Review of 2006 financial goals
By and large we are quite happy with the progress we’ve made in 2006. As of right now we are slightly ahead of schedule according to our long-term plan.
However, this is the first year in which we were unable to complete all of our financial goals as set forth at the beginning of the year which was a minor disappointment. But that disappointment is quickly diminished when we look back and see our early progress in the paying off of the second mortgage debt, which was only expected to begin in 2007.
Below are our 2006 financial goals with comments following each:
Goal: Continue to make the maximum allowed contributions to our retirement accounts as we've done in the past - wife’s 401k ($15,000), husband’s Simple IRA ($10,000), and both Roth IRAs ($8,000). However, this time around we will be more aggressive in our contributions at the beginning of the year to maximize our long-term returns.
status: completed
Comments: Each year our first order of business is to take full advantage of our retirement account options. Just like in previous years, we were able to make the maximum-allowable contributions and were able to do so at an accelerated pace. In fact, we were able to max out the husband’s Simple and our Roth IRAs in record time.
Goal: Continue to contribute to our cash reserves each month until we reach a total of $13,000. The majority of this will be designated as our emergency fund (3 months of living expenses = $9,000). The remaining portion will be used to pay property tax on our home at the end of the year which will be $3,869.48 according to the bill we received in October. Last year saw us contributing $800 per month to quickly bring us up to speed; this year will be a more relaxed approach with monthly contributions closer to $450.
status: completed
Comments: It may have taken us a couple of years, but we were able to finally complete our cash reserve. Having the extra cash set aside has brought a certain level of financial comfortability we had never experienced before.
Goal: Transfer the student loan #2 balance to a 0% no-fee credit card and completely pay it off by the end of the year.
status: completed
Comments: Any time you are able to eliminate a debt it certainly brings a level of satisfaction. We could have paid this off sooner, but the balance transfer offer allowed us to max out our Roth IRAs and the husband’s SIMPLE IRA contributions earlier which turned out to be a major contributor in us reaching our net worth goal this year (bottom).
Goal: Build enough available credit to transfer the second mortgage balance to a 0% no-fee credit card(s) in 2007.
status: completed
Comments: This didn’t take as long as we had previously thought and we’re now in the position to transfer the remaining second mortgage balance to one of the recently acquired credit cards.
Goal: Find a new job for the husband who has achieved all that is possible with his current employer and is looking to make a move that will further his professional growth and better help in accomplishing our goals towards achieving financial independence. The primary requirements for the new position will be greater challenges and responsibilities, higher income and a full 401k package with an employer match.
status: failed
Comments: This is the first goal since starting this blog that we have been unsuccessful in completing. It will remain in our goal set going into next year and will be given the highest priority. Though the husband was able to garner a handful of interviews, the simple lack of commitment hindered our progress here. As we’ve mentioned just recently, we need to work extra hard in the coming years on growing our incoming revenue to reach our ultimate goal and this is an important step in doing so.
Goal: Reach $150,000 in net worth by year end.
status: completed
Comments: Back when putting together our financial goals for 2006 we honestly did not think we could reach this mark without the job change for the husband as described above. But, with the help of favorable market conditions, our investments were able to provide enough return to complete our net worth goal. This will probably mark the last time we will ever be able to double our net worth in a year’s time.
However, this is the first year in which we were unable to complete all of our financial goals as set forth at the beginning of the year which was a minor disappointment. But that disappointment is quickly diminished when we look back and see our early progress in the paying off of the second mortgage debt, which was only expected to begin in 2007.
Below are our 2006 financial goals with comments following each:
Goal: Continue to make the maximum allowed contributions to our retirement accounts as we've done in the past - wife’s 401k ($15,000), husband’s Simple IRA ($10,000), and both Roth IRAs ($8,000). However, this time around we will be more aggressive in our contributions at the beginning of the year to maximize our long-term returns.
status: completed
Comments: Each year our first order of business is to take full advantage of our retirement account options. Just like in previous years, we were able to make the maximum-allowable contributions and were able to do so at an accelerated pace. In fact, we were able to max out the husband’s Simple and our Roth IRAs in record time.
Goal: Continue to contribute to our cash reserves each month until we reach a total of $13,000. The majority of this will be designated as our emergency fund (3 months of living expenses = $9,000). The remaining portion will be used to pay property tax on our home at the end of the year which will be $3,869.48 according to the bill we received in October. Last year saw us contributing $800 per month to quickly bring us up to speed; this year will be a more relaxed approach with monthly contributions closer to $450.
status: completed
Comments: It may have taken us a couple of years, but we were able to finally complete our cash reserve. Having the extra cash set aside has brought a certain level of financial comfortability we had never experienced before.
Goal: Transfer the student loan #2 balance to a 0% no-fee credit card and completely pay it off by the end of the year.
status: completed
Comments: Any time you are able to eliminate a debt it certainly brings a level of satisfaction. We could have paid this off sooner, but the balance transfer offer allowed us to max out our Roth IRAs and the husband’s SIMPLE IRA contributions earlier which turned out to be a major contributor in us reaching our net worth goal this year (bottom).
Goal: Build enough available credit to transfer the second mortgage balance to a 0% no-fee credit card(s) in 2007.
status: completed
Comments: This didn’t take as long as we had previously thought and we’re now in the position to transfer the remaining second mortgage balance to one of the recently acquired credit cards.
Goal: Find a new job for the husband who has achieved all that is possible with his current employer and is looking to make a move that will further his professional growth and better help in accomplishing our goals towards achieving financial independence. The primary requirements for the new position will be greater challenges and responsibilities, higher income and a full 401k package with an employer match.
status: failed
Comments: This is the first goal since starting this blog that we have been unsuccessful in completing. It will remain in our goal set going into next year and will be given the highest priority. Though the husband was able to garner a handful of interviews, the simple lack of commitment hindered our progress here. As we’ve mentioned just recently, we need to work extra hard in the coming years on growing our incoming revenue to reach our ultimate goal and this is an important step in doing so.
Goal: Reach $150,000 in net worth by year end.
status: completed
Comments: Back when putting together our financial goals for 2006 we honestly did not think we could reach this mark without the job change for the husband as described above. But, with the help of favorable market conditions, our investments were able to provide enough return to complete our net worth goal. This will probably mark the last time we will ever be able to double our net worth in a year’s time.
posted by Brian at
7:38 AM
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