Hi all! Been hanging around here a short while now and figured it would be really beneficial to take the "Case Study" plunge. so here goes...
About us:
Family of 4: me (47), husband (56), daughter (15), and a beagle.
All income is through my employment. Husband does not work and had a major MI in Aug 2013, has a LVAD now (left ventricular assist device).
I think we've always been fairly frugal but there definitely has been some lifestyle creep (lol, such as it is), and owning a very old (1840's) house certainly has its additional costs.
The most wasteful anti-mustachian thing here has been my smoking (I think about $237/month) however I am now going into my 4th smoke free day and really mean business!! Failure is NOT an option!!
So feel free to discuss the budget and face-punch as you see fit...but my real reason for posting lies in the the fact that I have a number of competing goals and a situation in flux and would like some help prioritizing and laying out a good plan of action.
One of the key factors in my thoughts are our current effective tax rate is about 3% so I am thinking that my strategy should be different right now than it may be later on.
I want to fund a Roth IRA (doubling as an emergency fund), I was thinking of adjusting my W-4 so that I no longer get these rather large tax refunds (2K total fed and state) and direct all available funds there.
I need to re-roof the house and add insulation before next winter and had been saving cash for the project (now sitting in my bank account) but then looked into HELOC 3.25apy since I doubt Ill be DIY on this (maybe parts, we'll see). I have not got estimates on this yet but will be very soon.
Also, I have read many different debates about paying down a home mortgage and am wondering if it is still a bad idea given that my interest is 4.78% and I still have about 2yrs of PMI ($79?) and do not itemize.
Any and all comment appreciated! What strategy should I adopt to maximize retirement savings with regard to our tax situation and bearing in mind that I am our sole support and that's not gonna change.
Pre-Tax Income: | | |
Monthly Gross | 3817 | To Increase by 5.5% by mid July (2% this month) |
Withholdings | 495 | |
After Tax Withholdings | 26.4 | Life Ins |
Health Ins/Fam | 185 | |
Retire | 154 | |
Total Deductions | 860.4 | |
% Gross | 22.5 | |
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Net Income | 2950 | $2000 tax refund - increase exemptions? |
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Fixed Expenses | $ | Comments: |
Mortgage (tax/Ins,PMI) | 860 | Saved $13 by raising deductible, $31 cancelled flood ins |
Electric | 81.0 | average $66-100, 16-20 kWH daily (chest freezer died, not replacing) |
Phone/Internet | 67.0 | saved $20 takes effect next month |
Groceries | 500.0 | 3 people, will start looking at this but we are not fancy |
Heating | 150.0 | combo oil/fire wood - need better insulation, high this year-avg$100 |
Netflicks | 8.0 | |
Car Insurance | 34.0 | saved $20 month by dropping collision on 2005 Camry |
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Vairable Expenses | | Comments: |
Work Lunches | 0.0 | Started bringing lunch 2 week so far, goal = $0, was $150 |
Plowing | 13.0 | New this year, husband cannot do anymore |
Walmart (misc) | 35.0 | dog food, TP, toothpaste etc - go every 3 mo or so |
Clothing | 20.0 | Maybe less, I hate hate hate shopping |
Gas | 200.0 | commute 60 miles RT, 30mpg 2005 Camry |
Gifts | 25.0 | Christmas, B-Days |
Dental | 30.0 | Maxing out dental benefit last year, this and next for some renovations |
Entertainment | 10.0 | Restaurant, Movies, etc |
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Dumbass Expenses | | |
Beer | 0.0 | ?? Pretty sure I will smoke if I drink, but this was easily $130 |
Smoking/Vaping | 0.0 | Spent $36 for eGO starter kit with ejuice, not idea how long these last |
| | |
Total | 2033.00 | |
Remaining | 917.00 | |
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Liabilites: | | |
Mortgage | 94839.00 | 7ys into 30yr, 4.78%...got fucking PMI for another couple |
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| | |
Assets: | | |
Retirement 403(b) | 105000 | 524 monthy (4% me, %10 employer) |
House | 130000 | Zillow says its 178K, no way! |
Cash/Savings | 6370 | |