To be debt free, have an emergency fund of 3-6 months, start building wealth, to have enough liquidity to be able to take advantage of investing opportunities, and to give like never before.
Goals for 2012
Goal #1 Finish all home remodeling
Why is this important
We are out growing our home. We want a newer house in a different school district, better neighborhood, and a place that we can call home for many years to come.
Time frame
By May 1st.
Progress
12/2011: New hardwood floors installed in dining room and kitchen
11/2011: New roof put on
10/2011: Hardwood floors resurfaced
09/2011: Interior of the house repainted
Goal #2
Save for a down payment on new home
Why is this important
In order to avoid PMI on our new loan, to have equity, and to be able to get funding for a loan.
Time frame
By year end
Progress
This will be started after the house has been completely rehabbed.
Goal #3
Start contributing to 401k and Roth IRA
Why is this important
We want to retire with dignity. We don't want to depend only on Social Security to support us through our retirement. By having our own retirement, we will be able to control the standard of living that we desire.
Time frame
May 1st
Progress
Started researching mutual funds for Roth IRA
Goal #4
Invest in 529 Plan or Education IRA for child
Why is this important
Too many young adults are graduating with too much debt. This means that they are already behind when they start their lives as independent adults.
Time frame
May 1st
Progress
Started researching both plans to see which is best
Goal #5
Prepare a will and/or trust
Why is this important
It is one of the most loving things you can do for your family. If I was to have died yesterday, my family would know exactly what my wishes are and how I want them to be carried out. Having an estate plan helps to avoid probate which is a considerable nuisance.
Time frame
By year end
Progress
I think this should probably be completed sooner. I may go with a standard will for me and my wife. Later, when we have saved up, we can have a trust prepared. I really think I should reconsider this and just take care of right now.
Hi Al,
ReplyDeleteHope this post will make to the blog.
The Financial Crisis Inquiry Commission released its final report yesterday on the causes of the financial and economic crisis in the United States. What I've read so far is fraud is a big problem in banking and wall street. Greed is not a crime, fraud is. What will happen now as more is discovered from the FCIC document? ヅ
Dynafxd1,
ReplyDeleteI believe it. We have seen this throughout history. As the author of the book I'm currently reading points out "Speculation leads to fraudulent stock issues, embezzlement, new theories such as "new era." Speculation this time around was by the banks with "no doc" loans and by consumers when they purchased more house than they could afford. The banks should have stopped this with prudent underwriting but they didn't. They just sold the mortage down stream and the purchaser barely did any due diligence.
Then the investment banks bundled these mortgages into "high grade" bonds and sold them. These bonds were not priced correctly for the risk that the purchaser was taking as they were sold as "AAA" rated.
Yep, greed on everyone's part did it. We saw it in the past and we will see it again in the future.
I'm sure more will come out about the Crisis of 2008 as time goes by.