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    2020 Financial Goals?

    Has anyone worked out their 2020 financial goals?

    Here are mine:

    Buy a house. (First, DH & I have to figure out how much house we want, and how much is a reasonable amount to spend, at this stage in our lives. It hasn't been an easy exercise.)

    Rework budget after buying house.

    Do new wills (for our new state of residence). Update Letter of Instructions.

    Continue to contribute max allowed to 401k's.

    Research and consider opening an account at Fidelity (in addition to current accounts at Vanguard).

    Maybe buy a 2nd car.




    #2
    I don't really have any particular goals other than the usual stuff. Max out the 401k. Continue to put money in savings. Keep spending under control.

    I might go car shopping in 2020 but haven't definitely decided yet.

    Our financial life is actually quite boring at this point in our lives.
    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.

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      #3
      2019 was epic for us. Paid off the house and have $1M in retirement savings. I think 2020 will be boring for us as well. Max 401k pretax, catchup and aftertax. $7k x 2 to IRA and then Roth convert that. Bonus and pension into taxable savings. Live off my base pay only.

      I think our biggest goal will be to pretend we are retired and live within the budget. We had some overages in our clothes and food budgets that I would like to avoid in 2020. Nothing crazy, but I think knowing we have a paycheck makes us less vigilant. If we want to retire in 2022, we have to demonstrate we can live within this budget which I think is ridiculously generous:





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        #4
        Originally posted by corn18 View Post
        2019 was epic for us. Paid off the house and have $1M in retirement savings. I think 2020 will be boring for us as well. Max 401k pretax, catchup and aftertax. $7k x 2 to IRA and then Roth convert that. Bonus and pension into taxable savings. Live off my base pay only.

        Outstanding Corn, thats great work, low expenses and secure retirement. Good for you sir!
        james.c.hendrickson@gmail.com
        202.468.6043

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          #5
          Originally posted by corn18 View Post
          I think 2020 will be boring for us as well.
          Sometimes boring is good. This is one of those times.
          Nothing crazy, but I think knowing we have a paycheck makes us less vigilant.
          I hear you. As I've shared before, my income doubled over the past 2 years. That has definitely made us somewhat less vigilant about our spending. Nothing crazy, like you said, but we have loosened the purse strings a bit thanks to the added income. We also paid off the house in 2019 which further boosted our disposable income. We boosted our savings, too, but not by as much as we could have. So maybe that is a goal for 2020 - to tighten things up just a bit and get back on some more frugal spending habits.
          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


            #6
            I haven't spent as much time charting out 2020 as I have in past years. I have some big expenses coming up on my rental properties in the spring (prob around $50k between a new roof and new 3 story deck/emergency escape) so its been a whole lot of save and not a lot of spend. That said, I've also been wallowing a bit about the fact that my only baby is growing up and my time with her is limited. We've taken a great trip the last couple years and we'll do one or two this year. Likely NW Cali in April and somewhere TBD in the summer or fall. Headed to central america for 8 days in January with the BF. Travel is always our splurge and being able to make it work in the budget is a priority financial goal to be sure we're enjoying the now as much as we're planning for the future.

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              #7
              I have been so narrowly focused on 2019 and completing 2019 Roth conversions that I have not been looking out too much beyond that. While I track our income throughout the year, I wanted to do another run through on Turbotax and state income tax to make sure we have enough withholding. Last year, I was blindsided by my state taxes (owed about 400) so I wanted to make sure that didn't happen again.

              After the dust settles, I am going to have to revise my Roth Conversion Plan to update the new 72.5 RMD age plus I imagine the new law changes the distribution tables.

              After I get that all done (which I imagine the new distributions tables will not be available right away) I am going to have to give our future Roth Conversions some more thought in view of the 10 year stretch for non-spousal beneficiaries of retirement accounts. DH will go on Medicare in 2020 and I will go on Medicare in 2021. If we exceed certain MAGI income bands (for which they do a 2 year look back), we will pay more in part B Medicare premiums. I will have to weigh the increase in Medicare part B premiums against the potential benefit to converting to Roth. That will all go into our goals for 2020.

              It looks like DH will be working for a few months in 2020, so I will get to contribute to a spousal IRA for 1 more year.

              DH also has another transition from one 401k plan to another. His company was bought out by another company--(it has been a phased transition for the past 1.5 years). He was on his old company's 401k last year which was great--they allowed after tax contributions, but the fun is over--the new 401k plan does not allow it. It's just as well, he will only be working part of the year and I don't think he will max out his contributions. This is part of the strategic planning I must do. Keep the $$ in cash for expenses for the rest of the year (when DH is retired) or try to squeeze more dollars into a Roth.

              Then, the age old question--when should DH claim SS. He has come this far, he might as well wait 'til FRA (which is sometime in 2021). Or... should he wait 'til 70.... (Well, something to think about in 2021).

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                #8
                I guess the rough outlook:
                - Continue the "normal stuff," saving aggressively (~40%+ gross) toward our long-term goals -- max TSP & Roth IRAs, slowly fund DKs' 529s ($150/mo & $130/mo) & UTMAs ($30/mo), keep our rental house occupied/producing income, and so on.
                - We're moving in April, just don't know for sure where yet (new opportunity recently came up, waiting on word if it'll go through). But either way, we want to sell our current home quickly (NLT August), and net $110k-$120k.
                - Once we move, we have $150k ready as a DP, and we want to pay off the next house ASAP -- either as soon as the current house sells, or otherwise within ~3 years.
                - After the house is paid off, start saving toward the next rental house.
                - Selling DW's car before we move, and we'll want to buy her a new (larger) one, in cash....because....
                - We're going to try toward having another baby next year. DW has wanted another child for over a year, but I've been hesitant... Now that our 2 boys are a little older (+potty trained), and DW is healthier, I'm more comfortable with going for #3. (and if that's not partly a financial decision, I think we're all deluding ourselves)
                - I should re-look at my will & such, and finally update my nearly 10-y/o letter of instruction to go with it.

                Not sure what else... There's other goals in the mix (like getting my wife into a DPT program), and maybe some other financial ones I haven't thought about yet. DW & I need to sit down (on the phone, I suppose) and figure out what else we're shooting for next year.
                "Praestantia per minutus" ... "Acta non verba"

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                  #9
                  I bought some vacant land last year (with electricity and water already on it). The note will rollover into the new year at $65,488. My goal (which admittedly is contingent upon the sale of a travel trailer for an influx of cash), is to have it paid off by the end of 2020. It's lofty, fer sure.

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                    #10
                    401K: 19,500
                    Roth: 6k
                    extra mortgage: 2k

                    pretty standard. Not sure what else. Probably some taxable investing and giving some dollars to my wife’s Roth
                    Last edited by Jluke; 12-21-2019, 02:41 PM.

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                      #11
                      Originally posted by corn18 View Post
                      2019 was epic for us. Paid off the house and have $1M in retirement savings. I think 2020 will be boring for us as well. Max 401k pretax, catchup and aftertax. $7k x 2 to IRA and then Roth convert that. Bonus and pension into taxable savings. Live off my base pay only.

                      I think our biggest goal will be to pretend we are retired and live within the budget. We had some overages in our clothes and food budgets that I would like to avoid in 2020. Nothing crazy, but I think knowing we have a paycheck makes us less vigilant. If we want to retire in 2022, we have to demonstrate we can live within this budget which I think is ridiculously generous:




                      yes that is a very generous budget i have to say...is that a house morg? and why are your animals so expensive each month...do they they go to doggy daycare?

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                        #12
                        Well we are in no financial position like most of you here so ours will be to get our ICE acct back to $2000, save for a newer car and start saving a house deposit....need a lot for a house deposit here...so will take a couple years

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                          #13
                          I'm still working on my goals

                          Saving and debt repayment are still on my list.
                          But, I've been contemplating a career change.
                          So, that could be a major one if I go for it.
                          Brian

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                            #14
                            Originally posted by mumof2 View Post

                            yes that is a very generous budget i have to say...is that a house morg? and why are your animals so expensive each month...do they they go to doggy daycare?
                            House: $12,000 / year property tax, $371 / year HOA, $2,000 / year maintenance, $6000 / year stuff

                            Pets: 2 cats, 1 dog. 1 cat is diabetic, all are on prescription food and meds. No day care. If I didn't love them so much, I would leave the back door open.

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                              #15
                              My financial goal for 2020 is to spend 60% of my income on wine, women and song. The other 40% I'll just squander.

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