/year at the mortgage instead? I have a pretty good interest rate at 3.5% so I still feel like maybe it would be better to be investing?

Submitting my paperwork for an Individual 401k with Vanguard today. Ready to put my lazy money to work!

Early Retirement / Re: Slightly Overwhelmed
« on: July 30, 2018, 07:49:30 AM »
Hey Pro, and thanks!

Yes...lots of thought indeed. I'm self-employed, so my only option here would be a Solo 401k which is certainly something I'm considering!

Early Retirement / Slightly Overwhelmed
« on: July 29, 2018, 11:51:13 PM »
Hello Jeremy, family, and fellow forum followers!

I'm hoping I can present an interesting case study for you all and get some advice on my (maybe) unique situation. So here it is:

I'm 30 years old and began saving for retirement a few years ago with a Roth IRA through Vanguard thinking I'd work hard until becoming a happy millionaire at age 59.5. I'm self employed and make about $75k/year before taxes and have since been maxing out the Roth where I currently have about $27k 100% in VTSAX. I've also been stashing some away in a high-yield online savings account. Right now I have about $40k in there. I owe $209,000 on my home with a $1400/month mortgage with no other debt.

I have one other source of income: this year I started to Airbnb my house and projected earnings at this time are in total $15k. Next year I should be able to get around $30k in rental income alone.

Just last week I discovered the exotic and exciting world of early retirement/financial independence and I've been obsessing over the concept and scanning the blogs of Go Curry Cracker, Mr. Money Mustache, Mad Fientist, and the like. Holy crap, this is all so for me. I'm willing and able to limit my spending and cram as much money into investments as I can.

At first I thought this would be as simple as continuing to max out my Roth and moving over my $40k savings into a taxable Vanguard account, and then just throwing as much as possible into that. It's going to be so easy! Not...

As I read through these blogs, I realized how much more complicated and nuanced this world actually is. For one, being I'm currently in the 25% tax bracket, maybe even 28% next year, it would actually be far more wise for me to be using a Traditional IRA instead of the Roth. And then come the (rhetorical) questions: Should I open a Traditional and relocate those funds? Or should I keep the Roth and let that $27k cook and open a Traditional to fund instead? Wait...what's this Solo 401k for the self employed?? Should I have that too?? How much should I be putting into each? What about the taxable account?

Not sure if I should even open the can of worms on how confused I am at the best effort to minimize taxes...input is welcome on that too.

But what it really boils down to here is this:

I've got $27k in a Roth
I've got $40k to invest (I'm totally down with 100% VTSAX)
I am unsure on how to now allocate between Roth, Traditional, Solo 401k, Taxable.
I'm hoping to be putting away $20-$30k ever year after this.
Would love to be financially independent by 45, long enough to get me to 59.5.

And, finally, should I even be thinking about it that way? I sort of see it in two stages. Stage 1: Save for 15 years and then live off those investments until Stage 2: begin withdrawing from IRAs/401k. But I also have been reading about ways to withdrawal from an IRA early. What the heck is the best move here?

If you can't tell, I'm slightly overwhelmed!

Pages: [1]