GRS Home  Forum Home
Bank Rates Center
   Savings Account Rates
   Money Market Rates
   Highest CD Rates
Insurance Rates Center
  Auto           Health
   Life              Home
Mortgage Rates Center
  Mortgage Rates
  Mortgage Quotes

Last visit was:
A place for Get Rich Slowly readers to ask questions
and exchange ideas
It is currently Thu Jul 31, 2014 8:52 pm




Post new topic Reply to topic  [ 27 posts ]  Go to page Previous  1, 2
Author Message
 Post subject: Re: Frugal Coconut
PostPosted: Sun Dec 23, 2012 3:58 pm 

Joined: Tue Apr 15, 2008 6:48 am
Posts: 526
Location: Arkansas
Congrats on paying off the mortgage. I'm still working on mine, but I'm sure it's a nice feeling to know you own the home free and clear.

_________________
I can not dwell over that to which I have no control...


Top
Offline Profile   
 Post subject: Re: Frugal Coconut
PostPosted: Sun Dec 23, 2012 10:50 pm 

Joined: Fri Jul 10, 2009 6:57 am
Posts: 371
frugalcoconut wrote:
2012 Annual Savings Goals ... December Progress:

  • ~$6,000 Mortgage Payoff on Primary Residence ... $0.00 balance remaining (100% PAID IN FULL)


WOW!!!!!!! Congratulations! :rofl: :clap: :clap: :party: :party:


Top
Offline Profile   
 Post subject: Re: Frugal Coconut
PostPosted: Sat Dec 29, 2012 8:41 pm 
User avatar

Joined: Sun Aug 10, 2008 2:50 pm
Posts: 154
Location: South Florida
2013 Annual Savings Goals:
  • $2,750 HSA*
  • $17,500 Roth 401k*
  • $5,500 Roth IRA (2013)
  • $5,000 Roth IRA (2012) ... $0.00 (0.0%) but $2,500.00 already saved up to deposit the full amount by mid-April 2013 (50%)
  • HARP2 Refinance on Rental Property
  • Emergency Fund

* Not including employer matching funds.

Upon review of my 2012 expenses in an effort to project 2013 expenses, it's amazing how quickly everything adds up. I would never think that I spend nearly $20K annually with my relatively frugal minimalist lifestyle. It just doesn't register where all the money goes ... even though I'm looking at the complete breakdown by category on Yodlee. Below is the condensed version (rounded for simplicity):
  • $6K Primary Residence (mortgage-related expenses excluded since they no longer apply)
  • $3K Rental Property (net loss from negative cash flow)
  • $3K Automobile
  • $3K Groceries+Restaurants
  • $1K Healthcare
  • $1K Communication/Technology (CellPhone+Internet)
  • $3K Miscellaneous/EverythingElse

Ideally I would like to be at $12K per year. I can theoretically achieve this by doing the HARP2 refinance on my rental property and also by renting out the master bedroom in my primary residence. I'm not exactly sure yet how much the refinance will end up costing ... depends on whether I roll closing costs into the new loan or attempt to pay down additional principal in an effort to reduce the monthly mortgage payment and further neutralize cash flow. As far as the emergency fund goes, anything is better than $0 so it will just serve as a reminder in the unlikely event that I have funds leftover for this purpose.


Top
Offline Profile   
 Post subject: Re: Frugal Coconut
PostPosted: Sat Apr 20, 2013 11:56 am 
User avatar

Joined: Sun Aug 10, 2008 2:50 pm
Posts: 154
Location: South Florida
2013 Annual Savings Goals ... Mid-April Progress:

$2,750 HSA* ... $846.08 (30.8%)
$17,500 Roth 401k* ... $1,038.76 (5.9%)
$5,500 Roth IRA (2013) ... $0 (0%)
$5,000 Roth IRA (2012) ... $5,000 (100%)
HARP2 Refinance on Rental Property ... COMPLETED
Emergency Fund ... diddly squat

* Not including employer matching funds.

Originally my plan on the refinance was to extend to a 30-year to improve monthly cash flow; however, I changed to a 15-year term with my second loan application (after the first company wouldn't budge from an incorrect flood zone determination). This actually increases my mortgage payment by around $75 but, coupled with the rate reduction to 4.25% (from the original 6%), accelerates principal paydown (to effectively double) which will bring me joy to watch the balance shrink each month and make the closing costs of >$5K seem worthwhile.

I've made some headway in preparation for renting out the master bedroom in my primary residence. It is now fully furnished with a bedroom set (Craigslist) and linens (on clearance at Ross). So far I've purchased/installed interior keyless combination locks (eBay) for my bedroom and bathroom ... eventually need to get a set for the master bedroom and whereever else I feel like putting one. I obtained a pool keyfob for myself (long overdue) but still navigating the HOA involvement/procedures for someone to move in ... and at some point I need to figure out what I'm doing for a rental agreement too.

My contributions to the Roth 401k will switch to 50% upon my first paycheck in May ... such that my take-home pay will come out to about $500 biweekly (net). It's scaring me quite a bit because I can't keep this up unless I get a renter in here ... and even then it will be tight. I wish I could start this with a modest cash cushion but I need to do it now otherwise I won't max out for the year. It's a good experiment for whether I can reduce my expenses to that level though.


Top
Offline Profile   
 Post subject: Re: Frugal Coconut
PostPosted: Thu May 30, 2013 4:52 pm 
User avatar

Joined: Sun Aug 10, 2008 2:50 pm
Posts: 154
Location: South Florida
2013 Annual Savings Goals ... May Progress:

  • $2,750 HSA* ... $1,163.36 (42.3%)
  • $17,500 Roth 401k* ... $3,464.31 (19.8%)
  • $5,500 Roth IRA (2013) ... $0 (0%)
  • $5,000 Roth IRA (2012) ... $5,000 (100%)
  • HARP2 Refinance on Rental Property ... COMPLETED
  • Emergency Fund ... diddly squat

* Not including employer matching funds.

Rapidly catching up on the Roth 401k since I upped the contribution to 50% at the beginning of the month. I've been really pinching pennies lately and trying to work some overtime to keep my head above water. I did manage to score a roommate for a couple of months though and that extra income has helped tremendously.


Top
Offline Profile   
 Post subject: Re: Frugal Coconut
PostPosted: Sun Jun 16, 2013 12:03 pm 

Joined: Sat Mar 03, 2012 11:50 pm
Posts: 53
Frugal Coconut -

It looks like you are contributing to both a 401K Roth and a Roth IRA .

Are you over 50 years old and splitting up the $22,500 contribution between the 401K Roth and the Roth IRA or is it really a 401K (traditional ) ?

Please advise.

Marco Polo


Top
Offline Profile E-mail   
 Post subject: Re: Frugal Coconut
PostPosted: Mon Jun 17, 2013 6:19 pm 
User avatar

Joined: Sun Aug 10, 2008 2:50 pm
Posts: 154
Location: South Florida
Marcopolo wrote:
Frugal Coconut -

It looks like you are contributing to both a 401K Roth and a Roth IRA .

Are you over 50 years old and splitting up the $22,500 contribution between the 401K Roth and the Roth IRA or is it really a 401K (traditional ) ?

Please advise.

Marco Polo


Taxes on distributions are not something I want to be dealing with later in life ... so I go Roth all the way, and I max out both the Roth IRA and Roth 401k every year. I am well under 50 years old so my 2013 limits are $17,500 on 401k and $5,500 on IRA (regardless of whether they're Roth or Traditional) which would actually bring the total to $23,000. Add in the HSA and I am automatically setting aside over $100k every four years. 8)


Top
Offline Profile   
 Post subject: Re: Frugal Coconut
PostPosted: Fri Jun 28, 2013 10:11 am 

Joined: Mon Apr 25, 2011 7:37 am
Posts: 446
Belated congratulations on paying off mortgage! What a great feeling that must be!


Top
Offline Profile E-mail   
 Post subject: Re: Frugal Coconut
PostPosted: Tue Jul 02, 2013 5:14 pm 
User avatar

Joined: Sun Aug 10, 2008 2:50 pm
Posts: 154
Location: South Florida
2013 Annual Savings Goals ... June Progress:
  • $2,750 HSA* ... $1,374.88 (50.0%)
  • $17,500 Roth 401k* ... $5,575.37 (31.9%)
  • $5,500 Roth IRA (2013) ... $0 (0%)
  • $5,000 Roth IRA (2012) ... $5,000 (100%)
  • HARP2 Refinance on Rental Property ... COMPLETED
  • Emergency Fund ... diddly squat

* Not including employer matching funds.

Found out that I will be getting an extra bonus sometime early next year to compensate for one week of vacation time that won't carry over ... so I will probably use that money toward my 2013 Roth IRA contribution since I doubt I'll be able to put much toward it this year. I've been keeping my spending well in check for the past couple of months in order to get back on my feet financially after being wiped out by the refinance and then faced with the oh-so-pleasant car insurance bill. So far I am satisfied with my progress given the heavy constraints that I've placed on myself.


Top
Offline Profile   
 Post subject: Re: Frugal Coconut
PostPosted: Fri Sep 06, 2013 6:03 pm 
User avatar

Joined: Sun Aug 10, 2008 2:50 pm
Posts: 154
Location: South Florida
2013 Annual Savings Goals ... July/August Progress:
  • $2,750 HSA* ... $1,797.92 (65.4%)
  • $17,500 Roth 401k* ... $9,853.56 (56.3%)
  • $5,500 Roth IRA (2013) ... $0 (0%)
  • $5,000 Roth IRA (2012) ... $5,000 (100%)
  • HARP2 Refinance on Rental Property ... COMPLETED
  • Emergency Fund ... diddly squat

* Not including employer matching funds.

Just received the good news that my mini-promotion (which officially becomes effective in a couple of weeks) will result in a ten percent pay raise (as coupled with the standard merit increase). It still hasn't totally sunk in yet. I've read article after article about how boosting income is one of the best ways to achieve your financial goals ... but I never truly believed that it was possible for me. About four years ago I made a bold intra-office move that bumped me up a whopping 16% ... and now suddenly another 10% ... so I couldn't be happier. Every little bit helps ... but it's the big noticeable jumps that are amazing ... and they definitely ease the burden of juggling multiple financial goals.


Top
Offline Profile   
 Post subject: Re: Frugal Coconut
PostPosted: Sun Sep 29, 2013 6:00 pm 
User avatar

Joined: Sun Aug 10, 2008 2:50 pm
Posts: 154
Location: South Florida
2013 Annual Savings Goals ... September Progress:

  • $2,750 HSA* ... $2,115.20 (76.9%)
  • $17,500 Roth 401k* ... $12,258.74 (70.0%)
  • $5,500 Roth IRA (2013) ... $0 (0%)
  • $5,000 Roth IRA (2012) ... $5,000 (100%)
  • HARP2 Refinance on Rental Property ... COMPLETED
  • Emergency Fund ... diddly squat

* Not including employer matching funds.

I'm starting to read up on various strategies to help me decide where to put my excess cash going forward into sometime later next year once all of my Roth contributions finally get caught up again. (I like to plan ahead ... plus it gives me something to look forward to and get excited about in the meantime.) There are so many options to choose from but I have limited liquid capital to invest outside of my tax-sheltered accounts (since I will continue to max those out religiously which automatically accounts for approximately half of my net income).

I anticipate hitting another milestone to my net worth by the end of next year. It will be somewhat dependent on market performance, of course ... but I will be happy to achieve it nonetheless as it correlates directly to my overall goal of financial independence by 2020. While at the library today, I immersed myself in the Early Retirement chapter of The Bogleheads' Guide to Retirement Planning where the authors indicated that a 3% safe withdrawal rate was statistically more appropriate for retirement at age 40 (based on models/simulations using historical data, etc.) rather than the customary 4% rule. I've encountered plenty of debate in various forums as to what SWR to use ... but this is the first time I have seen it "officially" published which obviously lends it more credibility. I will evaluate my situation further as the timeline grows shorter and the data becomes more concrete. As hinted the above paragraph though, I may concentrate at least partially on cash flow in order to mitigate the SWR issue altogether.


Top
Offline Profile   
 Post subject: Re: Frugal Coconut
PostPosted: Fri Nov 01, 2013 12:19 am 
User avatar

Joined: Sun Aug 10, 2008 2:50 pm
Posts: 154
Location: South Florida
2013 Annual Savings Goals ... October Progress:

  • $2,750 HSA* ... $2,326.72 (84.6%)
  • $17,500 Roth 401k* ... $15,789.16 (90.2%)
  • $5,500 Roth IRA (2013) ... $0 (0%)
  • $5,000 Roth IRA (2012) ... $5,000 (100%)
  • HARP2 Refinance on Rental Property ... COMPLETED
  • Emergency Fund ... diddly squat

* Not including employer matching funds.

I will be slowing down my Roth 401k contributions for the remainder of the year in order to capture the full company match (rather than maxing out early and losing that extra little bit).

I'm hoping to get to the point soon where I can move the dial on the 2013 Roth IRA contribution. Between the upcoming bonus and a bunch of overtime, I should make some headway ... although my car insurance payment is coming up too which will cancel out some of those gains.

I've been trying to strategize on how I want to allocate both my 2013 and 2014 Roth IRA contributions. I want to have my cake and eat it too ... unfortunately I have to wait until more money accumulates in the account before that can happen. For now I might invest approximately the minimum in the last few available funds that I'm interested in ... with the goal of at least completing my basic portfolio (until they introduce another new fund that complements it nicely, of course).


Top
Offline Profile   
Display posts from previous:  Sort by  
Post new topic Reply to topic  [ 27 posts ]  Moderators: kombat, bpgui, JerichoHill, Fiscal Fitness Moderator Go to page Previous  1, 2


Who is online

Users browsing this forum: No registered users and 3 guests


You cannot post new topics in this forum
You cannot reply to topics in this forum
You cannot edit your posts in this forum
You cannot delete your posts in this forum
You cannot post attachments in this forum

Search for:
Jump to:  
Powered by phpBB © 2000, 2002, 2005, 2007 phpBB Group
Theme created StylerBB.net & kodeki