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--
This PTG archive page provided courtesy of Moy Piano Service, LLC