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About Me:

Monkey Mama

Just a 46-year-old mom of 2 in Northern California. My kids are Monkey Monkey(MM) and Drama Llama (DL). I am married to Monkey Hubby (MH).

We were a one-income family for 13 years. In late 2015 my spouse returned to work (minimum wage/part-time/seasonal). Something recent on his resume just buys us more options for the long run. The main benefit of this job is that he just works while the kids are in school. As always, we are saving 100% of his income.

{2023 Update: I expect that MH will retire from this job when kids are done with college and/or home is paid off. I think he likes the idea of finding more interesting or full-time work, with kids both adults now. But practically, might just stick out the *good* and very flexible job as long as possible. The very part-time job is allowing him to pursue his film passions. We are only about 5-ish years away from financial independence. Would be very different if we "needed" the money or he thought he might have decades of working years ahead of him.}

We saved a lot while we were very young and also moved to a lower cost-of-living area, to make life much simpler. We still live in California though (in one of the most expensive regions of the U.S.). *Simple* and *inexpensive* is relative.

Likewise, we have never had debt aside from our mortgage.** My blog is a testament to how much simpler life is without debt; how we have that much more money to both save and enjoy!

**Caveat: I have no problem whatsoever with credit cards paid off monthly, or low-risk credit arbitrage (for example, 0%-interest debt while earning 5% on FDIC-insured cash). These are the kinds of debt we have had. Just not interested in high-interest debt, using debt to buy beyond means, and not interested in the hassle that comes with loans and payments. With age and means, the latter (hassle) is our biggest debt avoidance motivation.

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2024 Goals

[ ]Small monthly Charitable Contribution
...($35 @ 1/31/24)
...Trying to be more mindful about how the little amounts add up and are helpful.
...This is not an all inclusive list of charitable giving but it is a new habit I want to add in addition to other donations of time, goods and money

[ ]Pay cash for college
...This is so much a given, to me. But I realize not everyone can read my mind, and so will memorialize in my goal list.
...#1 We don't do Debt
...#2 The student loan system is a scammy and corrupt mess.
...Seriously, wouldn't touch these student loan servicers with a ten foot pole.
MM YEAR 1 ✔
MM YEAR 2 ✔
MM YEAR 3 ✔
MM YEAR 4

DL YEAR 1 ✔
DL YEAR 2

[ ]$10,000 to savings
...($4,529 @ 3/31/24)
...$1,000/month, plus interest
...Topping off with snowballs

[ ]$7,500 to investments
...($1,750 @ 4/30/24)
...$350/month, plus snowflakes
(Snowflakes: credit card rewards and dividends)
...Topping off with snowballs

[ ]$2,025 to mortgage
...($0 @ 4/30/24)
...Topping off with snowballs and/or excess cash
...Keeps us on track with $10K principal paydown per year

[/]9% of household income to work retirement plans
...(9% @ 3/31/24)
...This is the minimum for the match; I'd otherwise rather fund IRAs.
...Note: Total retirement savings rate is 20% (with IRAs)

Goal savings rate = 25% of gross salary, plus funding IRAs from other sources.

[ ]$14,000 to IRAs 2024 (MAX)
...($0 @ 4/30/24)
...Will fund with MH's income
...Will not fund until the year is over. This is for tax and planning reasons. I won't know what mix of Traditional/ROTH IRA we literally can contribute until we do our 2024 taxes. In addition to that, can make a more informed decision based on our financial and tax situation for the entire year.

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**Long-Term Goals**

[X]$500,000 in retirement accounts by age 45.

Current big picture goal:

[ ]$1 Mil in retirement accounts by age 52.

Stretch Goal: Achieve by age 50

Have decided to pretty much stay the course. Keep saving 20%+ to retirement. This means taking 401K match & maxing out IRAs.

NOTE: WE HAVE NEVER CONTRIBUTED LESS THAN 10% TO RETIREMENT. NO EXCEPTIONS.

If we can't achieve at least 10%, then something else has to give. I share because it's infinitely easier to save for retirement if you start early. Let the investments do the hard work for you.

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Debt: $85,000 mortgage
{Home Purchase Price $290,000}

Ongoing goal is to *never borrow money again.*

Took on a $230k mortgage in 2001 and have not added to that.

-------------------------

Net Worth: Increase net worth by $600,000 in the next 10 years. This is my "financial independence" goal.

2017: +$ 70,000 (partial year)
2018: +$ 51,000
2019: +$105,000
2020: +$104,000
2021: +$215,000
2022: <$ 65,000>
2022: +$ 85,000
TOTAL: +$565,000

This is in line with prior goal, saving 100% of our expenses every year.

{Our expenses are far more consistent than our income. Also, helps to prevent "living up to income."}

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My Pages

Retiring Parents

June 3rd, 2009 at 02:44 pm

I am feeling financial pressure!

Not a ton, but dh and I were talking last night. About our parents. I said, "I feel financial pressure." Dh asked if it is because our "inheritance" may be lowered as our dads face forced early retirement.

Huh?

No. I know WAY too many people who are financially strapped taking care of their parents. & of course we would help our parents if they needed it.

I don't think in terms of inheritance. I think in terms of how much help will our parents need. They are quite self-sufficient (I think). But the truth is I come across more people taking care of aging parents, then receiving inheritances, in my line of work anyway.

So basically, I am the only person currently employed in my immediate family. & that is a wee bit of financial pressure!!

---------------------------------------

Dh's dad is taking a forced early retirement this month. I've heard mixed things if he will look for another job or not.

My dad started disability (post stroke). Overall, everything is good with my dad. Good as can be. His employer is holding his job for him for now, and they are covering his health insurance - so that is good. His disability pay is quite ample. It's about his net paycheck anyway (which is quite large to begin with). & he is convinced COBRA is their saving grace since they were quoted $30k per year for private health insurance (pre-stroke!!!). COBRA gets him to age 60 and then there are other options.

I wouldn't be surprised if dh's dad does return to work, and I certainly expect my dad to return to work if he is able (he never wants to retire).

But since my mom "retired" in her 20s and dh's mom retired recently, we just realized all our parents will be unofficially retired at about the same time. How strange!

We are taking a wait and see attitude, and regardless of the grim nature of all this early retirement, we were thinking we should probably have a big party for them. Not now, but eventually.

I guess all this certainly does lower our odds of future inheritance. Somehow I think we will survive. Wink

My dad is 57. Dh's dad is around 60.

They will probably be fine (we got our financial smarts from them). My point though is: Things Rarely go as Planned! & all of this makes for a good reminder of that.

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Not much to report otherwise. Been kind of a no-spend week. May was spendy, so we figured no more spending until credit card closes (tomorrow).

In times of crisis I appreciate having the luxury not to count every penny. No doubt May was a little extra spendy as we cared for my parents. But I just appreciate not having to sweat it. So I have been a little removed from my finances, but I see nothing wrong with that.

The stock market has been doing so well, my net worth is up about $15k for the year (with that and all my saving). Well on my way to my $30k net worth increase goal. I've stagnated at $200k for a while (net worth) and so it's nice to move forward. I have no idea how temporary all this is. But I just enjoy seeing some positive numbers. Big Grin

Posted in Just Thinking | 4 Comments »

4 Responses to “Retiring Parents”

Joan.of.the.Arch Says:
June 3rd, 2009 at 03:50 pm 1244044255
1244044255

Oh dear, my DH is getting ready to retire early and I haven't had any income in months now. I wonder if our son is worried that he may end up taking care of us. I should ask him....Oh, and my own father retired early as well. Not until about 20 years later did he need occasional money help. He now lives with my sister, and even at that has needed help from us once with a healthcare matter (hearing aid)....So yeah, I think it is wise to think ahead to what parents may need.
monkeymama Says:
June 3rd, 2009 at 04:26 pm 1244046374
1244046374

Yes - as long as they are healthy I don't expect they need much. I am more worried about 20 years down the road really.

I am sure I worry more than the average 30-something.

It could go either way. My dad was always sure he would have to/want to help his impoverished parents. They passed extraordinarily young comapred to his grandparents (80s vs. 100s) and left a very decent inheritance (which shocked everyone). NO doubt they were preparing for long lives, which were in the genes. But I have seen so many people bankrupted by medical care and long-term care. It can go either way - you just don't know until the end.
dmontngrey Says:
June 3rd, 2009 at 04:50 pm 1244047833
1244047833

You and I are the same age and I worry too!! My dad is 62 and my mom will be 61 in a few months. They're divorced. My mom is very susceptible to peer pressure and on a few occasions I've had to fend off "But so-and-so said I should retire." I don't know what will happen when we really do get to that point, but she hardly has any money saved for retirement. 6% doesn't add up fast when you don't make much!! It's all very scary.
thriftorama Says:
June 3rd, 2009 at 05:08 pm 1244048915
1244048915

I agree with you. I don't believe we'll ever see an inheritance, even though hubby's parents are always wagging their fingers at us and telling us how we wil make them wealthy one day. Yeah right. They are 65, have $400,000, pay $16,000 a year just in property taxes and have no long term care insurance or any plan at all on how they will be taken care of when they are elderly. Their plan is to be "carried out in a pine box." They think I am unrealistic, but I am the one who has taken care of two dying grandparents and one dying dad in the last three years and it is neither cheap not easy...

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Over Prepare, Then Go With The Flow

Retiring Parents

4 Responses to “Retiring Parents”

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