2010 State of the Union

I've always considered New Year's resolutions to be as corny as the Hallmark Holidays. However, there is merit to setting goals, and one of the tools to help achieve those goals is to write them down or tell other people about them; It's an accountability thing.

We are in a good place as far as our net worth goes. I have our annual net worth goals mapped out up to $1 million, which I'm forecasting we will achieve 14 years from now. After taking a hard hit in 2008, we recovered those losses and then some in 2009, exceeding our net worth goal by 2.2% for the year.

Barring another down year in the stock market, we should meet or exceed our 2010 net worth goal. I increased my 401(k) withholding to 3% pre-tax and 5% after tax. I contribute after tax dollars because you can only withdraw pre-tax 401(k) money after age 59.5 without paying a 10% early withdrawal penalty. Since I plan to retire much sooner than that, I make after tax contributions, which are not taxed at withdrawal, and have far fewer restrictions if withdrawn before age 59.5. Separate from our net worth situation, we need to significantly increase our cash reserves in 2010. We have one vacation already paid for (New York), and one still to plan (Key West, FL for Mel's 30th birthday).

Given our penchant for travel and the age of our roof, deck, driveway, and back yard fence, it's going to be challenging to build up enough cash savings this year.

| Posted in » financial, goals