Detailed Financial Picture – February 2013

January’s Numbers

As of February 8, 2013, we are $477,596.76 in debt (that includes the mortgage).  Without the mortgage, we’re at $51,811.27 in debt.  This includes credit cards, student loans, lines of credit and an auto loan.  We currently have $914,906.34 in assets (including our house).  Our retirement accounts are at $266,177.40.  This includes my January contribution.  Our Net Worth is $437,309.58 (includes house and mortgage), up from $419,485.53 last month (4.25% increase).

I notice that our assets are approaching $1 million.  That’s a nice number to shoot for.  Having our net worth at half a million dollars looks nice too. I did the math, and assuming retirement accounts don’t increase in value (a bad assumption, but a conservative one in this case), and our house doesn’t change value significantly, we’ll have a net worth of half a million dollars once our debts are paid off.  What gets me is that $250,000 in our retirement accounts qualifies us for “wealth management services” at Fidelity.  We’re not going to take advantage of them yet, but once debts are paid off, it’s very likely that we will meet with their adviser. I don’t think that 250k in a retirement account is really all that much.  We’re projecting to need 1-2 million in that account to retire (in the DC metro area anyway), $250k is just a drop in the bucket.

Our retirement accounts did well this month (up 3.6%); the stock market is on a roll – hopefully it continues that way.  I also got a bonus in January, of which a percentage is taken out to add to my 401(k).  This is the first time my contribution and match have shown up in the account before the 15th – maybe it’ll continue this way?  We had a rather large bill to the accountant for representing us in front of the IRS: $3,000, and that came out of our emergency savings + what we had already set aside for taxes.  We didn’t owe the IRS anything more, so we shouldn’t see more on the audit front.  But a good chunk of my bonus went to “paying back” our emergency fund.

I’ve already done our taxes in TurboTax, but I’m waiting until the final audit paperwork comes in before filing, so I already know what we owe/get in taxes.  We net $118 between owing the IRS and getting a refund from our state.  So, the money I had been setting aside to pay taxes went to debt repayment instead 🙂

We’re really doing well with paying down our line of credit.  Dad gets an “extra” paycheck in March (he’s paid bi-weekly), so that will be going to the line of credit, and will hopefully kill it off in April.  After that, I’m going to separate out my student loans (the new processor allows that), and attack the 6.55% loans first, leaving the 2.15% loan until after the Chase card is paid off.  I’m starting to get really excited because if nothing bad happens (yeah right!), we’ll have everything but the car paid off by the end of this year.

I’ve been collecting some cash from selling old games, and most of that is going to debt repayment as well as getting “stuff” out of the house.

Debt (in the order we’re paying it down):

  • Line of credit (8.75%): $62,61.73  (-1638.27)
  • Student loans (aggregated 6.55%):  $13,912.12  (-71.85)
  • Chase (4.99% for life): $6,687.42  (-22.11) <- annual fee hit this month
  • Car loan (0%): $24,950.00 (-490.00)
  • Mortgage (4.125%): $425,785.49 (-631.09)

Total paid off in January: $2,853.32

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