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.
Reader, I hope you are doing well and staying safe as we go into the holidays with another COVID wave rising. Cases in my area are up 80% in the past two weeks, though hospitalizations remain steady and there have been no deaths. Our community is only about 50% vaccinated, so I do not expect this to hold. Mrs. PIB and I are looking very forward to getting our older kid his shot when able.
A lot of moving money around but otherwise very standard cashflow this month. Biggest non-recurring expense was a new briefcase ($335) to replace my well-loved messenger bag that had served me since residency. We also had a monthly fancy date night ($220) and a lot of Christmas shopping.
The biggest news I covered in my last post; my wife’s student loans are gone. It doesn’t make sense from a purely financial perspective given the low interest rate, but it also shouldn’t cost us *that* much and it gets the extra complexity out of my hair.
I also put a good chunk of my inheritance from the sale of my dad’s house to work in the market and added to our kids’ Roth accounts. Like last year, they did a good bit of modeling for my wife’s business so it’s all above board.
For the first time in six months, interest rates have ticked up a whopping 0.01%. We see the big dent from my wife’s loans here, but no current plans to pay mine off early in the same way.
Net worth was stagnant with a slouching stock market; the S&P was down almost 1% in November with seemingly more pain to come. But I’ll keep shoveling money in and something tells me that a year (or two, or three) from now it will all work out.
As predicted last month, the super optimistic FI date prompted by the bolus of my inheritance is starting to recede toward something more realistic.
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: $124,500 of $68,500 (181.8% 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