(1) Max out 401k(s) - $29,695 (85%) (goal is $35,000)
(2) Max out IRA(s) - $11,000 (100%) (goal is $11,000) completed
(3) Add to e/r fund - $10,800 (108%) (goal is $10,000) completed
(4) Pay down mortgage - $5,000 (100%) (goal is $5,000) completed
(5) Trading account fund - $5,000 (100%) (goal is $5,000) completed
(6) House projects - $3,200 (107%) (goal is $3,000) completed
Total: $64,695 (94%)
Final report shows a deficit of $4,305 in our 2013 savings. But, as noted before, we exceeded our 2012 savings total of $62,446 and exceeded our 2011 savings total of $60,060. And, we did so even with Mr. Sam's layoff in July.
Additionally, when you add in Mr. Sam's 401k match of $3,501 (from prior employer) and my !surprise! 401k match of $5,000, our total savings in 2014 exceeds $73,000. That is a lot of money, and therefore we can't be disappointed in our efforts, our discipline, and our progress.
Happy New Year!
*Edited to reflect 12/30/14 auto transfers to emergency fund and house project account.
Tuesday, December 31, 2013
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?
Monday, December 23, 2013
NetWorth - Retirement Investment Progress
So, at almost the end of 2013 we have just over $800,000 in total retirement investment accounts which is mostly due to the performance of the market. $200,000 more and our investments will be evenly divided between real estate and retirement accounts.
Friday, December 20, 2013
Holiday Cheer - 401K Match
For the first time in my corporate career, this year I received a 401K match. My employer contributed "profit sharing" in the amount of $5,500.
That was a surprise and certainly welcome holiday cheer at the end of somewhat tough financial year for us (with Mr. Sam's layoff).
Thursday, December 19, 2013
Stock Sale - Update
Back in October I posted about my hot stock dilemma and trying to figure out when and how to plan my stock sales (since I'm more of a buy and hold gal). In particular I had a stock that was up 500% since I purchased it and I was trying to figure out if I should sell it or not.
I ended up selling the stock and making $4300 in profit (tax free since I hold my stock in my Roth IRA) but I did have regrets, what if the stock kept going up and up? So I decided to calendar a two month follow up (which is today) to check and see the status of the stock I sold. I sold the stock at $32, it has hit $34, but today it is at $28.
So, how do I feel. I feel pleased, right now it looks like I made a good decision. I sold close to the peak based on expert research telling me to sell and that research seems to have been correct. We shall see, I will check again next year.
I ended up selling the stock and making $4300 in profit (tax free since I hold my stock in my Roth IRA) but I did have regrets, what if the stock kept going up and up? So I decided to calendar a two month follow up (which is today) to check and see the status of the stock I sold. I sold the stock at $32, it has hit $34, but today it is at $28.
So, how do I feel. I feel pleased, right now it looks like I made a good decision. I sold close to the peak based on expert research telling me to sell and that research seems to have been correct. We shall see, I will check again next year.
Tuesday, December 17, 2013
2013 Goals - Progress Has Exceeded 2012
(1) Max out 401k(s) - $28,327 (80%) (goal is $35,000)
(2) Max out IRA(s) - $11,000 (100%) (goal is $11,000) completed
(3) Add to e/r fund - $10,400 (104%) (goal is $10,000) completed
(4) Pay down mortgage - $5,000 (100%) (goal is $5,000) completed
(5) Trading account fund - $5,000 (100%) (goal is $5,000) completed
(6) House projects - $3,100 (103%) (goal is $3,000) completed
Total: $62,827 (91%)
Because I have contributions to our emergency and house fund on automatic transfer, those contributions continued even though we completed those goals. As a result, our total has nudged past our 2012 total of $62,446. Of course, we are going to fall short on our 2013 goals due, in large part, to Mr. Sam's layoff. But, I am happy that we have at least completed 5 out of 6 goals and that we have saved more this year than last year.
Hopefully in 2014, we will save more than in 2013. And sticking with that theme, I've already put away $800 into our 2014 IRA savings account.
(2) Max out IRA(s) - $11,000 (100%) (goal is $11,000) completed
(3) Add to e/r fund - $10,400 (104%) (goal is $10,000) completed
(4) Pay down mortgage - $5,000 (100%) (goal is $5,000) completed
(5) Trading account fund - $5,000 (100%) (goal is $5,000) completed
(6) House projects - $3,100 (103%) (goal is $3,000) completed
Total: $62,827 (91%)
Because I have contributions to our emergency and house fund on automatic transfer, those contributions continued even though we completed those goals. As a result, our total has nudged past our 2012 total of $62,446. Of course, we are going to fall short on our 2013 goals due, in large part, to Mr. Sam's layoff. But, I am happy that we have at least completed 5 out of 6 goals and that we have saved more this year than last year.
Hopefully in 2014, we will save more than in 2013. And sticking with that theme, I've already put away $800 into our 2014 IRA savings account.
Monday, December 16, 2013
Another Budget Proposal
In my humble opinion, if you have a budget, a spending plan or some other written system for managing your personal finances you are way ahead of most people. Having a plan and working that plan, whether it is an envelope system, an Excel spreadsheet, an allowance system, etc. will help you kill debt, save more and have better control over your money.
We work off a spending plan/allowance system, but even though we have a plan that works for us I still am interested in reading proposed plans by the experts.
Mitchell Weiss via NBCnews.com suggests the 25% plan (25% for taxes, 25% for housing, 25% for debt and 25% for living expenses). I think his advice of planning your budget before locking in expenses is a good one. If you are going to limit housing expenses to 25% of your before tax income, then you need to know that number before you buy a house or rent an apartment. And limiting big expenses is a great way to free up income to kill debt or save money.
But, the rest of the advice fell flat for me. First, I was surprised that he would include payroll taxes in the budget plan. It is true you need to pay attention to taxes, but I think most budget plans and advice just utilize after tax income which to me seems easier. I guess if you are an independent contractor or you run your own business this advice makes more sense since you will be responsible for taxes.
25% of pretax income for housing seems reasonable, most guidance provides for limiting housing expenses to no more than a third of after tax income.
I thought the debt advice was lame. Sure, limit your debt obligations to 25% of your gross monthly income, but that ignores a whole variety of issues. Maybe your budget should be set up to put more towards debt if you are trying to kill debt, etc. And since this advice seems geared towards recent graduates it ignores the topic of student loans all together.
Finally, the last 25% of the formula is for living expenses. But, living expenses is supposed to also include savings for an emergency fund. Nothing in the post mentions retirement savings, so I would assume that long term savings is also supposed to come out of the last 25%. I prefer a budget plan that prioritizes savings rather than lumping it together with living expenses.
We work off a spending plan/allowance system, but even though we have a plan that works for us I still am interested in reading proposed plans by the experts.
Mitchell Weiss via NBCnews.com suggests the 25% plan (25% for taxes, 25% for housing, 25% for debt and 25% for living expenses). I think his advice of planning your budget before locking in expenses is a good one. If you are going to limit housing expenses to 25% of your before tax income, then you need to know that number before you buy a house or rent an apartment. And limiting big expenses is a great way to free up income to kill debt or save money.
But, the rest of the advice fell flat for me. First, I was surprised that he would include payroll taxes in the budget plan. It is true you need to pay attention to taxes, but I think most budget plans and advice just utilize after tax income which to me seems easier. I guess if you are an independent contractor or you run your own business this advice makes more sense since you will be responsible for taxes.
25% of pretax income for housing seems reasonable, most guidance provides for limiting housing expenses to no more than a third of after tax income.
I thought the debt advice was lame. Sure, limit your debt obligations to 25% of your gross monthly income, but that ignores a whole variety of issues. Maybe your budget should be set up to put more towards debt if you are trying to kill debt, etc. And since this advice seems geared towards recent graduates it ignores the topic of student loans all together.
Finally, the last 25% of the formula is for living expenses. But, living expenses is supposed to also include savings for an emergency fund. Nothing in the post mentions retirement savings, so I would assume that long term savings is also supposed to come out of the last 25%. I prefer a budget plan that prioritizes savings rather than lumping it together with living expenses.
Saturday, December 14, 2013
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