Short and sweet, here are the goals I’m reaching for in 2007.
My 403b = $12,000
My Wife’s Pension = $4000
(The above amounts = 20% of our gross salaries.) Baby Step 4, check!
My daughter’s ESA = $4000
My son’s ESA = $4000
(The above amounts = 10% of our gross salaries) Baby Step 5, check!
My Roth IRA = $4000
My Wife’s Roth IRA = $4000
(The above amounts = 10% of our gross salaries) Baby Step 7, check!
Tradeking.com Investment account = $16000
(The above amount = 20% of gross income) Save For House, check!
In 2007, I hope to save or invest 60% of my gross income. I’ve listed these goals in the order of their importance to me. I have already directed my employer to withhold 1,000 dollars per month for my retirement, so my retirement goal is a done deal.
For those of you unfamiliar with my situation, I am saving for a house and automobile replacement. I’ll be using a combination of Roth IRA’s, Taxable Investment Accounts, and my ING Direct Savings account to do so.
Analysis: On the one hand, these are very, very aggressive goals. On the other hand, if I am going to live without borrowing money, I HAVE to save for future purchases, especially for major purchases. Remember, the above percentages come from my GROSS salary. I still have to deduct taxes, health insurance, and tithe. It’s going to be TIGHT!