Wealth creating strategies

[COcheesehead]

I am a w2 employee and I have a HBB. I am a sole proprietor for a financial success company.

A W2 applies if you are incorporated. If you are a sole proprietor, then the business goes under your individual taxes.

 

[Gumby]

I am a w2 employee and I have a HBB. I am a sole proprietor for a financial success company.

That makes things a little clearer. So you are expecting that your home based business will generate tax losses to offset your W-2 income. Although if it is really a financial success, won't you have even additional income? The only time I ever made actual cash money while generating a tax loss was in rental real estate.


In any event, it seems that you have already discovered a way to generate income.

 

[Gumby]

A W2 applies if you are incorporated. If you are a sole proprietor, then the business goes under your individual taxes.

I get the feeling that he is employed by someone else, but that he also has his own home based business, but I'm sure ramon will correct me if that is wrong.

 

[COcheesehead]

I get the feeling that he is employed by someone else, but that he also has his own home based business, but I'm sure ramon will correct me if that is wrong.

You may be correct.

 

[nvestysly]

Hi Ramonjp... Welcome to e-r.org

I looked for a post from you in a Hi, I'm.... thread but I don't see anything from you. So, other than this thread we can only guess at your age, how much you have to invest, what your liabilities are, etc.

+1 from me regarding living below your means, saving more than you can imagine, taking advantage of tax deferred accounts, taxable accounts are okay too and then watch the compounding magic happen.

Since we don't know your age - I'm guessing your relatively young - compounding will work for you. If you're older, compounding is less in your favor although even in retirement DW and I have seen some significant gains in our account even though we are on a steady withdrawal plan.

I'm not aware of any get-rich-quick strategies. Most of us here on this forum created our wealth the old fashioned way - saved and invested in stocks and bonds.

For reference, here's a chart I made related to how DW and I grew our "fortune." It may not make sense at first but study it a bit and you'll see how our expenses became a lower ratio compared to our income and savings/investments became a larger and ratio with time. We are not the gold standard by any means but the chart may give you insight into age and wealth accumulation. I'm sure there are many on this forum that have us beat by a large margin.

 

[jazz4cash]

I am a w2 employee and I have a HBB. I am a sole proprietor for a financial success company.

I agree with your plan to pay the highest rate debt down first. I am confused that you are asking this question if you manage a "Financial success company". Can you explain what that is?

 

[nun]

What estimated tax payments on the home based business have you planned to pay? I assume you know about income tax and SE tax. Have you opened a solo 401k?

 

[Ramonjp]

I agree with your plan to pay the highest rate debt down first. I am confused that you are asking this question if you manage a "Financial success company". Can you explain what that is?

I asked this question because at the moment I'm learning wealth creating strategies and I want to know what other strategies are out the that I might learn and incorporate with my business

 

[medved]

Marrying a rich girl (or guy) might qualify as a "wealth creating strategy" -- though some would say there are much easier ways to earn money.

More seriously, I really don't think there is a magic answer to wealth creation. If there were an answer beyond "work hard, save aggressively, spend wisely, incur debt reluctantly, and invest prudently," I suspect someone would write a book, be paid well for that, and then everyone would know "the secret."

One possible strategy for "wealth creation" is to take a high level of risk. If it works out well, you might "get rich quick" -- but of course there is a downside to high risk.

 

[Gumby]

You could take everything you have, go the the casino, find the roulette wheel and put it all on red. You have a 47.4% chance of doubling your money in a few seconds.

 

[jazz4cash]

I asked this question because at the moment I'm learning wealth creating strategies and I want to know what other strategies are out the that I might learn and incorporate with my business

We've offered a few suggestions (some serious, some not) so maybe you could tell us 1 or 2 of the strategies you are learning about.

 

[Sunset]

Legal of coarse.

Well......errr....ahh....rats, I'll have to think up some others.

 

[Sunset]

OP - I do a little self employment and I feel there is really no way to have zero taxes due to deductions of your business.
Perhaps in the first year if you buy a bunch of machinery and a truck, but anything that generates real sales or income will outstrip the home deduction and related expense proportion you are allowed.

Now a self 401K you set up would mean you could pile in the max 401K contributions, but if you have a real job with a 401K then that is used up.

Perhaps I have missed a great opportunity here, so fill us in on one of your good ideas for not paying tax, other than not withholding which seems dangerous due to the penalties.

 

[target2019]

I am a w2 employee and I have a HBB. I am a sole proprietor for a financial success company.

Need a link for the financial success company. Sounds sketchy to me.

 

[target2019]

I am a w2 employee and I have a HBB. I am a sole proprietor for a financial success company.

Eventually the chickens come home to roost. If you run a business and don't pay taxes on your W2 wages, it is the sort of thing that triggers audits. I think the IRS has a computer and programmer.

 

[Mdlerth]

I am a sole proprietor for a financial success company.

I plead ignorance. Is this an insider's euphemism for something that an amateur like me might recognize under a different name?

 

[REWahoo]

I plead ignorance. Is this an insider's euphemism for something that an amateur like me might recognize under a different name?

"Get rich quick" scheme. My spammometer is reading 'Wait for it'.

 

[braumeister]

Maybe this?

Home - myEcon

 

[COcheesehead]

I plead ignorance. Is this an insider's euphemism for something that an amateur like me might recognize under a different name?

Amway, HerbaLife....

 

[2017ish]

Maybe this?

Home - myEcon

yikes that page hurts my eyes. If that is the Financial Success Company, its google results are not reassuring....

 

[jollystomper]

Maybe this?

Home - myEcon

I actually took time to view the video. I think many here (who are willing to waste 8 minutes like I did ) would find it amusing at the "hype' around basic personal financial concepts they want to "sell" you... and somewhat sad that folks would be gullible enough to become "members" (which must be done through an associates website, anyone know how to spell 'multi-level marketing'?)

 

[SecondCor521]

My guess: Ramon is under 30, and was invited by a good-looking fellow under-30 to learn about ways to maximize wealth. If it's the one I'm thinking of, they meet at Starbucks and show you some basic stuff about saving, budgeting, and the like but they make it sound more complicated than it really is, but they have a lot of positivity - You can do it, Ramon!

After Ramon opened a number of savings accounts and got going with the strategy, he was then praised for his ability to understand it all, and was informed of the additional tax benefits of becoming his own business and [-]sharing the koolaid with[/-] educating his friends and taking tax write-offs at the same time.

Ramon is a smart guy who is not quite the salesman and is now just ever so slightly worried that the Starbucks, positivity, and info about business write-offs may not be quite accurate, so he is seeking a second opinion.

Did I guess about right, Ramon?

 

[COcheesehead]

I think we may have scared Ramon away.

 

[Bigdawg]

It took me about two threads reading on this forum to realize you guys (and gals) are way more savvy on finances than I will ever be. You folks are always helpful when someone is seeking actual advice. When someone throws out something like Ramon did then expect to get trashed.

 

[HFWR]

I am a sole proprietor for a financial success company.

Hmmm, but you're asking a bunch of strangers on the internet for financial advice?

But, what others have said, keep debt low, spend less than you make, and use the surplus to accumulate assets.