2018 Year End Update:
One year ago:Net worth in December 2017 Net Worth $568,412
Net Worth - Pension $403,566 Assets My Pension $80,220
DW Pension $84,626
Cash/Short Term Inv. $67,311
Home Value $275,000
Roth IRA's $38,721
Traditional IRA's $146,476
Life Insurance Policies $11,491
Cars $9,000
Total Assets: $712,845 Liabilities Mortgage $144,433
Total Liabilities $144,433 TodayNet worth in December 2018 Net Worth $650,324
Net Worth - Pension $458,669 Assets My Pension $93,796
DW's Pension $97,859
Cash/Short Term Inv. $31,500
Home Value $282,200
Roth IRA's $95,111
Traditional IRA's $161,314
Life Insurance Policies $15,324
Cars $7,800
Total Assets: $784,904 Liabilities Mortgage $134,680
Total Liabilities $134,680 *last years numbers in parenthesis
2018 Finances at a GlanceOur net worth increased by
$81,912 (120,393)
Our net worth not counting our pension increased by
$55,103 (99,216)
We added $71,228 (109,206) to our retirement investments, for a total of $256,425
We added $56,390 to our Roth IRA's. This is all invested money that has already been
taxed, so it will grow tax free forever.
Saving this aggressively caused a $35,811 (18,960) dip in our bank account
Reasons our spending was $16,851 larger than last year:
1. Extra Income taxes paid up front because of Roth'ing so much money
2. Grad Class taken this fall that hasn't been reimbursed yet.
3. I didn't coach this Fall
4. We've spent 5 to 10k more this due to fridge, hot water heater, other spending.
Looking Ahead to 2019We will fill our Roth IRA's at the new year, dropping cash to about $18,000
This will mark the end of maxing our all of our retirement accounts each year.
We will cut our contributions to our Roth 403B/457's by $35,000. This will
keep our checking account healthy.
So, we'll put about $40,000 into our retirement accounts through work, on top of the
$12,000 we'll put into our Vanguard 401k right at the start of the year, for about
$52,000 total contributions towards our investments in 2019.
We will pay about $10,000 more towards principal on our mortgage
We will add about $10,000 towards our pensions
In total, about
$72,000 of our income will go towards savings next year. This is
less than the last few years, but for the first time it won't cause our checking
account to dip.
If the stock market goes no where next year, our investments will rise to $308,425.
If the market goes up, we'll have more, if down, we'll have less.
Our net worth one year from now not counting our pension should go over $500,000
Our total net worth one year from now should be about $750,000
We are still on schedule to be FI by around 41 and able to comfortably retire at 48.
Other thoughts:- I'm glad this was a down year for the markets. It was a good test to see if that would bother me emotionally. It had no negative effect on me, I just focused on the fact that I was buying extra shares, which made me happy. I'm confident I can handle a sharp downturn in the markets.
- I expect our spending to continue to rise as we increase travel with our children, and as the kids get into more expensive things like tennis/swimming/music, and so forth. My hope is that we our income increases fast enough each year that both our spending and new investment contributions can increase a bit each year.