Strategies for Tax ithholdings for the Self-Employed

[Megan Hirlehey]

Those of you that are self-employed and therefore responsible for withholding your own taxes, how much of your earnings do you stash? Are there any strategies you use to earn a decent (but safe) return on the money you put aside for taxes through the year? Do you just use a “high interest” (I use that term loosely..) savings account? Has anyone tried to set up something a bit higher yielding such as a CD ladder? Is it more beneficial to pay your taxes when you file in one lump sum or do you use a payment plan in order to allow for more time to earn interest? Are there any other strategies out there for making your money work for you, but still keeping it “safe” while you wait for Uncle Sam to come calling?