I was unable to find a thread on this topic but....
When you start getting RIF income where would you put it on a budget spreadsheet? When I receive employment income I know where that goes but RIF income, to me, is just getting transferred from one part of my portfolio to another. Would you consider it "income" and let it go at that? Even though it's not really new money?
Not the biggest concern in the world but I've been a bit befuddled by how to handle this issue next year. As usual I may be overthinking this.
Any thoughts? Thanks for the help.
RIF income on my budget spreadsheet goes where?
Re: RIF income on my budget spreadsheet goes where?
A budget is really a cash flow statement, so RIF income is revenue, while ultimately the tax owing from the withdrawal is expense. You are getting that confused with a balance sheet, i.e assets and liabilities, or an income statement.
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Re: RIF income on my budget spreadsheet goes where?
Thanks, AltaRed, I appreciate the reply. That makes sense.
Off to look at my spreadsheet.
Off to look at my spreadsheet.
Re: RIF income on my budget spreadsheet goes where?
Absolutely. I have a line on my budget spreadsheet that is titled “(to) from investment account”. This is the cash flow that comes from liquidations or further investment. I also have lines for interest and divs of course. In retirement it’s cash flow that really counts.