Hi Money Minder,
Hey Money Minder,
So here’s the deal – I’m all about that FIRE life eventually, but I want to enjoy the balance between work and chilling until then. I’ve got my own business, so I can write off some expenses and make life easier on the wallet. Plus, I do some work for this other person who also runs their own show.
Right now, they pay me 100 bucks an hour as a 1099 contractor, putting in about 20-30 hours a week. I take care of my own health insurance and stash money in a 401k like a responsible adult.
But now they’re throwing some options my way – like switching to W2 and getting on their health insurance plan. Cool, but they don’t have a retirement plan. They’re open to setting something up for me if needed.
Here’s what I’m mulling over: stick with being a 1099, handle my own health insurance and 401k, and just rake in more cash. I’m thinking of skipping out on their benefits, asking for a raise instead, and setting a minimum work hours per week for pay. But before I make any moves, I wanted to get your take on the situation. How would you handle it? I want that work-life balance, but also need to make sure I’m not stressing about money constantly.
Catch you later,
Financially Savvy Slacker
Response from THE MONEY MINDER:
Thank you for reaching out to us. Please let us know how we can assist you with your financial needs.
"Hello There,"
Congratulations on being recognized as an asset to your employer! It’s great to hear that they value your contributions and want you to be happy in your role.
In considering whether to switch from a 1099 to W2 status, it’s crucial to weigh the pros and cons of each option. As a 1099 worker, you have the flexibility to manage your health insurance and 401k contributions independently, allowing you to maximize your take-home pay. However, shifting to a W2 position with benefits like health insurance and a potential retirement plan offers stability and additional perks.
Given your goal of eventually achieving financial independence and work-life balance, it may be prudent to stay as a 1099 worker but negotiate for a higher hourly rate or minimum floor on hours worked. By doing so, you can maintain control over your finances while ensuring you have a steady income and flexibility in your schedule.
Regarding the retirement plan, if your employer is open to setting one up for you, it could be a valuable benefit for your long-term financial security. You could explore options with a financial planner to determine the best strategy for saving for retirement and aligning it with your overall financial goals.
In conclusion, it seems like you have a clear understanding of your priorities and preferences when it comes to balancing work and financial stability. Your approach to negotiating for a raise and setting a minimum floor on hours worked while remaining a 1099 worker is a practical and realistic way to achieve your goals. Remember to consider all aspects of the decision carefully and choose the option that aligns best with your long-term financial plans.
Best of luck with your decision-making process, and remember, THE MONEY MINDER is always here to support you on your financial journey.
Farewell from THE MONEY MINDER.
