Yes, this is an excitement post and not intended to brag at all. I am SUPER excited to have maxed out my Roth IRA for 2020 in January (chose 2020 for tax year to complete it)!!
This is amazing and so much fun. $500/month = $6,000/year AKA MAXED OUT!! This is not to talk about the stock/stock(s) purchased in the Roth IRA but I am so happy to have completed/maxed out my 2020 Roth IRA!!
My age: 37 (usual story, wish I did this sooner)
My expected "retirement" date: I'm bad and did not set it but want it to be by 50 years old because of "impressive" spending habits. In 2020, DW (and I) got:
-new Hyundai Palisade (loan: 3.75%... NOT cash but under 4% so not rushing to pay it off vs the return from the market; not Dave Ramsey's plan)
-Peloton (paid off in cash and $40/month... less than Lifetime Fitness, canceled it)
-Puppy (DW's desires, I love the dog and take care of him. It's a good thing... keep saying that waking up to the puppies alarm clock)
These expenses were afforded and still able to max the 2020 Roth IRA due to DW and my combined income and having a plan. I read the book "I will teach you to be rich" by Ramit Sethi and believe in the thoughts and processes in this book. They helped me with multiple banks accounts (at the same bank) so I have an account for:
-Long term savings
-House savings (modifications/down payment for new home; invest this money and it's going well)
-Annual water bill ($710/year)
-Vacation fund
-Gifts
-Donations
-Stimulus money (temporary; this account changes names)
-Leftover expenses
Adding a title to each account mentally helps me/you/us not spend the money because we feel that it is for whatever the title is. It works for me and was described in the book. Thank you Ramit!
There is probably more to write but this is a good start to express my excitement for maxing out my 2020 Roth IRA for the first time!! Woot Woot!!
Next goal is to max out the 401k (currently at 7% of salary)
One reason this may or may not happen right away is because my retirement account and HSA are outperforming the options in my 401k, beyond the tax savings (HSA is an AMAZING retirement plan, possibly beyond medical needs, but that is for another post)!
Any thoughts are always appreciated.
One more time, I MAXED OUT MY 2020 ROTH IRA FOR THE FIRST TIME!!
This is amazing and so much fun. $500/month = $6,000/year AKA MAXED OUT!! This is not to talk about the stock/stock(s) purchased in the Roth IRA but I am so happy to have completed/maxed out my 2020 Roth IRA!!
My age: 37 (usual story, wish I did this sooner)
My expected "retirement" date: I'm bad and did not set it but want it to be by 50 years old because of "impressive" spending habits. In 2020, DW (and I) got:
-new Hyundai Palisade (loan: 3.75%... NOT cash but under 4% so not rushing to pay it off vs the return from the market; not Dave Ramsey's plan)
-Peloton (paid off in cash and $40/month... less than Lifetime Fitness, canceled it)
-Puppy (DW's desires, I love the dog and take care of him. It's a good thing... keep saying that waking up to the puppies alarm clock)
These expenses were afforded and still able to max the 2020 Roth IRA due to DW and my combined income and having a plan. I read the book "I will teach you to be rich" by Ramit Sethi and believe in the thoughts and processes in this book. They helped me with multiple banks accounts (at the same bank) so I have an account for:
-Long term savings
-House savings (modifications/down payment for new home; invest this money and it's going well)
-Annual water bill ($710/year)
-Vacation fund
-Gifts
-Donations
-Stimulus money (temporary; this account changes names)
-Leftover expenses
Adding a title to each account mentally helps me/you/us not spend the money because we feel that it is for whatever the title is. It works for me and was described in the book. Thank you Ramit!
There is probably more to write but this is a good start to express my excitement for maxing out my 2020 Roth IRA for the first time!! Woot Woot!!
Next goal is to max out the 401k (currently at 7% of salary)
One reason this may or may not happen right away is because my retirement account and HSA are outperforming the options in my 401k, beyond the tax savings (HSA is an AMAZING retirement plan, possibly beyond medical needs, but that is for another post)!
Any thoughts are always appreciated.
One more time, I MAXED OUT MY 2020 ROTH IRA FOR THE FIRST TIME!!