21–30 of 32 posts
You won't get a $250k salary as a "proficient JavaScript engineer" living in the Midwest. For that much money one could hire 3-5 reasonable developers a year in the Midwest. Developers in the Bay Area earn six figures because the cost of living is so darn high. If you jump jobs make sure it's for a 20% increase INCLUDING the cost of living difference otherwise you might be losing money (unless you just want a situati…
Benjamin Franklin
Earlier quoted context omitted.
OP says they work remote. One could get two remote jobs, and choose employers based on their time zone such that their business hours don't overlap much. But the point stands: this would be a terrible way to live.
It would be hell imho. I worked 2 '9-5' jobs for a brief moment in my high school years; strawberry picking in the morning (5-14ish without break) and working in a distribution center (16-1ish with a break); that was hard, but it made a lot of money and was mind numbing so I was doing assembler in my head (ah to be young :) and writing assembly / drawing game sprites on scraps of paper in my pocket. It was ok. Many y…
Earlier quoted context omitted.
It would be hell imho. I worked 2 '9-5' jobs for a brief moment in my high school years; strawberry picking in the morning (5-14ish without break) and working in a distribution center (16-1ish with a break); that was hard, but it made a lot of money and was mind numbing so I was doing assembler in my head (ah to be young :) and writing assembly / drawing game sprites on scraps of paper in my pocket. It was ok. Many y…
make programming in my head possible again. Not sure if i'll ever get there but I will die trying Is it due to age that you can no longer do this, or something else? Good luck with it! I've never actually "programmed in my head", but I definitely think about my projects while out hiking or whatever.
I personally ignore most of MMM's frugal lifestyle stuff and focus on the saving 25x your annual spending part.
I highly recommend the book Your Money or Your Life as well. You don't need 250K/yr (unless you are using the surplus to achieve financial independence).
http://www.amazon.com/Your-Money-Life-Transforming-Relations...
At a certain point it becomes important to be attached to the revenue of a company. Whether that is by direct billing as a consultant, being a founder, or a principal, or some other position where your income is not dependent on salary. Moving to management in and of itself does not accomplish this, but in many organizations managers are easier to tie to revenue, which is why it seems that way. At the end of the day,…
I wish, I wish I could The Economist article on this, but searching online for "how millionaires become rich" and similar things is an awful way to find useful info. :) However, I remember reading in The Economist that the majority of millionaires (you can debate if that's real wealth or not) become that way through PROFESSIONAL jobs: law, management consulting, investment banking rather than entrepreneurship. Arguab…
"Millionaire" at 25 means rich. Millionaire at 50 means it is at least plausible you will retire without wrecking your children's finances to keep you off the street in old age.
https://www.irs.gov/retirement-plans/plan-participant-employ...
You will need an attorney/accountant/actuary to make sure your S-corporation is valid and does not ever create some situation where you lose that status. Then you need a good accountant that knows the ins and outs of keeping track of your S-corporation accounting especially two corporate-level attributes—earnings and profits (E&P) and the accumulated adjustments account (AAA).
Then you will need an actuary. Most actuaries have transparent pricing like the following:
http://pensionspecialist.net/defined-benefit-plans/
The goal for a single owner S-corp will be to maximize your salary to defer as much as possible. The money put into your defined benefit plan is tax deductible. The contribution limits are high and are set with your actuary.
Your goal will be fund your benefit plan up to 2.5 Million. When your retire (early at 55 is possible I think), you can take the lump sum or an annuity. At this point you pay taxes on it.
Meanwhile, you can manage and invest your fund according to what you and the actuary think is best. The investments/contributions/plan will change due to various factors.
I believe when you hit 2.5 Million you are fully funded. You can freeze your plan at that point or continue funding it. Ask an actuary.
This is what doctors, attorneys, and high earning consultants do. Very few corporations provide this any more.
If you want to look at examples, put your zip code into this page: http://search.pbgc.gov/search/InsuredPlans/InsuredPlans?quer...
The added benefit is that your pension is insured by the government via the PBGC. For small firms the insurance rates are affordable.
http://www.pbgc.gov/prac/prem/premium-rates.html
Here is a sample of deductions per plan. It seems dated, these amounts should be more by now.
You won't get a $250k salary as a "proficient JavaScript engineer" living in the Midwest. For that much money one could hire 3-5 reasonable developers a year in the Midwest. Developers in the Bay Area earn six figures because the cost of living is so darn high. If you jump jobs make sure it's for a 20% increase INCLUDING the cost of living difference otherwise you might be losing money (unless you just want a situati…
5 devs :)?