Username79
Confused about dryer sheets
- Joined
- Oct 10, 2008
- Messages
- 3
Hello,
I am 23. I make 110K from my primary job and do independent consulting on side for another approximately 150K per year in income. Last year I made 100K and did not have any additional income. The independant consulting side job started two months ago and I have so made around 50K. Right now, it is a sole proprietorship. I realize that I desperately need to see a tax attorney/CPA to begin forming an LLC or S-Corp and plan to do so in the near future.
So, at 23 my income stands to be around $250K for the next year, with the possibility of it touching $300K. I plan to make a career move in the next year or two which will bring my base income to around $300K before taxes with an additional $100-$150K from the continuing independant consulting job. If my fiance and I marry, which is probable, she should bring another 100K to the table immediately.
My target retirement age is 45-50, where upon I would like to retire with enough interest from investments to sustain a relatively "care free" lifestyle.
So far I have been able to save/invest 70% of my after tax income. My only expense is my personal vehicle. I do not own a home, and my primary job takes care of everything else (company car, gas, food, rent, etc.).
I have 90K sitting in the bank, and have been planning large buys of VFINX and other stalwart low-expense no-load funds (small cap, mid cap, large cap, international) as their prices continue to plummet. I maxed out my 401K at 15.5 last year (first year of having one) and will do the same this year. I do not have an IRA -- do not currently see the point in wrapping up too much money in funds I cannot redeem until I am way past my target retirement age, but I am considering opening and maxing out an IRA each year since the maximum contribution per year is so small.
What I am looking for here is some advice/pointers on how to proceed. I generally try to do all my own research but I am currently a bit overwhelmed at this point by the sudden influx of income, my rapidly worsening tax situation, my need to form a corporation, and the rapidly dropping prices in all areas of the economy (homes, stocks, etc.)
Thanks for reading.
I am 23. I make 110K from my primary job and do independent consulting on side for another approximately 150K per year in income. Last year I made 100K and did not have any additional income. The independant consulting side job started two months ago and I have so made around 50K. Right now, it is a sole proprietorship. I realize that I desperately need to see a tax attorney/CPA to begin forming an LLC or S-Corp and plan to do so in the near future.
So, at 23 my income stands to be around $250K for the next year, with the possibility of it touching $300K. I plan to make a career move in the next year or two which will bring my base income to around $300K before taxes with an additional $100-$150K from the continuing independant consulting job. If my fiance and I marry, which is probable, she should bring another 100K to the table immediately.
My target retirement age is 45-50, where upon I would like to retire with enough interest from investments to sustain a relatively "care free" lifestyle.
So far I have been able to save/invest 70% of my after tax income. My only expense is my personal vehicle. I do not own a home, and my primary job takes care of everything else (company car, gas, food, rent, etc.).
I have 90K sitting in the bank, and have been planning large buys of VFINX and other stalwart low-expense no-load funds (small cap, mid cap, large cap, international) as their prices continue to plummet. I maxed out my 401K at 15.5 last year (first year of having one) and will do the same this year. I do not have an IRA -- do not currently see the point in wrapping up too much money in funds I cannot redeem until I am way past my target retirement age, but I am considering opening and maxing out an IRA each year since the maximum contribution per year is so small.
What I am looking for here is some advice/pointers on how to proceed. I generally try to do all my own research but I am currently a bit overwhelmed at this point by the sudden influx of income, my rapidly worsening tax situation, my need to form a corporation, and the rapidly dropping prices in all areas of the economy (homes, stocks, etc.)
Thanks for reading.