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Out of Pocket Expenses Employee vs Indy

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Nov 21, 2006 6:10 am

I am an expert on out of pocket expenses…Broker24, you are a little
off base when you were explaining the costs between Jones and
Indy.  I was one of the people who was grossing about $525,000
when I left.  Every year I bumped up against the AMT because I
live in California where my mortgage interest and my "out of pocket"
expenses were a lot.  At Jones, I always felt poor even though I
was bringing home $20,000 net every month.  Here’s why?



$20,000  Gross

$5,000 Fica/State/Medicare

$1200  401k

$2000  Flex Spending Account–Expenses (Use it or lose it)

$1000  Insurance premiums (for a family of four)(not available
for           
        above the line credit/like a
business owner

$200   Dependant Care/Flex Spend

$200    Disability Insurance

$500   Flex Spending–Health Car

$200  1% of National Advertising Campaign (no Write Off)

________



$10,000 Net/Net



$4,000 Mortgage (21 year old home/ 4 bdr 3bath, 2400 sq feet) Nothing fancy

$750   Second Mortgage



$1000 529 for children

$3,000 left over on a great month.



I’m sorry, when I have a $50,000 gross month at LPL I take home $45,000 and then I can use Section 79 expenses to my advantage.

My salary I pay my assistant is tax deductible and she likes that I
can  give her a profit sharing contribution that is $12,000 this
year alone.



Bottom Line:  Indy beats Jones at any level after 4 years with
Jones.  I think that’s about the time you kinda know what you are
doing.