New Years Financial Resolutions

[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

Perhaps writing these down will help with keeping them.

[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.

[Taylor Larimore]

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.”

[Picasso]

My resolution is to try and not agonize over each expenditure. It’s not helpful and it makes me anxious.

[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.

[Tingting1013]

Spend $200k on a home renovation.

Buy a new electric three row SUV.

Fully fund both megabackdoor Roths.

[Wiggums]

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]

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

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.

[9-5 Suited]

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]

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.

[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]

My financial goals for 2021:

1) Max out Roth IRA
2) Say a daily prayer for positive returns in the stock market

[RadAudit]

Stay solvent

[Runyer]

Make final adjustments to portfolio in preparation for a 2022 retirement!

[DesertDiva]

I'm resolved to stay the course!

[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.

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."

[nakatomi]

Keeping it boring, just like other years.

Well said - boring is often best.

[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.

[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]

* 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)

[Elsebet]

- increase charitable contributions
- increase taxable account

[crinkles2]

I would like to increase my savings rate, as I feel behind in investing, especially after tax.

[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]

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]

Annihilate the rest of my student debt.
Continue to max my R-IRA.
Max my HSA.

[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]

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.

[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.

[NEsaver]

Max out tax-deferred account, backdoor roth, and attack student loans with abandon!

[LadyGeek]

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

NEsaver, Welcome!

[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.

[ram]

Spend the money on travel in 2021 (or 2022) that we could not in 2020.

[UpperNwGuy]

My resolution is to stay the course.

[dharrythomas]

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]

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.

[luminous]

Make final adjustments to portfolio in preparation for a 2022 retirement!

Woot! What adjustments are those, if I can ask?

[spanky123]

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]

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]

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]

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]

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

[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.

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]

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

[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.

[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.

[geerhardusvos]

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

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!

[wander]

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

[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]

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.

[luminous]

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)