Hey there! Welcome to the Independent Money newsletter 👋 We’ll be exploring the latest financial news and discussing how it affects entrepreneurs like you. Plus, we'll share some awesome wealth creation insights from successful entrepreneurs.

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Hire Your Family, Boost Your Business (and Savings!)

Did you know you can hire your kids (and even other family members!) to help out with your business? This isn't just about getting a little extra help around the office; it can also be a smart financial move for everyone involved.

Here's how it works:

• Tax Benefits for You: If you pay your children (or other qualifying family members) under a certain amount (currently $12,950), you can deduct that amount from your business taxes, effectively lowering your taxable income.

• Tax-Free Earnings for Them: As long as their earnings fall below the standard deduction amount, your kids won't owe any taxes on the money they earn! This can be a great way for them to start saving for college or other future goals.

Who Can You Hire?

While hiring your kids is a popular option, this strategy can work for other family members too! Consider bringing on retired parents or other relatives who might be interested in contributing their skills.

Bonus Tip: Jumpstart Their Retirement!

Did you know you can open a Roth IRA in your child's name and have them contribute their earnings from the business? This allows them to save for retirement early on, taking advantage of tax-free growth potential.

Thinking about giving this a try? Be sure to consult with a tax advisor to ensure you're following all the legalities and maximizing the benefits for your family and your business. As always, none of this information should be considered tax, legal or investment advice.

An example in action: Blue Ivy Carter

Hypothetically, Blue Ivy could be on her way to becoming a tax free millionaire (and we’re not even talking about her inheritance) thanks to her role as a backup dancer on Beyonce’s Renaissance World Tour.

1) Beyonce is a business owner and hired Blue Ivy.

2) She could then open Blue Ivy a custodial IRA (which is like a regular IRA but specifically for kids).

3) Beyonce could then fund the custodial IRA for Blue Ivy. You can contribute the same amount to a custodial IRA as a regular Roth IRA

4) If Blue Ivy maxes contributions until she’s 18 years old, and it grows at ~8% (which is the average rate for the S&P 500), and it compounds annually:

Then she could have ~6M tax free dollars when she’s 60 years old.

Don’t have a Roth IRA setup for yourself or want to move yours over to Carry? Sign up here.

What’s Happening at Carry?

Here’s what you can expect in the coming weeks

See the full list of events here. ⏰

Want More?

Still can’t get enough? Well, we’ve got you covered!

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If you want more resources on building wealth as a solopreneur/entrepreneur, check these out:

• The Solo 401k handbook 

• The Roth IRA handbook 

• The Self-Directed IRA handbook 

• The Guide to Paying Less in Taxes

• What is a Solo 401k?

• How to Open a Solo 401k