Many self-employed individuals in Ocala, Florida, and surrounding areas believe that paying taxes each year automatically secures their Social Security income. Unfortunately, this isn’t always the case, as a realtor and client in their late 40s recently discovered after reading one of our previous blog posts.
The Real-Life Story: A Wake-Up Call for Self-Employed Workers
This realtor, based in Florida, had been diligently paying income taxes but didn’t realize that they were also responsible for paying self-employment tax—the tax that funds Social Security and Medicare.
Like many others across Florida, they trusted their tax preparer, who assured them that “this is all you need to pay,” and assumed they were covered. Unfortunately, their Social Security earnings showed $0 credited income for those years. This left them with no benefits earned for retirement.
How to Check Your Social Security Status Today
If you’re self-employed or unsure about your Social Security contributions, here’s how you can check your status:
- Visit the Social Security Administration website: Go to ssa.gov.
- Create or Log in to Your Account: Use the “my Social Security” portal to securely access your records.
- Check for Missing Years: Look for years that show $0 reported income—these are red flags that self-employment tax may not have been paid.
- Estimate Your Benefits: Use the Social Security Retirement Calculator to see what your monthly benefits will look like.
“I encourage all my self-employed clients in The Villages, Leesburg, and Lady Lake to check this now. The sooner you identify any issues, the easier it is to correct them and plan for the future.”
The Solution: A Guaranteed Income Plan
Fortunately, this realtor had just sold a home and made a significant profit. Instead of letting that money sit or risk incurring unnecessary taxes, we rolled the profit into an annuity—a solution that:
- Provides them with a guaranteed lifetime income of approximately $2,800 a month at retirement (subject to individual circumstances and annuity terms).
- Results in an income that’s nearly 50% higher than the current average Social Security income of $1,907 as of 2024 (Source: SSA.gov).
- Allowed them to defer any immediate capital gains tax on the profit (consult your tax advisor for applicability).
Now, they can rest easy knowing they have a solid, guaranteed retirement income and a plan in place for their future.
Flexible Options to Secure Your Retirement
The great news is, there are flexible solutions to fit every situation and budget:
- Traditional Lump-Sum Investments: Roll over larger profits or savings for guaranteed growth.
- Flexible Contributions: Start small and add funds as your income grows.
- Monthly Payment Options: Gradually build your retirement income with steady contributions.
- Life Insurance with Living Benefits: Protect your family’s future while creating an additional income stream for retirement.
Take Control of Your Retirement Today
If you’re self-employed in Weirsdale, Belleview, or anywhere in Marion County, Social Security may not be enough—or even available—if your earnings aren’t reported correctly. By planning ahead, you can secure a guaranteed income stream and provide peace of mind for yourself and your family.
Don’t wait until retirement to discover you’re unprepared. Let’s work together to create a plan that gives you financial security, flexibility, and confidence for the future.
Disclaimer
This content is for informational purposes only and is not intended as financial, investment, or tax advice. Please consult with a qualified financial advisor or tax professional to discuss your specific situation. Products mentioned, such as annuities and life insurance, are offered as part of insurance planning and not as investment products. Actual benefits and outcomes may vary based on individual circumstances and financial products selected.
