2016 summary of finances

[Nutria]

The Roth ladder is a much easier way to access your 401k money before the age of 59.5 than the rule of 72

Rule 72(t) is just slightly different from the rule of 72.

[phantom]

I'm a little late to this party, having just finished updating Gnucash yesterday. But, I'm happy to report that our net worth is up 30% this year, thanks largely to a large bonus I received last January and to a lesser extent raises my husband and I got by switching jobs. In the notable milestones department, our net worth is finally over half a million and the retirement accounts in my name finally add up to 6 digits.

Also notable is that 2016 was the first time we've ever maxed out all of our retirement accounts and we're planning on doing it again in 2017 even though we're not expecting another large bonus.

My one regret in 2016 was that I didn't keep a closer eye on our finances, often letting Gnucash fall months out of date. But, luckily, it looks like our financial habits are well enough engrained that we didn't suddenly turn wasteful or really let our lifestyle inflate. Still, I plan on doing a better job of staying on top of things in 2017.

[Goldy]

The Roth ladder is a much easier way to access your 401k money before the age of 59.5 than the rule of 72

[rennigade]

Yes I am aware of 72t and yes it is strict. Also...you can more easily access money from a roth ira...which isnt recommended either.

[Nutria]

that was a quick search; different article than your link. I think this is what I was thinking of:

rule 72(t) which allows you to withdraw from your 401(k) penalty free before age 59.5 is only for "substantially equal periodic payments"

I don't know the details and I'm sure there are strict criteria and exceptions.

I just googled "§72(t)(2)(A)(v)".

[Jluke]

This?

https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-tax-on-early-distributions

Separation from Service
the employee separates from service during or after the year the employee reaches age 55 (age 50 for public safety employees of a state, or political subdivision of a state, in a governmental defined benefit plan)

that was a quick search; different article than your link. I think this is what I was thinking of:

rule 72(t) which allows you to withdraw from your 401(k) penalty free before age 59.5 is only for "substantially equal periodic payments"

I don't know the details and I'm sure there are strict criteria and exceptions.

[Nutria]

Not 100% true...

"Did you realize that there is a provision within the Internal Revenue Code that allows you to start taking distributions from your 401(k) plan before you reach age 59½? This little-known section of the code, §72(t)(2)(A)(v) to be exact, can be a real dandy if you happen to fit the requirements."

This?

https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-tax-on-early-distributions

Separation from Service
the employee separates from service during or after the year the employee reaches age 55 (age 50 for public safety employees of a state, or political subdivision of a state, in a governmental defined benefit plan)

[Jluke]

But Storm...you wont be able to touch that money until 59.5. Have you thought about selling it all, taking massive penalties then and dumping it in real estate so you're not a slave to the system? lol

Not 100% true...

"Did you realize that there is a provision within the Internal Revenue Code that allows you to start taking distributions from your 401(k) plan before you reach age 59½? This little-known section of the code, §72(t)(2)(A)(v) to be exact, can be a real dandy if you happen to fit the requirements."

[StormRichards]

But Storm...you wont be able to touch that money until 59.5. Have you thought about selling it all, taking massive penalties then and dumping it in real estate so you're not a slave to the system? lol

lol

Nope, it is too late for that. I already suffer from Stockholm syndrome

[rennigade]

I crunched our data and our Net Worth increased $115,844 with our home completely excluded from the calculation. All but about $3k was an increase in our retirement accounts with the rest in savings.

But Storm...you wont be able to touch that money until 59.5. Have you thought about selling it all, taking massive penalties then and dumping it in real estate so you're not a slave to the system? lol

[terri77]

Savings (retirement & cash) increased by $80k.

Paid off $3k in mortgage loan, $3k in student loans, and $3k on car loan.

[Goldy]

Dec 2015 - $958,149
Dec 2016 - $1,229,319 Increase of $271k

We had a great year relocating to a LCOL area, selling the house for 50k more than expected, and crossed the two comma mark. This is the first time our NW has increased more than our salary and I suspect it will really start to snowball now.

[StormRichards]

I crunched our data and our Net Worth increased $115,844 with our home completely excluded from the calculation. All but about $3k was an increase in our retirement accounts with the rest in savings.

[LivingAlmostLarge]

Increased our networth by $41k. Extremely happy considering that we only started having income in August. In 2015 we had a negative net worth of $54k. Not bad since we moved and stopped having income in August as well. A year. We are down overall $120k NW with our move from a peak in June 2015 and December 2016 but I'm pretty happy with everything and some of it was due to losing in the stock market, moving and closing costs on sale of a home.

My goal this 2017 will be the same old same old. Save 401k and IRA Maximum and ESA for 2 kids. So $18k, $11k, $4k. Ideally I'd like to save $110k and increase our net worth by $150k stretch goal. We'll see how things shake out.

[Nutria]

I thought I added the to the end of that.

The meaning doesn't always translate...

WOW....even now with the invent of computers, you STILL believe history cannot repeat itself? Those are some darn thick sunglasses

If the feds fail to prop up the FDIC, then the country's in such bad shape that $20k of 2017 dollars in the safe won't help much.

I need to move but our 25 yr old son won't consider it. He's all we have

That makes me sad. Very, very sad.