"another" and "better" career alternative?.....

Arthur Sowers arthures at magpage.com
Wed Jan 10 23:20:22 EST 2001



On Thu, 11 Jan 2001, Jeffrey J. Potoff wrote:

> 
> 
> Arthur Sowers wrote:
> > 
> > When you are young, health plans are cheap. When you get older, they get
> > more espensive.
> 
> That depends on how you define "cheap."  When I was making $20K/year and
> I needed insurance to cover a gap between my old and new policies, it
> was $100/month for just me.  That was a big expense relative to my gross
> income.  

You ain't seen nothin' yet. Not only have we been geting big hikes, but we
(wife and I) got a very intrusive, very personal, very detailed
questionaire a couple months ago re our medical history. And, when I
called to ask about some strategies to get some protection, I got all
kinds of "no, you can't do that", and "no, you can't do that, either" and
more of the same. And, if you switch carriers, then you get blown away by
pre-existing conditions for, like, a year. 
 
> > However, for the numbers I gave, I imagine some guys
> > getting "average" wages and socking a large fraction of the rest into
> > 401ks and having a lot left over for health plan payments which are also
> 
> Yeah, but their 401K isn't going to beat someone else's who gets a
> significant contribution from their employer, like many faculty at
> universities.

Well, if you knock out high overheads and get decent cash flow, you can
make up for it. I'll also bet that if you prepare your own budgets in your
grant proposals, you will notice that you will be asking for not only your
salary, but also fringe benefits. It happened at all three places I was at
where grants generated what ran the places. 

> > deductable. I have a BCBS health plan for myself and my wife, through my
> > one man corporation, which has lower premiums than if I bought it as an
> > individual.
> > 
> 
> Interesting.  Could someone set up some dummy corporation just to save
> on the premiums?

Its one of the reasons I incorporated in Delaware in 1995, which is one of
the few states that allows one person to occupy each of the four main
officer slots (prez, vp, sec, treasurer) on the incorporation forms. The
tax implications eat up lots of the advantage, but I get some other
benefits, too, of being incorporated. 

You don't really set up a "dummy corporation" per se. You set up a
corporation in a manner that makes it functionally a "dummy
corporation" but actually "pass-through" entities are quite legitamate in
the world of CPAs and etc. In this lawsuit thing where I was subpoenaed
for documents, the president of one of the companies set up a second
company (with himself as president of it, too) and used the second company
to give business to his first company. The first company makes money on
its own plus the money it makes on the second company, which is financed
on all kinds of shakey leveraging (I doubt if they have a couple tens of
thousands in earnings on investments of probably 3/4 plus mil). And, at
one point long time ago the guy was musing to me about someday selling the
second company (he has 500,000 shares of stock) in the get-rich-quick
scheme we sometimes hear about (and drool over) on the six-oclock news but
happens quite rarely in reality. 

Art


> Jeff
> 






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