As-is Future Income Streams
Earlier I took a look at my current income streams. Now I would like to take a look at what my income streams will likely look like in 2008 if I don't make any major changes.
The biggest difference would be the benefits of dual salaries with my fiancee's income. While we don't have a date set, I suspect we will be married before the end of 2008. This will bring a myriad of changes, the best financial one being the extra stream of income :-).
Other than the extra salary, not much changes. I anticipate that the income from our jobs, dividends and the side business will increase, but not enough to significantly change their portion of the income.
This chart looks a lot better than my current streams of income, but its misleading. My fiancee would like to stop working in a few years after we start a family. Once this happens, the income streams would looks much like they do today.
I see a few things I need to focus on to change this picture. Dividends, rental income, and the side business. Maintaining the status quo isn't going to cut it. I need to expand all of these areas to change the income streams for the future.
Comments (5)
What is the side business?
Posted by Joe | December 13, 2006 10:18 AM
One interesting tip I learned, if you get married at anytime in the year (even Dec 31st), you're considered married for the entire year and thus you will file jointly. Depending on the hard numbers of you and your future wife's income, you may want to delay that wedding a couple weeks (if it really is close to the end of December) for financial reasons.
I think the side business may be this site?
Posted by jim | December 13, 2006 3:32 PM
Perhaps I'm missing something obvious but ...
You're adding your future wife's income to yours.
Correct, the total income increases ... but, you'll be spending double (saving a bit on housing I suppose but spending it elsewhere), so I have the feeling this picture is not quite realistic. Actually I think that you would need to take half of the pie you draw today, when you get married, as your net worth.
Considering your savings and income are bigger than your girlfriends, your net worth will actually dive down instead of jumping up, no ?
Posted by henk | December 14, 2006 5:25 PM
If anything 2mil should try to get married as soon as possible, to maximize the tax benefits. Why should he push it back further? He will benefit from the higher deduction and tax brackets.
Posted by CPA1298 | December 14, 2006 8:09 PM
Looks like you're on to something - here's a Motley Fool article about multiple streams of income providing the opportunity to retire early.
http://www.fool.com/personal-finance/retirement/2006/12/22/retire-before-your-boss.aspx?source=eptyholnk303100&logvisit=y&npu=y
Posted by Anonymous | December 22, 2006 11:53 AM