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| Subject: Re: Baby Steps | Date: 3/17/2004 9:38 PM | |
| Author: SeattlePioneer | Number: 2081 of 4981 | |
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<<* Made significant progress in funding IRA for 2003. I didn't quite fully fund it, but I was close. And I'm ok with not fully funding it (also a growth for me), because the amount was still about 10% of my gross pay and I feel like that is an accomplishment! * For the first time since my senior year in college, my net worth is in the black. * I hit the 5-figure mark in my investments, also a first. I figure I'm 1% of the way there. <g> * I learned enough to understand a little about my goals. As a result, I sold my first set of stocks that were no longer in line with my goals. >> All excellent accomplishments. Congratulations. <<This next year will probably have very different results since I'll be heading back to school in the fall and paying for a wedding, so my contributions to the retirement account will take a hit. However, I know that I've got a good foundation and I learned a lot. And I'll keep learning as I go. >> Keep those wedding costs down! A wedding is just a party, but way too many cost people big time in a hit to their net worth. Let's suppose you are 25, with 40 years until retirement at age 65. Let's further suppose that you might expect to earn 8% by investing extra dollars in your IRA each year. How much will you have in your IRA at age 65 for every dollar you cut in spending on a wedding now? Answer--- $21.72. Save yourself $1000 in costs and you could expect to have $21,720 additional dollars in your retirement account. Save $10,000 and your're talking $217,200. Or it might be money you'd find useful buying a house, or in financianing an extended leave to care for a child. But a PARTY? Think that one over carefully. Of course, if I'm invited, go ahead and bust the budget! Seattle Pioneer |
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