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Messages - gdubb85

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Early Retirement / Re: Slightly Overwhelmed
« on: October 22, 2018, 07:24:01 PM »
Nice site/videos - I think traveling making surf videos would be my dream... I am from MD and the first video I clicked on was literally a drone shot of Ocean City, MD which I came back from today - an off-season surf trip! My wife and I talked about how we love the ocean but Ocean City just isn't our crowd (tons of smokers, a bit rough) and we started Zillowing Outerbanks places for our dogs as our retired home and I noticed that's where your located I think.  Very weird.

I am an engineer by day and dabble in online marketing on the side for extra income and cushion for my retired self when I get there.

Hows OBX for surfing?  Do you live on the beach? I am guessing that's why you have a successful airbnb there?  I think that's our next vacation spot...

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Early Retirement / Re: Slightly Overwhelmed
« on: August 26, 2018, 12:18:56 PM »
Hey Channat... I registered on this forum after reading your post, because you sound a little like me  8).  I am in a similarish boat at age 33, but have a salaried job on top of side self employment.

Since you have two forms of self employment income that make up your entire income (75K + 30K) you should really look into making an S corp for your 1 person company.  It will save you on taxes.  As an S corp, you play two roles.  You can give yourself a fair salary (something less than your total income) as an employee of your own business based on what the market might pay, your duties, hours worked etc... and then reward yourself as the entrepreneur you are by paying the difference in the form of dividends essentially, saving the ~15% SS/Medicare on that portion.  So you might pay yourself 40K a year and get the rest as dividends.  I don't know if you could lump both activities into one business structure though...talk to an accountant.  A little more paperwork and you will have to look into unemployment insurance, but doing it now will probably pay dividends over the coming years if you keep making $$ in your business on the side as the years go by.

After that, you can sock away $18.5K in the solo 401k as an employee and up to either 20 - 25% additionally as a percent of your total business income.  20% I think for sole proprietor status and 25% if you go S corp.  If you go S corp however, your business income is now equal to the salary you paid yourself, since the dividend distribution does not count.  If you can live without the money now, I would find every avenue to defer taxes.  But also keep in mind you need a substantial cushion in your after tax accounts before doing IRA conversions etc.

I personally would not pay a cent more down on the mortgage.  I also have a 3.5% rate and a $2200 mortgage and the markets have paid me handsomely for investing there instead of the house.

Lots of rambling ideas there, but just so you are aware of options in case you weren't. Of course, I am not an accountant and this is not official advice, DYOR and consult an accountant etc.

What is your self employment gig making 75K/year?  Can you keep doing that/would you be willing with minimal effort throughout the years?

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