# What do you do with your December Dump?



## Philbilly2 (Aug 25, 2007)

What have you guys done in the past with your December dump dollars?

Trying to think of ways to reinvest it in the company in a way that it profits me in the 2016 year.

My machines, trucks, and most tools are updated as I need them to be as they are still profitable every year, so that is not really an option.

Outside of buying a bunch of various material that can be used in 2016 I am having trouble figuring where to allocate.

If nothing else, applying towards loan payment on shop is the last option, but that money is gone once it is applied and capital is always a high point to maintain.

What have you guys done in the past to help you in the next season with this? Any tricks to keep it in house?


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## BRL1 (Sep 13, 2014)

I always stock up on things I will have to buy next season. Like fertilizer chillated iron all the herbicides we use and salt. I can usually get good deals on it when I buy bulk so I stalk up when I can.


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## Mark Oomkes (Dec 10, 2000)

I usually flush it.


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## Dogplow Dodge (Jan 23, 2012)

Mark Oomkes;2074686 said:


> I usually flush it.


Well I would hope so. Wife gerts really mad if you don't, and she has to


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## Maclawnco (Nov 21, 2002)

Philbilly2;2074359 said:


> applying towards loan payment on shop is the last option, but that money is gone once it is applied and capital is always a high point to maintain.


even on cash basis accounting, paying down loans will do nothing for your income statement or your taxable income. loans and payments are balance sheet items.


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## Philbilly2 (Aug 25, 2007)

Yeah... I get what you are saying. My incorporation company does not own my building. My LLC does. My INC pays rent to my LLC. Rent goes up in December.


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## Broncslefty7 (Jul 14, 2014)

i had extra last february so i bought 2 new cat skids, 2 weeks later 2 trucks where totalled........... hold on to it, you never know whats going to happen. save it for spring time advertising.


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## Philbilly2 (Aug 25, 2007)

Broncslefty7;2074917 said:


> i had extra last february so i bought 2 new cat skids, 2 weeks later 2 trucks where totalled........... hold on to it, you never know whats going to happen. save it for spring time advertising.


You don't get to hold on to it. You have to spend it or you loose it to good old uncle sam. I agree with establishing a solid baseline capital, but I paided severely 2 years ago for keeping it around. Hence the reason last year I got a new accountant.


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## LapeerLandscape (Dec 29, 2012)

You need an accountant that can make 2+2=3


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## Nero (Aug 10, 2009)

LapeerLandscape;2074947 said:


> You need an accountant that can make 2+2=3


That one I like LOL...


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## dieseld (Dec 30, 2005)

I prebuy supplies/materials. Fertilizer and bulk salt for instance.


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## M&M (Sep 8, 2008)

I'm surprised nobody has mentioned putting the max into and IRA. Your 62 year old self with thank you in spades. I'm an LLC so I'm not sure how it works with INC/LLC like your business structure is.

I'm always amazed that people will buy a truck before they max out their retirement. It's bananaland!


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## dieseld (Dec 30, 2005)

M&M;2076041 said:


> I'm surprised nobody has mentioned putting the max into and IRA. Your 62 year old self with thank you in spades. I'm an LLC so I'm not sure how it works with INC/LLC like your business structure is.
> 
> I'm always amazed that people will buy a truck before they max out their retirement. It's bananaland!


Goes without a thought for me. But great advice for someone who is not doing it.


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## SnoFarmer (Oct 15, 2004)

I'm buying a factory rebuilt transmission with a 3 year warranty.

You only need retirement savings, if you live long enough to use them.


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## Philbilly2 (Aug 25, 2007)

SnoFarmer;2076264 said:


> You only need retirement savings, if you live long enough to use them.


I tell my wife that all the time! Every time she takes another 11K to dump in our IRA's I ask the question Retirement? What retirement, I will be dead long before I am able to retire. :laughing:


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## SnoFarmer (Oct 15, 2004)

Philbilly2;2076304 said:


> I tell my wife that all the time! Every time she takes another 11K to dump in our IRA's I ask the question Retirement? What retirement, I will be dead long before I am able to retire. :laughing:


Thumbs Up

I haven't put a Penney in to mine in , 11yrs now.
Whe wife does put money into hers 
Why not she'll out live me

In stead I'm buying land, have 3 property's allready and looking to add one more in the near future 
And I can enjoy them now, hunt, fish, etc have fun enjoying that roth .
Then I'll sell the assets if I should happen to live longer than expected.

It's all a roll of the dice at least if the market goes south I'll still have some thing tanjabel


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## Philbilly2 (Aug 25, 2007)

SnoFarmer;2076329 said:


> Thumbs Up
> 
> tanjabel


Is that how that is spelled???  Always wondered


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## JD Dave (Mar 20, 2007)

SnoFarmer;2076329 said:


> Thumbs Up
> 
> I haven't put a Penney in to mine in , 11yrs now.
> Whe wife does put money into hers
> ...


I think buying investment property is a no brainer. It's also a forced savings plan. The stock market is risky and you watch it go up and down. At least with dirt and bricks you havn't lost a dime until you sell and can enjoy or profit from property in the mean time.


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## SnoFarmer (Oct 15, 2004)

Thumbs Up^hope things pan out, other wise the kids will have a inheritance.



Philbilly2;2076337 said:


> Is that how that is spelled???  Always wondered


Dude, a word to the wise...
There's going to be a spelling test latter.

Your not going to want to cheat off of my paper.


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## M&M (Sep 8, 2008)

SnoFarmer;2076329 said:


> Thumbs Up
> 
> I haven't put a Penney in to mine in , 11yrs now.
> Whe wife does put money into hers
> ...


It's not a matter of where you put your money, just put your money somewhere! In a safe, in the market, in real estate, in a savings account. All are good for certain people. I treat my real estate as a supplement my retirement savings. Get a nice bonus when I sell my 3 family down the road.

Really the point of saving for retirement is so you can stop working and not have to worry about money. If you think you will die early, say 65 and you have 5 years of income saved then you can stop working at 60. The problem is if you live past 65 then you are up a creek. My wife and I have personal goals of 60 year old retirement and hope to live to 80. That means we need a retirement savings/income of at least 20 years. We are currently on track to achieve that but as we all know things can change quickly.


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## hickslawns (Dec 18, 2004)

M&M;2077370 said:


> *It's not a matter of where you put your money, just put your money somewhere! In a safe, in the market, in real estate, in a savings account. All are good for certain people.* I treat my real estate as a supplement my retirement savings. Get a nice bonus when I sell my 3 family down the road.
> 
> Really the point of saving for retirement is so you can stop working and not have to worry about money. If you think you will die early, say 65 and you have 5 years of income saved then you can stop working at 60. The problem is if you live past 65 then you are up a creek. My wife and I have personal goals of 60 year old retirement and hope to live to 80. That means we need a retirement savings/income of at least 20 years. We are currently on track to achieve that but as we all know things can change quickly.


Ding ding ding! We have a winner.

In regards to retired at 60, good for you. I ran the numbers for myself last week. If my wife and I keep working and maintain the pace we are on. . . When we hit 62yrs old, we should be able to retire. . . . for roughly 11 minutes. Thumbs Up

On a serious note, just do something. Several somethings isn't bad either. Diversification is not a bad thing.

In regards to the OP, I'd be talking to my accountant real fast. Outside of equipment, materials for next year, maxing out IRA. . . Ever think of doing something to benefit your employees? Guys generally don't complain about an end of the year bonus check.


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## Philbilly2 (Aug 25, 2007)

hickslawns;2078230 said:


> Ding ding ding! We have a winner.
> 
> In regards to retired at 60, good for you. I ran the numbers for myself last week. If my wife and I keep working and maintain the pace we are on. . . When we hit 62yrs old, we should be able to retire. . . . for roughly 11 minutes. Thumbs Up
> 
> ...


The accountant has already been spoken to.

I hear you on the employees, my guys already get company trucks to take home with fuel cards which on it's own adds up to a savings in their pocket. As for year end bonus, yeah, my guys already get a healthy bonus. *We don't make money without them.* That is the thing that I always try to remember... I can't do everything myself, so I need good guys. Good guys get rewarded and they stick around.


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## pnoone (Nov 25, 2014)

Philbilly2;2078257 said:


> The accountant has already been spoken to.
> 
> I hear you on the employees, my guys already get company trucks to take home with fuel cards which on it's own adds up to a savings in their pocket. As for year end bonus, yeah, my guys already get a healthy bonus. *We don't make money without them.* That is the thing that I always try to remember... I can't do everything myself, so I need good guys. Good guys get rewarded and they stick around.


Do you do any sort of payroll deducted contribution for their personal use of the truck or do they just get to use the truck year round for business and personal use with free gas? If so that's a real nice perk.


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## Philbilly2 (Aug 25, 2007)

pnoone;2087080 said:


> Do you do any sort of payroll deducted contribution for their personal use of the truck or do they just get to use the truck year round for business and personal use with free gas? If so that's a real nice perk.


Negative. Not a payroll item of any sorts. Just a truck with a fleet fuel card.


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## pnoone (Nov 25, 2014)

Philbilly2;2088055 said:


> Negative. Not a payroll item of any sorts. Just a truck with a fleet fuel card.


Not sure I was clear. What I'm asking is do your employees pay you at all for their personal use of the vehicle? Other companies I've worked for have had employees kick in, say, $200/month and they can use the company vehicle for unlimited personal use. The company also covered all gas (even for personal use), all maintenance and of course insurance. So do you even let your employees use your fleet card to fill up of they are, say, taking a personal weekend trip? Just curious how you are handling as I'm about to let my Ops Manager use our new truck for personal use as well and considering having him kick in a small amount each month.


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## Philbilly2 (Aug 25, 2007)

pnoone;2088074 said:


> Not sure I was clear. What I'm asking is do your employees pay you at all for their personal use of the vehicle? Other companies I've worked for have had employees kick in, say, $200/month and they can use the company vehicle for unlimited personal use. The company also covered all gas (even for personal use), all maintenance and of course insurance. So do you even let your employees use your fleet card to fill up of they are, say, taking a personal weekend trip? Just curious how you are handling as I'm about to let my Ops Manager use our new truck for personal use as well and considering having him kick in a small amount each month.


I get what your saying now.

I believe that we are taking about different types of trucks here. I cannot see someone wanting to take the family in a 1 ton cargo van or a day cab service truck on a personal weekend trip, I might be wrong, but I just have not had that thought cross my mind.

We have an understanding around here. Don't abuse my trucks and if you need to use them for something, I don't mind. I have never had anyone abuse the issue enough that I have had to venture into this topic. My guys use my trucks from time to time to do a side job or run errands around town, and that is not a big enough deal to me to even care about. I get what you are saying and I cannot input any experience on that issue.


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