The IRS came out with a directive on Nov 1, 2018 announcing changes to contribution limits in 2019.
Here’s in a nutshell what is changing.
- For employer sponsored plans such as 401(k), 403(b) – $19,000 (up from the current $18.5k)
- IRA – $6,000 (up from the current $5.5k)
- Roth IRA – $6,000 (up from the current $5.5k), with income phase-out range increasing from $193,000 to $203,000 (up from $189,000 to $199,000) for married couples filing jointly
You can read the original directive here or the technical guidance here.
Cheers to more saving!
Ah, a real beauty of a month! Months such as this one show that the going is not always smooth. We’ve been in the midst of such a bull market that dips (not even correction) are sort of necessary to show people who joined the party in 2009 or later that the markets can fluctuate quite a bit in the short term.
We lost a tad over $14k in net worth last month. Because our retirement accounts are by far the largest asset bucket it’s no surprise these are the accounts that took the largest hit. Taxable investment accounts and 529 account are down as well. Cash reserves grew. We put in about $3k into our debt obligations.
All will be well. We’re still pumping in the same rate into our retirement and taxable accounts.
Surprisingly, the major expense of last month was ….clothes and shoes, $570 worth of them! Astounding – I know. A pair of real nice work shoes, a belt, a sport coat, a winter coat, and alterations. All of these should last for years to come.
Another solid month. The key highlight to this month was stated in the last post. Another highlight was that M started on a new job. This job was lined up almost 10 months ago but the start was purposely chosen to be after the unofficial end of summer (Labor Day). We had one domestic and one international trip, each a week long, during the time M was enjoying time off between jobs.
One more thing of note. With the job change, and the corresponding change in salary, our combined annual income has gone past $250k. We will put up an income post for 2019 when we have the full year number.
The next near-term goal is to get the total assets up to a $1M by end of the year. Of course, a lot depends on the markets. As we have said in numerous posts, and will continue to reiterate, we fully acknowledge the huge role the bull market has played on our current state of affairs. We know the bears are bound to come at some point. We will ride those periods out.
Posts that give more context:
Who we are
Our Assets and Liabilities
In March earlier this year we wrote about how we were consolidating a couple of student loans into one single Earnest loan at 3.25%.
The Earnest loan began on Mar 21st at $15,824.50 by paying off the Navient and Discover loans.
On Aug 13th we paid off the remaining principal of $7,248.22 and the interest accrued since the last payment of $7.10, to pay a wholesome amount of $7,255.32.
In less than 6 months we’ve paid it off! We paid $180.82 in interest in that period.
Our remaining liabilities are the car loan and mortgage. At 0.9% standing at less than $14.5k we’re in no hurry to payoff the car loan. Mortgage is the next beast we intend to slaughter. At ~$217k, we anticipate to slay this in …wait for it …..4 years!
Another month where the trifecta of a) Socking money in retirement account, b) Paying down debt, and, c) Stock markets continuing in their upward trajectory – helped us in pushing our net worth close to $700k, notwithstanding the fact that we’ve been on one income for the whole month of August!
There were a couple of big expenses in August, all paid for by credit cards, which will be reconciled by cash this month and reflect in the next update. One of the expenses relate to travel (food and incidental; major categories such as flight and hotels were already paid for earlier); the other relate to a party we threw in August.
September heralds in a new job with a substantial greater income. Also, the outstanding student loan (~$8k) will be paid off by end of the end of this month (from the signing bonus of the new job).
Here’s what goes into our Assets and Liabilities.
Big ticket expenses for July:
- $816 for semi-annual vehicle insurance premium. We have a stand-alone checking account for vehicle and home insurance premiums, in which we sock away monthly amounts
- $260 for a bed that we bought on Amazon. We’ve been following this item for months now. The highest it has been was $640.
- Took a extended-weekend long trip to Canada which cost about $350, including gas, hotel, and meals
Another solid and stable month. Retirement and investment accounts continue to rise, buoyed by the markets and us systematically setting money aside. Debts went down by $3.1k.
Last day at my old job was in the last week of July. It’s almost 2 weeks now and I’m loving it. I won’t be starting at the new gig till September. Now that we are temporarily down to one income, the post on August will have some screwy numbers.
Big ticket expenses for June:
- $2,915.62 on airfare, lodging, and day tours for our upcoming trip to Iceland. Exciting! We have a standalone savings account for big trips and all of the expenses were paid from this account.
- $680.06 on patio and porch furniture. We have a standalone savings account for big household expenses and the furniture were paid from this account.
Our retirement accounts crossed over half a million dollars in June, for the first time. Debts reduced by $3.3k.
Other than that, nothing much to write home about. Haven’t changed what we put into our retirement or taxable accounts. Markets have been doing their thing. By end of this month, we go down to one income! More on that in next month’s update.