General life update:  Life is absurd and crazy as ever, so no recent blog posts.  The work I planned to do last weekend was delayed to this weekend.  I am exhausted (emotionally, mentally) but at least have a couple of long weekends to look forward to.  

Also, lots going on financially (sorting out 2020, planning for 2021, college, etc.) so I have a few posts I want to try to get out today.  

I've got final #s for 2020.  

Expenses will be same as 2019.  The only noticeable difference is a reduction of auto costs by $2K-$3K this year, which will be a permanent budget change with the purchase of an electric car.  In 2020 we might have done a lot less driving, but in the future our fuel will cost a small fraction of what it used to.  Also less maintenance, no oil changes, etc.

While I am personally not surprised our expenses remained the same (we are aggressive savers without much fat in our budget).  I will say that this year was *easy* on this front.   I think we usually navigate a lot more pressure to spend money, and that just completely evaporated this year.  We might have also had more wiggle room in our budget for other splurges.  I probably don't remember an easier year on this front.  

Income was a record breaker this year.  The extra unemployment bumped our income by about $10,000 (above what we would have otherwise earned this year).  I will also receive a $3,000-ish retirement plan bonus, due to PPP loans.  & work was record breaking on the income/profit front, so I got another bonus on top of that.

At first I just attributed the mega income to the financial ease of this year.  But I do think it's the combo of extra income and less spending pressure.

Of course, the extra unemployment income was pushing off a tax cliff and so I put one month of my salary into my 401K.  I was hoping I could keep a wee little bit of my bonus, but it was not meant to be.  I had to put the whole thing in my 401K.

First world problems.

In the end we will be contributing 30% of our income to retirement this year.  Which is by far a record.  The prior record was 21%, the year MM was born.  (I had a generous work retirement benefit, and we had substantial savings to plow into our IRAs.  It ended up being a big % of a very low income year).

Of course, the 30% is even more exciting, because it was 30% of a big income year!

{Pretty much, we put all that unemployment income into my 401K}.

In the end, this is why I miss blogging.  I would have gotten here much sooner if I can write it out and process.  But... I guess I got there.

I started to think that's ridiculous (we do have other financial goals too).  & so I eventually got there that we don't *have to* max out our IRAs too.  Last I ran the numbers we could put $8K in our Traditional IRAs (which I will do for the tax break) but the ROTH IRA contributions seemed pointless and would free up $4K cash.  I just felt better realizing at least I could squeeze out some cash somewhere, from all this extra income.

Then I changed my mind again, because we have assets we can shift to IRAs.

In the end...  I am kicking that can down the road and making it an April decision.  I know it probably makes the most sense just to plow that money into our ROTH IRAs.  That money is *always* there if we need it.  But...  The only thing giving me pause is the whole college thing.  I think it will be easier for me to commit to the ROTH IRAs once I have some clarity on the college front.  Which should happen before April 15th, so I have some time.

If I could just sell off some taxable investments, it would be done.  But...  That's a whole other worm hole with taxes, college and financial aid and everything...  I've been very good about harvesting tax gains in the kids' accounts.  I have been not so good doing the same with our own accounts.  It's probably what I will do, but I am already so knee deep in financial aid forms and various tax projections.  Just more reason to kick the can down the road.   I will look at it next year with a clear head and a 2021 focus.