About Me

Fern

FINANCIAL GOALS

1. Pay off mortgage by 2015.
Balance as of 12/27/08: $67,000.

2. Save $1.2 million and retire from rat race corporate life by age 60. (That's $1 million for retirement and $200,000 for healthcare costs.)

3. Build up Emergency Fund.
Goal: 8 mths worth of living expenses, or $24,000.
Current savings: $7,213

Current investments/savings:
(Updated 1/4/09)
IRAs and 401(k): $244,086
Taxable investments: $90,731
Total savings: $334,817

Current approx equity in my house:
About $281,000

Debt:
None, other than my mortgage.

Total net worth not including home: $334,817

Whatever Social Security I receive I'll consider a "bonus." It's not factored into my calculations. There are many uncertainties in retirement planning, including income fluctuations, healthcare costs, my own ability to continue working, inflation, stock market gyrations, the solvency of the Social Security and Medicare entitlement programs and other factors beyond my control.

At age 60, I'll either find p/t work that offers health insurance or find a "fun" full-time job in my hometown, like working for my local newspaper. I may also revive my freelance writing gigs.

The purpose in working at this point will not be the income, but the healthcare coverage which I'll need until I can pick up Medicare at age 65.

My mortgage will be paid off at age 56. I plan to defer collecting Social Security for as long as possible, preferably until age 70.

Withdrawing 4% of $1 million would give me $40,000 a year to live on. Once i begin Social Security, i'll have even more.

This is The Plan. (I'm in my late 40s, but hey, I really like to plan ahead.)

A Few Life Goals

Visit every national park in the country.

Read a biography or autobiography of every president, starting with George Washington and ending with President Obama.

Volunteer in a US presidential campaign.

More dismal news on rising costs..

October 9th, 2008 at 02:05 pm

In case you were in any kind of denial, here's an excerpt from a story on www.marketwatch.com:

All major categories of homeowner expenses increased faster than incomes between 1996 and 2006, the center reported in "Stretched Thin: The Impact of Rising Housing Expenses on America's Owners and Renters."

While mortgage payments increased 46% during those 10 years, utilities increased 43%, property taxes increased 66% and property insurance increased 83%, according to the study. But homeowner incomes increased just about 36%.

The full story is here: http://www.marketwatch.com/News/Story/Story.aspx?guid=4335322072fd4152b15eb043a92cfef7&siteid=nwhpf&sguid=L7yfy10mS0G-tGJJC23k-A

Kudos to all those who remain in the no-heat contest. No one else has written to tell me they turned on the heat, so we're all still in this together.

Fortunately for us in the Northeast, we're expecting mild temps in the low 70s for the rest of the week. And with all the terrible economic news (the Dow dropped again today like a lead weight), I'm looking at this no-heat challenge as more and more a necessity, not just entertainment.

On top of that, www.accuweather.com is forecasting the coldest winter in the Northeast in five years. So hang onto your mittens!

Posted in Uncategorized | 6 Comments »

6 Responses to “More dismal news on rising costs..”

monkeymama Says:
October 9th, 2008 at 02:11 pm

Our costs haven't risen hardly at all (the ones mentioned). I guess it depends on a lot of factors.

Don't be jealous though, healthcare is wiping us out! & I do figure the rest will be inevitable.

My house has settled around 80 degrees; no heat.
HouseHopeful Says:
October 9th, 2008 at 03:21 pm

I'm still without heat. In fact, the temps increased a bit here, which made things MUCH easier I hope to not turn it on til at least November.
LuckyRobin Says:
October 9th, 2008 at 03:46 pm

Guess I'm really glad we bought our house in 1998 then and have only six years left to go on our mortgage. We've had temps below freezing all week here at night so we are using the wood stove, but the wood was free and the propane is off, so not doing too badly on that score now. Wasn't here when you started your contest and did have to use propane a couple of days in September anyway.
dmontngrey Says:
October 9th, 2008 at 04:55 pm

Just loving these new windows here so far! Even on mornings where the temps have been in the 40s, it has been high 60s in the bedroom! You know I'll cave first for animals/plants before I get cold. Ah well, still a while I hope.
Ima saver Says:
October 10th, 2008 at 07:39 am

No heat for me yet either. Just wearing a sweater to stay warm.
princessperky Says:
October 10th, 2008 at 11:49 am

Still with my window open here....

I do prefer some things about living down south.
I did however pack a sweater for camping this weekend.

Wild Blue Yonder

Savings are stored possibilities.

More dismal news on rising costs..

6 Responses to “More dismal news on rising costs..”

Leave a Reply