Social Security for Freelance Workers

Episode 27 - Social Security for Freelance WorkersThe Money PIG host Reid Trego is joined by Financial Advisor Ray Brown to discuss Social Security for freelance workers. They talk about the impact of being self-employed on retirement and Social Security savings. They explain how taxes work for W-2 employees and highlight that 7.65% of their income goes towards Social Security and Medicare. When someone becomes self-employed, they are responsible for both their own contribution  as well as the employer's portion. also mentions deductions for legitimate business expenses and warns against unethical practices to avoid paying taxes. It concludes with a discussion about the challenges faced by self-employed individuals when it comes to tax payments. For extra reading, we have a very popular blog on our website titled, “Freeland and Social Security.” He discusses various aspects of income taxes, refunds, and Social Security. It highlights the misconception that tax refunds are free money and emphasizes the importance of setting aside a percentage of income for self-employed individuals. The conversation also touches on the future of Social Security and how it may change over time. Additionally, it mentions several sources of income that are not subject to Social Security tax, such as dividends, interest from stocks, rental property income, and certain partnerships. It stresses the need for accurate bookkeeping in order to determine true profits and manage finances effectively. Finally, it suggests considering other retirement savings options like Roth IRAs for both self-employed individuals and those with regular jobs.There are two great retirement options for self-employed individuals: SEP IRA and self-employed 401K. The choice depends on factors like whether you have employees and how generous you want to be with benefits. A financial advisor can help navigate the complexities, and it's also advisable to consult with a CPA for tax considerations. Goodwin Investment Advisory offers personalized planning conversations tailored to individual goals. Listeners are encouraged to rate, review, and submit questions for future episodes of the MoneyPig podcast.If you are looking for a Financial Advisor that does not think of you as just a number and truly cares not only about you as an individual and your unique financial goals, but also cares about your impact on your community, then please reach out to us to learn more about how we can help guide you. The Money PIG podcast is hosted by Reid Trego. Goodwin Investment Advisory is a Registered Investment Advisory firm regulated by the Securities and Exchange Commission in accordance and compliance with securities laws and regulations. Goodwin Investment Advisory does not render or offer to render personalized investment or tax advice through the Money PIG podcast.  The information provided is for informational purposes only and does not constitute financial, tax, investment or legal advice.