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Yes, even if you are a business owner or self-employed, you can receive Social Security benefits as long as you have been paying Social Security tax each year. The Social Security Administration defines you as self-employed if you operate a business, trade, or profession by yourself or as a partner. Here is a business owner’s guide to social security and planning for your future.

Earnings get taxed for Social Security up to $168,000 in 2024

If you work for an employer, both you and your employer pay a 7.65% tax for Social Security and Medicare tax up to $168,000 of your earnings. Of the 7.65%, 1.45% goes toward Medicare. Higher earners may be required to pay an additional 0.9%. If you are self-employed, you pay both the employee and employer amounts, 12.4% Social Security tax, and a 2.9% Medicare tax, amounting to a total of 15.3%. These taxes are also known as the Federal Insurance Contributions Act (FICA).

Determining the context of your retirement for the Internal Revenue Service (IRS)

The Social Security Administration will want to know if you are retiring entirely or if you plan to continue working. If you are of retirement age or older, you can receive your Social Security benefits whether or not you retire from your business. You are allowed to get Social Security retirement or survivor benefits and work at the same. The catch is if you are younger than full retirement, there are income limits, and if you are above them, your benefits may be reduced.

If you are a lower earner

A lower earner may be allowed to continue working and receive their full Social Security benefit and not be subject to a penalty.

Earnings test threshold in the year you reach full retirement age

If you reach normal retirement age in 2024, the annual exempt amount has increased to $59,520 for the months you hit full retirement age, up from $56,520. When you reach retirement age, $1 in benefits gets withheld for every $3 above the limit. If you reach normal retirement age after 2024, the annual exempt amount is $22,320. In this case, $1 in benefits is withheld for every $2 of earnings in excess of the lower amount.

Beneficiaries could have 85% of their benefit income taxed

Contrary to popular belief, Social Security benefit income may get taxed. If you are an individual tax filer earning between $25,000 and $34,000 or married and filing jointly earning between $32,000 and $44,000, you could be subject to tax up to 50% of your benefits. If you are an individual filer and your income exceeds $34,000 or married with an income in excess of $44,000, you may pay taxes on up to 85% of your benefits.

Groups exempt from paying Social Security and ineligible for benefits:

Generally, most American workers are automatically enrolled to pay into Social Security; therefore, in time, they will be able to receive them. Some groups are exempt from paying Social Security taxes but can’t receive them either. Here are a few groups that meet the eligibility to be exempt: · Temporary student exemption · Employees of foreign governments · Nonresident aliens · Specified recognized religious groups

Consult a financial professional

Social Security and tax rules change often, and they can be complicated. When applying these rules to your financial situation, your decisions may impact you and your business goals in various ways without even realizing it. Consider consulting a financial professional who can work with you as you strive toward aligning your financial decisions with your strategy and long-term business goals.     Important Disclosures: Content in this material is for educational and general information only and not intended to provide specific advice or recommendations for any individual. This information is not intended to be a substitute for specific individualized tax advice. We suggest that you discuss your specific tax issues with a qualified tax advisor. All information is believed to be from reliable sources; however, LPL Financial makes no representation as to its completeness or accuracy. Sources: Social Security may affect workers in 2024. 3 rules to keep in mind (cnbc.com) How Social Security Works for Business Owners - Due What's New in 2024 (ssa.gov) Who Is Exempt From Paying Into Social Security? (investopedia.com) This article was prepared by LPL Marketing Solutions LPL Tracking # 541156

April marks Stress Awareness Month, which provides a great opportunity to shed light on a topic often overlooked in the world of high-net-worth investors, which is mental health. For anyone who is used to managing substantial wealth, the pressure to sustain success may take a toll on your mental well-being. Here are some of the mental health challenges that high-net-worth individuals may face, how to address stigmas surrounding the issues, and a few practical tips to help you prioritize your mental health while continuing to pursue wealth and success.

Isolation and Loneliness

Wealthy individuals often find themselves isolated due to the challenges of managing significant assets. Common fears of being misunderstood or taken advantage of may further contribute to feelings of loneliness, particularly for those who grew up in lower-income families and then became wealthy.

Perfectionism and High Expectations

Pursuing success may breed perfectionism and high expectations. Constantly striving for excellence may lead to chronic stress, anxiety, and a never-ending quest for validation along the way.

Fear of Failure and Financial Stress

Even when you have financial success, the fear of an economic downturn or other crisis may be a constant source of stress. The pressure to maintain a certain lifestyle may also create a perpetual cycle of anxiety.

Stigma Around Mental Health

It's common for high-net-worth individuals to hesitate to seek help due to the stigma surrounding having mental health problems. The misconception that money equals happiness may deter people from acknowledging, let alone addressing, their mental health struggles.

Tips to Help You Prioritize Your Mental Health

Here are some tips to up-level how you deal with your mental health.

Break the Silence

Challenge mental health stigmas by openly discussing mental health issues within your social and professional circles. By sharing your experiences, you may also create a supportive environment that encourages others to seek help.

Get Professional Guidance

Just as you consult financial professionals for wealth management and attorneys for legal advice, enlist the help of mental health professionals to navigate any struggles or challenges with your emotional and mental well-being. Therapists and counselors may provide valuable insights and coping strategies you may not be able to discover on your own.

Establish Work-Life Balance

Integrate regular downtime into your schedule to help avoid burnout. Setting aside time for hobbies, family, and self-care may help you maintain a healthier work-life balance and leave work-related stress at work.

Set Realistic Expectations

It's important to understand that perfection is unattainable. Establishing realistic goals may alleviate the self-imposed pressure that comes from trying to maintain unattainable standards.

Practice Mindfulness and Stress Reduction Techniques

Incorporate mindfulness practices like meditation, yoga, and deep-breathing exercises into your routine to help manage stress and promote mental well-being. Wealth, success, and mental health are intricately intertwined. This Stress Awareness Month, we want to encourage a more holistic approach to success that encompasses financial prosperity and mental well-being. After all, true wealth isn't just found in your bank accounts but also in the overall happiness and fulfillment you find in life.     Important Disclosures: The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. This article was prepared by WriterAccess. LPL Tracking #540923

Often, there is a misconception that seeking financial help indicates incompetence or lack of financial self-sufficiency. However, seeking help is the exact opposite. High-performing individuals who excel in their respective fields adopt a more pragmatic approach - they understand the importance and benefits of employing a financial professional's services. Seeking the help of a professional to assist in one's wealth planning leaves more time for them to focus on their primary specialty area, thus driving efficiency in managing results. Often, these individuals are focused on their careers, are business owners, or are high achievers with many goals. Here are ten ways a financial professional can assist high-performing individuals work toward improving their financial health.

1. Planning for goals

A financial professional can develop a customized plan considering income, expenses, financial goals, risk tolerance, and investment strategies. This holistic plan considers all aspects of a high-performing individual's financial life and aligns them with their goals.

2. Planning for retirement

It's vital to start planning early to maintain your desired lifestyle while working and after retirement. Financial professionals will work to understand your retirement lifestyle goals and devise a comprehensive plan based on your goals, risk aversion, and timeline.

3. Investment advice based on your situation

Investing can be a complex process. A financial professional can help with investment diversification and recommend suitable investment strategies to help manage financial goals.

4. Tax planning

Efficient tax planning can result in significant financial savings. Financial professionals are equipped to recognize your tax liabilities and objectively propose strategies to mitigate taxes.

5. Risk management and insurance

From health insurance to life and property insurance, financial professionals can help you understand the importance of appropriate insurance coverage. Your assets may avoid early depletion with suitable insurance, making insurance essential to asset preservation.

6. Debt management

Too much debt can hinder financial independence. Financial professionals work with you to determine appropriate strategies for prioritizing and paying off debts, maintaining a healthy credit score, and working toward financial confidence.

7. Estate planning

Comprehensive estate planning ensures efficient wealth transfer to beneficiaries. Financial and legal professionals together will help guide you through complex processes such as drafting a will, setting up trusts, and tax implications based on your situation.

8. Education funding

Whether you're funding your child's education or returning to school yourself, a financial professional can guide you on appropriate strategies for paying for education without jeopardizing your financial goals.

9. Emergency funding

Unexpected situations that require immediate financial resources may arise. A financial professional will help develop a strategy for creating an emergency fund and determine the appropriate amount to set aside as you work toward a fully funded emergency fund.

10. Behavioral coaching

Money decisions often involve a lot of emotions; market ups and downs and other significant life events can derail your long-term financial goals. If your emotions dictate your investment decisions, a financial professional can help you manage them to keep you on track toward pursuing your goals. Remember, financial wellness is not just about acquiring wealth; it's also about managing and preserving it for the future. High-performing individuals must seek guidance in this endeavor, as managing finances requires the help of a financial professional, time, and continuous effort.     Important Disclosures: This material was created for educational and informational purposes only and is not intended as tax, legal, insurance or investment advice. If you are seeking advice specific to your needs, such advice services must be obtained on your own separate from this educational material. All information is believed to be from reliable sources; however, LPL Financial makes no representation as to its completeness or accuracy. This article was prepared by Fresh Finance. LPL Tracking # 538128 Sources https://www.forbes.com/advisor/investing/financial-advisor/what-is-a-financial-advisor/