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Goals for 2008

December 27th, 2007 at 09:38 pm

Fiancial Goals for 2008

Overall Goals
[ ] Needs/Wants/Savings at 50/30/20%
[ ] Target Portfolio Goal $4.3 million
[ ] Target Annual Savings $13,200

These targets come from the books All Your Worth and The Complete Idiot's Guide to Getting Rich.

Investing:
[ ] DH's 401k at 10% (12% stretch goal)
[ ] Max out IRAs ($10k)
[ ] Non-retirement contribution $3k
[ ] Net worth increase by $40k
[ ] Portfolio return of 12%

We've recently increased DH's 401k from 6% to 10%. Once that's comfortable we'll try for 12%. His employer has a match all the way up to the max contribution ($15,500)!

Short-Term Goals:
[ ] Taxes due ($10k)
[ ] Will and Trust ($2000)
[ ] Overseas airfare to visit family ($4500)

(So far I have $9500 set aside for the taxes, and $1500 for the wills.)

To Do List:
[ ] update W-4 (federal and state)
[ ] update wills and trust
[ ] invest IRA rollover money
[ ] review life and disability insurance
[ ] earthquake/disaster box
[ ] move $40k from taxable account to 529 plan

Notes
To set up the Target Portfolio Goal, I used this calculator: http://www.hughchou.org/calc/retire.cgi. The assumptions I put in are an annual income of $150k, retire at age 60, live for 40 years, 3% inflation, and 10% portfolio return.

To calculate the Target Annual Savings, I used the PMT function in excel, with rate=10%, nper=23 (num years), pv= -364,000 (present retirement accounts), fv=4,300,000 (portfolio goal). Note you need to set the PV to a negative number and the FV to a positive value. The result will be a negative number, which is how much you need to contribute ($13,200 in my case.)

2 Responses to “Goals for 2008”

  1. luxlivingfrugalis Says:

    Zetta I find your planning targets and goals very admirably done! I wish I had been as smart as you at your age.

  2. Livingalmostlarge Says:

    I'm impressed that you get a match up to the maximum! Nice!

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