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    2022 Goals

    It's hard to believe that there are only a few months left of 2021, but it will soon be time to plan out goals for the coming year.

    What are everyone's financial goals for next year?

    Personally, I'm still just steadily investing.
    My mortgage is my only debt, and I keep wrestling with what to do with it. I know that the math says to just keep paying it and keep investing, but I just hate having it. I don't know if I want to start paying extra on it or not.

    Brian

    #2
    Originally posted by bjl584 View Post
    My mortgage is my only debt, and I keep wrestling with what to do with it. I know that the math says to just keep paying it and keep investing, but I just hate having it. I don't know if I want to start paying extra on it or not.
    There are two halves to this equation. The mathematical half and the emotional half. And despite my tendency to ignore "feelings" there is some value to it.

    It took me 9 years to pay off my $101,000 mortgage, at 6.5% and then 4% interest when I refinanced at $50,000. I was putting an average of $10,000 extra on the mortgage per year.

    I did not open my IRA until the year after the mortgage was paid.

    It is arguable that I would have been better to have invested $6,000 per year on the IRA even at the front end for a better return. Even more so as the mortgage decreased in value or once I refinanced.

    Over the life of the loan, I think I payed $40,000 in interest total, vs $120,000 I would have paid over the full 30 years. So I do have $80,000 in saved interest.

    Even if you're on the back end of the loan, with just a couple of years to go, and almost no interest, there is a substantial amount of relief from having it paid off.

    If I had it to do all over again, I'd open the IRA on day 1 and contributed some amount to it over the period of paying off the house.

    Comment


      #3
      At this point, our finances are getting to the point that we're basically in a maintenance + steady growth pattern of life.

      Besides keeping the contributions for our retirement accounts & DKs' 529s/UTMAs on track, the only financial goal I currently have defined for 2022 is to have $150k in taxable investments by end of the year. That's honestly probably unreachable, because I expect those investments to be around $70k-$75k by end of 2021, and we're "only" adding $2400/mo to it right now (though I'll probably be able to bump that up at least $200-$300/mo after the new year). So it probably makes more sense to target $150k by 2023, and maybe $110k-$120k in 2022.

      Otherwise, most of our financial goals are looking out to my military retirement in 2028.
      "Praestantia per minutus" ... "Acta non verba"

      Comment


        #4
        I haven't sat down and strategized my 2022 goals yet, but top of mind is crossing the $1M mark in real estate assets and reevaluating my portfolio to maximize cash flow/longer term capital expenditure planning. I'm closing on door #8 today, will be remodeling into the new year and then I feel like I need to just sit down and see where I can add value/maximize profit/minimize taxes in order to be on track for my rat race departure in 5 years. I hadn't planned to buy any more after the duplex I picked up in April but I deal came along I couldn't pass up and I feel in a really good spot but I don't want to sit down and look at the whole portfolio until the newest addition is renovated and rented.

        Comment


          #5
          Originally posted by myrdale View Post


          I did not open my IRA until the year after the mortgage was paid.

          It is arguable that I would have been better to have invested $6,000 per year on the IRA even at the front end for a better return. Even more so as the mortgage decreased in value or once I refinanced.



          If I had it to do all over again, I'd open the IRA on day 1 and contributed some amount to it over the period of paying off the house.
          IRA contributions haven’t been 6k for the last ten years. They increase (slowly) the max you can contribute.

          so you didn’t miss out on contributing 60k

          Comment


            #6
            From an investing perspective, 2022 will be the same as many prior years. Max my 401k including catch up contribution, DW will contribute at 30% rate to her 401k, we will both max Roth IRAs, and we'll contribute to both DS and DD 529s. Will continue to focus on building our short-term reserves (cash accounts) to two years living expenses + a car fund (for me).

            The biggest change will be that I'll plan on dropping down to 4 days/week (32 or 36 hours/week depending on what I negotiate with my company). Since I have to provide a minimum of three months notice, it'll be roughly 1 year from today, when I put in my retirement notice, with a planned exit in (very) early 2023 . At this point, the only thing that would (temporarily) change my timing would be a significant drop in the markets.
            Money is better than poverty, if only for financial reasons

            Comment


              #7
              We are hoping to do a major home expansion / remodel without upsetting the financial apple cart too badly in 2022.
              Have a contractor looking at plans.

              Comment


                #8
                2022 is maintenance on the same plan. That's just fine because it's all good things like bolstering retirement, saving cash, and evaluating new opportunities.

                Comment


                  #9
                  2022 will likely be a big one for us. I will be going part time as of December 1, 2021 and it is very possible I will retire, or at least drop to per diem status, some time in 2022.

                  We may also start shopping for a 2nd home in Florida in the near future. We're actually in Florida right now and after our daughter flies home on Tuesday, we may spend some time driving around and exploring the area and checking out different neighborhoods during the 3-1/2 days we will be here without her.

                  Our investing will change a lot, obviously, even just from me dropping to part time, and tremendously if I retire completely. At that point, we'll have to transition from accumulation to withdrawing from and living off of our portfolio. I'm sure that will take a bit of time to adapt to so I've been building up a cash reserve to help smooth out any bumps in the road as I figure out the best way to create income going forward.
                  Steve

                  * Despite the high cost of living, it remains very popular.
                  * Why should I pay for my daughter's education when she already knows everything?
                  * There are no shortcuts to anywhere worth going.

                  Comment


                    #10
                    We have around $1.6m retirement like to hit $2m by end of 2022. $825k Taxable would like to hit $1m. Big stretch goals considering we aren't saving most of that gain. So we'll see. Realistic is $1.8m retirement, and $900k taxable. Oh and try to see if the new company is worth a lot so we feel better about taking the risk.
                    LivingAlmostLarge Blog

                    Comment


                      #11
                      I hope to get less "cluttered" in 2022.

                      We will be living where we currently live until 2023, and then maybe move to a cheaper / lower cost of living area. We plan to continue saving up for a decent downpayment on a home, hopefully purchased in very late 2023 or very early 2024. Wish us luck!

                      Comment


                        #12
                        Originally posted by kork13 View Post
                        At this point, our finances are getting to the point that we're basically in a maintenance + steady growth pattern of life.

                        Besides keeping the contributions for our retirement accounts & DKs' 529s/UTMAs on track, the only financial goal I currently have defined for 2022 is to have $150k in taxable investments by end of the year. That's honestly probably unreachable, because I expect those investments to be around $70k-$75k by end of 2021, and we're "only" adding $2400/mo to it right now (though I'll probably be able to bump that up at least $200-$300/mo after the new year). So it probably makes more sense to target $150k by 2023, and maybe $110k-$120k in 2022.

                        Otherwise, most of our financial goals are looking out to my military retirement in 2028.
                        Wow!!!

                        BTW, are you back home?

                        Comment


                          #13
                          Originally posted by Scallywag View Post

                          Wow!!!

                          BTW, are you back home?
                          Not quite, but we leave in a few days.... Can't WAIT to finally get home again.
                          "Praestantia per minutus" ... "Acta non verba"

                          Comment


                            #14
                            Work-life balance is my goal for 2022. This will be our first full year of being fully self-employed having been in corporate for years while also growing our own small business. Fortunately, we set ourselves up over the years by saving as much as possible and working a ton to grow our own business these last 7-8 years, so we are in great shape financially. We paid the house off in May of 2021 and have no debt either. College is also fully funded for our two kids that are in 10th and 7th grade. I am spending 2022 figuring out how to actually slow the growth of our small business and find ways to outsource more or even give some up so I can get some time back for myself. The growth is more than we ever dreamed or wanted for our business and I don't see it slowing of I don't actually try, so I am working on learning to say "no" to customers so I can enjoy the fruits of our labor more and not be as stressed. This may actually be the hardest thing I have had to do.

                            Comment


                              #15
                              Always like to review how I did with 2021:

                              Retire with full severance. I can retire without it, and my boss and boss's boss agreed to my package, but you never know.

                              I did that! Retired on 31 Mar with a great severance package.

                              2022 Financial Goals: not sure. Not saving anymore, so the only real lever I have is spending. Inflation has hurt a bit (food and gas). But my pension got a 5.9% boost, so it's a wash. I guess we'll just shoot for staying within the budget.

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