gotpong said: debtblag said: Let's talk April 2016 net worth update. Over the last month,
My debt went down $1400 to $80,100
My retirement savings went up by $12,800 (!!!) to $123,000
Combined, my net worth increased by an incredible $14,200 to $43,000 this past month
As you all saw, the markets did very well. For things I could control, March was the first month a new raise in place and I wanted to get in the habit of saving as much as I could. Since the raise was about ten percent, I bumped my 401(k) deferral up from 50 to 60 percent -- the maximum our program allows. At this rate, I'll have maxed my 401(k) and Roth IRA with my April mid-month paycheck.Thanks! Just to be sure, is your company matching your 401k contribution. If so you will be losing out on money by maxing out your 401k in April and losing out on the match for the rest of the year. Not sure if this applies to you or not but if it does its something to think about.
Yes, I made sure to check on this. I get a company match semi-monthly up to 6 percent for the paycheck, but at the end of the year they do a true-up where they give the remaining match to anyone who contributed at least 6 percent. It saves me from having to do the math to ensure I'll be able to contribute a lot upfront, but still have 6% left over for the rest of the year without hitting the $18k limit too early
My retirement savings went up by $8,800 to $131,800
Combined, my net worth increased by $10,300 to $53,300 this past month
Dang. Well done jd2010. And I thought I had a good April
The good news is that I maxed out my 401(k) for 2016 this past month. I respect both sides of the front-loading vs. dollar-cost-averaging debate, but like knowing that whatever may happen for the last eight months of the year, I don't have to worry about scrambling to hit $18,000.
The bad news is that I maxed out my 401(k) for 2016. Having already maxed out my IRA and with an company HSA match that doesn't take kindly to front-loading, I've either got to get creative to get more of that sweet, sweet tax-advantaged savings or continue to add to a taxable brokerage account... like I did last month.
As for hitting $100,000 this year, I'm on pace for it too, but it'll be a stretch given that my salary won't go as far post-tax as it did pre-tax.
Very quiet May with nothing much to report. 401k about 50% funded and on track to max (employer matching makes me cost average).
Breakout of where my $ goes per month: +10k gross
-1.5k to 401k -4k to federal/state taxes FICA/Medicare -2k to student loans -1.5k to live off of =1k to short term savings
Based on these numbers I'm comfortable with hitting 100k net worth by year end. As far as asset allocation goes, if Yellen dicks around with rates again my loan payments will start to rise which means itll start making more sense to pay them more aggressively with short term cash. (Theyre currently at ~2.1% variable, with most of my short term cash in 36 month 2.5% CDs)
Here's my unnecessarily late June 2016 net worth update:
Retirement up $5,800 to $137,500 - Student loans down $1,800 to $76,700 ---------------- Net worth up $7,500 to $60,800
May was fairly quiet for me too, though still a good month. The question I'm playing with these days has to do with the growing amount of retirement savings in taxable accounts and whether it could work harder for me paying off debt. The student loans are currently around 3 1/2 percent, but tied to ICE LIBOR, so could certainly get much higher if the Fed raised rates, right?
Only notable transaction last month was ~6k in cash that I used to buy some index funds after the dip on Friday/Monday. Still on track... sizable bonus due to come in this month that should help pad the numbers.
I paid off another $1,500 of my student loan debt, bringing me down to $75,300 My retirement savings ended up $3,600 at $141,100 --------- In total, my net worth increased $5,000 to $65,900
Brexit gave me a real big scare late last month, putting me down around $15,000 at one point. Luckily, the indices I own mostly bounced back.
I started to have some serious doubts about having such an aggressive portfolio. It started to make the idea of instead sending excess cash to pay down my 3 1/2 percent student loans. When the dust settled, I decided the answer is that I should check my portfolio value once a month instead of every hour.
Halfway through 2016, my debt's down $9,000, my retirement is up $41,000, and my net worth is up an even $50,000.
debtblag said: It started to make the idea of instead sending excess cash to pay down my 3 1/2 percent student loans. When the dust settled, I decided the answer is that I should check my portfolio value once a month instead of every hour.
The jumps are scary! That being said, you've just discovered that your investing has a ton of volatility. This is where I point you to the bogleheads forum.
Personally though, unless you have absolutely any concerns about your job, I'd continue on the present course. While the 3.5% student loan is both a guaranteed return AND if paid off would be a nice cash flow improvement, you'll only be able to use your 2016 tax-advantaged space THIS year. The opportunity cost of the 3.5%, absent certain concerns/circumstances seems a bit higher than that of investing in tax-advantaged space. Ie - right decision I think.
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