Good morning and first post here,
I am really struggling with some options here so greatly appreciate anyone's wise advise. I have two employees my significant other and myself.
I am Small Business owner that does pretty well though has been wasteful in the past for sure. I am looking at about 20k after expenses and living costs that I can start stashing away.
I can do this in a few different ways, one I can make an S election, and invest on the business side, while paying out to maximize 401k roths, or a Roth IRA, to our employees, I.E. myself and my significant other. I am not sure how much sense this makes, but I feel like it could have significant tax savings.
The crux of my question is this, I am 36, with an 8 year goal for retirement, 2.4 mil is my target number: where should I be stashing the crux of my funds with that goal in mind, while doing my best to reduce my tax footprint?
I was thinking set up the S Corp, pay taxable salaries out of that to cover personal expenses and to max out personal 401k Roths (19,000* 2 employees), and Roth IRAs (6,000 * 2 employees), and then keep the rest in the S Corp in diversified bucket of low cost index funds, bonds, reits, etc. (190,000).
Most of what I have read has been related to individuals receiving pay checks, versus who are self-employed but not in the "retired" sense of self-employed, like it is more then a job in terms of hours, grind, etc. Well paid but would like to stop doing it as soon as possible and I greatly appreciate your kind advice or sharing of any resources for small business owners looking to maximize income and savings, with a goal of retirement!