Mark and Mat, you guys are legends. Thanks for looking at our situation.
My wife and I are physicians in southern California. We opened an S corp primarily for my wife’s work. We have a 2-year-old baby.
Her:
Independent contract physician with multiple hospitals and also work from home.
Drives her personal car exclusively for work (have a family car for personal stuff)
Estimated yearly salary: 350k.
Me:
W2 worker, 240k/year, full benefits (medical/dental/401k/malpractice insurance)
Have ability to do independent contract work on weekends if I so choose.
Other info:
combined med school loans ~ 400k
Renting home: 4k/month
Savings: 80K cash; Roth IRA: 200k; Brokerage: 90K.
Our life goals:
- Maximize free time while in our income earning years
- Own rentals or other cash flow business
- Retire as early as financially possible
- Employ my daughter as early as possible
Questions:
- If you were us, how would you set yourself up (guessing it’s The Trifecta?)
- Is there any benefit for me being a W2d employee of the S-corp? If I do my own contract work under the name of our S-corp, do I NEED to be a W2’d employee? If I do no contract work, is there any benefit to still being an employee?
Many thanks to both of you.