Entering Interest in IRA Account

Posted by Andrew DeFaria on October 18, 2007, 1:26 am

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R. C. White wrote:

> Hi, Andrew.

>> Really? So I'm curious now. What sort of retirement plan did you

>> have? Just a pension? Independently wealthy? Currently eating dog

>> food and loving it? :-)

> No pension except Social Security. Not independently wealthy. Just a

> good education, hard work and long hours for 30 tax seasons, spending

> less than we made - and good luck, I guess.

And probably a much more meager retirement unfortunately. :-(

And if not that then independently wealthy - by definition.

> As I think I've said before, it's partly a matter of my personal

> philosophy and partly a matter of timing. The current

> Keogh/IRA/401(k) climate did not occur all at once. It arrived in

> incremental stages during my working years in the 1960s to 1980s, with

> each stage a couple of years too late to do me any good. By the time

> I might have qualified, I had stopped paying interest and started

> earning some. THAT's the hump that most folks never get over. From

> there, it was just a matter of investing and reinvesting our savings

> until it snowballed into a nest egg. Haven't had to eat dog food

> yet. ;<)

Well if you managed to obtain a nest egg of any worth then you became
independently wealthy. Indeed you are wealthy enough to be on retirement
for quite some time from what you say.

>> Damn credit cards and debts - what a bother. But still I want to

>> account for them and pay

>> them, hopefully off.

> Credit cards are a wonderful tool, when properly used. We've used

> them for decades and never pay any interest or annual fee. We use

> THEIR money - and earn interest on it - instead of letting them use

> ours. We never even look at the interest rates on our cards because

> we're not going to pay it, anyhow.

Ah.... That would be the paying them off portion that I mentioned...
--
Andrew DeFaria <http://defaria.com>
In some cultures what I do would be considered normal.

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R. C. White wrote:
Andrew.
 
<blockquote type="cite">Really? So I'm curious now. What sort of
retirement plan did you have?
Just a pension? Independently wealthy? Currently eating dog food and
loving it? :-)
 
</blockquote>
No pension except Social Security.  Not independently wealthy.  Just a
good education, hard work and long hours for 30 tax seasons, spending
less than we made - and good luck, I guess. 
</blockquote>
And probably a much more meager retirement unfortunately. :-( 
 
And if not that then independently wealthy - by definition. 
As I think I've said before, it's partly a matter of my personal
philosophy and partly a matter of timing.  The current Keogh/IRA/401(k)
climate did not occur all at once.  It arrived in incremental stages
during my working years in the 1960s to 1980s, with each stage a couple
of years too late to do me any good.  By the time I might have
qualified, I had stopped paying interest and started earning some.
THAT's the hump that most folks never get over.  From there, it was
just a matter of investing and reinvesting our savings until it
snowballed into a nest egg.  Haven't had to eat dog food yet.  ;<)
 
</blockquote>
Well if you managed to obtain a nest egg of any worth then you became
independently wealthy. Indeed you are wealthy enough to be on
retirement for quite some time from what you say. 
<blockquote type="cite">Damn credit cards and
debts - what a bother. But still I want to account for them and pay
 
them, hopefully off.
 
</blockquote>
Credit cards are a wonderful tool, when properly used.  We've used them
for decades and never pay any interest or annual fee.  We use THEIR
money - and earn interest on it - instead of letting them use ours.  We
never even look at the interest rates on our cards because we're not
going to pay it, anyhow.
 
</blockquote>
Ah.... That would be the paying them off portion that I mentioned... 
<div class="moz-signature">-- 
<a href="http://defaria.com">Andrew DeFaria</a> 
In some cultures what I do would be
considered normal.
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Posted by R. C. White on October 19, 2007, 12:29 am

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Hi, Andrew.

> And probably a much more meager retirement unfortunately. :-(

> And if not that then independently wealthy - by definition.

My definition of "rich" is "having a choice". Sometimes I eat steak;
sometimes hamburger. I decide when to eat what. I don't HAVE to eat
hamburger. ;<) And we were eating quite well, thank you, BEFORE the SS
checks started coming.

>>> pay

>>> them, hopefully off.

> Ah.... That would be the paying them off portion that I mentioned...

Ah... But you said "hopefully". It takes more than hope. And it probably
will take more than a year or two. But once it's done the first time, it's
easy after that. As I said, "THAT's the hump that most folks never get
over."

Putting aside inheritances, jackpots and larceny, I know just two ways to
become wealthy enough to have choices: Earn more than you spend, or spend
less than you earn.

Yes, I know it sounds corny and maybe even silly. Like "eat less and
exercise more" to lose weight. But that IS the formula. And it works. ;<)

Oh, I did mention good luck, didn't I? Bad luck - and bad decisions - can
ruin the best plans and efforts. :>(

RC
--
R. C. White, CPA
San Marcos, TX
(Retired. No longer licensed to practice public accounting.)
rc@grandecom.net
Microsoft Windows MVP
(Currently running Quicken 2008 Deluxe in Vista Ultimate x64 SP1 beta)

> R. C. White wrote:

>> Hi, Andrew.

>>> Really? So I'm curious now. What sort of retirement plan did you

>>> have? Just a pension? Independently wealthy? Currently eating dog

>>> food and loving it? :-)

>> No pension except Social Security. Not independently wealthy. Just a

>> good education, hard work and long hours for 30 tax seasons, spending

>> less than we made - and good luck, I guess.

> And probably a much more meager retirement unfortunately. :-(

> And if not that then independently wealthy - by definition.

>> As I think I've said before, it's partly a matter of my personal

>> philosophy and partly a matter of timing. The current

>> Keogh/IRA/401(k) climate did not occur all at once. It arrived in

>> incremental stages during my working years in the 1960s to 1980s, with

>> each stage a couple of years too late to do me any good. By the time

>> I might have qualified, I had stopped paying interest and started

>> earning some. THAT's the hump that most folks never get over. From

>> there, it was just a matter of investing and reinvesting our savings

>> until it snowballed into a nest egg. Haven't had to eat dog food

>> yet. ;<)

> Well if you managed to obtain a nest egg of any worth then you became

> independently wealthy. Indeed you are wealthy enough to be on retirement

> for quite some time from what you say.

>>> Damn credit cards and debts - what a bother. But still I want to

>>> account for them and pay

>>> them, hopefully off.

>> Credit cards are a wonderful tool, when properly used. We've used

>> them for decades and never pay any interest or annual fee. We use

>> THEIR money - and earn interest on it - instead of letting them use

>> ours. We never even look at the interest rates on our cards because

>> we're not going to pay it, anyhow.

> Ah.... That would be the paying them off portion that I mentioned...

> --

> Andrew DeFaria <http://defaria.com>

Posted by Andrew DeFaria on October 19, 2007, 3:25 am

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R. C. White wrote:

> Hi, Andrew.

>> And probably a much more meager retirement unfortunately. :-(

>> And if not that then independently wealthy - by definition.

> My definition of "rich" is "having a choice". Sometimes I eat steak;

> sometimes hamburger. I decide when to eat what. I don't HAVE to eat

> hamburger. ;<) And we were eating quite well, thank you, BEFORE the

> SS checks started coming.

No offense intended. My definition of independently wealthy is able to
get by nicely (a la steak) without assistance.

>>>> pay

>>>> them, hopefully off.

>> Ah.... That would be the paying them off portion that I mentioned...

> Ah... But you said "hopefully". It takes more than hope. And it

> probably will take more than a year or two. But once it's done the

> first time, it's easy after that. As I said, "THAT's the hump that

> most folks never get over."

Yes which is why I said hopefully, because most don't.

> Putting aside inheritances, jackpots and larceny, I know just two ways

> to become wealthy enough to have choices: Earn more than you spend,

> or spend less than you earn.

> Yes, I know it sounds corny and maybe even silly. Like "eat less and

> exercise more" to lose weight. But that IS the formula. And it

> works. ;<)

Interestingly enough I'm currently doing just that. Exercising, eating
less and losing weight and earning more and spending less. I concur! It
does work!

> Oh, I did mention good luck, didn't I? Bad luck - and bad decisions -

> can ruin the best plans and efforts. :>(

Most assuredly.
--
Andrew DeFaria <http://defaria.com>
Enter any 11-digit prime number to continue...

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R. C. White wrote:
Andrew.
 
<blockquote type="cite">And probably a much more meager retirement
unfortunately. :-(
 
 
And if not that then independently wealthy - by definition.
 
</blockquote>
My definition of "rich" is "having a choice".  Sometimes I eat steak;
sometimes hamburger.  I decide when to eat what.  I don't HAVE to eat
hamburger.  ;<)  And we were eating quite well, thank you, BEFORE
the SS checks started coming.
 
</blockquote>
No offense intended. My definition of independently wealthy is able to
get by nicely (a la steak) without assistance. 
<blockquote type="cite">
<blockquote type="cite">
<blockquote type="cite">pay
 
them, hopefully off.
 
</blockquote>
</blockquote>
</blockquote>
<blockquote type="cite">Ah.... That would be the paying them off
portion that I mentioned...
 
</blockquote>
Ah...  But you said "hopefully".  It takes more than hope.  And it
probably will take more than a year or two.  But once it's done the
first time, it's easy after that.  As I said, "THAT's the hump that
most folks never get over."
 
</blockquote>
Yes which is why I said hopefully, because most don't. 
aside inheritances, jackpots and larceny, I know just two ways to
become wealthy enough to have choices:  Earn more than you spend, or
spend less than you earn.
 
 
Yes, I know it sounds corny and maybe even silly.  Like "eat less and
exercise more" to lose weight.  But that IS the formula.  And it
works.  ;<)
 
</blockquote>
Interestingly enough I'm currently doing just that. Exercising, eating
less and losing weight and earning more and spending less. I concur! It
does work! 
I did mention good luck, didn't I?  Bad luck - and bad decisions - can
ruin the best plans and efforts.  :>(
 
</blockquote>
Most assuredly. 
<div class="moz-signature">-- 
<a href="http://defaria.com">Andrew DeFaria</a> 
Enter any 11-digit prime number to
continue...
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Posted by Guy Scharf on October 17, 2007, 12:46 pm

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> You shouldn't enter it in YOUR books at all, because it isn't YOUR

> income.

> I've never had an IRA, 401(k) or similar plan, and have never used

> Quicken to account for one, even for a client.

Typical practice is to record an IRA, 401(k) or similar plan as an
account in one's personal Quicken file. When you create an account,
you designate it to Quicken as an IRA, 401(k), etc. so that it
participates appropriately in reports, especially tax-related reports.

Guy