While I try not to get too tied up in our NetWorth IQ numbers, I love, love, love the data. I find it super exciting to look back three years or five years or more and see where we or I (combined our numbers in January 2007) were.
My big net worth jumps show up when (1) I/we buy real estate and (2) when we got married and combined forces. See August 2003 and December 2005 for real estate spikes and January 2007 for marriage spike. Between January 2003 and August 2003 I basically doubled my net worth by saving up and buying my first real estate investment property. I paid $180,000 for the property in 2003 and it is now valued at $392,000.
Otherwise most of our progress is slow and steady. In January 2007 we had $735,054 in liabilities, at the start of our Total Money Makeover baby steps, just after marriage and combination of finances, and now we have $637,504 in liabilities. In almost three years we have reduced our liabilities by $97,550. Similarly, on the asset side, we have increased our assets by $110,637 between January 2007 and now.
In six years my individual net worth has grown from $50,000 to $1 Million combined net worth with my husband.
Monday, November 2, 2009
Sunday, November 1, 2009
2010 Planning
While we are still working away on our 2009 goals, it is time to start thinking about our savings plan for 2010.
The maximum we can contribute to our 401ks remains the same - $16,500 each or $33,000 for both of us. Second, the maximum we can contribute to our IRAs also remains the same - $5,000 each or $10,000 for both of us.
So our 2010 savings goal will include two of the same goals that we are working on for 2009:
(1) Max out our 401ks - $33,000
(2) Max out our IRAs - $10,000
I have also been researching how to and whether it makes sense for us to convert all of/or part of our present IRA monies to Roth IRAs in 2010 (the income limits are to disappear in 2010). So that is also an item on our personal finance planning for 2010.
Mr. Sam's IRA conversion should be pretty easy because all of the money in his IRA was after tax money for which he took no deductions. So, said another way, he already paid taxes on all of the money in his IRA so he will only need to pay taxes on any gains.
I took tax deductions for about a quarter of my IRA money, however that money is still easily identifiable as its all in one index fund. So my tentative plan is to convert the other three quarters of my IRA money, all after tax money no deductions, to Roth IRA and therefore I'll only need to pay taxes on any gains.
The other issue is timing, we can convert our regular IRA to Roth IRA at any time next year and the value of the IRA on the actual date of conversion is the value used to calculate taxes. So, one wants to convert from regular IRA to Roth IRA when the value is at its lowest.
The maximum we can contribute to our 401ks remains the same - $16,500 each or $33,000 for both of us. Second, the maximum we can contribute to our IRAs also remains the same - $5,000 each or $10,000 for both of us.
So our 2010 savings goal will include two of the same goals that we are working on for 2009:
(1) Max out our 401ks - $33,000
(2) Max out our IRAs - $10,000
I have also been researching how to and whether it makes sense for us to convert all of/or part of our present IRA monies to Roth IRAs in 2010 (the income limits are to disappear in 2010). So that is also an item on our personal finance planning for 2010.
Mr. Sam's IRA conversion should be pretty easy because all of the money in his IRA was after tax money for which he took no deductions. So, said another way, he already paid taxes on all of the money in his IRA so he will only need to pay taxes on any gains.
I took tax deductions for about a quarter of my IRA money, however that money is still easily identifiable as its all in one index fund. So my tentative plan is to convert the other three quarters of my IRA money, all after tax money no deductions, to Roth IRA and therefore I'll only need to pay taxes on any gains.
The other issue is timing, we can convert our regular IRA to Roth IRA at any time next year and the value of the IRA on the actual date of conversion is the value used to calculate taxes. So, one wants to convert from regular IRA to Roth IRA when the value is at its lowest.
Saturday, October 31, 2009
Pumpkin Day
(1) Max out 401ks - $33,000
(2) Max out 2009 IRAs - $10,000
(3) House project and furniture - $6,000
(4) Add to baby fund - $5,000
(5) Add to emergency fund - $10,000
Total - $64,000
(1) $26,226 (79%)
(2) $10,000 (100%)
(3) $1,218 (20%)
(4) $1,095 (22%) ($6,095 in our ING baby account)
(5) $1,962 (20%) ($23,843 in our ING e/r account)
Total - $40,501 (63%)
We have hit the $40,500 mark!! Whoo-hoo!
(2) Max out 2009 IRAs - $10,000
(3) House project and furniture - $6,000
(4) Add to baby fund - $5,000
(5) Add to emergency fund - $10,000
Total - $64,000
(1) $26,226 (79%)
(2) $10,000 (100%)
(3) $1,218 (20%)
(4) $1,095 (22%) ($6,095 in our ING baby account)
(5) $1,962 (20%) ($23,843 in our ING e/r account)
Total - $40,501 (63%)
We have hit the $40,500 mark!! Whoo-hoo!
Thursday, October 22, 2009
IRS Audit, Now What?
We received notification that we are being audited by the IRS. Yikes!
Details regarding the audit: (1) we are required to appear for a face to face interview; (2) the issues to be reviewed are (a) interest income and (b) investment interest; (3) time period 2006-2008.
I will be calling my accountant this morning to discuss response plan and I am trying not to freak out too much.
Details regarding the audit: (1) we are required to appear for a face to face interview; (2) the issues to be reviewed are (a) interest income and (b) investment interest; (3) time period 2006-2008.
I will be calling my accountant this morning to discuss response plan and I am trying not to freak out too much.
Tuesday, October 20, 2009
$1 Million
Well, as you can see from our Net Worth IQ chart, we have hit the $1,000,000 mark. Whoo-hoo!!!!
As I mentioned earlier this week, this will be our first time hitting the $1 Million net worth level and it will be short lived. Come November, when we receive our final Florida property values, we expect our net worth to drop by about $200,000.
So, we will enjoy calling ourselves Millionaires for the next few weeks.
As I mentioned earlier this week, this will be our first time hitting the $1 Million net worth level and it will be short lived. Come November, when we receive our final Florida property values, we expect our net worth to drop by about $200,000.
So, we will enjoy calling ourselves Millionaires for the next few weeks.
Monday, October 19, 2009
Getting Close
There is a good chance, unless we have an October surprise in the stock market, that our net worth will hit (for the first time) $1,000,000 some time in the next couple of weeks. Right now, we are about $6,200 away from the $1 Million mark.
But, when we get our final property values for our Florida real estate (we will receive same in November) I expect our net worth to promptly drop at least $200,000 so the fun of saying we are millionaires will be short lived.
But, when we get our final property values for our Florida real estate (we will receive same in November) I expect our net worth to promptly drop at least $200,000 so the fun of saying we are millionaires will be short lived.
Sunday, October 18, 2009
Turtle Pace
(1) Max out 401ks - $33,000
(2) Max out 2009 IRAs - $10,000
(3) House project and furniture - $6,000
(4) Add to baby fund - $5,000
(5) Add to emergency fund - $10,000
Total - $64,000
(1) $25,249 (77%)
(2) $10,000 (100%)
(3) $1,168 (19%)
(4) $995 (20%) ($5,995 in our ING baby account)
(5) $1,246 (12%) ($23,127 in our ING e/r account)
Total - $38,658 (60%)
Our savings pace continues along, that's the good news, at the pace of a turtle, that's the bad news. We have increased Mr. Sam's 401k withholding in an effort to close out the year strong. I am on pace to max out my 401k in the next couple of pay checks (before the end of the year).
(2) Max out 2009 IRAs - $10,000
(3) House project and furniture - $6,000
(4) Add to baby fund - $5,000
(5) Add to emergency fund - $10,000
Total - $64,000
(1) $25,249 (77%)
(2) $10,000 (100%)
(3) $1,168 (19%)
(4) $995 (20%) ($5,995 in our ING baby account)
(5) $1,246 (12%) ($23,127 in our ING e/r account)
Total - $38,658 (60%)
Our savings pace continues along, that's the good news, at the pace of a turtle, that's the bad news. We have increased Mr. Sam's 401k withholding in an effort to close out the year strong. I am on pace to max out my 401k in the next couple of pay checks (before the end of the year).
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