To continue my detail posting about our net worth of $100,000 that we recently attained, I will now cover our retirement.
I have posted in detail how we want to retire by age 45, or soon thereafter
. I did a follow up post here also
The two biggest wildcards in our dream to retire early are home ownership and starting a family. As those events happen, we will have to revise our plan, but hopefully it is still probable.
So here are some details about our current retirement accounts:My 401k
- My 401k has done well this year. Through September 30, it was lagging,
but now year to date, I'm up over 12%. My goal was 10%, so hopefully it holds up through the end of the year. I only contribute 1% of my salary as my company doesn't match and we are focusing on Roth IRA's and my fiance's 401k. I just contribute 1% to keep the payroll deduction going. We'll have a big change coming next year due to marriage and exceeding the Roth IRA income limits. So we'll probably end up increasing my percentage substantially.Fiance 401k
- Where almost 50% of all our retirement money is sitting. Her company matches 50% of her first 6% of contribution, so we contribute 6% here to take advantage of the free money. We reallocated her account back in August
to hopefully kick up the performance. So far things are going well. Since we will be Roth IRA ineligible next year, we will switch over to funding 401k's more next year, so we'll bump her percentage of contribution up.Traditional IRA -
This account comes from my fiance from way back. It is help in TD Ameritrade and we have traded stocks in it this year without much success. However, the gains made in our Roth IRA's have just about made up for it.Fiance Roth IRA -
As of this week, we have fully funded my fiance's Roth IRA for the year up to the $4,000 limit. I snuck in about $500 last April that I counted as a 2005 contribution. We hold this account in TD Ameritrade also. We won't be able to contribute here next year, so the balance will only change based on performance of investments.My Roth IRA -
I just opened this account this week. Since my fiance's IRA is now funded, we will start working on mine. We have until April 2007 to fund this up to $4,000 and we should hit it by March. It is also at TD Ameritrade.My Profit Sharing
- The least of my worries is here. I can't do much about this. Basically every year, my work contributes 3% of my salary to this and it is invested. I can't pick investments. The only thing I can do is try to make my work more profitable I guess? However, it counts as retirement money because I can't touch it until age 59.5.
And that sums up our retirement and my posting about achieving $100,000 of net worth.
I'll be back to normal posting this week!