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  • You Be the Financial Advisor

    This hits close to home...
    The Princess is a sales rep—-an independent contractor—-commissions only and now she is out of work. Apparently there is a proposal in the stimulus package to provide unemployment benefits to those ICs given these strange circumstances, of $600 per month.. However, her company has offered her the option of taking a $500 draw per month against future earnings. She is leery of breaking the rules because she got in trouble with the IRS over her expense account a couple years ago.. what would you advise?
    "The secret of life is honesty and fair dealing. If you can fake that, you've got it made."
    ~~Groucho Marx
    I have the hots for Khaleesi...

  • #2
    I dunno. 500 dollars doesn't do much. You're still not gonna pay the bills so you need the 500 to eat.



    Don't touch the future earnings because you will want every bit of that too, with compounding interest.
    "Far better it is to dare mighty things, even though checkered by failure, than to take rank with those poor spirits who neither enjoy much nor suffer much, because they live in the gray twilight that knows not victory nor defeat" -Teddy Roosevelt

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    • #3
      20200327_074218.jpg
      "Far better it is to dare mighty things, even though checkered by failure, than to take rank with those poor spirits who neither enjoy much nor suffer much, because they live in the gray twilight that knows not victory nor defeat" -Teddy Roosevelt

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      • #4
        The above is how it should be.

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        • #5
          Originally posted by comfortably numb View Post
          This hits close to home...
          The Princess is a sales rep—-an independent contractor—-commissions only and now she is out of work. Apparently there is a proposal in the stimulus package to provide unemployment benefits to those ICs given these strange circumstances, of $600 per month.. However, her company has offered her the option of taking a $500 draw per month against future earnings. She is leery of breaking the rules because she got in trouble with the IRS over her expense account a couple years ago.. what would you advise?
          It appears to me this is a scheme that only benefits the company at the peril of the recipient. I got hit 38 years ago on a very popular mortgage loan forgiveness program so the bank could sell my house. The benefit of course was so the buyer qualified by correspondingly lowering my sale price, but the Feds later said I owed taxes on the forgiven amount which I never got. I would not have lowered my sale price had I known I would be taxed. I'd be very leery.
          Davydd (Anglicized Welsh name for David...that's all)
          Certified BPT Taster Pursuing Pork Tenderloin Sandwiches
          Long lost Speedway Sparkplug thrashing about in the deep woods of Minnesota

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          • #6
            Originally posted by RS2 View Post
            The above is how it should be.
            Then what happens when you are evicted?
            Center Grove Trojans
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            • #7
              Originally posted by Davydd View Post

              It appears to me this is a scheme that only benefits the company at the peril of the recipient. I got hit 38 years ago on a very popular mortgage loan forgiveness program so the bank could sell my house. The benefit of course was so the buyer qualified by correspondingly lowering my sale price, but the Feds later said I owed taxes on the forgiven amount which I never got. I would not have lowered my sale price had I known I would be taxed. I'd be very leery.
              If you didn't pay your loan in full you were properly taxed on the "forgiveness". I never had to pay tax on debt forgiveness because I have always paid back my loans.

              Center Grove Trojans
              2008 5A Football State Champs
              2015 6A Football State Champs
              2011 Track State Champs

              Center Grove Jr. Trojans
              2014, 2015 & 2017 IEFA State Champs

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              • #8
                Originally posted by Truth Detector View Post

                Then what happens when you are evicted?
                If enough people do it, anti eviction rules will be put in place.

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                • #9
                  Originally posted by RS2 View Post

                  If enough people do it, anti eviction rules will be put in place.
                  And if enough people do it the property goes into foreclosure.
                  Center Grove Trojans
                  2008 5A Football State Champs
                  2015 6A Football State Champs
                  2011 Track State Champs

                  Center Grove Jr. Trojans
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                  • #10
                    Originally posted by RS2 View Post

                    If enough people do it, anti eviction rules will be put in place.
                    Still will destroy your credit rating. You'll pay for that for years down the road. Job's will be harder to get anything you buy will cost you more on credit.

                    Sounds like a great plan go for it!
                    "If you don't do it this year, you'll be another year older when you do"

                    http://davidm.smugmug.com/

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                    • #11
                      Can you imagine how many people in the next couple of months will not have enough to eat much less pay rent?

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                      • #12
                        Originally posted by Truth Detector View Post

                        And if enough people do it the property goes into foreclosure.
                        The pain goes up the chain. Why should the people on the bottom rung take all the brunt.

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                        • #13
                          Originally posted by RS2 View Post
                          Can you imagine how many people in the next couple of months will not have enough to eat much less pay rent?
                          Yes. But that isn't what we are talking about. Not affording rent is different than a rent strike.
                          Center Grove Trojans
                          2008 5A Football State Champs
                          2015 6A Football State Champs
                          2011 Track State Champs

                          Center Grove Jr. Trojans
                          2014, 2015 & 2017 IEFA State Champs

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                          • #14
                            Originally posted by RS2 View Post

                            The pain goes up the chain. Why should the people on the bottom rung take all the brunt.
                            That's a false premise. Besides, my point was that a rent strike would lead to foreclosure and extreme devaluation of the collateral. Who wants to buy a property full of tenants who think they are entitled to live there for free? Guess how well the property will be cared for when rent isn't being paid. Who are you going to call when the furnace goes out? Perhaps the local HVAC guy will give you a free furnace too.
                            Center Grove Trojans
                            2008 5A Football State Champs
                            2015 6A Football State Champs
                            2011 Track State Champs

                            Center Grove Jr. Trojans
                            2014, 2015 & 2017 IEFA State Champs

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                            • #15
                              So thousands should be kicked out on the street because of corona?

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