Tag Archives: retirement

2023 Year in Review – January 2024 $250k

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Looking back, January 3, 2023 my net worth was $173k, was aiming to hit $200k. Here we are now at the end of 2023 and I’m reflecting on the year.
Accomplishments , Big Purchases and Life Changes:
-Got promoted in August and now earning the most of my entire life. Stress levels go up and down but overall I’m satisfied with where I’m at for now, 3 years from now might be different story. The top 10% in the state have an income of $239,765 according to an article on Yahoo Finance. Maybe one day I’ll get there, but even if I don’t I can have an amazing life without it.
-Weight – Literally the same weight I was a year ago. The fact that I didn’t gain any I suppose is an accomplishment, but I really was hoping to lose a significant amount.
-Switched phone plans – T-Mobile has been a really good experience overall, much improved over the distaster that was AT&T. Basically hey we’re going to charge you for 5G even though there isn’t a tower where you live and not tell you at all about it.
-TV – Bought a 65″ TV and had a friend help me mount it to the wall. Mini-LED, bright colors, deep blacks and really makes the room look a lot cleaner. Crazy good deal on it at $649.99. The TV I bought in 2017 is now what I keep in the bedroom and gets used on rare occassions.
-Gym – Switched from Anytime Fitness to Equinox. I was going to CVS and the first Anytime Fitness location I went to which was rundown, super tiny and never had any of the equipment updated wasn’t there anymore. I just saw a For Lease sign in the window. So far it’s been a great experience, it’s clean, new, never super congested and has some nice amenities. Still haven’t registered for any classes yet but I want to give it a go for something lighter intensity.
-Car – Bought a CPO one to replace the lemon-adjacent 2023 Acura Integra. The TLX wowed me between the extra power, SH-AWD handing, comfortable seats, 17 speaker ELS audio system. It did involve me financing an additional $16,700 and putting $2k down. I used money from a cancelled warranty to go right to the principal. The total amount I’ve financed has dropped from $21,500 down to $17,746 or -$3,754
-Dog – I told her once that I’ll keep fighting as long as she wanted to. I knew that day was coming and tried everything possible within reason to prolong her life as long as possible. Losing her on Oct 31 was one of the biggest life changing events of mine since moving into this apartment in 2014. I still know I made the right choice after having her on 3 medications, battling 3-4 health issues at once. I didn’t go into a deep depression or anything but went through several waves of grief. The apartment still feels eerily quiet without her. Between the noise she would make eating or drinking from her bowl, the baby growling at me when she wanted a treat, the snoring, the very specific way she would sniff out treats like a pig. Still not sure if I’m going to get another dog anytime soon.
-401k – For all practical purposes I maxed out my contributions for 2023. Came in about $200 short due to a calculation error on my part. I didn’t listen to all the people saying the economy was going to implode. I mean it still could in the future but dollar cost averaging has worked in my favor
-Roth IRA – Contributed to it but still working on closing the contribution gap. Have $2,587 to go by April 15. $3,913 of contributions so far for the year is nothing to scoff at though
-Concerts – Saw Janet Jackson live in June which was significant since I’ve been listening to her music for over 30 years. Buying tickets on presale is a game changer given these incredibly high prices.
-Movies – Since getting my AMC Stub’s membership I’ve seen 20x more movies in the theater than I used to. In order from most to least recent – The Color Purple, Saltburn, Wonka, Wish, Hunger Games; The Ballad of Songbirds & Snakes, Next Goal Wins, Priscilla, The Marvels, The Exorcist: Believer, Strange Way of Life, The Creator, Dumb Money, A Haunting in Venice, Bottoms, The Equalizer 3, Teenage Mutant Ninja Turtles: Mutant Mayhem, Strays, Gran Turismo: Based on a True Story, Barbie, Mission: Impossible – Dead Reckoning Part One, Joy Ride, Indiana Jones And The Dial of Destiny, Elemental, The Flash, The Blackening, The Little Mermaid, Guardians of the Galaxy Vol. 3, Air, Chevalier, Renfield, The Super Mario Bros Movie, Dungeons & Dragons: Honor Among Thieves, Creed III, Cocaine Bear

Other Items / Reflections:
-I didn’t do any traveling this year. I was supposed to go to Chicago in August for my 40th and got sick with a double ear infection.
-Last week I got Covid-19, for the 3rd time. I thought about doing a last minute trip, but my mom would still be working so that kind of defeats the point. A New York Spring 2024 trip is in the cards. Also want to plan some type of trip with my boyfriend since he loves travelling and is good company
-I started a new Instagram account to track my fitness. That will essentially be my accountability partner along with the YouTube content. Short updates only, I can ramble on and get off topic with the best of them so nothing more than 5 minutes a video is ideal.
-Dining Set – Guy came on time and was kind enough to drag each of the three boxes to my living room instead of just leaving it “on the street” or outside door. Tipped him $10 as a thank you. Assembled 4 chairs yesterday after a bunch of mini mental breakdowns. Got dizzy between outgassing of the equipment and only having cold brew coffee to drink while intermittent fasting. A neighbor saw me struggling with carrying the old dining room table to the curb and offered to help. Not even 2 hours later the table and all of the 5 chairs were gone. I view that as a donation to charity.
-Credit Cards – Effectively down back to 0 again. The M3 Max MacBook Pro paid off, car insurance for 6 months, 1 years of renters insurance, all the clothes I bought for Black Friday / Cyber Monday
-Met an amazing guy I first matched with on July 10th through Tinder and met in person with on Sept 24th. Lucked out since he easily could’ve unmatched me or met someone else after I went silent since I thought someone else wanted to be exclusive and dumped me 2 weeks after my birthday. No one is perfect but I feel like we have a lot in common and he actually shows an interest in dating me.
-Turning 40 was a huge milestone for me. I’ve taken a long hard look at where I’ve been and where I plan to go on this journey called life. I see people who are successful financially but they look old and some of them are in really poor physical shape. Others don’t let go of the party scene and they’re still getting crazy and drunk every weekend. My body no longer lets me do that so I’m mostly a non or semi-social drinker.
-Time is a precious resource – Whether it be regarding chasing after people who show no effort, or simply how I use the hours in a given day. I think back to the year 2000 sometimes and about all that was happening in that era and how far things have progressed since. The reality is the difference between 1976 and 2000 is the same as 2000 and 2024. People get old, have kids, move, die, move up, lose everything, become politically extreme or one-sided about everything. Or they just want to find peace and experiment with something different.
-Cars are expensive. Even a moderately higher end car like my 2023 Acura TLX for $46k + tax. I put $2k down and still increased my loan balance to $21,500. The BMW I wanted was impossible to find and too expensive, maybe in a few years. Lifestyle creep is a real. Be reasonable but get something you like is how I like to approach larger scale purchases. The author Ramit Sethi whom I’ve looked up to for some time drives a 20 year old Honda Accord but will spend thousands on a jacket he will keep for years and years. We all prioritize spending in different areas.
-Doing the math saves you a lot of trouble down the road. It helps negotiating salaries, large scale purchases like a vehicle or a home, or how to plan to hit a debt payoff goal by a certain date. Even on my salary with interest rates the way they are I can’t afford the $325k home I was looking at. With a minimum amount down still looking at over $3100/mo in expenses. To get to the well-respected 20% down I’d have to start saving now for 3-4 years down the line. I did a little quick math. It would take $81k to be able to do a 20% down payment and cover the buyer’s closing costs. Even if I don’t buy a house I should start setting aside some fuck you money just in case things go south.
So $81,000 in…
4 years is $1,687 / month or $844 biweekly
3 years is $2,250 / month or $1,125 biweekly
2 years is $3,375 / month or $1688 biweekly
1 year is $6,750 / month or $3,375 biweekly

12/31/2312/2/23Difference% Change1/2/23
401K$227,680$215,535$12,1455.6%$155,964
Roth IRA$33,551$31,319$2,2327.1%$23,403
M1 Account$1,863$1,712$1518.8%$446
Cash$2,739$2,522$2178.6%$7,002
HSA$2,637$2,494$1435.7%$3,100
Total$268,470$253,582$14,8885.9%$189,915
Credit Cards$336$1,407-$1,071-76.1%$0
Auto Loans$17,746$18,697-$952-5.1%$16,909
Net$250,389$233,478$16,911+7.2%$173,006
January 2024 Net Worth Update

My overall net worth is up about 45% YoY or $77k. Month-over-Month it’s +7% or $17k. I feel really good about both of these. Life isn’t all about money and I think often about my health, and future. Focus on what you can control, everything else is up to chance in a lot of ways. $250k net worth, the little piece of paper in my home office had $150k written down for 2023. Started this blog in April 2012 at -$42k or -$63k in current dollars.

Some pictures from December 2023. North Park Mall, new dining room set from Nebraska Furniture Mart, standing at Granite Park in Plano outside of Surburban Yacht Club, and on the way back from the Equinox after doing a crazy hour long set on the elliptical.

Wish you all a Happy, Fun-Filled, and Healthy 2024. My #1 piece of advice to both you and myself is to spend more time living life, focused on you and your loved ones, life goals, and less on social media worrying about what other people are doing.

Recessions, Bad Health and April 2023 Update – $195k

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3/31/20232/28/2023Difference% Change
401K$173,931$167,673$3,611+3.7%
Roth IRA$27,186$25,508$1,678+6.6%
M1 Acct$770$663$107+16.1%
Cash$3,135$3,635($500)-13.8%
HSA$3,030$2,988$42+1.4%
Total$208,053$200,468$4,938+3.8%
Credit Cards$0$163$(163)-100%
Auto Loan$12,938$14,382$(1,444)-10.0%
Net Total$195,115$185,923$6,545+4.9%
April 2023 Net Worth Update

March was a rough month, effectively sick for over 2 weeks and still have a lingering cough. Overall I’m doing much better now but missed out on some activities with friends and felt like a total hermit. The brother of someone I went on a few dates with on and off over the years passed after getting tonsil surgery in his sleep. Dude was literally the same age as me too. Also a guy I dated before the pandemic and am friends with now is dealing with complications from a relatively procedure he had in early 2022 and having thyroid problems. He’s currently on medical leave, unable to work, and likely will have to undergo two, possibly 3 surgeries. An acquaintence of mine lost his job of 8 years working for an insulation company, he bought a house a few years ago he saved up a long time for. Hopefully he lands back on his feet soon.

My neighbors moved out, didn’t have anything bad to say about them other than the smoke that I had to complain about a few times since it vented into my unit. There are actually 5 out of 8 units in this building that will be available here between now and July. Can’t say I fully blame them, the price they want for a 1br ranges between $1,316 and $1,447. I pay $1,134 and presumably that amount is going to increase. For the last few months I pay my rent 3-4 weeks early so I don’t have to worry about it. When I get paid next week I’ll make the payment for May.

I’m happy that I was able to make a dent in my auto loan balance, it’s still a stretch to pay $1,444 in car payments in a month. $2,163.56 a month (including matching) is going in my 401k, $500+ a month in the Roth IRA and $100/mo in the M1 account. Up $6,545 in a month or 4.9% in a year. Net worth is essentially flat to a year ago which is good considering I bought a new car in October and financed $26k.

The overall state of the economy is still concerning to me, I see lots of doom and gloom content one day on YouTube and the next day the stock market is having it’s best year ever… Clickbaiting at its finest. Even Michael Burry of The Big Short fame said he was wrong. By following a lot of these folks you can miss out on major gains. Between capital gains, missing the best days of the market in any given year, and not dollar cost averaging due to fear. I would however keep adding to that emergency fund and maintain some diversity in assets (something I still need to work on). The layoffs at many big companies is very much a real thing however, seems like the numbers keep going up.

Lastly a bit of a rant… I see more and more people who don’t take personal accountability for their actions. I don’t know exactly what the root cause is but after how many years do you still blame your parents, society, a person of a different race, gender, orientation, insert the blank. People would rather point the finger than take action and focus their energy on improving their situation. I’ve been guilty of it too and try to remind myself in new situations that I might be my biggest obstacle.

Case in point was some bloodwork I had in March. The numbers aren’t good but knowing is a big part of the battle. Cutting back on sodium, alcohol, drinking more water, and eating more vegetables is how I will claw my way back. Also playing kickball again starting this afternoon and I’m super excited. Much love. Don’t give up the good fight whatever that may be for you.

Is there a recession coming??

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I’ve heard so many pundits talking about the inverted yield curve and how it’s a sign of a looming recession. Basically investors can earn more from US treasury bonds over the short term vs the long term. Historically that has been a key indicator that a recession is looming. This happened in 2005 but the US economy didn’t really start to suffer until 2007.

Is this time around different? I honestly don’t think so. Closures in retail left and right, a student loan crisis, unattainably high real estate prices, continual lowering of the Federal Funds rate, economic uncertainty with China and our stubborn president… Reductions in shipping and manufacturing, a glut of oversupply in the automotive market.

For the record I’m in the camp of people who thinks we are due for a market correction and some type of economic recession. Will it be as bad as the late 2000s? Who knows for sure. What I do know is that I’ve been down that path before. https://apple.news/Am2QtY5VxTC2qllXbXWOumw

I was a student during the last two major economic blows in this country. A student with no real money in the marketplace and still operating with a certain naivety from my Gen X and Baby Boomer educators who were indeed able to live the dream on a working person’s salary. My situation today is quite different.

I’m not quite debt free, but between my contribution and my employer, $1600+ goes into my 401k each month. That’s not including a neglected Roth IRA with Betterment that I am presently lacking ample cash flow to fully fund alongside my other short-term obligations. If anything it’s in my favor for the market to go down, that way I can buy more shares of the total stock market index. (FSKAX) at extremely low expense ratios and a higher probability of asset appreciation.

Within a year god willing I will free up some cash flow. $545/mo on a car gone, $129/mo on a car warranty gone, $55/mo for a cell phone gone. That’s $729/mo. for me to live on, use to travel, build up my emergency fund, potentially save towards the down payment on real estate should the right opportunity come along. As I get older and see where each of my dollars is really going, it’s a wake up call how much things depreciate.

I still am staying the course with investing. I get the tax benefit now, it’s great to use compounding to build up a nest egg, a declining market allows me to buy equities at a “discount”, there is an annual limit on how much I can put in a 401k annually, and I have no plans to retire in the next couple years. If anything it’s more like 14 to be retirement optional in 2035.

2008 me invested in penny stocks such as DPDW, which I bought right as it peaked and lost about 50% of my hard earned cash on. I also owned shares of companies like Apple but got too skittish with each and every company announcement, press release, etc. I doubt I will ever buy single stocks again unless I have a huge surplus of cash laying around.

Month 53: Why 1984 won’t be like 1984

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It is now 1984. It appears IBM wants it all. Apple is perceived to be the only hope to offer IBM a run for its money. Dealers, initially welcoming IBM with open arms, now fear an IBM-dominated and controlled future. They are increasingly and desperately turning back to Apple as the only force that can ensure their future freedom.

Oh wait… Not that 1984, but $1,984. As in my student loan balance. That’s about what my computer, a MacBook Pro cost when I purchased it in early 2014. This is a moment to celebrate. Why? For the first time ever my student loan is below $2,000. Progress my friends, it’s all about progress.

What about Retirement? $18,223 in my 401k and $362 in my Betterment Roth IRA. So $18,585 total. Credit cards? Credit card balance is around $1400. Each paycheck I make a $700-800 payment toward that with plans to increase once student loans are gone.

Now what about the car???  Current payoff is $29,169.81 at 1.9%. That’s down from $1997.39 from $31,167.20. I have another payment coming up in a week which will drop it below $29k.

Not being content with where I am today, I started to do a little bit of job searching. Interviewed with a local employment agency for a contract gig. The position sounded interesting and I think would be a step forward in my career. However I don’t think they would be able to match my benefits aside from medical and dental. 160 hours of vacation, essentially unlimited sick time, paid holidays, 5% retirement matching… As a contractor, you need to plan for all of those things.

It’s important to look at the big picture when making big moves like working for another company. Can’t afford to leave money on the table. I’ve been following a little bit of Alex Becker‘s work, read his book 10 Pillars of Wealth where he talks a lot about working for yourself and the benefits of a cash flow business. I also am in the middle of Scott Alan Turner‘s 99 Minute Millionaire ebook along with The Procrastinator’s Handbook – Mastering the Art of Doing It Now by Rita Emmett.

My last point and this is a big one. Don’t stop. Live is a marathon, not a sprint. Just because you had a setback or 5 doesn’t mean you let that break you and give up. From 2009-2011 I went a year without a regular FT job, not qualifying for unemployment and over $42k in student loan debt. I was down, depressed and unsure my future. Today I am on more solid footing. Not balling by any means but I’m way better off than those dark days.

Applying my own advice to different areas of my life, learning from experts to save time, minimize frustration and see results.Hope to share more with you on that soon.

Month 52 – Navient $2,479, Retirement – $17,912

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Sorry if these updates are getting boring. I’m making progress still. Down to $2,479 from $15,402 just one year ago and $2,970 one month ago.

month52updateMy retirement is steadily growing. 401k is finally vested after 3 years and up to $17,654. My Betterment account is up to $258.

Other than that I did get a raise even though it was less than I was hoping for. Still need to keep looking for more jobs but not trying to get crazy stressed about that. Kind of question whether to put so much effort into a search when it’s not mandatory.

Speaking to the big elephant in the room. This blog… is called Debt Free 32 – One Man’s Mission to get rid of $45159.35 of debt. The 32 part is because I planned do to this by age of 32. Today is my birthday… I’m 33 now, not 32. A couple months short of my goal, but still making great progress since the start of this blog. Over $45k in payments. Under $2,500 left on the student loan. Worst case this sucker will be gone by December. Best case – October. Then I can celebrate and reflect.

Retirement Plan – Re – Activated

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Set up an automatic transfer to my Roth IRA. A whopping 57.29 a week. I plan to contribute half the max each year at least until my income increases significantly or the loans are paid off. Hopefully not spreading myself too thin.

For now, the money is going to sit in my discount brokerage account until I figure out exactly what to do with it.  I have some stocks in mind, but want to avoid paying excess fees. Also want to be diversified. A Roth is one of those things that everyone says to start doing while you’re young. At just a couple months shy of 30, there’s no time like the present.

I’m still not sure if I should be contributing more to make up for lost time… On a 35k gross, 5500 / ~20% of my net income is a touch pill to swallow. Even if I can take it out at anytime and avoid paying a penalty.