facebook twitter instagram linkedin google youtube vimeo tumblr yelp rss email podcast phone blog search brokercheck brokercheck Play Pause

Financial Plan in 10 Minutes Part 3

We're going to take a minute here and go through the basic different types of income. There's other things involved that if you want to get more, but we only have 10 minutes. So, uh, generally speaking, the most common forms of income are a W 2 income. That means you are an employee of a firm. You receive a salary.

The firm withholds taxes from that salary and then you are paid a net of that number. Good thing is it makes your cash flow planning a lot easier than if you are a 1099 recipient. 1099 non-employee compensation. This means one, a company pays you for doing work for them. They don't withhold taxes.

Likewise, if you are a partner in a firm, If you're a beneficiary of a trust, you'll receive what they call K-1  income. And there's a whole lot of moving parts in a, in a K-1, in a, in a partner or a trust return. But, it's similar as the 10 99 in, in that your income is not necessarily completely predictable.

You have to pay quarterly taxes and you have to understand your net cash flows regarding that. Next up we're gonna take look a, a look at the 10, uh, your form, 10 40. Everybody uses it.

Financial Advisor Websites by Twenty Over Ten Powered by Twenty Over Ten