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  #31  
Old 11-16-2012, 08:46 PM
32vld 32vld is offline
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Join Date: Feb 2011
Location: LI NY
Posts: 3,020
Quote:
Originally Posted by britsteroni View Post
At this point I think you've made up your mind, but I'll give it one more shot.

Let's work backwards to get where you want to be (quit teaching, do lawn care to provide capital to buy more rental properties).

Monthly Gross $4,167.00
Retirement (417.00)
SS & Medicare (319.00)
Union Dues (100.00)
Health Insurance (175.00)
Fed & State Income Taxes (656.00)
Net Pay from Teaching $2,500.00
Current lawn care net 750.00
Total Net Income 3,250.00


Yearly Net Needed 39,000.00
Health Insurance Costs 13,000.00
Retirement at 417/month 5,000.00
Tax Needs 24,000.00
Net Income 81,000.00
SS & Medicare Taxes 12,393.00
Fed & State 12,150.00
Net After Taxes 56,457.00

So let's assume you need to hit around $80,000 in net income to achieve the same income and receive the same benefits that you currently receive.

Assuming an 65% profit margin (not too agressive for a solo operation), you would need to gross $124,000 a year.

Also you probably aren't considering other benefits provided by your job (probably a small life insurance policy as well as disability insurance).

Just some food for thought. Not many solo lawn guys grossing $124,000 a year. Those that do are working twice as hard as what a public school teacher does.

None of this is to discourage you, just trying to point out it is much more difficult than most folks imagine.
Quote:
Originally Posted by britsteroni View Post
Not sure if the last few posts are directed at me, but I would be glad to answer. I have a bachelor's degree in finance and accounting. I have graduate coursework to get to 150 credit hours in order to sit for the CPA exam. I've worked for one of the largest CPA firms in the country.

I am a newly minted CPA. I work with landscape contractors currently providing services of tax planning, tax preparation, financial planning, outsourced CFO, and controllership services. I haven't pushed a mower or landscaped a yard outside of my own since I did this to help pay for college.

I was genuinely trying to be helpful.
You sir know what you are talking about.

This is why after 13 years and a budget cut putting me out I'd go back teaching shop tomorrow and mow on the side. Then after having a good pension and retiring with health benefits I would play LCO to stay out of my wife's way.
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  #32  
Old 11-16-2012, 10:23 PM
thomas.creation thomas.creation is offline
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Join Date: Jan 2010
Posts: 43
Thanks guys I can't say thanks enough for the responses. Only people from this industry can give such great advice. Unfortunately I don't have a single person in my family or circle of friends that can relate. You have given me much to think about. I was raised to appreciate delayed gratification as well as the value of money and time. This is a juggle act of all three.

britsteroni, thanks for the money break down. My figures came close to yours as I was feeling $75k net would be my exit mark. Of course this is from rental income as well as lawn care income.
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