FI Journey updates July 2019

Continuing to make progress

We have made some solid progress over the past year with our FI journey. There was the slight dip in the markets at the end of 2018, which demonstrates as a blip on our FI Journey Chart. But other than that, some solid gains have been made!

One exciting change that we have implemented this year was beginning a Mega Backdoor Roth account.  After listening to a Choose FI Podcast, I learned what this was, and then found out that I had access to one at work.

What is a Mega Backdoor Roth?….
My organization allow for post-tax contributions to be deposited into a employee’s retirement account of up to 10% of the employee’s gross income.   The employee can then take an “in-service distribution” and immediately roll that money into a Roth IRA.  Where it can then grow tax free for eternity!  The only hitch is that this is a manual, paper process, and I need to have a notarized signature from Mr. HG in order to complete the rollover.  Therefore, I will execute the roll 2-3x/year, and just pay any tax on the gains in the brief time that it has been growing in the account.

We continue to max our contributions in our regular 403B accounts and Roth IRAs as previous.

I previously updated that we have reduced our living expenses by selling our primary residence and have downsized into a 2 bedroom apartment.  The additional monthly savings from this will be invested.  I am also hoping that a part time position will become available at work so that I may downshift to less of a full time grind.  Having reduced living expenses will make this transition easy-peasy, and should also allow us to continue to save the maximum in our tax advantaged accounts.

In good times, happiness, and health,

Jen

 

 

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