[mpower4life]

Yes I know it belongs in the other section but I also know not as many of you probably go into that as often. Hence, why I posted here. Honestly investments scare the shit out of me since I've seen many people lose everything in the blink of an eye... Not too mention I am not the most knowledgable when it comes to things like offshore accounts and what not. Wealth manager seems like a good start. Was thinking a house but how much to throw down on it in cash im not sure. Newer car (E92 M3 or maybe wait for the F8x to come out). Would it be the worst idea just to keep the rest in a CD at a decent rate ? Honestly I'm not sure about the real estate as it seems a bit risky and but a lot of factors play into that. Yeah, it's big right now (rentals) but as soon as something is known to be big it always comes back down to reality. As far as my starting a business... I think it would be risky even though I do strive to do so I just need to get a solid business plan and of what exactly to get into. Any other thoughts?

[mpower4life]

With all the time I spent at college learning impractical things I would have rather now just done things self taught on concepts I can actually apply and use with all these things being discussed to become much more inclined with how to get ahead in life using creative ways and applying to real world 2012 situations.

[kscarrol]

"Would it be the worst idea just to keep the rest in a CD at a decent rate ?"

Define decent! Have you looked a what CD's are paying these days? Jumbo ($100,000+, 60 month) CD's are paying just 1.5% or so. You are earning a negative real return once you factor in inflation....

[SchnellM3]

Just don't blow it on Nose Candy

[Fanta]

Work hard, save for rainy day.

[M3Denver]

Originally Posted by rjd598

can you elaborate on the being hired through your company by the employers
part

i think someone answered this already but,

when you create your own business and incorporate. You are hired as a corporation contracted to the business who hires you for your services. If you negotiate with your bosses they can hire you for your skills but through your corporation rather than as an individual. Corporations get taxed MUCH LESS around 15% or less for the salary that was quoted, as an individual for 200K you would get taxed around 34%.

Funny how the government will EFFF YOU for all your money but if you know a few things you can get what you deserve and compensate for what they are basically stealing from you.

[KIS]

Originally Posted by M3Denver

i think someone answered this already but,

when you create your own business and incorporate. You are hired as a corporation contracted to the business who hires you for your services. If you negotiate with your bosses they can hire you for your skills but through your corporation rather than as an individual. Corporations get taxed MUCH LESS around 15% or less for the salary that was quoted, as an individual for 200K you would get taxed around 34%.

Funny how the government will EFFF YOU for all your money but if you know a few things you can get what you deserve and compensate for what they are basically stealing from you.

Help me understand. Your former employer hires you through your newly incorporated company. Your new company pays less taxes on the money that flows through to its' bottom line, but once your corporation pays you, you are then taxed on that income at an individual tax rate. That money has now been taxed twice. First at your corporation tax rate, and then your individual tax rate.

[M3Denver]

Originally Posted by KIS

Help me understand. Your former employer hires you through your newly incorporated company. Your new company pays less taxes on the money that flows through to its' bottom line, but once your corporation pays you, you are then taxed on that income at an individual tax rate. That money has now been taxed twice. First at your corporation tax rate, and then your individual tax rate.

Depends, there are other steps you can take to not get taxed twice, depends where you set up your corporation and where your funds are.

[KIS]

Originally Posted by M3Denver

Depends, there are other steps you can take to not get taxed twice, depends where you set up your corporation and where your funds are.

My question is only taking into consideration federal taxes, not state taxes since you can incorporate in a state that does not have state income taxes. Not trying to be difficult, but I don't see the benefit if its' done in compliance with the US federal tax code.

[MRSSIIM3]

invest it and turn it into 3 mill within a year

[SirSpeedy]

You would likely benefit from seeking financial advisement from a professional.

[Edjay]

cast scarlett johansson on a sex scene witn me. then spend whats left over on a good marage councelor to save my mirage.

[E90///M3`]

Originally Posted by CrusherM3

20 person posse...Mansion in Beverly Hills with a pool shaped like my penis.

good luck on getting this stuff in BH for only 1.5M... if you find it, please point me in that direction, cause that's a steal. minus the penis shaped pool of course... i prefer infinity

[boostedM]

Best advice? Don't take financial advice from randoms on a car forum. I'm sure there are many many smart people on here with sound financial advice, but you have no idea who those are. Best to consult a professional.

Also, don't be afraid of "investment". It's a broad term that can cover a lot of things; some safe, some risky, and some Goldie Locks perfect right in the middle. Be open to the ideas of whatever financial adviser you choose.

[spyderco10]

Originally Posted by KIS

Help me understand. Your former employer hires you through your newly incorporated company. Your new company pays less taxes on the money that flows through to its' bottom line, but once your corporation pays you, you are then taxed on that income at an individual tax rate. That money has now been taxed twice. First at your corporation tax rate, and then your individual tax rate.

+1 you still have to pay personal income tax at some point

[py0413]

send them to my account? (just kidding lol)

you definitely want to see and speak to some professionals out there. Pretty sure they will have a better idea for you than random guys like us here.

[jphughan]

Originally Posted by KIS

Help me understand. Your former employer hires you through your newly incorporated company. Your new company pays less taxes on the money that flows through to its' bottom line, but once your corporation pays you, you are then taxed on that income at an individual tax rate. That money has now been taxed twice. First at your corporation tax rate, and then your individual tax rate.

You're not taxed twice. You get taxed on the money you take out of the corporation for yourself, but employee salaries and wages can generally be deducted against your corporation's tax bill, avoiding the first tax you refer to. And even some of the money that comes into your corporation that stays with it as operating capital can be deducted if it's spent in certain ways to benefit the corporation. So that money isn't cash in your own checking account, but if you own the company you've still got a valuable asset.

[jphughan]

Originally Posted by boostedM

Best advice? Don't take financial advice from randoms on a car forum. I'm sure there are many many smart people on here with sound financial advice, but you have no idea who those are. Best to consult a professional.

Also, don't be afraid of "investment". It's a broad term that can cover a lot of things; some safe, some risky, and some Goldie Locks perfect right in the middle. Be open to the ideas of whatever financial adviser you choose.

+1. OP, if you don't trust yourself to make good investment decisions, hire a portfolio manager at a major firm, work with them to set your parameters (how much growth you expect over what period of time, level of acceptable risk for potential return, etc) and let them manage it for a fee of 1% per year or so. If they do things right, with $1.5 mil, even after taxes and reinvesting a good chunk of your returns to compensate for inflation and allow your wealth to continue increasing, you should still be able to take a sizable amount out to live off of without decreasing the principal -- in fact returns from a principal of that size should be on the level of a very decent salary.

Property could work the same way. Buy some property, then hire a property management firm to deal with renting it out, handling tenants, doing repairs, etc. so you just collect the check every month with little to no hassles.

[Darth One]

Originally Posted by CrusherM3

20 person posse...Mansion in Beverly Hills with a pool shaped like my penis.

but what is OP going to do with a 3-inch pool?


just kidding...i couldn't resist

[KIS]

Originally Posted by jphughan

You're not taxed twice. You get taxed on the money you take out of the corporation for yourself, but employee salaries and wages can generally be deducted against your corporation's tax bill, avoiding the first tax you refer to. And even some of the money that comes into your corporation that stays with it as operating capital can be deducted if it's spent in certain ways to benefit the corporation. So that money isn't cash in your own checking account, but if you own the company you've still got a valuable asset.

Of course you are not taxed twice on other employee's salaries and legitimate corporate expenses such as rent and maintenance of an office. But you also do not derive a real personal benefit from these expenses. Now you can be aggressive with how you account for corporate expenses, but be prepared to defend that practice when you are audited by the IRS.

[justacat]

Originally Posted by mpower4life

OK... now let's say you had $1.5 million sitting in an account and let's say had an income between two people of around $200K coming in a year... what would you do with that money?

Enjoy it

[AddictedToBavarian]

Originally Posted by Darth One

two chicks at the same time

Office Space?