As a fiduciary financial advisor in Hillsborough, Holland Capital helps households where one spouse earns a salary and the other works for themselves bring both incomes into one household plan. We work with clients in Hillsborough by video and phone, and meet in person by appointment at C3 Hillsborough on North Churton Street.
One paycheck, one business, one plan.
Hillsborough has about 10,000 people. Nearly four in ten workers are in education or health care, and more residents than usual are self-employed or work from home.
In some households, one spouse has a salaried job with workplace benefits. The other runs a practice, consults or works freelance. Each side has its own accounts, rules and tax forms. It is easy for the two halves to be planned separately.
Two Kinds of Retirement Saving
The salaried spouse may have a 401(k) or 403(b) at work, often with a match. The self-employed spouse may be able to use a solo 401(k), a SEP IRA or another plan, depending on the business and whether it has employees. Our self-employed retirement plan guide shows how they differ.
Each spouse’s contributions follow the rules for that person’s accounts and income. A plan decides how much goes into each account, and whether to use pre-tax or Roth savings, based on the household’s taxes and savings goal.
Taxes on Uneven Income
Business income rarely has tax taken out along the way. The self-employed spouse may need to make quarterly estimated payments. Another option is to have more withheld from the salaried spouse’s paycheck to cover part of it.
Self-employment tax generally applies to net earnings from the business. When business income changes from year to year, the plan sets aside enough for taxes before the money is spent.
RETIREMENT ENGINEERING™
The Order Matters
Five retirement decisions and why timing matters.
Benefits, Cash and One Savings Target
Health coverage often comes through the salaried spouse’s employer. That job may also provide life and disability coverage that the self-employed spouse does not have. Those gaps belong in the plan.
A business with uneven income needs a larger cash reserve. The plan sets one target for the household and shows what each spouse needs to save to reach it.
At Holland Capital, investment management treats both spouses’ accounts as one household portfolio.
How We Work with Clients in Hillsborough
Holland Capital Management is an independent registered investment adviser and a fiduciary. M. Chad Holland, CFA, CFP® works directly with clients and is responsible for the planning and advice.
Bring two years of tax returns with the business schedules, the salaried spouse’s pay stub and benefits summary, and a statement for every retirement, investment and bank account.
The result is a written household plan: what each spouse saves and where, how much to set aside for taxes and how the household reaches its retirement goal.
The first conversation is free. If there is work worth doing after that, we will define the scope and cost before you decide whether to move forward.
Holland Capital is based in Charlotte. If you are looking for a fiduciary financial advisor in Hillsborough, we meet by appointment at C3 Hillsborough, a coworking space at 128 North Churton Street in downtown Hillsborough, and handle shorter check-ins by video or phone. Holland Capital does not maintain a branch office in Hillsborough.
We work with clients throughout North Carolina. You can see the other North Carolina communities we serve here.
Our what we do page explains how a planning engagement works.
RETIREMENT ENGINEERING™
The Order Matters
Five retirement decisions and why timing matters.
Frequently Asked Questions
Can a Self-Employed Spouse Still Save for Retirement?
Yes. A self-employed person may be able to use a solo 401(k), a SEP IRA or another retirement plan. Which one fits depends on the business income, whether there are employees and the household’s savings goal.
How Does a Fiduciary Financial Advisor Help a Two-Income Household Like Ours?
Holland Capital acts as a fiduciary when providing financial planning and investment advice. For your household, that means advice on both incomes, both sets of accounts and your taxes together.
Our fee is described in writing before we start.
Where Would We Meet in Hillsborough?
At C3 Hillsborough, a coworking space on North Churton Street downtown, by appointment.
Video and phone calls work well around two schedules.
Photo: Mx. Granger / Wikimedia Commons / CC0, cropped.
