Tuesday, August 4, 2009

Goals and My Plan

Long-term Goals ( I am defining long term as 10 or more years out)
*401 K-I have used various retirement calculators that say my husband and I will need 2.5-3 million to retire with 80 percent of our current income. It is so hard to plan for something 40 years out. I have no clue what our income will be then, nor do I have any clue if social security will be there for us (I am guessing no in all my assumptions), and health care costs? Psh! My plan is to be contributing 15 percent of our combined income within four years. I just upped both of our 401 K contributions by 1 percent so we now contribute 9.8 percent of our combined income between our 401 Ks and Roth IRAs. I plan to increase this by 2 percent a year. In 4 years, this will put us at 17 percent in four years, which is even better than the goal.
*House: We plan on remaining in our current home about 5-8 years, more if needed. I plan to keep paying our mortgage on time (Duh!). Right now, this is it for this goal until the credit card debt is gone! Our next home will hopefully be our forever home. I want a place with a two car garage, an acre or so of land, and four bedrooms. Everything else can be changed if needed.

Short term goals (under five years)
*Pay off all credit card and car debt: This is the order that I would like to pay off:
1. Target-140
2. Chase 3-1710
3. BOA 2: 1833
4. Chase-2353
5. Chase 2:2300
6. Car 1-7875
7. BOA 1-9300
By the time all this is paid off, the other car loan and the credit union card will be gone on their own with just the regular payments.
*Get Emergency Fund to 6 months of expenses: around $18,000. Right now, I am only putting $200 in this a month until the debt is gone.
*Start and fund baby account-$2000. Have not started, will do when we are planning to start conceiving.

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