New Years Financial Resolutions

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nakatomi
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New Years Financial Resolutions

Post by nakatomi »

Happy 2021 all! What is your #1 investing/financial resolution for the new year?

My goal is to increase our savings rate to 15% of gross income :moneybag

Perhaps writing these down will help with keeping them.
Ivygirl
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Re: New Years Financial Resolutions

Post by Ivygirl »

Paying down the mortgage. If I don't pay extra it would be paid off when I am 68. The earlier it is paid off the sooner I could retire. So I look at it as "buying back" time in case I end up not able to work until I am 70. I love seeing the end of that amortization table inch backward.
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Taylor Larimore
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Re: New Years Financial Resolutions

Post by Taylor Larimore »

nakatomi wrote:
What is your #1 investing/financial resolution for the new year?
nakatoma:

I am 96 years old. My "resolution" is to give away as much as I can without running out of money.

Best wishes.
Taylor
Jack Bogle's Words of Wisdom: “My only regret about money, is that I don't have more to give away.”
"Simplicity is the master key to financial success." -- Jack Bogle
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Picasso
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Re: New Years Financial Resolutions

Post by Picasso »

My resolution is to try and not agonize over each expenditure. It’s not helpful and it makes me anxious.
backpacker61
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Re: New Years Financial Resolutions

Post by backpacker61 »

Goal is to fully fund my 401K, HSA, and non-deductible tIRA for one more year.

Accrue one more year of OASDI earnings credits.

Consolidate more of my retirement savings into my Vanguard taxable brokerage account to simplify management of my portfolio; for myself as I age, and for my beneficiary after I expire (all my liquid assets will then fall under TOD/POD designation). My goal is to be through with this by EOY 2021.
“Now shall I walk or shall I ride? | 'Ride,' Pleasure said; | 'Walk,' Joy replied.” | | ― W.H. Davies
Tingting1013
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Re: New Years Financial Resolutions

Post by Tingting1013 »

Spend $200k on a home renovation.

Buy a new electric three row SUV.

Fully fund both megabackdoor Roths.
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Wiggums
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Re: New Years Financial Resolutions

Post by Wiggums »

Taylor Larimore wrote: Fri Jan 01, 2021 10:16 am
nakatomi wrote:
What is your #1 investing/financial resolution for the new year?
nakatoma:

I am 96 years old. My "resolution" is to give away as much as I can without running out of money.

Best wishes.
Taylor
Jack Bogle's Words of Wisdom: “My only regret about money, is that I don't have more to give away.”
You’ve earned that right. Well done, Taylor
H-Town
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Re: New Years Financial Resolutions

Post by H-Town »

nakatomi wrote: Fri Jan 01, 2021 1:15 am Happy 2021 all! What is your #1 investing/financial resolution for the new year?

My goal is to increase our savings rate to 15% of gross income :moneybag

Perhaps writing these down will help with keeping them.
I take one day at a time. My resolution every day I wake up: Overachieve in every single category than what I did yesterday.
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9-5 Suited
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Re: New Years Financial Resolutions

Post by 9-5 Suited »

Ivygirl wrote: Fri Jan 01, 2021 10:06 am Paying down the mortgage. If I don't pay extra it would be paid off when I am 68. The earlier it is paid off the sooner I could retire. So I look at it as "buying back" time in case I end up not able to work until I am 70. I love seeing the end of that amortization table inch backward.
Regardless of the arguments about whether or not to pay down debt, I find that debt reduction is a more motivating goal than investing because you can always see your progress and know how much further you have to go. Contrast that to investing where every time I hit a milestone, it happened because of some market fluctuation beyond my control. I just checked my finances one day and “oh hey, I hit the goal!” And then two months later, I’m short of the goal again :)

Paying off the mortgage feels like an exciting race toward that end number of $0, and what’s even better is that over time it gets progressively easier to make a dent as the interest portion declines.
Rudedog
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Re: New Years Financial Resolutions

Post by Rudedog »

Convert some of my cash holdings to equities, I have too much cash in money market and online savings. Also, I will "donate" my wife's and my $ 1,200 of stimulus money to two charities, both animal shelters.
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9-5 Suited
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Re: New Years Financial Resolutions

Post by 9-5 Suited »

Keeping it boring, just like other years. Max our tax advantaged accounts and split after-tax investing equally between taxable brokerage and debt reduction.

Tesla purchase might be in the cards if we can figure out an electricity solution in our condo parking garage.
40 Years' Gatherin's
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Re: New Years Financial Resolutions

Post by 40 Years' Gatherin's »

My financial goals for 2021:

1) Max out Roth IRA
2) Say a daily prayer for positive returns in the stock market :sharebeer
RadAudit
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Re: New Years Financial Resolutions

Post by RadAudit »

Stay solvent
FI is the best revenge. LBYM. Invest the rest. Stay the course. Die anyway. - PS: The cavalry isn't coming, kids. You are on your own.
Runyer
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Re: New Years Financial Resolutions

Post by Runyer »

Make final adjustments to portfolio in preparation for a 2022 retirement!
DesertDiva
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Re: New Years Financial Resolutions

Post by DesertDiva »

I'm resolved to stay the course!
Ivygirl
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Re: New Years Financial Resolutions

Post by Ivygirl »

9-5 Suited wrote: Fri Jan 01, 2021 11:13 am
Ivygirl wrote: Fri Jan 01, 2021 10:06 am Paying down the mortgage. If I don't pay extra it would be paid off when I am 68. The earlier it is paid off the sooner I could retire. So I look at it as "buying back" time in case I end up not able to work until I am 70. I love seeing the end of that amortization table inch backward.
Regardless of the arguments about whether or not to pay down debt, I find that debt reduction is a more motivating goal than investing because you can always see your progress and know how much further you have to go. Contrast that to investing where every time I hit a milestone, it happened because of some market fluctuation beyond my control. I just checked my finances one day and “oh hey, I hit the goal!” And then two months later, I’m short of the goal again :)

Paying off the mortgage feels like an exciting race toward that end number of $0, and what’s even better is that over time it gets progressively easier to make a dent as the interest portion declines.
Not only is it exciting to pay on the house, it is essential risk management as I see it. At my age (shady side of 55) and income (moderate) and profession (administrative assistant), I have two great risks: 1) something will happen to my health that will force me to retire early; 2) employers will decide they don't need quite so many skilled administrative assistants and I'll have to transition into a lower-paying job. Paying down the mortgage is a race against either of those things happening.

I also make sure to allot money to keeping my house salable - nice lawn, maintenance of the exterior. Right now I am stripping and painting interior woodwork, something I probably wouldn't do if my only motive was to redecorate. So I guess my New Year's Resolution 1B is "maintain and enhance the value of my home."
Topic Author
nakatomi
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Re: New Years Financial Resolutions

Post by nakatomi »

9-5 Suited wrote: Fri Jan 01, 2021 11:20 am Keeping it boring, just like other years.
Well said - boring is often best. :sharebeer
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AerialWombat
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Re: New Years Financial Resolutions

Post by AerialWombat »

My primary financial goal for 2021 is to work less but save more.

I’m doing this by killing off the entire “R&D” budget in my business and redirecting that capital into my own pocket.
For entertainment purposes only.
jeremyl
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Re: New Years Financial Resolutions

Post by jeremyl »

1.Earn $100k
2.Max Roths on 1/4.
3.Max HSA by 3/31.
4.Save $1K/month into Taxable.
5.Save approximately $50K total including work retirement plan with company match.
6.Purchase my fun car (Jeep Sahara or Mojave edition when it comes out).
7.Take at least 2 beach vacations this year.

Trying to be a FI Teacher by 52. 43 now.

Best of luck to everyone on your 2021 financial goals.
pasadena
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Re: New Years Financial Resolutions

Post by pasadena »

* Keep expenses on budget (!)
* Max-out Backdoor Roth - by next week
* Max-out 401(k) - by March
* Max-out Mega Backdoor - by July
* Save $25k in taxable - by EOY
* Pay off car loan - by EOY or Q1/2022

Additionally:
* Sell most or all of my remaining TSLA stock in taxable, while trying to keep taxes in check
* Go home for a couple of months for Christmas / NYE (foreign country)
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Elsebet
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Re: New Years Financial Resolutions

Post by Elsebet »

- increase charitable contributions
- increase taxable account
"...the man who adapts himself to his slender means and makes himself wealthy on a little sum, is the truly rich man..." ~Seneca
crinkles2
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Re: New Years Financial Resolutions

Post by crinkles2 »

I would like to increase my savings rate, as I feel behind in investing, especially after tax.
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calvin+hobbes
Posts: 236
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Re: New Years Financial Resolutions

Post by calvin+hobbes »

Increase savings rate to 50%. It was 43% in 2020 and 35% in 2019.

Finalize a will and estate plan. Been procrastinating on this for the last year. A work in progress.
Normchad
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Re: New Years Financial Resolutions

Post by Normchad »

I need to update my wills, trusts, etc.

This was on the todo list for 2020 as well, but we've been hunkered down this year......
BhotR
Posts: 2
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Re: New Years Financial Resolutions

Post by BhotR »

Annihilate the rest of my student debt.
Continue to max my R-IRA.
Max my HSA.
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btq96r
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Re: New Years Financial Resolutions

Post by btq96r »

Make my first home purchase, get out of the rent market.

Continue to live below my means so I can keep chugging away towards retirement savings and be like Taylor when I grow up (caring mostly about how much I can give away).
rossington
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Re: New Years Financial Resolutions

Post by rossington »

Taylor Larimore wrote: Fri Jan 01, 2021 10:16 am
nakatomi wrote:
What is your #1 investing/financial resolution for the new year?
nakatoma:

I am 96 years old. My "resolution" is to give away as much as I can without running out of money.

Best wishes.
Taylor
Jack Bogle's Words of Wisdom: “My only regret about money, is that I don't have more to give away.”
You're a gem Taylor. God Bless.
"Success is going from failure to failure without loss of enthusiasm." Winston Churchill.
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avenger
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Re: New Years Financial Resolutions

Post by avenger »

Continue living without a budget and putting away whatever else remains. Spending more on travel this year as we didn’t travel as much last year.

Same thing I’ve been doing for the last nearly 10 years.
cheers ... -Mark | "Our life is frittered away with detail. Simplify. Simplify." -Henry David Thoreau | [VTI, VXUS, VWITX, SV fund]
NEsaver
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Re: New Years Financial Resolutions

Post by NEsaver »

Max out tax-deferred account, backdoor roth, and attack student loans with abandon!
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LadyGeek
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Re: New Years Financial Resolutions

Post by LadyGeek »

This thread is now in the Investing - Theory, News & General forum (general discussion).

NEsaver, Welcome!
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k3vb0t
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Re: New Years Financial Resolutions

Post by k3vb0t »

1. Continue maxing 401k and two IRAs.
2. Spend more money on experiences with my wife and kids.
3. Try not to sweat the small stuff. We’ve got the big things more than sorted but I tend to be too attentive to small costs. I need to relax more.
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ram
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Re: New Years Financial Resolutions

Post by ram »

Spend the money on travel in 2021 (or 2022) that we could not in 2020.
Ram
UpperNwGuy
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Re: New Years Financial Resolutions

Post by UpperNwGuy »

My resolution is to stay the course.
dharrythomas
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Re: New Years Financial Resolutions

Post by dharrythomas »

Taylor Larimore wrote: Fri Jan 01, 2021 10:16 am
nakatomi wrote:
What is your #1 investing/financial resolution for the new year?
nakatoma:

I am 96 years old. My "resolution" is to give away as much as I can without running out of money.

Best wishes.
Taylor
Jack Bogle's Words of Wisdom: “My only regret about money, is that I don't have more to give away.”

Happy New Year and God bless you Taylor.

Thanks for you many contributions here.
dharrythomas
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Re: New Years Financial Resolutions

Post by dharrythomas »

Other than preset contributions to Roth IRA and TSP, don’t do anything, just sit here. Quit fine tuning, just leave it alone and let it go in 2021.
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luminous
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Re: New Years Financial Resolutions

Post by luminous »

Runyer wrote: Fri Jan 01, 2021 11:32 am Make final adjustments to portfolio in preparation for a 2022 retirement!
Woot! What adjustments are those, if I can ask?
50/20/30 US stock/international stock/bonds. Hope to semi-retire in 2022.
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spanky123
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Re: New Years Financial Resolutions

Post by spanky123 »

Rudedog wrote: Fri Jan 01, 2021 11:14 am Convert some of my cash holdings to equities, I have too much cash in money market and online savings. Also, I will "donate" my wife's and my $ 1,200 of stimulus money to two charities, both animal shelters.
+1. Plan to shift cash to equity this year.
elle
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Re: New Years Financial Resolutions

Post by elle »

1. Max out 401k, Back door Roth IRA, Mega back door Roth
2. Max out HSA
3. Increase mortgage principal payments by to achieve payoff by target retirement.
4. Put aside something for 529 (more fluid and lower priority)
5. Spend less (including these savings goals) than I make.
manatee2005
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Re: New Years Financial Resolutions

Post by manatee2005 »

9-5 Suited wrote: Fri Jan 01, 2021 11:20 am Keeping it boring, just like other years. Max our tax advantaged accounts and split after-tax investing equally between taxable brokerage and debt reduction.

Tesla purchase might be in the cards if we can figure out an electricity solution in our condo parking garage.
Move to a house
Savvy
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Re: New Years Financial Resolutions

Post by Savvy »

I have two:
Make hay while the sun shines
Buy shares (I think we'll have a bear market, so NW may go down, but all I can do is keep buying shares)
Broken Man 1999
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Re: New Years Financial Resolutions

Post by Broken Man 1999 »

Normchad wrote: Fri Jan 01, 2021 11:32 pm I need to update my wills, trusts, etc.

This was on the todo list for 2020 as well, but we've been hunkered down this year......
We need to do the same. The change in the inherited IRAs area make some tweaks necessary.

Broken Man 1999
“If I cannot drink Bourbon and smoke cigars in Heaven then I shall not go. " -Mark Twain
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9-5 Suited
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Re: New Years Financial Resolutions

Post by 9-5 Suited »

manatee2005 wrote: Sun Jan 03, 2021 4:05 am
9-5 Suited wrote: Fri Jan 01, 2021 11:20 am Keeping it boring, just like other years. Max our tax advantaged accounts and split after-tax investing equally between taxable brokerage and debt reduction.

Tesla purchase might be in the cards if we can figure out an electricity solution in our condo parking garage.
Move to a house
Well that would be a major lifestyle change we aren’t interested in. Downtown Chicago SFH inventory skews heavily into the 7 figures while our premium city and lake view condo is about $500k. No interest in the suburbs, especially just to facilitate a car purchase. If it doesn’t work out for the car, so it goes.
Broken Man 1999
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Re: New Years Financial Resolutions

Post by Broken Man 1999 »

Ivygirl wrote: Fri Jan 01, 2021 11:48 am
9-5 Suited wrote: Fri Jan 01, 2021 11:13 am
Ivygirl wrote: Fri Jan 01, 2021 10:06 am Paying down the mortgage. If I don't pay extra it would be paid off when I am 68. The earlier it is paid off the sooner I could retire. So I look at it as "buying back" time in case I end up not able to work until I am 70. I love seeing the end of that amortization table inch backward.
Regardless of the arguments about whether or not to pay down debt, I find that debt reduction is a more motivating goal than investing because you can always see your progress and know how much further you have to go. Contrast that to investing where every time I hit a milestone, it happened because of some market fluctuation beyond my control. I just checked my finances one day and “oh hey, I hit the goal!” And then two months later, I’m short of the goal again :)

Paying off the mortgage feels like an exciting race toward that end number of $0, and what’s even better is that over time it gets progressively easier to make a dent as the interest portion declines.
Not only is it exciting to pay on the house, it is essential risk management as I see it. At my age (shady side of 55) and income (moderate) and profession (administrative assistant), I have two great risks: 1) something will happen to my health that will force me to retire early; 2) employers will decide they don't need quite so many skilled administrative assistants and I'll have to transition into a lower-paying job. Paying down the mortgage is a race against either of those things happening.

I also make sure to allot money to keeping my house salable - nice lawn, maintenance of the exterior. Right now I am stripping and painting interior woodwork, something I probably wouldn't do if my only motive was to redecorate. So I guess my New Year's Resolution 1B is "maintain and enhance the value of my home."
I agree with you in keeping your home nice, we do the same thing, though we have no intentions of ever selling. Fortunately our home is set up allow us to age in place.

So we are the ones able to enjoy the nice, updated home where we have lived since 1989, not some buyer in the future who most likely would redo our home to fit their tastes anyway.

Broken Man 1999
“If I cannot drink Bourbon and smoke cigars in Heaven then I shall not go. " -Mark Twain
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ThriftyGeorge
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Re: New Years Financial Resolutions

Post by ThriftyGeorge »

Purchase less, save more, and appreciate what I already have. We are in the process of refinancing to a 2.25% 15 year mortgage and I would like to make plans to start a will/trust for the first time.
“Advertising has us chasing cars and clothes, working jobs we hate, so we can buy sh*# we don’t need.”...Tyler Durden
averagedude
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Re: New Years Financial Resolutions

Post by averagedude »

My 2021 financial resolution is to track my spending. I did this for 20+ years, but got out of the habit over the last several years. Not trying to curb my spending, just making sure that my spending aligns with what we value. Perhaps typing this down on this thread will make this happen.
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geerhardusvos
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Re: New Years Financial Resolutions

Post by geerhardusvos »

nakatomi wrote: Fri Jan 01, 2021 1:15 am Happy 2021 all! What is your #1 investing/financial resolution for the new year?

My goal is to increase our savings rate to 15% of gross income :moneybag

Perhaps writing these down will help with keeping them.
Not changing anything. I’ve been investing over 50% of my income for 3 years, and will keep the foot on the gas. Might take more time off of work this year. Hopefully get on a plane!
VTSAX and chill
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wander
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Re: New Years Financial Resolutions

Post by wander »

For me, there is no New Year Financial Resolution. I will continue what I have been doing for many years.
gator15
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Re: New Years Financial Resolutions

Post by gator15 »

Cut expenses. We somehow managed to increase expenses in a year when most people cut expenses despite not taking any vacations.

Be more tax efficient with investing. My wife’s company allows her to contribute after tax money in her 401k once she maxes her 401k. We’ve accumulated a decent amount in after tax dollars in her 401k but there doesn’t appear to be a Mega Backdoor Roth option with her company pertaining to after tax dollars. As a result, it probably doesn’t make sense to keep contributing money to her 401k once we’ve reached the max.
manatee2005
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Re: New Years Financial Resolutions

Post by manatee2005 »

9-5 Suited wrote: Sun Jan 03, 2021 11:20 am
manatee2005 wrote: Sun Jan 03, 2021 4:05 am
9-5 Suited wrote: Fri Jan 01, 2021 11:20 am Keeping it boring, just like other years. Max our tax advantaged accounts and split after-tax investing equally between taxable brokerage and debt reduction.

Tesla purchase might be in the cards if we can figure out an electricity solution in our condo parking garage.
Move to a house
Well that would be a major lifestyle change we aren’t interested in. Downtown Chicago SFH inventory skews heavily into the 7 figures while our premium city and lake view condo is about $500k. No interest in the suburbs, especially just to facilitate a car purchase. If it doesn’t work out for the car, so it goes.
You’d be surprised what a lifestyle upgrade is to go from a condo to a house. You can still be close to the city if you’re in Skokie or hinsdale for example.
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luminous
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Re: New Years Financial Resolutions

Post by luminous »

gator15 wrote: Sun Jan 03, 2021 1:33 pm Be more tax efficient with investing. My wife’s company allows her to contribute after tax money in her 401k once she maxes her 401k. We’ve accumulated a decent amount in after tax dollars in her 401k but there doesn’t appear to be a Mega Backdoor Roth option with her company pertaining to after tax dollars. As a result, it probably doesn’t make sense to keep contributing money to her 401k once we’ve reached the max.
I'd keep saving it there anyway. If she can't do an in-service rollover to a Roth IRA or Roth 401k, then when she leaves she can do that rollover. It is still a huge tax shelter. https://www.bogleheads.org/wiki/After-tax_401(k)
50/20/30 US stock/international stock/bonds. Hope to semi-retire in 2022.
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