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New Net Pay and Retirement Update

August 23rd, 2022 at 06:22 am

Friday's paycheck was the first one with the new raise on it and the net pay is now $3584.10, give or take a couple dollars here or there.  That was always the case with his old rate.  So that is a difference of $567.73 per paycheck or $1135.46 in a 4 week pay cycle.  And that comes to $14,760.98 a year in net pay.  That's a lot to work with.

So I am debating what to do.  I have some things I have to take care of, like $1000 of work on the van, which I only have $604 saved for, and replacing the console in the truck with one that has satellite GPS and MP3 player compatibility.  I have to buy DD a recliner chair to deal with her back issues and it has to be one she can get out of.

We need to replace the shower/tub with a walk in shower and part of the floor in one of the bathrooms, but I might be able to push that off for another year.  We've sealed the crack in the tub, so it shouldn't get any worse, at least.  And most importantly, I have to get the emergency fund back where it was.  We also need to pay for an appointment with an elder law lawyer for my mother to get her will updated.  She can't afford it and it needs to be done.  Being as we will be inheriting the house, I want to make sure all the t's are cross and all the i's are dotted.  I'd prefer to do legal zoom, that's what we did for DH's parents, but my Mom is weird about the internet sometimes.

But when all that is done, I'd like to bump our retirement up to whatever it takes to max out our 401K.  Right now, where we are at, we will be contributing $23,642.12 this year.  The max for over 50 is $27,000, so we will be $3357.88 shy of that this year.  We are at 16% currently.  For a full year at the current rate of pay at 16%, it would be $25,245.22 or $1754.78 short of the max, if the max is the same next year.  That is, of course, assuming there is no overtime.  Overtime could push it closer since contributions are based on a percentage.

We will definitely be over the regular amount of $20,500, which we've never hit before, but I'd like to be at the higher max next year.  We need to be.  I'm 52, and DH will be 53 at month's end.  We need to get moving.  We are just so far beind in life because of all that medical debt we paid off over 20 years.  Ideally, we would also be able to do a spousal Roth IRA for me and possibly a Roth IRA for DH as well.  He has a traditional one, but I'd like to have Roths. Just not at Fidelity.  They just don't recover from plunges and don't offer better plans at the amount of money he has in there.  We need to get the ball rolling on getting that transferred elsewhere.

After Friday's contribution ($970.97 from us, $181.51 company match) of $1152.48, our 401K and IRA now sit at $79,444.45, which is a change of $1324.51, so $172.03 of growth since last payday.  It's not much, but at least it is going in the right direction and not eating the whole deposit like it has for most of the year.  So that's a positive.

I don't know, I'm just trying not to wait for the other shoe to drop.  Things are going too well.

 

2 Responses to “New Net Pay and Retirement Update”

  1. terri77 Says:
    1661367471

    To borrow a Dave Ramsey phrase, you are working with a big shovel. There’s plenty of income there to do everything you want to do, maybe not all this year, but definitely in the near future. You just have to decide which is the greater priority. Congrats on the raise!

  2. rob62521 Says:
    1661382864

    Glad you are seeing a good increase and knowing how frugal and smart you are, you will figure out how to best use it. Hopefully the other shoe isn't going to drop!

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