After bills, rent, etc paid, how much are you able to save?

[rrlegend]

I'm getting hit at about 27%-28% . Supposedly in the oilfield I can write off 59 for everyday I'm not at home , along with groceries, fuel and mileage ,clothing and hotel cost.ill find out come January what's true and false with it thou.

 

[ireminisce]

$0

 

[younghollywood]

 
$0

long as ur not in the negative u still got majority of americans beat

 

[ricardo malta]

Appreciate the feedback, Hank and J's.

My buddy works in Compliance in the Financial District. He's been a big help on finding places, what to expect, the transition.

Hank: I was planning to stay around 2K, 1 BR near Wall Street. Even less, if possible.

J's: What's the price range for a modest 1 BR in Astoria?

I also wonder the commute time on the subway from Astoria to the Financial District.

I'm also considering to commute from Jersey if I do in fact accept the NYC position.

If you're working in FiDi then makes much more sense to live in Brooklyn. Definitely a lot closer than Astoria on the train.

 

[lovehateself]

 
long as ur not in the negative u still got majority of americans beat

whats worse than being broke....being in debt.

most of us are in debt one way or another, student loans, car notes, mortgages, credit cards...etc

 

[lazyj10]

If you work for a company and aren't a 1099 employee then deducting "business" expenses is a lot more difficult and also an IRS red flag - just a FYI.

You'll need to meet certain percentages of AGI in order to take the deduction anyway. There are ways to off set your taxable income, some more aggressive than others. This is dependent on how/where you generate the most amount of your income (i.e. active versus passive).

For most Americans in high income, high income tax states - the mortgage deduction was the trigger to even allow you (beneficially speaking) to itemize your deductions versus the standard. That interest plus property tax made it a tax savings so your effective tax rate is pushed down.

Whether or not you wanted to take that money up front per pay check versus all at once in a lump sum is dependent on preference. For example, knowing you itemize you could set your withholding to include more exemptions (i.e. from 1 or 2) such as 6-7 which gives you more per paycheck and less of a tax refund.

CPA's (myself included) view a tax return with a big refund as a failure in good tax planning. Obviously certain transactions or details arise where it is what it is, but ultimately most strive to minimize a huge refund or owing a lot. The goal is $1.

 

[xilegacy]

How is it out there? All my buddies from the old neighborhood are saying it's the place to be now in Queens. They also tell me Miller's Ale House is decent as well.

Bud Ale's is pretty good. Food and atmosphere is decent. I like the bars on Broadway better though or you can hit up Studio square/beer garden. Astoria is still nice but even 1 bedroom creeping close to 2k. I live down the street from Grand cafe and Via Trenta so every weekend you see people on the block with Bently, Lambo's or Ferrari parked right outside with some bad *******. It's definitely a good alternative if you don't wanna pay Manhattan rent. It being so close to the city is probably why the rent/property value keeps increasing along with the development of all the bars, cefes and restaurants.

 

[rrlegend]

If you work for a company and aren't a 1099 employee then deducting "business" expenses is a lot more difficult and also an IRS red flag - just a FYI.

You'll need to meet certain percentages of AGI in order to take the deduction anyway. There are ways to off set your taxable income, some more aggressive than others. This is dependent on how/where you generate the most amount of your income (i.e. active versus passive).

For most Americans in high income, high income tax states - the mortgage deduction was the trigger to even allow you (beneficially speaking) to itemize your deductions versus the standard. That interest plus property tax made it a tax savings so your effective tax rate is pushed down.

Whether or not you wanted to take that money up front per pay check versus all at once in a lump sum is dependent on preference. For example, knowing you itemize you could set your withholding to include more exemptions (i.e. from 1 or 2) such as 6-7 which gives you more per paycheck and less of a tax refund.

CPA's (myself included) view a tax return with a big refund as a failure in good tax planning. Obviously certain transactions or details arise where it is what it is, but ultimately most strive to minimize a huge refund or owing a lot. The goal is $1.

Yeah I'm only going by what I heard so I need to do some more research on the topic . I agree with last sentence though I would rather owe a 1$ or revive a 1$ than try to figure out how to get x amount back from over paying or under planning

 

[Hank Scorpio]

If you work for a company and aren't a 1099 employee then deducting "business" expenses is a lot more difficult and also an IRS red flag - just a FYI.

You'll need to meet certain percentages of AGI in order to take the deduction anyway. There are ways to off set your taxable income, some more aggressive than others. This is dependent on how/where you generate the most amount of your income (i.e. active versus passive).

For most Americans in high income, high income tax states - the mortgage deduction was the trigger to even allow you (beneficially speaking) to itemize your deductions versus the standard. That interest plus property tax made it a tax savings so your effective tax rate is pushed down.

Whether or not you wanted to take that money up front per pay check versus all at once in a lump sum is dependent on preference. For example, knowing you itemize you could set your withholding to include more exemptions (i.e. from 1 or 2) such as 6-7 which gives you more per paycheck and less of a tax refund.

CPA's (myself included) view a tax return with a big refund as a failure in good tax planning. Obviously certain transactions or details arise where it is what it is, but ultimately most strive to minimize a huge refund or owing a lot. The goal is $1.

****, I guess I need a new accountant then

What should I do to get to $1? I know it sounds like nothing, but it does make sense.

On another note: What are the advantages of being a 1099 employee? I'm thinking of starting my own HF in the near future and I'm sure I'm going to have a few 1099 employees when I initially start.

 

[lazyj10]

****, I guess I need a new accountant then

What should I do to get to $1? I know it sounds like nothing, but it does make sense.

On another note: What are the advantages of being a 1099 employee? I'm thinking of starting my own HF in the near future and I'm sure I'm going to have a few 1099 employees when I initially start.

1099 contractors are getting harder and harder to do both at the state and federal level because of healthcare mandates and other issues. It was mostly prevalent in the tech sector, but has been cracked down heavily. My wife has her own business (photography). As a photographer, at some shoots she needs a 2nd photographer. The line in the sand in her business is whether or not that person is doing creative work, with their own equipment as they see fit versus my wife telling them what to do. It's getting harder to draw distinctions which hurts small businesses (versus larger companies or fund's with a lot of AUM).

You should be sending details to your tax accountant/CPA on a quarterly basis. If your income isn't predictable, you need to estimate and forecast like you would otherwise in valuation. You have to actively manage it versus being reactive.

Some of this stuff I'm not as well versed in as it's been some time and I work more on audit/consultation than tax. Think of deferring revenue/income or taking in losses expenses to offset taxable gains when possible. Think of where your income comes from and what you can do to possibly structure it differently, if at all. For example, if you receive a large bonus, bonuses are certainly taxed higher than regular pay. Can you defer some of that? Can you take it in other forms of compensation etc etc.

Those of you with side businesses, consider the pro's and con's of having outside of your residence office space to have an actual lease versus a home office deduction which is a gigantic IRS audit area.

Since you're accustomed to the financial services industry, my suggestion is to get with a tax lawyer/CPA who works with HNW individuals or family offices if you already haven't and you're in the top tax bracket.

Because of my wife's business being in the 4th year now, we're finally outsourcing the tax work. It's no longer something I will do, but oversee and help. I can't spend the time on it without sacrificing moving my own career ahead.

I've helped clients launch HF - feel free to PM when the time is right.

 

[Tony $now]

I need to get disciplined again. This will definitely my last car note for a while. My savings fund is not were I want it to be. My 401 k is almost at 30k and I'm only 28. I've already cut down on shoes etc. I wish I was a cheapskate. All bills are paid on time though

 

[ddh1122]

Old thread, but some good info in here. Sounds like most of you have good careers/jobs right now and you are doing good. Would love some tips. 

 

[Hank Scorpio]

ChampCru--

Malta was right about living in Brooklyn if you're going to be working in FiDI. Taking that 4 train from Grand Central going downtown in the mornings are rough.

 

[abubakr shaheed]

I used to split my direct deposit 70/30 for savings and checking......that was a great way to save. since i started my new gig i got lazy and stuck to one account

on a good month im still able to save about 25% of my net income. but when i get hit with a random big expense or two.....it can get down to zero. i think i need to start using cash to avoid the surprise at the end of a bad month.

 

[hugheyfreeman]

P4l, Gonna start working next week.