2018 is closer than we think

[Blonde Granny]

I was just reading some posts in WIRR and a few ladies are looking at 2018 already.  I guess it's coming soon whether I want it to or not.

So, my questions for everyone: Have you thought about the upcoming new year? Do you have any goals you want to achieve? if so, what are they?  Are you going to make any budget changes or just stay the same or are you just going to ignore the whole situation.

For me, I'm going to seriously evaluate my spending and see if there are places I can make some improvements even if they are tiny ones.  My personal escrow account has already been changed so what is left is the monthly spending (and over spending) in a few categories.

[countrygirl2]

Good idea, with DIL and grandson here I'm blowing my budget. I'm not having to take
out more money but I will as I try to save so much back monthly from regular income
to pay extras like ins, taxes, etc and I'm not. Not going to put us in a hole but
don't want to get used to doing that.

I read somewhere the other day 10 weekends till Christmas!!!!

[resolution]

My goal for 2018 is to finish my Master's Degree, which means it will be a lean year for me. I am paying as I go, and this past year has been pretty rough. I am not going to plan a vacation in 2018, and my allergy shots are scheduled to end this month, so those are two areas for savings. I just need to get my husband on board with no expensive house projects and I will be good to go.

[zibazinski]

I won't bleed as much money on this house. I have one major project to go and it may not be as bad as I think. I want to put a washer and dryer in my kitchen and get a smaller refrigerator. I need new fronts for my cabinets and something to cover up the washer and dryer that will match and look good. There's a closet where the washer and dryer would be perfect but to put it there I believe would cost a lot more and I'd lose storage as well. Storage is very limited in this house. Had I not tried to get car in garage, I'd have saved money on damage to my car and having a plumber and electrician move electric and drains for no better situation for my car. That would have paid for my washer and dryer and new refrigerator. A costly mistake indeed.

[coffeegrl]

I received a promotion at work in mid-September, which came with a bump in pay of around $8500 per year. (Woot woot!) So I've already been looking at my budget. When the promotion came through, I resisted the urge to do what many people seem to do, and that is increase my spending. I am still living in the same apartment, I didn't buy a new car, I didn't book a fancy vacation. I'm going to take several months to really get this budget under control. 

Some areas I am looking at:

Funding an IRA (I'll be fully vested in the State of Missouri's retirement plan come Jan. 1, 2018, but I want another source of retirement income outside of that and Social Security)

Contributing $20 per month to my HSA, instead of just relying on the cafeteria dollars from my employer. That will be $240 per year, which will cover my eye exam (which is only $10, under my insurance) and my contacts every year. This will be in addition to the cafeteria dollars that go into my HSA. I'm hoping to always have a little cushion of money in there to pay for an office visit or unexpected prescription, if need be.

Paying down credit card debt. 

Building my savings back up.

Setting aside some money for a new (to me) car, when the time comes. (Mine's 13 years old, so the time when I need a newer one will be here sooner, rather than later.)

Setting aside a little money each month to start saving up for another vacation to NYC in the next 3 to 5 years.

I'll be setting some actual numbers to these goals, as I go along and get a better grip on what the budget will look like in 2018. Obviously, the $20 for the HSA will just come out of my paycheck, so that one I won't have to worry about remembering. 

I need to do some research on how much money you initially need to open an IRA, and what financial institution I want to do it through. (Any thoughts from anyone, on that second part)

I need to make a decision on which credit cards I want to work on first.

I also need to decide how much money can go towards building up savings and setting aside money for a car. (The vacation fund, which would be nice, might have to be postponed for now.)

I also know that these might need to be tweaked as I get closer to 2018. These are just my initial thoughts for some 2018 goals.

[countrygirl2]

We will get about $20k as an RMD from one of our IRA's at year end. Hubs wants
to invest it, I mean come on. We will also have almost $100k additional come
Jan 2nd. May help son, I would like to help him get a better truck then the old
98 we will give him. Sure he has money and makes 6 figures but never know what
life will spring on him.

He says once he gets his federal pension time in he is likely to go contract similar to
what dad did. They are both wanting to live in Italy for awhile later. Hope he
gets to do it and hope she can go too unlike my situation was. I sooooo wanted to
see the world and only saw a little of it.

[Blonde Granny]

coffeegrl, it sounds like you're really grounded and think things through. Way to go!!!!!!!!

I'm not quite that disciplined and most times do things on a whim. Maybe I'll try to over come that fault in 2018.

[countrygirl2]

Hubs will get the rent house of his moms done before year end.

He put in a new steel front door with window, what an issue. Old
house was not straight, Bedford stone on the outside, paneling inside.
Had to do a lot of work to get it in, has to redo the paneling around
the door and reframe some on the outside. The old wooden one wouldn't
even open but halfway so had to be done. It looks really good.

We need to put carpet in the living room and have the carpet we have
laid in the bedrooms. Hubs bought blinds and put them up but need 4
more in the family room that need cut to fit. He also needs to sand
and refinish the family room floor. Needs to put trim in a lot of
areas but he is getting there.

I don't see him having time to build on the front porch till spring, also
starting to get really cold out.

I hope to get some painting and caulking done outside at the post office
Thursday if its warm enough, otherwise likely nothing else done outside
this year. Too bad I didn't feel good enough to do it in the good weather.

[resolution]

Oct 24, 2017 11:11:30 GMT -5 coffeegrl said:

I need to do some research on how much money you initially need to open an IRA, and what financial institution I want to do it through. (Any thoughts from anyone, on that second part)

As a general rule of thumb, you want to avoid opening your IRA through a bank, as they tend to have higher fees and poor investment options.

The big three discount brokerages that a lot of people use for lower fees are Vanguard, Fidelity, and Schwab. I think you would do well with any of them if you are looking for low expenses and are comfortable deciding on your own investments without a personal adviser.

Most Vanguard funds require $3000 to open, although you can get into the Star fund or a target retirement fund for $1000. Fidelity and Schwab have $1000 requirements to start accounts, but i think that Fidelity will let you open one with lower if you keep it in cash with them until the minimum is accrued, and Schwab will let you start with lower if you make an automatic monthly contribution.

[Iggy aka IG]

A timely thread!

Yesterday I prepared an Excel sheet for next year.  Similar to coffeegrl, I received an income increase by way of an extra XX in commissions at the beginning of the year.  I've used more than half of it to start and max an IRA, as well as pay down my business CC and a personal loan.  This XX is not guaranteed to continue, so I haven't increased spending via a new vehicle, etc.

2018 plans:
Max out the IRA (I'll be at the age where it increases to $6,500 annual allowable contributions.  Yay!)
Continue to pay down the biz CC
Start a vacation fund
Start a new car fund
Pad the business operating account with a cushion, just in case

I really do want to start studying for the CIC I keep yapping about each year.  Finalizing my Zen list I've been talking about this year will free up some me time. 

As some of you know, I am a late retirement fund starter.  If anyone has any input as to what else I can do to resolve this, I'm all ears.  I am self-employed, so an employer 401K is not available.  I have a (paltry) savings account, as well as $1K stashed in an EF.  The goal is to retire at 63-ish, which I realize means a SS benefits reduction.

[tallguy]

Oct 25, 2017 12:01:40 GMT -5 Iggy aka IG said:

A timely thread!

Yesterday I prepared an Excel sheet for next year.  Similar to coffeegrl , I received an income increase by way of an extra XX in commissions at the beginning of the year.  I've used more than half of it to start and max an IRA, as well as pay down my business CC and a personal loan.  This XX is not guaranteed to continue, so I haven't increased spending via a new vehicle, etc.

2018 plans:
Max out the IRA (I'll be at the age where it increases to $6,500 annual allowable contributions.  Yay!)
Continue to pay down the biz CC
Start a vacation fund
Start a new car fund
Pad the business operating account with a cushion, just in case

I really do want to start studying for the CIC I keep yapping about each year.  Finalizing my Zen list I've been talking about this year will free up some me time. 

As some of you know, I am a late retirement fund starter.  If anyone has any input as to what else I can do to resolve this, I'm all ears.  I am self-employed, so an employer 401K is not available.  I have a (paltry) savings account, as well as $1K stashed in an EF.  The goal is to retire at 63-ish, which I realize means a SS benefits reduction.

I've never had reason to look into it so don't know the details or costs of what all is involved, but would a SEP-IRA work for you?  Your allowable contribution may be higher depending on your business income.  

[haapai]

I need to evict the ginormous TV cabinet from the spare room and install a desk and bookshelf in the space.  This business of having a laptop on my coffee table and mail scattered around three different rooms has got to end.  I need a filing system and a convenient shredder. 

[mamasita99]

I can't quite think of 2018 yet. I'm starting my new job any day now, and when those paychecks start coming in I can really make plans. Right now I'm just treading water, being patient, and loving our new house!

[Iggy aka IG]

Oct 26, 2017 6:46:40 GMT -5 mamasita99 said:

I can't quite think of 2018 yet. I'm starting my new job any day now, and when those paychecks start coming in I can really make plans. Right now I'm just treading water, being patient, and loving our new house!

Congratulations on your new job! 

[Iggy aka IG]

Oct 25, 2017 21:18:45 GMT -5 tallguy said:

Oct 25, 2017 12:01:40 GMT -5 Iggy aka IG said:

A timely thread!

Yesterday I prepared an Excel sheet for next year.  Similar to coffeegrl , I received an income increase by way of an extra XX in commissions at the beginning of the year.  I've used more than half of it to start and max an IRA, as well as pay down my business CC and a personal loan.  This XX is not guaranteed to continue, so I haven't increased spending via a new vehicle, etc.

2018 plans:
Max out the IRA (I'll be at the age where it increases to $6,500 annual allowable contributions.  Yay!)
Continue to pay down the biz CC
Start a vacation fund
Start a new car fund
Pad the business operating account with a cushion, just in case

I really do want to start studying for the CIC I keep yapping about each year.  Finalizing my Zen list I've been talking about this year will free up some me time. 

As some of you know, I am a late retirement fund starter.  If anyone has any input as to what else I can do to resolve this, I'm all ears.  I am self-employed, so an employer 401K is not available.  I have a (paltry) savings account, as well as $1K stashed in an EF.  The goal is to retire at 63-ish, which I realize means a SS benefits reduction.

I've never had reason to look into it so don't know the details or costs of what all is involved, but would a SEP-IRA work for you?  Your allowable contribution may be higher depending on your business income.  

Thanks for the reminder, tallguy.  I read something about this last year  And the Northwestern rep I had for about 2 seconds before switching to Fidelity earlier this year may have mentioned it.  I'll check it out. 

[countrygirl2]

Don't take SS at 63 you will regret it and you have to fund health insurance till 65, also they
are talking about raising medicare age.

As Susie Orman says not waiting until full SS is a mistake, she is acutally right about that.

[tallguy]

At what age you should take Social Security REALLY depends on your individual situation.  Waiting will probably be advantageous for most people.  It is not for everybody.  My plan right now is to claim at 62, and if I do that it will be the result of a well thought-out decision based on my personal circumstances.  Everybody should do the same analysis.  I do agree that one should not automatically claim early just because you can. 

[GRG a/k/a goldenrulegirl]

Oct 26, 2017 9:53:33 GMT -5 countrygirl2 said:

Don't take SS at 63 you will regret it and you have to fund health insurance till 65, also they
are talking about raising medicare age.

As Susie Orman says not waiting until full SS is a mistake, she is acutally right about that.

But someone who has the means can retire early but wait to take SS until full retirement age, right?

[taz157]

Oct 26, 2017 21:26:53 GMT -5 GRG a/k/a goldenrulegirl said:

Oct 26, 2017 9:53:33 GMT -5 countrygirl2 said:

Don't take SS at 63 you will regret it and you have to fund health insurance till 65, also they
are talking about raising medicare age.

As Susie Orman says not waiting until full SS is a mistake, she is acutally right about that.

But someone who has the means can retire early but wait to take SS until full retirement age, right?

Yes.

[Jaguar]

I'm doing my timetable for both saving and Gateway Voyage time for 2018 already. It's looking like an awesome year for me and I'm looking forward to it.

[CCL]

Oct 26, 2017 9:53:33 GMT -5 countrygirl2 said:

Don't take SS at 63 you will regret it and you have to fund health insurance till 65, also they
are talking about raising medicare age.

As Susie Orman says not waiting until full SS is a mistake, she is acutally right about that.

Everyone's situation is different. I'm taking mine the first day I'm eligible.

[tallguy]

As I think about it a little more, I'll probably wait a few months after I hit 62 to give myself one more year of Roth conversion without making SS taxable.  Start SS on a new year.

[NoNamePerson]

Oct 26, 2017 22:07:33 GMT -5 CCL said:

Oct 26, 2017 9:53:33 GMT -5 countrygirl2 said:

Don't take SS at 63 you will regret it and you have to fund health insurance till 65, also they
are talking about raising medicare age.

As Susie Orman says not waiting until full SS is a mistake, she is acutally right about that.

Everyone's situation is different. I'm taking mine the first day I'm eligible.

I took mine at 62 mainly because they kept moving the date around for full benefits. I also quite work!! I like to live dangerously   I have never regretted it for one minute. And I am single so no hubs income to count on either.

Should add that the only thing I hated was that I had to start taking RMD at 70 1/2.

[tallguy]

Oct 27, 2017 8:16:11 GMT -5 NoNamePerson said:

Oct 26, 2017 22:07:33 GMT -5 CCL said:

Everyone's situation is different. I'm taking mine the first day I'm eligible.

I took mine at 62 mainly because they kept moving the date around for full benefits. I also quite work!! I like to live dangerously   I have never regretted it for one minute. And I am single so no hubs income to count on either.

Should add that the only thing I hated was that I had to start taking RMD at 70 1/2.

Partly why I want to do Roth conversions.  To lower the RMD's later.  Okay, it's a big reason I want to do Roth conversions.    

[Iggy aka IG]

I love this dialogue, and am learning new things as well.  Thanks, guys! 

[NoNamePerson]

Oct 27, 2017 11:04:46 GMT -5 Iggy aka IG said:

I love this dialogue, and am learning new things as well.  Thanks, guys! 

Just keep in mind that "they" keep moving the goalpost!  

[Iggy aka IG]

Oct 27, 2017 11:07:39 GMT -5 NoNamePerson said:

Oct 27, 2017 11:04:46 GMT -5 Iggy aka IG said:

I love this dialogue, and am learning new things as well.  Thanks, guys! 

Just keep in mind that "they" keep moving the goalpost!  

An excellent reminder.

IDK... Who knows how I'll feel about it (retiring) in 10 years?     I do know I don't want to wait until 70 like my mom....

[vetswife]

It seems far away right now but I know it'll be here soon.  Two things I want to do are plan some kind of 50th anniversary celebration; DH won't be able to do anything big but maybe a get together with our family.  Also, I'd like to write my "life story", such as it is; my grandkids think I lived when there were dinosaurs or something!  Other than that, take it as it comes.

[ZaireinHD]

I have been hospitalized so much in these recent months. I just made a doctor appointment in December 2017! also the register for health coverage 2018 has come out at work.

so of course my 2018 plans are mostly get back into some kind of better health. and not really finding a higher paying job. but maybe downsizing yet again living arrangements.

but I really like it here in Butler NJ!!!