You know you are a personal finance blogger when the prospect of making new retirement contributions makes you so excited you can’t stop looking over the 401K plan document.
Now that I have a new job, it’s time for revised objectives for 2010. My financial goals for 2010 are simple: I want to contribute the most I can to tax-advantaged vehicles. That means I will:
1. Max out 401K ($16,500):
I reach 401K eligibility in July, so that means I will have 6 months to contribute for 2010. That will be $2,750 per month. My total net income – including freelance earnings – will cover my expenses during that time. But I won’t have much money for anything else.
2. Max out Roth IRA ($5,000):
I currently have $2,000 for 2010 – another $3,000 and I’ll be done with this goal. I’ll concentrate on Roth IRA goal in April, May, and June so it will be taken care of by the time July comes around.
If I make all these goals, at the end of 2010 I will have over $50,000 in retirement savings. These are aggressive goals for me, but I need to take advantage of every chance I have to save for when I’m a cool old lady. In addition to the purely financial goals, I also want to do something nice for my parents. This means I will:
3. Send Mom & Dad on a weekend trip ($200-$300?):
One of my favorite presents for my parents is a night or two at a high-end hotel for weekend getaways. I put them up at the Mandalay Bay in Las Vegas (Christmas 2008) and the Omni Hotel in San Diego (Summer 2009). They would never spend that kind of money on themselves, so it makes me happy to be able to do something nice for them. Mom apparently still talks about the Vegas trip to my aunt and my family. Score in the Good Daughter category. 
Now that I have a job, it’s something I can resume doing. Perhaps a trip to Santa Barbara is in order. There are so many nice bed-and-breakfasts in that city… let me know if you recommend any one in particular.
image source: searchenginepeople.com
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The best part about a new job is definitely the new budget and revising your goals! I can't believe how much you're contributing to your retirement. Maxing out your 401 is nearly half of my annual income alone.
I am with ee. I always max out my Roth, but I can't imagine maxing out my 401k (I contribute up to the match), and I'm older than you are! I always think of it as a 'nice to have.' I think I better reassess, and see if I can max it out without living like a pauper. I want to have fun now AND later.
So when do you start your new job? This is so exciting. I feel like I got a new job. hee hee.
I've never contributed the max to my 401K either… but there's no time like now to start!
I didn't have a 401K the year before last, so I'd be "catching up" this year. $16,500 divided by 2 is only $8,250/year. Still a substantial sum, but definitely less daunting than $16.5K when I think of it that way.
It's great that you can now start on those financial goals! I think your plan is pretty solid. Good luck with that new job.
It's not a B&B, but I stayed at the Eagle Inn in Santa Barbara a few years ago and really loved it.
I clicked on your link.. the Inn looks gorgeous. Prices are ouch though. Unfortunately for small resort towns like Santa Barbara, Hotwire.com (what I usually use to book nice hotels for less) isn't much help.
Congratulations on getting that job, especially with all the current competition. I haven't been to Santa Barbara in years and can't remember where I stayed. But I do remember I loved the town and the architecture. The place was somehow classy and cozy at the same time. Your parents will love it too.
Those are some big and worthy goals!
When we got to Santa Barbara, we stay at the Hotel Mar Monte. It's right on the beach, and so lovely!
Aww1 My parent's 25th anniversary is coming up and I would like to do something like that for them. My mom has explicitly stated that she would like a party, but I think sending them on vacation will be cheaper and more memorable. They've been to Vegas (that was the last trip they took together in 1985!!!). I guess I should start putting out the feelers to see what they would like.
I am definitely a huge fan of the vacation-as-present model. You're in NY, right? I'm sure there are a lot of hotels / B&Bs nearby if they can't go on a long trip. I think San Francisco is always lovely, or Chicago, or Charleston or Williamsburg. Let me know where you send them! I might copy your idea for next year.
awwh. that's sweet. i'm sure they'll love it.
Awwww. I've been thinking of giving my parents a gift, as well. I know that growing up, my parents sacrificed a lot so that my sisters and I could grow up with opportunities they never had. I'm thinking that I could send them to a spa package at a hotel in Toronto for a weekend. They are not really comfortable with traveling far away at the moment.
A spa weekend would be lovely. I'm sure your parents would love the R&R.
Congrats on the new job! I've been reading your blog for about a year now, and am so pleased for you! Thoughts about the B&B… this is a little ways away from Santa Barbara (!) but I've heard awesome things about the Bonneville Hot Springs Resort and Spa – it is on the border between Oregon and Washington. I'm actually taking my husband there later this month for his birthday. Tons of things to do there, and beautiful country. Good luck on your new adventure!
Maxing out the 401K, nice. Like you said, it will be catch up from last year. I usually send my mom to a spa. She likes spas. I'm actually trying to get her to travel more. The only time she does is if it is to visit a relative – mainly me! I'm in California, she is in Texas. I want to send her on a cruise with my sister but we're working on getting her a passport!
And thanks to your post on Santa Barbara, I will be spending my weekend there. Horseback riding and kayaking!
Horse-back riding and kayaking sound like a blast. You'll have such a great time.. enjoy!