Author Topic: Am I Missing Anything - Trying to do this on my own  (Read 821 times)

Orange126

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Am I Missing Anything - Trying to do this on my own
« on: July 02, 2017, 02:20:49 PM »
Thanks for your help!
« Last Edit: July 03, 2017, 10:52:06 AM by Orange126 »

sokoloff

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Re: Am I Missing Anything - Trying to do this on my own
« Reply #1 on: July 02, 2017, 03:15:29 PM »
It's small potatoes, but at $40/mo for gas, you're driving about 500 miles a month or 6000 miles a year.
You could easily cut back to 2 oil changes per year. (I have some an older car and change the oil once per year, driving about 5000 miles per year.)

If you could get out of the DVC for $24K, you'd free up about $3K per year (half in direct fees and half in earnings on the $24K you'd be able to invest). I'm not saying you have to stop going to Disney, but $3K/year might buy a nice family vacation there or someplace else and you'd have $24K additional in investments/emergency funds. No idea on the resale value of DVC; most timeshares have horrific resale (because most are a pretty crappy deal). I do know most DVC people that I know are very happy with theirs, so I'm not judging, just trying to do some cold math and you can decide how to act on that because you know more than I do about how much it's worth to you. (The fact that you list it first either means you're skeptical or heels-dug-in loving it. :) )

bender

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Re: Am I Missing Anything - Trying to do this on my own
« Reply #2 on: July 02, 2017, 10:05:34 PM »
So you're happy working part time and your income exceeds your expenses, so generally there is no emergency.  You are doing just fine.  Now it could be better.  It would be great if you could MAX that 401k when you're eligible.  That would make for a nice nest egg in 10 or 15 years and give you some options you didn't think were open to you.  I'd start with some small changes that improve your efficiency and reduce wasting money - then take on the larger items.  Here's my list:

Your condo insurance seems very high for $100k worth of coverage - what are you insuring?  I owned a condo once and the condo fee covered something called 'master insurance' that covered the building structure.  I only had to insure my interior if I chose to do so.  Investigate what you're paying for here - it may make sense to shop around and switch.  You could raise your deductible as claims are rare and you probably wouldn't want to make a small claim to get your rate jacked up.

On your IRA - take a look at the target date fund and the expense ratio.  If the expense ratio is high (greater than say 0.5%), you may want to consider managing this money differently.  For example if you want 75% stock, 25% bond, just buy a low cost stock and bond index fund.  The expenses are around 0.05%, so virtually nothing.

The stove may be easy to fix - at least check out some youtube videos before replacing.  You may learn a new skill!

Electric at $125 per month seems a bit high for a condo.  I'm not sure if you have high cooling costs?  If not, take a closer look at this.  You should be able to get this under $100 if you have all LED lightbulbs and other more efficient practices.  Taken to the extreme, you may be able to half that bill.

Your insurance is a bit too high if you're a safe driver and have no tickets.  Your low mileage qualifies you for a big discount, you just have to call your insurance company and ask about it.  Get a rate quote from GEICO.  Consider raising the deductible as well to save some.  In a couple of years, when you're comfortable with it and it's worth a lot less, drop the comprehensive.

Good luck!

« Last Edit: July 02, 2017, 10:09:54 PM by bender »

Guide2003

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Re: Am I Missing Anything - Trying to do this on my own
« Reply #3 on: July 03, 2017, 02:25:36 PM »
Don't know if you meant to remove the original post with your edit, but looks like you got a couple good answers there!
“We think sometimes that poverty is only being hungry, naked and homeless. The poverty of being unwanted, unloved and uncared for is the greatest poverty. We must start in our own homes to remedy this kind of poverty.” Mother Teresa