Comments on: Going solo: Accounting tips for freelancers

By: Joe Vitale, NYC

Joe Vitale, NYC — Wed, 15 Apr 2009 15:43:07 +0000

This is Joe Vitale, thanks for all the info.

I chose to use quicken for my business accounting, and I have set up a SEP IRA.

It's a lot to process, but I feel like I learn a little bit more every day.

Thanks again.

By: Richard, Boston, MA

Richard, Boston, MA — Sun, 08 Feb 2009 00:44:31 +0000

To AH Stanton:
You can have a bank CD or a money market account within an IRA, so there is no reason to fear investing. Money in your mattress loses value at the rate of inflation, but at least an interest-bearing account will return something.

By: David Preiss

David Preiss — Wed, 14 Jan 2009 15:41:36 +0000

For those who are gun-shy about investing their money in equities, I would like to point out that allocating money to a SEP IRA does not prevent you from keeping that money in "Cash". The tax shelter works just as well if your money sits in a Money Market account rather than a mutual fund.

However, if you have an eye for the long term, and you don't believe the Markets will fall into a never-ending depression, than investing the money into funds is wise. I advise using market tracking Index funds because there is no sense in paying heavy expenses for fund managers that can't win in a bad market.

By: Srini Lokula

Srini Lokula — Sat, 20 Dec 2008 17:39:50 +0000

I completely agree and strongly recommend that a good bookkeeping program is a MUST when you are running your own shop. I have seen some people use Microsoft Excel for accounting purpose but this is a very bad idea. Now a days, accouting software (such as Peachtree Accounting, Quicken, Microsoft Accounting) costs less than $200, so better to use one of those programs, you cannot go wrong. There are lot of genuine vendors who sells GENUINE software for less money, so shop around prior to buying directly from Software Companies/Publishers.

Now, when it comes to retirement, I have been implementing SEP, it is been a great program but with the current situation most of the money disappeared. You can get help by calling your local SBA or SCORE office. It is all FREE, so please call them. Let me know, if I can be helpful (As a business owner for the last 12 years) as a fellow business man. Good Luck !

By: Andrew Schmitz

Andrew Schmitz — Thu, 18 Dec 2008 20:38:52 +0000

An IRA, like a 401k is money placed in a growth account that is not taxed until it is taken out for retirement. It's a long term investment plan that will payoff by weathering the storm. If you place the money in your bank, the taxes go to Uncle Sam instead of your IRA where it will be used to make more money. IRAs fluctuate like the market, so if you contribute to it when it's down, you invest in more shares and those share prices will eventually go up. SEP IRA funds are an excellent idea for freelancers. Some have higher risk than others, so do your research. I've had one for 10 years and it's down now, but It's higher than my initial investments placed many years ago. I can't pull my money anyway or I'll pay heavy penalties. Contribute to the IRA and simply wait to you retire. Patience…

By: A.H.Stanton

A.H.Stanton — Sun, 14 Dec 2008 19:51:48 +0000

Gentlemen,after reading all the new I can find on the subject of IRA's,and their many losses in recent weeks, I'm at a loss to understand why anyone would venture to create an IRA as the "fail" rate is discouraging to say the least. A near 30% loss is not unusual. Maybe a "mattress" account would be much safer if not very high on interest gained list.Then, inflation and exchange rates demand their toll as well. Where does it end?