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ceding control of investments

February 5th, 2018 at 12:08 am

Reading TexasHusker's post made me reflect a little. From the start my DH and I had conflicting investment strategies. He believed he could beat the market, I never thought so. So when we met and before we married we had pretty much nothing. We were struggling to stay out of debt and pay our bills. When he got his first job we finally were married (got a green card), and started saving and investing. We each had a Roth IRA and his 401k. We put the 401k into investments chosen by his company and I picked them. Then we agreed to invest our Roth IRA ourselves. We could each choose to invest risky or not. He decided to buy individual stocks. I chose to invest in boring ETFs. I did better than him.

That being said. In around 2010 with the birth of our first child I cede control of my Roth IRA to DH because I fell into deep post-partum depression/anxiety. I was on medications for about 18 months until I was again pregnant. Then I was off for a few months but mid-way again I needed the medications. Please don't say I didn't need it, I did and yes I saw someone and I can describe now as this anxiety of wanting to throw myself off the roof or constant anxiety and fear of being crazy. I wasn't myself until I finished breastfeeding my DK2 at a little over a year so end of 2013. My hormones made me crazy. I suffered a miscarriage as well between DK1 and DK2 hence their 30 months apart instead of 24 months as I planned.

So I handled basically our budget, living expenses, and oversight of taxes. But I relinquished all investment control during this time and I couldn't tell you what we were doing. I could see it from our tax statements but I had no energy to care.

But we lost a ton of money in our Roth IRAs during this time though the market was good. DH was trading oil commodities. Lesson learned. Turned out this lesson made him realize he couldn't beat the market.

So he began investing in index funds and he changed his mentality after losing the money. That also allowed him later to get on board with hands off investing into index/etfs. Tomorrow I'll finally dig into our finances during that time.

E-File Cabinet Organization

January 10th, 2018 at 10:57 pm

So we have an electronic file cabinet. We scan in everything, keep electronic copies of all statements, all tax documents, important receipts, etc. It makes very organized every month statement of investments, checking/savings/CC, loans, etc.

But it does take quite a bit of while. I have been working 1.5 hours tonight and I'm still not done. I'm doing monthly statements pretty much for every account we have for 2017.

I already have our 1099 for Chase for our checking/mortgage documents because of this. But loading each pdf can take awhile. Then saving it and cleaning it up. Further scanning in bills that are not electronic like our water bill takes time. Also invoices or receipts for our remodel takes awhile as well.

I used to try and keep up 1x/month. Usually in the 1st week I download all credit card bills and statements and sit and make payments as well on the 1st. This usually takes 1-2 hours. I also log each payment and copy the confirmation code into an excel spreadsheet. But today I am doing all statements for investments mostly I've missed in 2017.

Then after I'm done my DH comes along and backups our electronic file cabinet, that's what we really call it, onto an external hard drive along with our photos from our phones. He also do a cloud backup as well. So we have a few different copies of everything. Included our file cabinet is scans/photos of birth certificates, passports, visa, all important documents.

I will admit has become quite time consuming. Sometimes I wonder if I should just kick it off. But it really helps us keep all bill paid on time.

What do you do

Financial Update

September 20th, 2017 at 10:20 am

MM inspired me to check and it's been a great year 2017 financially. Our retirement savings has gone up $131k so far this year with our contributions being $11k IRA and $12k into 401k. The taxable accounts are up $97k for the year. So we are up around $228k in net worth conservatively.

I hope the year continues like gang busters. At this rate we are on track within 5 years to be FI at our crazy spending rate. We are definitely FI if we would sell the house and live in a cheaper COLA. This is how compound interest works out in people's favor. The longer and earlier you start the more you have.

529 versus Real Estate

June 16th, 2017 at 10:31 am

So we're doing our ESA at $2k/year for each kid. We have mentioned adding to that around $2k/year each kid into a 529.

Right now we are positioning ourselves to be financially independent soon enough not including college. DH will be 52 and I will be 50 when our youngest goes to college. I always had it as a goal that we would be Financially independent by 45 and I think it'll happen. But realistically I think we may have to wait until age 55 for DH to "retire" so that we could cash flow college.

But reading more about investing in real estate and I think in 2 years we could save enough to perhaps consider investing in it. I wonder if it would make sense to do a rental property for each child and use that instead of 529?

There are a lot of negatives including we're starting late, they won't be paid off and the cash flow might not work. Plus we'd need at least 2 homes for each child. But I wonder if this would make sense?

I can't do it for something that generates $100/month cash flow even with the depreciation tax break. I think that means we'll have to invest in something away and be an absentee landlord to make it happen.

Plus I need DH to get on board. I know he'll be anti-real estate. So anything I find has to make a lot of financial sense.

Any thoughts or experiences? Do you think this is a good idea? This is a long term play so I think with our financial situation we need at least 2 years of stability right now and planning. I need time to research to present my report to DH about where and how we will invest and who will manage the property for us. This is not something I feel we can jump into since we'll be needing to foot most of the cash down payment, emergency fund at first.

cash on hand

June 12th, 2017 at 09:26 am

So we bought our house. We still have about 1.5-2 years of living expenses in cash. But we are planning on doing some extensive remodeling of the basement. We also have to stash another $15k for 2017 Roth IRAs and college savings. I'm thinking also that we should start $2k for each DK into a 529. That would take our savings to $19k plus $18k into the 401k.

I find myself hesitating because I don't want to not enough cash on hand to do a remodel cash. But it's a strange feeling after sitting on so much cash to be down to a more reasonable number and still hesitating to invest it.

Plus I feel like we have a tentative spending budget but there are a lot of variables we can't account for yet. Maybe by the end of the year I'll feel comfortable enough to invest some of our cash.

What about everyone else? My goal is 6 months cash on hand and the rest is invested. We used to live like this but when we moved without income we bumped it up to as much as possible.