I think to keep each other motivated, we should post milestones at the end of the year...and more often as achieved.
For example, I got a late start, so I reached $100K (401, Roth) last January at 38, now I'm at $145.5K (401 - 120.25K, Roth - 25.25K). In addition to maxing out my 401(k) and Roth, I also buy $50 in I Bonds every two weeks. This represents 32% of my pay (company kicks in an additional 4.5%)...not an easy feat for a single gal in SF, but I have my eyes on the prize!!!!
Greetings Folks,
I know we're not quite at the end of the year, but I'm posting my new milestones/stats now, as I'll be very busy until the end of the year.
A lot has happened since I last posted in the spring. I bought a single family home in the East Bay. It was a short sale, so I got it for much less than the seller paid for it 10 years ago. I forgot how expensive owning a home can be, especially for a single modest-income earner. It's old, but has gone through a few updates. My mortgage is only $300 more than my old apartment in the City, but there is always something to fix or update. All in all, I'm a proud homeowner and like all of my neighbors (except the German Shepard next door who barks at everything). My commute costs have quadrupled, but I'm near a quaint downtown with restaurants and shopping. It's definitely not my forever home, but I'll probably stay for a couple of years (2-5) and build a real emergency fund, plus play money.
My retirement numbers are pretty much the same because I borrowed against my 401(K) and took money out of my Roth. I'm not able to contribute as much to the 401(k) because I have to pay back $215 every two weeks, but it's basically the same amount as before (if you include the repay). In April, I borrowed $25k from my 401(k), reducing the balance to $101K, but since then I've put in $10K from all sources and I'm back up to $124k. Had I left the money in (no house), I'd have about $160K. I know for sure that I have more than that made up in equity, so I don't beat myself up too bad, and I am paying myself back. Conservatively, the house has gone up by 20%. I took $8.5k from my Roth and only put in about $500 since April, but it's back over $25k.
Lessons learned (Positive and Negative)
1. I'd rather rent an apartment in a artsy, urban area than live in the burbs (might feel different if I were married to a handy man). I like the culture and convenience of the City. Plus it's so expensive managing a house with one income.
2. For the time being, I think I made a smart move. The rents in SF are going through the roof and tons of people are being priced out of the city. My old place went from $1,433 to $1,895 and that is dirt cheap still for City now surpassing NYC.
3. I can't garden to save my life, and I don't love it either...though I have a nice little container garden going in my front yard and porch.
3. I now see the value of cash/emergency funds. I'm slowly working to build one up.
4. I bought at such a deal, that I'm almost certain to walk away with at least $50K after loan repay and CC payoff...shouldn't type that and jinx it.
5. I'll probably leave my job after I sell my house too and maybe move back to Seattle with healthier 401(k), Roth and 18 month emergency fund. Oh and travel a little, just a little...like Europe for the first time. I'm basically at 5 years, so I'll get $475/mo if I leave tomorrow and $100+ more for every year I stay.
6. Retirement savings are important but living life fully and seeing a little of the world is important too. I don't want to solely focus on "one day" in the future. A few colleagues have dropped dead recently and they were youngish, from cancers, sudden heart attack and stress.
New Retirement Savings Plan:
401(k): $1,650/month
Roth: $200/month (beginning January 3rd) - less but still something
Cash: $100/every two weeks
No change in retirement date.
Well, enough about me
....how are you folks doing?
