Working for yourself means freedom – but it doesn’t come free.
Perhaps the greatest advantage of hanging out your own shingle or making that consulting business full-time is the independence that comes with being your own boss. But higher expenses and other costs come along with your newfound liberty. You may not be able to sock away as much pretax for retirement, and you may have trouble refinancing your mortgage. Your higher tax bills may shock you, too.
All in all, if you go out on your own, you may need to bring in up to 20% more than before just to break even, especially if you can’t piggyback on your spouse’s health insurance, says David Strege, a financial planner in West Des Moines, Iowa.
Read the entire PDF Article from The Wall Street Journal and comments from David Strege on that it truly means to work for yourself and the ramifications to be out on your own.
– David Strege, CFA, CFP®