Minimalist,
You might consider greatly increasing your 401a contributions. First, check the table below to ensure it captures your post correctly. E.g. I don't understand how the taxes can be $1530/mo...? Also please verify that the extra $333/mo is correct (to match the given annual income). . . ."
". . . This may be (more than) enough to digest at one sitting, so I'll leave thoughts on reallocation of current assets to later (or others' comments). If there isn't a numerical mistake in the above tables (always possible so please verify on your own), how does a large 401a increase strike you?
First, thanks so much for all your helpful replies! I am beginning to feel less fearful about making changes!
MDM: Wow!
Thank you for sorting through everything. I can't begin to express the relief I feel already. I apologize - No idea why I typed "1530." According to my worksheet, it should have read "$732" for the monthly total of deductions (Fed $435; SS $241; Medicare $56).
I would consider increasing my 401(k) for the benefits of funding with pre-tax dollars. I keep reading how important it is to "max the pre-tax" :-) Took some time today to read up on my current plan. In addition to matching 25% of the first 4% (doesn't sound like much, but every bit helps!), my employer also contributes 4% of my pay. Another two years, they will contribute 6% of my pay. It's done as a discretionary contribution, whether or not I contribute. Ashamed to admit, I didn't realize this.
Note: MDM,
Just saw your recent post as I was about to send this! In re-reading from my benefits packages, I found 401(a) that 1% to 75% can be deferred! No excuses, eh? Up to IRS limits, of course. So, it looks like $17500, plus an additional $5,500 for ages over 50!
Thanks again for providing such a clear snapshot of possibilities - I feel encouraged! This assistance and attention to details has surpassed my expectations.
warfreak2: Your kind words are very dearly appreciated - Thank you! I am very fortunate and most grateful to receive treatment for the depression. Each day, I realize how blessed I am for the ability to be productive at my job.
Gimesalot: Agreed - I could definitely reduce electric. Now, I feel like I'm taking on some neat goals. This is more motivation to be mindful of the usage. The phone bill is for a "flip" model. Yup, a Luddite for sure! Actually, I use it mostly to keep in touch with my daughter - no data, text, movies - plain vanilla. I get a discount through my employer, and it still seems a bit high for the service. It's month-to-month - no plan or contract. I thought I could purchase a cheap, pre-paid phone card from Walmart -- but I'm told it doesn't quite work that way :-(
Thanks for the suggestion to envision how "retirement" would translate for me. Truthfully, I've haven't given it much thought. . . and I like the idea of visualizing the possibilities! My concern has been more for remaining independent and not a burden to anyone, any system.
phred: Thanks for mentioning DRIP stocks. I am not familiar with how they work -- at all. I will certainly read up, as this is new territory -- but I'm teachable :-)
bacchi: Agreed heartily! jlcollins is major print worthiness - even for this minimalist! Thank you for the encouragement. I feel so much better now about having posted about my experiences and concerns.
kkbmustang: It wouldn't hurt for me to also read up on the IRS site outside of tax time. Though you can bet I'll be back on the MMM forums asking for interpretations of IRS "code." Thanks! :-)
I've got more reading to do and feel ready to soon take some action. . . even if only dealing with one account each week. A few more questions, and then I'm back to reading:
1) In order to take full advantage of the benefits in using pre-tax dollars, would I have to do this through Fidelity?
(My employer doesn't offer Vanguard). 2) Would you suggest Fidelity's index funds to hold part of my current 401K?
3) Would it be advisable to begin increasing the 401k contributions gradually, to ensure I'm still solvent with my current daily expenses?
4) No major complaints with TDA, I do tire from their sales calls. From what I've read, I believe I would like the Vanguard culture. Would it seem a good idea to move the accounts (Roth, Trad IRA and MM) currently at TDA over to Vanguard?
Thank you all. Your replies have helped strengthen my resolve to get further past the fears of investing and learn as much as I can. This feels like another layer of healing I hadn't expected. I feel very much a part of this warm community.