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Hi there and a little history :)

September 17th, 2014 at 02:27 pm

We have been doing some things right for a while and some things wrong. So I go from here trying to make a good retirement plan. We started getting serious about this retirement thing kind of late in life!

~ We still expect to pay another $37,000 for the child in college.

~ Tech training is all paid now for our other child lives at home so some savings there!

~ We expect to earn $61,000 -$63,000 this year

~ We no debt so that is a big plus!!

~ My spouse is contributing 20% to his plan at work.

~ I maxed out both our IRA's with $ that was in cash.

_ If hubby stays at the current job the next 13 years he should have a pension of $2,200. However we know things can change. Fingers crossed! Too much of retirement working out hinges on this.

According to the calc I used we should be more than on track with the pension and social security. I just don't have full faith where these are concerned.

I'm going to include a snip of our financials:

Some of what shows as cash is the $37,000 earmarked for the kiddo finishing college and the emergency fund.

My goal is to keep converting over time amounts that are in cash into investments. This goes slowly, as my spouse is comfortable with it. I'm not pushing much.

Our income is lower than it used to be and saving much besides what is going into investments is a BIG challenge now. I am going to be doing by best too reduce expenses so I can comfortably bump up the 401K % a bit more. That is game plan 1!

In all likely hood this may be a very boring blog Smile

14 Responses to “Hi there and a little history :)”

  1. Petunia 100 Says:

    Boring? With all of these numbers? Surely you jest. Smile
    Welcome to SA. Best of luck to you with your goals.

  2. alice4now Says:

    Oh come now, this is SA, budgets are never boring!

  3. creditcardfree Says:

    Welcome to SA!

  4. Bright Says:

    Thanks for the welcome! Wow, people I may not boring with numbers and pinching pennies! Yeah!!!

  5. Bob B. Says:

    Welcome, looks like you're doing fine.

  6. Kiki Says:


  7. Bright Says:

    Thanks so much again for the welcome!

  8. doingitallwrong Says:

    Welcome! I think you're doing quite well, actually. Smile If I may ask, why so much cash? (I know the $37K for college, but that's still $208K that's probably losing value to inflation....)

  9. snafu Says:

    Welcome to SA where we all have suggestions for you to consider to make your money work harder for you. I suggest reviewing current holding to know what DH holds in his employer 401K, it's management cost/fees and how much silently moves from his a/c . How do those holding mesh with current IRA holdings? What percentage are current contributions to maximum allowed?

    Coincidently, we're trying to make some kind of retirement plan trying to imagine what we would like to do, where we'd like to live, how to cope with our ghastly winter weather...the lifestyle choices. Except for the points in time we've had visitors here, I re-configured spending categories over summer to reflect imagined spending as a senior. It was a hilarious experiment, I will need to spend more! Right now I don't have time to shop or go to Wednesday theatre matinees lol.

    If you'd like to work on eking out more money from net income for investment, you would need to list spending categories and sums needed to fulfil obligations.

  10. Bright Says:

    Doingitallwrong~ Your right the $37k is college and another $40K is the emergency fund. The rest is sitting because my spouse is very comfy in cash. $18k of the cash is a rewards account that get 2.55% monthly. The rest is in an online bank at.8%

    Snafu~ Thanks for the reply. The cost associated with the 401K are quite low and on par with out Vanguard accounts. I'm not sure what you mean by " how much silently mover from his A/C". Is a/c account??? He contributes 20%. I think the max is 35% . I did get some by the hour advice from a pro recently and did get help tweaking the investments and doing a little planning. We were to heavy in bonds and didnt have enough international. I learned a lot in those 2 hours.

    I budget with YNAB and have for years. I can see a few areas to tweak.I will have to blog a list. We also decided to forgo this winters vacation and invested what we had put away for it. We also have ghastly winter weather. Yuck! I know I will not be retiring here!

    Sounds like a fun experiment you did! I have done that kind of stuff on the unions website a few times. I also found on those scenarios we will spend more. For one I'd like to be a nomad Smile

    I appreciate the advice Smile

  11. rob62521 Says:

    A lot of folks wish they had such good numbers as these...you have money in savings and investments and no debt! Keep up the good work and welcome to SA!

  12. Bright Says:

    Thank you Rob!

  13. snafu Says:

    Hi, hope pro advisor demonstrated that savings instruments fail to keep u with inflation, food costs alone have risen 4%. We are warned insurance will zoom 4% - 8% due to a string of other people's disasters for example. Delighted you know the costs & fees associated with various retirement accounts as so many are unaware. While contemporaries are enjoying 'empty nest' I seem to be struggling with loss felt since DSs completed their Master degrees and are establishing themselves in careers. I want to hear about the best/worst part of how their day went and have thus far resisted the urge to phone.

  14. Bright Says:

    Snafu, yes the pro did. However being married 21 years very happily I am slowly moving cash to keep my better half comfy with the idea. Actually the advisor recommended I do it over 12 to 18 months. I moved $20k to investments plus the max for the IRA for both of us this year. He gave me access to some very neat software with millions of variables to play with. I had hubby sit down and do it with me too see what different scenarios do. It did help him see a bit of the light Smile
    I'm going to be truthful. I only know of the fees with the union accounts because I took it all to the pro and made phone calls to the company from his office. We found we have the option of "self directed" for many of the same funds for a lower fee. I knew Vanguard did. When I set up Vanguard and told them what we were planning to move over time they sent me to a concierge gal. She was super patient and helped so much.

    I think your empty nest difference is very sweet! Of course one still wants to be a part of their kids daily lives. Your just a loving parent Smile Congrats to the kids for getting their masters!!

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