FIRE Progress Report – December 2018

Let’s dive right into the December 2018 FIRE progress report.

The Numbers

21.6151%

This is our invested assets/target number. Our invested assets span across a variety of investment vehicles such as 401k, HSA, IRA, Roth IRA, ESPP (Employee Stock Purchase Program) and standard taxable mutual funds.

116

The number of months until my 45th birthday and our finish date.

114.20

The number of expected months until we reach our target number based on our current expected monthly contributions, assuming a 10% annual return.

Where We Saved This Month

401k – $1754 total (employee and employer)

HSA – $420

Roth IRA – $900

ESPP – $231

Taxable Investments – This will start after we’ve built up an extra cushion in our savings account, probably closer to the end of the year.

What’s Happened and What’s Happening

Usually the end of the year will show a boost to all accounts with capital gains and dividends being distributed. Not only that, but starting next year, the amount we contribute to the Roth IRA will increase in order to invest up to the new maximum in place for 2019.

The ESPP (employee stock purchase program) started this month and will continue into the future with a higher amount showing up soon because of it hitting both paychecks each month. The plan is to withdraw it when the stock is purchased an buy other index funds.

I’ve found that having scheduled deductions pull the money out before I even realize it helps significantly with staying on track. It’s very easy to spend what shows up when it doesn’t have an explicit purpose. That’s one reason I signed up for the ESPP.

FIRE Progress Report – November 2018

Let’s dive right into the November 2018 FIRE progress report.

The Numbers

20.9111%

This is our invested assets/target number. Our invested assets span across a variety of investment vehicles such as 401k, HSA, IRA, Roth IRA, ESPP (Employee Stock Purchase Program) and standard taxable mutual funds.

117

The number of months until my 45th birthday and our finish date.

115.92

The number of expected months until we reach our target number based on our current expected monthly contributions, assuming a 10% annual return.

Where We Saved This Month

401k – $1754 total (employee and employer)

HSA – $420

Roth IRA – $900

ESPP – This will be starting in the next month.

Taxable Investments – This will start after we’ve built up an extra cushion in our savings account, probably closer to the end of the year.

What’s Happened and What’s Happening

This last month saw a hit to the markets which caused an increase to the number of months until we reach our goal and a decrease to our percent-to-goal. On the bright side, I decided to sign up for my employer’s employee stock purchase program (ESPP).

For 6 months, they’ll take a portion of my paycheck and then at the end of the 6 months, they’ll look back at the stock price at the beginning and the end of the six months. Whichever one is lower, they’ll buy it at that price and take a 15% discount on top of that. When the stock is purchased, I’ll sell it shortly afterwards and move the money into a Vanguard fund. That should give me at a least a 15% return minus taxes.

In addition, the side business has done very well and has allowed us to get much closer to building the savings account cushion back up.

FIRE Progress Report – October 2018

Let’s dive right into the October 2018 FIRE progress report.

The Numbers

22.3716%

This is our invested assets/target number. Our invested assets span across a variety of investment vehicles such as 401k, HSA, IRA, Roth IRA, and standard taxable mutual funds.

118

The number of months until my 45th birthday and our finish date.

112.38

The number of expected months until we reach our target number based on our current expected monthly contributions, assuming a 10% annual return.

Where We Saved This Month

401k – $1754 total (employee and employer)

HSA – $420

Roth IRA – This will show up on November’s report since the transactions will occur in October.

Taxable Investments – This will start after we’ve built up an extra cushion in our savings account, probably closer to the end of the year.

What’s Happened and What’s Happening

Since we paid off the house, we’ve been working on building our savings account up a bit. We didn’t have to touch our emergency fund to pay it off, but did pull some money from savings. It’s been slow going, but should be done by the end of the year even with our increased investing.

Recently, we got a nail in the tire of our Toyota Prius that wasn’t repairable. The two places we would normally go didn’t have the same tire in stock and weren’t sure they could get it. Our Costco membership came to the rescue as they had the same one in stock and could install it right then. Since the tires had 44k miles on them, we replaced a pair of them.

I learned about a couple of other Costco membership discounts.

  • We were already getting a good price on the tires, but to make the deal even better, they include a road hazard warranty, which if I recall correctly, normally costs around $16-20 per tire at other places.
  • They suggested I get an alignment, but they don’t do them there. However, I was given a card with a website where I could enter in my membership number and zip code to get a 15% off coupon to few different places that offer auto services. One of them was the place we normally go for oil changes. From now on, we’ll be getting 15% off of oil changes, which adds even more to the membership savings!

All that to say, it’s great to be able to use things that we already have to save extra money, but a disappointment that we had this unexpected expense pop up that will slow down our savings.

FIRE Progress Report – September 2018

I’ll be honest, I’m not consistent about posting on a regular basis, but I’m going to try to post a monthly report about our progress towards FIRE. It will be short and to the point without a lot of fluff. I’ll also give a tad bit of an update on the different things we’ve got going on and changes that we’ve made along the journey.

We’ve got to have a starting point. I’m a numbers guy, so let’s dive right in.

The Numbers

22.0113%

This is our invested assets/target number. Our invested assets span across a variety of investment vehicles such as 401k, HSA, IRA, Roth IRA, and standard taxable mutual funds.

119

The number of months until my 45th birthday and our finish date.

113.16

The number of expected months until we reach our target number based on our current expected monthly contributions, assuming a 10% annual return.

Where We Saved This Month

401k – $2629 total (employee and employer)

HSA – $610

Next month we’ll start putting money into the Roth IRA again.