Getting it Right - Welcome

The goal of this blog is to publish my thoughts on a variety of economic and political topics in the hopes that people who find them educational or beneficial will utilize them and/or forward to others who might find them interesting and/or worthwhile to promote to others, possibly including politicians who can push some of these ideas to fruition. The topics in my blog are meant to be of value on a long term basis, not a daily diary or political issue of the day log. If the information posted is useful to you, by all means utilize it and/or forward it as you see fit. If not useful, then merely ignore it. There are no universally agreed upon truisms and too little tolerance between some of those with opposing viewpoints to successfully convince the people with hardened opinions to move away from them. I am an analytical type person who will try to be as factual as I am able.

I disdain the current popularity of name calling and condemnation of viewpoints with no factual alternatives or logical solutions given that I see so often. If you don't have a solution based on fact and logic, then opt out of the discussion because you have nothing to contribute. My background is a degree in Economics from the University of Michigan and 39 years working in middle management jobs for a major retailer. My opinions are forged on the personal experence of life, family, friends, and work as well as triumphs and mistakes that I have made and hopefully learned from. My hope is that this blog helps you.

My first topic will be about personal finance. I chose that one first because most of us work long and hard just to survive but not all of us realize our dreams of becoming financially independent from the labors of our work. Much of our political votes/thinking also focus on the economy and in particular how well we are personally doing financially.

It is relatively simple, without sacrificing the enjoyment of living for 'today' and even at moderate incomes, to retire as a millionaire or multi-millionaire, if you focus on that goal consistently from a young age. It is also simple to ensure that your child or grandchild retires rich. It merely requires a one time gift of just $2,000 invested wisely and the passage of time. Please read my first post on this blog to learn more.


Getting it right on Politics, Economics, and Personal Finance

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Tuesday, December 16, 2025

Self Employed with High Earnings and a Non-Working Spouse

 

Self Employed with High Earnings and a Non-Working Spouse

Let's say you are self employed with a non-working spouse and making at least double the maximum taxed Social Security limit of $176,000 (in 2025; normally increases each year).

If you hire your spouse as a stay at home worker and give her/him little or nothing to do, but pay her at least $176,000, then:

1. The spouse would pay the SS tax on $176,000 and when you both retire, your SS income would be 33% greater that it would have been. Though it did cost you extra SS taxes of about $12,000 per year.

2. Your combined 401K contributions and therefore tax exemptions could be as much as $23,000 to $31,000 (age 50 and over), saving you substantial tax dollars.

3. Your combined IRA contributions would be double, saving you more tax dollars.

4. Though your self -employed income would now be less, your combined total income would be the same, costing you no extra taxes nor loss of total income.

5. Even if not making double the Social Security maximum but making more than the maximum, implementing this idea on a partial basis could still be beneficial.




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