re: Savings question -- what am I missing?

How many years would the policy cover if you were disabled?

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Law firm. My biggest expense is SEO/AdWords.

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I wonder if Franklin Mint has a line of collectible truck nuts.

I can't promise they'll rise in value but they can always be a source of pride.

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$70k, single, no kids at 32 is a pretty fricking awesome quality of life in most areas of the country.

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Yeah that ranks slightly above making 250K, single and no kids using your quality of life calculator.

So I’m not an accountant, and even if I was, there are many details that one would need to make a more actuate estimate (state/local income taxes; how income is distributed through the S-Corp and how much to each, etc.).

However, I just put the information into my TurboTax TaxCaster app, and without the S-Corp allocation data, treated it like it was all business income for a sole proprietorship that is not an S-Corp. That probably/usually means, payroll taxes are a bit higher by my calculation. Furthermore, I assumed you took the standard deduction and nothing else and no state/local income taxes are included.

Anyways, I got a tax liability of roughly $53,000 with about $30,000 in federal income taxes and $23,000 in SE payroll taxes. So combined with $34,000 to your SEP and $8,000ish in expenses, that results in $95,000 in taxes, retirement, and expenses, leaving $155,000 or $12,900 per month for whatever else.

Also since I was just looking at it last night, what is your rationale for a SEP instead of a Solo 401k (unless you have more employees maybe)? The fact that you can set up a Roth version for you employee contribution, take out pretty low interest loans against it, and you can take the max of employee contributions (up to $19,500 in 2020), not just 25% of compensation (although that may not be a problem for you and employee portion is still 25%) makes it seem like a better more flexible opportunity.

Also, if you don’t mind me asking, what kind of work do you do? For some reason I thought you were a lawyer but I may be mixing you up.

Mind dropping an anon email? Have some retirement account contributions to ask

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If it makes you feel any better, there's almost no quality of life increase when you go from making $70k to $250k.

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Thank you, it does.

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What should I be doing with the $8k/month that I can save? Do my #s look right?

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I'll play along.


You should calculate what's comfortable to spend in a year for you. When you have that number and don't expect significant change, you set aside a pile of money with a goal size of between 25x and 40x annual spending.


When you reach 25x, you stop doing the shitty parts of work that you don't enjoy anymore. If it takes you until around 60, you can safely retire.
When you hit 40x annual spending, you pretty much do whatever you want at just about any age.



How you get there is up to you.