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2020 Financial Goals?

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    #61
    Originally posted by scfr
    How is everyone else doing on their goals? Have the pandemic and current state of the economy caused you to change your plans?
    Originally posted by disneysteve View Post
    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.
    I didn't have much in the way of goals. I am maxing my 401k. As of last paycheck, I've contributed $13,341 so I'm just past the halfway point as of 5/16.

    Keeping spending under control has turned out to be far easier than expected thanks to COVID. Year to date, our monthly spending is averaging $5,545 compared to 2019 when we averaged $6,657.

    I have started car shopping but haven't found anything yet. All reports suggest that the used car supply should be increasing significantly in the coming months. I'm in no rush and willing to wait for the right vehicle to come along.
    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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      #62
      Latest update: hopefully keep my job for the rest of the year, and continue studying part time. Savings goals are staying the same around 30% of gross income unless something major happens.
      "I'd buy that for a dollar!"

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        #63
        Originally posted by kork13 View Post
        [Summarized for brevity]
        - 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, .... we want to sell our current home quickly (NLT August), and net $110k-$120k.
        - .... we want to pay off the next house ASAP
        - 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.
        - We're going to try toward having another baby next year.
        - I should re-look at my will & such, and finally update my nearly 10-y/o letter of instruction to go with it.
        Well, this year has been a roller coaster (obviously), and very little of our plans have remained the same...
        ​ - To start with, we decided to pull back on our retirement investing (from ~20% gross to 15%) to build up more taxable investments.
        - We actually ended up moving in late May vs. April. House is under contract, closing planned for ~19 Jun, and expecting to net ~$125k.
        - We're looking at houses in Idaho (from AZ), and contemplating buying one small enough to pay cash upfront, which is a bit thrilling. All told, we can probably pull together up to $280k cash for the next house. There's a couple options in the $260k-$270k range (in a totally different area than we planned) that could work for us, so we're gonna sit down soon & really talk through what we want to do.
        - One thing that actually happened as planned! We sold DW's car, and bought her a newer, larger one here in AZ.
        - No luck yet with DW getting pregnant.
        - Also haven't really looked at our wills & such yet, that's probably getting deferred until we're settled down in Idaho.
        "Praestantia per minutus" ... "Acta non verba"

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          #64
          Kork,
          Are you fixin to retire? Is Idaho where you will retire or do you have another PCS move again (after your move to AZ)?

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            #65
            Originally posted by Like2Plan View Post
            Kork,
            Are you fixin to retire? Is Idaho where you will retire or do you have another PCS move again (after your move to AZ)?
            Not for another 8 years. We probably have 1-2 more PCS moves after Idaho before I can retire. Here in AZ just for a couple months of training before going to to Idaho.

            When it actually comes time to retire from the military (or maybe after our second careers), the goal is to live in AK for half of the year, and somewhere here in the mountain-west for the rest.... Flagstaff, Denver/C-Springs corridor, Reno, possibly somewhere in Utah (just can't live too close to DW's family).... Something like that. All still just dreams, but we're trying to get in a financial position to make it reality.
            Last edited by kork13; 05-31-2020, 06:11 AM.
            "Praestantia per minutus" ... "Acta non verba"

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              #66
              Originally posted by Like2Plan View Post
              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).
              Covid-19 turned my whole plan upside down!
              The first major thing is that almost all of our travel plans for the future have been put on hold... I've already done a whole lot of cancelling. I'm still not sure if any of the remaining trips are remotely practical for 2 folks of retirement age in the covid 19 era. Honestly, in the scheme of things the travel cancellations seems trivial. But, one thing I think about is--my Mom is pretty healthy, but she is going to be 88 this year and lives on the west coast (I live on the east coast)-- I saw her this past December (actually should have been there with her this week if our travel had not been cancelled). I don't know when I will get to see her again. (Here's more hoping for a vaccine).

              So, after getting our wings clipped DH came to the conclusion that there was no point in retiring while we can't go anywhere. Soooooo. I have had to redo my tax plan for 2020 taxes and I have to go back and re plan the Roth conversions. We can't do any more conversions this year if DH continues to work. Also, I had to switch his 401k contributions from Roth to pre-tax. Then, I have to see how the tax withholding shakes out with these new parameters. We are both going to be stuck with paying pretty high part b medicare premiums until DH retires--but, there is nothing to be done about that.

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                #67
                Well this year has been interesting. DH kept saying he wouldn't move. Now we are building an office shed asap. And we are on the hunt for a new year, thinking we'll be buying next summer/fall. Mostly because with the Covid and situation the need for a true office in our house is urgent and bigger than before.
                LivingAlmostLarge Blog

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                  #68
                  Well, this year has been a total sh$$ show. My wife didn't work for almost 2 months due to Covid .

                  Still maxing out 401k for the both of us. Was expecting her income to grow 10-15% this year while mine remains at a snail pace growth of inflation. That is now out the window since she is forced to reduce pt count and hours. So now I am projecting that she makes 60% of last year so savings for the year is most likely going to be between 100-120k+60k retirement.

                  Oh well, at least my investments are currently doing better than expected. Just hit 2.3 million net worth in retirement and investments (no house). If the stars align and covid doesn't strike again, hopefully 3 mil by year end.

                  Comment


                    #69
                    Originally posted by Singuy View Post
                    Well, this year has been a total sh$$ show. My wife didn't work for almost 2 months due to Covid .

                    Still maxing out 401k for the both of us. Was expecting her income to grow 10-15% this year while mine remains at a snail pace growth of inflation. That is now out the window since she is forced to reduce pt count and hours. So now I am projecting that she makes 60% of last year so savings for the year is most likely going to be between 100-120k+60k retirement.

                    Oh well, at least my investments are currently doing better than expected. Just hit 2.3 million net worth in retirement and investments (no house). If the stars align and covid doesn't strike again, hopefully 3 mil by year end.
                    Sorry about your wife's situation. Private medical practices have been hit hard by COVID and obviously her job isn't one that could be shifted to telemedicine.

                    Great job on the investments, though. At least there's been that bright spot. We just got to $1.4 million ourselves. If there isn't another crash, I hope to be over $1.5 by the end of the year.
                    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

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