Thursday, November 14, 2013

Time for 2014 Goal Planning

Since it is November, it is time to start thinking about our 2014 annual spending plan and our 2014 savings goals.

First on the list, 2014 IRA savings.  As I previously posted, I have already set up our 2014 IRA savings account at CapitalOne 360 (f/n/a ING).  The 2014 contribution limits for IRAs are holding steady, so we can each contribute $5,500 to our non-deductible IRAs.

Second, 2014 401k contributions, I will contribute $17,500 to my 401k at work (again the limits are not increasing next year).  We need to figure out if Mr. Sam will be eligible for a 401k at his new job in 2014.  If he is not eligible, then he may be able to contribute to a deductible IRA (see above) to get a bit of tax savings.  But, regardless of whether he is eligible for 401k we will sock away $17,500 anyways.  Yes it will be after tax money so we will lose out on that advantage but we will still put that money into the trading account.

Third, I assume we will put money into the emergency fund and for house projects.

We will need to decide whether it makes sense to continue to pay down the mortgage principal on our primary home.  While I continue to have the goal of being debt free and paying off the mortgage on our primary home could provide significant insurance savings, we really are not saving much interest by paying early because our mortgage interest rate is so low (2.75%).

I also think we need to start a savings account for a replacement car/truck.  I bought my car, a 2006, in 2008.  I just put about $3000 into it so, even though it is 7 years old, it should be good for quite some time.

But, Mr. Sam's truck, which we bought used in 2005, is more than 10 years old and not in the best condition these days.  He would prefer to keep it and have me buy a newer car and he would take my current car for his work car.  Then we would have the truck to use for house projects and the like when we need it.  But that means we would have 4 cars (we also have an antique weekend car) and that is a lot of insurance.  I'm also not keen on having 4 cars to store/park.  As such, I'm more inclined to replace Mr. Sam's truck with a newer and nicer truck (something with a bigger cab and shorter bed and a smoother ride.  


Alex Rodgers said...

I have been working with the and it seems that they have some very good financial advice to give. Your advice has me wondering if I should have another Advisor on the side. Not that the MutualFundStore isn’t good, but having more than one advisor can’t be all that bad either. Should I do this?

Dan said...

Tundra! Tundra! Tundra! :)

Sam said...

Alex, We don't really use a financial adviser. We, on occasion, meet with the folks at our local Fidelity office. Otherwise, we do our investing on our own using a variety of research tools. I used an adviser at Edward Jones and he just took a good mutual fund I already had and put into another mutual fund. I'm sure financial advisers can be helpful in the right setting, but so far we have not had a good experience.

Cheryl Bush said...

This are very practical goals, Sam. Saving money for emergency funds, insurance, and to put in the bank is the wisest a person can do. To make sure whatever situation happens, you all are ready for it, which I hope there’s none, particularly on your emergency part. Good luck!

Cheryl @