What advice would you give a 25 year old making €300k+ per year

10-15% of his investment pf in crypto doesn't seem excessive, considering he makes 5x that amount every year and is only 25yo.

I agree, pension and buying a house is probably a good shout if he sees himself living in Ireland for at least another few years.

A chat with a fee-only financial planner is probably the way to go.

Have you put any earnings into a pension? I drew down about 100-130k as salary which was more than enough and threw the rest into a pension fund tax free. I wouldn't leave it in the company account, you'll pay 12% corp tax, and then end up paying income tax whenever you do decide to take it out over the next few years, to buy a house or whatever.

Edit: ah, I see someone already mentioned pensions. Probably the best way to do it in my opinion.

Generally the advice is when you start to have a lot of money like millions, is to diversify.

I'm not sure you're at that point yet.

Hi Paddy,

How sustainable is the income at your business?

Is the income and level of profits fairly safe for (say) the next five years, or more? What might significantly disrupt it?

Does your business need a property to trade from, and if so, what type of property and location? Are there options regarding buying a property outright, buying one with assistance from debt, or leasing a property?

I'm off the view that the Irish tax regime won't see tax reductions, and will most likely see tax increases, over the next 10 years (or more) - given the increased national debt will need to start getting repaid etc. As such, I don't see any vendor to leaving the funds in your company. You are clearly too young to try to avail of tax relief available to retiring business owners who sell their businesses etc.

To paraphrase the late, great George Best, you could ' spend 99% of your money on booze, fast cars and fast women..... and then you can just squander the rest....' ;)

P.s. otherwise get yourself two good financial advisors, a tax advisor (to limit tax & so save business & personal monies), & an investment advisor (to grow personal funds optimally for you).

P.p.s. GillenMarkets are a good investment advisor imho (no relation to me whatsoever)

Get professional advice on your exit strategy. You'll find some fool to give you more money than you could ever earn from it, and they'll probably keep you on at a large salary for a few years anyway.

Hi,

Thanks for the reply.

Given the business doesn't need a property, why buy one within the business (and particularly, when prices are high, and property investment yields are low / possibly risky) ?

If I were you, I'd be looking to extract as much from the business as I could - without leaving the business under cashflow pressure, obviously.

Tax considerations come to mind, as do other personal priorities (hence I've mentioned pensions, and perhaps a home).

If I were you, my first stop would be to get a decent accountant / tax consultant, to help you look at how you can minimise your tax position.

Then, it's down to you putting togeather a few priorities, in terms of what you want from the future etc. Do you want a home, to provide for early retirement, to travel, to help a family member financially etc?

A good independent financial planner might be the way to go (but get an independent, who charges an hourly fee, and only makes recommendations, but doesn't sell investment products).

Well done again, on your success to date - it's a super start to life!

At the end of the day there was no clear way for me to avoid that 45-50% tax really. Even if you invest it, first of all that might not go well, and second of all, isn't there a 33% tax on profits made over a nominal amount, and when you go to draw down at any stage in the future, you will be hit with the tax. So the incentive wasn't there for me to invest.

Definitely make sure you're maxing out your expenses. Computers/Printers/Screens/Desks/Chairs. There was also a cool tax incentive to buy a new electric car on the company funds VAT/Income tax free. If you were interested in buying a new electric car, I would certainly look into that.

I love the advice to buy a car rather than crypto. The car is guaranteed to lose all its value over time. Crypto assuming you're not buying memecoins or using leverage has been the best performing asset class in the last 10 years. Property is at an ATH now as well I bought some in 2006 when I was young terrible timing. With the chronic supply shortage I think it's wise avoid for a while till the markets more realistic instead of paying 3x what something is worth.

Getting a good accountant is the main thing I'd say. Is the company limited? You seem to be doing plenty enough right to me you've got sound instincts if you're making that much.