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What do you do with your December Dump?

Discussion in 'Business Fundamentals' started by Philbilly2, Dec 14, 2015.

  1. Philbilly2

    Philbilly2 2000 Club Member
    Messages: 2,634

    What have you guys done in the past with your December dump dollars?

    Trying to think of ways to reinvest it in the company in a way that it profits me in the 2016 year.

    My machines, trucks, and most tools are updated as I need them to be as they are still profitable every year, so that is not really an option.

    Outside of buying a bunch of various material that can be used in 2016 I am having trouble figuring where to allocate.

    If nothing else, applying towards loan payment on shop is the last option, but that money is gone once it is applied and capital is always a high point to maintain.

    What have you guys done in the past to help you in the next season with this? Any tricks to keep it in house?
     
  2. BRL1

    BRL1 Senior Member
    from Wyoming
    Messages: 657

    I always stock up on things I will have to buy next season. Like fertilizer chillated iron all the herbicides we use and salt. I can usually get good deals on it when I buy bulk so I stalk up when I can.
     
  3. Mark Oomkes

    Mark Oomkes PlowSite Fanatic
    Messages: 10,904

    I usually flush it.
     
  4. Dogplow Dodge

    Dogplow Dodge PlowSite Veteran
    from NJ
    Messages: 3,013

    Well I would hope so. Wife gerts really mad if you don't, and she has to
     
  5. Maclawnco

    Maclawnco Senior Member
    from OH
    Messages: 628

    even on cash basis accounting, paying down loans will do nothing for your income statement or your taxable income. loans and payments are balance sheet items.
     
  6. Philbilly2

    Philbilly2 2000 Club Member
    Messages: 2,634

    Yeah... I get what you are saying. My incorporation company does not own my building. My LLC does. My INC pays rent to my LLC. Rent goes up in December.
     
  7. Broncslefty7

    Broncslefty7 Senior Member
    Messages: 656

    i had extra last february so i bought 2 new cat skids, 2 weeks later 2 trucks where totalled........... hold on to it, you never know whats going to happen. save it for spring time advertising.
     
  8. Philbilly2

    Philbilly2 2000 Club Member
    Messages: 2,634

    You don't get to hold on to it. You have to spend it or you loose it to good old uncle sam. I agree with establishing a solid baseline capital, but I paided severely 2 years ago for keeping it around. Hence the reason last year I got a new accountant.
     
  9. LapeerLandscape

    LapeerLandscape PlowSite.com Addict
    Messages: 1,613

    You need an accountant that can make 2+2=3
     
  10. That one I like LOL...
     
  11. dieseld

    dieseld Senior Member
    from 90210
    Messages: 628

    I prebuy supplies/materials. Fertilizer and bulk salt for instance.
     
  12. M&M

    M&M Senior Member
    Messages: 312

    I'm surprised nobody has mentioned putting the max into and IRA. Your 62 year old self with thank you in spades. I'm an LLC so I'm not sure how it works with INC/LLC like your business structure is.

    I'm always amazed that people will buy a truck before they max out their retirement. It's bananaland!:dizzy:
     
  13. dieseld

    dieseld Senior Member
    from 90210
    Messages: 628

    Goes without a thought for me. But great advice for someone who is not doing it.
     
  14. SnoFarmer

    SnoFarmer PlowSite Fanatic
    from N,E. MN
    Messages: 8,592

    I'm buying a factory rebuilt transmission with a 3 year warranty.

    You only need retirement savings, if you live long enough to use them.;)
     
  15. Philbilly2

    Philbilly2 2000 Club Member
    Messages: 2,634

    I tell my wife that all the time! Every time she takes another 11K to dump in our IRA's I ask the question Retirement? What retirement, I will be dead long before I am able to retire. :laughing:
     
  16. SnoFarmer

    SnoFarmer PlowSite Fanatic
    from N,E. MN
    Messages: 8,592

    Thumbs Up

    I haven't put a Penney in to mine in , 11yrs now.
    Whe wife does put money into hers
    Why not she'll out live me:D

    In stead I'm buying land, have 3 property's allready and looking to add one more in the near future
    And I can enjoy them now, hunt, fish, etc have fun enjoying that roth .
    Then I'll sell the assets if I should happen to live longer than expected.

    It's all a roll of the dice at least if the market goes south I'll still have some thing tanjabel
     
  17. Philbilly2

    Philbilly2 2000 Club Member
    Messages: 2,634

    Is that how that is spelled??? :drinkup: Always wondered
     
  18. JD Dave

    JD Dave PlowSite Fanatic
    Messages: 11,046

    I think buying investment property is a no brainer. It's also a forced savings plan. The stock market is risky and you watch it go up and down. At least with dirt and bricks you havn't lost a dime until you sell and can enjoy or profit from property in the mean time.
     
  19. SnoFarmer

    SnoFarmer PlowSite Fanatic
    from N,E. MN
    Messages: 8,592

    Thumbs Up^hope things pan out, other wise the kids will have a inheritance.

    Dude, a word to the wise...
    There's going to be a spelling test latter.


    Your not going to want to cheat off of my paper.;)
     
  20. M&M

    M&M Senior Member
    Messages: 312


    It's not a matter of where you put your money, just put your money somewhere! In a safe, in the market, in real estate, in a savings account. All are good for certain people. I treat my real estate as a supplement my retirement savings. Get a nice bonus when I sell my 3 family down the road.

    Really the point of saving for retirement is so you can stop working and not have to worry about money. If you think you will die early, say 65 and you have 5 years of income saved then you can stop working at 60. The problem is if you live past 65 then you are up a creek. My wife and I have personal goals of 60 year old retirement and hope to live to 80. That means we need a retirement savings/income of at least 20 years. We are currently on track to achieve that but as we all know things can change quickly.