Welcome to another Dr. PayItBack monthly checkup! I use this space to remain accountable to our expenses and goals, track net worth and debt, and muse on what was done well and what can be improved.
I closed on the sale of my dad’s house this month, and I have started the final process of distributing the residue of the estate among myself and siblings. There are a few loose ends remaining, but this was the last big project. Fifteen months later, I can attest that executing even a relatively simple estate is no joke. It has been exhausting mentally and emotionally, and I am relieved that the end is in sight.
Budget/Cash Flow
With the massive influx of cash from the sale of the house, we have been able to further increase the aggressiveness of our investing. I don’t want to lump-sum everything into VTSAX right this second because I’d like to to be able to max 403b, Roths, and 529s immediately at the start of the year. But I did dump an extra $10,000 into our taxable account.
I also ‘bought the dip’ of the last mini crypto crash. So far this has paid off but of course it’s anyone’s guess what this looks like in a day or a month or a year.
PayItBack Progress
Interest rates remain steady at the same record lows. Paying minimums. Rise repeat.
Net Worth
If we weren’t in a secure financial place before, we sure are now. The S&P was up a ridiculous near-7%, more than erasing the September slump. Crypto remained at or near all-time highs. And of course the proceeds of the house sale made for a gigantic cash cushion (for now). I don’t know if it’s the numbers or the relief of being nearly done with probate, but I have found myself noticeably more relaxed at work. I hope that this is a sustained feeling because it’s giving me a better attitude when I see even difficult patients, and it’s allowing me to come home with more energy for my family.
Financial Independence
Wow! FI by summer 2028!
Not really. I don’t know all the backend calculations that this tool makes, but it clearly extrapolates the recent slope of our savings growth into the future. I think it now assumes that I will be saving >$150k every month which — while it would be nice — is not super realistic at this point. I expect this date to slowly recede further into the future again as more typical months fill in.
Financial Goals for 2021
1) Max out 403b: $19,500 of $19,500 (100% done) ✅
2) Max out backdoor Roth IRAs: $12,000 of $12,000 (100% done) ✅
3) Use taxable brokerage in addition to 1) and 2) to save $100,000 total for retirement: $64,500 of $68,500 (94.2% done)
4) Max out 529s for state tax benefit: $16,000 of $16,000 (100% done) ✅
5) Save 20% down payment for a $450,000 house: $90,000 of $90,000 (100% done) ✅
6) Continue to pay minimums on student loans as long as rates remain <4%
7) Finalize estate documents