Jul
28
90% Salary Into 401k
July 28, 2007 | 2 Comments
No, I am not advocating everyone to do this. I think a disciplined approach to saving and investing is best under normal circumstances (10 to 25% of your weekly/bi-weekly/monthly salary into 401k, depending on level of income). I have a special circumstance, however: I am moving from regular employment to becoming a [...]
Jul
3
SEP-IRA vs SEP-401k: Which Retirement Plan To Choose
July 3, 2007 | Comments Off
Definitions first:
A SEP-IRA allows up to 25% of compensation (up to $45,000 for 2007) to be stashed away in a tax-deferred account (to be used at retirement age, just like any other Traditional IRA).
A SEP-401k allows up to $15,500 in salary deferrals, like any other 401k plan (employee contributions) and up to 25% of compensation [...]
Jun
28
Cash: The Independent Contractor’s Most Valuable Asset
June 28, 2007 | Comments Off
Great core skills are good. Interpersonal skills are essential. But the most important thing you need to have before you quit a day job and start an independent consulting gig is cold, hard cash. Six months to a year of it. And keep it stashed away in a savings or money market account (maybe some [...]
Jun
27
The Individual Contributor Trap
June 27, 2007 | Comments Off
Companies say that their biggest asset is their people – something that is ironic, as assets are things with a price tag on it and can be traded or exchanged as needed. Companies depend mostly on the hard work of two groups of people: the Individual Contributors and top level management (Executive VPs and CEO). [...]
May
18
Fidelity Gone, Vanguard In
May 18, 2007 | 1 Comment
I did manage to create a SEP-IRA with Fidelity (Self Employed Pension – Individual Retirement Account). The challenge was to fund it. Apparently, Fidelity has some back-office issues that prevent easy set-up of electronic fund transfers online to some “specialty” accounts, including the SEP-IRA. Even over the phone it was a struggle.To [...]
May
2
Your Name, Your Asset
May 2, 2007 | 1 Comment
Never underestimate the value of your name. It could be a great asset if you have worked hard to make it mean something to others. Some people say that “you are the brand”: if that holds true, then your name is your trademark.There are many types of business. Some entrepreneurs have high [...]
Apr
20
First Dollar
April 20, 2007 | Comments Off
Many business owners frame the first dollar they are paid in some visible location on their establishment. I don’t happen to have an establishment (other than my briefcase), nor I think I will get payments in paper money. However, I feel proud to have received my first payment in the consulting business in [...]
Apr
4
Opening a Bank Account
April 4, 2007 | 3 Comments
My consulting business seems to be something ad-hoc – something I do whenever the opportunity arises, but not necessarily a huge business so far. I do not think I need to hire top-notch services yet. So far it is something I have been able to handle with just basic reading – no lawyer [...]
Apr
1
Just Returned From My Down-Under Gig
April 1, 2007 | 1 Comment
Just as I am returning from my down-under independent consulting gig I noticed that my incorporating article was referenced in the Working Solo Australian blog. I found it a nice coincidence!For as much joy as I am having now that I returned home I will have to do several administration tasks before finalizing this [...]
Mar
21
Sick Days as An Independent Consultant
March 21, 2007 | Comments Off
Today I have a really bad pain in the neck, literally. Every time I move it (anywhere) it hurts terribly. Since my neck (and probably no-one’s else) can be fixed in position without using some kind of restraint, it is hurting frequently and it is becoming unbearable. It is not the first [...]
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