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What to do with all this money?

Discussion in 'Commercial Snow Removal' started by leigh, Mar 8, 2014.

  1. leigh

    leigh PlowSite.com Addict
    from CT
    Messages: 1,968

    For those that were blessed with a great snow year,what's the smartest and most business savy way to handle windfall. Many just piss it away on new equipment,toys etc. Some advice from the experienced for all the less experienced.Tip # 1- If your accountant tells you to buy a new truck,look for a new accountant. Max out your 401k,ira,college fund,etc. # 2 Fund rainy day account, do you have 6 months minimum operating funds for business and household?
  2. Longae29

    Longae29 PlowSite.com Addict
    Messages: 1,954

    I apologize. The money generated this winter will be used to do less landscape work this summer and inch closer to being snow only (except for snow customers)
  3. basher

    basher PlowSite Fanatic
    from 19707
    Messages: 8,990

    401K, IRA, real estate, private investment account, something that will produce future income.

    Quick money gets it's name from how you spend it not how you make it;)

    Money I don't expect, from wherever that windfall may come from I stick in an income producing source. If I never have it to budget against I never miss it.
  4. kimber750

    kimber750 PlowSite Veteran
    Messages: 3,179

    Plowing helps with the bigger expenses on my rental properties. This past summer had to replace 3 roofs, 1 furnace, 1 oil tank and one turn that cost close to $30k. And I will admit I do buy myself a toy. Thumbs Up
  5. Buswell Forest

    Buswell Forest PlowSite.com Addict
    from NH
    Messages: 1,668

    Windfall = pay down debt. The lower the debt, the better the credit. Credit is everything.
  6. Mr.Markus

    Mr.Markus PlowSite Fanatic
    Messages: 5,107

    For the first time ever I agree with Buswell...
    Paying off debt frees up future windfalls, interest is an has been low tempting people to spend it up. When interest rates rise (and they will) you will spend more trying to dig yourself out. Get out sooner than later.
  7. grandview

    grandview PlowSite Fanatic
    Messages: 14,609

    At least someone is listening to me.Thumbs Up

    Try and explain that on lawnsite and they eat you up and spit you out.
  8. SnowGuy73

    SnowGuy73 PlowSite Fanatic
    Messages: 24,868

    ^^^^ This ^^^^
  9. grandview

    grandview PlowSite Fanatic
    Messages: 14,609

    I should add,you can't just take that money from the business and spend it. You need to get all those deductions first and figure out how to lower your tax bill first. Then you can invest it.
  10. jrs.landscaping

    jrs.landscaping Senior Member
    from Maine
    Messages: 638

    Agree 100%

    Also agree with Grandview about lawnsite, don't even mention payments or debt........
  11. basher

    basher PlowSite Fanatic
    from 19707
    Messages: 8,990


    Always a good idea but should be balanced against contributing to a retained corporate earnings account, your own retirement and future expenses.

    Lowering floating rate/term debit vs fixed rate debit are two different animals.

    While I'd agree paying down floating rate loans and credit lines is a great idea and loosens cash flow, unless you are paying them off paying down fixed term can different.

    Timely repayment of your debit will give you good credit.

    Why would you pay off existing loans just to get back in to debit without have any retained earnings?
  12. grandview

    grandview PlowSite Fanatic
    Messages: 14,609

    Oh no ,I'm smelling a LS thread coming on:)
  13. 94gt331

    94gt331 Senior Member
    from usa
    Messages: 293

    You spoke to soon you know, lolololThumbs Up
  14. derekbroerse

    derekbroerse 2000 Club Member
    Messages: 2,377

    Pay off debts, credit cards, pay taxes etc.

    Maybe extra payments on the house...

    More equipment...

    and if all else fails, strippers are always fun!!! :D
  15. grandview

    grandview PlowSite Fanatic
    Messages: 14,609

    strippers are always fun!!!

    More equipment...

    Maybe extra payments on the house...

    Pay off debts, credit cards, pay taxes etc.

    Fixed it.
  16. Antlerart06

    Antlerart06 PlowSite Veteran
    Messages: 3,437

    No debts here
    New equipment be my thinking for next winter or pay uncle sam
  17. OldSchoolPSD

    OldSchoolPSD Senior Member
    Messages: 242

    Buy a better race car than the one I sold last year to buy equipment. Snow is my play money, steel pays the bills!
  18. yardguy28

    yardguy28 Senior Member
    Messages: 485

    currently my business accounts hold enough money for a year of operating funds.

    so with all this money I just might buy a new truck.

    I don't have a college fund and what's a 401k and an ira???
  19. grandview

    grandview PlowSite Fanatic
    Messages: 14,609

    The funds are for you to pay taxes with

    IRA is your future..
  20. OldSchoolPSD

    OldSchoolPSD Senior Member
    Messages: 242

    IRA is a great option to save because it can be tax deferred. If you ever want to retire, you want one.

    I'll probably work until the day I die, but the wifey and I have enough sacked away that I could close the doors anytime I like.