Monday, November 29, 2004

Some remarks sparked by a comment ...

850 visitors have come by and some of you are beginning to email and/or leave comments. Thank you so much! It feels good to know that someone is reading! I'm not pretending to be any kind of expert (and believe me - I'm NOT!) I'm not sure why I have a need to write about what I'm doing - I want to talk about it at work so badly I feel I'll explode! I think part of it is bouncing ideas off other people and learning from each other. There's also something exciting about being around people who have a goal to do something more than simply show up for work each day. If I was passionate about my job and felt like it was accomplishing some real work, I don't think I'd feel so frustrated. But (and I know this sounds arrogant but somehow I think you probably feel the same way with respect to yourself) I have better things to do with my time.

Leisel left a comment asking how taxes will affect my earnings. She raised some thoughtful issues such as the fact that I'll be paying higher taxes since I'm not holding for the long term. And she's absolutely correct! I'm not up on the current laws; I know it used to be that you paid a lower rate on gains if you held the stock for 18 months.

I designated the money in this account to hopefully become the funds that will generate enough money so that I can leave my job. Since this is designated for replacing my income, it can handle paying any taxes that are due. As my accountant said, "You only have to pay taxes when you are making money and making money is a good thing!"

Seriously that does mean that I won't be able to quit my day job until this money generates enough income to cover the cash I'll need including the taxes!

I'm also reading up on some ways to channel cash flow in a different way so that taxes will be paid last - not first. The book "Rich Dad, Poor Dad" has some interesting ideas along that line but I'm not sure I agree with them! I definitely won't try anything without checking with my accountant and possibly an attorney as well. Some of his ideas sound too good to be true and some of them sound a little risky to me!

We have other savings and investments including two 401K plans and we live on a budget. I just don't want you to think I've fooled myself in that this is my primary investment plan!!

0 Comments:

Post a Comment

Links to this post:

Create a Link

<< Home