I have spent the last few hours working on my income tax return.  In an effort to decrease my tax liability for 2007, I have opened a SEP-IRA.  A SEP-IRA (Simplified Employee Pension) can be established and funded by a self-employed owner of a business.  Since ‘No Credit Needed’ managed to make a little money in 2007, I can make contributions, on my own behalf, to a SEP-IRA.

For more information on SEP-IRAs, please see the IRS website or this article from Investopedia.

I used this handy calculator from Vanguard to calculate how much I can contribute to my SEP-IRA for 2007.

According to multiple resources, sole proprietors have until April 15th, or their extension deadline, to make contributions if they want a tax deduction for the prior year.

The real problem that I have - right now - is that I have been trying to rebuild my non-retirement savings AND fully-fund my son’s ESA for 2007.  Adding the SEP-IRA at such a late date is really going to slow my savings progress - and could even jeopardize my ability to fully-fund his ESA.  But, I think that I can manage to fully-fund the ESA AND contribute to the SEP-IRA, if I slow my non-retirement savings.

I have decided to hold off on actually filing my taxes until April - so that I can have a little longer to contribute as much as I can to the new SEP-IRA.  I hate the idea of slowing my non-retirement savings progress, but I hate the idea of paying taxes even more!

Please note:  I am not a tax-professional, and I most certainly do not play one online.  Please, before you make any decision about your taxes, consult a qualified tax-professional.

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I have been so busy the past three months.  So, today, I took a day off.  I went golfing with a few of my buddies.  I didn’t think about money, I didn’t think about my investments, I didn’t think about work, and I didn’t think (much) about blogging.  I just grabbed my clubs, went to the course, and ripped it.  I haven’t been able to play golf in a long time - and it showed.  I posted an 80.  It started to rain after the turn, but we kept hitting it.   I have a pretty decent swing - I hit the ball pretty well with my driver and my irons, but I’m only fair around the greens.  My game has suffered from a lack of practice - but it felt great just to be outside, swinging away.

Golf is a treat - and I don’t play very often.  But, when I go, I really enjoy it.  Hopefully, one day, all of this ’saving money’ will pay off and I’ll get to play more often - much more often!

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Here are a few of my favorite articles from my Blogroll -

In Debt Blogger paid off two credit cards!

The Digerati Life has suggestions for investing a financial windfall.

Gen X has information about wills and how assets transfer upon death.

Money Smart Life has an interesting FAFSA guide.

The Sun’s Financial Diary has a simple to use millionaire calculator.

Lazy Man has posted his latest net worth information.

Clever Dude has an idea for a simple, frugal lunch.

My Two Dollars continues the excellent Money Mistake Monday series.

Paid Twice hosts this weeks Carnival of Debt Reduction.

The Happy Rock reminds us to always ask for fees to be removed.

Mighty Bargain Hunter hosts this week’s Festival of Frugality.

The Financial Blogger hosts this week’s Carnival of Personal Finance.

Future Millionaire is giving away a copy of The Millionaire Next Door.

Uncommon Cents has some information about Capital Gains.

Wisdom Getting Loaded has two articles about eating healthy foods.

Perfectly Imperfect has a neat list of Firefox add-ons.

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One of my goals for 2008 is to rebuild my non-retirement savings.

As of February 18, the balance in my non-retirement savings is $4,500.

My goal for 2008 is $16,000.  With the new baby on the way, I feel that it is important to have some extra cash ‘on hand’.  With that in mind, I will rebuild my non-retirement savings, and then I will focus on funding my wife’s Roth IRA for 2008.

Click here to view my No Credit Needed Network Chart - NCNSavings2008.

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Here is our current plan to live debt-free and stay debt-free -

1. We fully-fund four retirement accounts - my wife’s Roth IRA, my wife’s Pension Plan, my Roth IRA, and my 403b.
2. We save money for future ‘major purchases’ - newer cars, new furniture, new appliances - in our ING DIRECT Savings Account.
3. We are saving for a future home purchase in our brokerage account.  While not as tax-efficient as our retirement accounts, we have ready access to this money.  Should we need to purchase a home before we can pay full-price, we can use the money in this account for a healthy down payment.

We live on a strict budget, we fully-fund our retirement accounts, and we save as much as we can for future purchases.  Instead of making payments to an automobile loan, we make a ‘car payment’ to our savings account.  Instead of making mortgage payments to a mortgage company, we make a ‘mortgage payment’ to our brokerage account.

I like having interest and time work ‘for me’ and instead of ‘against me’.  Now, when I want to buy something, I save up for it, and then I purchase it.  Radical, I know!

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