Social Security & The Home Business Owner…What Should We Do?
Odd Couple Project
Bob Turek, at ProjectManagement411, is partnering with me in a b5media Business Channel Odd Couple project. Our assignment is to consider: At current rates, Social Security payouts will exceed payments made into the system within the next ten years. What should we do about Social Security?
He mentions possible solutions as he considers two extremes advocated by political candidates Barack Obama and Mike Huckabee in his post, Counting on Social Security? Your Next Project Better Be Your Retirement Plan.
Social Security and the Home Business Owner
My object is to consider this topic from the viewpoint of the home business owner or self-employed person.
Social Security breaks into the news as political candidates present their policies. Social Security also is on the mind of recipients as a new year begins and they find cost of living increases may be obliterated by increases in Medicare premiums and deductibles. Those who have Social Security taken out of their pay checks are aware that this affects their pocketbooks, too.
Home business owners soon realize they pay more into the Social Security fund than do employees. If home business owners have employees, they’re also paying (”contributing” makes it sound voluntary) a portion of the employees’ Social Security. Then we hear that all the contributions by employees and business owners won’t be enough in future years to keep the Social Security system going, at least as it is.
What’s the home business owner or self-employed person to do?
As you, the Home Business Owner, considers your future and that of Social Security, you have some decisions to make. No, you can’t decide you won’t contribute for yourself or your employees. But you’ll have to think of the future and realize that Social Security never was meant to be a full retirement, but a stop gap measure during the end of the Depression years.
Generally the Home Business Owner is better served to set up their own retirement plan and would benefit from privatized Social Security. Candidates who advocate increased money for recipients usually present vague, “feel good” ideas where it’s coming from. Ultimately, this generally means those who are still working will be paying more and more for those drawing Social Security, as well as trying to put something into the “kitty” for themselves…a “kitty” which the government continues to dip into.
If Home Business Owners decide their own plans for the future, maintaining the self-discipline to carry these out often is difficult, unless mandated. Too many people have gotten into the mode of “the government will provide,” and political candidates lull us into thinking this is the ideal solution. However, someone will pay. Will it be you by not having a retirement plan when Social Security runs out?
Do you have any suggestions?
What are you doing for your future? Which of Bob’s candidates do you think has the solution? Increase the maximum amount of earnings covered, institute a Fair Tax, or somewhere in between? Do you think a privatized Social Security plan will work? Should we cut out any type of Social Security or government retirement plan and let everyone “fend for himself” like they did in “the good ole days”?
Let us know what YOU think.
(c)2008 Mary Emma AllenTags: b5media, b5media+Business+Channel, Barack-Obama, Bob-Turek, home+based+business, Home+business, home+business+owners, home+business+planning, Mike-Huckabee, ProjectManagement411, Social-Security