Any ideas on a part time job?

[zetta]

Even better, check out the individual ROTH 401k -- you can't do an ordinary ROTH because of your wife's salary, but there's no income restriction on this one! At your family income level it's probably worth meeting with a financial planner to determine the best overall strategy. Sometimes paying tax upfront actually saves you money in the long run.

Individual Roth 401k | IndividualRoth401k.com

Another part-time job possiblity occurred to me -- could you offer private lessons for sailing, navigation, and boat repair? Or teach these things at a community college or university extension program? You might be able to write off some of your boat expenses... You're in the enviable position of being able to look for work that you love -- don't pass it up just because you might have to pay taxes on the income.

Another thought that's worth its own thread...if you're used to having a $200k income, are you sure your wife will be ready to downsize to living on $40k/year in early retirement?

[KTP]

To take someone for pay on the water you would need a captain's license. I plan to get one some day but it is a very long process (involves many hours on the water).

The big thing that is stopping me from doing more with the self employed avenue is liability. Exactly how much is liability insurance? I don't want to pay $5000 a year in premiums if I am only earning $20,000. I also don't want to have 600,000 in the bank from my wife's income and lose it all to some stupid liability lawsuit. That would really make the self employed option look stupid!

Are we only talking a couple hundred bucks a year for liability insurance for a sole proprietor?

[cschin4]

The big thing that is stopping me from doing more with the self employed avenue is liability. Exactly how much is liability insurance? I don't want to pay $5000 a year in premiums if I am only earning $20,000. I also don't want to have 600,000 in the bank from my wife's income and lose it all to some stupid liability lawsuit. That would really make the self employed option look stupid!

I think you are a bit too worried about that. But, of course you should consider the cost as well. What skills or kind of work are you credentialed for now as opposed to more schooling?
There are no great get rich quick type jobs. You are overanalyzing this a bit too much. I think you should just find some type of work and just go start working it. If you want to go back to school, then by all means do so now. If more schooling isn't really for you, then don't sweat it. As I said before, if you have plenty of money, then work at making your home and marriage as good as it can be first.

[zetta]

I would check into an umbrella insurance policy first, and find out if it includes or excludes the sorts of liability you're concerned about.

[Scanner]

Zetta,

I would think he would be more interested in taking his retirement contributions off the top now - a traditional type of retirement investment vs. escapting taxation later (with a Roth) since his family is a high income earner.

I think he needs the deductions now but a CPA could crunch some numbers for him. Of course, work is a personal decision but this may be something that a CPA could really get involved in. It may actualy also be beneficial for him to set up a corp. and take profits as dividend payouts vs. income, given his tax bracket.

[cptacek]

The price of liability insurance depends on how risky the business is. For instance, my parents wanted to open a horse riding camp, but hardly any insurance companies would cover the liability, and the ones that did were prohibitively expensive.

Just call an agent to get an idea about how much you should be covered for and how much they will charge, and then check out some internet sites to check what they say for accuracy.

[LuxLiving]

You might not need the future income, BUT, have you worked enough to pull your own Social Security come retirement time, i.e., earned enough credits?

[Joan.of.the.Arch]

Medicare works that way as well, doesn't it? Or is there a way to qualify through the work record of your spouse?

[KTP]

No, I do not have enough credits yet for SS, but my wife has about the highest level of SS credits you can get. I plan to just apply for 50% of her benefits.....who are we kidding here? do you really think SS is going to be around in it's current form in 28 years? if anything it will be means based by then and we won't qualify (hopefully).

[mommyof4]

I think it is much more cost effective to stay home and take care of the home, bills, repairs and other things that need done. If you wife is a high earner, than anything you can do to make it easier to continue her high wage is much more cost effective than any PT job. And, BTW, I don't support the notion that everyone needs to work nonstop. In fact, I think you have a great opportunity for a life you both enjoy. Some degrees just pay better and that is the way it is. Instead of stressing about it, do things that contribute to your overall happiness like learning to cook a good meal and on and on. And, don't pay attention to how "other people" tell you how you "should" live. I work PT and couldn't be happier. I COULD work FT, get on the fast track, make big bucks but I prefer my TIME and watching the birds and enjoying life.

I agree. Contribute to the whole "big picture," instead of just focusing on money.

[wincrasher]

I kinda agree with the advice that you should work regardless.

Even if you don't end up taking home alot of money, you have the freedom to find a job that you could really enjoy. That's good for your mental health.

Let's face it - there are only so many projects you can do around the house, only so many hours of Oprah you can stand, only so many rounds of golf......

[DarrenH]

Hi.

One thing that might be worth considering is taking the knowledge and experience you’ve accumulated over the years and sharing it with others.

Maybe you’re a dab hand at DIY, or have green fingers, or maybe you have a passion for rock’n’roll music or collecting World War II memorabilia.

It doesn’t matter what the subject matter is as long as you have knowledge, experience and/or a passion for it.

These days it is not unusual for people, individuals like you and I to use that knowledge and build a thriving online business around that subject.

So, you can stay at home and potentially earn as much as time will allow and the niche you choose will pay.

How much you can earn depends on the subject matter you’re going after. For example, just writing about Travel won’t get you very far as there are so many huge huge travel sites out there. But writing about something a bit more focused like “castles of Scotland” etc, would be a realistic niche you could corner or at least get a good share of.

Maybe that type of thing isn’t for you, but I just wanted to put it out there as an option you might consider.

Take care.

Cheers
Darren H

[ea1776]

EDIT: Labor is not deductible.

Another option would be to start up a home business of some sort, maybe electronics related. Maybe you could dogsit for people? There are a lot of home-based business ideas out there.

Also, how is your nest egg working for you? You could spend time making sure that you guys are doing the best possible thing you can with your money. This could end up saving/making you more money than you might be able to make or save otherwise, by planning things out better. In other words, protect and enhance what you already have (because what you have is pretty darn good!)

PS: Segmond's post should be removed. What idiotic and out-of-line statements from him.

[Joan.of.the.Arch]

I'm sure you guys are in a high tax bracket. You could reduce your tax burden by volunteering for a cause you like and that is close to you (so maybe you wouldn't have to pay much for gas). The hours you work would be tax deductible.

Oh, I don't think that sounds right. I don't think donated labor is deductible like money or goods.

[KTP]

Hmm, somebody resurrected an old thread. I stopped looking for a part time job and instead am finishing up my EE degee. Going back to school isn't as hard as I thought it might be...currently I have a perfect score in every class and could skip the finals this week and still make a B in all of them. I guess when you are older you realize the importance of study.

On the EF, I built it up to $100K recently, so I feel pretty comfortable there.