DH checked the retirement accounts for us. It's not a lot, but at least it is something. I don't regret focusing on paying off debt, and I know we will really get moving in another 18 months or so on the retirement, and both accounts are actually doing well.
$8,443.85 in the IRA
$8,316.98 in the 401K
16,760.83 Total Retirement Savings
The IRA was $6123.49 a year ago when DH rolled over two old 401K's and nothing has been added, so it has earned $2320.36 in a year. It is invested pretty aggressively. The 401K we began investing in in July of last year. It is also invested pretty aggressively. I am hoping to continue to be aggressive for ten years before becoming much more conservative, but that will also depend on what happens in 2020 with who gets into the House, the Senate, and the Presidency and how that affects the stock market.
Viewing the 'Retirement' Category
DH checked the retirement accounts for us. It's not a lot, but at least it is something. I don't regret focusing on paying off debt, and I know we will really get moving in another 18 months or so on the retirement, and both accounts are actually doing well.
This is one of the worst winter colds I have ever had, but I think I have finally turned the corner. I got up and got dressed for the first time since December 2nd. My cough is up in my throat now instead of my lungs or bronchials. I still definitely have a lot of mucus and am pretty tired, but I think I could drive today without being a risk to others. I haven't even been in a car since the 1st, let alone driven.
I even started a load of laundry, there is a huge backlog, though DH did his work clothes, but I have to take it slow. I am still a little dizzy when I bend over, so I reckon DS will have to take the clothes out of the dryer and bring them to my bed so I can fold them. But I am not dizzy when I am upright. It was so bad there for a while that being upright was too much.
There is talk of a Christmas or year end bonus at DH's work. I know when he filled out paperwork to become a permanent employee there was a sheet about a company bonus that goes into the 401K. I don't know if it all goes in or if some can be gotten as cash. We could use cash for medical bills. I don't even know if he will qualify, because while he has worked for them for a year, it has only been 6 months direct, so I'm not counting any chickens. It would be nice, though.
Considering the job he is doing, he should get one, but I don't know how these things work. They are pretty eager to hang on to him. His boss has put in for a raise for him, so keep your fingers crossed that he gets one.
He has been getting rumblings about slope work. One company even asked if they could put him in on their bid. DH said no for now because he really doesn't want to go back to Alaska. He likes where he is at. But it would be a possibility. I don't really want him to go away again. We spent the first twenty years of our marriage with him gone so much for work, now that he is home I have gotten used to it.
I know I could get used to him leaving again, but there is so much I can't keep up on anymore. That's why we don't have chickens, or turkeys, or ducks anymore. And why we've cut back significantly on the number of rabbits. I am even debating on whether or not I want to plant a garden this year. If I do, I will probably only plant a few beds.
Mom and DS want to put up Christmas lights, so DH went and dug out some of our standees (stand alone lights). We have our polar bears, our train, our seal with a present on his nose, our Season's Greetings, two presents, and our giant snowflake. We need to get a cable to secure the seal to the porch. Everything else will be zip-tied to the deck rail or up to high for someone to get without a ladder, but I am not losing that seal to theft. It was too expensive.
I have no idea why Mom wants to put up lights this year, except that there are tons of houses on our block who have put them up and our house looks pretty dark and naked without them. One of our next door neighbors doesn't have anything either, but that is pretty much it. She isn't the type to keep up with the Jones's normally.
I don't know when they will actually get put up though. DH and DS have been helping MIL to clean out her attic and garage to get ready for the exterminator to come, new insulation to be laid, a new breaker box put in, and a new furnace and AC to be installed. She's getting $40K of work done. FIL was a pack rat and there is a lot to get rid of. So far they have hauled away 1013 pounds of garbage. DH is finding tax files and paperwork from the 70's. We have a roving shredder business that you can get to come by and shred all your old paperwork and MIL is thinking of hiring them.
I haven't been able to help at all, although considering how much dust and rat droppings and loose insulation there is, that is a good thing. With my asthma it is just not a good idea, even with a mask on.
They are going out again tonight after DH gets off work and hopefully that will be the end of it until the weekend. DH didn't get any rest this weekend at all because he was out there. I am worried he is going to come down with my cold, because he has started coughing, but that might just be in reaction to all the dust. I don't like it when he burns the candle at both ends. He is getting some help from his sister and her boyfriend, so it isn't just my guys.
I just don't want him to get sick and have to stay home from work. And I need him to be well to drive us down to Virginia Mason on the 19th. I hate driving in Seattle traffic. I've done it a couple of times because in the past DH was in Alaska, but it is something that scares me because they drive worse in Seattle than they do in Orange County. In Seattle, no one knows what a blinker is, people zip back and forth between lanes even when there is no space to do so safely, assuming the lanes aren't at a standstill. Pedestrians jaywalk constantly despite having plenty of cross walks. And don't get me started on the bicyclists, who apparently don't like to use bike lanes, but would rather take their lives and yours into their hands and act like they are immortal. Even the bus drivers are a little nuts.
Almost all the streets are one way and half the time you can't go around the block for several blocks. People block intersections so badly that I've sat through five or six light cycles before it has been clear to go. The drivers are so aggressive, too. So yeah, DH needs to be well for that, because I am currently not up to that challenge.
As per usual, I have come down with something a few days after our visit to the ER, a nasty stomach bug. I am on the way back up, though, so fortunately it isn't going to be some long, drawn out thing. My food is staying down today and my head feels better, and I finally woke up feeling well-rested. My tummy is still a little tender, but I think by tomorrow I will be okay. I am supposed to be beta testing a finance thing for someone, but haven't been quite up to it yet. Maybe tomorrow.
We have five days to go until payday. This will be DH's first paycheck as a permanent employee and will have two weeks on it. I have set up my budget for August with two bi-weekly pay periods instead of weekly pay periods. The first week will have 15 hours of OT on it and the second week will have 6. DH was so tired after spending Thursday night in the ER with DD, so I told him if he was too tired to stick it out, not to. OT is nice, but not at the expense of his health.
From now on he is only authorized to get 10 hours of OT a week. He won't be able to set up the 401K until after he gets his first automatic deposit, so the paycheck on the 24th will start the 401K contributions. We have decided to start them even though we haven't paid off the debt yet. We both feel like we are already too far behind on retirement to wait, even though Dave Ramsey says to wait until the debt is gone. It is messing too much with my security issues not to start it up and DH also wants to do it.
I am having DH run the numbers for me on how much to contribute. We are debating 5% and 7%. 5% is how much the company matches. 7% is the break even point on taxes. I just need to see what the end numbers will be. Then we can make a decision and I can do the final tweaks to the budget. The August budget is going to be weird and not be able to follow the budget template, but from September on it'll be set for the rest of the year.
DH will be getting what amounts to a 12% raise, but it is because our insurance premiums will be so much lower in September. He is not getting an actual raise, although his boss did try and says he will try again in 6 months. It will feel like a raise. Also in 18 months another guy is going to retire and his boss says he wants DH to take over his position which would be a promotion and likely a raise with the increased responsibility.
We will not increase our level of spending, though. All extra money will be put in the 401K and to pay off this last debt. Once the debt is gone, then the debt money will go to an EF of 3 months of expenses. Once we hit 3 months expenses, we will split that portion in half. One half will continue to build the EF until we hit six months of expenses. The other half will go towards a down payment fund for a house.
Once the EF hits six months of expenses, we will adjust our retirement savings to 10% and the remainder will go into the down payment fund. We may be saving for some time as I don't want to have a mortgage of more than $200,000.00. I really would prefer $100,000.00 mortgage, but that is not practical where we live.
If MIL gives us the $13K a year, we will fund a spousal Roth IRA with some of it and the rest will go into either the EF if we are still building it and then the house down payment fund.
I probably should start a sinking fund for a vehicle replacement. Right now our vehicles are in excellent condition. The 2011 Sienna has only just hit 40,000 miles. The 2007 Tacoma has a lot more miles, but is in great repair, so I think we have many years to go. But when something does go, we will want to get something nice, a used car in the $20,000 range or less. I reckon the Sienna will last another 15 years, but the truck might not. With Toyotas, though, as long as you keep them up, they last a very, very long time. Both will need new paint jobs, the truck first, and then eventually the van.
I'd like to take a vacation at some point, too. We haven't been on one in several years. So that should likely be one of our sinking funds as well. Hopefully, we will be able to achieve all of these goals in the next six years or so. I would like to get out of here sooner, but I just don't think that is to be.
So information about the new job is slowly trickling in. I'll start with the retirement information. They have two choices: a traditional 401K and a Roth 401K. I have only recently even learned of the existence of a Roth 401K. With the traditional 401K they will match 100% up to 5% of your income and of course it is pre-tax dollars. With the Roth 401K you put in after tax dollars, and they will again match 100% of what you put in up to 5% of your income. Their portion will be taxed upon withdrawal, but what you put in won't be since you have used after tax dollars.
My gut says the 401K Roth is probably a better choice, but I have done some reading and some have said that it might be better to use pre-tax dollars now when we are earning more to lower our effective tax rate, because when we retire we won't be pulling out as much as DH is currently earning per year, so our tax rate then will be lower than what it is now. Could some of our accountant/tax people weigh in on this issue?
They also may contribute an additional sum to the 401K called a performance contribution, which is divided among employees in proportion to their wages and based on how well the company does each year. Basically an end of year bonus, but to the 401K. It varies from year to year.
They have an ESOP or Employee Stock Ownership Plan. The company contributes stock to employees at the end of the year based on wages and a pro rata basis. They will start doing this once you have worked 1000 hours. It is fully vested after six years, vesting 1/6 per year. DH said currently one share of company stock is worth $16,000. Stock must be sold back to the company on retirement or quitting.
I am debating whether or not we should start whichever 401K we choose immediately (match is immediate) or wait until the debt is paid off. If we do it immediately it works out to $90 a week. That is $360 a month that should be going to debt payoff and we are hoping the debt is gone in the early part of next year, but that depends on overtime. I hate giving up the free $360 a month, but I know it would be for a short time. It bothers me that our retirement is so low, but the whole point of the Dave Ramsey plan is you cannot split your focus.
As soon as the debt is paid off, we plan to get the EF to three months of expenses and then hit retirement at 10% while getting the EF up to six months of expenses. Then once the EF is at six months, start saving for a large house down payment. I don't know that we can do the recommended 15% to retirement and still save for a house, though once DH starts getting raises we might.
We figure anything MIL gives us will go towards either the EF build or the down payment. In later years, we could put any gift money towards Roth IRA's or towards paying off the house early once we buy one. I guess in those years we would hit 15% of retirement if MIL gives like she has said she plans to. We can't count on that money, though.
We will have to use some of the money MIL gave us already to get through the job transition period. DH officially starts working for the company direct on the 21st. His last paycheck from the contracting company is on June 27th. Then he won't get paid again until the 10th and we will move on to a 2 week paycheck. So we need to get through the time when we would have had a check on the 3rd, but now won't.
Also, his old company has said that we can pay the August insurance payment out of that paycheck on the 27th, which means that paycheck will be quite short, even with OT on it. So some of the money will also have to go to cover what is taken out for the insurance. But starting on the 10th we will switch to biweekly budgeting instead of weekly budgeting and everything will be fine. The new insurance starts on September 1st. That will make life easy and we won't have to worry about dealing with COBRA at all. So, yay! I am just very grateful it is all playing out like this and that we have the money in savings to smooth out the bumps.
MIL gave us $5000 yesterday. I have a lot of mixed feelings about what to do with this money. The strongest emotion says to stick this right into the Emergency Fund. That would bring it to nearly two months of expenses. It has been very hard having it down so low. And we still don't know what the future holds job wise. His job with this company keeps getting extensions, but we are living 3 months at a time, it seems.
Another part of me feels like we should throw it at debt, we are supposed to be throwing everything there, but DH and I both feel weird about taking money from his mother to throw at the loan to my mother. Yet at the same time, we both want that debt gone. It has been hanging over us too long and prevents us from saving for our future. I also don't know how my mother would feel about taking that money if she found out where it came from, which I have no intention of telling her, but she's nosy and has a way of finding stuff out. We are not telling the kids about this money. So if we do decide to pay it to her we might stretch it out over a few months so it doesn't come in a big lump.
Another thing we could do is open a Roth IRA. Probably a spousal IRA since I have nothing saved for retirement at all and I'd feel better if some was in my name, too. If we were out of debt, that is likely what we would do with the majority of the money she is giving us, open a Roth for both of us. But we aren't. I know once we are out of debt we can really contribute, so it comes back to that. It always comes back to paying off the loan.
There are a few things we could really use the money for, like I need new glasses, and we need new rabbit cages, and DH would like a new laptop or at least to have the money available to get one when his laptop gives up the ghost, which it has been threatening to do for the last year or so. It would also be nice to get DS into a driver's class so he can actually learn how to drive. DH hasn't had the time to teach him and my brain hasn't been in the right place to do it, either.
But I know we can get by with the old cages and that we have started a fund for the laptop. We need to find the time to teach DS to drive even if DH has to do it on the weekends. The glasses I can probably afford to buy outright in another month out of our medical fund, but my eyes are really, really bugging me and my prescription has changed a lot so the temptation there is strong.
So maybe we put $4000 into the EF and I get my glasses, and the rest of that $1000 we put into the laptop fund. Then when we know for sure what the situation is long term with DH's job, maybe we can take the remainder to throw at debt.
I do know that MIL plans to give us another $7000 this year. She's given us $6000 so far. I am not sure when that will happen, though. At that point we will have to figure out what to do with that money all over again.
Maybe with the momentum we make on debt in these next several weeks with all the overtime, it'll hyper focus us on getting the loan gone, or maybe it'll make it easier to keep it in the Emergency Fund.
I really don't know how people manage to stay gazelle intense on debt payoff if they are worried about future employment. We've got to figure it out though, if we ever want to be done with this and save up for a house and contribute to retirement. Right now buying a house again seems so far out of reach.
I'm not sure what we are going to do. I think for now just let it sit in savings until we are more sure of what we should do and have had a chance to discuss it more.
What would you do, not knowing if you had a job past the end of August, but things seemed somewhat promising? Wait until September? That probably makes the most sense.
DH had 10 hours of overtime on this paycheck, which is great, plus I got my Youtube/Google AdSense pay deposited, so that will be reflected in the tithe amount. We didn't have a lot of bills. We don't generally since we run everything through the credit cards and then pay them off weekly or monthly depending on the card.
$1200.00 Citi Visa
__275.00 Chiropractor Monthly Family Plan
__100.00 Best Buy (18 months same as cash)
$1763.51 Total Money Out
I transferred my wages to savings. There is a small amount left in checking, just under $60. We run it close since we write so few checks anymore, but it is hooked to a savings account that will automatically feed the checking account for a $1 fee if for some reason my math was off and we went over. Good credit unions are nice that way. Right now that savings has over $800 in it, so I'd have to screw up in a really big way to not be protected there.
DH still hasn't signed up for the 401K. I'm trying to get him to do that this week. We will start with 2% and after DD's surgery is paid for we will increase it by 1% each month until it becomes too tight, until we hit 6%. We may do more, but I really have to feel what living with that amount taken out will be like.
Plus we have to build the EF back up. And I want to be able to purchase half a steer, 30 chickens, and half a hog again in the fall/winter, so the money does have to be available for that. It saves us so much money in the long run to do that. At the very least the beef.
Last night DH and I sat down and took another look at the health plan offered by the job recruiter company. They offer 4 different plans.
The gold plan has a $500 per person and a $1000 per family deductible. Prescriptions are $10 for generic and $50 for brand names. Co-pay is $35 whether it is a regular doctor or a specialist. Out of pocket max per person is $4500 and per family is $9000.
The silver plan has a $2000 per person and $4000 per family deductible. Prescriptions are $20 for generic and $80 for brand names. Co-pay is $45. Out of pocket max per person is $6850 and family is $13,700. It has an out of pocket max of $10,000 after the deductible has been met.
It offered 2 bronze plans. Plan 1 has a $5250 per person and a $10,500 family deductible. Prescriptions are $20/$80 and then they have a third tier and a fourth tier of 30% and 50% respectively for the really high priced drugs. Co-pay is $50. Out of pocket max is $7150 per person and $14,300 per family.
The second bronze plan is an HSA plan. It has a $7150 deductible per person and $14,300 per family. Prescriptions are $35/$100 with the other tiers again being 30% and 50%. Co-pay is $50. The out of pocket max is $6550 per person and $13,100 per family.
Based on our prescription costs and the fact that my daughter is going to need 2 surgeries in the next couple of months, we knew both bronze plans were out, so it really came down to which would save us more money this year, the gold or the silver.
DH ran the numbers and on the gold plan weekly take home pay will be approximately $1177. On the silver plan it will be $1232. This is without any overtime, his guaranteed 40 hours a week. If he gets ten hours of overtime a week the amounts would be $1523 and $1577.
They are currently on an overtime moratorium for this week and the next two weeks, though DH has been getting 50 hours up until now. But they put the freeze on because they have pushed the end date of the job out to mid-April instead of mid-March, so the rush to get the work done on time has slowed. It means DH will be employed for another month at least, though.
So not feeling we could count on the overtime at all, my numbers to budget with had to be $1177 and $1232. I sat down and figured out the budget with the lower amount to see if we could swing it and still be able to start the 401K contributions in March when he qualifies.
We can swing the more expensive plan and we are going to because in the long run it will be cheaper. I have 7 prescriptions, my daughter has 6, and my husband has 2. I know we might only be on this medical plan a few months and if DH gets hired on through the actual company it will be all different medical than this and a different 401K plan, too, but since I know what is coming up and how much we would be spending, the gold plan will be cheaper, especially since more of it will be in pretax dollars, which will also lower our taxable income.
I have determined we can at least contribute 2% of his income to a 401K which is $36 a week. If after the first month of that he is still working there we will try to bump it up to 4% or $78 a week and see if we can handle that. We will proceed forward with 1% bumps until we get to 6% to get all the matching funds.
I can make some cuts in the grocery budget and we can cut out eating out again. Not that we eat out much, but we do. I think the amount I have allotted for medical expenses will drop, too. I am not sure we will be able to contribute to the Emergency Fund or pay back my mother anything, though. I will try for at least $100 a month into the EF, though.
Our insurance will go up once the will finishes up whatever it is doing and the title of the truck gets transferred into our names and MIL is no longer paying the insurance on it. I reckon it will double, but it might not, since we ought to get a multiple vehicle discount. I am considering at that time dropping everything but what we need for if we are at fault since we will have two vehicles. When you only have one vehicle that is a chancier prospect. We'll see. DS is about to start learning to drive, which doesn't change anything yet, but will once he gets a license.
I hate the idea of having such a cramped budget, but we've lived on less before and I know we can do this with enough self-discipline. Once I can start growing food again that will help, too. The fruit and veggie portion of the food budget from May through October really goes way down.
At least with the turkeys and chickens gone I don't have any animals that are hemorrhaging money. The rabbits pay for their own feed as well as the ducks' feed. We don't get enough eggs for the ducks to be self-sufficient, but the rabbits make up for it. We are down to just 4 ducks and 1 drake now and they forage a lot. They also eat a lot of garden produce in the spring, summer, and fall.
This month has been a rough one with the animals. We lost Annabeth the duck shortly after the new year started and last night Luna Blue died. Luna Blue was the rabbit I had to feed with a dropper full of raw goat milk because her mother died when she was 3 weeks old. Only 3 out of 7 of that litter survived without their mother. But she was the runt and she needed the most help. I adored that rabbit. She was the sweetest thing.
We had a vicious wind storm yesterday and all I can think is that the loud noises scared her and she flipped and broke her back. We've had that happen before with really loud noises and her back was definitely broken. I've lost rabbits when the Med-Evac helicopter has flown illegally low over our house on the way to the hospital on three occasions and twice now to wind storms. It is frustrating. We have more wind on the horizon as well and I hope I don't lose anyone else. I'm not particularly attached to the others like I was to Luna, but I do love them and it is always hard to lose animals.
Today was payday and included in the envelope with the paycheck stub, which they mail out, was a $100 Master Card for Christmas. I wasn't expecting any such thing as DH has only been working there for 3 months. It was a pleasant surprise. We will be using it to pay for gas, since we are changing storage facilities and will be spending the next two days getting as much moved as possible. The storage unit is still leaking even after they supposedly fixed the roof.
We are getting an 18 x 10 and a 10 x 10 at the new facility. Total monthly cost will be $250 as opposed to the current cost which is $484, a savings of $234 a month. I wanted a 12 x 30, but they didn't have any available. I am going to see if they will let us skip the insurance. With the stuff with the current insurance, I am not sure we will ever see a payout and quite frankly it will probably be easier just to eat the loss, considering there is a $200 deductible and they are just difficult to deal with. Calculatedly so, I presume.
Anyway, the payday report is pretty small. I just paid 2 things.
$1400.00 to Citi Visa (paid in full each month)
+_549.19 Medical Bill
$1949.19 Total out
Some of this was money I already had in the checking account. With overtime DH's check was $1739.90. I currently have $94.07 left in checking. Citi is higher because we put a large dental bill on it, so I will have to make a payment on it next week as well to get it paid in full before the 1/3/08 due date.
I realized that I wrote out the check to the chiropractor last week, but I forgot they were going on vacation and would not be back until the 8th, so our next month's family plan is not actually due until then. I will void that check and dump it back into the checking account. I will pay the tithe out of that and the rest can just sit there. I will pay that bill out of 1/5/18 paycheck. So that tithe will be $173.99.
Next week will be a large payment to Citi again, the life insurances, and tithe. I will need to scrape up some money for the oral surgeon in January so my daughter can get her implant. I don't know how much that will cost, but I imagine somewhere between $1000 and $2000. Hopefully closer to $1000. Even if we had insurance it wouldn't cover that. It may have to come right back out of the Emergency Fund.
I got my payment from youtube today, so that was nice. I'll dump it into savings with the rest of my earnings. They are earmarked to go into an IRA.
I did some looking and if we go with a facility that is about 15 minutes away, we can get a storage unit that is 12 x 30 for $200. At least if it is available. That means that we could drop to one unit. Right now we are paying $252 for the large unit that is 10 x 25 and $130 for the small unit which is 8 x 10, so a total of $382 a month. That would be a savings of $182 a month. Wow, I really wish I had got on the ball sooner.
Then we could work on winnowing down what we have and hopefully eventually get a 10 x 20 for $170 instead.
We might get a discount on the first month as well. I know that most storage units seem to have a move in special where you get one month free if you sign a six month lease. I still need to do a bit more looking, though. There might be something else that has better prices.
Our one year of special internet pricing expired. No more $71.82. They bumped it up to $120, but DH went in and talked to someone and got it down to $90. I am not pleased, but it is better than $120. I hate living in a town where there is only one company for fast internet. The others are slow and cause constant buffering.
I have still been quite happy with Ting. We have had a very reasonable bill each month since switching. I am so glad we took the plunge.
I earned a $53 commission for November from Thrive Life. That is quite a step up from the $13 commission from October. I am not sure when that will be deposited in my account, though. I didn't realize until last week that they did not have my direct deposit information. So hopefully that will show up soon. It will go into savings with the rest of my earnings for this year. I want to open an IRA with what I earned this year and put in every cent. It is not much, but I think I will end up with around $500 between them and my youtube channel.
I am really so glad that I got involved with Thrive Life. It has made my life so much easier to not have to peel and chop things every day for dinner. I know freeze dried foods are not for everyone, but I have been so pleased with the quality of the products. And if I only ever could buy one thing from them and nothing else, it would be the diced onions. No more crying when I cut onions, no more dealing with onions that go bad or sprout before I can use them, no more pain in my hands all night after cutting up several cups worth of onions. So worth it.