1/15/2024 0 Comments 2022 money movesThe market was in the toilet in 2022 and I figured with share prices low it was a good time to roll some shares over from our SIMPLE to our ROTH IRAs. Rolled Over Some Assets From Our SIMPLE to ROTH IRAs While the Market is Low So I sold the Mutual Funds and bought a few different ETFs. Exchange Traded Funds (~0.03%) I realized we probably lost a lot of $ during those 24 years to fees. They have done well, but after looking a the expense ratios for those funds (~1.05%) vs. Mia and I have been saving for retirement for 25 years! For 24 of those years I mostly auto-invested in a few Mutual Funds. Swapped Mutual Funds for Lower Expense Ratio ETFs It’ll be a decent little cup of cash in 5 years when it matures. As time goes on, the interest rate will probably go down, but still be a super safe place to stash money, earning more than a High-Yield Savings Account. I bought iBonds at a rate of 9.26% then I bought some more at 6.89%. Series I savings bonds get their interest rate from the rate of inflation and inflation had been super high so the returns on iBonds have also been high. I want to not have a mortgage as soon a possible. In addition to the low rate, I also pay more towards the principal each month, essentially making it a 13 year mortgage. I believe this is one of the most important money moves we made because paying for healthcare is going to be our biggest expense in retirement.įor more info on HSAs listen to Journey To Launch Episode 40 Contributed Extra to our Mortgage PrincipalĪt the end of 2021 we refi’d our home mortgage from a 30 year to a 15 year at 1.99% ONE POINT NINE-NINE PERCENT! I get high every time I say that. We contributed the max to our HSA in 2022. Starting Jan 1 2022, we switched our company’s health insurance plan to a HSA and deposited the difference for the now high-deductible amount into everyone’s account. You contribute pre-tax money going in, it grows tax free and it’s tax free coming out if you use it for qualifying medical expenses. In 2021 I learned about Health Savings Accounts (HSA) and how they are the best investment vehicle in existence. It’s not as much as I like, but we’ll bump it in 2023 and even more after we pay off another round of debt (more on that below). We also upped our monthly contributions to our kid’s 529 Educational Savings account to $400/month. 2022 was the first full year of maxing out since 2009. Here are the Money Moves Mia and I Made in 2022 Maxed Out Both of Our ROTH IRAsĪfter paying all the personal debt from our investment property project in 2021, we resumed maxing out our ROTH IRAs (backdoor style like a boss). It’s also cool to be able to look back and see goals being met (or not). I wanted to start recording Mia’s and my financial accomplishments (and setbacks) to promote transparency and help fight the stigma against being open and honest about money. 2023, bring it!” Mandi Woodruff, Brown Ambition Podcast, Episode 340
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |