We have made good, consistent progress on our net worth and should reach a net worth milestone of $10,000 next month. In fact, if all goes as planned, our net worth in June will be roughly $11,000, half way to our 2007 goal of $22,000.
As we pay off debt and increase our investments, I’m beginning to feel how getting your money to work for you is a powerful thing. I’m sure there will be hiccups along the way but so far, we’re right on track.
To achieve our net worth goal of $1.5M in 20 years, we need a plan. Below are our net worth goals for each year (click on spreadsheet to enlarge). This plan assumes an average annual return of 8%, and our ability to increase our investments as our careers develop.As you can see, if we are able to hit our targets, we are still almost $300K short of our $1.5M goal. I guess that’s why they call them "stretch" goals. Read more [...]
Our ideal target retirement date is 2027, twenty years from now, when I am 52 and my wife is 43. Realistically, this goal is going to be a stretch, but we have a long enough time frame that I think it is possible under favorable conditions.If we believe that we can live on $60,000/year when we retire, then using a 4% Safe Withdrawal Rate (SWR), our nest egg goal is $1.5M. However, with inflation averaging 3.43% annually, our nest egg may need to be substantially larger.We will refine and better define Read more [...]
Below are some of our short term financial goals (1-5 years). I have checked off the items we have completed. a Pay off 401K loana Pay off credit card debt with rate interest over 0%a Save up 2 weeks worth of vacation (in case of job loss / unable to work)Pay off 0% interest rate credit card debt Open and fully fund Roth IRA for wife Open and fully fund Roth IRA for husband Sell Car 1 Pay off Car 2 10% (of gross income) contribution to 401(k) Build emergency fund to $12,000 We’ll be selling Car Read more [...]