Taxes and retirement

[Dale Probst]

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Bob & David,
We have been operating this way for about ten years and it has worked
well for us. I would suggest locating an IRS enrolled agent who can fill
you in on the details. Most CPA's have as much training in tax work as
piano majors have in piano technology. 
Good luck,
Dale
Ward & Probst, Inc.
Piano & Organ Service
Dale Probst & Elizabeth Ward
Registered Piano Technicians
Wichita Falls, TX
wardprobst@cst.net 

-----Original Message-----
From: owner-pianotech@ptg.org [mailto:owner-pianotech@ptg.org] On Behalf
Of David Love
Sent: Tuesday, July 09, 2002 7:08 PM
To: pianotech@ptg.org
Subject: Re: Taxes and retirement


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

Hello all, 
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 
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 
our retirement. What are your thoughts on this subject? 

Bob Russell RPT 


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