Latest / Earn Your Leisure / Advance Placement: Financial Planning Breakdown, S Corps, & Roth IRAs for Kids

Transcript

Advance Placement: Financial Planning Breakdown, S Corps, & Roth IRAs for Kids · Earn Your Leisure

• 0:00
  Speaker 1: What would be a good percentage to use, you know,
• 0:03
  Speaker 1: so that way I can just keep the same number
• 0:05
  Speaker 1: going in there all the time. Yeah, you know, I
• 0:09
  Speaker 1: don't really like percentages too much. I like actual numbers
• 0:11
  Speaker 1: because I could say, like I could say like ten percent,
• 0:14
  Speaker 1: fifteen percent, but it really just depends on your situation.
• 0:17
  Speaker 1: So I always try to look at like discretionary income,
• 0:19
  Speaker 1: so like how much money is left over at the
• 0:22
  Speaker 1: end of the month. So that's the first Like first
• 0:24
  Speaker 1: we got to see like how much money is left
• 0:25
  Speaker 1: over at the end of the month, right, So it's
• 0:27
  Speaker 1: like one of two things is happening either and this
• 0:30
  Speaker 1: is just like broad range statement. Either you have money
• 0:32
  Speaker 1: left over at the end of the month where you don't,
• 0:34
  Speaker 1: or you're running in a deficit. So if you have
• 0:36
  Speaker 1: money left over, you got to see how much money
• 0:38
  Speaker 1: you have left over. So if it's like, Okay, I
• 0:40
  Speaker 1: have a thousand dollars left over after all my bills
• 0:43
  Speaker 1: are paid, after you know, I have some fun every
• 0:45
  Speaker 1: single month, I have at least a thousand dollars left over, right,
• 0:48
  Speaker 1: So just using that that number, I personally would probably
• 0:52
  Speaker 1: do somewhere along the lines of like putting thirty percent
• 0:55
  Speaker 1: of that money into like savings until you have you know,
• 0:57
  Speaker 1: six to twelve months of savings, because that's important, and
• 1:01
  Speaker 1: then I probably would look to invest thirty percent. So
• 1:05
  Speaker 1: now that's like sixty percent of the money right there,
• 1:07
  Speaker 1: and then maybe you know, twenty percent will go to
• 1:10
  Speaker 1: you know, a kid's account, twenty to fifteen percent or
• 1:12
  Speaker 1: go to the kid's account, and then the left the
• 1:14
  Speaker 1: rest is just kind of left for like miscellaneous. So
• 1:17
  Speaker 1: that's what I would kind of go by more so
• 1:19
  Speaker 1: than like, you know, just a percent of like your
• 1:22
  Speaker 1: total income, because I could say ten percent of your income,
• 1:25
  Speaker 1: but if that might be too much, So it's really
• 1:27
  Speaker 1: more of a percentage of your discretionary income, and the
• 1:31
  Speaker 1: discretionary income I would say probably like twenty percent twenty
• 1:34
  Speaker 1: to fifteen percent of discretionary income that you can afford
• 1:38
  Speaker 1: to you know, put away.
• 1:39
  Speaker 2: Okay, thank you. I appreciate that man that helped me
• 1:41
  Speaker 2: out a lot.
• 1:42
  Speaker 1: No, no problem, brother, I have a good one. All right, Tyran,
• 1:45
  Speaker 1: we're coming to you on yourself.
• 1:46
  Speaker 3: Please.
• 1:48
  Speaker 2: Hell, I'm good in euroshage.
• 1:50
  Speaker 1: I'm good.
• 1:51
  Speaker 3: I'm good.
• 1:51
  Speaker 4: All.
• 1:52
  Speaker 2: I have a question, what are the disadvantage of an escort?
• 1:57
  Speaker 2: I kind of think, I know a little bit about
• 1:59
  Speaker 2: the advantages in compassing to an LLC, but what are
• 2:03
  Speaker 2: the disadvantage of a S card.
• 2:05
  Speaker 1: It's more structured. I think this business had actually told
• 2:09
  Speaker 1: a class about this. But you have to pay yourself
• 2:11
  Speaker 1: a salary, so especially like if you're not making you know,
• 2:14
  Speaker 1: that much money off if the business is just starting out,
• 2:16
  Speaker 1: it could be kind of pressure on you to you know,
• 2:19
  Speaker 1: have payroll. So that's something that you know, definitely could
• 2:21
  Speaker 1: take into consideration. Like I forgot the number that she said,
• 2:24
  Speaker 1: but I think it's like one hundred thousand dollars something
• 2:26
  Speaker 1: like that. You should be making like one hundred thousand
• 2:27
  Speaker 1: dollars in your business before you go to es corporateute,
• 2:30
  Speaker 1: because yeah, it's definitely it's definitely a lot more structure.
• 2:33
  Speaker 1: But the off the top of my head, I would
• 2:35
  Speaker 1: I would think that that would be something that you know,
• 2:37
  Speaker 1: you just definitely have to consider because you definitely have
• 2:40
  Speaker 1: to put yourself on payroll and you know, where as
• 2:44
  Speaker 1: like a regular LLC, you could just you know, not
• 2:47
  Speaker 1: pay yourself a month, two months whatever if not no
• 2:50
  Speaker 1: money's coming in or you just want to just you know,
• 2:51
  Speaker 1: you're real within that month so that's something that's taking
• 2:54
  Speaker 1: to consideration. Especially a lot of businesses, especially when they
• 2:57
  Speaker 1: first start, cash flow is very up and down. So
• 3:00
  Speaker 1: you know, if your cash flow is up and down,
• 3:03
  Speaker 1: you want to make sure you getting to a point
• 3:04
  Speaker 1: where you have some level of consistent cash flow.
• 3:06
  Speaker 2: First, okay, thanks very much, that answered the question.
• 3:11
  Speaker 4: Thanks all right, you'd be coming to you on yourself please.
• 3:16
  Speaker 3: All right, good morning, thanks for coming. My question is
• 3:20
  Speaker 3: I have to questions. My first question is, let's say,
• 3:23
  Speaker 3: like example, like I have a mortgage that I was
• 3:25
  Speaker 3: trying to pay early between like for like within seven
• 3:29
  Speaker 3: to ten years. And also let's say if I have
• 3:32
  Speaker 3: some money that's coming in. Let's say, like if I
• 3:34
  Speaker 3: have like probably like two to five thousand, so like
• 3:38
  Speaker 3: should I put it in the market even I do
• 3:40
  Speaker 3: have automatic.
• 3:42
  Speaker 4: This episode is brought to you by P and C Bank.
• 3:45
  Speaker 4: A lot of people think podcasts about work are boring,
• 3:48
  Speaker 4: and sure they definitely can be. But understanding of professionals
• 3:52
  Speaker 4: routine shows us how they achieve their success little by little,
• 3:55
  Speaker 4: day after day. It's like banking with P and C Bank.
• 4:00
  Speaker 4: You might seem boring the safe plan and make calculated
• 4:02
  Speaker 4: decisions with your bank but keeping your money boring is
• 4:05
  Speaker 4: what helps you live or more happily fulfilled life. P
• 4:09
  Speaker 4: and C Bank Brilliantly Boring since eighteen sixty five. Brilliantly
• 4:14
  Speaker 4: Boring since eighteen sixty five is a service mark of
• 4:16
  Speaker 4: the P and C Financial Service Group, Inc. P and
• 4:19
  Speaker 4: C Bank National Association Member FDIC.
• 4:25
  Speaker 2: Earners.
• 4:26
  Speaker 4: What's Up? You ever walk into a small business and
• 4:28
  Speaker 4: everything just works like the checkout is fast, the receipts
• 4:31
  Speaker 4: are digital, tipping is a breeze, and you're out the
• 4:35
  Speaker 4: door before the line even builds Odds are they're using Square.
• 4:39
  Speaker 4: We love supporting businesses that run on Square because it
• 4:42
  Speaker 4: just feels seamless. Whether it's a local coffee shop, a
• 4:45
  Speaker 4: vendor at a pop up market, or even one of
• 4:48
  Speaker 4: our merch partners. Square makes it easy for them to
• 4:51
  Speaker 4: take payments, manage inventory, and run their business with confidence,
• 4:55
  Speaker 4: all from one simple system. If you're a business owner
• 4:59
  Speaker 4: or even just think about launching something soon, Square is
• 5:02
  Speaker 4: hands down one of the best tools out there to
• 5:04
  Speaker 4: help you start, run and grow. It's not just about payments,
• 5:08
  Speaker 4: it's about giving you time back so you can focus
• 5:11
  Speaker 4: on what matters most Ready to see how Square can
• 5:14
  Speaker 4: transform your business. Visit Square dot com backslash go backslash
• 5:19
  Speaker 4: eyl to learn more that Square dot com backslash, go
• 5:23
  Speaker 4: backslash eyl. Don't wait, don't hesitate. Let's Square handle the
• 5:28
  Speaker 4: back end so you can keep pushing your vision forward.
• 5:32
  Speaker 5: An illegal alien from Guatemala charged with raping a child
• 5:36
  Speaker 5: in Massachusetts. An MS thirteen gang member from El Salvador
• 5:40
  Speaker 5: accused of murdering a Texas man of Venezuelan charged with
• 5:44
  Speaker 5: filming and selling child pornography in Michigan. These are just
• 5:48
  Speaker 5: some of the heinous migrant criminals caught because of President
• 5:52
  Speaker 5: Donald J. Trump's leadership. I'm Christine Nohm, the United States
• 5:56
  Speaker 5: Secretary of Homeland Security. Under President Trump, attempt did illegal
• 6:00
  Speaker 5: border crossings are at the lowest levels ever recorded, and
• 6:04
  Speaker 5: over one hundred thousand illegal aliens have been arrested. If
• 6:07
  Speaker 5: you were here illegally, your next you will be fine
• 6:11
  Speaker 5: nearly one thousand dollars a day, imprisoned and deported, you
• 6:15
  Speaker 5: will never return. But if you register using our CBP
• 6:19
  Speaker 5: home app and leave now, you could be allowed to
• 6:22
  Speaker 5: return legally. Do what's right. Leave now under President Trump
• 6:27
  Speaker 5: America's laws border and families.
• 6:29
  Speaker 4: Will be protected sponsored by the United States Department of
• 6:32
  Speaker 4: Homeland Security payment.
• 6:34
  Speaker 3: That's been that contribution that I make every month for
• 6:36
  Speaker 3: my investment on the stock market and crypto and stuff
• 6:39
  Speaker 3: like that. So should I keep the best things for
• 6:42
  Speaker 3: me to do? Should I like put that money in
• 6:44
  Speaker 3: the stock market or should I put it toward my mortgage?
• 6:47
  Speaker 3: Even like in the future, I want to like to
• 6:49
  Speaker 3: invest more and and real estate. So what's where we be? Yes,
• 6:55
  Speaker 3: but what we suggest I.
• 6:57
  Speaker 1: Mean, I think you could do both. I don't think
• 6:58
  Speaker 1: I don't think it has to be a one dy
• 7:00
  Speaker 1: the situation. You know, you want to see what's most
• 7:02
  Speaker 1: what's most important? Is paying off your house more important?
• 7:04
  Speaker 1: Or do you think you can get a better return
• 7:05
  Speaker 1: in the stock market? And especially if you got a
• 7:07
  Speaker 1: low interest rate, it might be more advantageous to put
• 7:10
  Speaker 1: the money into the market because you know your opportunity
• 7:12
  Speaker 1: costs is probably greater investing in the stock market. But
• 7:14
  Speaker 1: that doesn't necessarily mean that you can't do both. So
• 7:16
  Speaker 1: you know you could maybe if instead of if you
• 7:19
  Speaker 1: was going to put two thousand dollars a month into
• 7:21
  Speaker 1: paying into your mortgage to pay it off, you know,
• 7:23
  Speaker 1: a lot quicker, maybe you put five hundred dollars a month, right,
• 7:26
  Speaker 1: you know that's still going to add up over the
• 7:28
  Speaker 1: course of the year, and you know you could still
• 7:31
  Speaker 1: knock off years of paying off your mortgage. So I
• 7:35
  Speaker 1: would I always say, you know, see what's most important
• 7:37
  Speaker 1: to you, But you can definitely do both, especially with
• 7:41
  Speaker 1: that with that amount of money. It's not like it's
• 7:43
  Speaker 1: you know, a couple of hundred couple of thousand. You
• 7:45
  Speaker 1: can definitely, you know, allocate money to both of them.
• 7:48
  Speaker 1: But the opportunity costs will probably be better investing in
• 7:52
  Speaker 1: the stock market. But I also understand, you know, if
• 7:55
  Speaker 1: you don't want to have the mortgage forever and you
• 7:57
  Speaker 1: want to pay off the property sooner, so you know,
• 7:59
  Speaker 1: maybe maybe you just do some calculations and see how
• 8:02
  Speaker 1: that will work out if you if you did it
• 8:03
  Speaker 1: for just a little bit less money than you would
• 8:05
  Speaker 1: have done originally.
• 8:07
  Speaker 3: My other question is what what the difference between like qq.
• 8:11
  Speaker 1: Q and q q q M.
• 8:13
  Speaker 3: You broke up a little bit, what you say, what's
• 8:14
  Speaker 3: the difference between like qqq and q q q M.
• 8:18
  Speaker 1: I think QQQM Troy know QTE the t but yeah,
• 8:23
  Speaker 1: let me make sure I get a right information on that.
• 8:24
  Speaker 3: I think it's the mini QQQ, but I would I
• 8:27
  Speaker 3: would like to know if there's a difference like from
• 8:29
  Speaker 3: from the percentage of return or the amount of stacks
• 8:32
  Speaker 3: that that that they invest in. Was that one is
• 8:36
  Speaker 3: around like three something and then the qq M is
• 8:39
  Speaker 3: on like one something.
• 8:41
  Speaker 1: Yeah, let me let me look, let me look, I
• 8:43
  Speaker 1: have Troy doing research on it.
• 8:44
  Speaker 3: Get back to you on that. Okay, thank you appreciate.
• 8:47
  Speaker 3: And also for form irate rough area for kids, So
• 8:52
  Speaker 3: like do they have to be a certain age for
• 8:54
  Speaker 3: to start a rough area for kids? Yeah?
• 8:57
  Speaker 1: Yeah, they have to be well yes and no, they
• 8:59
  Speaker 1: have to if you doing it. If you're not self employed,
• 9:02
  Speaker 1: then they have to be a working age, like they
• 9:04
  Speaker 1: have to have a job. The working the age depends
• 9:06
  Speaker 1: on what state you live in. But as long as
• 9:08
  Speaker 1: they have working papers and they have a job and
• 9:10
  Speaker 1: they actually have to be working, that's another thing. So
• 9:13
  Speaker 1: as soon as they're able to work, you can do it.
• 9:15
  Speaker 1: But if you're self employed, it's a little different because
• 9:18
  Speaker 1: you can actually hire your child before they legally have
• 9:21
  Speaker 1: like working papers as long as they're actually working and
• 9:25
  Speaker 1: they can actually do a job. So obviously, like you
• 9:27
  Speaker 1: can't hire a two year old. But like if you
• 9:30
  Speaker 1: have like somebody that's like ten or eleven years old
• 9:32
  Speaker 1: and they're actually doing you just have to be able
• 9:34
  Speaker 1: to justify it in case you have to get audited.
• 9:36
  Speaker 1: But you have more flexibility and you can hire younger
• 9:40
  Speaker 1: if you're self employed. But if the child is working
• 9:42
  Speaker 1: just a regular job whenever, if they work a job,
• 9:45
  Speaker 1: then they could you could put money into the IRA.
• 9:47
  Speaker 3: It's so basically you cannot do it in course your
• 9:49
  Speaker 3: account for the IRA. Yeah, yeah, no.
• 9:52
  Speaker 1: It's it's a custodial count. It's just it's a raal ira.
• 9:55
  Speaker 1: Still you still you still like the child is still
• 9:58
  Speaker 1: a minor. The child's still a minor, so it's not like,
• 10:00
  Speaker 1: you know, you got to set it up for them
• 10:02
  Speaker 1: and you put the money in. But you know, you
• 10:04
  Speaker 1: can have a custodio account where it's just in the
• 10:07
  Speaker 1: market and there's no retirement account attached to it, or
• 10:11
  Speaker 1: it's the retirement account, but it's still it's still a
• 10:13
  Speaker 1: custodio account.