Sam, you're doing so well!

I was reflecting on your pre-payment posting yesterday, and my pre-payment schedule. SInce our housing costs are so low relative to income, we've been happy to pre-pay the 10% extra, and call it "enough." But I was thinking yesterday...maybe I'll pick a percentage of our gross income, like 20%, and use that as the prepayment amount. It might be another way to nudge the prepayment upward, and it's something we can move up or down according to leaner years...

Anyway, thanks for being so consistent in posting to your journal. It really does spark internal conversations for me (and sometimes external ones, as well!)

Sandi

Responded to the first request for documents, IRS has now sent us a second request for information.
Although I was warned this would happen, once the IRS starts looking at you, they keep looking until they can get some money out of you, it is no fun. We'll be spending our Thanksgiving weekend working on preparing paperwork to respond to the second round.

(1) Max out 401ks - $33,000
(2) Max out 2009 IRAs - $10,000
(3) House project and furniture - $6,000
(4) Add to baby fund - $5,000
(5) Add to emergency fund - $10,000
Total - $64,000

(1) $28,970 (88%) (I've maxed out my 401k, Mr. Sam is still working on his.)
(2) $10,000 (100%)
(3) $1,218 (20%)
(4) $1,308 (22%) ($6,308 in our ING baby account)
(5) $2,227 (22%) ($24,092 in our ING e/r account)
Total - $43,826 (68%)

Well, we are in the home stretch and it seems highly unlikely that we will complete our 2009 goals in full. With a salary cut for me and spotty real estate rentals this year we just have not done as well as we would have liked. But, the upside during this recession, is that we both are still gainfully employed and making good money, we currently have all properties rented out and we have avoided taking on debt (except for that @$1000 in 0% Home Depot debt for our real estate business). The other upside is that our non real estate investments are doing very well, buying stocks in Jan., Feb. and March of this year has paid off, we have @5 stocks that we bought early this year that are up over 100%.

(1) Max out 401ks - $33,000
(2) Max out 2009 IRAs - $10,000
(3) House project and furniture - $6,000
(4) Add to baby fund - $5,000
(5) Add to emergency fund - $10,000
Total - $64,000

(1) $29,803 (90%) (I've maxed out my 401k, Mr. Sam is still working on his.)
(2) $10,000 (100%)
(3) $1,371 (23%)
(4) $1,408 (22%) ($6,408 in our ING baby account)
(5) $2,727 (27%) ($24,792 in our ING e/r account)
Total - $45,309 (71%)

We've hit the $45,000 mark.

(1) Max out 401ks - $33,000
(2) Max out 2009 IRAs - $10,000
(3) House project and furniture - $6,000
(4) Add to baby fund - $5,000
(5) Add to emergency fund - $10,000
Total - $64,000

(1) $32,689 (99%)
(2) $10,000 (100%)
(3) $2,322 (39%)
(4) $1,508 (30%) ($6,508 in our ING baby account)
(5) $2,927 (29%) ($24,992 in our ING e/r account)
Total - $49,446 (77%)

Not quite our final numbers for the year, but close.

I maxed out my 401k and Mr. Sam came close, just missed doing so. He had lowered his contributions earlier this fall and then ramped the levels back up to the maximum for his plan but couldn't quite reach the max out number. The stocks we bought early 2009 in our IRA are doing very well which means more to pay in taxes if we convert to Roth in 2010, need to figure that out. Happy to have almost $25,000 in our ING emergency fund (regular savings and CD ladder).

But, no ignoring that we've fallen short on adding to our emergency fund, baby fund and house fund. And while we start to plan our 2010 goals we've got some expenses coming up, we'll be turning two of our rental properties and one will be "rented" to family for a couple months which means no rent for those couple of months in addition to costs for turning and we'll likely lose a month rent on the other property. And the IRS audit meeting is schedule for next year as well, hoping that we come out clean and that we don't have to pay the tax man.

Happy New Year to all!

$50,000 in one year! Congratulations. That is truly amazing. Whether or not you accomplished 100% of your goals, while perhaps mildly disappointing to you, is fantastic. For 2010 you can set your goals higher and if you reach the same percentage accomplished, you will have accomplished (or gotten close) to 2009's goals.

Very inspiring stuff. Happy New Year!

(1) Max out 401ks - $33,000
(2) Max out 2009 IRAs - $10,000
(3) House project and furniture - $6,000
(4) Add to baby fund - $5,000
(5) Add to emergency fund - $10,000
Total - $64,000

(1) $32,689 (99%)
(2) $10,000 (100%)
(3) $2,323 (47%)
(4) $1,515 (30%) ($6,515 in our ING baby account)
(5) $3,141 (29%) ($25,022 in our ING e/r account)
Total - $50,168 (78%)

Final 2009 numbers, the good news: maxed out our IRAs, I maxed out my 401K, Mr. Sam just about maxed out his 401K, $25,000 in our emergency fund, $50,000 total saved.

Sam, congratulations on setting such lofty goals at the start of the year, tracking them dilligently and by all appearances, doing extremely well despite considerable challenges along the way.

Whaever your income, setting aside $50,000 in a single year is extremely impressive. My hat is off to you.

Best of luck in the new year. I look forward to being impressed once again.

H~