So, maybe I'm missing something here but as I read it, it appears you took a paycut by buying the office building and sinking money into employees and overhead that didnt boost your productivity to where you thought it would and, in fact, reduced your productivity while increasing your overhead. At least, thats how it reads to me.
Soooooo.....why not dump the employees, list or let the building, go back to working in your living room where you have clients come in and feel all homey and personalized-attention-y, and wind up 'giving yourself a raise'? You're back to where you were a couple years ago but it stops the bleeding and gives you time to rally, regroup and get your ducks in a row for a few years from now when your expenses (tuition) have passed and you have the flexibility to be a bit more daring in your biz.
All my advisors say that this sort of thing is normal in the first year of a business. I've fixed the things that were broken (although a few new things break as we go along) and I've finished implementing the last part of the plan, so theoretically this year should be massively better than last year. If so, fantastic. I don't need to plan for success, I need to plan for failure.
We've set a "Go/No Go" date, and that's when we'll determine what to do next. Your idea is certainly the top contender of a retreat plan. We've got other ideas, too. But not for an open post.
Re: 403(b) loangwendallyJanuary 27 2014, 12:40:46 UTC
Yes, we do have a Roth and they are lovely for emergencies. This isn't an emergency, though. It's a financing decision. We are specifically determining that we will live beyond our means for a set amount of time and then be able to pay it back.
If we loot the Roth we won't be able to pay it back (unless it's within 60 days, which we did once when we needed bridge financing for something.) In practice, withdraw from the Roth and it's gone, borrow from the 403(b) and you pay it back.
tried quicken, didn't work well for too many things. It almost always got the mortgage wrong by a couple dollars, it didn't support download from my bank after Quicken came out with a more recent metadata format, it had trouble with a money market account that was used as a sweep...
I still do some basic cost analysis each year, usually a couple times a year, but it's for the major items and it's with a spreadsheet. Takes about an hour. How much for fed/state/re taxes, insurance, out of pocket health, mortgage interest, utilities, etc. We pay cash for most smaller things and it's just not worth the effort to track them. The more detailed analysis just isn't interesting to me.
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Soooooo.....why not dump the employees, list or let the building, go back to working in your living room where you have clients come in and feel all homey and personalized-attention-y, and wind up 'giving yourself a raise'? You're back to where you were a couple years ago but it stops the bleeding and gives you time to rally, regroup and get your ducks in a row for a few years from now when your expenses (tuition) have passed and you have the flexibility to be a bit more daring in your biz.
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We've set a "Go/No Go" date, and that's when we'll determine what to do next. Your idea is certainly the top contender of a retreat plan. We've got other ideas, too. But not for an open post.
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Betty
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If we loot the Roth we won't be able to pay it back (unless it's within 60 days, which we did once when we needed bridge financing for something.) In practice, withdraw from the Roth and it's gone, borrow from the 403(b) and you pay it back.
Reply
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I still do some basic cost analysis each year, usually a couple times a year, but it's for the major items and it's with a spreadsheet. Takes about an hour. How much for fed/state/re taxes, insurance, out of pocket health, mortgage interest, utilities, etc. We pay cash for most smaller things and it's just not worth the effort to track them. The more detailed analysis just isn't interesting to me.
Reply
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