Advice From a Financial Pro: A Career Coach Wants to Invest in Property

Tracy Timm’s career-coaching business has withstood the pandemic and she just published her first book, a step-by-step guide to discovering the ideal career. Now, Ms. Timm, age 33, is looking to buy property, either as a home or investment.

A property in Dallas, where she currently lives, likely would cost more than $300,000, she says. Ms. Timm also is thinking about replacing her existing car, perhaps with a used SUV from 2017 or 2018 with a $35,000 price tag.

Ms. Timm expects her business to generate $165,000 in revenue this year, up from $145,000 in 2019. She pays herself $55,000 annually and has been investing any extra money she has into the business.

She has $60,000 in a Simplified Employee Pension Individual Retirement Arrangement (known as a SEP IRA), $5,000 in a checking account and $11,000 in a savings account. She recently began making weekly $100 deposits into both her SEP IRA and savings account.

Although Ms. Timm has no consumer debt outstanding, she borrowed about $12,000 from friends and family to start her business. The business also took a $78,000 Economic Injury Disaster Loan from the Small Business Administration this year to cover payroll, office space and other expenses. She doesn’t service these loans from her own paycheck; rather, the business makes the monthly payments.

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