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Re: Help with a large business decision

We do not work 40 hour weeks or have a physical location other than to store things. We travel to our job sites which are all over the US and while we are there we work 80-90 hour weeks. Currently we are at our jobs for anywhere from 2-4 weeks at a time with 10 people there. I am thinking with the ...
by southwest_stacker
Tue Sep 16, 2014 1:11 pm
 
Forum: Personal Finance (Not Investing)
Topic: Help with a large business decision [capital expenditure]
Replies: 36
Views: 1396

Re: Help with a large business decision

What about your competitors? Even though its a small group, if they are using the latest equipment you are going to be at a pricing/structural disadvantage over the next 10 years. This is true and is one of the reasons I am considering upgrading. That being said my equipment is paid for and while I...
by southwest_stacker
Tue Sep 16, 2014 12:35 pm
 
Forum: Personal Finance (Not Investing)
Topic: Help with a large business decision [capital expenditure]
Replies: 36
Views: 1396

Re: Help with a large business decision

If you have 10 employees and a 40 hr work week, you have 20,800 man-hrs of work in a year. If this new equipment allows you to do the work in 1/2 the time with 2/3 the people, you now have 6933 man-hrs of work to generate the same output. That's equivalent to 3.33 full time employees. Will you get ...
by southwest_stacker
Tue Sep 16, 2014 11:28 am
 
Forum: Personal Finance (Not Investing)
Topic: Help with a large business decision [capital expenditure]
Replies: 36
Views: 1396

Re: Help with a large business decision

Is there a reason you won't say what the business is? Knowing what the business is and what sort of equipment you're talking about may lead to better suggestions. Yes. It is fairly specialized. I bet there are less than ten companies in the US doing what I do. Most people would not know what the eq...
by southwest_stacker
Tue Sep 16, 2014 10:16 am
 
Forum: Personal Finance (Not Investing)
Topic: Help with a large business decision [capital expenditure]
Replies: 36
Views: 1396

Re: Help with a large business decision

Based on what you've laid out, it seems like a good decision to purchase the equipment. Yes, it's one year of profits and it's possible the economy could tank the day after you spend the money, but it seems like the payback on the purchase is so significant and so quick that within a year or two yo...
by southwest_stacker
Tue Sep 16, 2014 8:55 am
 
Forum: Personal Finance (Not Investing)
Topic: Help with a large business decision [capital expenditure]
Replies: 36
Views: 1396

Re: Help with a large business decision

My first instinct reading this post is to suggest that you do not sound like much of a business person. You need to better understand depreciation, debt financing which would limit your initial outlay, and other accounting related things that would change the bottom line. What does your accountant ...
by southwest_stacker
Tue Sep 16, 2014 8:45 am
 
Forum: Personal Finance (Not Investing)
Topic: Help with a large business decision [capital expenditure]
Replies: 36
Views: 1396

Re: Help with a large business decision

You mention that you could do the work in half the time with the new equipment - so the question I would ask is: What the limiting factor to do more business is in your situation? - are you currently limited by the time for each project or do you have downtime between projects and the project volum...
by southwest_stacker
Mon Sep 15, 2014 11:02 pm
 
Forum: Personal Finance (Not Investing)
Topic: Help with a large business decision [capital expenditure]
Replies: 36
Views: 1396

Re: Help with a large business decision

Is it time to update your long-term business plan? Reading between the lines I see: ⋅ Do you need disability insurance? If you get sick or injured, what happens to your income and health benefits, including those of your employees? ⋅ Are you concerned with maintaining a long-ter...
by southwest_stacker
Mon Sep 15, 2014 10:52 pm
 
Forum: Personal Finance (Not Investing)
Topic: Help with a large business decision [capital expenditure]
Replies: 36
Views: 1396

Re: Help with a large business decision

KyleAAA wrote:Soooo, could you split the difference and invest $250k in new equipment while banking the rest?

I'd probably just do it and not think too much about it.



I wish but it is not an option. 500k to upgrade no way to do it incrementally.
by southwest_stacker
Mon Sep 15, 2014 10:49 pm
 
Forum: Personal Finance (Not Investing)
Topic: Help with a large business decision [capital expenditure]
Replies: 36
Views: 1396

Re: Help with a large business decision

You didn't mention what your current savings situation is If the $500K you netted from this year is all you've got then I think sinking almost all of it into the new equipment even with high expected ROI would perhaps be a bit risky, since it would be over-concentrating your capital (financial and ...
by southwest_stacker
Mon Sep 15, 2014 10:34 pm
 
Forum: Personal Finance (Not Investing)
Topic: Help with a large business decision [capital expenditure]
Replies: 36
Views: 1396

Re: Help with a large business decision

Are you sure you would have twice the amount of work to fully utilize the capital outlay? If so, then it's a great purchase. The ROI would be really good as long as you can accurately forecast future production. Good luck. I am not sure I would have twice the work and that is a big part of the gamb...
by southwest_stacker
Mon Sep 15, 2014 10:30 pm
 
Forum: Personal Finance (Not Investing)
Topic: Help with a large business decision [capital expenditure]
Replies: 36
Views: 1396

Re: Help with a large business decision

Are you willing to lay off 3 people as the new machine will allow? What is the amount gained from doing so? All my employees are hourly manual laborers. I have a few core guys that I want to take care of and others that are somewhat transient. It would not be a problem letting three go. Our work is...
by southwest_stacker
Mon Sep 15, 2014 10:28 pm
 
Forum: Personal Finance (Not Investing)
Topic: Help with a large business decision [capital expenditure]
Replies: 36
Views: 1396

Re: Help with a large business decision

My business is really strange in that I am there 100% of the time we do anything. The business does not have much value without me.

I am sure I could sell off the equipment if need be at some reduced price but it could not be a functioning business without me.
by southwest_stacker
Mon Sep 15, 2014 10:24 pm
 
Forum: Personal Finance (Not Investing)
Topic: Help with a large business decision [capital expenditure]
Replies: 36
Views: 1396

Help with a large business decision [capital expenditure]

I have a small business that I have ran for about ten years. I am a specialized contractor with about ten employees. I have had a six figure net profit every year I have been in business. This year was my best year ever and I will probably have a net profit of close to 500k. I am looking at buying s...
by southwest_stacker
Mon Sep 15, 2014 10:08 pm
 
Forum: Personal Finance (Not Investing)
Topic: Help with a large business decision [capital expenditure]
Replies: 36
Views: 1396

Re: Tax Deduction for Charitable Contributions at Businesses

You're kidding right? You are really going to keep (or scan) 100 receipts for $1 each? Considering I'm in the top tax bracket, this could save me enough in taxes to buy a decent dinner. It all adds up. If you are in the top tax bracket I would assume your time is worth more spent doing whatever it ...
by southwest_stacker
Sat Sep 13, 2014 2:19 pm
 
Forum: Personal Finance (Not Investing)
Topic: Tax Deduction for Charitable Contributions at Businesses
Replies: 15
Views: 865

Re: Hiring your kids

I get what you are saying but that does bring up an interesting point. Can the government really dictate what you can pay someone? As long as you are paying all the payroll taxes and the person is issued a W2 it seems you should be able to pay them what you want.
by southwest_stacker
Wed Sep 10, 2014 1:18 pm
 
Forum: Personal Finance (Not Investing)
Topic: Hiring your kids
Replies: 34
Views: 2099

Re: Hiring your kids

I am not sure about the laws on hiring them and also paying them way above what the work they are doing is worth. Since the whole point of this endeavor is to pay your children to do essentially nothing I would avoid this as it is blatant fraud. I am not going to pay them to do nothing. We have 5 c...
by southwest_stacker
Wed Sep 10, 2014 12:55 pm
 
Forum: Personal Finance (Not Investing)
Topic: Hiring your kids
Replies: 34
Views: 2099

Re: Hiring your kids

If you hired them, and they worked enough to earn 6K, how do you know they would want to put their money into a Roth? ETA: Even at $10/hr they would have to work 11 hours every week, all year long, to earn that 6K. I was thinking along the lines of a salary of $500 a month and then they help do wha...
by southwest_stacker
Wed Sep 10, 2014 12:26 pm
 
Forum: Personal Finance (Not Investing)
Topic: Hiring your kids
Replies: 34
Views: 2099

Re: Hiring your kids

What you are describing is tax fraud. If you pay them a fair market wage, then it's fine. When you run your projections, just factor in inflation. $3M 50 years from now wont have the purchasing power it does today. That is what I was wondering. I was not going to pay them something astronomical pro...
by southwest_stacker
Wed Sep 10, 2014 11:30 am
 
Forum: Personal Finance (Not Investing)
Topic: Hiring your kids
Replies: 34
Views: 2099

Hiring your kids

I have my own business with 9 employees. We max out every tax advantaged investment option we can as well as maxing out coverdells each year for our kids. I was thinking I would like to hire my kids to do basic stuff around the office and officially pay them as W2 employees so that they could open u...
by southwest_stacker
Wed Sep 10, 2014 10:38 am
 
Forum: Personal Finance (Not Investing)
Topic: Hiring your kids
Replies: 34
Views: 2099

Re: Portfolio Advice Needed $1M age 40

I'll edit my original post, but the people recommending Coverdell IRAs, the AGI limits are $220K which with my salary of $365K makes us not eligible, unless I'm misreading. There are ways around that. The parent can control the account but anyone can contribute. You could make 10 million a year and...
by southwest_stacker
Sun Sep 07, 2014 4:44 pm
 
Forum: Investing - Help with Personal Investments
Topic: Portfolio Advice Needed $1M age 40
Replies: 18
Views: 2043

Re: Portfolio Advice Needed $1M age 40

Quick nitpick: Open, and fund to the max, Coverdell Education IRAS for each child. They are very flexible, much more so than a 529. Vanguard does not do these accounts any more. Do this. It is currently 2k per year per child. Don't plan on using money from your taxable investments for college when ...
by southwest_stacker
Sun Sep 07, 2014 4:18 pm
 
Forum: Investing - Help with Personal Investments
Topic: Portfolio Advice Needed $1M age 40
Replies: 18
Views: 2043

Re: our renters want to buy our rent house

I know people want to make money but I personally would never enter a deal thinking up front "hey, it's likely they won't complete the deal and I'll pocket their money." Even if said person was bugging the crap out of you to do it? I am not wanting to structure it where it is abusive or t...
by southwest_stacker
Wed Mar 26, 2014 12:14 am
 
Forum: Personal Finance (Not Investing)
Topic: our renters want to buy our rent house
Replies: 20
Views: 2629

Re: our renters want to buy our rent house

Lots of good advice so far - thanks. To answer some questions: I am not actively trying to sell the property. I had not even thought of selling it until the tenants brought it up. If I can get a good price I would be ok selling it and then I would go look for another bargin. When I said I didn't wan...
by southwest_stacker
Tue Mar 25, 2014 10:17 pm
 
Forum: Personal Finance (Not Investing)
Topic: our renters want to buy our rent house
Replies: 20
Views: 2629

Re: our renters want to buy our rent house

Thanks for the replies. As to if we want to sell it we don't really care either way. We are not actively trying to sell it but everything is for sale at the right price. We bought this particular house from a distressed seller for cash and got it for approx 25k below market so if we sold it we could...
by southwest_stacker
Tue Mar 25, 2014 6:56 am
 
Forum: Personal Finance (Not Investing)
Topic: our renters want to buy our rent house
Replies: 20
Views: 2629

our renters want to buy our rent house

Our renters in one of our or rent houses want to buy it. They want to do some type of rent to own type deal. I don't really care either way if they buy it or don't but I want to make sure I do the paperwork right. I read somewhere that like 90% of the people that do this never end up buying the prop...
by southwest_stacker
Tue Mar 25, 2014 12:10 am
 
Forum: Personal Finance (Not Investing)
Topic: our renters want to buy our rent house
Replies: 20
Views: 2629

Re: Cars: Lease vs. buy. (Similar to houses? rent vs. buy?)

The car dealer is not going to lose money. The have actuaries that know what the car is going to be worth when the lease is up. They are going to get enough money from you in the form of upfront payments and monthly payments to cover the loss in value of the car, their cost of capital, and a health...
by southwest_stacker
Fri Mar 21, 2014 7:12 pm
 
Forum: Personal Finance (Not Investing)
Topic: Cars: Lease vs. buy. (Similar to houses? rent vs. buy?)
Replies: 47
Views: 3690

Re: Cars: Lease vs. buy. (Similar to houses? rent vs. buy?)

The car dealer is not going to lose money. The have actuaries that know what the car is going to be worth when the lease is up. They are going to get enough money from you in the form of upfront payments and monthly payments to cover the loss in value of the car, their cost of capital, and a healthy...
by southwest_stacker
Fri Mar 21, 2014 5:45 pm
 
Forum: Personal Finance (Not Investing)
Topic: Cars: Lease vs. buy. (Similar to houses? rent vs. buy?)
Replies: 47
Views: 3690

Re: How do you keep all your important documents?

I have the neat scanner and use it and the software. It works well but I have some concerns about the proprietary format and the size of the data file. In just one year of use my file is over 400mb. I wonder whats going to happen as the file gets huge and worry about it being corrupted and losing ev...
by southwest_stacker
Sat Nov 30, 2013 12:16 pm
 
Forum: Personal Finance (Not Investing)
Topic: How do you keep all your important documents?
Replies: 43
Views: 3706

Re: Wanting to spend money all of a sudden

I just had the time to really sit down and read through all the posts here in detail and let them sink in. Lots of wisdom spoken here and I it may be some sort of depression I don't know. This may sound dumb but about 8 years ago I was making 40k a year. I was even working two jobs to get this done....
by southwest_stacker
Tue Jun 18, 2013 12:36 pm
 
Forum: Personal Consumer Issues
Topic: Wanting to spend money all of a sudden
Replies: 76
Views: 6051

Re: Wanting to spend money all of a sudden

I just want to know how you have retirement fully funded, but yet can't cut back on work?? The two don't jive. Either you have a lot of money which buys you financial freedom or you don't. Which one is it?? Like I was saying work is complicated. 95% of my business comes from 5 companies. I have bee...
by southwest_stacker
Tue Jun 18, 2013 12:11 pm
 
Forum: Personal Consumer Issues
Topic: Wanting to spend money all of a sudden
Replies: 76
Views: 6051

Re: Wanting to spend money all of a sudden

Lots of good advice here - Thanks. As to the hours of work I am self employed and work 7 days a week. Long term I am working on some ideas to get me more time off maybe hiring more help, etc but for now there is not much I can do about it. Work is complicated and pretty much all of our business come...
by southwest_stacker
Mon Jun 17, 2013 6:48 pm
 
Forum: Personal Consumer Issues
Topic: Wanting to spend money all of a sudden
Replies: 76
Views: 6051

Re: Wanting to spend money all of a sudden

Start buying guns, lots of ammo and go shooting on the weekends. That'll burn up some cash. I do like guns but it is a similar deal. I have bought maybe ten of them over the past couple years and have not shot a single one of them. I used to enjoy shooting, hunting & fishing but have not been i...
by southwest_stacker
Mon Jun 17, 2013 5:46 pm
 
Forum: Personal Consumer Issues
Topic: Wanting to spend money all of a sudden
Replies: 76
Views: 6051

Wanting to spend money all of a sudden

I consider myself a frugal person. I am 36, have a paid for house,no debts, good income, and fully fund retirement. I think I am way ahead of the game for our age. Years ago I bought a sports car and sold it after a year because I did not drive it. It had nothing to do with the cost of it or needing...
by southwest_stacker
Mon Jun 17, 2013 5:33 pm
 
Forum: Personal Consumer Issues
Topic: Wanting to spend money all of a sudden
Replies: 76
Views: 6051

Re: First Time Landlord: Am I Doing It Right?

Sounds like good renters to me.

We have two rental properties and I would have no problems with them as tenants.

I would never ask for tax return or bank statements.

I would get both to sign.

The fact they are wanting a two year lease is a a good thing IMHO.
by southwest_stacker
Mon Jun 17, 2013 5:19 pm
 
Forum: Personal Finance (Not Investing)
Topic: First Time Landlord: Am I Doing It Right?
Replies: 27
Views: 1824

Re: What % of Gross Income Should You Spend on a New Car?

Before that we had a 13k car, a 8k car, and a 3k car. All were reliable, all had AC, all did there job on getting us from point a to b. I don't see why people want to spend so much on a stupid car to impress someone they don't even know sitting next to them at a stoplight. It isn't always about imp...
by southwest_stacker
Fri Jun 14, 2013 11:25 am
 
Forum: Personal Consumer Issues
Topic: What % of Gross Income Should You Spend on a New Car?
Replies: 70
Views: 3368

Re: Pest control with concerns about baby

You should be ok there are sprays that are approved for use in daycares and stuff like that. Just spray when the baby is not home and keep him out of the house until it dries. If you are going somewhere for the weekend or something it would be the perfect time to spray on your way out when you will ...
by southwest_stacker
Fri Jun 14, 2013 10:41 am
 
Forum: Personal Consumer Issues
Topic: Pest control with concerns about baby
Replies: 12
Views: 1027

Re: What % of Gross Income Should You Spend on a New Car?

I have always thought it is crazy what people spend on cars. Not a little crazy - total crazy. Cars lose value FAST. How people can spend so much of their income on a fastly depreciating item blows my mind. I guess when I was in high school I thought it was important what I drove and how it looked b...
by southwest_stacker
Fri Jun 14, 2013 10:35 am
 
Forum: Personal Consumer Issues
Topic: What % of Gross Income Should You Spend on a New Car?
Replies: 70
Views: 3368

Re: Having a renter deposit rent directly at bank?

Can't they just have their bank accounts auto send you a check every month? I think you missed the part where the OP wrote that the tenants don't have bank accounts. I wouldn't give them deposit slips. Meet them at a bank central to the two locations. The meeting them is the hard part. Between thei...
by southwest_stacker
Tue May 07, 2013 1:46 pm
 
Forum: Personal Finance (Not Investing)
Topic: Having a renter deposit rent directly at bank?
Replies: 32
Views: 1821

Having a renter deposit rent directly at bank?

We have two rent houses and both renters pay us every month in cash. They don't have bank accounts. We live about 10 miles from one and 30 miles from the other. Every month we have to meet up with them somewhere to get the rent. It is kind of a hassle. Interestingly enough both of them live right by...
by southwest_stacker
Tue May 07, 2013 1:22 pm
 
Forum: Personal Finance (Not Investing)
Topic: Having a renter deposit rent directly at bank?
Replies: 32
Views: 1821

two retirement accounts with two jobs?

I own a small business (LLC) with ten employees and have a simple IRA set up with it. I recently formed another LLC with no employees other than me that is totally unrelated and in a separate field than the first LLC. Can I set up and participate in any type of retirement plan simple/sep/solo 401k w...
by southwest_stacker
Wed Apr 24, 2013 3:55 pm
 
Forum: Investing - Theory, News & General
Topic: two retirement accounts with two jobs?
Replies: 6
Views: 542

Re: can't pay my taxes

I don't know how much you owe, but you are in MUCH better shape if it is not five figures. I know that from personal experience. If it were only 4 figures he wouldn't have a problem paying it. How much easier is it to pay $9,999 than $10,001? How much does it cost to reduce a 5 figure debt to a 4 f...
by southwest_stacker
Mon Mar 25, 2013 9:35 am
 
Forum: Personal Finance (Not Investing)
Topic: can't pay my taxes
Replies: 12
Views: 2185

Re: can't pay my taxes

Thanks for all the advice.

I am definitely filing on time and am going to visit with accountant on options.

The amount I have due on April 15 is 5 figures but I will be able to pay over half maybe 3/4 of it on time. The remainder I should be able to pay in May or June.
by southwest_stacker
Mon Mar 25, 2013 8:31 am
 
Forum: Personal Finance (Not Investing)
Topic: can't pay my taxes
Replies: 12
Views: 2185

can't pay my taxes

I am self employed. Have been for many years. I made all my quarterly payments in 2012 but just heard from accountant that I will have a large tax bill. I made a lot in 2012 but did not think the taxes would be this bad. Most of the money we made was used to pay off debts and then we had a major bus...
by southwest_stacker
Sun Mar 24, 2013 6:21 pm
 
Forum: Personal Finance (Not Investing)
Topic: can't pay my taxes
Replies: 12
Views: 2185

Re: recommend a online background/credit check service

I have a general question. What are the specific reasons for checking credit history of a prospective tenant? Will a low score deter you from renting or are you more interested in checking their bill payment history? Not necessarily just the score but what is on there. A credit history will also sh...
by southwest_stacker
Sat Mar 23, 2013 4:38 pm
 
Forum: Personal Finance (Not Investing)
Topic: recommend a online background/credit check service
Replies: 9
Views: 899

recommend a online background/credit check service

We are going to be renting out a house soon and are looking for a good online service to do a credit/background check. This is in Texas. Any recommendations?
by southwest_stacker
Fri Mar 22, 2013 12:44 pm
 
Forum: Personal Finance (Not Investing)
Topic: recommend a online background/credit check service
Replies: 9
Views: 899

Re: Mathematicians or statisticians here? Seeking your advic

I have a composite math / science minor. Took some graduate level math classes. I did not start as late as you but I did not really take any prep math classes in high school and was just kind of thrown into it in college. This was back before they had the placement tests or likely I would have not s...
by southwest_stacker
Thu Mar 07, 2013 3:22 pm
 
Forum: Personal Finance (Not Investing)
Topic: Mathematicians or statisticians here? Seeking your advice
Replies: 66
Views: 5880

Re: What is a 'reasonable compensation' for an S Corp?

I will add an example to clarify what I was saying. Lets say you are a Doctor and you have an S corp for your practice. Your net revenue is 300k / yr. It would be hard to justify a 30k salary since you are making the big bucks because you are a doctor. On the other hand lets say you bought a 500k bu...
by southwest_stacker
Wed Mar 06, 2013 7:40 pm
 
Forum: Personal Finance (Not Investing)
Topic: What is a 'reasonable compensation' for an S Corp?
Replies: 16
Views: 1735

Re: What is a 'reasonable compensation' for an S Corp?

200k has worked well for me and has satisfied the irs and my cpa over the years (as pres of a small yet profitable company) even with multiples of that left for distributions in good years. Of course if the S-corp made 100k, then 70k may be enough. That seems way high and defeats the purpose of the...
by southwest_stacker
Wed Mar 06, 2013 7:33 pm
 
Forum: Personal Finance (Not Investing)
Topic: What is a 'reasonable compensation' for an S Corp?
Replies: 16
Views: 1735

Flood zones / insurance

Anyone know much about flood zones / insurance? I bought a house in 2010. At the the time the lender determined it was not in a flood zone and flood insurance was not required. I have the flood certification showing this. The certification is based off a 2007 map. In 2011 I refi'd and the lender sai...
by southwest_stacker
Wed Mar 06, 2013 5:53 pm
 
Forum: Personal Finance (Not Investing)
Topic: Flood zones / insurance
Replies: 2
Views: 252
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