Search found 575 matches

by financial.freedom
Wed Mar 25, 2020 9:36 am
Forum: Personal Finance (Not Investing)
Topic: Small business disaster loans
Replies: 3
Views: 482

Small business disaster loans

A lot of businesses are struggling right now. We're still operational but expecting a payroll hit of 50% this month and maybe more for the next few months. Online, I see loans through the federal government for disaster relief. It looks like the rate is 3.75%. But I don't see the specifications for ...
by financial.freedom
Mon Mar 23, 2020 6:17 pm
Forum: Investing - Theory, News & General
Topic: Rebalancing -- preferential to use new income or sell bonds?
Replies: 4
Views: 454

Re: Rebalancing -- preferential to use new income or sell bonds?

Locking in a loss inside a portfolio is not a thing. Stated otherwise, it is entirely possible that to rebalance a portfolio you sell something that has gone down. Also, it is perfectly legitimate when making contributions to a portfolio that those contributions be directed toward bringing asset al...
by financial.freedom
Mon Mar 23, 2020 4:38 pm
Forum: Investing - Theory, News & General
Topic: Rebalancing -- preferential to use new income or sell bonds?
Replies: 4
Views: 454

Rebalancing -- preferential to use new income or sell bonds?

I've passed the 5% band threshold for rebalancing (off by 6-7% probably after today's close). I wanted to pull the trigger on selling bonds, but BND was up by 2%. So instead, I transferred some savings to 100% stocks ( 30/70 international/US total stock market). My feeling was, our munis in taxable ...
by financial.freedom
Thu Mar 19, 2020 3:46 pm
Forum: Investing - Theory, News & General
Topic: Getting back on track: A guide to smart rebalancing
Replies: 0
Views: 209

Getting back on track: A guide to smart rebalancing

Stay the course and be smart about rebalancing :beer https://personal.vanguard.com/pdf/ISGGBOT.pdf From the paper 1. Rebalance to manage risk and emotion. The purpose of rebalancing is to maintain a portfolio’s risk and return characteristics, not to maximize returns. Once you construct the appropri...
by financial.freedom
Mon Feb 03, 2020 10:18 pm
Forum: Personal Investments
Topic: Does this deposit break the gift limit for 2020?
Replies: 9
Views: 866

Re: Does this deposit break the gift limit for 2020?

Thank you for the replies. This was really unexpected. Definitely will give them a big hug. Plan is to put it into 529 -- now I have to figure out the limit for that as well.

Cheers!
by financial.freedom
Mon Feb 03, 2020 9:59 pm
Forum: Personal Investments
Topic: Does this deposit break the gift limit for 2020?
Replies: 9
Views: 866

Does this deposit break the gift limit for 2020?

My parents decided to each give me a 10k check as a gift for 2020. They said they're allowed to each give me up to 15k before exceeding the gift limit -- is this correct? I'm concerned that because they have the same last name and both checks are from the same checking account the IRS could view it ...
by financial.freedom
Wed Jan 29, 2020 6:32 pm
Forum: Personal Finance (Not Investing)
Topic: Made partner but no contract after 2 months, what should I do?
Replies: 45
Views: 3901

Re: Made partner but no contract after 2 months, what should I do?

Depends on whether you trust the people in your group. The delay may not be malicious. I'm in a physician group and our last associate buy-ins took 5 months because it took the accounting firm that long to obtain the accounts receivable and calculate the value. The AR and my buy-in calculation was ...
by financial.freedom
Wed Jan 29, 2020 6:26 pm
Forum: Personal Finance (Not Investing)
Topic: Made partner but no contract after 2 months, what should I do?
Replies: 45
Views: 3901

Re: Made partner but no contract after 2 months, what should I do?

re goodwill: the pertinent piece of information (which is impossible to know) is what will be the value placed on goodwill when the OP retires, moves, or otherwise sells his interest? i.e. is it a stock which is going to go up or down. The ultimate market timing decision. I have known of two groups...
by financial.freedom
Wed Jan 29, 2020 6:19 pm
Forum: Personal Finance (Not Investing)
Topic: Made partner but no contract after 2 months, what should I do?
Replies: 45
Views: 3901

Re: Made partner but no contract after 2 months, what should I do?

Didn't read everything, but... Maybe there is no contract yet, but is there at least an understanding of what is going to be in the contract? Maybe the delay is the lawyer friend just being lazy. But maybe the delay is the other partners figuring out how best to screw you. What's the point in makin...
by financial.freedom
Wed Jan 29, 2020 6:18 pm
Forum: Personal Finance (Not Investing)
Topic: Made partner but no contract after 2 months, what should I do?
Replies: 45
Views: 3901

Re: Made partner but no contract after 2 months, what should I do?

I was in a similar situation and it did not end well . I kept hoping for a happy ending and later realized I was taken for a ride . I am on my own now and much happier. Sorry to hear that. I think their intentions are good, but it's hard not having anything in writing. Glad you're happier solo.
by financial.freedom
Wed Jan 29, 2020 3:11 pm
Forum: Personal Finance (Not Investing)
Topic: Made partner but no contract after 2 months, what should I do?
Replies: 45
Views: 3901

Re: Made partner but no contract after 2 months, what should I do?

How many partner in the firm? How many recent "new" partners besides yourself? Have the other "new" partner gotten their contracts? This all seems a little shaky. As for a partner's contract it should be boilerplate, fill in the blanks, since partners are partners. I'd speculate...
by financial.freedom
Wed Jan 29, 2020 3:09 pm
Forum: Personal Finance (Not Investing)
Topic: Made partner but no contract after 2 months, what should I do?
Replies: 45
Views: 3901

Re: Made partner but no contract after 2 months, what should I do?

As someone else said, if you enjoy the job and trust them, wait. Like you said, it took some time and effort to get here, you don't really want to start over somewhere else. If nothing had changed, I would be very skeptical and think you were getting the run around. But you are now getting paid mor...
by financial.freedom
Wed Jan 29, 2020 3:06 pm
Forum: Personal Finance (Not Investing)
Topic: Made partner but no contract after 2 months, what should I do?
Replies: 45
Views: 3901

Re: Made partner but no contract after 2 months, what should I do?

Is this a general partnership or a limited partnership? Absent an agreement and appropriate filings, it's likely a general partnership, which would mean all profits would be shared equally and all partners would have unlimited liability for the partnership's liabilities. Is there anything that show...
by financial.freedom
Wed Jan 29, 2020 2:58 pm
Forum: Personal Finance (Not Investing)
Topic: Made partner but no contract after 2 months, what should I do?
Replies: 45
Views: 3901

Re: Made partner but no contract after 2 months, what should I do?

Good questions. I asked the same, and was told that the old contracts are outdated. The group has grown since then and the new contract will involve two entities (hospital contract and outpatient imaging centers). The previous contract was just an equal split for the hospital service agreement. Int...
by financial.freedom
Wed Jan 29, 2020 2:57 pm
Forum: Personal Finance (Not Investing)
Topic: Made partner but no contract after 2 months, what should I do?
Replies: 45
Views: 3901

Re: Made partner but no contract after 2 months, what should I do?

Should I ask for something in writing that is less formal than a contract while the complete document is still being drafted? Should I just relax and keep waiting? Thank you in advance! Ask to see a copy of the other partners' contracts. That can be done quickly and cheaply. Tell them you want to h...
by financial.freedom
Wed Jan 29, 2020 1:56 pm
Forum: Personal Finance (Not Investing)
Topic: Made partner but no contract after 2 months, what should I do?
Replies: 45
Views: 3901

Re: Made partner but no contract after 2 months, what should I do?

I'm confused why this is taking so long, even with the retired guy working on it. The group already has partners... and sounds like you are getting a partnership split, and have been asked about starting the buy in. Why can't they just use one of the existing partners contracts as a template? Are y...
by financial.freedom
Wed Jan 29, 2020 1:48 pm
Forum: Personal Finance (Not Investing)
Topic: Made partner but no contract after 2 months, what should I do?
Replies: 45
Views: 3901

Re: Made partner but no contract after 2 months, what should I do?

Offer to pay for the lawyer to draw up the contract. Seems they're cheaping out over this and are letting retired Uncle Fred do it for $160 when he gets around to it rather than paying someone a reasonable hourly rate to do it right. That's a good idea. How much is a reasonable price for the lawyer...
by financial.freedom
Wed Jan 29, 2020 1:46 pm
Forum: Personal Finance (Not Investing)
Topic: Made partner but no contract after 2 months, what should I do?
Replies: 45
Views: 3901

Re: Made partner but no contract after 2 months, what should I do?

If I trust them I would wait for some period of time I found reasonable. If I don't have a good feeling, I would quit. You know the practice and people better than us. Having them write another less formal letter does nothing. I do trust them. But would also feel more comfortable having an agreemen...
by financial.freedom
Wed Jan 29, 2020 1:44 pm
Forum: Personal Finance (Not Investing)
Topic: Made partner but no contract after 2 months, what should I do?
Replies: 45
Views: 3901

Re: Made partner but no contract after 2 months, what should I do?

jacoavlu wrote: Wed Jan 29, 2020 1:40 pm "made partner"

do you have a partnership agreement?
Just a verbal agreement. And they've been splitting the partner profits the first two paychecks (which I did not receive as an associate).
by financial.freedom
Wed Jan 29, 2020 1:33 pm
Forum: Personal Finance (Not Investing)
Topic: Made partner but no contract after 2 months, what should I do?
Replies: 45
Views: 3901

Made partner but no contract after 2 months, what should I do?

I made partner at my group about two months ago and have yet to receive a contract. When I inquired with the head of the group, I was told that someone is working on it (family friend of one of the partners) before submitting it to a lawyer to minimize the cost/lawyer fees. Since then, I've inquired...
by financial.freedom
Thu Dec 12, 2019 2:14 pm
Forum: Personal Finance (Not Investing)
Topic: Tips on medical practice partnership buy-in?
Replies: 55
Views: 3042

Re: Tips on medical practice partnership buy-in?

Ha. I like it. In our area private practice is so bad you make MORE MONEY AS AN EMPLOYED PHYSICIAN than you do as a "partner" because the new physicians are so in demand that we have to offer a lot of money the first year. Medicare rates for my field have been level for 20 years while ove...
by financial.freedom
Wed Dec 11, 2019 11:30 pm
Forum: Personal Finance (Not Investing)
Topic: Tips on medical practice partnership buy-in?
Replies: 55
Views: 3042

Re: Tips on medical practice partnership buy-in?

Yes, they take a pay decrease in the short term. But the group is expanding in the long term (more imaging centers etc.). if you like the job and the practice is stable and you (and family?) like the location then it's probably the right move. I'm taking a wild guess you're closer to the coasts, or...
by financial.freedom
Wed Dec 11, 2019 11:29 pm
Forum: Personal Finance (Not Investing)
Topic: Tips on medical practice partnership buy-in?
Replies: 55
Views: 3042

Re: Tips on medical practice partnership buy-in?

Might consider answering the following for better feedback How big of a group is it? (Number of docs) 5 partners, 3 associates, several part timers (non-partnership) Any conversations about selling the practice? Yes, possibly in a few years and then retaining reading rights How many years of sweat ...
by financial.freedom
Wed Dec 11, 2019 11:26 pm
Forum: Personal Finance (Not Investing)
Topic: Tips on medical practice partnership buy-in?
Replies: 55
Views: 3042

Re: Tips on medical practice partnership buy-in?

[/quote] It appears you are dealing with a “Mom & Pop type situation. The buy in reminds me of a time of when the senior partner just made up the rules as they went on. You are correct that getting a lawyer will probably alienate you from the group. Since the contract was written a long time ago...
by financial.freedom
Wed Dec 11, 2019 11:22 pm
Forum: Personal Finance (Not Investing)
Topic: Tips on medical practice partnership buy-in?
Replies: 55
Views: 3042

Re: Tips on medical practice partnership buy-in?

How are you paying for this in pre-tax dollars? How would the IRS view this? I only ask because this came up with a colleague. He was halfway through a 600K buy in using pretax dollars then the group had a new accountant take over who said using pretax dollars would put you at risk for tax fraud if...
by financial.freedom
Wed Dec 11, 2019 11:21 pm
Forum: Personal Finance (Not Investing)
Topic: Tips on medical practice partnership buy-in?
Replies: 55
Views: 3042

Re: Tips on medical practice partnership buy-in?

climber2020 wrote: Wed Dec 11, 2019 10:40 am You may want to post your question on Sermo as well. Lots of knowledgeable doctors there on this subject.

When I considered partnership years back, several posters there pointed out things I had never even considered.
Thanks, will check it out!
by financial.freedom
Wed Dec 11, 2019 11:19 pm
Forum: Personal Finance (Not Investing)
Topic: Tips on medical practice partnership buy-in?
Replies: 55
Views: 3042

Re: Tips on medical practice partnership buy-in?

I'm also a radiologist who recently made partner in a group structured as a corporation. We also only bill the professional fee. The partner capital gains question is weird. Don't they already know this? What happened the last time they hired a new partner? Has the group structure or buy in process...
by financial.freedom
Wed Dec 11, 2019 10:30 pm
Forum: Personal Finance (Not Investing)
Topic: Tips on medical practice partnership buy-in?
Replies: 55
Views: 3042

Re: Tips on medical practice partnership buy-in?

Spending 200-300k to make 200k more per year sounds like a great deal. But that math doesn’t seem to make sense. Revenue almost certainly doesn’t change as you move from employed to shareholder. I didn't say revenue changed, did I? No, you didn’t. So where does your $200k per year of extra income c...
by financial.freedom
Wed Dec 11, 2019 10:30 pm
Forum: Personal Finance (Not Investing)
Topic: Tips on medical practice partnership buy-in?
Replies: 55
Views: 3042

Re: Tips on medical practice partnership buy-in?

[quote=financial.freedom post_id=4885410 time=<a href="tel:1576117369">1576117369</a> user_id=57032] [quote=jacoavlu post_id=4884027 time=<a href="tel:1576043355">1576043355</a> user_id=41960] Spending 200-300k to make 200k more per year sounds like a great deal. But that math d...
by financial.freedom
Wed Dec 11, 2019 10:28 pm
Forum: Personal Finance (Not Investing)
Topic: Tips on medical practice partnership buy-in?
Replies: 55
Views: 3042

Re: Tips on medical practice partnership buy-in?

Please get a lawyer, and ask a lot of "what if" questions. I find it hard to believe the practice does not have a lawyer. So if you buy in, and you all get an equal share of AR, what if one partner decides to work half-time? Or not take call? Does the practice have an accountant who can g...
by financial.freedom
Wed Dec 11, 2019 9:22 pm
Forum: Personal Finance (Not Investing)
Topic: Tips on medical practice partnership buy-in?
Replies: 55
Views: 3042

Re: Tips on medical practice partnership buy-in?

jacoavlu wrote: Wed Dec 11, 2019 12:49 am Spending 200-300k to make 200k more per year sounds like a great deal. But that math doesn’t seem to make sense. Revenue almost certainly doesn’t change as you move from employed to shareholder.
I didn't say revenue changed, did I?
by financial.freedom
Wed Dec 11, 2019 12:32 am
Forum: Personal Finance (Not Investing)
Topic: Tips on medical practice partnership buy-in?
Replies: 55
Views: 3042

Re: Tips on medical practice partnership buy-in?

So you’re going from an employed radiologist to a shareholder. How does your compensation change after becoming a shareholder? Same salary? Paid dividends? Added benefits? Now you’re responsible for overhead? Posted above. Do you know how the income is divided among shareholders? Who is in charge? ...
by financial.freedom
Wed Dec 11, 2019 12:05 am
Forum: Personal Finance (Not Investing)
Topic: Tips on medical practice partnership buy-in?
Replies: 55
Views: 3042

Re: Tips on medical practice partnership buy-in?

This setup sounds strange to me. I have only bought into a practice once, but many of my former residents ask me to review their offers so I get a sense of what's out there. What are you actually buying here? Let me give you my example. As an associate, I was paid 35% of what I collected (not produ...
by financial.freedom
Wed Dec 11, 2019 12:03 am
Forum: Personal Finance (Not Investing)
Topic: Tips on medical practice partnership buy-in?
Replies: 55
Views: 3042

Re: Tips on medical practice partnership buy-in?

Might consider answering the following for better feedback How big of a group is it? (Number of docs) 5 partners, 3 associates, several part timers (non-partnership) Any conversations about selling the practice? Yes, possibly in a few years and then retaining reading rights How many years of sweat ...
by financial.freedom
Tue Dec 10, 2019 11:55 pm
Forum: Personal Finance (Not Investing)
Topic: Tips on medical practice partnership buy-in?
Replies: 55
Views: 3042

Re: Tips on medical practice partnership buy-in?

BillWalters wrote: Tue Dec 10, 2019 6:31 pm C Corp? Yikes.
C Corp is bad?
by financial.freedom
Tue Dec 10, 2019 11:54 pm
Forum: Personal Finance (Not Investing)
Topic: Tips on medical practice partnership buy-in?
Replies: 55
Views: 3042

Re: Tips on medical practice partnership buy-in?

...You think I should lawyer up for a partner buy-in?.. Only if you care about getting anything for the money you're giving them. If you don't care just go ahead. None of the other partners hired a lawyer, seems like an unnecessary expense and may be viewed negatively. Are you in medicine? Who wrot...
by financial.freedom
Tue Dec 10, 2019 11:46 pm
Forum: Personal Finance (Not Investing)
Topic: Tips on medical practice partnership buy-in?
Replies: 55
Views: 3042

Re: Tips on medical practice partnership buy-in?

If you buy shares from the other shareholders, they'll have capital gain if the selling price of the shares is more than their basis. If you contribute money to the corporation and the corporation issues new shares to you, thus diluting the others, they won't have capital gain. Shouldn't the lawyer...
by financial.freedom
Tue Dec 10, 2019 5:24 pm
Forum: Personal Finance (Not Investing)
Topic: Tips on medical practice partnership buy-in?
Replies: 55
Views: 3042

Re: Tips on medical practice partnership buy-in?

No equipment. No real estate. Does the A/R include an equal share of bad debt? You should have your own accountant/lawyer go through everything. There's no debt that I'm aware of -- this is for professional service contracts. The imaging centers and hospitals are owned by other companies. We receiv...
by financial.freedom
Tue Dec 10, 2019 5:23 pm
Forum: Personal Finance (Not Investing)
Topic: Tips on medical practice partnership buy-in?
Replies: 55
Views: 3042

Re: Tips on medical practice partnership buy-in?

123 wrote: Tue Dec 10, 2019 4:57 pm
financial.freedom wrote: Tue Dec 10, 2019 4:54 pm ...You think I should lawyer up for a partner buy-in?..
Only if you care about getting anything for the money you're giving them. If you don't care just go ahead.
None of the other partners hired a lawyer, seems like an unnecessary expense and may be viewed negatively. Are you in medicine?
by financial.freedom
Tue Dec 10, 2019 5:21 pm
Forum: Personal Finance (Not Investing)
Topic: Tips on medical practice partnership buy-in?
Replies: 55
Views: 3042

Re: Tips on medical practice partnership buy-in?

Who owns the real estate? Or is it leased from a 3rd party? If the real estate is owned by the other partners (or even a few of them) I'd wonder why I'm not getting any of that. What do you get if the entity dissolves? They could shut down the current entity and start a new one elsewhere with some ...
by financial.freedom
Tue Dec 10, 2019 4:54 pm
Forum: Personal Finance (Not Investing)
Topic: Tips on medical practice partnership buy-in?
Replies: 55
Views: 3042

Re: Tips on medical practice partnership buy-in?

If you buy shares from the other shareholders, they'll have capital gain if the selling price of the shares is more than their basis. If you contribute money to the corporation and the corporation issues new shares to you, thus diluting the others, they won't have capital gain. Shouldn't the lawyer...
by financial.freedom
Tue Dec 10, 2019 4:51 pm
Forum: Personal Finance (Not Investing)
Topic: Tips on medical practice partnership buy-in?
Replies: 55
Views: 3042

Re: Tips on medical practice partnership buy-in?

Speaking only for my own case: Our CCorp distributed everything at year end. So Cap Gain did not apply. The building was separate, and there it did. But curious -- if you are not buying a share of equipment or building, what are you getting for that big buyin? Equal share of the A/R? IMHO "goo...
by financial.freedom
Tue Dec 10, 2019 11:31 am
Forum: Personal Finance (Not Investing)
Topic: Tips on medical practice partnership buy-in?
Replies: 55
Views: 3042

Tips on medical practice partnership buy-in?

I'm up for partner and buying into the group practice, which is structured as C Corp. The buy-in is for professional services only (no equipment, no real estate, etc). Since the buy-in is pretty high (lower to mid six figures), the partners want to make sure it is done in a way that they do not get ...
by financial.freedom
Tue Oct 29, 2019 8:24 pm
Forum: Personal Finance (Not Investing)
Topic: When is S Corp better than sole proprietor?
Replies: 87
Views: 4401

Re: When is S Corp better than sole proprietor?

What is your suggestion? Just be happy with your good fortune and move on. This. The math does not add up on tax savings for an S Corp. You'll have to file a second tax return for not a lot of reasons. The two main advantages of the S Corp are personal liability shield & SE taxes. But you're al...
by financial.freedom
Tue Oct 29, 2019 8:23 pm
Forum: Personal Finance (Not Investing)
Topic: When is S Corp better than sole proprietor?
Replies: 87
Views: 4401

Re: When is S Corp better than sole proprietor?

What is your suggestion? As I said, it is very unlikely you are going to get any change to your current compensation from the C-Corp. I am assuming that if you can't take the QBI deduction, your W-2 SS wages are >= the SS Maximum Taxable Earnings (2019 = $132,900). In which case the other individua...
by financial.freedom
Fri Oct 25, 2019 11:29 pm
Forum: Personal Finance (Not Investing)
Topic: When is S Corp better than sole proprietor?
Replies: 87
Views: 4401

Re: When is S Corp better than sole proprietor?

Lee_WSP wrote: Fri Oct 25, 2019 9:26 pm Then I’ve got no Idea what OP’s cpas advice is
What's your advice?
by financial.freedom
Fri Oct 25, 2019 11:28 pm
Forum: Personal Finance (Not Investing)
Topic: When is S Corp better than sole proprietor?
Replies: 87
Views: 4401

Re: When is S Corp better than sole proprietor?

An S-Corp has 2% shareholder-employees who receive W-2 wages and distributions, both of which are pass-thru income reported on their personal Form 1040. Neither of which can be used as the basis for employer retirement plans. The S-Corp must have any 401k plan and can only be a one-participant 401k...
by financial.freedom
Fri Oct 25, 2019 6:51 pm
Forum: Personal Finance (Not Investing)
Topic: When is S Corp better than sole proprietor?
Replies: 87
Views: 4401

Re: When is S Corp better than sole proprietor?

Got it, thanks! I'm the one who brought this up from my reading. Most CPAs don't suggest this. And even Bogleheads on this post say that I should not do S Corp. But after further discussion it appears that I SHOULD do S Corp and now I know what to ask my CPA and how to discuss with my group (will ha...
by financial.freedom
Fri Oct 25, 2019 5:37 pm
Forum: Personal Finance (Not Investing)
Topic: When is S Corp better than sole proprietor?
Replies: 87
Views: 4401

Re: When is S Corp better than sole proprietor?

Instead of wages the c Corp will issue your s Corp a payment. Makes sense. Yes, that's what she was telling me. Not sure if it matters whether the S Corp receives W2, K1, 1099 etc as payment or whether it's all treated the same. An s Corp cannot receive a W-2 it's not a real person. What do I do?