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Old 05-12-2015, 01:37 PM   #21
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So, something pretty cool happened last month. I track our NW as it grows each month, and when I was closing out April, I realized that we have already raced past our NW growth for the entire year of 2014!

It's really amazing how much this thing can really snowball.
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Old 05-12-2015, 02:08 PM   #22
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This warms my heart. Good on you guys!
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Old 05-12-2015, 04:05 PM   #23
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Ah the magic of compounding and a few good market years.


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Old 05-13-2015, 11:30 AM   #24
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Originally Posted by Standard Staples View Post
So, something pretty cool happened last month. I track our NW as it grows each month, and when I was closing out April, I realized that we have already raced past our NW growth for the entire year of 2014!

It's really amazing how much this thing can really snowball.
Ok, so you're finally where you should have been last year??

Sorry, couldn't help myself I'm sure the run up in the market in Q1 and Q2 have put you above your 2015 target...
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Old 05-13-2015, 05:50 PM   #25
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Ok, so you're finally where you should have been last year??

Sorry, couldn't help myself I'm sure the run up in the market in Q1 and Q2 have put you above your 2015 target...
Huh? I was saying that our NW grew ~$88K throughout the entirety of 2014. Now only 4 months in to 2015, we have already grown our NW more than $88K, passing our 2014 results.

To your point, we actually are closing in on the end of 2015 target I had set in January, which is even crazier.
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Old 05-14-2015, 11:32 AM   #26
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Thanks for the clarification and congrats.
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Old 07-27-2015, 09:42 AM   #27
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Time for a mid-year update, as of the end of June:

Here's where I was at the start of 2015 and where I am now:

================================================== =============

$165,000 Annual Combined Income – Tracking closer to $171,000

$66,000 Roth - $72,000 (+6,000)
$52,000 Taxable Brokerage - $60,800 (+$8,800)
$43,000 Rollover IRA - $40,200 (-$2,800)
$64,000 401k (Combined) - $83,000 (+$19,000)
$14,600 IRA/Roth IRA (College Savings) - $20,000 (+$5,400)
$18,000 Cash/HSA - $20,000 (+$2,000)

Primary Residence: $218,500 Debt ($131,500 Equity) - $213,500 Debt ($147,500 Equity)
Rental Property: $141,000 Debt (-$35,000 Equity) - Still generating $250/month in profit. - $139,000 Debt (-$8,000 Equity) ~$300/month profit through June

NET WORTH: ~$354,100 – ~$435,500 (+$81,400)

2014 Annual Expenses: $57,600 – 2015 tracking at $57,604.40 (kind of crazy to be that similar)
2014 Annual Savings: $71,850 – 2015 tracking at $82,794.04

================================================== =============

Here’s how I'm tracking with my 2015 goals:

$40,000 401k (including Company Matches) – $20,935.46 – Off Track - Need to ramp up my wife's 401k to meet
$20,000 Brokerage – $7,500 – Off Track - Diverting money to tax advantaged accounts first
$10,000 House Principal Payoff – $5,097.36 – On Track
$8,000 Reinvested Dividends – $3,785.29 – On Track - 2nd Half of the Year is going to push me well in excess of $9,000
$5,500 Roth – $5,500 – DONE EARLY
$3,600 IRA – $3,200 – On Track - Includes $1,900 for 2014 adders
$3,600 HSA – $1,800 – On Track
$0 Secondary Roth - NEW GOAL - $1,905 - On Track

$90,700 TOTAL – My current estimate for this total is closer to $81,000, with the drop in Brokerage adders. I’ll do my best to ramp this number up as the year closes out, working to get both 401k accounts maxed out for the year.

================================================== =============

I am pleased to announce the baby plans have thus far worked out as planned, and we are expecting our second child in February of next year! For now, we are still planning for my wife to continue working, as the income is strong, and we have been really pleased with my son’s progress at daycare. It’s not cheap, but his growth in speech, motor skills, social skills, etc. has been well worth the cost, and we want our second to have the same experiences. I feel very good about 2015, so far, and I’m looking forward to the rest of the year.
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Old 07-27-2015, 09:45 AM   #28
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I really like the use of colors in tracking changes to your net value!
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Old 07-27-2015, 08:57 PM   #29
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Congrats on the progress. It must give you some extra peace to have a solid financial plan as you prepare to welcome a second child.
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Old 09-22-2015, 03:50 PM   #30
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It's been a couple months, but there are a few notable updates. First, we found out we are having a baby GIRL. It will be a new experience, but we think it's really cool we'll have one of each. To help with the second child coming along, my boss called out of the blue last week and gave me a $10K/year raise, just to show their appreciation of my efforts and that they want to see me grow and be promoted within the company. I was stunned, since I hadn't even hinted at asking for a raise. Feels good to be looked after by a solid boss.

The market has been off lately, but with a long horizon, I don't mind. My net worth hasn't continued it's rapid upward ascent, but it's still up a bit, and it's a very good buying opportunity. Here's where I am:

Time for a mid-year update, as of the end of June:

Here's where I was at the middle of 2015 and where I am now:

================================================== =============

$171,000 Annual Combined Income – Now tracking closer to $178,000

$72,000 Roth - $67,300 (-$4,700)
$60,800 Taxable Brokerage - $59,500 (-$1,300)
$40,200 Rollover IRA - $39,200 (-$1,000)
$83,000 401k (Combined) - $89,300 (+$6,300)
$20,000 IRA/Roth IRA (College Savings) - $21,300 (+$1,300)
$20,000 Cash/HSA - $18,000 (-$2,000)

Primary Residence: $213,500 Debt ($147,500 Equity) - $211,500 Debt ($158,300 Equity)
Rental Property: $139,000 Debt (-$8,000 Equity) - Still generating $250/month in profit. - $138,000 Debt (-$2,000 Equity) ~$450/month profit through September

NET WORTH: ~$435,500 - ~$450,900 (+$15,400)

2014 Annual Expenses: $57,600 – 2015 now tracking down to $57,000
2014 Annual Savings: $71,850 – 2015 now tracking up to $87,350

================================================== =============

Here’s how I'm tracking with my 2015 goals:

$40,000 401k (including Company Matches) – $29,240 – On Track - Will exceed $42,000
$20,000 Brokerage – $8,350 – Off Track - Still diverting money to tax advantaged accounts first
$10,000 House Principal Payoff – $6,850 – Slightly Off Track
$8,000 Reinvested Dividends – $6,580 – On Track - 2nd Half of the Year is going to push me well in excess of $9,000
$5,500 Roth – $5,500 – DONE EARLY
$3,600 IRA – $3,600 – DONE EARLY - Includes $1,900 for 2014 adders
$3,600 HSA – $2,200 – On Track
$0 Secondary Roth - NEW GOAL - $3,000 - DONE EARLY

$90,700 TOTAL – My current estimate for this total is now up to $86,500, with the drop in Brokerage adders. I’ll do my best to ramp this number up as the year closes out.

================================================== =============
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Old 09-22-2015, 04:11 PM   #31
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Quote:
Originally Posted by Standard Staples View Post
2014 Annual Expenses: $57,600 – 2015 now tracking down to $57,000
2014 Annual Savings: $71,850 – 2015 now tracking up to $87,350
Something to ponder: you are saving 60% of your income.

If you can push that up even further to 66% you'll effectively be saving two years worth of expenses every year you work!

You might think you have a long way to go but at this rate you may even be fully financial independent by 40.
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Old 09-22-2015, 06:47 PM   #32
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my boss called out of the blue last week and gave me a $10K/year raise, just to show their appreciation of my efforts and that they want to see me grow and be promoted within the company.
You're posting from an alternate universe, aren't you?
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Old 09-22-2015, 08:09 PM   #33
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You're posting from an alternate universe, aren't you?
No kidding. I think my jaw literally dropped. I had no response other than to stammer out a thank you. I was actually playing in a charity golf tournament one of our vendors hosted at the time, and we talked at the turn. It was pretty difficult to keep my focus on the back 9 after that call.

Funny part is, he had texted me with "Call me when you have a couple minutes in private." Naturally, my glass half empty side started thinking "Uh oh, what did I do or forget to do? Guess I'm fired now."
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Old 09-22-2015, 08:13 PM   #34
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Something to ponder: you are saving 60% of your income.

If you can push that up even further to 66% you'll effectively be saving two years worth of expenses every year you work!

You might think you have a long way to go but at this rate you may even be fully financial independent by 40.
Good call, and thanks for chiming in. I'm always trying to find gaps in the budget. I started the year forecasting a 48-50% savings rate and have slowly pushed it up to 60%. If we could reach our goals by 40, that would truly be amazing.
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Old 01-10-2016, 09:32 PM   #35
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The end of another year has come, and it's time for an update! I'm really happy with how we did. Overall income was up about 20%, thanks to a generous raise, healthy bonus, reliable renters and growing dividends. The market fluctuated quite a bit, but my two properties gained significant equity, helping to offset some of the unrealized market losses. In terms of net worth, we almost managed to both enter and exit the 400K club in the same year, and I'm optimistic that through growth and contributions, we can race toward the 600K mark by the end of 2016.

Here's how the end of 2015 looked, when compared with the end of 2014:

================================================== =============

$155,000 Annual Combined Income - $187,000

$66,000 Roth - $63,500
$52,000 Taxable Brokerage - $65,000
$43,000 Rollover IRA - $39,100
$64,000 401k (Combined) - $104,700
$14,600 IRA/Roth IRA (College Savings) - $22,400
$18,000 Cash/HSA - $18,000

Primary Residence: $218,500 Debt ($131,500 Equity) - $209,500 Debt ($180,000 Equity)
Rental Property: $141,000 Debt (-$35,000 Equity) - $138,400 Debt (-$3,400 Equity)

NET WORTH END 2014: ~$354,100
NET WORTH END 2015: ~$489,300

2014 Annual Expenses: $57,600
2015 Annual Expenses: $57,300

2014 Annual Savings: $71,850
2015 Annual Savings: $90,120


2015 Annual Savings Rate: ~61%

================================================== ======

2015 Goals

$40,000 401k (including Company Matches) - DONE - $42,228.27
$20,000 Brokerage - NOT DONE - $9,850.00
$10,000 House Principal Payoff - NOT DONE - $9,011.18
$8,000 Reinvested Dividends - DONE - $11,911.90
$5,500 Roth - DONE
$3,600 IRA - DONE - $4,400 ($1,900 for 2014)
NEW GOAL $3,000 Roth - DONE
$3,600 HSA - DONE__________________________
$90,700 TOTAL - $89,501.35 TOTAL

I feel great about the goals, having only missed the total investment marker by ~$1,200.

================================================== ======

2016 Notes & Goals

2016 is going to be a bit tougher, primarily due to expenses related to an upcoming birth (hence the jump in HSA contributions) and the second child daycare expense starting in May. I'm maxing out my $5,000 dependent care FSA, and I only wish it was $5,000 per child. We crushed the savings rate in 2015, but I just don't see us coming close to matching it this year. I think I can push us in to the low-50's, but 60% seems out of reach. I don't see housing equity growing at the same clip as 2015, so my net worth goal is pretty conservative, allowing for a relatively flat year. With that being said, here are my estimates/goals for 2016:

Annual Combined Income: $190,000
Annual Expenses: $73,300
Annual Savings: $60,000
Annual Savings Rate: 45%
Net Worth: $575,000

$41,500 401k (including Company Matches)
$0 Brokerage - (Big Change - Focusing on minimizing tax burden first. Excess money will filter to this account)
$6,400 House Principal Payoff
$9,500 Reinvested Dividends
$5,500 Roth
$3,600 IRA
$1,900 Roth
$6,850 HSA__________________________
$75,250 TOTAL

Here's to 2016! Thanks for following along.
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Old 01-11-2016, 01:47 PM   #36
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Congrats on your progress (and on the upcoming birth!). Thanks for the update.
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Old 07-07-2016, 09:21 AM   #37
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We've reached mid-2016, so here's an update, reflected against my stated goals:

================================================== ======

Annual Combined Income: $190,000
  • Tracking at $205,000 (Annual Bonus, Mileage/Meal Reimbursements, Two COL raises contributed to the increase)
Annual Expenses: $73,300
  • Tracking at $70,000
Annual Savings: $60,000
  • Tracking at $80,000
Annual Savings Rate: 45%
  • Tracking at 53%
Net Worth: $575,000
  • Currently at $615,000
================================================== ======

$41,500 401k (including Company Matches)
  • Tracking at $44,600
$0 Brokerage - (Big Change - Focusing on minimizing tax burden first. Excess money will filter to this account)
  • $1,350. No plans to add more.
$6,400 House Principal Payoff
  • Tracking at $7,400. No plans to add any additional principal in the future. Shifting mindset a bit.
$9,500 Reinvested Dividends
  • Tracking at $12,700
$5,500 Roth
  • Done Early
$3,600 IRA
  • Done Early $900 (After tax season, our income led us to lean much more on the Roth. I even did a re-characterization of some 2015 contributions.)
$1,900 Roth
  • Done Early $4,600
$6,850 HSA
  • On Track
__________________________
$75,250 TOTAL
  • Tracking at $83,800
================================================== ======

2016 is going very well. Our little girl was born in February, and our son loves her to death. It has been an incredibly smooth transition, with him being helpful opposed to jealous and becoming more independent with bedtime and potty training. We are really enjoying life right now and have two very nice (paid for in advance) vacations coming up in the Fall. We've been plugging away with saving while prepping for my wife to stay home sometime next year, and I'm satisfied with our progress. The market has been on a bit of a tear, and we are up a little over $100,000 so far. I wanted to reach $600,000 NW by the end of the year, and we have already made it. I'm still feeling conservative, given the potential market turbulence with the upcoming election season, so I'm adjusting my 2016 NW goal to $635,000.

Thanks again for any reading/comments!
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Old 07-09-2016, 08:54 AM   #38
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You guys seem to be doing great. If Ladbrokes offered a bet on your success, I would take it in a second! A combination of enjoying the present and being thoughtful about your financial future.

When my wife stopped working (sometime after kid #2), I was a bit concerned about the impact on our financial goals, and also having all the financial eggs in one basket (my career). I was making very good money, but still -- you never know.

But it all worked out fine. Her staying at home allowed me to focus on career. In retrospect, I wish I had been a bit less focused on career, but it will never be perfect. And we are at a point now -- in early 50s -- with one kid in college and one in high school -- when I could retire. My guess is by the time your kids are in college, you will be in that position too.
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Old 07-09-2016, 09:16 AM   #39
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That's amazing. Thanks for the update. You definitely have the right mindset and btw congratulations on the new baby girl! Little big brother sounds so sweet.

I'm easily confused but are the numbers in the second section included in the net worth total? Not sure if that section is a sub-breakdown or a separate amount.
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Old 07-11-2016, 08:58 AM   #40
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That's amazing. Thanks for the update. You definitely have the right mindset and btw congratulations on the new baby girl! Little big brother sounds so sweet.

I'm easily confused but are the numbers in the second section included in the net worth total? Not sure if that section is a sub-breakdown or a separate amount.
Thank you very much for your kind words! The kids are doing really well, and we know we are very fortunate to have two happy, healthy children.

Regarding the second section, I'd say the answer is, sort of. Any contributions YTD are included (as well as any growth/drops off those contributions), but all of the contributions haven't been made, yet.

For example, we are tracking at $44,600 for the 401k accounts, but as of now, we have only contributed $26,100. Ideally, the additional $18,500 coming up in the second half of the year will help to grow our NW by at least that much, but the market will certainly have some say in that.
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