Strategy for a high income earner?

Discussion in 'Investment Strategy' started by MartyMcFly, 22nd Oct, 2015.

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  1. MartyMcFly

    MartyMcFly Member

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    It will diminish my mystique. Then, where's the fun?
     
    Last edited: 22nd Oct, 2015
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  2. Kangaroo

    Kangaroo Well-Known Member

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    A medical specialist of some sort ? working in 2 practices ?
     
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  3. THX

    THX Well-Known Member

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    He's obviously a gambler...

    ...with a sports almanac.
     
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  4. mrdobalina

    mrdobalina Well-Known Member

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    How sustainable is the income, considering you are working equivalent of 2 full time jobs?
     
  5. BuyersAgent

    BuyersAgent Well-Known Member Business Member

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    Plus one for these posts, small developments, such as putting 2nd and 3rd homes on larger block would seem to tick all the boxes of immediate ng, capital gain with good land component, improved depreciation once new buildings are constructed, which eats into paye income tax. They also create manufactured equity and better cash flow than new units someone else built. The more you build the more equity you make (plus long term cg on top) and the less tax you pay. Winning. Obviously structuring and diversification/assett protection all matter to but this would be the core of my strategy if I were you.
     
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  6. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    Id suggest having more than one stream of income to make up that 500 k, property sure, can be a mainstream of that, but concentration risk of income source(s) it may end in tears.

    Some form of currently not perceived risk may suddenly become apparent in 10 20 or more years - Gov interference of many a sort can well and truly bog a single lane strategy

    I know thats not hat you asked, but it worth covering

    ta
    rolf
     
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  7. Blacky

    Blacky Well-Known Member

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    Nice position to be in.

    I would first focus on two main areas.
    1) your tax bill must be impressive. Probably around $200k/pa.
    2) somehow you still have non-deductible debts.

    There are a multitude of ways to manage your tax to minimise the expense (fully legally). The tax you are currently paying can be recycled back into reducing non-deductible debt. Channel all income into your non-deductible debt to get rid of this expense, and then use that debt to generate income, and reduce your tax at the same time. It will snowball from there.

    Not sure what experience you have with property, but jumping into a large development too early could cost you more than its worth. Also sounds like you are time poor. So you will need paid assistance to get you through.
    Same applies to renovations. Who is going to manage these.

    Manage your tax wisely and let it work for you.

    Blacky
     
  8. Biz

    Biz Well-Known Member

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    Clearly are doctor by day, stripper by night = 500k p/a
     
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  9. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    China is back :)

    ta
    rolf
     
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  10. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    The Hedonic Treadmill is a BIG BIG thing for humans.

    A large chunk of financial freedom is to resist the urge to adapt to new higher income

    ta

    rolf
     
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  11. MartyMcFly

    MartyMcFly Member

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    Ha ha ha. This is the closest anyone has come.

    I'm a surgeon. It's very sustainable, in fact, will become more so as all my non-critical processes are continually being refined.
     
  12. Kangaroo

    Kangaroo Well-Known Member

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    Lots of doctors use Trust to minimize tax and for asset protection. Worth checking !
     
  13. DanW

    DanW Well-Known Member

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    Sydney based?

    I know a good accountant that specialises in Sydney doctors with multiple practices etc and how to handle that.

    Even so, PChat is needed to give you more ways to optimise. Optimise/maximise things now and in 10 years it's all easy and done.

    And you don't need that much money to generate 500k per year. Just a bit of a restructure at the end
     
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  14. Phantom

    Phantom Well-Known Member

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    Is that a reference to Back to the Future? :p
     
  15. Phantom

    Phantom Well-Known Member

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    Yep....200k from doctor and 300k stripper...
     
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  16. BuyersAgent

    BuyersAgent Well-Known Member Business Member

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    Great scott I think it is.
     
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  17. Phantom

    Phantom Well-Known Member

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    Now the question becomes who are the select few?:D
     
  18. Steven Ryan

    Steven Ryan Well-Known Member

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    You're actually not far off on the stripper income. A few old acquaintances did this work (and loved it, by the way). $2,000/night before the Sydney lockout laws was common, about $1,200/night after.

    Though both read a lot into psychology and were out-earning the other girls by 2-3x every night.
     
  19. Phantom

    Phantom Well-Known Member

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    I know. I wasn't joking. Well I was joking about the OP doing it. :p But in reality there are some very high earning individuals in that industry.
     
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  20. The Falcon

    The Falcon Well-Known Member

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    Ok, a different approach. At this level of income I don't think that OP needs to take any significant leveraged risk. No need to shoot the lights out with investments, he (she?) already has the income stream ;

    - Smash that non deductible mortgage. Its the last debt you need take on.
    - Max salary sacrifice (set up SMSF).
    - Get rid of your IPs ;)
    - Establish family trust for the purpose of holding LIC / ETF / Bond investments.
    - Add a corporate beneficiary to the above structure to limit tax rate to 30% on distributions, (note, never sell above holdings...this will be your income generator)
    - Manage your expenses carefully and enjoy life.

    To get above working you really want some specific advice, but a well worn path.
     
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