Taxes and retirement

[David Love]

This is a multi-part message in MIME format.

---------------------- multipart/alternative attachment
I would be interested in finding out more about this S corporation.  I'm =
much more confident making my own investments than relying on SS =
benefits.  Self employment tax is a basically a penalty for working for =
yourself and an attempt encourage people into working situations where =
the government gets their money up front.  Any suggestions where more =
info is readily available?

David Love
  ----- Original Message -----=20
  From: BobRussellpiano@AOL.COM=20
  To: pianotech@ptg.org=20
  Sent: July 09, 2002 4:37 PM
  Subject: Taxes and retirement


  Hello all,=20
  At the convention I saw a class on how to save money on your taxes. I =
learned some very sound tips on how to keep more of my money. However, =
some features of this class were similar to other classes I've seen by =
accountants. Most of these classes all brag about saving money on taxes, =
and almost all do it the same way. By changing your business to a "S " =
corporation and paying yourself a small salary and taking the rest of =
your income in royalties or corporate dividends. This enables you to pay =
less in social security taxes. This savings usually represents 2/3 of =
the savings they brag about. When I ask questions whether it's prudent =
to reduce your SS taxes thus reducing your retirement and/or disability =
payments they usually say how you can do better taking the money and =
investing in an IRA. I don't disagree with the premise of this =
statement, but how many of us will take this money and save it. I'm =
concerned about self employed techs following this advice and having =
proble! ms=20
  down the road. I'm aware that you only need 40 quarters of high income =
to establish good benefits with SS, but at what point does the average =
tech start this process, later in life when their kids are in college? I =
realize that SS isn't nearly enough to cover retirement, but the way =
most people save nowadays, is it prudent to underfund=20
  our retirement. What are your thoughts on this subject?=20

  Bob Russell RPT=20

---------------------- multipart/alternative attachment
An HTML attachment was scrubbed...
URL: https://www.moypiano.com/ptg/pianotech.php/attachments/8c/45/84/23/attachment.htm

---------------------- multipart/alternative attachment--