Retirement, Retirement Journey, SAVINGS

The Stock Market Ups & Downs and My 5 Bucket Sources for Retirement.

grey metal case of hundred dollar bills
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Preparing for an ‘earlier’ retirement requires making sure our money lasts.  Having various ‘buckets’ of resources is how we won’t lose our minds when the stock market takes a bit of a tumble.

Before I begin, if you are worried about your money in the stockmarket, please watch this video.  You’ll feel MUCH better.

Buckets 1 & 2 – Our Retirement Accounts

We have amassed, in my opinion, a significant amount in our 401K retirement accounts.  I will always be an advocate of the stock market, as it has proven over and over again that it recovers.  Slow, steady and consistent investing will give you the money you need over time.  We are proof.

We have two retirement accounts, and consider them buckets 1 & 2.

The first bucket will have ultraconservative investments, and we will use it to get through the first 7 years of retirement.

The second bucket will be money we will let grow.  We figure we have another 12 years of growth.

Bucket 3:  CASH. 

My goal before we retire is to have $200,000 – $250,000 in cash reserves.  I believe this will be enough for us to weather a long down market.

Our cash goal is a lofty one, but one we could do.  Thanks to my husband’s career, the fact that he was never unemployed, and his hard work to get to the position he’s in, we are now able to bank 50% of his take home salary.  (Of course it doesn’t hurt that all four kiddos are off Mom & Dad’s payroll!).  If I’m diligent with our budget, this goal can be obtained in three years.  I will take the fourth year to pay off our mortgage, which is the only way my conservative husband will retire. 😉

Bucket 4:  Social Security

Of course, we will have social security (yes.we.will).  We won’t start receiving it until year 7 of our retirement.  (I’ll receive mine two years before hubby).  If we keep our expenses low,  it will cover 3/4 of our monthly expenses.

Bucket 5:  A Divorce Settlement Pension (My HealthCare Plan)

May I just say I earned every penny of this? For all those that may not know, I was married and divorced in my 20’s.  I will never go into the specifics of that, but I came out ahead  with two GORGEOUS daughters and a pension.  I will receive the pension at age 62 (the same year my husband plans to retire).  I will take it as a lump sum, then roll it into an IRA.  This should cover most of our healthcare needs before medicare kicks in.

I believe it’s imperative to have several ways to get money in retirement, and cash will play an even more important roll in the future.

How are you saving for retirement?  Or, how are you spending in retirement?  Please share in the comments.

Budgeting, saving money, SAVINGS

February’s Review & Savings.

white money printed card
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February was a high income month for us as we received a nice tidy sum from Uncle Sam for our tax returns. I was able to fund a spousal IRA with the proceeds.

This month I also continued to see how I could lower my fixed expenses.  After a couple of phone calls, I was able to lower my homeowner’s and car insurance policies by $200.00.  I also received Chase Rewards and Rakuten (formerly Ebates) for a total of $100.00.

However, February was not without its challenges.  We had some pretty hefty bills.

blue and silver stetoscope
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Some health issues reared their ugly heads which came to some big bills.  CT scans, new crowns, fillings and a tooth pulled, numerous doctors visits…. It all adds up.  Thankfully we had the money in our Health Savings Account to cover them.

Image result for picture of alaska

Our final payment for our 25th wedding anniversary trip in May was due this month to the tune of $3,500.  We are heading to Seattle/Alaska/Las Vegas!!  I had the money already saved, so I was all set there.  Fingers crossed we’ll be able to go.  It seems the west coast is experiencing the start of the Coronavirus.

Which brings me to our next large expense.

grocery cart with item
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I told myself to stay calm and even wrote a blog post about it.   I thought I was calm until I saw the end result of what I purchased from Amazon, Aldi, Trader Joe’s and BJ’s.  After stocking up on food, medicines, personal care and household supplies, I ended up spending a whopping $1,000! What the heck? How calm is that???

But the good news is that I’m pretty sure I won’t have to buy another bar of soap, shampoo, conditioner, garbage bags, toilet paper, tissues or cleaning supplies for two years and of course we’ll be able to eat for two -three months without stepping into a grocery store. 😉

Even with all those expenses, it was a good savings month. I was able to send $4,230 to an IRA (thank you tax return!), $1,200 to personal savings and $250 extra to the mortgage.

Total Savings for February:  $5,680!  I’m very pleased with the result.

How was your February?

 

 

SAVINGS

January’s Review and my 2020 YEAR OF SAVINGS begins.

white money printed card
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If you search my blog, you will see I deleted everything about a No Buy Year.  I’m not interested any more.  It felt punitive, and I felt like a copy cat.

animal pet fur head
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I’m much more interested in saving money, than spending less.  I know one begets the other, but I will automatically spend less if I save more, right?  MORE SAVINGS = Less spending, so why nickle and dime my daily spending?

My 2020 Year of Savings is now in full force, and January’s numbers prove it.

  • Amount sent to savings:  $2500.00
  • Extra sent to my mortgage: $3000.00

Yep, this feels much more positive than beating myself up for purchasing a lipstick.

Still accomplishing the ‘why’, but in a more upbeat, positive way.  Anyone else with me?