Today’s Smart Money Question:
(Click the featured times below to jump forward in the episode)
Here Are Just A Handful Of Things You’ll Learn:
The topic of how to transition into retirement comes up multiple times a year when working with clients. For the past few years, people have been asking to retire early or semi-retire and scale back what they’re doing.
We recently had a client who wanted to retire but still wanted to work on a scaled-back basis. Our advice was to talk with their employer.
If you do scale back, make sure you can still get health care and 401k contributions. The client was able to get their employer to agree and give them more flexible hours.
If you become an independent contractor, you need to have a plan. If you work with your old employer, you’ll now be a 1099 contractor and not a W2 employee. That means you need to figure out where to get health care and how much it’s going to cost.
One of the biggest differences between a W2 employee and a 1099 independent contractor is you want to be aware of payroll taxes. Employers will pay half of those taxes for their employees, but contractors are responsible for paying for all of it.
On today’s show, we’ll also talk about unique ways to buy rental properties. Listen to the full episode or use the timestamps below to jump to a specific section.
4:50 – Scaling back workload
6:24 – W2 vs. 1099 worker
9:39 – Contributions
11:38 – Payroll taxes
13:48 – Buying real estate
16:18 – Property management
17:22 – Where to buy
18:50 – Long-term investment
“One of the biggest differences between a W2 employee and a 1099 independent contractor is you want to be aware of payroll taxes.“
-Matt Hausman
Additional Podcast Episodes:
- Retirement Statistics – How Do You Measure Up?
- Mid-Year Financial Review Checklist
- Spending More Money in Retirement Than You Make
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The host: Matt Hausman – Contact – Resources – Call: 610-719-3003
