Retirement Nestegg Report – May 2007

Retirement Nestegg Report – May 2007

Heh – another great month for my retirement nest egg. Up over 7% this month and creeping up on the $60,000 mark. It’s amazing how fast your accounts grow when you make regular contributions and just let the magic of the stock market do its thing. It’s been an amazingly long run of stellar stock market returns. In fact I think the last 5 years have been one of the longest consistent bull runs ever. Guess that means odds of things heading south for a bit are slightly higher.

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Retirement NestEgg Report – April 2007

Retirement NestEgg Report – April 2007

Another pretty good month for my retirement nest egg. The stock market sure has been on a good tear for a long time now, which honestly kind of stinks. While it’s nice to see your accounts going up every month, I certainly wouldn’t mind being able to buy stuff on the cheap at my age if we went through a couple years of downturn. One thing to note is for the last two months I have missed my Roth IRA contributions. This is due partly because I decided to splurge and pay off my HELOC. I’m hoping this month I’ll be able to squeeze some money into my Roth IRA accounts, but if not either way I plan on still maxing them both out by the end of the year (this is the first year I didn’t max both accounts out on Jan 1 – again due to me wanting to eliminate my HELOC first). Anyway here are the numbers.

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Net Worth: How I stack up

Net Worth: How I stack up

I was perusing around CNN this morning and they had a little calculator that would compare my net worth with the average net worth of other’s around me. I’m really not a big net worth guy, but figured I’d check it out to see where I stand. Since I took my new job my income is somewhere around $80,000 when you add in bonuses and side jobs I do. Here are the results.

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Festival of Under 30 Finances #21

Festival of Under 30 Finances #21

Welcome to the April 20, 2007 edition of festival of under 30 finances. There were a number of high quality entries and I did my best to pick out the articles that I best thought fit the spirit of the carnival. I had to exclude a few articles due to them having nothing even remotely close to finances for people under 30 and did have a couple duplicate submissions where I just picked the article I liked better.

For this Festival I asked the question

At what age do you want/plan to be financially independent (IE you don’t have to work full-time if you don’t want to) and what is your plan to get there.

A couple people answered the question and I will highlight the responses here.

  • John at Broke Now Rich Later wrote ” I want to be financially independent at 42. I’d like to have over $1mm saved in retirement funds, my house paid off and my kids’ college paid for. At that point, I no longer need life insurance and my income needs go way down. By 46 or so, I should only “need” an income of $30k or so. That leaves me wide open with options. More realistically, I might just stay in my career. By 55, I’d like to be able to retire and travel and be with grandkids. My goal for then is having $2000 a week in after tax income in 2007 dollars. That should fund just about anything I would want to do.”
  • The Finance Journey wrote an entire article on the subject – “Ideally I would like to have enough money to sustain me without taking away from principal with reinvesting for inflation….I think I will probably be able to think about retiring around 52 which is 26 years from now. By this time with inflation i will need about $4 million dollars for this plan…I don’t really have any magical plans to make this happen. Currently I am contributing the maximum amount to my 401k and ROTH IRAs”
  • Wanda at Well-Heeled wrote – I honestly don’t know how to define “financial independence.” And I can’t forsee myself leaving the workforce for extended periods of time, much less retire early, unless I win the lottery or something equally unlikely happens. But just to grab a figure that seems good to me, if I have $10 million (inflation-adjusted) by the time I’m in my 50s, I might become an independent consultant or work on non-profits.
  • Mr. Credit card answered – I plan to be financially free when I am 40 (or early forties). That means having a passive income of at least $20,000 a month. I plan to achieve that through a few businesses that will generate income for me.
  • I also wrote an article on this topic which can be found here. “Ideally I think I would like to retire in my early 40s. Now when I say “retire” I mean don’t necessarily have to chase the highest paying job and can do something that gives me the flexibility I want to really spend time with my family…….”
  • Finally WenchyPoo had the best answer – “Answer to question: already financially independent.”

Thanks to everyone who answered the question and now onto the Festival

Editor’s Choice

David Weliver wroteWhat I’ve Learned About Money posted at Money Under 30. – Eloquent but simple article that really fits spirit of the carnival.

Priya Jestin tells about the 10 Biggest Mistakes Made by Poor People That Will Keep Them Poor posted at 1031 Exchange Lowdown. – probably applicable to more than just “poor” people, but in my opinion he hit the nail on the head with many of them

ISPF explains Here’s Why I Like My Relatively-Frugal Lifestyle posted at Grad Money Matters. – in my opinion being frugal is more fun than spending on whatever you want. It’s also a great stress reliever and simplifies your life so that you can concentrate on what is really important to you.

Silicon Valley Blogger writes A Job Quitter’s Primer: 15 Ways To Resign posted at The Digerati Life. – probably something that many of us 20 year olds will have to do a couple of times. Great advice on how to do it properly.


And here are the rest of the articles

Wanda explains why I am NEVER paying back my student loans (early) posted at Wanda – Even though I don’t have as good of deal as Wanda I share her sentiment. My loans are locked in at about 2.5% and I am stretching out my repayment plan as long as they will let me. You’d be nuts to pay back money that is free or close to it.

The Frugalist writes Why Live Frugally? 15 Ways Frugality Makes You Happier, Healthier, and Sexier posted at Frugalist. – I love frugal articles

Ted Reimers presents 10 Tips on How to get a College Scholarship posted at CampusGrotto, saying, “Student Loans are a major cause of financial debt. Here are 10 tips to getting scholarships to fund your education.” – So often I think of under 30 as 20 year olds, but for you high schoolers this is a great list of tips on how to get additional scholarship money.

Sagar Satapathy wrote The Shopaholic’s Guide to Getting your Expenses under Control posted at Debt Consolidation Lowdown. – Kick that nasty habit and gain back control over your finances.

pfodyssey presents Pareto?s Principle (80/20 Rule) of Personal Finance posted at My Personal Finance Odyssey. – Great list of steps on how to get your financial life in order.

Mr Credit Card presents Roadmap of Career Paths and Financial Freedom (Ask Mr Credit Card’s Blog) posted at Ask Mr Credit Card’s Blog

Bryan C. Fleming presents Saving Money: $704.51 in 14 Weeks posted at Bryan C. Fleming.

Henry presents Lower Your Student Loan Interest With Automatic Payments posted at Binary Dollar!.

Pushpa Sathish presents 15 Financial Lessons from the Demise of Anna Nicole Smith (Yes, I’m Serious) posted at Credit Card Lowdown.

WBL presents Wealth Building Lessons » Blog Archive » How To Have An Extra $1000 In Monthly Retirement Income posted at Wealth Building Lessons.

Wanda Grindstaff presents Plant Your Flag and Claim Your Success posted at Creating Abundant Lifestyles Begin With Abundance Mindset

Wenchypoo presents Dollar Stretcher TNG–The Next Generation (L-O-N-G) posted at Wisdom From Wenchypoo’s Mental Wastebasket

Amy Pedersen presents Fair Isaac Corporation, What a Wacky Bunch of Statisticians Dedicated to Credit posted at Your Credit Score Secrets

FIRE Getters presents Automatic Enrollment In 401k Retirement Plan – A Revolution? posted at FIRE Finance.

David presents Becoming a Millionaire Investing $5,000 – Reality of Fantasy? posted at Worldwide Success.

John presents Morning Rant – Bad Bills and Worthless Change posted at Broke Now, Rich Later

Steve Faber presents – A few last minute tax deductions posted at DebtBlog.

Web Admin presents Mutual Funds: Newer is Sometimes Better posted at Stock-Net.com.

The next edition of the Festival of Under 30 Finances will be held May 4th at No Money In Poetry. You can start submitting your posts here.

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When I think I want to retire

When I think I want to retire

I will be hosting the Festival of Under 30 Finances this Friday and as part of the Festival I asked the submitters a question

“At what age do you want/plan to be financially independent (IE you don’t have to work full-time if you don’t want to) and what is your plan to get there.”

I figured I’d take a quick stab at the question myself. As you may or may not know I have a goal to have put away $100,000 in principal by the time I reach age 30. I’ve been making pretty good pace with that goal and I see myself reaching it, but it really doesn’t say much about my long term aspirations and goals. Theoretically speaking I could quit saving completely at age 30 and if I waited till I was 60 to retire and got 8% return on my money – I would have over $1 million dollars at age 60. Certainly $1 million dollars won’t exactly let me live the life of luxury in retirement, but I could probably survive. I however don’t plan on stopping my retirement savings once I reach 30 so I can probably shoot a little higher.

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Stop crying me a river – you took on the risk now deal with the consequences.

Stop crying me a river – you took on the risk now deal with the consequences.

As you may have noticed I run some advertising on my site. I try to keep the obnoxious factor to a minimum and generally only accept sponsors from sites that won’t offend me or my readers. Well this last week I received a sponsorship offer from a website that is all up in arms about Argentina defaulting on a bunch of it’s loans to the international community. They have an online petition and are selling it as Argentina is stealing from teacher’s retirement funds. I ended up turning down the sponsorship offer and here’s why.

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