2022 Personal Finance - What Action Steps Have You Taken?

[scfr]

The last step of the insurance switch was finalized a couple days ago when I completed the defensive/mature driver course and sent our certificates to the insurance agent.

Put in the I-bonds buy order today, scheduled to execute 5/23. Anyone wanting to buy in May, don't forget about the Memorial Day holiday --- think about putting the order in early next week.

Opened a new bank account to earn a bit more interest.

Discussed next steps with DH: 1) Looked at upcoming variable expenses (esp 2nd estimated tax payment due 6/15) and made sure we have enough in our primary bank account to cover them. 2) Some of his "stock trading fun money" is sitting in a MMF settlement account and we're going to look into whether he can invest that in a brokered CD. He's adamant that he won't buy any more stocks "ever" (he's the emotional investor in the family) but at least he's not panic-selling. 3) And we may cash out some joint taxable investments and move to a MYGA. We're just mulling that one over.

On it goes.

[disneysteve]

we may cash out some joint taxable investments and move to a MYGA. We're just mulling that one over.

I've read up on MYGAs but can't say I totally understand them or the risks involved. I know the penalty to get out of one early is pretty steep. They are paying somewhat better than bonds which makes sense since they are much less liquid. I'm not sure how to assess if that added return is worth it. It looks like right now we could get a 5-yr MYGA for 3.75%, but can get a 5-yr brokered CD for 3.2% or a 5-yr government agency bond for 3.63% (which may have tax advantages). That spread doesn't seem big enough to mess with the annuity but again, I'm not well-versed on them.

[amarowsky]

my 2022 changes = put more investment into durable capitol assets , and reduce some investment into securities. (I was too equity heavy.... I wanted more durable difficult to aquire assets, that create value in other ways).

I'm still heavy in the market. my trust in the market is waning at a slow and consistent rate...... I feel better having more invested in land/buildings/durable tools so they'll either gain equitable value through time, or continue to earn money through my lease contracts & unique opportunities that present themselves.

[kyliemack]

At the beginning of 2022, I decided to invest all my accumulated money in my small business. I want to start selling different types of coffee, but I do not give up my main job as a software developer because this is my constant earnings and a big one. It turns out that I will have at least two jobs, and therefore this year, my income should grow noticeably. I want to save up some money this year and invest next year in cryptocurrencies and stocks. It is also possible that I will invest money in real estate because I see that real estate prices are only growing every year, which means this is a promising investment.

[Nutria]

Just put in the order for another $10K I-Bond, set for purchase on 28 Jan.

Buy ten $1,000 bonds. It's easy to do, and means you don't have to cash out the whole $10,000 just for a couple of thousand dollars.

[kork13]

Buy ten $1,000 bonds. It's easy to do, and means you don't have to cash out the whole $10,000 just for a couple of thousand dollars.

You can actually redeem I-bonds for almost any amount. The only rules are that you must cash out at least $25, and must leave at least $25 remaining in the I-bond. Otherwise, you can redeem any amount in $0.01 increments at any time after your 12-month waiting period has expired.

What all that means is that one can safely buy a single I-bond for the full $10k -- it'll simplify your account, and if/when you need to pull money from it, you can redeem only the amount you need while leaving the rest to continue growing.

[LivingAlmostLarge]

The real problem is that once it's in i bonds i find myself reluctant to cash it out and use it as a EF like it's meant to be

[scfr]

Prepped the 5500-EZ for DH's solo 401k.

Next up: The 6-year plan restatement. That will be a first, so it will be a bit stressful for me.

[Jluke]

Thinking about moving next years school taxes to a 12M CD with 1.5% rate (CapitalOne)

I thought there was a five year rule too for i bonds where you lose the previous 3 months of interest if removed early

[disneysteve]

I thought there was a five year rule too for i bonds where you lose the previous 3 months of interest if removed early

You do, but with the interest rate close to 10%, even with that penalty, you'd still end up with way more than from anything else you could have done with that money.

[scfr]

3rd quarter estimated taxes paid.

[crazyliblady]

Hi, everyone. I was doing pretty well up until September 2nd. I was actually around $500 away from 3 months of expenses in emergency savings. Then, on September 2nd, I was in a car accident, which was not my fault. I should get the payout on my totalled car soon, so I will get a car to replace the damaged one, but part of my emergency savings and car savings will also be needed to replace it. The cost of used cars is up quite a bit since I last bought one in 2019. I am using a lawyer to also get all of my medical paid and will recoup the funds eventually, but that will take awhile. In the meantime, my emergency savings is gutted. Color me not happy, but at least I have the funds in place and don't have to go into debt to buy a car.

[disneysteve]

Hi, everyone. I was doing pretty well up until September 2nd. I was actually around $500 away from 3 months of expenses in emergency savings. Then, on September 2nd, I was in a car accident, which was not my fault. I should get the payout on my totalled car soon, so I will get a car to replace the damaged one, but part of my emergency savings and car savings will also be needed to replace it. The cost of used cars is up quite a bit since I last bought one in 2019. I am using a lawyer to also get all of my medical paid and will recoup the funds eventually, but that will take awhile. In the meantime, my emergency savings is gutted. Color me not happy, but at least I have the funds in place and don't have to go into debt to buy a car.

Sorry to hear about the accident. I hope you weren't hurt much. Cars are replaceable.

[crazyliblady]

Sorry to hear about the accident. I hope you weren't hurt much. Cars are replaceable.

Thank you, Steve! I do feel very lucky to have not been badly injured. I have a lot of bruises and the need to see the chiropractor for the next 8 weeks, but I am doing very well.

[scfr]

I prepared our 9-30-22 NW statement over the weekend. I know I have lots of company when I say it wasn't fun.
NW down 2% for the quarter, financial assets down 5.7%. We are still OK, still over our "number" and thank goodness still working, but the cushion is thinner.

I crawled in bed early with a good book. That turned out to be a wise choice!

Focusing on what I can control (which alas is not the financial markets), today I opened another short-term CD (3.55% for 9mo at NASA FCU) and deployed a small amount that was sitting in my settlement fund at Vanguard.

My next financial task is looking at changing our primary bank checking & savings accounts.

Onward . . .