Ms. Money Savvy » IRA

Almost There!

savvy — Fri, 07 May 2010 14:51:03 +0000

I’m so close I can taste it. Today is payday so I sent a chunk of money to the car loan. God willing, I should make the last payment in two weeks. Though I haven’t been as good as I could be (still don’t bring my lunch to work), I’ve done a pretty good job of eliminating frivolous spending.

As soon as the loan is paid, I will restart automatic transfers to my IRA. In addition, I’ll set up an auto transfer to a ‘car fund’. My car is only six years old and has low miles so I’m not planning to buy another one for at least four years. However, it would be nice to pay for the next car with cash. The only problem is that I hate letting savings (other than our emergency fund) accumulate. I always think the money would be better used to accelerate our mortgage payments. One of my goals/criteria for early retirement is to have the house paid off. It’s much easier to retire when your expenses are low. How do you balance savings vs debt repayment?

Almost There

savvy — Sun, 02 May 2010 01:14:28 +0000

In a mere five weeks, I will finally have my car paid off. Three years and three months after I bought it. I love my car but having a car payment got old QUICKLY. Needless to say, I want to pay for the next one with cash. After the car is paid off, I will boost the slush fund (used to pay for unexpected expenses). Then I will restart my IRA contributions as well as start saving for the next car.

We have a few trips planned (both business and pleasure) over the next few months so I need to be careful not to go overboard. I’m also realizing that there a few things that will be convenient now that I’ve started running. I want some earphones that wrap behind the ear since the earbuds I have fall out when I run. Also, I want some type of armband or pouch to hold my iPod. Mr. Savvy and I registered for a 5k in June so that’s a running expense as well. We won’t even talk about the cost of Mr. Savvy’s newfound hobby, road racing (bicycling). He plans to do the Tour de Cure later this month and has been some items to prepare for that.

All in all, we’re making progress albeit slowly. We’ve also got some other stuff going on so things should smooth out in the next month or so. What’s new with you guys?

Technical Difficulties

savvy — Wed, 03 Feb 2010 18:50:13 +0000

My apologies for the recent technical difficulties. I’m back up and running. That said, I spent Saturday doing our taxes. There are a few forms that we’re waiting on (I’m looking at you ShareBuilder) but other than that, we’re done. While we owe less than I thought we would, it’s still a bundle. Therefore, we either need to start making quarterly estimated payments or have extra withheld from our paychecks.

In other financial news, I’m still on track to have my car paid off by June but it’s debatable whether or not I’ll max out my IRA. I was a bad girl and dropped some loot to go on a ski trip in April. I also have spent entirely too much money at the hair salon but we won’t talk about that. There are a couple of other financial decisions in the works but I’ll discuss those later. We’re one month into the new year. How are YOU faring with your financial goals?

Happy New Year

savvy — Sat, 02 Jan 2010 16:00:02 +0000

photo credit: jurvetson

Happy New Year to everyone! The partying is over and now it’s time to head back into reality. I start back at work and school on Monday. I didn’t make any resolutions but I do have a few financial goals for 2010. Unfortunately, I may be stymied by the fact that our bills are increasing. I got a notice from our mortgage company that our escrow payment is going up ~$110/month! This is because both our property tax and insurance have gone up. Bleh. Next, we got a notice from DirecTV that they’re raising their prices. I asked Mr. Savvy to call and cancel some of our services but I think he’s addicted.

That said, my first goal for this year is to finish maxing out my IRA for 2009. I’ve contributed $2000 thus far so I need to contribute another $3000 prior to April 15th. I could have accomplished this already if we hadn’t gone on so many trips this year but such is life. Next up is to have my car paid off by June 30th. When I bought the car, my goal was to pay off the loan as aggressively as possible but I was a bad girl and life/fun got in the way. We’ve taken numerous trips, built a patio in the backyard, bought dining room furniture, etc. Those are the only two goals I’m going to set for now because those are most important to me. Once I get the car paid off, I’ll set some new goals. I’ll also be adding some graphs to the sidebar to get up with my progress. What are your financial goals for this year?

Year-End Money Moves

savvy — Mon, 28 Dec 2009 18:19:14 +0000

The end of the year is fast-approaching. That means I spent a few hours yesterday looking at our finances. Due to an extra paycheck that I wasn’t expecting (it was scheduled for Friday 1/1 but that’s a holiday so it was moved to Thursday 12/31), I was able to max out my 401k. I originally expected to be a few hundred dollars short so that was a pleasant surprise. However, Mr. Savvy is on the same pay schedule as me. That meant he exceeded the max by several hundred dollars. That money went into after-tax contributions. I guess it’s done now but I would have much rather that money go into his SEP-IRA instead.

Next, I tallied up my total income for the year, including the extra paycheck. I sent an extra payment to our church online to ‘true up’ my tithe for the year. I also need to remember to take the bag of stuff in my closet to Goodwill before the year is over.

Next, I sent another $200 to my IRA. I’m nowhere near maxing that out but will before the April 15 deadline. Once I’m done contributing, I will do a Roth conversion. I also took a look at our asset allocation. There are a few tweaks to be made but there’s no rush for that. What year-end money moves are you making?

K.I.S.S.

savvy — Wed, 25 Nov 2009 12:00:28 +0000

photo credit: jannemei

K.I.S.S. Keep it simple, silly. I decided that our finances have gotten much too complicated as of late. Three checking accounts and five savings accounts are just too much. As as of December 1, it will be bye-bye ING. Though I love them and have been happy with them, there’s no longer the need for them. The joint checking account will be closed and those bills will be paid from one of our credit union accounts. The two savings accounts have already been closed and the money put into the credit union account. So we’ll be down to two checking accounts and three savings accounts – maybe still a bit much, but better.

Next up on the chopping block will be ShareBuilder. As of today, I’ve sold the stock from my brokerage account and the proceeds will be put into my traditional IRA. So that account should be closed by December 1 as well. I’m also strongly considering moving my ShareBuilder Roth IRA to the brokerage where I have my traditional IRA. That will mean one less account to track and easier asset allocation.

How many accounts do you have? Do you think it’s too many? What are you doing to simplify your finances this year?

Stagnant

savvy — Mon, 27 Apr 2009 14:34:01 +0000

photo credit: zayzayem

I promised the Frugalista that I’d get back on the bandwagon. I’ve been slacking on my finances lately (like not contributing enough to my IRA) but no more. This week, I’m going to actually do all the things on my financial to do list.

I need to re-evaluate our asset allocation.
I also need to try to convince Mr. Savvy to ditch the horrible variable universal life insurance he bought when he was fresh out of college (many moons ago).
We have several trips planned (and a couple penciled in) that we need to budget for.
I’m also delinquent in regard to registering for a class this summer (note to self – check on validity of tuition tax credits/deductions for 2009) and sending a wedding card/check to one of my favorite cousins.

Obviously, I haven’t been doing anything for the last few weeks. What about you guys? I hope you’ve fared better than I.

Confessions

savvy — Wed, 15 Apr 2009 14:39:08 +0000

photo credit: cacophony76

Okay, I’ll confess. I’ve been a bad girl. While I PREPARED our taxes back in February, I have yet to file them. I’ve always wonddered about those last-minute filers and now I am one. Rest assured, I won’t be one of those people in line at the post office at 11:55pm though. I will be e-filing when I get home from work.

Next, the confession of which I’m most ashamed…I spent way more money than I should have for the past few months which means I didn’t max out my IRA as intended. I made the last deposit this morning for a total of $3785, which was short of my $5000 goal. Mr. Savvy doesn’t like taking money out of our e-fund and I agree. As far as we’re concerned, that money doesn’t exist. So not being able to make the full contribution is paying penance for my bad behavior. I promise to do better for this year.

What are your money confessions?

Suze Orman’s Save Yourself

savvy — Wed, 25 Mar 2009 14:58:38 +0000

photo credit: feverblue

Last year, Suze Orman and TD Ameritrade sponsored a Save Yourself promotion. You would receive a $100 bonus for opening an IRA at TD Ameritrade and automatically funding it with at least $50/month for twelve months. I signed up and last week, I received my bonus. It’s nice to receive a 16% return (on the $600 total that I contributed) for doing nothing.

This year, TD Ameritrade is offering a similiar promotion. However, this time you must open a NON-retirement account and save at least $100/month. These terms aren’t as good as the previous offer’s but an 8% return is still nothing to sneeze at. I’m debating signing up for this promo too. Anyone else receive a bonus?

Go to Suze’s site to learn more.

Reminder – Kiplinger’s Jump Start Your Retirement

savvy — Fri, 30 Jan 2009 12:00:37 +0000

photo credit: habi

Once again, Kiplinger’s Magazine is offering FREE retirement advice. Today, you can call or go online (9 am – 6 pm EST) to talk with NAPFA financial planners. Just call 1-888-919-2345 or go to www.kiplinger.com/yourretirement/jumpstart/.