While tinkering with our account on Mint, I decided to play with the Goals feature. There was already one goal–the emergency fund–that’s being tracked. We can’t track the student loan because the company is not in the list yet, but I had already requested so let’s see what happens.
I added new goals:
- Save for college
- My retirement (here in the US)
- Husband’s retirement (continuation)
- Grand Design Project
We have our Kiwisavers still in NZ that we can’t take out yet until we’ve reached one full year of living overseas. It doesn’t do us any good that it’s sitting there because the government does not contribute to accounts whose holders are living and working overseas. Kinda sucks, but it makes sense because why would they give us benefit when we’re not paying taxes, right?
So for now, what I’m doing is researching on investment companies to find one where I’m going to invest my Roth in. I would’ve chosen Traditional IRA but I don’t plan to retire and get my money when I’m 70.5 years old. I just don’t see myself working that far out in my life. I would rather be doing other things, such as traveling, cooking for a living (maybe own a café), teaching pre-school kids…the list goes on and on, but those mentioned are strongly my inclination.
I would’ve done those things now but they aren’t exactly paying much. I earn a good living, a really good one in terms of money. It’s a career but it’s not all that to me anymore. It used to be the guide in my life, but after having a child I realized that life has more to offer.
Based on our goals to retire at 55 (me) and 65 (him), about 90% of discretionary funds after paying fixed expenses MUST go towards funding retirement! That means we might not be able to fund our Grand Design Project, which was inspired by the show itself. I strongly recommend that you watch a few episodes of it before you buy a house, and even if you’re not, the show would still be good for your soul. 🙂
With very simple finances, I’m able to see the picture. Thanks for that! I wonder how others with complicated finances do it? It being many things actually–buying a large house, vacationing, shopping, sending kids to school, funding retirement, etc.
There are risks involved that some people choose to take. I know at some point my strategy will change because we would really love to build our own home someday and have our child experience living in it before he moves out and lives on his own. I know he’s only 3 but saving takes time!
So, really, what makes sense is to complete funding our emergency fund and then pay off student loan. Blech.