MichealKnight
Full time employment: Posting here.
- Joined
- May 2, 2019
- Messages
- 522
I am 48, Wife is 45. RE'd 3 years ago. Pre-Future cuts in benefits, they say I'd get $2.308 per month at age 62.
Wifey has never ever worked not one day. I've been toying with the idea on putting her on payroll with hopes of accruing certain benefits and was hoping someone might critique if needed or offer an opinion.
My LLC is basically just to collect rent and with depreciation, the yearly profit shows zero for now. I feel there will be profits one day - if I sell houses for capital gains, OR if I finally succeed at flipping a few houses (made 19 offers last year, no deals, grrrrrr but I digress)
SO - Wifey goes on LLC payroll $7,000 yearly. 401K or Roth it to zero out Federal Tax.
Costs to me
***********
$1,200 per year: Payroll Service.
$1,071 per year: 15.3% FICA taxes paid by her and LLC combined.
=$2,271 expenses.
BUT with "earned income" we'd qualify for Child Tax Credit for 2 kids.
$1,700x2 rREFUNDABLE =. +$3,400 Yearly addition.
So..... -2271 in expenses, PLUS $3,400 in Child Tax Refund = $1,129 profit per year.
*******
She's 45 now. According to calculators....if she gets her 10 years of SS credits then at age 62:
$49.00 per month in SS benefits = $600 a year income (rounding)
MEDICARE PART A: As of now she'd have to pay $505 a month for it but if she has 10 years of work....that goes to zero.
So at age 62: $500 yearly SS. $6000 yearly medicare savings *and* .......this would be inflation adjusted to some extent.
I look at this and it seems pure profit, and the most sure-thing investment I could possibly make. In terms of legalities: Her job description is clerical and realistic, $7000 per year could be 5 hours a week sorting mail, filing stuff, searching for house listings, whatever if it's written down and wages are market real.
From Age 62, if we made it to....82......20 years of $6,500 yearly benefits.
It seems too easy to me.
Hence, I've posted here for opinions. Thanks for reading.
Wifey has never ever worked not one day. I've been toying with the idea on putting her on payroll with hopes of accruing certain benefits and was hoping someone might critique if needed or offer an opinion.
My LLC is basically just to collect rent and with depreciation, the yearly profit shows zero for now. I feel there will be profits one day - if I sell houses for capital gains, OR if I finally succeed at flipping a few houses (made 19 offers last year, no deals, grrrrrr but I digress)
SO - Wifey goes on LLC payroll $7,000 yearly. 401K or Roth it to zero out Federal Tax.
Costs to me
***********
$1,200 per year: Payroll Service.
$1,071 per year: 15.3% FICA taxes paid by her and LLC combined.
=$2,271 expenses.
BUT with "earned income" we'd qualify for Child Tax Credit for 2 kids.
$1,700x2 rREFUNDABLE =. +$3,400 Yearly addition.
So..... -2271 in expenses, PLUS $3,400 in Child Tax Refund = $1,129 profit per year.
*******
She's 45 now. According to calculators....if she gets her 10 years of SS credits then at age 62:
$49.00 per month in SS benefits = $600 a year income (rounding)
MEDICARE PART A: As of now she'd have to pay $505 a month for it but if she has 10 years of work....that goes to zero.
So at age 62: $500 yearly SS. $6000 yearly medicare savings *and* .......this would be inflation adjusted to some extent.
I look at this and it seems pure profit, and the most sure-thing investment I could possibly make. In terms of legalities: Her job description is clerical and realistic, $7000 per year could be 5 hours a week sorting mail, filing stuff, searching for house listings, whatever if it's written down and wages are market real.
From Age 62, if we made it to....82......20 years of $6,500 yearly benefits.
It seems too easy to me.
Hence, I've posted here for opinions. Thanks for reading.