Financial goals for 2023

[terri77]

It’s the same plan every year, though the last few years I have been able to increase my savings outside of retirement accounts. Max Roth IRA & TSP. Save monthly in my brokerage & savings accounts. No major expenses expected, though I have been thinking about another round of LASIK. I may possibly move back to my hometown so there would be moving expenses.

[scfr]

My goals are pretty boring and mostly the same old same old.
But one fun goal is to earn points via credit card bonuses to cover hotel nights for a trip we're planning to Ireland in 2024. DH will be working on airline miles.

[riverwed070707]

My financial goals for 2023:

I was in a car accident in September and am still waiting on the outcome of the lawsuit from that. The financial blast from the accident meant that even with the car insurance payout on my old car, that I had to empty most of two savings accounts in order to purchase a replacement used car. So, my first financial goal after the lawsuit is settled is to replace my savings with funds from the lawsuit.

Second, I have a small balance on a credit card, so I will be paying it off.

Third, I will be opening a Roth IRA. I called my retirement account company to ask about the process. I can open an account for a minimum deposit of $100. I can make deposits by mail or by automatic deposit, but I prefer to make deposits by mail.

Lawsuit meaning you sued or just that you're waiting for the final settlement from insurance?
Curious because I had an accident in January and haven't settled yet. I received regular treatment for 10 months after the accident but haven't settled with the at-fault party's insurance yet because I still have pain sometimes and I'm contemplating consulting with a lawyer about when the right time to settle is.

[riverwed070707]

There are some big questions about my income for 2023. Currently in the 4th round of interviews for a job that pays 2.5x what I'm making now, not including benefits which I currently don't have. Trying not to hold my breath - if I don't get the job, I'll stay in the position I'm in now for a while so its hard to set financial goals not knowing if you'll be making $50k or $130k.

That said, I have 2. The first was on my list last year but I didn't achieve it which was to become a millionaire. I think it will happen pretty quickly when the market rebounds but who knows when that will happen! The second is loosely financial related and its to automate my finances and bookkeeping. I've had this arrangement since I cut down to part time work where everything money related is manual because I needed to keep a closer eye and I didn't have a set amount coming in each week so I maxed my roth in lump sum, my charitable contributions were sporadic, my saving was manual and only when a big transaction happened like selling or refinancing a property. I have a good enough grasp now on my new income that I should be able to set some regular savings toward specific goals, invest regularly, pay bills, etc without needing to monitor it so closely. Overall just want to get more organized and back into some old efficiency habits.

[crazyliblady]

Lawsuit meaning you sued or just that you're waiting for the final settlement from insurance?
Curious because I had an accident in January and haven't settled yet. I received regular treatment for 10 months after the accident but haven't settled with the at-fault party's insurance yet because I still have pain sometimes and I'm contemplating consulting with a lawyer about when the right time to settle is.

Good luck with your lawsuit. It sounds like your medical issues were much more lengthy, and I am so sorry for that. I hope yours does get settled soon so that you can move forward with your life.

My earlier statement means I have been working with a lawyer since the accident to gather all the information. With all the medical bills and such, I have to pay them somehow myself with my HSA, cash, or health insurance. After that, the lawyer will present a demand to the responsible party. Even though it happened in September, my health insurance has still not been billed yet. I won't pay my portion until they do. Go figure.

[kork13]

We'll be moving again with the military next summer, though I'm still awaiting word on where my next assignment will be. The details of that assignment will drive alot of what happens next year.

The autopilot stuff remains:
- Max 2x Roth IRAs & 1x Roth TSP retirement accounts.
- Continue building our 3 kids' 529s per our plan (around $5300 next year).

Additional financial goals include:
- Build up $175k in taxable investments by Dec'23. (Currently ~$135k -- we're not going to hit this year's goal of $150k... We also had to pause & reduce our contributions due to some increased expenses).
- Use 40+ days of leave NLT Dec'23 (I need to burn down an excess).
- Sell primary house next summer for $350k+, possibly buy next home in cash (if buying makes sense).
- Build up $1.25M in invested assets by Dec'23, not including primary home. (Currently ~$1.1M).

We might not quite achieve all of this, it really just depends on how the various markets do.

I just finished my semi-annual financial review, and followed up on my 2022 EOY post in the other thread... so I figured I'd follow up here as well. Some immediate thoughts looking forward into 2023:

1) I never ended up doing any TLH on our taxable stock losses (up to $26k in ST/LT losses if I did so today), but perhaps I'll do that at some point soon.... Future me problems to figure out, when it's less chaotic on the home/work front (I leave for a 5-month temp assignment later this week).
2) While pulling my account balances, I also put an order in to purchase another $10k in I-Bonds for this year -- $5k end of Jan, $5k end of May. I'm assuming Fed rates will continue to rise throughout 2023, so I decided to break up the purchases rather than dump it all in at once.
3) Likewise, I rebalanced our retirements accounts, as their AA's have swung pretty heavily (as much as 9% off). Not sure if I'm surprised or not, but it was actually the bonds & small-cap stocks that were low, while large-cap stocks were high.
4) We invested roughly $125k in new money, out of roughly $200k in gross income... So a savings rate above 60% is pretty sweet! That definitely allows us plenty of breathing room, and although we're probably shooting a little lower this year with some new & increased expenses, we should probably be able to manage at least 50%. The increases are partly from inflation (my pay next year is only going up 5.8%, while inflation has been >7%), and we somewhat recently started compensating my SIL to effectively be an in-home nanny to help DW with our kids while I'm gone so much, both in 2022 & 2023... TBD if she'll agree to move to our next assignment with us, though she'd be a huge help if she did -- location desirability will probably be the determining factor.
5) I'll be getting promoted in July this year, which will boost my income by roughly 5%.

[kork13]

Good luck with your lawsuit. It sounds like your medical issues were much more lengthy, and I am so sorry for that. I hope yours does get settled soon so that you can move forward with your life.

My earlier statement means I have been working with a lawyer since the accident to gather all the information. With all the medical bills and such, I have to pay them somehow myself with my HSA, cash, or health insurance. After that, the lawyer will present a demand to the responsible party. Even though it happened in September, my health insurance has still not been billed yet. I won't pay my portion until they do. Go figure.

We're actually trying to wrap up a claim from 2019 right now... DW & DS's have had a lot of continuing care, so we're working to negotiate the final settlement right now. We could easily have gotten lawyers, but doing so was a challenge because the accident happened across the country, requiring the lawyers to be from that state... and none of them that we contacted were very responsive. Ultimately (after payment of existing medical bills), we may end up with a check anywhere from $10k (their low-ball initial settlement offer) to around $40k (our counter, knowing that there will be some ongoing care required...gratefully, most of it will be covered by my insurance in full). Obviously not what we could have gotten if we'd have had lawyers (likely $100k-$150k or more), but circumstances haven't accommodated that route.

By way of advice... I'd say that if you're questioning whether to get lawyers involved, get the lawyers. Or at least get a couple consults for them to look at your case. Note that they'll typically take 33% of any settlement, so account for that in your assessment. But if there is extensive medical care required, or if your job/income have been impacted, lawyers will be able to negotiate a favorable settlement far more effectively than you probably will. When are lawyers not required? When there's no injury, or only minor injuries that resolve within a few weeks or with just a few medical appointments. In those cases, settle the bills, get a replacement car, and move on.

[crazyliblady]

We're actually trying to wrap up a claim from 2019 right now... DW & DS's have had a lot of continuing care, so we're working to negotiate the final settlement right now. We could easily have gotten lawyers, but doing so was a challenge because the accident happened across the country, requiring the lawyers to be from that state... and none of them that we contacted were very responsive. Ultimately (after payment of existing medical bills), we may end up with a check anywhere from $10k (their low-ball initial settlement offer) to around $40k (our counter, knowing that there will be some ongoing care required...gratefully, most of it will be covered by my insurance in full). Obviously not what we could have gotten if we'd have had lawyers (likely $100k-$150k or more), but circumstances haven't accommodated that route.

By way of advice... I'd say that if you're questioning whether to get lawyers involved, get the lawyers. Or at least get a couple consults for them to look at your case. Note that they'll typically take 33% of any settlement, so account for that in your assessment. But if there is extensive medical care required, or if your job/income have been impacted, lawyers will be able to negotiate a favorable settlement far more effectively than you probably will. When are lawyers not required? When there's no injury, or only minor injuries that resolve within a few weeks or with just a few medical appointments. In those cases, settle the bills, get a replacement car, and move on.

Thank you. I have been working with a lawyer since September just after the accident.

[kork13]

We'll be moving again with the military next summer, though I'm still awaiting word on where my next assignment will be. The details of that assignment will drive alot of what happens next year.

So today I got notification of my next assignment .... and it DEFINITELY changes the game for us for the next few years (I'm anticipating at least the next 4 years overseas).

Great news: We're moving to Japan this summer!! We're very excited.
Less great news: Moving to Japan means we will definitely be "renting" our next house. So when we sell our current home, all of those proceeds will most likely get invested in the market, since we won't have any other pressing need for it.
Good news: If the markets stay somewhat depressed through the summer, we'd be putting $300k+ in the market at a relatively low point ... with the potential for accelerated gains in the future.
Bad news: Our income will drop by ~$33k/yr. I've been receiving a housing stipend the last few years, and because we own our current home outright, it's gone straight to our investments. Because the military provides on-base housing at no cost to us, we'll receive no housing stipend.
More great news: In addition to the promotion I'll get in July, I've been selected for the #2 leadership role in the unit I'll be joining. It opens up alot of career possibilities for me, all of which are far beyond what I've ever expected or planned toward.

I've been stationed in Japan once before, and I grew up in Guam... So I'm thrilled to be going back to the Pacific. This time with my family! It's going to be alot of fun, albeit very busy & demanding for me professionally.

[disneysteve]

That’s great kork. Sounds like a great adventure. Does your promotion offset the loss of the housing stipend or are you already accounting for that?

[kork13]

That’s great kork. Sounds like a great adventure. Does your promotion offset the loss of the housing stipend or are you already accounting for that?

Ah, good point. I actually forgot to account for the upcoming promotion. I also discovered that I can't do math, and rather than "$33k income drop" I should have said "$23k" ... But including the promotion, it's actually going to be $18k/yr lower. Not nearly as bad, but certainly still a hit. Of course, I'm paid fairly well overall, so there's really no valid complaint. It just reduces what I can send to investments every month.

[LivingAlmostLarge]

That sounds amazing kork. How long are you there for? You're probably ahead living on base depending on where the base is in japan