(1) Max out 401k(s) - $22,588 65% (goal is $35,000)
(2) Max out IRA(s) - $11,000 100% (goal is $11,000)
(3) Add to e/r fund - $10,400 104% (goal is $10,000)
(4) Roof project - $5,000 100% (goal is $5,000)
(5) Vehicle replacement - $5,000 100% (goal is $5,000)
(6) House projects - $3,000 100% (goal is $3,000)
Total: $56,988 83% (Goal is $69,000)
So, we saved almost $57,000 in 2014. While a respectable number, we missed our goal by $12,000. Mr. Sam was not eligible for his 401k until midway through the year and that is one of the main reasons that our 401k savings number was reduced in 2014.
We did have some major expenses in 2014 that are not reflected (entirely) in our savings goals. First, a new car for Mr. Sam which was paid in part with cash. Second, a new roof for one of our properties. The roof was a savings goal, but also cost more than what we saved and we could no longer put the project off.
We also incurred some debt in 2014. Mr. Sam's new car was paid in part with cash (about 40%) and the rest is loan. Second, we added to our family in 2014 (which is why I've been away from the blog for so long). We had considerable expenses related to the conception (via IVF) and related to the nursery and birth (most covered by insurance, but a big chunk that was not). We also had a major house project prior to the baby arriving. We are working on paying down the baby debt and it will be part of our 2015 savings/debt killing plan which I am working on creating.
Showing posts with label 2014 Plan. Show all posts
Showing posts with label 2014 Plan. Show all posts
Thursday, March 5, 2015
Monday, August 25, 2014
$2 MM
According to today's update, our assets have snuck over the $2 million dollar mark. While a number is just a number and I recognize that the value of our assets are mostly variable (except for the cash), I always get positive vibes when I hop over one level to the next.
Sunday, July 13, 2014
July Update - 2014 Savings Goals
(1) Max out 401k(s) - $9,436 27% (goal is $35,000)
(2) Max out IRA(s) - $9,343 85% (goal is $11,000)
(3) Add to e/r fund - $5,600 56% (goal is $10,000)
(4) Roof project - $5,000 100% (goal is $5,000)
(5) Vehicle replacement - $5,000 100% (goal is $5,000)
(6) House projects - $200 7% (goal is $3,000)
Total: $34,579 50% (Goal is $69,000)
At present, we are about $3900 behind on our goals.
(2) Max out IRA(s) - $9,343 85% (goal is $11,000)
(3) Add to e/r fund - $5,600 56% (goal is $10,000)
(4) Roof project - $5,000 100% (goal is $5,000)
(5) Vehicle replacement - $5,000 100% (goal is $5,000)
(6) House projects - $200 7% (goal is $3,000)
Total: $34,579 50% (Goal is $69,000)
At present, we are about $3900 behind on our goals.
Monday, June 30, 2014
Truck Update
Big news on the truck front, Mr. Sam is the proud owner of a new truck.
As I shared recently, we were not finding very good prices on used trucks, they were running $12,000 or so for the type of truck we wanted but were 10 years old. As such, after doing a lot of research, we opted for new (as Anon noted, the used car market is tough).
We bought last year's truck (2013) and opted for a low end model. We paid cash for about 40% of the purchase price and the rest was paid via a loan. While I hate having debt of any kind, we will work hard to get it paid off quickly and, in the long run, I think it is a better decision. We have a new truck that is under warranty, it has four doors which gives us greater flexibility (old truck only had two doors), and Mr. Sam is so happy to be out of his old, beat up truck.Anonymous said...we had to replace our truck last year too. After looking for used ones in the 3 - 5 year range and finding not much of a price break off new ones, we went new. Its been awhile since we bought new but the cost justified it this time. I was going to pay cash, like you we hate car loans but the rate was so cheap and a $1000 rebate off the price for financing that we financed about 60% of the cost and paid it off over 6 months and came out way ahead with the rebate vs interest expense. I would have paid off the loan with the first payment but feared they would come back at us for the rebate amount. Our weekdays cars we bought in 2007, both luxury cars that are 2002 and 2004 models, bought as a package deal and plan to drive them for many more years.
Wednesday, June 25, 2014
2014 Savings Goals - June Update
(1) Max out 401k(s) - $8,088 23% (goal is $35,000)
(2) Max out IRA(s) - $8,838 80% (goal is $11,000)
(3) Add to e/r fund - $4,400 44% (goal is $10,000)
(4) Roof project - $5,000 100% (goal is $5,000)
(5) Vehicle replacement - $5,000 100% (goal is $5,000)
(6) House projects - $0 0% (goal is $3,000)
Total: $31,326 45% (Goal is $69,000)
We are having the year of unplanned expenses, and as a result our progress chart has been altered. First, because Mr. Sam needs new/nused truck (and that goal just won't wait anymore) we have cleaned out the house savings account and Mr. Sam's 401k savings account.
Mr. Sam is not currently eligible for his work 401k so we were putting aside cash so when he is eligible (September) he could increase/max out his 401k deductions per paycheck (up to his employer's limit, most employers do not permit a 100% contribution) and we would have cash available to make up for that budgetary shortfall. But, the truck won't wait so since this money was not invested and available we are putting into the truck fund. Hopefully, by the time September rolls around we will be able to manage our budget such that he can still increase his contributions to try and put away as much money as he can.
Second, similarly, our house project fund has also been cleaned out for the truck fund. Our truck fund is $10,000, not the $5,000 listed in our chart.
At present, we are about $3000 behind on our savings goals.
(2) Max out IRA(s) - $8,838 80% (goal is $11,000)
(3) Add to e/r fund - $4,400 44% (goal is $10,000)
(4) Roof project - $5,000 100% (goal is $5,000)
(5) Vehicle replacement - $5,000 100% (goal is $5,000)
(6) House projects - $0 0% (goal is $3,000)
Total: $31,326 45% (Goal is $69,000)
We are having the year of unplanned expenses, and as a result our progress chart has been altered. First, because Mr. Sam needs new/nused truck (and that goal just won't wait anymore) we have cleaned out the house savings account and Mr. Sam's 401k savings account.
Mr. Sam is not currently eligible for his work 401k so we were putting aside cash so when he is eligible (September) he could increase/max out his 401k deductions per paycheck (up to his employer's limit, most employers do not permit a 100% contribution) and we would have cash available to make up for that budgetary shortfall. But, the truck won't wait so since this money was not invested and available we are putting into the truck fund. Hopefully, by the time September rolls around we will be able to manage our budget such that he can still increase his contributions to try and put away as much money as he can.
Second, similarly, our house project fund has also been cleaned out for the truck fund. Our truck fund is $10,000, not the $5,000 listed in our chart.
At present, we are about $3000 behind on our savings goals.
Monday, June 9, 2014
Fleeting Figment
On Saturday I logged into my Fidelity Roth IRA account with the plan to check on and, likely, cancel some open limit orders. Imagine my surprise (and short lived excitement) when the total value for my Roth IRA had jumped upwards by more than a $100,000. I quickly realized that my Apple stock was showing the post 7-1 stock split with the pre-split price.
It seemed odd, to me, that Fidelity would combine the two pieces of data, over the weekend. Better to just leave it as is until Monday and today my short lived wealth has disappeared.
It seemed odd, to me, that Fidelity would combine the two pieces of data, over the weekend. Better to just leave it as is until Monday and today my short lived wealth has disappeared.
Friday, May 30, 2014
2014 Savings Goal - May Update
(1) Max out 401k(s) - $10,139 29% (goal is $35,000)
(2) Max out IRA(s) - $8,835 80% (goal is $11,000)
(3) Add to e/r fund - $4,400 44% (goal is $10,000)
(4) Roof project - $5,000 100% (goal is $5,000)
(5) Vehicle replacement - $5 0% (goal is $5,000)
(6) House projects - $1,100 37% (goal is $3,000)
Total: $29,479 43% (Goal is $69,000)
(2) Max out IRA(s) - $8,835 80% (goal is $11,000)
(3) Add to e/r fund - $4,400 44% (goal is $10,000)
(4) Roof project - $5,000 100% (goal is $5,000)
(5) Vehicle replacement - $5 0% (goal is $5,000)
(6) House projects - $1,100 37% (goal is $3,000)
Total: $29,479 43% (Goal is $69,000)
Can you tell things have been cray-cray for us, no posts in quite some time. But, surprisingly, when I updated our savings chart today we are generally on track for 2014.
The roof project is done, cost more than $5,000 so counting that goal as completed. We are making progress on our house project fund, but even with the roof done, we have several house projects that we need to attend to this year that likely will exceed our savings. Now that the roof project is done, I will switch my auto savings to Mr. Sam's car replacement fund. My car also has been acting up and I'm going to need to invest a couple of thousand into it in the next couple of weeks.
As for 401k, I'm maxing mine out. Mr. Sam will not be eligible for his 401k until September, in the mean time we are putting savings away so he can up his contributions come September. But, we are behind on that goal. We are making good progress on our 2014 IRA savings.
Friday, March 14, 2014
Drum Roll - New Goal
CNN.com reports that the number of millionaires has hit a new high. Which got me thinking, because this survey of millionaires excludes their primary homes in the asset count.
So, the new goal is to hit the million dollar net worth mark without counting our primary home. And, looking at our networthiq.com numbers we are not too far from that mark. At present, our net worth is at $1,380,755 and our primary home's value is listed at $399,000 (value from our last appraisal in 2012). Which means that we are about $18,000 away from having a million dollar net worth without including our primary home.
Not too shabby.
So, the new goal is to hit the million dollar net worth mark without counting our primary home. And, looking at our networthiq.com numbers we are not too far from that mark. At present, our net worth is at $1,380,755 and our primary home's value is listed at $399,000 (value from our last appraisal in 2012). Which means that we are about $18,000 away from having a million dollar net worth without including our primary home.
Not too shabby.
Thursday, February 27, 2014
2014 Savings Goals - Feb. Update
(1) Max out 401k(s) - $4,644 13% (goal is $35,000)
(2) Max out IRA(s) - $4,327 39% (goal is $11,000)
(3) Add to e/r fund - $1,600 16% (goal is $10,000)
(4) Roof project - $1,205 24% (goal is $5,000)
(5) Vehicle replacement - $5 0% (goal is $5,000)
(6) House projects - $400 13% (goal is $3,000)
Total: $12,181 18% (Goal is $69,000)
I finally got my Excel document from Mr. Sam. Yay! We are a bit, $239, ahead on our 2014 goals. I have been swamped at work, hence the lack of posts.
(2) Max out IRA(s) - $4,327 39% (goal is $11,000)
(3) Add to e/r fund - $1,600 16% (goal is $10,000)
(4) Roof project - $1,205 24% (goal is $5,000)
(5) Vehicle replacement - $5 0% (goal is $5,000)
(6) House projects - $400 13% (goal is $3,000)
Total: $12,181 18% (Goal is $69,000)
I finally got my Excel document from Mr. Sam. Yay! We are a bit, $239, ahead on our 2014 goals. I have been swamped at work, hence the lack of posts.
Thursday, January 23, 2014
$300 Rule & $100 Rule
As I have previously posted, I have a long standing goal to have plantation shutters installed in two bedrooms in our home. But, since plantation shutters are very expensive I decided that I would update my plan and just get some new, nice shades for these two bedrooms.
I have done quite a bit of research, measured the windows, priced out my options and then I settled on a plan which will run about $800.
But, in our home there is another step I had to take and that was to discuss the project, the expense, the source of the funds (we have this money sitting in our house project account) with Mr. Sam. We have a rule that anything over $300 has to be discussed and agreed to between us. Most of the time we reach agreement pretty quickly, but not so this time around. I've talked to Mr. Sam about this project several times, gave him the pricing, told him about my research, but he thinks it is silly to spend this kind of money on custom shades. If we can't reach agreement then we don't go forward that is our rule. We imposed this rule back in 2007, because we were trying to throw every extra dollar at our debt. But, we have kept the rule because we believe that we should be in agreement that expenditures above $300 are necessary or a mutual want (vacation) or one of us convinces the other.
We did finally agree or he finally gave in, but we did reach agreement.
The other rule we have is the $100 rule. When we are spending more than a couple of hundred dollars we have to wait a day for each $100 of the purchase. So in this instance, if we are spending $800 on custom blinds we have to wait 8 days before we actually make the purchase. This waiting period prevents expensive impulse purchases.
I haven't yet ordered the blinds because of the waiting period rule, but will do so next week.
I have done quite a bit of research, measured the windows, priced out my options and then I settled on a plan which will run about $800.
But, in our home there is another step I had to take and that was to discuss the project, the expense, the source of the funds (we have this money sitting in our house project account) with Mr. Sam. We have a rule that anything over $300 has to be discussed and agreed to between us. Most of the time we reach agreement pretty quickly, but not so this time around. I've talked to Mr. Sam about this project several times, gave him the pricing, told him about my research, but he thinks it is silly to spend this kind of money on custom shades. If we can't reach agreement then we don't go forward that is our rule. We imposed this rule back in 2007, because we were trying to throw every extra dollar at our debt. But, we have kept the rule because we believe that we should be in agreement that expenditures above $300 are necessary or a mutual want (vacation) or one of us convinces the other.
We did finally agree or he finally gave in, but we did reach agreement.
The other rule we have is the $100 rule. When we are spending more than a couple of hundred dollars we have to wait a day for each $100 of the purchase. So in this instance, if we are spending $800 on custom blinds we have to wait 8 days before we actually make the purchase. This waiting period prevents expensive impulse purchases.
I haven't yet ordered the blinds because of the waiting period rule, but will do so next week.
Monday, January 13, 2014
2014 Savings Goals - First Update
(1) Max out 401k(s) - $1,346 (goal is $35,000)
(2) Max out IRA(s) - $2,825 (goal is $11,000)
(3) Add to e/r fund - $400 (goal is $10,000)
(4) Roof project - $5 (goal is $5,000)
(5) Vehicle replacement - $5 (goal is $5,000)
(6) House projects - $100 (goal is $3,000)
Total: $4,681 (Goal is $69,000)
I don't have my new 2014 Excel spreadsheet set up, so I've not calculated all the percentage complete for the various goals. I did calculate total and I estimate that we are presently ahead on our 2014 goals by about $2,000. I still need to set up auto transfers for the roof and vehicle accounts.
(2) Max out IRA(s) - $2,825 (goal is $11,000)
(3) Add to e/r fund - $400 (goal is $10,000)
(4) Roof project - $5 (goal is $5,000)
(5) Vehicle replacement - $5 (goal is $5,000)
(6) House projects - $100 (goal is $3,000)
Total: $4,681 (Goal is $69,000)
I don't have my new 2014 Excel spreadsheet set up, so I've not calculated all the percentage complete for the various goals. I did calculate total and I estimate that we are presently ahead on our 2014 goals by about $2,000. I still need to set up auto transfers for the roof and vehicle accounts.
Saturday, January 4, 2014
2014 - Additional Goals
Previously I posted our 2014 savings goal numbers, I have a couple of other goals to list as well.
Back in March 2012 I posted about wanting to install plantation shutters in our front, first floor bedroom. Well, almost two years later, we've not made any progress on this goal, although we have accomplished other house projects.
So, for 2014 my goal is to replace the cheap plastic blinds (that have been up since we bought the house almost 10 years ago) in the front bedroom. You will note that I've not renewed the goal to have plantation shutters installed. While that is still a goal, I recognize that plantation shutters are both an expensive and time consuming project. I will, eventually, have plantation shutters installed, but for now my plan is to order blinds to replace the crappy plastic ones.
I've settled on a blind company. But, I have not decided on whether I'm going to order blinds or roman shades, much of that will depend on pricing. Many of our windows that need replacement window treatments are the same size, either as a single window, group of two or group of three. Off the top of my head, I have 6 bedroom windows, 2 study windows, 2 laundry windows). As a result, the blinds that I order now can, at some point, be moved from the front bedroom (after I get my shutters), to the back bedroom, to the study, etc. Said another way, even though I still plan to get shutters the blinds/shades that I plan to order now will not be wasted when I want to upgrade to shutters. Even at $100 a window (a high end budget), $400 in blinds will make me very happy (plus we've saved that money in our house account).
Also on the agenda this year is an office upgrade. We are going to do an Ikea cabinet and bookshelf built in hackplus new paint and our budget is $1000.
Finally, a debt goal. At present our debt load is @$538,000. I would like to get our debt below $500,000 in 2014. I have no idea if that is a reasonable goal or not. I've got to do some number crunching since we did not include any additional mortgage prepayment in our 2014 goals.
Back in March 2012 I posted about wanting to install plantation shutters in our front, first floor bedroom. Well, almost two years later, we've not made any progress on this goal, although we have accomplished other house projects.
So, for 2014 my goal is to replace the cheap plastic blinds (that have been up since we bought the house almost 10 years ago) in the front bedroom. You will note that I've not renewed the goal to have plantation shutters installed. While that is still a goal, I recognize that plantation shutters are both an expensive and time consuming project. I will, eventually, have plantation shutters installed, but for now my plan is to order blinds to replace the crappy plastic ones.
I've settled on a blind company. But, I have not decided on whether I'm going to order blinds or roman shades, much of that will depend on pricing. Many of our windows that need replacement window treatments are the same size, either as a single window, group of two or group of three. Off the top of my head, I have 6 bedroom windows, 2 study windows, 2 laundry windows). As a result, the blinds that I order now can, at some point, be moved from the front bedroom (after I get my shutters), to the back bedroom, to the study, etc. Said another way, even though I still plan to get shutters the blinds/shades that I plan to order now will not be wasted when I want to upgrade to shutters. Even at $100 a window (a high end budget), $400 in blinds will make me very happy (plus we've saved that money in our house account).
Also on the agenda this year is an office upgrade. We are going to do an Ikea cabinet and bookshelf built in hackplus new paint and our budget is $1000.
Finally, a debt goal. At present our debt load is @$538,000. I would like to get our debt below $500,000 in 2014. I have no idea if that is a reasonable goal or not. I've got to do some number crunching since we did not include any additional mortgage prepayment in our 2014 goals.
Friday, January 3, 2014
Sam's Plan for Killing Debt in 2014 - Step # 1
It is the new year and many people want to get their financial house in order. This my guidance on killing debt and gaining control of your finances.
Step # 1 - face the music.
This is actually one of the hardest steps of paying off your debt, you (along with your spouse/partner) need to gather up your statements and figure out how much you owe. Look at your credit card statement, student loan statement, car loan information, other loans, etc. Find the statements or go online and determine your balance, interest rate, regular payment, term for each loan (I would exclude the mortgage for now).
Create a documents, whatever format works best for you, with each debt listed, the interest rate, the term, and the monthly payment, along with the due date. We used an Excel spread sheet when we started our debt killing journey in 2007.
Create a documents, whatever format works best for you, with each debt listed, the interest rate, the term, and the monthly payment, along with the due date. We used an Excel spread sheet when we started our debt killing journey in 2007.
Wednesday, January 1, 2014
New Years Resolutions
I am a big fan of new years resolutions, goal planning, goal tracking, etc. I've started to put together my list of resolutions for 2014 and I'm up to 12 so far and none of those resolutions relate to finances. Eight of my draft resolutions relate to health and fitness.
I learned back in psychology that it takes 4 weeks to develop a new habit. Indeed, one of the reasons rehab is 28 days is based on the 4 week new habit model. Today, I read an article over on today.com that it actually takes closer to 66 days to establish a new habit.
So, if today is day 1 of a new behavior, stick with it for a couple of months and it should become an actual habit.
Here is to a happy, healthy and prosperous 2014.
I learned back in psychology that it takes 4 weeks to develop a new habit. Indeed, one of the reasons rehab is 28 days is based on the 4 week new habit model. Today, I read an article over on today.com that it actually takes closer to 66 days to establish a new habit.
So, if today is day 1 of a new behavior, stick with it for a couple of months and it should become an actual habit.
Here is to a happy, healthy and prosperous 2014.
Monday, December 30, 2013
2014 Planning - Third Time is the Charm
So, for the third time we are going to plan/try to save $69,000, maybe 2014 will be the year we hit this number. Now that we have our 2014 total goal number, we have been working on planning.
Some goals are pretty easy to establish.
First, tax advantaged retirement savings. I will max out my 401k savings, $17,500, in 2014. We both will max our our non-deductible IRAs for 2014, so that is $5,500 each or $11,000. We will save $17,500 for Mr. Sam in 2014, that money will be after tax until he is eligible for his 401k in September. Then we will max out what he can contribute from 9/1/2014 until 12/31/2014 which Mr. Sam thinks will be about $12,000. So, the monthly savings we do for Mr. Sam's 401k between 1/1/2014 and 9/1/2014 will be used to supplement income for the last quarter when he is putting the bulk of his paycheck into his 401k. Then, the amount that is left over will be put into our trading account. While Mr. Sam will not be able to save as much in 401k savings, we will make sure to save at least the same amount in our non-tax advantaged trading account.
(1) Max out 401ks (goal is $35,000)
(2) Max out IRAs (goal is $11,000)
As for our IRAs, we have already saved $1800 towards our 2014 goal.
Second, other savings goals. I probably will maintain the monthly savings already set up which means we would put another $10,000 into our emergency savings in 2014. I like having money go towards e/r savings. With our various real estate properties, a health emergency fund makes me happy. For similar reasons, I probably will keep the $200 a month that goes towards our house account. With an old house, there are always repairs or projects (last year I imagined plantation shutters, but that project got put off). This year, we are also likely looking at a roof repair or roof improvement on our carriage house. Accordingly, I am putting $5,000 into roof project savings. If the roof project costs less, then we will put that money towards mortgage principal prepayment.
(3) Emergency account (goal is $10,000)
(4) Roof fund (goal is $5,000)
(5) House fund (goal is $3,000)
Third, Mr. Sam is going to need a replacement vehicle within the next couple of years. So, the last goal for 2014 is car replacement fund (goal is $5,000)
(6) Car replacement fund (goal is $5,000).
How about you, what are your financial plans and goals for 2014?
Some goals are pretty easy to establish.
First, tax advantaged retirement savings. I will max out my 401k savings, $17,500, in 2014. We both will max our our non-deductible IRAs for 2014, so that is $5,500 each or $11,000. We will save $17,500 for Mr. Sam in 2014, that money will be after tax until he is eligible for his 401k in September. Then we will max out what he can contribute from 9/1/2014 until 12/31/2014 which Mr. Sam thinks will be about $12,000. So, the monthly savings we do for Mr. Sam's 401k between 1/1/2014 and 9/1/2014 will be used to supplement income for the last quarter when he is putting the bulk of his paycheck into his 401k. Then, the amount that is left over will be put into our trading account. While Mr. Sam will not be able to save as much in 401k savings, we will make sure to save at least the same amount in our non-tax advantaged trading account.
(1) Max out 401ks (goal is $35,000)
(2) Max out IRAs (goal is $11,000)
As for our IRAs, we have already saved $1800 towards our 2014 goal.
Second, other savings goals. I probably will maintain the monthly savings already set up which means we would put another $10,000 into our emergency savings in 2014. I like having money go towards e/r savings. With our various real estate properties, a health emergency fund makes me happy. For similar reasons, I probably will keep the $200 a month that goes towards our house account. With an old house, there are always repairs or projects (last year I imagined plantation shutters, but that project got put off). This year, we are also likely looking at a roof repair or roof improvement on our carriage house. Accordingly, I am putting $5,000 into roof project savings. If the roof project costs less, then we will put that money towards mortgage principal prepayment.
(3) Emergency account (goal is $10,000)
(4) Roof fund (goal is $5,000)
(5) House fund (goal is $3,000)
Third, Mr. Sam is going to need a replacement vehicle within the next couple of years. So, the last goal for 2014 is car replacement fund (goal is $5,000)
(6) Car replacement fund (goal is $5,000).
How about you, what are your financial plans and goals for 2014?
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.
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.
Tuesday, October 15, 2013
2013 IRA
Today, I funded my 2013 IRA, $5,500 into my traditional, non-deductible IRA. Once the transfer from my Wells Fargo account to my Fidelity traditional IRA clears, I will immediately convert the traditional IRA to a Roth IRA. Since 2010, the income limits for Roth IRAs were removed by the Federal government, but one still has to contribute to a traditional and then convert to a Roth. On Fidelity, it is easy to do. I convert the funds immediately, while it is still in cash, as I don't want to incur any gains that I have to pay taxes on prior to conversion.
Thereafter, my plan is to watch the markets this week which have been down and up due to the government shut down and the debt ceiling debate. I don't normally try to time the market, but if the Dow dips below 15,000 again this week I will make some investments. For our IRAs, we invest in individual stocks, i.e. Apple or Ford, etc. I like to use the expert preset strategies to find well rated stocks that are on sale.
Additionally, I have set up our 2014 IRA savings account over at CapitalOne 360 (formerly known as ING)
Thereafter, my plan is to watch the markets this week which have been down and up due to the government shut down and the debt ceiling debate. I don't normally try to time the market, but if the Dow dips below 15,000 again this week I will make some investments. For our IRAs, we invest in individual stocks, i.e. Apple or Ford, etc. I like to use the expert preset strategies to find well rated stocks that are on sale.
Additionally, I have set up our 2014 IRA savings account over at CapitalOne 360 (formerly known as ING)
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