Happy New Year Everyone! 2012 went by so quite quickly, didn’t it? 2012 was a year of changes for us and I think we need to take it a bit easier this year. 2013 will be the year to shore up our finances and gather ourselves.
Let’s start with a goal for Baby RB40. He is almost 2 years old and he doing quite well on all the regular benchmarks. For 2013, we would like him to make a friend. This is quite a difficult goal because it’s hard to meet kids his age in our area now that he isn’t going to daycare. Also, kids this age don’t seem to play together much, even if there is a playgroup available. We’ll see if he can do it.
Let’s move to some financial challenges to overcome.
Contribute $11,000 to Roth IRA
We haven’t contributed to our Roth IRA account for a few years because we were over the income limit when I was employed at a corporation. For 2013, the Roth IRA limit is $5,500 per person. Actually this goal should be pretty easy to meet. I’m planning to just move some money from our taxable account to our Roth IRAs. I just need to sit down and do it.
Contribute $17,500 to Mrs. RB40’s 401(k)
The maximum contribution for a 401(k) plan will rise from $17,000 to $17,500 in 2013. She
maxed out contributed $16,985 this year and we just need to raise the deduction a bit to hit $17,500. This one also shouldn’t be a problem.
Contribute $10,000 to Baby RB40’s 529
This is part of the plan to front load Baby RB40’s 529 college fund. The financial advisor at Personal Capital advised this and I think it’s a good idea. We’ll add more money now while he’s young so the 529 has more time to grow tax free. We will throttle back in a few years.
Generate $18,000 of Passive Income
This one will be pretty close. Here is my projection of our passive income for 2013.
- $7,500 from dividends
- $7,500 from rentals
- $500 from interest
- $1,200 from peer to peer lending
As you can see, it’s a bit short of the $18,000 goal. I’m planning to increase our dividend stock investment so that might be enough to close the gap. The rentals are also a big challenge due to the zillions of repairs we had to address. We’re about even in 2012 so it might be difficult to hit $7,500 next year. We’ll see how it goes. The $18,000 goal is pre tax.
Generate $18,000 Online
We generated about $13,000 from my online business this year. It will be a big challenge to hit $18,000 (pre tax) in 2013, but I’m setting this goal the same as the passive income.
Stretch Goal – Contribute $5,000 to a solo 401(k)
At this point, I don’t think I’ll have money to do this, but that’s why this is a stretch goal. A solo 401(k) is a 401(k) plan for the self employed. You can sock away quite a bit of money here if your business is generating a lot of income. The limit is the same as a regular 401(k), but the business can contribute
20-25% extra to the 401(k). I need to do more research on how to open this account.
A couple of late additions
- Put together a will
- Buy life insurance
For 2013, I’m going to follow Frugal Portland’s lead and make a list of things I’d like to do.
- Take a trip. We’re thinking about taking a 2 week road trip to California to visit Yosemite, the Bay Area, Santa Barbara, Palm Springs, and points in between.
- Avoid a midlife crisis! I’ll turn 40 next year and I really don’t want to have any kind of melt down.
- Enjoy being a stay at home dad. Baby RB40 is growing so fast and I need to enjoy being a stay at home dad as much as I can.
- Come up with a sustainable exercise program and do it.
- Go to a convention.
- Join Toastmasters.
- Go camping at the beach in the summer.
- Go for a short hike in the Columbia George.
- Get a Zoo membership.
- Go to 10 local festivals in 2013. Here are some choices – Greek Festival, Cinco De Mayo, Oktoberfest, Chinese New Year, Comics Festival, Rose Festival, Blues Festival, and Highland Games. Mmmm.. I can’t wait until summer.
- Picnic at an Oregon winery.
- Go to 10 free musical/theatrical performances. Let’s not miss the Symphony at the Waterfront this year.
- Have a drink with blogger friends in Oregon and California including Financial Samurai, Frugal Portland, and Money Spruce.
- Try a new beer. This shouldn’t be too hard in Portland.
- 2013 No Spend Challenge: Clothing.
My main goal for 2013 is to hit 100,000 page views per month at some point. I also want to increase the quality of the articles and maintain the 3 days/week posting schedule. Mrs. RB40 told me the articles are getting a bit dry lately so I need to inject some fun into the posts more. Overall, I think we just need to make some incremental improvements and stay the course. If you have any feedback, I’d love to hear it.
The key to achieving your goals is to keep track of your progress. I’ll be checking in at least once a quarter to see how much progress I’m making. What are your goals for 2013? Don’t forget to add some fun activities in your list.