Federal Insurance Contribution Act tax which is 6.2%.Medicare tax is 1.45%.Both of these taxes at 7.65% are part of social security taxes,which traders don't pay.
But you save 7.65% of your profits in social security taxes when you receive a K-1,which can be invested.
Actually it's double that amount since all traders are self employed and have to match what are otherwise deductions. Having the 15% savings from the top works out pretty well, much better than most retirement plans anyway. Don
just incase you guys were wondering.. Remember, the multiply that amount by roughly 1.3 to get US Dollars. It's not equities but just a breakdown. http://www.gtnews.com/articles_se/4367.html ________________- 2002 FX Salary Survey TITLE AVERAGE SALARY PACKAGE (in GBP) (incl bonus) Trading & Sales Senior Management Treasurer 148,000 240,000 Head of FX Trading 150,000 315,000 Head of FX Sales 125,000 300,000+ Head of Currency Options Trading 125,000 300,000+ Head of Money Markets 98,000 176,000+ Head of Forwards Trading 104,000 217,000 Head of Emerging Markets FX 114,000 232,000 Head of Proprietary Trading 120,000 243,000 Chief Dealer, FX 105,000 210,000 Senior Traders & Sales Dealers Senior Spot Dealer 82,000 132,000 Senior Forward Dealer 76,000 108,000 Senior FX Sales 86,000 227,000+ Senior FX Options Trader 91,000 197,000+ Senior Proprietary Trader 86,000 193,000+ Senior Derivatives Structurer 94,000 183,000+ Traders & Sales Dealers Spot FX Dealer 69,000 114,000 Forward FX Dealer 57,000 96,000 Money Market Dealer 52,000 87,000 FX Salesperson 66,000 115,000 FX Options Dealer 74,000 126,000+ FX Economist 93,000 162,000 FX Strategist 87,000 185,000
So, let's do some math here. Head of Proprietary Trading 120,000 243,000 That's about $363K Sterling/Englis Pounds * 1.3 = $471K USD So, it seems like some of the traders at Worldco or Bright made $2M last year or something? Much better than these gus! LOL!
RS7, No Roth either. You actually have no "income" to shelter. All your K-1 income is investment income. Your savings are tremendous in taxes, but most traders would really want a retirement plan if only to shelter money from themselves and their losing streaks....LOL