We just broke $23,000 in liquid assets (pre-tax retirement accounts, Roth IRAs, taxable accounts, cash & savings accounts). As of this morning, we’re at $23,030.04, a nearly $3,000 increase over less than two months ago. Not too shabby with the stock market turbulence.
Category Archives: Goals
Steady Progress
Although I only post our net worth in this blog once a month, I check our progress almost daily. Well this morning, we broke $20,000 ($20,235.09 to be precise) in liquid assets (Pre-tax Retirement Accounts, Roth IRAs, Taxable Accounts, Cash & Savings Accounts). Unfortunately, our net worth is well below this amount because we have liabilities that pull it down (0% interest credit card debt, student loan balance, and a mortgage that is slightly higher than what our condo is worth).
The details of this increase in our liquid assets will be noted in our new worth update post at the end of the month.
Good Net Worth Progress
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.
Net Worth Milestones
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.
Target Retirement Date
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 our plans/goal as time goes on. Some other challenges in reaching our goal include being able to purchase (and pay off) a home and finding affordable long term health care. Our desire to have children will also affect our saving/investing rate, but won’t stop us from having them.
I guess if I have to work until 53, I could live with that.
Short Term Financial Goals
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 loan
a 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 1 and funding Roth IRA’s for my wife and I in the coming months, so more checkmarks will be added soon.