Message Font: Serif | Sans-Serif
No. of Recommendations: 0
Consider, instead of inflating reported earned income and paying extra income/wage taxes, putting an amount equal to the additional tax that would have been due into a Roth IRA or other tax advantaged retirement saving account for self-employed persons, and investing it for the 40 years until he becomes SS eligible. If it eventually turns out that his SS benefit is not the max because of relatively low earnings in 2011, he can likely self-fund the difference by drawing down this account.

though i entirely agree.. 40 yrs might be optimistic (at 27, i only had 30 yrs of work ahead (many of them with near-zero earnings)

AND .. when i tried to calculate the 'earnings' (ROI?) on my FICA taxes, it came out very close to the S+P over those years ( so putting extra into a Roth, investing in index fund, likely to make OP even better off)

Print the post  


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.