Thanks and keep Posting

I’m a couple of days shy of my own 31st birthday and own my first condo. As a young child, I was very mindful about money and later on worked for one of the big banks for over six years. . . almost on my way to becoming a financial planner. I have to say that saving money, teaching my friends the benefits of a healthy relationship with finance, and expanding on this passion of mine is multiplied in such an informative and warm community. So, thank you everyone for your insights. I might just start blogging on the subject, myself. :)

Cheers,
Saro

I used my kids capital gains exemption through a family trust when i sold my business. one day they may get pissed that i did however the family saved millions in taxes and the trust we established will ensure they have a running start financially.

While our friends were partying and competing to see who could get the biggest credit limit (he with the biggest limit is the richest, right?) we were baptized by fire!

Getting them out of the house sooner isn’t for sure either. Seems kids are sticking around the nest longer and longer on average these days.

Your children are young and have a lot of years left in school..

That is a truly fascinating story. I wish you well in your retirement.

New owners of company 1 are doing just fine. The company is still profitable, just not as much as it has been. Recessions come and go and sooner or later it will return to it’s former levels. The timing was good for selling it at it’s maximum valuation (small business valuation is largely a function of profitability), not for getting out before the ship sank.

I hope things turn around for your friend.

steve_jay:

Advice for buying your first business – I’d suggest starting your own. The return is much higher as you’re not paying for goodwill. It can be harder though. If buying, find something with strong margins, a consistent track record of growth in revenue and profit, good location/lease (if applicable), and try to buy it assets rather than shares. Find a business that you know something about, because sooner or later you’ll be doing everything at one point in time! It also helps to have a field that you enjoy, unless money really motivates you!

Englishman in canada:

At the moment, I’m on the stop working tangent. That might change. I’m not worried about bad decisions wiping me out. At the moment, I’m not that driven by pushing harder for more wealth either. At some point, it becomes enough. Would I like a Ferrari? Sure I would. But if I push and got one, will I then want another one? or an airplane? Or a second home, or etc etc etc.? It’s a consumption cycle. Pushing harder to just put more money in the bank or into investments doesn’t motivate me at the moment.

nobleea:

I agree completely!

paul s:

Business types were disclosed in an earlier comment by me. Real estate played a role, but I wouldn’t consider it key. Total gain from real estate might account for 10% or so of our net worth. Decisions surrounding real estate were more crucial imo. Buying less house, downsizing, etc freed capital up for things that offered much better returns.

ldk:

I’m looking forward to the journey. Thanks for the comments.

Rob:

I’d be pissed if my parents had “wasted” my exemption. While I might be happy to have 750 clean, odds are I wouldn’t appreciate the value it represented. My children will have their own exemption to take advantage of should they choose a life in business. I wouldn’t mind having a company valued at 3MM though ;)

Finance Guy:

The harder I work, the luckier I get!

StockStalker:

A single source? Nothing all encompassing that I’ve found. Read everything you can find. If your accountant isn’t offering up ideas and has to consult others when you propose stuff – find a different accountant! Networking with others in similar financial positions also helps – odds are someone somewhere has found themselves in a similar situation. Other business owners can be the source of wealth of information and experience. Small businesses have shares just like big businesses that are publicly traded. None of my businesses are publicly traded. The upside with small business shares is that Mr. Market isn’t giving you a quote every second of the day and liquidity sucks.

I watched an episode of Dragon’s Den the other day and I think I know why a lot of businesses fail within the first couple of years! Wow. It’s amazing how much passion and investment people will put into a bad idea!

Even in the most expensive city in the world, spending US$7K after tax, every month would not be considered ‘practical spending’.